EX-12 2 ex12.htm ex12.htm
 
EXHIBIT 12
 
 
CATERPILLAR INC.
AND CONSOLIDATED SUBSIDIARIES
 
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Millions of dollars)
 
 
9 Months
Ended
September 30, 2008
    
   
YEARS ENDED DECEMBER 31,
   
2007
  
2006
  
2005
  
2004
  
2003
Earnings
(1)
  
$
4,139
    
$
4,990
    
$
4,890
    
$
3,910
    
$
2,714
    
$
1,488
  
Plus: Interest expense
 
1,057
      
1,420
      
1,297
      
1,028
      
754
      
720
  
 
One-third of rental expense
(2)
    
99
      
119
      
105
      
85
      
74
      
65
  
Adjusted Earnings
 
5,295
      
6,529
      
6,292
      
5,023
      
3,542
      
2,273
  
                                               
Fixed charges:
                                              
 
Interest expense
 
1,057
      
1,420
      
1,297
      
1,028
      
754
      
720
  
 
Capitalized interest
 
14
      
15
      
10
      
11
      
8
      
5
  
 
One-third of rental expense
(2)
    
99
      
119
      
105
      
85
      
74
      
65
  
Total fixed charges
$
1,170
    
$
1,554
    
$
1,412
    
$
1,124
    
$
836
    
$
790
  
                                               
Ratio of earnings to fixed charges
 
4.5
      
4.2
      
4.5
      
4.5
      
4.2
      
2.9
  
 
(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