EX-12.1 9 d276253dex121.htm COMPUTATION OF RATIO OF INCOME TO FIXED CHARGES OF MANUFACTURING GROUP Computation of ratio of income to fixed charges of Manufacturing Group

EXHIBIT 12.1

TEXTRON INC.

MANUFACTURING GROUP

COMPUTATION OF RATIO OF INCOME TO FIXED CHARGES

(Unaudited)

(In millions except ratios)

 

     Year  
     2011     2010     2009     2008     2007  

Fixed charges:

           

Interest expense*

    $ 177      $ 176      $ 153      $ 141      $ 110   

Estimated interest portion of rents

      30        29        31        32        25   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 207      $ 205      $ 184      $ 173      $ 135   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income:

           

Income (loss) from continuing operations before

income taxes

    $ 337      $ 86      $ (149 )    $ 629      $ 1,234   

Fixed charges

      207        205        184        173        135   

Dividends received from Finance group

      179        505        349        142        135   

Capital contributions paid to Finance group under Support Agreement**

      (182 )      (383 )      (270 )      (625 )      —   

Eliminate pretax loss (income) of Finance group

      333        339        307        538        (222 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted income

    $ 874      $ 752      $ 421      $ 857      $ 1,282   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of income to fixed charges

      4.22        3.67        2.29        4.95        9.50   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

* 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.