TEXTRON INC. |
||||||||||||
Revenues by Segment and Reconciliation of Segment Profit to Net Income |
||||||||||||
(Dollars in millions, except per share amounts) |
||||||||||||
(Unaudited) |
||||||||||||
Three Months Ended |
||||||||||||
April 4, 2020 |
March 30, 2019 |
|||||||||||
| REVENUES | ||||||||||||
| MANUFACTURING: | ||||||||||||
| Textron Aviation | $ |
872 |
|
$ |
1,134 |
|
||||||
| Bell |
|
823 |
|
|
739 |
|
||||||
| Textron Systems |
|
328 |
|
|
307 |
|
||||||
| Industrial |
|
740 |
|
|
912 |
|
||||||
|
2,763 |
|
|
3,092 |
|
|||||||
| FINANCE |
|
14 |
|
|
17 |
|
||||||
| Total revenues | $ |
2,777 |
|
$ |
3,109 |
|
||||||
| SEGMENT PROFIT | ||||||||||||
| MANUFACTURING: | ||||||||||||
| Textron Aviation | $ |
3 |
|
$ |
106 |
|
||||||
| Bell |
|
115 |
|
|
104 |
|
||||||
| Textron Systems |
|
26 |
|
|
28 |
|
||||||
| Industrial |
|
9 |
|
|
50 |
|
||||||
|
|
153 |
|
|
288 |
|
|||||||
| FINANCE |
|
3 |
|
|
6 |
|
||||||
| Segment Profit |
|
156 |
|
|
294 |
|
||||||
| Corporate expenses and other, net |
|
(14 |
) |
|
(47 |
) |
||||||
| Interest expense, net for Manufacturing group |
|
(34 |
) |
|
(35 |
) |
||||||
| Special charges (a) |
|
(39 |
) |
|
- |
|
||||||
| Income before income taxes |
|
69 |
|
|
212 |
|
||||||
| Income tax expense |
|
(19 |
) |
|
(33 |
) |
||||||
| Net Income | $ |
50 |
|
$ |
179 |
|
||||||
| Earnings Per Share | $ |
0.22 |
|
$ |
0.76 |
|
||||||
| Diluted average shares outstanding |
|
228,927,000 |
|
|
236,437,000 |
|
||||||
| Net Income and Diluted Earnings Per Share (EPS) GAAP to Non-GAAP Reconciliation: | ||||||||||||
| Three Months Ended
April 4, 2020 |
||||||||||||
| Diluted EPS | ||||||||||||
| Net income - GAAP | $ |
50 |
|
$ |
0.22 |
|
||||||
| Add: Special charges, net of taxes (a) |
|
30 |
|
|
0.13 |
|
||||||
| Adjusted net income - Non-GAAP (b) | $ |
80 |
|
$ |
0.35 |
|
||||||
| (a) |
Special charges included the impairment of indefinite-lived trade name intangible assets totaling $32 million in the Textron Aviation segment and $7 million in the Industrial segment resulting from changes in valuation assumptions related to the economic and business disruptions caused by the COVID-19 pandemic. | ||||||
| (b) | Adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures as defined in "Non-GAAP Financial Measures" attached to this release. | ||||||
| Textron Inc. | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (In millions) | |||||||||
| (Unaudited) | |||||||||
| April 4,
2020 |
January 4,
2020 |
||||||||
| Assets | |||||||||
| Cash and equivalents | $ |
2,263 |
$ |
1,181 |
|||||
| Accounts receivable, net | 870 |
921 |
|||||||
| Inventories | 4,385 |
4,069 |
|||||||
| Other current assets | 984 |
894 |
|||||||
| Net property, plant and equipment | 2,483 |
2,527 |
|||||||
| Goodwill | 2,150 |
2,150 |
|||||||
| Other assets | 1,854 |
2,312 |
|||||||
| Finance group assets | 957 |
964 |
|||||||
| Total Assets | $ |
15,946 |
$ |
15,018 |
|||||
| Liabilities and Shareholders' Equity | |||||||||
| Short-term debt and current portion of long-term debt | $ |
1,396 |
$ |
561 |
|||||
| Accounts payable | 1,322 |
1,378 |
|||||||
| Other current liabilities | 1,797 |
1,907 |
|||||||
| Other liabilities | 2,143 |
2,288 |
|||||||
| Long-term debt | 2,956 |
2,563 |
|||||||
| Finance group liabilities | 798 |
803 |
|||||||
| Total Liabilities | 10,412 |
9,500 |
|||||||
| Total Shareholders' Equity | 5,534 |
5,518 |
|||||||
| Total Liabilities and Shareholders' Equity | $ |
15,946 |
$ |
15,018 |
|||||
|
|
|||||||||
|
|
|||||||||||
| TEXTRON INC. | |||||||||||
| MANUFACTURING GROUP | |||||||||||
| Condensed Schedule of Cash Flows | |||||||||||
| (In millions) | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| April 4, | March 30, | ||||||||||
| 2020 |
2019 |
||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ |
48 |
|
$ |
175 |
|
|||||
| Depreciation and amortization |
|
89 |
|
|
100 |
|
|||||
| Deferred income taxes and income taxes receivable/payable |
|
9 |
|
|
6 |
|
|||||
| Pension, net |
|
(5 |
) |
|
(14 |
) |
|||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable, net |
|
47 |
|
|
(33 |
) |
|||||
| Inventories |
|
(368 |
) |
|
(241 |
) |
|||||
| Accounts payable |
|
(49 |
) |
|
47 |
|
|||||
| Dividends received from Finance group |
|
- |
|
|
50 |
|
|||||
| Other, net |
|
(164 |
) |
|
(286 |
) |
|||||
| Net cash from operating activities |
|
(393 |
) |
|
(196 |
) |
|||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures |
|
(50 |
) |
|
(59 |
) |
|||||
| Other investing activities, net |
|
(6 |
) |
|
3 |
|
|||||
| Net cash from investing activities |
|
(56 |
) |
|
(56 |
) |
|||||
| Cash flows from financing activities: | |||||||||||
| Increase in short-term debt |
|
603 |
|
|
100 |
|
|||||
| Proceeds from long-term debt |
|
643 |
|
|
- |
|
|||||
| Proceeds from borrowings against corporate-owned insurance policies |
|
377 |
|
|
- |
|
|||||
| Principal payments on long-term debt and nonrecourse debt |
|
(7 |
) |
|
- |
|
|||||
| Purchases of Textron common stock |
|
(54 |
) |
|
(202 |
) |
|||||
| Dividends paid |
|
(5 |
) |
|
(5 |
) |
|||||
| Other financing activities, net |
|
(9 |
) |
|
9 |
|
|||||
| Net cash from financing activities |
|
1,548 |
|
|
(98 |
) |
|||||
| Total cash flows from continuing operations |
|
1,099 |
|
|
(350 |
) |
|||||
| Total cash flows from discontinued operations |
|
(1 |
) |
|
- |
|
|||||
| Effect of exchange rate changes on cash and equivalents |
|
(16 |
) |
|
9 |
|
|||||
| Net change in cash and equivalents |
|
1,082 |
|
|
(341 |
) |
|||||
| Cash and equivalents at beginning of period |
|
1,181 |
|
|
987 |
|
|||||
| Cash and equivalents at end of period | $ |
2,263 |
|
$ |
646 |
|
|||||
| Manufacturing Cash Flow GAAP to Non-GAAP Reconciliation: | |||||||||||
| Three Months Ended | |||||||||||
| April 4, |
March 30, | ||||||||||
| 2020 |
2019 |
||||||||||
| Net cash from operating activities - GAAP | $ |
(393 |
) |
$ |
(196 |
) |
|||||
| Less: | Capital expenditures |
|
(50 |
) |
|
(59 |
) |
||||
| Dividends received from TFC |
|
- |
|
|
(50 |
) |
|||||
| Plus: | Total pension contributions |
|
12 |
|
|
13 |
|
||||
| Proceeds from the sale of property, plant and equipment |
|
1 |
|
|
1 |
|
|||||
| Manufacturing cash flow before pension contributions - Non-GAAP (a) | $ |
(430 |
) |
$ |
(291 |
) |
|||||
| (a) | Manufacturing cash flow before pension contributions is a non-GAAP financial measure as defined in "Non-GAAP Financial Measures" attached to this release. | ||||||
| TEXTRON INC. |
|||||||||||
| Condensed Consolidated Schedule of Cash Flows |
|||||||||||
| (In millions) |
|||||||||||
| (Unaudited) |
|||||||||||
| Three Months Ended | |||||||||||
| April 4, |
March 30, |
||||||||||
| 2020 |
2019 |
||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ |
50 |
|
$ |
179 |
|
|||||
| Depreciation and amortization |
|
90 |
|
|
102 |
|
|||||
| Deferred income taxes and income taxes receivable/payable |
|
10 |
|
|
8 |
|
|||||
| Pension, net |
|
(5 |
) |
|
(14 |
) |
|||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable, net |
|
47 |
|
|
(33 |
) |
|||||
| Inventories |
|
(368 |
) |
|
(215 |
) |
|||||
| Accounts payable |
|
(49 |
) |
|
47 |
|
|||||
| Captive finance receivables, net |
|
- |
|
|
(1 |
) |
|||||
| Other, net |
|
(169 |
) |
|
(289 |
) |
|||||
| Net cash from operating activities |
|
(394 |
) |
|
(216 |
) |
|||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures |
|
(50 |
) |
|
(59 |
) |
|||||
| Finance receivables repaid |
|
13 |
|
|
12 |
|
|||||
| Other investing activities, net |
|
(6 |
) |
|
5 |
|
|||||
| Net cash from investing activities |
|
(43 |
) |
|
(42 |
) |
|||||
| Cash flows from financing activities: | |||||||||||
| Increase in short-term debt |
|
603 |
|
|
100 |
|
|||||
| Proceeds from long-term debt |
|
643 |
|
|
- |
|
|||||
| Proceeds from borrowings against corporate-owned insurance policies |
|
377 |
|
|
- |
|
|||||
| Principal payments on long-term debt and nonrecourse debt |
|
(24 |
) |
|
(19 |
) |
|||||
| Purchases of Textron common stock |
|
(54 |
) |
|
(202 |
) |
|||||
| Dividends paid |
|
(5 |
) |
|
(5 |
) |
|||||
| Other financing activities, net |
|
3 |
|
|
10 |
|
|||||
| Net cash from financing activities |
|
1,543 |
|
|
(116 |
) |
|||||
| Total cash flows from continuing operations |
|
1,106 |
|
|
(374 |
) |
|||||
| Total cash flows from discontinued operations |
|
(16 |
) |
- |
|||||||
| Effect of exchange rate changes on cash and equivalents |
|
(1 |
) |
|
9 |
|
|||||
| Net change in cash and equivalents |
|
1,089 |
|
|
(365 |
) |
|||||
| Cash and equivalents at beginning of period |
|
1,357 |
|
|
1,107 |
|
|||||
| Cash and equivalents at end of period | $ |
2,446 |
|
$ |
742 |
|
|||||
| TEXTRON INC. | |||||||||||||
| Non-GAAP Financial Measures | |||||||||||||
| (Dollars in millions, except per share amounts) |
