EXHIBIT 12
CUMMINS INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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Six months ended |
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June 30, |
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July 1, |
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In millions |
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2013 |
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2012 |
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Earnings |
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Earnings before income taxes and noncontrolling interests |
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$ |
1,044 |
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$ |
1,311 |
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Add |
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Fixed charges |
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51 |
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50 |
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Amortization of capitalized interest |
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1 |
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1 |
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Distributed income of equity investees |
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120 |
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158 |
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Less |
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|
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Equity in earnings of investees |
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171 |
|
187 |
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Capitalized interest |
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3 |
|
4 |
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Earnings before fixed charges |
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$ |
1,042 |
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$ |
1,329 |
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Fixed charges |
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Interest expense |
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$ |
14 |
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$ |
16 |
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Capitalized interest |
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3 |
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4 |
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Amortization of debt discount |
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5 |
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1 |
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Interest portion of rental expense (1) |
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29 |
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29 |
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Total fixed charges |
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$ |
51 |
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$ |
50 |
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Ratio of earnings to fixed charges |
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20.4 |
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26.6 |
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(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.