EXHIBIT 12

 

CUMMINS INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Six months ended

 

 

 

June 30,

 

July 1,

 

In millions

 

2013

 

2012

 

Earnings

 

 

 

 

 

Earnings before income taxes and noncontrolling interests

 

$

1,044

 

$

1,311

 

Add

 

 

 

 

 

Fixed charges

 

51

 

50

 

Amortization of capitalized interest

 

1

 

1

 

Distributed income of equity investees

 

120

 

158

 

Less

 

 

 

 

 

Equity in earnings of investees

 

171

 

187

 

Capitalized interest

 

3

 

4

 

Earnings before fixed charges

 

$

1,042

 

$

1,329

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

Interest expense

 

$

14

 

$

16

 

Capitalized interest

 

3

 

4

 

Amortization of debt discount

 

5

 

1

 

Interest portion of rental expense (1)

 

29

 

29

 

Total fixed charges

 

$

51

 

$

50

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

20.4

 

26.6

 

 


(1)  Amounts represent those portions of rent expense that are reasonable approximations of interest costs.