EX-12.1 3 b77277exv12w1.htm EX-12.1 COMPUTATION OF RATIO OF INCOME TO FIXED CHARGES OF TEXTRON INC.'S MANUFACTURING GROUP exv12w1
EXHIBIT 12.1
TEXTRON INC.
MANUFACTURING GROUP
COMPUTATION OF RATIO OF INCOME TO FIXED CHARGES
(Unaudited)
(In millions except ratios)
                                         
    Year  
    2009     2008     2007     2006     2005  
Fixed charges:
                                        
Interest expense*
   $ 153     $ 141     $ 110     $ 100     $ 95  
Estimated interest portion of rents
     31       32       25       25       25  
 
                              
 
                                        
Total fixed charges
   $ 184     $ 173     $ 135     $ 125     $ 120  
 
                              
 
                                        
Income:
                                        
Income (loss) from continuing operations before income taxes
   $ (149 )   $ 629     $ 1,234     $ 907     $ 656  
Fixed charges
     184       173       135       125       120  
Dividends received from Finance group
     349       142       135       80       100  
Capital contributions paid to Finance group under Support Agreement**
     (270 )     (625 )     —       —       —  
Eliminate pretax loss (income) of Finance group
     307       538       (222 )     (210 )     (171 )
 
                              
 
                                        
Adjusted income
   $ 421     $ 857     $ 1,282     $ 902     $ 705  
 
                              
 
                                        
Ratio of income to fixed charges
     2.29       4.95       9.50       7.22       5.88  
 
                              
 
*   Includes interest expense on all third-party indebtedness, except for interest related to unrecognized tax benefits which is included in income tax expense.
 
**   In 2009, we changed our calculation of the ratio of income to fixed charges to reduce income for the amount of capital contributions required to be paid to the Finance group under a Support Agreement. Prior periods have been recast to conform to this presentation.