EX-12 4 tweone.htm COMPENSATION OF RATIO EXHIBIT 12

EXHIBIT 12.1

TEXTRON MANUFACTURING

COMPUTATION OF RATIO OF INCOME TO
COMBINED FIXED CHARGES AND PREFERRED SECURITIES DIVIDENDS

(unaudited)

(In millions except ratio)

 

Nine Months
Ended
September 29,
2001

  

Fixed charges:

      

     Interest expense

$

135

  

     Distributions on preferred securities of manufacturing subsidiary trust

  

19

  

     Estimated interest portion of rents

  

24

  


          Total fixed charges


$


178

  
   

 

  
   

 

  

Income:

  

 

  

     Loss before income taxes and distributions on preferred
          securities of subsidiary trusts


$


(3)

  

     Eliminate equity in undistributed pre-tax income of Textron Finance

  

(98)

  

     Fixed charges *

  

159

  


          Adjusted income


$


58

  
   

 

  


 

 

  

Ratio of income to fixed charges

  

.33

  
   

 

  

For the nine months ended September 29, 2001, earnings are insufficient to cover fixed charges as evidenced by a less than one-to-one coverage ratio as shown above. Additional earnings of $120 million were necessary to provide a one-to-one coverage ratio. If the special charges and restructuring-related expenses, including a write-down of goodwill and intangibles related to its OmniQuip business, of $415 million were excluded from this calculation, the ratio would be 2.66.

*     Adjusted to exclude distributions on preferred securities of manufacturing subsidiary trust.