- Track your favorite companies
- Receive email alerts for new filings
- Personalized dashboard of news and more
- Access all data and search results
Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
7th grade Avg
|
EXHIBIT 12
CUMMINS INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
In millions |
| 2010 |
| 2009 |
| 2008 |
| 2007 |
| 2006 |
| |||||
Earnings |
|
|
|
|
|
|
|
|
|
|
| |||||
Earnings before income taxes and noncontrolling interests |
| $ | 1,617 |
| $ | 640 |
| $ | 1,178 |
| $ | 1,169 |
| $ | 1,083 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed charges |
| 95 |
| 87 |
| 99 |
| 102 |
| 135 |
| |||||
Amortization of capitalized interest |
| 3 |
| 5 |
| 3 |
| 6 |
| 5 |
| |||||
Distributed income of equity investees |
| 178 |
| 215 |
| 186 |
| 107 |
| 75 |
| |||||
Less: |
|
|
|
|
|
|
|
|
|
|
| |||||
Equity in earnings of investees |
| 321 |
| 196 |
| 231 |
| 192 |
| 121 |
| |||||
Capitalized interest |
| 5 |
| 6 |
| 11 |
| 5 |
| 5 |
| |||||
Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges |
| — |
| — |
| — |
| — |
| 2 |
| |||||
Earnings before fixed charges |
| $ | 1,567 |
| $ | 745 |
| $ | 1,224 |
| $ | 1,187 |
| $ | 1,170 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed charges |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest expense |
| $ | 40 |
| $ | 35 |
| $ | 42 |
| $ | 58 |
| $ | 96 |
|
Capitalized interest |
| 5 |
| 6 |
| 11 |
| 5 |
| 5 |
| |||||
Amortization of debt discount |
| 1 |
| 2 |
| 2 |
| 1 |
| 1 |
| |||||
Interest portion of rental expense (1) |
| 49 |
| 44 |
| 44 |
| 38 |
| 33 |
| |||||
Total fixed charges |
| $ | 95 |
| $ | 87 |
| $ | 99 |
| $ | 102 |
| $ | 135 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ratio of earnings to fixed charges |
| 16.5 |
| 8.6 |
| 12.4 |
| 11.6 |
| 8.7 |
|
(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.