At the beginning of 2018, we adopted the new revenue recognition
accounting standard using a modified retrospective transition method
applied to contracts that were not substantially complete at the end of
2017. We recorded a $90 million adjustment to increase retained earnings
to reflect the cumulative impact of adopting this standard at the
beginning of 2018, primarily related to long-term contracts with the
U.S. Government. Revenues associated with these contracts in 2018 are
primarily recognized as costs are incurred, while revenues for 2017 were
primarily recognized as units were delivered. The comparative
information has not been restated and is reported under the accounting
standards in effect for those periods.
|
TEXTRON INC.
|
|
MANUFACTURING GROUP
|
|
Condensed Schedule of Cash Flows
|
|
(In millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
March 31, 2018
|
|
|
April 1, 2017
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
$
|
179
|
|
|
|
$
|
94
|
|
|
Depreciation and amortization
|
|
|
|
103
|
|
|
|
|
103
|
|
|
Changes in working capital (a)
|
|
|
|
(376
|
)
|
|
|
|
(337
|
)
|
|
Changes in other assets and liabilities and non-cash items (a)
|
|
|
|
(9
|
)
|
|
|
|
(25
|
)
|
|
Dividends received from TFC
|
|
|
|
50
|
|
|
|
|
-
|
|
|
Net cash from operating activities of continuing operations (a)
|
|
|
|
(53
|
)
|
|
|
|
(165
|
)
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(77
|
)
|
|
|
|
(76
|
)
|
|
Net proceeds from corporate-owned life insurance policies (a)
|
|
|
|
58
|
|
|
|
|
22
|
|
|
Proceeds from the sale of property, plant and equipment
|
|
|
|
9
|
|
|
|
|
-
|
|
|
Net cash used in acquisitions
|
|
|
|
-
|
|
|
|
|
(318
|
)
|
|
Other investing activities, net
|
|
|
|
-
|
|
|
|
|
1
|
|
|
Net cash from investing activities (a)
|
|
|
|
(10
|
)
|
|
|
|
(371
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Increase in short-term debt
|
|
|
|
2
|
|
|
|
|
100
|
|
|
Proceeds from long-term debt
|
|
|
|
-
|
|
|
|
|
347
|
|
|
Purchases of Textron common stock
|
|
|
|
(344
|
)
|
|
|
|
(186
|
)
|
|
Other financing activities, net
|
|
|
|
3
|
|
|
|
|
13
|
|
|
Net cash from financing activities
|
|
|
|
(339
|
)
|
|
|
|
274
|
|
|
Total cash flows from continuing operations
|
|
|
|
(402
|
)
|
|
|
|
(262
|
)
|
|
Total cash flows from discontinued operations
|
|
|
|
-
|
|
|
|
|
(25
|
)
|
|
Effect of exchange rate changes on cash and equivalents
|
|
|
|
11
|
|
|
|
|
8
|
|
|
Net change in cash and equivalents
|
|
|
|
(391
|
)
|
|
|
|
(279
|
)
|
|
Cash and equivalents at beginning of period
|
|
|
|
1,079
|
|
|
|
|
1,137
|
|
|
Cash and equivalents at end of period
|
|
|
$
|
688
|
|
|
|
$
|
858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing Cash Flow GAAP to Non-GAAP Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from operating activities of continuing operations -
GAAP (a)
|
|
|
$
|
(53
|
)
|
|
|
$
|
(165
|
)
|
|
Less:
|
Capital Expenditures
|
|
|
|
(77
|
)
|
|
|
|
(76
|
)
|
|
|
|
|
|
Dividends received from TFC
|
|
|
|
(50
|
)
|
|
|
|
-
|
|
|
Plus:
|
Total pension contributions
|
|
|
|
13
|
|
|
|
|
14
|
|
|
|
|
|
|
Proceeds from the sale of property, plant and equipment
|
|
|
|
9
|
|
|
|
|
-
|
|
|
Manufacturing cash flow before pension contributions - Non-GAAP
(a) (b)
|
|
|
$
|
(158
|
)
|
|
|
$
|
(227
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
