SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 20, 2002
TEXTRON FINANCIAL CORPORATION
(Exact name of Registrant as Specified in Its Charter)
Delaware
(State of Other Jurisdiction of Incorporation)
0-27559
(Commission File Number)
05-6008768
(IRS Employer Identification Number)
40 Westminster Street, P.O. Box 6687, Providence, Rhode Island 02940-6687
(Address of Principal Executive Offices) (Zip Code)
(401) 621-4200
(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
As described in Textron Financial Corporation's (the "Corporation") recent third
quarter Form 10-Q, the Corporation has made a strategic decision to realign
certain business segments. As a result of this decision, the Corporation plans
to liquidate or divest 18.8% of its managed and serviced finance receivables,
having a value of approximately $1.77 billion (all amounts herein are as of
September 30, 2002), so that it can focus on the financing of Textron related
products and other core niche businesses. These finance receivables accounted
for 40.4% ($83.3 million) of the Corporation's total nonperforming assets and
51.6% ($81.3 million) of the delinquency. The reduction should bring the
portfolio of the Corporation to approximately $7.68 billion in total managed and
serviced receivables from approximately $9.45 billion. Financial information
related to these assets was included in the "Other" segment in the third quarter
Form 10-Q. The Corporation expects the liquidation or divestiture of these
assets will take place in the ordinary course of the Corporation's business over
the next 18 to 24 months.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Corporation has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TEXTRON FINANCIAL CORPORATION
Date: December 20, 2002 By: /s/ Thomas J. Cullen
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Name: Thomas J. Cullen
Title: Executive Vice President and
Chief Financial Officer