EX-12 2 exhibit12.htm EXHIBIT 12

EXHIBIT 12

 

CUMMINS INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Three months ended

 

 

 

March 29,

 

March 30,

 

In millions 

 

2009

 

2008

 

Earnings

Earnings before income taxes

$

21

$

304

Add:

   Fixed charges

20

25

   Amortization of capitalized interest

1

1

   Distributed income of equity investees

80

15

Less:

   Equity in earnings of investees

30

62

   Capitalized interest

2

2

Earnings before fixed charges

$

90

$

281

Fixed charges

Interest expense

$

7

$

11

Capitalized interest

2

2

Amortization of debt discount

1

2

Interest portion of rental expense(1)

10

10

Total fixed charges

$

20

$

25

Ratio of earnings to fixed charges

4.5

11.2

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