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EXHIBIT 12
CUMMINS INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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| Nine months ended |
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| September 30, |
| October 1, |
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| 2007 |
| 2006 |
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| Millions | ||||||
Earnings | |||||||
Earnings before income taxes and minority interests | $ | 859 | $ | 800 | |||
Add: | |||||||
Fixed charges | 77 | 102 | |||||
Amortization of capitalized interest | 4 | 4 | |||||
Distributed income of equity investees | 71 | 46 | |||||
Less: | |||||||
Equity in earnings of investees | 137 | 89 | |||||
Capitalized interest | 4 | 2 | |||||
Earnings before fixed charges | $ | 870 | $ | 861 | |||
Fixed charges | |||||||
Interest expense | $ | 44 | $ | 76 | |||
Capitalized interest | 4 | 2 | |||||
Amortization of debt discount | 1 | - | |||||
Interest portion of rental expense (1) | 28 | 24 | |||||
Total fixed charges | $ | 77 | $ | 102 | |||
Ratio of earnings to fixed charges | 11.3 | 8.4 | |||||
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