EX-12 6 ex_12.htm EX. 12 - EARNINGS TO FIXED CHARGES Ex. 12 - 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,
 
     
2006
  
2005
  
2004
  
2003
  
2002
     
 
 
 
 
Earnings (1)
  
$
4,890
  
$
3,910
  
$
2,714
  
$
1,488
  
$
1,120
Plus: Interest expense
    
1,297
    
1,028
    
754
    
720
    
806
 
One-third of rental expense (2)
    
105
    
85
    
74
    
65
    
67
     
 
 
 
 
Adjusted Earnings
    
6,292
    
5,023
    
3,542
    
2,273
    
1,993
   
 
 
 
 
Fixed charges:
                              
 
Interest expense
    
1,297
    
1,028
    
754
    
720
    
806
 
Capitalized interest
    
10
    
11
    
8
    
5
    
11
 
One-third of rental expense (2)
    
105
    
85
    
74
    
65
    
67
     
 
 
 
 
Total fixed charges
  
$
1,412
  
$
1,124
  
$
836
  
$
790
  
$
884
   
 
 
 
 
                               
Ratio of earnings to fixed charges
    
4.5
    
4.5
    
4.2
    
2.9
    
2.3
                               
(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