EX-12 2 b78748exv12.htm EX-12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12
Exhibit 12
TEXTRON FINANCIAL CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                         
    2009   2008   2007   2006   2005
    (Dollars in millions)
(Loss) income from continuing operations before income taxes and noncontrolling interest
   $ (305 )   $ (539 )   $ 222     $ 210     $ 171  
 
 
                                        
Fixed Charges:
                                        
Interest on debt
     159       307       397       351       218  
Estimated interest portion of rents
     2       3       3       3       3  
 
Total fixed charges
     161       310       400       354       221  
 
Adjusted (loss) income
   $ (144 )   $ (229 )   $ 622     $ 564     $ 392  
Ratio of earnings to fixed charges (1)
     (0.89 )x     (0.74 )x     1.56 x     1.59 x     1.77 x
 
(1)   The ratio of earnings to fixed charges has been computed by dividing (loss) income from continuing operations before income taxes and noncontrolling interest 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. Additional earnings of $305 million and $539 million would have been necessary to bring the ratio of earnings to fixed charges to 1.0 in 2009 and 2008, respectively.