-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, FgMd4C/cq+AZUG/pjBjBtHoq/gDfOot53OZrGxHXusfobIgq3nwh9/CjTJh58JoG VUS55Lhv+ypbtutOR1Ao0Q== 0000217346-95-000004.txt : 19950517 0000217346-95-000004.hdr.sgml : 19950516 ACCESSION NUMBER: 0000217346-95-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19950401 FILED AS OF DATE: 19950512 SROS: MSE SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEXTRON INC CENTRAL INDEX KEY: 0000217346 STANDARD INDUSTRIAL CLASSIFICATION: AIRCRAFT & PARTS [3720] IRS NUMBER: 050315468 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05480 FILM NUMBER: 95538118 BUSINESS ADDRESS: STREET 1: 40 WESTMINSTER ST CITY: PROVIDENCE STATE: RI ZIP: 02903 BUSINESS PHONE: 4014212800 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN TEXTRON INC DATE OF NAME CHANGE: 19710510 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 _______________ FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal quarter ended April 1, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 Commission file number 1-5480 _______________ TEXTRON INC. (Exact name of registrant as specified in its charter) _______________ Delaware 05-0315468 (State or other jurisdiction of (I.R.S. Employer Identification incorporation or organization) No.) 40 Westminster Street, Providence, RI 02903 401-421-2800 (Address and telephone number of principal executive offices) _______________ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes X No Common stock outstanding at April 29, 1995 - 85,087,000 shares PART I. FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS TEXTRON INC. Consolidated Statement of Income (unaudited) (Dollars in millions except per share amounts)
Three months ended April 1, April 2, 1995 1994 Revenues Sales $ 1,554 $ 1,688 Interest, discount and service charges 379 324 Insurance premiums 335 290 Investment income (including net realized investment gains) 119 106 Total revenues 2,387 2,408 Costs and expenses Cost of sales 1,273 1,426 Selling and administrative 378 361 Interest 202 158 Provision for losses on collection of finance receivables, less recoveries 39 43 Insurance benefits and increase in policy liabilities 276 225 Amortization of insurance policy acquisition costs 34 26 Total costs and expenses 2,202 2,239 Income before income taxes 185 169 Income taxes (73) (65) Elimination of minority interest in net income of Paul Revere (3) (4) Net income $ 109 $ 100 Net income per common share $ 1.25 $ 1.10 Average shares outstanding* 87,055,000 90,588,000 Dividends per share: $2.08 Preferred stock, Series A $ .52 $ .52 $1.40 Preferred stock, Series B $ .35 $ .35 Common stock $ .39 $ .35 * Average shares outstanding assume full conversion of preferred stock and exercise of options. See notes to consolidated financial statements.
Item 1. FINANCIAL STATEMENTS (Continued) TEXTRON INC. Consolidated Balance Sheet (unaudited) (In millions)
April 1, December 31, 1995 1994 Assets Cash $ 52 $ 49 Investments 5,620 5,294 Receivables - net: Finance 9,199 8,583 Commercial and U.S. Government 722 702 9,921 9,285 Inventories 1,267 1,211 Property, plant and equipment, less accumulated depreciation of $1,554 and $1,450 1,268 1,253 Insurance policy acquisition costs 936 911 Goodwill, less accumulated amortization of $395 and $381 1,505 1,512 Other assets (including net prepaid income taxes) 1,398 1,410 Total assets $ 21,967 $ 20,925 Liabilities and shareholders' equity Liabilities Accounts payable $ 669 $ 619 Accrued postretirement benefits other than pensions 954 951 Other accrued liabilities (including income taxes) 2,324 2,424 Insurance reserves and claims 4,863 4,685 Debt: Textron Parent Company Borrowing Group 1,720 1,582 Finance and insurance subsidiaries 8,457 7,782 10,177 9,364 Total liabilities 18,987 18,043 Shareholders' equity Capital stock: Preferred stock 16 16 Common stock* 12 12 Capital surplus 709 702 Retained earnings 2,594 2,518 Other (56) (108) 3,275 3,140 Less cost of treasury shares 295 258 Total shareholders' equity 2,980 2,882 Total liabilities and shareholders' equity $ 21,967 $ 20,925 *Common shares outstanding 85,011,000 85,497,000 See notes to consolidated financial statements.
Item 1. FINANCIAL STATEMENTS (Continued) TEXTRON INC. Consolidated Statement of Cash Flows (unaudited) (In millions)
Three Months Ended April 1, April 2, 1995 1994 Cash flows from operating activities: Net income $ 109 $ 100 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 102 98 Provision for losses on receivables 51 51 Increase in insurance policy liabilities 148 91 Deferred income taxes 11 17 Changes in assets and liabilities excluding those related to the acquisition of a business: Increase in commercial and U.S. Government receivables (23) (125) Increase in inventories (56) (26) Additions to insurance policy acquisition costs (64) (49) Increase in other assets (23) (25) Increase in accounts payable 51 29 Increase (decrease) in accrued liabilities (123) 64 Other - net 13 (19) Net cash provided by operating activities 196 206 Cash flows from investing activities: Purchases of investments (346) (471) Proceeds from disposition of securities: Sales of: Securities available for sale 75 144 Securities held to maturity - 10 Maturities and calls 45 213 Finance receivables: Originated or purchased (1,486) (1,298) Repaid or sold 1,255 1,165 Cash used in acquisition of a business (40) - Capital expenditures (61) (60) Other investing activities - net (5) 13 Net cash used by investing activities (563) (284) Cash flows from financing activities: Decrease in short-term debt (91) (123) Proceeds from issuance of long-term debt 1,018 638 Principal payments on long-term debt (536) (419) Interest-sensitive insurance products: Receipts 88 49 Return of account balances (45) (31) Proceeds from exercise of stock options 7 6 Purchases of Textron common stock (37) - Dividends paid (33) (31) Net cash provided by financing activities 371 89 Effect of foreign exchange rate changes on cash (1) (11) Net increase in cash 3 - Cash at beginning of period 49 26 Cash at end of period $ 52 $ 26 See notes to consolidated financial statements.
TEXTRON INC. Notes to Consolidated Financial Statements (unaudited) Note 1: Summary of significant accounting policies The financial statements should be read in conjunction with the financial statements included in Textron's Form 10-K for the year ended December 31, 1994. The financial statements reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of Textron's consolidated financial position at April 1, 1995 and December 31, 1994, and its consolidated results of operations and cash flows for each of the respective three month periods ended April 1, 1995 and April 2, 1994. The results of operations for the three months ended April 1, 1995 are not necessarily indicative of results for the full year. Note 2: Acquisitions In January 1995, AFS purchased the stock of HFC of Australia Ltd. and its Australian subsidiaries (HFCA), subsidiaries of Household International, Inc. AFS paid $40 million in cash and assumed liabilities of approximately $435 million. This acquisition added approximately $436 million to AFS' finance receivable portfolio. Note 3: Investments
April 1, December 31, 1995 1994 (In millions) Debt and marketable equity securities available for sale at estimated fair value (amortized cost: $2,514 and $2,610) $ 2,775 $ 2,511 Debt securities to be held to maturity, at amortized cost (estimated fair value: $2,468 and $2,294) 2,545 2,470 Other 300 313 $ 5,620 $ 5,294
In the first quarter of 1994, an investment in the held to maturity category with an amortized cost of $10 million was sold due to significant deterioration in the issuer's creditworthiness. Note 4: Finance receivables - net
April 1, December 31, 1995 1994 (In millions) Finance receivables $ 9,715 $ 9,084 Less allowance for credit losses 265 250 Less finance-related insurance reserves and claims 251 251 $ 9,199 $ 8,583
Note 5: Inventories
April 1, December 31, 1995 1994 (In millions) Finished goods $ 338 $ 288 Work in process 1,038 948 Raw materials 154 212 1,530 1,448 Less progress and advance payments 263 237 $ 1,267 $ 1,211
Note 6: Insurance reserves and claims
April 1, December 31, 1995 1994 (In millions) Paul Revere: Future policy benefits $ 1,224 $ 1,193 Unpaid claims and claim expenses 1,651 1,576 Other policyholder funds 1,781 1,714 Other 207 202 $ 4,863 $ 4,685
Note 7: Contingencies There are pending or threatened against Textron and its subsidiaries lawsuits and other proceedings, some of which allege violations of federal government procurement regulations, involve environmental matters, or are or purport to be class actions. Among these suits and proceedings are some which seek compensatory, treble or punitive damages in substantial amounts; fines, penalties or restitution; the cleanup of allegedly hazardous wastes; or, under federal government procurement regulations, could result in suspension or debarment of Textron or its subsidiaries from U.S. Government contracting for a period of time. These suits and proceedings are being defended or contested on behalf of Textron and its subsidiaries. On the basis of information presently available, Textron believes that any such liability or the impact of the application of relevant government regulations would not have a material effect on Textron's net income or financial condition. Note 8: Financial information by borrowing group Textron consists of two borrowing groups - the Textron Parent Company Borrowing Group and its finance and insurance subsidiaries. The Textron Parent Company Borrowing Group is comprised of all entities of Textron other than its finance and insurance subsidiaries. The financial statements of this group as set forth below reflect Textron's investments in its finance and insurance subsidiaries on the equity basis. Its sources of cash flow include dividends paid by the finance and insurance subsidiaries, as well as cash generated by other operating units. The finance and insurance subsidiaries finance their respective operations by borrowing from their own group of external creditors. Item 1 FINANCIAL STATEMENTS (Continued) Note 8: Financial information by borrowing group (continued) TEXTRON PARENT COMPANY BORROWING GROUP (unaudited) (In millions)
Three Months Ended April 1, April 2, Statement of Income 1995 1994 Revenues $ 1,554 $ 1,688 Costs and expenses Cost of sales 1,273 1,426 Selling and administrative 162 160 Interest 50 53 Total costs and expenses 1,485 1,639 69 49 Pretax income of finance and insurance subsidiaries 116 120 Income before income taxes 185 169 Income taxes (73) (65) Elimination of minority interest in net income of Paul Revere (3) (4) Net income $ 109 $ 100
April 1, December 31, Balance Sheet 1995 1994 Assets Cash $ 32 $ 20 Receivables - net 722 702 Inventories 1,267 1,211 Investments in finance and insurance subsidiaries 2,329 2,246 Property, plant and equipment - net 1,158 1,146 Goodwill, less accumulated amortization of $203 and $194 1,222 1,231 Other assets (including net prepaid income taxes) 1,244 1,262 Total assets $ 7,974 $ 7,818 Liabilities and shareholders' equity Accounts payable and accrued liabilities (including income taxes) $ 3,274 $ 3,354 Debt 1,720 1,582 Shareholders' equity 2,980 2,882 Total liabilities and shareholders' equity $ 7,974 $ 7,818
Item 1. FINANCIAL STATEMENTS (Continued) Note 8: Financial information by borrowing group (continued) TEXTRON PARENT COMPANY BORROWING GROUP (continued) (unaudited) (In millions)
Three Months Ended April 1, April 2, Statement of Cash Flows 1995 1994 Cash flows from operating activities: Net income $ 109 $ 100 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of finance and insurance subsidiaries (36) (44) Depreciation and amortization 54 59 Interest accretion 12 10 Changes in assets and liabilities: Increase in receivables (23) (135) Increase in inventories (56) (26) Decrease (increase) in other assets 19 (46) Increase (decrease) in accounts payable and accrued (61) 119 liabilities Other - net 13 (3) Net cash provided by operating activities 31 34 Cash flows from investing activities: Capital expenditures (57) (54) Other investing activities - net (36) 6 Net cash used by investing activities (93) (48) Cash flows from financing activities: Increase (decrease) in short-term debt 16 (15) Proceeds from issuance of long-term debt 279 307 Principal payments on long-term debt (158) (255) Proceeds from exercise of stock options 7 6 Purchases of Textron common stock (37) - Dividends paid (33) (31) Net cash provided by financing activities 74 12 Net increase (decrease) in cash 12 (2) Cash at beginning of period 20 12 Cash at end of period $ 32 $ 10
Item 1 FINANCIAL STATEMENTS (Continued) Note 8: Financial information by borrowing group (continued) FINANCE AND INSURANCE SUBSIDIARIES (unaudited) (In millions)
Three Months Ended March 31, March 31, Statement of Income 1995 1994 Revenues Interest, discount and service charges $ 379 $ 324 Credit life, credit disability and casualty insurance premiums 81 63 Non-cancellable disability income, life and group insurance premiums 254 227 Investment income (including net realized investment gains) 119 106 Total revenues 833 720 Costs and expenses Selling and administrative 216 201 Interest 152 105 Provision for losses on collection of finance receivables, less recoveries 39 43 Credit life, credit disability and casualty insurance losses and adjustment expenses, less recoveries 33 31 Death and other insurance benefits 119 107 Increase in insurance policy liabilities 124 87 Amortization of insurance policy acquisition costs 34 26 Total costs and expenses 717 600 Income before income taxes 116 120 Income taxes (46) (46) Net income 70 74 Minority interest in net income (3) (4) Textron's equity in net income $ 67 $ 70
Item 1. FINANCIAL STATEMENTS (Continued) Note 8: Financial information by borrowing group (continued) FINANCE AND INSURANCE SUBSIDIARIES (unaudited) (In millions)
March 31, December 31, Balance Sheet 1995 1994 Assets Cash $ 20 $ 29 Investments 5,585 5,265 Finance receivables - net 9,239 8,622 Property, plant and equipment - net 110 107 Insurance policy acquisition costs 936 911 Goodwill, less accumulated amortization of $192 and $187 283 281 Other assets 631 633 Total assets $ 16,804 $ 15,848 Liabilities and equity Accounts payable and accrued liabilities (including income taxes) $ 962 $ 953 Insurance reserves and claims 4,863 4,685 Debt 8,457 7,782 Equity: Textron 2,329 2,246 Minority interest 193 182 Total liabilities and equity $ 16,804 $ 15,848
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS TEXTRON INC. Revenues and Income by Business Segment (In millions)
Three Months Ended April 1, April 2, 1995 1994 REVENUES MANUFACTURING: Aircraft $ 542 $ 508 Automotive 424 401 Industrial 349 334 Systems and Components 239 445 1,554 1,688 FINANCIAL SERVICES: Finance 475 400 Paul Revere 358 320 833 720 Total revenues $ 2,387 $ 2,408 INCOME MANUFACTURING: Aircraft $ 41 $ 36 Automotive 37 36 Industrial 43 35 Systems and Components 19 12 140 119 FINANCIAL SERVICES: Finance 88 78 Paul Revere 28 42 116 120 Segment operating income 256 239 Corporate expenses and other - net (21) (17) Interest expense - net (50) (53) Income before income taxes $ 185 $ 169
Financial Condition Textron Parent Company Borrowing Group: During the three months ended April 1, 1995, the Textron Parent Company Borrowing Group's operating activities provided cash of $31 million versus $34 million during the corresponding period of 1994. Such cash flows approximated last year's level as increased income was offset by increased tax payments in 1995. The Group's debt increased by $138 million principally as a result of cash used for capital expenditures, payments of dividends and purchases of Textron common stock in excess of cash provided by operations. Its ratio of debt to total capital was 37% at April 1, 1995, up from 35% at December 31, 1994. During the three months ended April 2, 1994, the Group's operating activities provided cash of $34 million versus $37 million during the corresponding period of 1993. Such cash flows approximated the prior year's level as increased income and customer deposits for 1994 were offset by higher receivables, due primarily to strong first quarter 1994 sales. Its ratio of debt to total capital was 42%, unchanged from year end 1993. The Textron Parent Company Borrowing Group's credit facilities not used or reserved as support for outstanding commercial paper or bank borrowings at April 1, 1995 were $917 million. Textron had $236 million available at April 1, 1995 for unsecured debt securities under its shelf registration statement filed with the Securities and Exchange Commission. In 1994, Textron reactivated its program to purchase up to five million shares of its common stock from time to time in the open market as conditions warrant. As of April 29, 1995, 4.1 million shares had been purchased at an aggregate cost of $204 million. In February 1995, Textron announced that it may purchase up to an additional five million of its common shares under the program. Management believes that the Textron Parent Company Borrowing Group will continue to have adequate access to credit markets and that its credit facilities and cash flows from operations --including dividends received from Textron's finance and insurance operations-- will continue to be more than sufficient to meet its operating needs and to finance growth. Finance and insurance subsidiaries: The finance and insurance subsidiaries paid dividends of $31 million and $26 million to the Textron Parent Company Borrowing Group during the three month periods ended April 1, 1995 and April 2, 1994, respectively. During the three months ended March 31, 1995, Avco Financial Services (AFS) issued $607 million of unsecured debt securities, including $539 million under its shelf registration statements. AFS had $347 million and $457 million available at March 31, 1995 for unsecured debt securities under its shelf registration statements with the Securities and Exchange Commission and Canadian provincial security exchanges, respectively. During the three months ended March 31, 1995, Textron Financial Corporation (TFC) issued $133 million of medium-term notes under a $500 medium-term note facility under Rule 144A of the Securities Act of 1933, as amended. TFC had $367 million available under this facility at March 31, 1995. During the first quarter of 1995, the finance subsidiaries had $318 million of interest rate exchange agreements go into effect. Of these, $150 million expire in 1996 and had the effect of exchanging the indices used to determine interest expense under certain variable rate borrowings at March 31, 1995 for the purpose of better matching the rate of interest incurred on the finance subsidiaries' financing with the rate of interest earned on certain of the finance subsidiaries' variable rate finance receivables. The balance of the agreements, which have a weighted average original term of 2.0 years and expire through 1999, had the effect of fixing the rate of interest at approximately 9.5% on $168 million of variable rate borrowings at March 31, 1995. Results of Operations - Three months ended April 1, 1995 vs. Three months ended April 2, 1994 Textron reported first quarter 1995 earnings per share of $1.25 per share, up 14% from 1994 earnings per share of $1.10, reflecting higher net income and a decreased number of average shares outstanding. Net income in 1995 of $109 million was up from 1994 net income of $100 million. Revenues were unchanged at $2.4 billion, reflecting the impact of divestitures in 1994. Excluding the revenues of these divested businesses, revenues in the first quarter increased 9% over 1994. The Aircraft segment's revenues and income increased $34 million (7%) and $5 million (14%), respectively, related principally to Bell Helicopter. Bell Helicopter's revenues increased primarily as a result of higher sales under the V-22 engineering and manufacturing development contract and higher international aircraft and commercial spare parts sales, partially offset by lower foreign military aircraft sales. Bell's income increased as a result of the higher revenues, partially offset by increased product development expenses related to new helicopter models. Cessna's income increased slightly despite lower sales. Increased product development costs, principally related to two new Citation aircraft models, were offset by lower bid and proposal expenses for the JPATS competition for a new U.S. military trainer. The Automotive segment's revenues and income increased $23 million (6%) and $1 million (3%), respectively. Margin was affected by higher start-up costs related to the launch of new products and facilities. The Industrial segment's revenues and income increased $15 million (4%) and $8 million (23%), respectively, due principally to higher fasteners sales (including the sales of Avdel, the results of which have been included in Textron's consolidated results since the second quarter of 1994), partially offset by the impact of the divestiture of the Homelite division in 1994. The Systems and Components segment's revenues decreased $206 million (46%), while income increased $7 million (58%). The decrease in revenues was due to the 1994 divestiture of the Textron Lycoming Turbine Engine division and to reduced shipments on certain U.S. Government and commercial aerospace contracts at other divisions. In addition, 1994 income included provisions aggregating $15 million for the consolidation of certain manufacturing operations and legal matters. The Finance segment's revenues increased $75 million (19%), while income increased $10 million (13%). AFS' revenues increased, due primarily to (a) a higher level of finance receivables outstanding, (b) an increase in earned premiums and (c) an increase in investment income, due to improving yields and a higher level of invested assets, partially offset by (d) a decline in yields on finance receivables, reflecting an increased percentage of lower yielding retail installment contracts. Its income increased, due to (a) those factors and (b) a decrease in insurance losses in both finance-related and nonfinance-related insurance operations, partially offset by (c) an increase in the blended cost of borrowed funds and (d) an increase in loan loss provisions due to growth in finance receivables outstanding. Revenues at TFC increased slightly, due to a higher level of finance receivables outstanding, higher yields on finance receivables, reflecting the higher interest rate environment, partially offset by higher leveraged lease income in 1994. Its income increased due to (a) those factors and (b) a decrease in loan loss provisions, reflecting an improvement in equipment portfolios and a stabilization of nonperforming real estate loans, partially offset by (c) an increase in the blended cost of borrowed funds. Paul Revere's revenues increased $38 million (12%), due to continued premium growth in its individual disability insurance and group insurance lines of business and higher net investment income. Its income decreased $14 million (33%), primarily as a result of a higher individual disability insurance benefit ratio, partially offset by lower benefit ratios in the group insurance line of business, increased premium volume and improved expense ratios across all lines of business. The higher benefit ratio in the individual disability insurance business was the result of adverse claims experience from the block of policies issued between 1985 and 1989, especially in Florida and California. In addition, business issued to physicians has performed below expectations. The ratio was 89.4%, up from 75.6% in the first quarter of 1994 and down from 92.3% in the fourth quarter of 1994. Paul Revere continued its program to improve operating results through new products, pricing and underwriting adjustments, as well as a continued emphasis on claims management. Paul Revere continues to expect a gradual improvement in the individual disability insurance benefit ratio throughout 1995. Corporate expenses and other - net for the three months ended April 1, 1995 were higher than the corresponding level in 1994 as a result of (a) increased compensation expense resulting from appreciation in the market value of Textron's common stock and (b) foreign exchange losses in 1995 compared to foreign exchange gains in 1994. Lower interest expense of the Textron Parent Company Borrowing Group reflected a lower level of average borrowing, partially offset by an increased average cost of borrowing. The quarter's results reflected a slightly higher effective income tax rate than the corresponding prior year rate. PART II. OTHER INFORMATION Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits 12.1 Computation of ratio of income to fixed charges of the Textron Parent Company Borrowing Group. 12.2 Computation of ratio of income to fixed charges of Textron Inc.including all majority-owned subsidiaries. 27 Financial Data Schedule (b) Reports on Form 8-K No reports on Form 8-K were filed during the first quarter ended April 1, 1995. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TEXTRON INC. Date: May 12, 1995 s/W. P. Janovitz W. P. Janovitz Vice President and Controller (principal accounting officer) LIST OF EXHIBITS The following exhibits are filed as part of this report on Form 10-Q: Name of Exhibit 12.1 Computation of ratio of income to fixed charges of the Textron Parent Company Borrowing Group 12.2 Computation of ratio of income to fixed charges of Textron Inc. including all majority-owned subsidiaries 27 Financial Data Schedule EX-12.1 2 EXHIBIT 12.1 TEXTRON PARENT COMPANY BORROWING GROUP COMPUTATION OF RATIO OF INCOME TO FIXED CHARGES (unaudited) (In millions except ratio)
Three Months Ended April 1, 1995 Fixed charges: Interest expense (1) $ 50 Estimated interest portion of rents 5 Total fixed charges $ 55 Income: Income before income taxes $ 185 Fixed charges 55 Eliminate equity in undistributed pretax income of finance and insurance subsidiaries (85) Adjusted income $ 155 Ratio of income to fixed charges 2.82 (1) Includes interest unrelated to borrowings of $12 million (primarily interest accretion).
EX-12.2 3 EXHIBIT 12.2 TEXTRON INC. INCLUDING ALL MAJORITY-OWNED SUBSIDIARIES COMPUTATION OF RATIO OF INCOME TO FIXED CHARGES (unaudited) (In millions except ratio)
Three Months Ended April 1, 1995 Fixed charges: Interest expense (1) $ 202 Estimated interest portion of rents 10 Total fixed charges $ 212 Income: Income before income taxes $ 185 Elimination of minority interest in pretax income of Paul Revere (5) Fixed charges 212 Adjusted income $ 392 Ratio of income to fixed charges 1.85 (1) Includes interest unrelated to borrowings of $12 million (primarily interest accretion).
EX-27 4
5 This schedule contains summary financial information extracted from Textron Inc.'s Consolidated Balance Sheet as of April 1, 1995 and Consolidated Statement of Income for the three months ended April 1, 1995 and is qualified in its entirety by reference to such financial statements. 1000000 3-MOS DEC-30-1995 APR-01-1995 52 0 10437 265 1267 0 2822 1554 21967 0 10177 12 0 16 2952 21967 1554 2387 1273 1583 0 39 202 185 73 109 0 0 0 109 1.25 1.25
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