EX-12 6 ex_12.htm COMP OF RATIOS OF EARNINGS TO FIXED CHARGES ex_12.htm
 
 
 
 
 
EXHIBIT 12
 
CATERPILLAR INC.
AND CONSOLIDATED SUBSIDIARIES
 
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Millions of dollars)
 
YEARS ENDED DECEMBER 31,
 
     
2008
  
2007
  
2006
  
2005
  
2004
                               
Earnings (1)
  
$
4,501
  
$
4,990
  
$
4,890
  
$
3,910
  
$
2,714
Plus: Interest expense
    
1,427
    
1,420
    
1,297
    
1,028
    
754
 
   One-third of rental expense (2)
    
133
    
119
    
105
    
85
    
74
Adjusted Earnings
    
6,061
    
6,529
    
6,292
    
5,023
    
3,542
                               
Fixed charges:
                              
 
Interest expense (3)
    
1,427
    
1,420
    
1,297
    
1,028
    
754
 
Capitalized interest
    
27
    
15
    
10
    
11
    
8
 
One-third of rental expense (2)
    
133
    
119
    
105
    
85
    
74
Total fixed charges
  
$
1,587
  
$
1,554
  
$
1,412
  
$
1,124
  
$
836
                               
Ratio of earnings to fixed charges
    
3.8
    
4.2
    
4.5
    
4.5
    
4.2
                               
(1)Pretax income from continuing operations before adjustment for minority interests and equity investments' profit
(2)Considered to be representative of interest factor in rental expense
(3)Does not include interest on FIN 48 liabilities and other non-third-party indebtedness