TEXTRON INC. Revenues by Segment and Reconciliation of Segment Profit to Net Income (Dollars in millions, except per share amounts) (Unaudited) |
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|
Three Months Ended |
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|
April 2,
|
April 3,
|
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REVENUES |
|
|
|
|
|
|
||||
MANUFACTURING: |
|
|
|
|
|
|
||||
Textron Aviation |
|
$ |
1,040 |
|
|
|
$ |
865 |
|
|
Bell |
|
|
834 |
|
|
|
|
846 |
|
|
Textron Systems |
|
|
273 |
|
|
|
|
328 |
|
|
Industrial |
|
|
838 |
|
|
|
|
825 |
|
|
|
|
|
2,985 |
|
|
|
|
2,864 |
|
|
FINANCE |
|
|
16 |
|
|
|
|
15 |
|
|
Total revenues |
|
$ |
3,001 |
|
|
|
$ |
2,879 |
|
|
|
|
|
|
|
|
|
|
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| SEGMENT PROFIT |
|
|
|
|
|
|
||||
| MANUFACTURING: |
|
|
|
|
|
|
||||
| Textron Aviation |
|
$ |
121 |
|
|
|
$ |
47 |
|
|
| Bell |
|
|
98 |
|
|
|
|
105 |
|
|
| Textron Systems |
|
|
33 |
|
|
|
|
51 |
|
|
| Industrial |
|
|
43 |
|
|
|
|
47 |
|
|
|
|
|
|
295 |
|
|
|
|
250 |
|
|
| FINANCE |
|
|
9 |
|
|
|
|
6 |
|
|
| Segment profit |
|
|
304 |
|
|
|
|
256 |
|
|
|
|
|
|
|
|
|
|
||||
| Corporate expenses and other, net |
|
|
(44 |
) |
|
|
|
(40 |
) |
|
| Interest expense, net for Manufacturing group |
|
|
(28 |
) |
|
|
|
(35 |
) |
|
| Special charges (a) |
|
|
— |
|
|
|
|
(6 |
) |
|
| Gain on business disposition (b) |
|
|
— |
|
|
|
|
15 |
|
|
| Income before income taxes |
|
|
232 |
|
|
|
|
190 |
|
|
| Income tax expense |
|
|
(39 |
) |
|
|
|
(19 |
) |
|
| Net income |
|
$ |
193 |
|
|
|
$ |
171 |
|
|
|
|
|
|
|
|
|
|
||||
| Diluted earnings per share |
|
$ |
0.88 |
|
|
|
$ |
0.75 |
|
|
|
|
|
|
|
|
|
|
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| Diluted average shares outstanding |
|
|
219,607,000 |
|
|
|
|
228,284,000 |
|
|
|
|
|
|
|
|
|
|
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| Net income and Diluted earnings per share (EPS) GAAP to Non-GAAP reconciliation for the three months ended April 3, 2021: |
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|
|
|
|
April 3,
|
||||||
| Net income - GAAP |
|
|
|
|
$ |
171 |
|
|
||
| Add: Special charges, net of tax (a) |
|
|
|
|
|
4 |
|
|
||
| Less: Gain on business disposition, net of tax (b) |
|
|
|
|
|
(15 |
) |
|
||
| Adjusted net income - Non-GAAP (c) |
|
|
|
|
$ |
160 |
|
|
||
|
|
|
|
|
|
|
|
||||
| Earnings Per Share: |
|
|
|
|
|
|
||||
| Net income - GAAP |
|
|
|
|
$ |
0.75 |
|
|
||
| Add: Special charges, net of tax (a) |
|
|
|
|
|
0.02 |
|
|
||
| Less: Gain on business disposition, net of tax (b) |
|
|
|
|
|
(0.07 |
) |
|
||
| Adjusted net income - Non-GAAP (c) |
|
|
|
|
$ |
0.70 |
|
|
||
|
|
|
|
|
|
|
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| (a) | In connection with a restructuring plan initiated in the second quarter of 2020, we incurred special charges of $6 million for the three months ended April 3, 2021. | |
| (b) | In January 2021, we completed the sale of TRU Simulation + Training Canada Inc. which resulted in an after-tax gain of $15 million. | |
| (c) | 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) |
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|
|
April 2,
|
January 1,
|
||||||||
| Assets |
|
|
||||||||
| Cash and equivalents |
$ |
1,978 |
$ |
1,922 |
||||||
| Accounts receivable, net |
|
800 |
|
838 |
||||||
| Inventories |
|
3,663 |
|
3,468 |
||||||
| Other current assets |
|
1,055 |
|
1,018 |
||||||
| Net property, plant and equipment |
|
2,488 |
|
2,538 |
||||||
| Goodwill |
|
2,147 |
|
2,149 |
||||||
| Other assets |
|
3,025 |
|
3,027 |
||||||
| Finance group assets |
|
755 |
|
867 |
||||||
| Total Assets |
$ |
15,911 |
$ |
15,827 |
||||||
| Liabilities and Shareholders' Equity |
|
|
||||||||
| Current portion of long-term debt |
$ |
7 |
$ |
6 |
||||||
| Accounts payable |
|
823 |
|
786 |
||||||
| Other current liabilities |
|
2,507 |
|
2,344 |
||||||
| Other liabilities |
|
1,912 |
|
2,005 |
||||||
| Long-term debt |
|
3,178 |
|
3,179 |
||||||
| Finance group liabilities |
|
567 |
|
692 |
||||||
| Total Liabilities |
|
8,994 |
|
9,012 |
||||||
| Total Shareholders' Equity |
|
6,917 |
|
6,815 |
||||||
| Total Liabilities and Shareholders' Equity |
$ |
15,911 |
$ |
15,827 |
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| TEXTRON INC. MANUFACTURING GROUP Condensed Schedule of Cash Flows (In millions) (Unaudited) |
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|
Three Months Ended |
|
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|
|
April 2,
|
April 3,
|
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| Cash Flows from Operating Activities: |
|
|
|
|
|
|
||||
| Net income |
|
$ |
185 |
|
|
|
$ |
177 |
|
|
| Depreciation and amortization |
|
|
93 |
|
|
|
|
88 |
|
|
| Deferred income taxes and income taxes receivable/payable |
|
|
17 |
|
|
|
|
(12 |
) |
|
| Pension, net |
|
|
(41 |
) |
|
|
|
(23 |
) |
|
| Gain on business disposition |
|
|
— |
|
|
|
|
(15 |
) |
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
||||
| Accounts receivable, net |
|
|
37 |
|
|
|
|
(103 |
) |
|
| Inventories |
|
|
(176 |
) |
|
|
|
(178 |
) |
|
| Accounts payable |
|
|
38 |
|
|
|
|
259 |
|
|
| Other, net |
|
|
72 |
|
|
|
|
(86 |
) |
|
| Net cash from operating activities |
|
|
225 |
|
|
|
|
107 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
||||
| Capital expenditures |
|
|
(48 |
) |
|
|
|
(53 |
) |
|
| Proceeds from sale of property, plant and equipment |
|
|
18 |
|
|
|
|
— |
|
|
| Net proceeds from business disposition |
|
|
— |
|
|
|
|
39 |
|
|
| Other investing activities, net |
|
|
2 |
|
|
|
|
— |
|
|
| Net cash from investing activities |
|
|
(28 |
) |
|
|
|
(14 |
) |
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
||||
| Principal payments on long-term debt and nonrecourse debt |
|
|
(2 |
) |
|
|
|
(267 |
) |
|
| Purchases of Textron common stock |
|
|
(157 |
) |
|
|
|
(91 |
) |
|
| Dividends paid |
|
|
(5 |
) |
|
|
|
(5 |
) |
|
| Other financing activities, net |
|
|
25 |
|
|
|
|
24 |
|
|
| Net cash from financing activities |
|
|
(139 |
) |
|
|
|
(339 |
) |
|
| Total cash flows from continuing operations |
|
|
58 |
|
|
|
|
(246 |
) |
|
| Effect of exchange rate changes on cash and equivalents |
|
|
(2 |
) |
|
|
|
(3 |
) |
|
| Net change in cash and equivalents |
|
|
56 |
|
|
|
|
(249 |
) |
|
| Cash and equivalents at beginning of period |
|
|
1,922 |
|
|
|
|
2,146 |
|
|
| Cash and equivalents at end of period |
|
$ |
1,978 |
|
|
|
$ |
1,897 |
|
|
|
|
|
|
|
|
|
|
||||
| Manufacturing cash flow GAAP to Non-GAAP reconciliation: |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
|
|
|
Three Months Ended |
||||||||
|
|
April 2,
|
April 3,
|
||||||||
| Net cash from operating activities - GAAP |
|
$ |
225 |
|
|
|
$ |
107 |
|
|
| Less: Capital expenditures |
|
|
(48 |
) |
|
|
|
(53 |
) |
|
| Add: Total pension contributions |
|
|
14 |
|
|
|
|
17 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
18 |
|
|
|
|
— |
|
|
| Manufacturing cash flow before pension contributions - Non-GAAP (a) |
|
$ |
209 |
|
|
|
$ |
71 |
|
|
| (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) |
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|
|
|
Three Months Ended |
||||||||
|
|
April 2,
|
April 3,
|
||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
||||
| Net income |
|
$ |
193 |
|
|
|
$ |
171 |
|
|
| Depreciation and amortization |
|
|
93 |
|
|
|
|
90 |
|
|
| Deferred income taxes and income taxes receivable/payable |
|
|
19 |
|
|
|
|
— |
|
|
| Pension, net |
|
|
(41 |
) |
|
|
|
(23 |
) |
|
| Gain on business disposition |
|
|
— |
|
|
|
|
(15 |
) |
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
||||
| Accounts receivable, net |
|
|
37 |
|
|
|
|
(103 |
) |
|
| Inventories |
|
|
(176 |
) |
|
|
|
(178 |
) |
|
| Accounts payable |
|
|
38 |
|
|
|
|
259 |
|
|
| Captive finance receivables, net |
|
|
18 |
|
|
|
|
69 |
|
|
| Other, net |
|
|
60 |
|
|
|
|
(89 |
) |
|
| Net cash from operating activities |
|
|
241 |
|
|
|
|
181 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
||||
| Capital expenditures |
|
|
(48 |
) |
|
|
|
(53 |
) |
|
| Proceeds from sale of property, plant and equipment |
|
|
18 |
|
|
|
|
— |
|
|
| Net proceeds from business disposition |
|
|
— |
|
|
|
|
39 |
|
|
| Finance receivables repaid |
|
|
13 |
|
|
|
|
13 |
|
|
| Other investing activities, net |
|
|
45 |
|
|
|
|
6 |
|
|
| Net cash from investing activities |
|
|
28 |
|
|
|
|
5 |
|
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
||||
| Principal payments on long-term debt and nonrecourse debt |
|
|
(121 |
) |
|
|
|
(287 |
) |
|
| Purchases of Textron common stock |
|
|
(157 |
) |
|
|
|
(91 |
) |
|
| Dividends paid |
|
|
(5 |
) |
|
|
|
(5 |
) |
|
| Other financing activities, net |
|
|
25 |
|
|
|
|
24 |
|
|
| Net cash from financing activities |
|
|
(258 |
) |
|
|
|
(359 |
) |
|
| Total cash flows from continuing operations |
|
|
11 |
|
|
|
|
(173 |
) |
|
| Total cash flows from discontinued operations |
|
|
— |
|
|
|
|
— |
|
|
| Effect of exchange rate changes on cash and equivalents |
|
|
(2 |
) |
|
|
|
(3 |
) |
|
| Net change in cash and equivalents |
|
|
9 |
|
|
|
|
(176 |
) |
|
| Cash and equivalents at beginning of period |
|
|
2,117 |
|
|
|
|
2,254 |
|
|
| Cash and equivalents at end of period |
|
$ |
2,126 |
|
|
|
$ |
2,078 |
|
|
TEXTRON INC.
