TEXTRON INC. Revenues by Segment and Reconciliation of Segment Profit to Net Income (Dollars in millions, except per share amounts) (Unaudited) |
|||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||
|
September 30,
|
October 1,
|
|
September 30,
|
October 1,
|
||||||||||||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MANUFACTURING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Textron Aviation |
|
$ |
1,338 |
|
|
|
$ |
1,167 |
|
|
|
|
$ |
3,849 |
|
|
|
$ |
3,491 |
|
|
Bell |
|
|
754 |
|
|
|
|
754 |
|
|
|
|
|
2,076 |
|
|
|
|
2,275 |
|
|
Textron Systems |
|
|
309 |
|
|
|
|
292 |
|
|
|
|
|
921 |
|
|
|
|
858 |
|
|
| Industrial |
|
|
922 |
|
|
|
|
849 |
|
|
|
|
|
2,880 |
|
|
|
|
2,558 |
|
|
| Textron eAviation |
|
|
7 |
|
|
|
|
5 |
|
|
|
|
|
22 |
|
|
|
|
10 |
|
|
|
|
|
|
3,330 |
|
|
|
|
3,067 |
|
|
|
|
|
9,748 |
|
|
|
|
9,192 |
|
|
| FINANCE |
|
|
13 |
|
|
|
|
11 |
|
|
|
|
|
43 |
|
|
|
|
41 |
|
|
| Total revenues |
|
$ |
3,343 |
|
|
|
$ |
3,078 |
|
|
|
|
$ |
9,791 |
|
|
|
$ |
9,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| SEGMENT PROFIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| MANUFACTURING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Textron Aviation |
|
$ |
160 |
|
|
|
$ |
131 |
|
|
|
|
$ |
456 |
|
|
|
$ |
390 |
|
|
| Bell |
|
|
77 |
|
|
|
|
74 |
|
|
|
|
|
202 |
|
|
|
|
219 |
|
|
| Textron Systems |
|
|
41 |
|
|
|
|
31 |
|
|
|
|
|
112 |
|
|
|
|
97 |
|
|
| Industrial |
|
|
51 |
|
|
|
|
36 |
|
|
|
|
|
171 |
|
|
|
|
112 |
|
|
| Textron eAviation |
|
|
(19 |
) |
|
|
|
(7 |
) |
|
|
|
|
(40 |
) |
|
|
|
(14 |
) |
|
|
|
|
|
310 |
|
|
|
|
265 |
|
|
|
|
|
901 |
|
|
|
|
804 |
|
|
| FINANCE |
|
|
22 |
|
|
|
|
7 |
|
|
|
|
|
42 |
|
|
|
|
26 |
|
|
| Segment profit (a) |
|
|
332 |
|
|
|
|
272 |
|
|
|
|
|
943 |
|
|
|
|
830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Corporate expenses and other, net |
|
|
(38 |
) |
|
|
|
(21 |
) |
|
|
|
|
(98 |
) |
|
|
|
(93 |
) |
|
| Interest expense, net for Manufacturing group |
|
|
(16 |
) |
|
|
|
(21 |
) |
|
|
|
|
(49 |
) |
|
|
|
(77 |
) |
|
| LIFO inventory provision |
|
|
(26 |
) |
|
|
|
(13 |
) |
|
|
|
|
(86 |
) |
|
|
|
(42 |
) |
|
| Intangible asset amortization |
|
|
(10 |
) |
|
|
|
(13 |
) |
|
|
|
|
(30 |
) |
|
|
|
(39 |
) |
|
| Non-service components of pension and postretirement income, net |
|
|
59 |
|
|
|
|
60 |
|
|
|
|
|
177 |
|
|
|
|
180 |
|
|
| Income from continuing operations before income taxes |
|
|
301 |
|
|
|
|
264 |
|
|
|
|
|
857 |
|
|
|
|
759 |
|
|
| Income tax expense |
|
|
(32 |
) |
|
|
|
(39 |
) |
|
|
|
|
(134 |
) |
|
|
|
(123 |
) |
|
| Income from continuing operations |
|
$ |
269 |
|
|
|
$ |
225 |
|
|
|
|
$ |
723 |
|
|
|
$ |
636 |
|
|
| Discontinued operations, net of income taxes |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
(1 |
) |
|
| Net income |
|
$ |
269 |
|
|
|
$ |
225 |
|
|
|
|
$ |
723 |
|
|
|
$ |
635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations |
|
$ |
1.35 |
|
|
|
$ |
1.06 |
|
|
|
|
$ |
3.56 |
|
|
|
$ |
2.94 |
|
|
| Discontinued operations, net of income taxes |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
— |
|
|
| Diluted earnings per share |
|
$ |
1.35 |
|
|
|
$ |
1.06 |
|
|
|
|
$ |
3.56 |
|
|
|
$ |
2.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Diluted average shares outstanding |
|
|
199,992,000 |
|
|
|
|
213,140,000 |
|
|
|
|
|
203,170,000 |
|
|
|
|
216,468,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations and Diluted earnings per share (EPS) GAAP to Non-GAAP reconciliation: |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
September 30,
|
|
October 1,
|
|
|
September 30,
|
|
October 1,
|
|
||||||||||||
| Income from continuing operations - GAAP |
|
$ |
269 |
|
|
|
$ |
225 |
|
|
|
|
$ |
723 |
|
|
|
$ |
636 |
|
|
| Add: LIFO inventory provision, net of tax |
|
|
20 |
|
|
|
|
10 |
|
|
|
|
|
65 |
|
|
|
|
32 |
|
|
| Intangible asset amortization, net of tax |
|
|
8 |
|
|
|
|
11 |
|
|
|
|
|
23 |
|
|
|
|
30 |
|
|
| Adjusted income from continuing operations - Non-GAAP (a) |
|
$ |
297 |
|
|
|
$ |
246 |
|
|
|
|
$ |
811 |
|
|
|
$ |
698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations - GAAP |
|
$ |
1.35 |
|
|
|
$ |
1.06 |
|
|
|
|
$ |
3.56 |
|
|
|
$ |
2.94 |
|
|
| Add: LIFO inventory provision, net of tax |
|
|
0.10 |
|
|
|
|
0.04 |
|
|
|
|
|
0.32 |
|
|
|
|
0.14 |
|
|
| Intangible asset amortization, net of tax |
|
|
0.04 |
|
|
|
|
0.05 |
|
|
|
|
|
0.11 |
|
|
|
|
0.14 |
|
|
| Adjusted income from continuing operations - Non-GAAP (a) |
|
$ |
1.49 |
|
|
|
$ |
1.15 |
|
|
|
|
$ |
3.99 |
|
|
|
$ |
3.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| (a) | Segment profit, adjusted income from continuing operations 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) |
||||||
|
|
|
|
||||
|
|
September 30,
|
December 31,
|
||||
| Assets |
|
|
||||
| Cash and equivalents |
$ |
1,671 |
|
$ |
1,963 |
|
| Accounts receivable, net |
|
892 |
|
|
855 |
|
| Inventories |
|
4,207 |
|
|
3,550 |
|
| Other current assets |
|
815 |
|
|
1,033 |
|
| Net property, plant and equipment |
|
2,451 |
|
|
2,523 |
|
| Goodwill |
|
2,281 |
|
|
2,283 |
|
| Other assets |
|
3,508 |
|
|
3,422 |
|
| Finance group assets |
|
667 |
|
|
664 |
|
| Total Assets |
$ |
16,492 |
|
$ |
16,293 |
|
|
|
|
|
||||
|
|
|
|
||||
| Liabilities and Shareholders' Equity |
|
|
||||
| Current portion of long-term debt |
$ |
357 |
|
$ |
7 |
|
| Accounts payable |
|
1,216 |
|
|
1,018 |
|
| Other current liabilities |
|
2,814 |
|
|
2,645 |
|
| Other liabilities |
|
1,789 |
|
|
1,879 |
|
| Long-term debt |
|
2,824 |
|
|
3,175 |
|
| Finance group liabilities |
|
425 |
|
456 |
||
| Total Liabilities |
|
9,425 |
|
|
9,180 |
|
|
|
|
|
||||
| Total Shareholders' Equity |
|
7,067 |
|
|
7,113 |
|
| Total Liabilities and Shareholders' Equity |
$ |
16,492 |
|
$ |
16,293 |
|
| TEXTRON INC. MANUFACTURING GROUP Condensed Schedule of Cash Flows (In millions) (Unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
||||||||||||||
|
|
|
September 30,
|
|
|
October 1,
|
|
|
|
September 30,
|
|
|
October 1,
|
|
||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations |
|
$ |
252 |
|
|
|
$ |
220 |
|
|
|
|
$ |
690 |
|
|
|
$ |
615 |
|
|
| Depreciation and amortization |
|
|
99 |
|
|
|
|
96 |
|
|
|
|
|
292 |
|
|
|
|
287 |
|
|
| Deferred income taxes and income taxes receivable/payable |
|
|
(16 |
) |
|
|
|
(48 |
) |
|
|
|
|
(77 |
) |
|
|
|
(126 |
) |
|
| Pension, net |
|
|
(50 |
) |
|
|
|
(40 |
) |
|
|
|
|
(152 |
) |
|
|
|
(123 |
) |
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Accounts receivable, net |
|
|
52 |
|
|
|
|
25 |
|
|
|
|
|
(45 |
) |
|
|
|
(23 |
) |
|
| Inventories |
|
|
(106 |
) |
|
|
|
(107 |
) |
|
|
|
|
(659 |
) |
|
|
|
(353 |
) |
|
| Accounts payable |
|
|
(5 |
) |
|
|
|
92 |
|
|
|
|
|
202 |
|
|
|
|
116 |
|
|
| Other, net |
|
|
44 |
|
|
|
|
118 |
|
|
|
|
|
486 |
|
|
|
|
552 |
|
|
| Net cash from operating activities |
|
|
270 |
|
|
|
|
356 |
|
|
|
|
|
737 |
|
|
|
|
945 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Capital expenditures |
|
|
(79 |
) |
|
|
|
(78 |
) |
|
|
|
|
(224 |
) |
|
|
|
(192 |
) |
|
| Net cash used in business acquisitions |
|
|
(1 |
) |
|
|
|
(3 |
) |
|
|
|
|
(1 |
) |
|
|
|
(201 |
) |
|
| Net proceeds from corporate-owned life insurance policies |
|
|
1 |
|
|
|
|
(2 |
) |
|
|
|
|
39 |
|
|
|
|
23 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
4 |
|
|
|
|
3 |
|
|
|
|
|
4 |
|
|
|
|
21 |
|
|
| Net cash from investing activities |
|
|
(75 |
) |
|
|
|
(80 |
) |
|
|
|
|
(182 |
) |
|
|
|
(349 |
) |
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Decrease in short-term debt |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
(15 |
) |
|
| Principal payments on long-term debt and nonrecourse debt |
|
|
(2 |
) |
|
|
|
(2 |
) |
|
|
|
|
(5 |
) |
|
|
|
(16 |
) |
|
| Purchases of Textron common stock |
|
|
(235 |
) |
|
|
|
(200 |
) |
|
|
|
|
(885 |
) |
|
|
|
(639 |
) |
|
| Dividends paid |
|
|
(4 |
) |
|
|
|
(4 |
) |
|
|
|
|
(12 |
) |
|
|
|
(13 |
) |
|
| Other financing activities, net |
|
|
35 |
|
|
|
|
5 |
|
|
|
|
|
61 |
|
|
|
|
33 |
|
|
| Net cash from financing activities |
|
|
(206 |
) |
|
|
|
(201 |
) |
|
|
|
|
(841 |
) |
|
|
|
(650 |
) |
|
| Total cash flows from continuing operations |
|
|
(11 |
) |
|
|
|
75 |
|
|
|
|
|
(286 |
) |
|
|
|
(54 |
) |
|
| Total cash flows from discontinued operations |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
|
(2 |
) |
|
| Effect of exchange rate changes on cash and equivalents |
|
|
(13 |
) |
|
|
|
(22 |
) |
|
|
|
|
(5 |
) |
|
|
|
(49 |
) |
|
| Net change in cash and equivalents |
|
|
(24 |
) |
|
|
|
53 |
|
|
|
|
|
(292 |
) |
|
|
|
(105 |
) |
|
| Cash and equivalents at beginning of period |
|
|
1,695 |
|
|
|
|
1,764 |
|
|
|
|
|
1,963 |
|
|
|
|
1,922 |
|
|
| Cash and equivalents at end of period |
|
$ |
1,671 |
|
|
|
$ |
1,817 |
|
|
|
|
$ |
1,671 |
|
|
|
$ |
1,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Manufacturing cash flow GAAP to Non-GAAP reconciliation: |
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
|
|
|
Nine Months Ended |
|||||||||||||||
|
|
|
September 30,
|
|
|
October 1,
|
|
|
|
September 30,
|
|
|
October 1,
|
|
||||||||
| Net cash from operating activities - GAAP |
|
$ |
270 |
|
|
|
$ |
356 |
|
|
|
|
$ |
737 |
|
|
|
$ |
945 |
|
|
| Less: Capital expenditures |
|
|
(79 |
) |
|
|
|
(78 |
) |
|
|
|
|
(224 |
) |
|
|
|
(192 |
) |
|
| Add: Total pension contributions |
|
|
10 |
|
|
|
|
11 |
|
|
|
|
|
34 |
|
|
|
|
36 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
4 |
|
|
|
|
3 |
|
|
|
|
|
4 |
|
|
|
|
21 |
|
|
| Manufacturing cash flow before pension contributions - Non-GAAP (a) |
|
$ |
205 |
|
|
|
$ |
292 |
|
|
|
|
$ |
551 |
|
|
|
$ |
810 |
|
|
| (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 |
|
|
Nine Months Ended |
||||||||||||||||
|
|
|
September 30,
|
|
|
October 1,
|
|
|
|
September 30,
|
|
|
October 1,
|
|
||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations |
|
$ |
269 |
|
|
|
$ |
225 |
|
|
|
|
$ |
723 |
|
|
|
$ |
636 |
|
|
| Depreciation and amortization |
|
|
99 |
|
|
|
|
97 |
|
|
|
|
|
292 |
|
|
|
|
288 |
|
|
| Deferred income taxes and income taxes receivable/payable |
|
|
(13 |
) |
|
|
|
(53 |
) |
|
|
|
|
(76 |
) |
|
|
|
(139 |
) |
|
| Pension, net |
|
|
(50 |
) |
|
|
|
(40 |
) |
|
|
|
|
(152 |
) |
|
|
|
(123 |
) |
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Accounts receivable, net |
|
|
52 |
|
|
|
|
25 |
|
|
|
|
|
(45 |
) |
|
|
|
(23 |
) |
|
| Inventories |
|
|
(106 |
) |
|
|
|
(107 |
) |
|
|
|
|
(659 |
) |
|
|
|
(353 |
) |
|
| Accounts payable |
|
|
(5 |
) |
|
|
|
92 |
|
|
|
|
|
202 |
|
|
|
|
116 |
|
|
| Captive finance receivables, net |
|
|
(17 |
) |
|
|
|
(6 |
) |
|
|
|
|
(32 |
) |
|
|
|
29 |
|
|
| Other, net |
|
|
29 |
|
|
|
|
115 |
|
|
|
|
|
465 |
|
|
|
|
532 |
|
|
| Net cash from operating activities |
|
|
258 |
|
|
|
|
348 |
|
|
|
|
|
718 |
|
|
|
|
963 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Capital expenditures |
|
|
(79 |
) |
|
|
|
(78 |
) |
|
|
|
|
(224 |
) |
|
|
|
(192 |
) |
|
| Net cash used in business acquisitions |
|
|
(1 |
) |
|
|
|
(3 |
) |
|
|
|
|
(1 |
) |
|
|
|
(201 |
) |
|
| Net proceeds from corporate-owned life insurance policies |
|
|
1 |
|
|
|
|
(2 |
) |
|
|
|
|
39 |
|
|
|
|
23 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
4 |
|
|
|
|
3 |
|
|
|
|
|
4 |
|
|
|
|
21 |
|
|
| Finance receivables repaid |
|
|
7 |
|
|
|
|
— |
|
|
|
|
|
26 |
|
|
|
|
21 |
|
|
| Other investing activities, net |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
2 |
|
|
|
|
44 |
|
|
| Net cash from investing activities |
|
|
(68 |
) |
|
|
|
(80 |
) |
|
|
|
|
(154 |
) |
|
|
|
(284 |
) |
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Decrease in short-term debt |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
(15 |
) |
|
| Principal payments on long-term debt and nonrecourse debt |
|
|
(7 |
) |
|
|
|
(4 |
) |
|
|
|
|
(41 |
) |
|
|
|
(227 |
) |
|
| Purchases of Textron common stock |
|
|
(235 |
) |
|
|
|
(200 |
) |
|
|
|
|
(885 |
) |
|
|
|
(639 |
) |
|
| Dividends paid |
|
|
(4 |
) |
|
|
|
(4 |
) |
|
|
|
|
(12 |
) |
|
|
|
(13 |
) |
|
| Other financing activities, net |
|
|
35 |
|
|
|
|
5 |
|
|
|
|
|
61 |
|
|
|
|
33 |
|
|
| Net cash from financing activities |
|
|
(211 |
) |
|
|
|
(203 |
) |
|
|
|
|
(877 |
) |
|
|
|
(861 |
) |
|
| Total cash flows from continuing operations |
|
|
(21 |
) |
|
|
|
65 |
|
|
|
|
|
(313 |
) |
|
|
|
(182 |
) |
|
| Total cash flows from discontinued operations |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
|
(2 |
) |
|
| Effect of exchange rate changes on cash and equivalents |
|
|
(13 |
) |
|
|
|
(22 |
) |
|
|
|
|
(5 |
) |
|
|
|
(49 |
) |
|
| Net change in cash and equivalents |
|
|
(34 |
) |
|
|
|
43 |
|
|
|
|
|
(319 |
) |
|
|
|
(233 |
) |
|
| Cash and equivalents at beginning of period |
|
|
1,750 |
|
|
|
|
1,841 |
|
|
|
|
|
2,035 |
|
|
|
|
2,117 |
|
|
| Cash and equivalents at end of period |
|
$ |
1,716 |
|
|
|
$ |
1,884 |
|
|
|
|
$ |
1,716 |
|
|
|
$ |
1,884 |
|
|
TEXTRON INC.
