EX-12 5 ex12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES computation of ratios of earnings to fixed charges
 



EXHIBIT 12
 
CATERPILLAR INC.
AND CONSOLIDATED SUBSIDIARIES
 
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Millions of dollars)
 
YEARS ENDED DECEMBER 31,
     
2005
  
2004
  
2003
  
2002
  
2001
     
 
 
 
 
                               
Earnings (1)
  
$
3,910
  
$
2,714
  
$
1,488
  
$
1,120
  
$
1,170
Plus: Interest expense
    
1,028
    
754
    
720
    
806
    
945
 
     One-third of rental expense (2)
    
85
    
74
    
65
    
67
    
71
     
 
 
 
 
Adjusted Earnings
    
5,023
    
3,542
    
2,273
    
1,993
    
2,186
   
 
 
 
 
                               
Fixed charges:
                              
 
     Interest expense
    
1,028
    
754
    
720
    
806
    
945
 
     Capitalized interest
    
11
    
8
    
5
    
11
    
13
 
     One-third of rental expense (2)
    
85
    
74
    
65
    
67
    
71
     
 
 
 
 
Total fixed charges
  
$
1,124
  
$
836
  
$
790
  
$
884
  
$
1,029
   
 
 
 
 
                               
Ratio of earnings to fixed charges
    
4.5
    
4.2
    
2.9
    
2.3
    
2.1
                               
(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