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Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
8th grade Good
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EXHIBIT 12
CUMMINS INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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| Six months ended |
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|
| June 28, |
| June 29, |
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In millions |
| 2009 |
| 2008 |
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Earnings |
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|
|
|
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Earnings before income taxes |
| $ | 120 |
| $ | 761 |
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Add: |
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|
|
|
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Fixed charges |
| 40 |
| 48 |
| ||
Amortization of capitalized interest |
| 2 |
| 2 |
| ||
Distributed income of equity investees |
| 145 |
| 61 |
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Less: |
|
|
|
|
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Equity in earnings of investees |
| 83 |
| 125 |
| ||
Capitalized interest |
| 1 |
| 3 |
| ||
Earnings before fixed charges |
| $ | 223 |
| $ | 744 |
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|
|
|
|
|
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Fixed charges |
|
|
|
|
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Interest expense |
| $ | 17 |
| $ | 23 |
|
Capitalized interest |
| 1 |
| 3 |
| ||
Amortization of debt discount |
| 1 |
| 1 |
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Interest portion of rental expense(1) |
| 21 |
| 21 |
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Total fixed charges |
| $ | 40 |
| $ | 48 |
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Ratio of earnings to fixed charges |
| 5.6 |
| 15.5 |
|
(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.