Textron Reports Second Quarter 2021 Results; Raises Full Year EPS and Cash Guidance

Non-GAAP Financial Measures
(Dollars in millions, except per share amounts)

We supplement the reporting of our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures. These non-GAAP financial measures exclude certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures may be useful for period-over-period comparisons of underlying business trends and our ongoing business performance, however, they should be used in conjunction with GAAP measures. Our non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define similarly named measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. We utilize the following definitions for the non-GAAP financial measures included in this release and have provided a reconciliation of the GAAP to non-GAAP amounts for each measure:

Adjusted Net Income and Adjusted Diluted Earnings Per Share

Adjusted net income and adjusted diluted earnings per share exclude special charges, net of tax. We consider items recorded in special charges, such as enterprise-wide restructuring, certain asset impairment charges, and acquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative of ongoing operations. In addition, we have excluded certain impacts of the enterprise-wide restructuring plan on TRU Simulation + Training Canada Inc. (TRU Canada) that are not included within special charges, but are of a non-recurring nature and are not indicative of ongoing operations. At TRU Canada, an inventory charge is excluded as it relates to the write-down of inventory in connection with an action taken under the restructuring plan. Due to the substantial decline in demand and order cancellations for flight simulators resulting from the impact of the pandemic on the commercial air transportation business, we ceased manufacturing at TRU Canada’s Montreal facility, resulting in the production suspension of its commercial air transport simulators. As a result of this action and market conditions, the related inventory was written down to its net realizable value in the second quarter of 2020. In the first quarter of 2021, TRU Canada was sold and the after-tax gain is excluded as it was incurred in connection with the enterprise-wide restructuring plan.

 

Three Months Ended

 

Six Months Ended

 

 

July 3,
2021

 

July 4,
2020

 

 

 

July 3,
2021

 

 

July 4,
2020

 

Income (Loss) from continuing operations - GAAP

 

$

184

 

 

$

(92

)

 

 

 

$

355

 

 

 

$

(42

)

 

Add: Special charges, net of tax

 

3

 

 

67

 

 

 

 

7

 

 

 

97

 

 

Inventory charge, net of tax

 

 

 

55

 

 

 

 

 

 

 

55

 

 

Less: Gain on disposition, net of tax

 

(2

)

 

 

 

 

 

(17

)

 

 

 

 

Adjusted Net Income - Non-GAAP

 

$

185

 

 

$

30

 

 

 

 

$

345

 

 

 

$

110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from continuing operations - GAAP

 

$

0.81

 

 

$

(0.40

)

 

 

 

$

1.56

 

 

 

$

(0.18

)

 

Add: Special charges, net of tax

 

0.01

 

 

0.29

 

 

 

 

0.03

 

 

 

0.42

 

 

Inventory charge, net of tax

 

 

 

0.24

 

 

 

 

 

 

 

0.24

 

 

Less: Gain on disposition, net of tax

 

(0.01

)

 

 

 

 

 

(0.08

)

 

 

 

 

Adjusted Net Income - Non-GAAP

 

$

0.81

 

 

$

0.13

 

 

 

 

$

1.51

 

 

 

$

0.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021 Outlook

 

 

 

 

 

 

 

Diluted EPS

Net Income - GAAP

 

$

677

 

$

732

 

 

 

$

2.97

 

$

3.21

 

 

Add: Special charges, net of tax (a)

 

25

 

15

 

 

 

0.11

 

0.07

 

 

Less: Gain on disposition, net of tax (b)

 

(17

)

(17

)

 

 

(0.08

)

(0.08

)

 

Adjusted Net Income - Non-GAAP

 

$

685

 

$

730

 

 

 

$

3.00

 

$

3.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

(a)

Special charges, net of tax includes costs we expect to incur in connection with the restructuring plan initiated in 2020.

(b)

Gain on disposition, net of tax includes the gain on the sale of TRU Canada.

 
 

TEXTRON INC.

« Previous Page 1 | 2 | 3 | 4 | 5  Next Page »
Featured Video
Jobs
GIS Specialist for Washington State Department of Natural Resources at Olympia, Washington
Business Technology Analyst for Surface Water Management at Everett, Washington
Business Development Manager for Berntsen International, Inc. at Madison, Wisconsin
Mechanical Manufacturing Engineering Manager for Google at Sunnyvale, California
Machine Learning Engineer 3D Geometry/ Multi-Modal for Autodesk at San Francisco, California
Senior Principal Mechanical Engineer for General Dynamics Mission Systems at Canonsburg, Pennsylvania
Upcoming Events
Dimensions User Conference 2024 at The Venetian Resort Las Vegas NV - Nov 11 - 13, 2024
URISA GIS Leadership Academy at Embassy Suites Fort Worth Downtown 600 Commerce Street Fort Worth, TX - Nov 18 - 22, 2024



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise