document3
Exhibit 99.2
TEXTRON INC.
INDEX TO APRIL 4, 1998 RESTATED FINANCIAL STATEMENTS
AND RELATED INFORMATION
Page (s)
Item 1. Financial Statements
Condensed Consolidated Statement of Income 2
Condensed Consolidated Balance Sheet 3
Condensed Consolidated Statement of Cash Flows 4
Notes to Condensed Consolidated Financial Statements 5-11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Revenues and Income by Segment 12
Liquidity and Capital Resources 13
Results of Operations 13-15
Item 3. Quantitative and Qualitative Disclosures about Market 15
Risk
Other
Computation of ratio of income to combined fixed charges and 16
preferred securities dividends of the Parent Group
Computation of ratio of income to combined fixed charges and 17
preferred securities dividends of Textron Inc. including all
majority-owned subsidiaries
Item 1. FINANCIAL STATEMENTS
TEXTRON INC.
Condensed Consolidated Statement of Income (unaudited)
(Dollars in millions except per share amounts)
Three months ended
April 4, March 29,
1998 1997
Revenues
Manufacturing sales $ 2,167 $ 2,021
Finance revenues 85 82
Total revenues 2,252 2,103
Costs and expenses
Cost of sales 1,765 1,656
Selling and administrative 238 221
Interest 74 76
Provision for losses on collection of finance 5 6
receivables
Total costs and expenses 2,082 1,959
Income from continuing operations before income taxes
and distributions on preferred securities of
subsidiary trust 170 144
Income taxes (65) (58)
Distributions on preferred securities of subsidiary
trust, net of income taxes (6) (6)
Income from continuing operations,
net of income taxes 99 80
Income from discontinued operation, net of income 43 45
taxes
Net income $ 142 $ 125
Earnings per common share:
Basic:
Income from continuing operations $ .60 $ .48
Income from discontinued operation .27 .27
Net income $ .87 $ .75
Diluted:
Income from continuing operations $ .59 $ .47
Income from discontinued operation .26 .26
Net income $ .85 $ .73
Average shares outstanding:
Basic 162,809,000 165,897,000
Diluted 167,155,000 170,388,000
Dividends per share:
$2.08 Preferred stock, Series A $ .52 $ .52
$1.40 Preferred stock, Series B $ .35 $ .35
Common stock $ .285 $ .25
See notes to condensed consolidated financial statements.
Item 1. FINANCIAL STATEMENTS (Continued)
TEXTRON INC.
Condensed Consolidated Balance Sheet (unaudited)
(Dollars in millions)
April 4, January 3,
1998 1998
Assets
Parent Group:
Cash $ 7 $ 30
Commercial and U.S. government receivables 1,050 920
Inventories 1,568 1,349
Investment in discontinued operation 1,174 1,214
Other current assets 329 185
Total Parent Group current assets 4,128 3,698
Property, plant, and equipment, less accumulated
depreciation of $1,699 and $1,676 1,825 1,761
Goodwill, less accumulated amortization of $342 and
$329 1,733 1,567
Other 1,188 1,126
Total Parent Group assets 8,874 8,152
Finance Group:
Cash 13 13
Finance receivables - net 3,110 2,993
Other assets 194 172
Total Finance Group assets 3,317 3,178
Total Company assets $ 12,191 $ 11,330
Liabilities and shareholders' equity
Liabilities
Parent Group:
Current portion of long-term debt and short-term debt $ 866 $ 476
Accounts payable 827 812
Accrued liabilities 847 853
Total Parent Group current liabilities 2,540 2,141
Accrued postretirement benefits other than pensions 763 766
Other liabilities 1,317 1,195
Long-term debt 841 745
Total Parent Group liabilities 5,461 4,847
Finance Group:
Other liabilities 153 88
Deferred income taxes 319 319
Debt 2,413 2,365
Total Finance Group liabilities 2,885 2,772
Total Company liabilities 8,346 7,619
Textron - obligated mandatorily redeemable
preferred securities of subsidiary trust holding
solely Textron junior subordinated debt securities 483 483
Shareholders' equity
Capital stock:
Preferred stock 13 13
Common stock 24 24
Capital surplus 865 830
Retained earnings 3,457 3,362
Accumulated other comprehensive income (58) (62)
4,301 4,167
Less cost of treasury shares 939 939
Total shareholders' equity 3,362 3,228
Total liabilities and shareholders' equity $ 12,191 $ 11,330
Common shares outstanding 163,361,000 162,343,000
See notes to condensed consolidated financial statements.
Item 1. FINANCIAL STATEMENTS (Continued)
TEXTRON INC.
Condensed Consolidated Statement of Cash Flows (Unaudited)
(In millions)
Three Months Ended
April 4, March 29,
1998 1997
Cash flows from operating activities:
Income from continuing operations $ 99 $ 80
Adjustments to reconcile income from continuing
operations to net cash provided by operating activities:
Depreciation 65 57
Amortization 17 16
Provision for losses on receivables 7 8
Dividends from discontinued operation 90 25
Changes in assets and liabilities excluding those
related to acquisitions and divestitures:
Increase in commercial and U.S. government
receivables (90) (8)
Increase in inventories (156) (138)
Decrease (increase) in other assets (123) 9
Increase (decrease) in accounts payable (13) 17
Increase in accrued liabilities 114 2
Other - net 29 (7)
Net cash provided by operating activities 39 61
Cash flows from investing activities:
Finance receivables:
Originated or purchased (801) (528)
Repaid or sold 749 516
Cash used in acquisitions (227) (324)
Cash received from dispositions - 549
Capital expenditures (82) (82)
Other investing activities - net (5) 13
Net cash provided (used) by investing activities (366) 144
Cash flows from financing activities:
Increase (decrease) in short-term debt 350 (59)
Proceeds from issuance of long-term debt (329) 2
Principal payments on long-term debt 300 (45)
Proceeds from exercise of stock options 30 16
Purchases of Textron common stock - (6)
Dividends paid (47) (42)
Net cash provided (used) by financing activities 304 (134)
Net increase (decrease) in cash (23) 71
Cash at beginning of period 43 31
Cash at end of period $ 20 $ 102
See notes to condensed consolidated financial statements.
TEXTRON INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
Note 1: Basis of presentation
The financial statements should be read in conjunction with the
financial statements included in Textron's Annual Report on Form 10-K
and the restated financial statements on Form 8-K dated October 6,
1998 for the year ended January 3, 1998. The financial statements
reflect all adjustments (consisting only of normal recurring
adjustments) which are, in the opinion of management, necessary for a
fair presentation of Textron's consolidated financial position at
April 4, 1998, and its consolidated results of operations and cash
flows for each of the respective three month periods ended April 4,
1998 and March 29, 1997. Business segment data has been reclassified
to reflect the transfer of Lycoming from the Aircraft segment to the
Industrial segment.
Note 2: Subsequent events
On August 11, 1998, Textron announced that it had reached an agreement
to sell Avco Financial Services (AFS) to Associates First Capital
Corporation for $3.9 billion in cash. This transaction is subject to
regulatory approvals and it is expected to close at the end of 1998 or
early 1999. Textron has restated its financial statements as
presented herein to treat AFS as a discontinued operation. Also, on
August 11, 1998 Textron announced that its Board of Directors had
authorized a new 25 million share repurchase program that supersedes
the 8 million shares that remained under its previous authorization.
Summarized operating results of AFS are represented below:
Three months ended
April 4, March 29,
1998 1997
(In millions)
Revenues $ 464 $ 446
Cost and expenses 394 373
Income before income taxes 70 73
Income taxes (27) (28)
Net income $ 43 $ 45
Presented below is a summary of AFS' financial position at April 4 and
January 3, 1998:
April 4, January 3,
1998 1998
(In millions)
Assets:
Investments $ 909 $ 844
Finance receivables - net 7,192 7,234
Other 638 654
Total assets $ 8,739 $ 8,732
Liabilities:
Accounts payable $ 115 $ 123
Accrued liabilities, including
income taxes 462 485
Debt 6,988 6,910
Total equity 1,174 1,214
Total liabilities and equity $ 8,739 $ 8,732
Note 3: Earnings per Share
In 1997, Textron adopted FAS 128 "Earnings Per Share." FAS 128
requires companies to present basic and diluted earnings per share
amounts. The dilutive effect of convertible preferred stock and stock
options was 4,436,000 and 4,491,000 shares for the three month periods
ending April 4, 1998 and March 29, 1997, respectively. Income
available to common shareholders used to calculate both basic and
diluted earnings per share approximated net income for both periods.
Note 4: Inventories
April 4, January 3,
1998 1998
(In millions)
Finished goods $ 458 $ 454
Work in process 865 675
Raw materials 420 366
1,743 1,495
Less progress payments and
customer 175 146
deposits
$ 1,568 $ 1,349
Note 5: Textron-obligated mandatorily redeemable preferred securities of
subsidiary trust holding solely Textron junior subordinated debt
securities
In 1996, a trust sponsored and wholly-owned by Textron issued
preferred securities to the public (for $500 million) and shares of
its common securities to Textron (for $15.5 million), the proceeds of
which were invested by the trust in $515.5 million aggregate principal
amount of Textron's newly issued 7.92% Junior Subordinated Deferrable
Interest Debentures, due 2045. The debentures are the sole asset of
the trust. The amounts due to the trust under the debentures and the
related income statement amounts have been eliminated in Textron's
consolidated financial statements.
The preferred securities accrue and pay cash distributions quarterly
at a rate of 7.92% per annum. Textron has guaranteed, on a
subordinated basis, distributions and other payments due on the
preferred securities. The guarantee, when taken together with
Textron's obligations under the debentures and in the indenture
pursuant to which the debentures were issued and Textron's obligations
under the Amended and Restated Declaration of Trust governing the
trust, provides a full and unconditional guarantee of amounts due on
the preferred securities.
The preferred securities are mandatorily redeemable upon the maturity
of the debentures on March 31, 2045, or earlier to the extent of any
redemption by Textron of any debentures. The redemption price in
either such case will be $25 per share plus accrued and unpaid
distributions to the date fixed for redemption.
Note 6: Contingencies
Textron is subject to a number of lawsuits, investigations and claims
arising out of the conduct of its business, including those relating
to commercial transactions, government contracts, product liability,
and environmental, safety and health matters. Some seek compensatory,
treble or punitive damages in substantial amounts; fines, penalties or
restitution; or remediation of contamination. Some are or purport to
be class actions. Under federal government procurement regulations,
some could result in suspension or debarment of Textron or its
subsidiaries from U.S. government contracting for a period of time. On
the basis of information presently available, Textron believes that
any liability for these suits and proceedings would not have a
material effect on Textron's net income or financial condition.
Note 7: Comprehensive Income
In 1998, Textron adopted FAS 130, "Reporting Comprehensive Income."
FAS 130 establishes new rules for the reporting and display of
comprehensive income and its components; however, the adoption of this
Statement had no impact on Textron's net income or shareholders'
equity. FAS 130 requires unrealized gains or losses on the Company's
available-for-sale securities and foreign currency translation
adjustments, which prior to adoption were reported separately in
shareholders' equity, to be included in other comprehensive income.
Prior year financial statements have been reclassified to conform to
the requirements of FAS 130.
During the first quarter of 1998 and 1997, total comprehensive income
amounted to $146 million and $90 million, respectively.
Note 8: Financial information by borrowing group
Textron consists of two borrowing groups - the Textron Parent Company
Borrowing Group (Parent Group) and Textron's commercial finance
subsidiary (Finance Group). The Parent Group consists of all entities
of Textron (primarily manufacturing) other than its wholly-owned
commercial finance subsidiary. The Finance Group consists of Textron
Financial Corporation (TFC). Summarized financial information for the
Parent Group (Statement of Income and Statement of Cash Flows)
includes the Finance Group on a one-line basis under the equity method
of accounting.
Item 1 FINANCIAL STATEMENTS (Continued)
Note 8: Financial information by borrowing group (continued)
PARENT GROUP
(unaudited) (In millions)
Three Months Ended
April 4, March 29,
Condensed Statement of Income 1998 1997
Sales $ 2,167 $ 2,021
Costs and expenses
Cost of sales 1,765 1,656
Selling and administrative 221 206
Interest 36 39
Total costs and expenses 2,022 1,901
145 120
Pretax income of Finance Group 25 24
Income from continuing operations before income taxes
and distribution on preferred securities of subsidiary
trust 170 144
Income taxes (65) (58)
Distributions on preferred securities of subsidiary
trust, net of income taxes (6) (6)
Income from continuing operations, net of income
taxes 99 80
Income from discontinued operation, net of income
taxes 43 45
Net income $ 142 $ 125
Item 1. FINANCIAL STATEMENTS (Continued)
Note 8: Financial information by borrowing group (continued)
PARENT GROUP (continued)
(Unaudited) (In millions)
Three Months Ended
April 4, March 29,
1998 1997
Condensed Statement of Cash Flows
Cash flows from operating activities:
Income from continuing operations $ 99 $ 80
Adjustments to reconcile income from continuing
operations to net cash provided (used) by operating
activities:
Earnings of Finance Group (greater than)
less than distributions to Parent Group (3) 9
Dividends received from discontinued operation 90 25
Depreciation 64 55
Amortization 16 15
Changes in assets and liabilities excluding those
related to acquisitions and divestitures:
Increase in receivables (90) (8)
Increase in inventories (156) (138)
Increase in other assets (149) (25)
Increase in accounts payable and accrued
liabilities 71 16
Other - net 31 (8)
Net cash provided (used) by operating
activities (27) 21
Cash flows from investing activities:
Capital expenditures (82) (81)
Cash used in acquisitions (210) (324)
Cash received from dispositions - 549
Other investing activities - net 7 14
Net cash provided (used) by investing
activities (285) 158
Cash flows from financing activities:
Increase in short-term debt 374 (80)
Proceeds from issuance of long-term debt - 2
Principal payments on long-term debt (45) (5)
Proceeds from exercise of stock options 30 16
Purchases of Textron common stock - (6)
Dividends paid (47) (42)
Contributions paid to Finance Group (23) -
Net cash provided (used) by financing
activities 289 (115)
Net increase (decrease) in cash (23) 64
Cash at beginning of period 30 24
Cash at end of period $ 7 $ 88
Item 1 FINANCIAL STATEMENTS (Continued)
Note 8: Financial information by borrowing group (continued)
FINANCE GROUP
(unaudited) (In millions)
Three Months Ended
March 31, March 31,
Condensed Statement of Income 1998 1997
Revenues $ 85 $ 82
Costs and expenses
Selling and administrative 18 15
Interest 37 37
Provision for losses on collection of finance
receivables 5 6
Total costs and expenses 60 58
Income before income taxes 25 24
Income taxes (10) (10)
Net income $ 15 $ 14
<\TABLE\
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
TEXTRON INC.
Revenues and Income by Business Segment
(In millions)
Three Months Ended
April 4, March 29,
1998 1997
REVENUES
MANUFACTURING:
Aircraft $ 656 $ 679
Automotive 618 557
Industrial 893 785
2,167 2,021
FINANCE 85 82
Total revenues $ 2,252 $ 2,103
INCOME
MANUFACTURING:
Aircraft $ 61 $ 60
Automotive 56 50
Industrial 95 82
212 192
FINANCE 25 24
Segment operating income 237 216
Corporate expenses and other - net (31) (33)
Interest expense - net (36) (39)
Income from continuing operations before income
taxes and distributions on preferred securities
of subsidiary trust $ 170 $ 144
Liquidity and Capital Resources
The Statements of Cash Flows for Textron Inc. and the Parent Group detailing the
changes in cash balances are on pages 4 and 10, respectively. The Parent
Group's operating cash flow includes dividends received from the Finance Group
of $12 million and $23 million during the first three months of 1998 and 1997,
respectively.
The Parent Group's debt to total capital ratio was 31% at April 4, 1998, up from
25% at year end. The Parent Group has credit facilities outstanding at April 4,
1998 aggregating $2.0 billion, $1.1 billion of which was not used or reserved as
support for outstanding commercial paper or bank borrowings. At March 31, 1998,
the Finance Group had credit facilities outstanding of approximately $1.1
billion, $125 million of which was available at quarter end. The Parent Group
had $311 million available at quarter end under its shelf registration statement
with the Securities and Exchange Commission. In the first quarter of 1998, the
Finance Group increased its medium-term note facility by $750 million and issued
$300 million medium-term notes under this facility. The Finance Group had $542
million available under the facility at March 31, 1998.
In the first quarter, Textron acquired the capital stock of Ransomes PLC, a UK-
based manufacturer of commercial turf-care machinery, and Sukosim, a German
fastener manufacturer. The cost of these acquisitions was approximately $290
million, which includes notes issued for approximately $80 million, plus the
assumption of debt.
In the first three months of 1998, the Parent Group terminated $275 million of
fixed-pay interest rate exchange agreements.
On August 11, 1998, Textron announced that its Board of Directors had authorized
a new 25 million share repurchase program that supersedes the 8 million shares
that remained under its previous authorization.
Management believes that the Parent Group will continue to have adequate access
to credit markets and that its credit facilities, cash flows from operations --
including dividends received from Textron's Finance Group -- and expected
proceeds from the sale of AFS, will continue to be more than sufficient to meet
its operating needs and to finance growth.
Results of Operations - Three months ended April 4, 1998 vs Three months ended
March 29, 1997
Diluted earnings per share from continuing operations in the first quarter of
1998 were $0.59 per share, up 26% from the 1997 amount of $0.47. Income from
continuing operations in 1998 of $99 million was up 24% from $80 million for
1997.
Diluted earnings per share - net income in the first quarter 1998 were $0.85 per
share, up 16% from the 1997 amount of $0.73. Net income in 1998 of $142 million
was up 14% from $125 million for 1997. Revenues increased 7% to $2.3 billion in
1998 from $2.1 billion in 1997.
On August 11, 1998, Textron announced that it had reached an agreement to sell
Avco Financial Services (AFS) to Associates First Capital Corporation for $3.9
billion in cash. This transaction is subject to regulatory approvals and it is
expected to close at the end of 1998 or early 1999. Textron has restated its
financial statements as presented herein to treat AFS as a discontinued
operation. See Note 2 to the condensed consolidated financial statements for
additional information.
The Aircraft segment's revenues decreased $23 million (3%), while income
increased $1 million (2%), due to higher results at Cessna Aircraft. Cessna's
revenues and income increased as a result of higher sales of business jets and
single engine aircraft. Bell Helicopter's revenues and income decreased due to
lower commercial helicopter sales ($89 million), reflecting the completion in
1997 of the three-year contract for model 412 helicopters with the Canadian
Forces, partially offset by higher revenues on the six-year contract to upgrade
Huey and Cobra helicopters for the U.S. Marines ($14 million). The impact of a
favorable profit adjustment on the V-22 EMD contract in 1997 was offset by a
lower level of product development expense in 1998.
The Automotive segment's revenues increased $61 million (11%), while income
increased $6 million (12%). These revenue and income increases were due to
higher volume at Kautex associated with capacity expansion in North America, and
higher sales and improved performance in the Trim operations, reflecting
increased production of models with Textron content, primarily at Chrysler.
The Industrial segment's revenues and income increased $108 million (14%) and
$13 million (16%), respectively, reflecting the contribution from acquisitions,
principally Ransomes PLC., and internal growth combined with ongoing margin
improvement. Internal growth was driven by continued strength in the fastening
systems, aerospace components and contractor tools businesses. These benefits
were partially offset by the fourth quarter 1997 divestiture of Speidel.
The Finance segment's (TFC) revenues increased $3 million, due to an increase in
other income, and higher yields on receivables (10.10% in the first quarter 1998
vs 9.84% in the first quarter 1997), partially offset by a lower level of
average receivables ($3.059 billion in the first quarter 1998 vs $3.139 billion
in the first quarter 1997), due primarily to the securitization of $401 million
of Textron-related receivables in the third quarter of 1997. The increase in
other income is due primarily to servicing fees related to securitized
receivables, an increase in fee-based services and higher prepayment income,
partially offset by lower arrangement fee income. Its income increased $1
million, due to the higher revenues and a lower provision for losses, partially
offset by growth in businesses with higher operating expense ratios.
Discontinued Operations - AFS' revenues increased $18 million, while income
decreased $3 million. Revenues in its finance and related insurance business
increased $11 million, due to an increase in average finance receivables ($7.683
billion in the first quarter 1998 vs $7.179 billion in the first quarter 1997),
reflecting the benefit of the acquisition of $534 million of commercial
receivables during 1997, and a gain of $4 million on the sale of certain
underperforming branches in 1998. The benefit of these revenue increases was
partially offset by a decrease in yields on finance receivables (17.18% in the
first quarter 1998 vs 18.08% in the first quarter 1997), reflecting both
decreases in yields on consumer finance receivables and the impact of an
increase in lower-yielding commercial receivables. Income decreased $6 million,
due primarily to the lower yields on finance receivables and a slight increase
in the average cost of borrowed funds (6.55% in the first quarter 1998 vs 6.49%
in the first quarter 1997), partially offset by the benefit of the revenue
increases and a decrease in the provision for losses resulting from a decrease
in the ratio of net credit losses to average finance receivables (2.86% in the
first quarter 1998 vs 3.06% in the first quarter 1997). The decrease in the net
credit losses to average finance receivables was attributable to the impact of
the increase in commercial receivables, which have a lower loss ratio, partially
offset by a slight increase in the loss ratio for the consumer finance business
(3.20% in the first quarter 1998 vs 3.17% in the first quarter 1997).
Delinquencies and charge-offs remain at higher than historical levels. AFS
continued to reconfigure its branch network in the U.S. and sold nine additional
underperforming branches in the first quarter.
In AFS' nonrelated insurance business, revenues increased $7 million and income
increased $3 million, due primarily to higher premiums earned and an increase in
investment income, reflecting a higher level of invested assets and capital
gains.
Corporate expenses and other -net decreased $2 million due primarily to 1997
litigation costs related to a divested operation. Interest expense-net for the
Parent Group decreased $3 million, due to lower average debt, resulting from the
payment of debt with proceeds in 1997 from the divestiture of Paul Revere,
partially offset by the incremental debt associated with acquisitions. Income
taxes - the current quarter's effective income tax rate of 38.2% was lower than
the corresponding prior year rate of 40.3%, due primarily to lower state income
taxes and an increase in tax benefits on export sales.
Forward-looking Information: Certain statements in this Report, and other oral
and written statements made by Textron from time to time, are forward-looking
statements, including those that discuss strategies, goals, outlook or other
non-historical matters; or project revenues, income, returns or other financial
measures. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially from those
contained in the statements, including the following: (i) continued market
demand for the types of products and services produced and sold by Textron, (ii)
changes in worldwide economic and political conditions and associated impact on
interest and foreign exchange rates, (iii) the level of sales by original
equipment manufacturers of vehicles for which Textron supplies parts, and (iv)
the successful integration of companies acquired by Textron.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
See the Company's most recent Restated Financial Statements and Related
Financial Information filed on Form 8-K Exhibit 99.1 (Management's Discussion
and Analysis on pages 3 through 9). There has been no material change in this
information.
PARENT GROUP
COMPUTATION OF RATIO OF INCOME TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(unaudited)
(In millions except ratio)
Three Months
Ended
April 4, 1998
Fixed charges:
Interest expense $ 36
Distributions on preferred securities of subsidiary
trust, net of income taxes 6
Estimated interest portion of rents 5
Total fixed charges $ 47
Income:
Income from continuing operations before income taxes
and distributions on preferred securities of
subsidiary trust $ 170
Eliminate equity in undistributed pretax income of
Finance Group (13)
Fixed charges (1) 41
Adjusted income $ 198
Ratio of income to fixed charges 4.21
(1)Adjusted to exclude distributions on preferred securities of subsidiary
trust, net of income taxes.
TEXTRON INC. INCLUDING ALL MAJORITY-OWNED SUBSIDIARIES
COMPUTATION OF RATIO OF INCOME TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(unaudited)
(In millions except ratio)
Three Months
Ended
April 4,1998
Fixed charges:
Interest expense $ 74
Distributions on preferred securities of subsidiary
trust, net of income taxes 6
Estimated interest portion of rents 5
Total fixed charges $ 85
Income:
Income from continuing operations before income taxes
and distributions on preferred securities of
subsidiary trust $ 170
Fixed charges (1) 79
Adjusted income $ 249
Ratio of income to fixed charges 2.93
(1) Adjusted to exclude distributions on preferred securities of subsidiary
trust, net of income taxes