EX-12 2 b68177tfexv12.htm EX-12 COMPUTATION OF RATION OF EARNINGS TO FIXED CHANGES exv12
 

Exhibit 12
TEXTRON FINANCIAL CORPORATION
STATEMENT SETTING FORTH COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                         
    2007     2006     2005     2004     2003  
    (Dollars in millions)  
Income from continuing operations before income taxes and distributions on preferred securities
   $ 222     $ 210     $ 171     $ 139     $ 117  
 
                              
 
                                        
Fixed Charges:
                                        
Interest on debt
      397        351        218        154        171  
Estimated interest portion of rents
     3       3       3       3       3  
 
                              
Total fixed charges
      400        354        221        157        174  
 
                              
Adjusted income
   $ 622     $ 564     $ 392     $ 296     $ 291  
Ratio of earnings to fixed charges (1)
     1.56 x     1.59 x     1.77 x     1.89 x     1.67 x
 
                              
 
(1)   The ratio of earnings to fixed charges has been computed by dividing income before income taxes, distributions on preferred securities and cumulative effect of change in accounting principle and fixed charges by fixed charges. Fixed charges consist of interest on debt and one-third rental expense as representative of interest portion of rentals.