| TEXTRON INC.
Revenues by Segment and Reconciliation of Segment Profit to Net Income (Dollars in millions, except per share amounts) (Unaudited) |
|||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
| June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||||
| MANUFACTURING: | |||||||||||||||||||||||||
| Textron Aviation | $ |
1,123 |
|
$ |
1,276 |
|
$ |
2,257 |
|
$ |
2,286 |
|
|||||||||||||
| Bell |
|
771 |
|
|
831 |
|
|
1,510 |
|
|
1,583 |
|
|||||||||||||
| Textron Systems |
|
308 |
|
|
380 |
|
|
615 |
|
|
767 |
|
|||||||||||||
| Industrial |
|
1,009 |
|
|
1,222 |
|
|
1,921 |
|
|
2,353 |
|
|||||||||||||
|
3,211 |
|
|
3,709 |
|
|
6,303 |
|
|
6,989 |
|
||||||||||||||
| FINANCE |
|
16 |
|
|
17 |
|
|
33 |
|
|
33 |
|
|||||||||||||
| Total revenues | $ |
3,227 |
|
$ |
3,726 |
|
$ |
6,336 |
|
$ |
7,022 |
|
|||||||||||||
| SEGMENT PROFIT | |||||||||||||||||||||||||
| MANUFACTURING: | |||||||||||||||||||||||||
| Textron Aviation | $ |
105 |
|
$ |
104 |
|
$ |
211 |
|
$ |
176 |
|
|||||||||||||
| Bell |
|
103 |
|
|
117 |
|
|
207 |
|
|
204 |
|
|||||||||||||
| Textron Systems |
|
49 |
|
|
40 |
|
|
77 |
|
|
90 |
|
|||||||||||||
| Industrial |
|
76 |
|
|
80 |
|
|
126 |
|
|
144 |
|
|||||||||||||
|
|
333 |
|
|
341 |
|
|
621 |
|
|
614 |
|
||||||||||||||
| FINANCE |
|
6 |
|
|
5 |
|
|
12 |
|
|
11 |
|
|||||||||||||
| Segment Profit |
|
339 |
|
|
346 |
|
|
633 |
|
|
625 |
|
|||||||||||||
| Corporate expenses and other, net |
|
(24 |
) |
|
(51 |
) |
|
(71 |
) |
|
(78 |
) |
|||||||||||||
| Interest expense, net for Manufacturing group |
|
(36 |
) |
|
(35 |
) |
|
(71 |
) |
|
(69 |
) |
|||||||||||||
| Income before income taxes |
|
279 |
|
|
260 |
|
|
491 |
|
|
478 |
|
|||||||||||||
| Income tax expense |
|
(62 |
) |
|
(36 |
) |
|
(95 |
) |
|
(65 |
) |
|||||||||||||
| Net income | $ |
217 |
|
$ |
224 |
|
$ |
396 |
|
$ |
413 |
|
|||||||||||||
| Earnings per share: | |||||||||||||||||||||||||
| Net income | $ |
0.93 |
|
$ |
0.87 |
|
$ |
1.69 |
|
$ |
1.59 |
|
|||||||||||||
| Diluted average shares outstanding |
|
233,545,000 |
|
|
257,177,000 |
|
|
234,993,000 |
|
|
260,462,000 |
|
|||||||||||||
| Textron Inc. | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| (In millions) | ||||||||||
| (Unaudited) | ||||||||||
| June 29,
2019 |
December 29,
2018 |
|||||||||
| Assets | ||||||||||
| Cash and equivalents | $ |
|
775 |
$ |
|
987 |
||||
| Accounts receivable, net | 989 |
1,024 |
||||||||
| Inventories | 4,311 |
3,818 |
||||||||
| Other current assets | 839 |
785 |
||||||||
| Net property, plant and equipment | 2,517 |
2,615 |
||||||||
| Goodwill | 2,147 |
2,218 |
||||||||
| Other assets | 2,255 |
1,800 |
||||||||
| Finance group assets | 963 |
1,017 |
||||||||
| Total Assets | $ |
|
14,796 |
$ |
|
14,264 |
||||
| Liabilities and Shareholders' Equity | ||||||||||
| Short-term debt and current portion of long-term debt | $ |
|
457 |
$ |
|
258 |
||||
| Current liabilities | 3,122 |
3,248 |
||||||||
| Other liabilities | 2,157 |
1,932 |
||||||||
| Long-term debt | 2,910 |
2,808 |
||||||||
| Finance group liabilities | 814 |
826 |
||||||||
| Total Liabilities | 9,460 |
9,072 |
||||||||
| Total Shareholders' Equity | 5,336 |
5,192 |
||||||||
| Total Liabilities and Shareholders' Equity | $ |
|
14,796 |
$ |
|
14,264 |
||||
| TEXTRON INC. | ||||||||||||||||||
| MANUFACTURING GROUP | ||||||||||||||||||
| Condensed Schedule of Cash Flows | ||||||||||||||||||
| (In millions) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 29, | June 30, | June 29, | June 30, | |||||||||||||||
| 2019 |
2018 |
2019 |
2018 |
|||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||
| Net income | $ |
212 |
|
$ |
219 |
|
$ |
387 |
|
$ |
398 |
|
||||||
| Depreciation and amortization |
|
99 |
|
|
109 |
|
|
199 |
|
|
212 |
|
||||||
| Changes in working capital |
|
(162 |
) |
|
98 |
|
|
(716 |
) |
|
(278 |
) |
||||||
| Changes in other assets and liabilities and non-cash items |
|
14 |
|
|
42 |
|
|
47 |
|
|
33 |
|
||||||
| Dividends received from TFC |
|
- |
|
|
- |
|
|
50 |
|
|
50 |
|
||||||
| Net cash from operating activities of continuing operations |
|
163 |
|
|
468 |
|
|
(33 |
) |
|
415 |
|
||||||
| Cash flows from investing activities: | ||||||||||||||||||
| Capital expenditures |
|
(76 |
) |
|
(82 |
) |
|
(135 |
) |
|
(159 |
) |
||||||
| Net proceeds from corporate-owned life insurance policies |
|
2 |
|
|
40 |
|
|
4 |
|
|
98 |
|
||||||
| Proceeds from the sale of property, plant and equipment |
|
3 |
|
|
1 |
|
|
4 |
|
|
10 |
|
||||||
| Net cash from investing activities |
|
(71 |
) |
|
(41 |
) |
|
(127 |
) |
|
(51 |
) |
||||||
| Cash flows from financing activities: | ||||||||||||||||||
| Decrease in short-term debt |
|
(100 |
) |
|
(2 |
) |
|
- |
|
|
- |
|
||||||
| Net proceeds from issuance of long-term debt |
|
297 |
|
|
- |
|
|
297 |
|
|
- |
|
||||||
| Purchases of Textron common stock |
|
(159 |
) |
|
(571 |
) |
|
(361 |
) |
|
(915 |
) |
||||||
| Other financing activities, net |
|
5 |
|
|
30 |
|
|
9 |
|
|
33 |
|
||||||
| Net cash from financing activities |
|
43 |
|
|
(543 |
) |
|
(55 |
) |
|
(882 |
) |
||||||
| Total cash flows from continuing operations |
|
135 |
|
|
(116 |
) |
|
(215 |
) |
|
(518 |
) |
||||||
| Total cash flows from discontinued operations |
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
||||||
| Effect of exchange rate changes on cash and equivalents |
|
(5 |
) |
|
(17 |
) |
|
4 |
|
|
(6 |
) |
||||||
| Net change in cash and equivalents |
|
129 |
|
|
(134 |
) |
|
(212 |
) |
|
(525 |
) |
||||||
| Cash and equivalents at beginning of period |
|
646 |
|
|
688 |
|
|
987 |
|
|
1,079 |
|
||||||
| Cash and equivalents at end of period | $ |
775 |
|
$ |
554 |
|
$ |
775 |
|
$ |
554 |
|
||||||
| Manufacturing Cash Flow Before Pension Contributions GAAP to Non-GAAP Reconciliation: | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 29, | June 30, | June 29, | June 30, | |||||||||||||||
| 2019 |
2018 |
2019 |
2018 |
|||||||||||||||
| Net cash from operating activities of continuing operations - GAAP | $ |
163 |
|
$ |
468 |
|
|
(33 |
) |
$ |
415 |
|
||||||
| Less: | Capital expenditures |
|
(76 |
) |
|
(82 |
) |
|
(135 |
) |
|
(159 |
) |
|||||
| Dividends received from TFC |
|
- |
|
|
- |
|
|
(50 |
) |
|
(50 |
) |
||||||
| Plus: | Total pension contributions |
|
12 |
|
|
12 |
|
|
25 |
|
|
25 |
|
|||||
| Proceeds from the sale of property, plant and equipment |
|
3 |
|
|
1 |
|
|
4 |
|
|
10 |
|
||||||
| Manufacturing cash flow before pension contributions - Non-GAAP (a) | $ |
102 |
|
$ |
399 |
|
|
(189 |
) |
$ |
241 |
|
||||||
| (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 | Six Months Ended | ||||||||||||||||||
| June 29, | June 30, | June 29, | June 30, | ||||||||||||||||
| 2019 |
2018 |
2019 |
2018 |
||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||
| Net income | $ |
217 |
|
$ |
224 |
|
$ |
396 |
|
$ |
413 |
|
|||||||
| Depreciation and amortization |
|
100 |
|
|
111 |
|
|
202 |
|
|
216 |
|
|||||||
| Changes in working capital |
|
(174 |
) |
|
105 |
|
|
(703 |
) |
|
(264 |
) |
|||||||
| Changes in other assets and liabilities and non-cash items |
|
13 |
|
|
43 |
|
|
45 |
|
|
33 |
|
|||||||
| Net cash from operating activities of continuing operations |
|
156 |
|
|
483 |
|
|
(60 |
) |
|
398 |
|
|||||||
| Cash flows from investing activities: | |||||||||||||||||||
| Capital expenditures |
|
(76 |
) |
|
(82 |
) |
|
(135 |
) |
|
(159 |
) |
|||||||
| Net proceeds from corporate-owned life insurance policies |
|
2 |
|
|
40 |
|
|
4 |
|
|
98 |
|
|||||||
| Finance receivables repaid |
|
8 |
|
|
9 |
|
|
20 |
|
|
25 |
|
|||||||
| Other investing activities, net |
|
4 |
|
|
21 |
|
|
7 |
|
|
30 |
|
|||||||
| Net cash from investing activities |
|
(62 |
) |
|
(12 |
) |
|
(104 |
) |
|
(6 |
) |
|||||||
| Cash flows from financing activities: | |||||||||||||||||||
| Decrease in short-term debt |
|
(100 |
) |
|
(2 |
) |
|
- |
|
|
- |
|
|||||||
| Net proceeds from issuance of long-term debt |
|
297 |
|
|
- |
|
|
297 |
|
|
- |
|
|||||||
| Principal payments on long-term debt and nonrecourse debt |
|
(16 |
) |
|
(15 |
) |
|
(35 |
) |
|
(34 |
) |
|||||||
| Purchases of Textron common stock |
|
(159 |
) |
|
(571 |
) |
|
(361 |
) |
|
(915 |
) |
|||||||
| Other financing activities, net |
|
5 |
|
|
30 |
|
|
10 |
|
|
33 |
|
|||||||
| Net cash from financing activities |
|
27 |
|
|
(558 |
) |
|
(89 |
) |
|
(916 |
) |
|||||||
| Total cash flows from continuing operations |
|
121 |
|
|
(87 |
) |
|
(253 |
) |
|
(524 |
) |
|||||||
| Total cash flows from discontinued operations |
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
|||||||
| Effect of exchange rate changes on cash and equivalents |
|
(5 |
) |
|
(17 |
) |
|
4 |
|
|
(6 |
) |
|||||||
| Net change in cash and equivalents |
|
115 |
|
|
(105 |
) |
|
(250 |
) |
|
(531 |
) |
|||||||
| Cash and equivalents at beginning of period |
|
742 |
|
|
836 |
|
|
1,107 |
|
|
1,262 |
|
|||||||
| Cash and equivalents at end of period | $ |
857 |
|
$ |
731 |
|
$ |
857 |
|
$ |
731 |
|
|||||||
TEXTRON INC.
