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Content analysis
?Positive | ||
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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
|
| Three months ended |
| ||||
In millions |
| March 31, 2013 |
| April 1, 2012 |
| ||
Earnings |
|
|
|
|
| ||
Earnings before income taxes and noncontrolling interests |
| $ | 431 |
| $ | 650 |
|
Add |
|
|
|
|
| ||
Fixed charges |
| 25 |
| 25 |
| ||
Amortization of capitalized interest |
| — |
| 1 |
| ||
Distributed income of equity investees |
| 41 |
| 31 |
| ||
Less |
|
|
|
|
| ||
Equity in earnings of investees |
| 73 |
| 92 |
| ||
Capitalized interest |
| 2 |
| 2 |
| ||
Earnings before fixed charges |
| $ | 422 |
| $ | 613 |
|
|
|
|
|
|
| ||
Fixed charges |
|
|
|
|
| ||
Interest expense |
| $ | 6 |
| $ | 8 |
|
Capitalized interest |
| 2 |
| 2 |
| ||
Amortization of debt discount |
| 2 |
| — |
| ||
Interest portion of rental expense (1) |
| 15 |
| 15 |
| ||
Total fixed charges |
| $ | 25 |
| $ | 25 |
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|
|
|
|
|
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Ratio of earnings to fixed charges |
| 16.9 |
| 24.5 |
|
(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.