EX-12 5 twetwo.htm COMPENSATION OF RATIO EXHIBIT 12

EXHIBIT 12.2

 

TEXTRON INC.
INCLUDING ALL MAJORITY-OWNED SUBSIDIARIES

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

$

350

  

     Distributions on preferred securities of subsidiary trusts

  

19

  

     Estimated interest portion of rents

  

25

  


          Total fixed charges


$


394

  
   

 

  
   

 

  

Income:

  

 

  

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


$


(3)

  

     Fixed charges *

  

375

  


          Adjusted income


$


372

  
   

 

  


 


 

Ratio of income to fixed charges

  

.94

  
   

 

  

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 $22 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 the calculation, the ratio would be 2.00.

*     Adjusted to exclude distributions on preferred securities of subsidiary trusts.