EX-12 2 a09-27584_1ex12.htm EX-12

EXHIBIT 12

 

CUMMINS INC. AND SUBSIDIARIES

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Nine months ended

 

 

 

September 27,

 

September 28,

 

In millions

 

2009

 

2008

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

Earnings before income taxes and noncontrolling interests

 

$

266

 

$

1,131

 

Add:

 

 

 

 

 

Fixed charges

 

60

 

72

 

Amortization of capitalized interest

 

3

 

3

 

Distributed income of equity investees

 

192

 

101

 

Less:

 

 

 

 

 

Equity in earnings of investees

 

137

 

186

 

Capitalized interest

 

 

5

 

Earnings before fixed charges

 

$

384

 

$

1,116

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

Interest expense

 

$

26

 

$

33

 

Capitalized interest

 

 

5

 

Amortization of debt discount

 

2

 

2

 

Interest portion of rental expense(1)

 

32

 

32

 

Total fixed charges

 

$

60

 

$

72

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

6.4

 

15.5

 

 


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