| 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 28,
2019 |
September 29,
2018 |
September 28,
2019 |
September 29,
2018 |
||||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||||
| MANUFACTURING: | |||||||||||||||||||||||||
| Textron Aviation | $ |
1,201 |
|
$ |
1,133 |
|
$ |
3,458 |
|
$ |
3,419 |
|
|||||||||||||
| Bell |
|
783 |
|
|
770 |
|
|
2,293 |
|
|
2,353 |
|
|||||||||||||
| Textron Systems |
|
311 |
|
|
352 |
|
|
926 |
|
|
1,119 |
|
|||||||||||||
| Industrial |
|
950 |
|
|
930 |
|
|
2,871 |
|
|
3,283 |
|
|||||||||||||
|
|
3,245 |
|
|
3,185 |
|
|
9,548 |
|
|
10,174 |
|
||||||||||||||
| FINANCE |
|
14 |
|
|
15 |
|
|
47 |
|
|
48 |
|
|||||||||||||
| Total revenues | $ |
3,259 |
|
$ |
3,200 |
|
$ |
9,595 |
|
$ |
10,222 |
|
|||||||||||||
| SEGMENT PROFIT | |||||||||||||||||||||||||
| MANUFACTURING: | |||||||||||||||||||||||||
| Textron Aviation | $ |
104 |
|
$ |
99 |
|
$ |
315 |
|
$ |
275 |
|
|||||||||||||
| Bell |
|
110 |
|
|
113 |
|
|
317 |
|
|
317 |
|
|||||||||||||
| Textron Systems |
|
31 |
|
|
29 |
|
|
108 |
|
|
119 |
|
|||||||||||||
| Industrial |
|
47 |
|
|
1 |
|
|
173 |
|
|
145 |
|
|||||||||||||
|
|
292 |
|
|
242 |
|
|
913 |
|
|
856 |
|
||||||||||||||
| FINANCE |
|
5 |
|
|
3 |
|
|
17 |
|
|
14 |
|
|||||||||||||
| Segment Profit |
|
297 |
|
|
245 |
|
|
930 |
|
|
870 |
|
|||||||||||||
| Corporate expenses and other, net |
|
(17 |
) |
|
(29 |
) |
|
(88 |
) |
|
(107 |
) |
|||||||||||||
| Interest expense, net for Manufacturing group |
|
(39 |
) |
|
(32 |
) |
|
(110 |
) |
|
(101 |
) |
|||||||||||||
| Gain on business disposition (a) |
|
- |
|
|
444 |
|
|
- |
|
|
444 |
|
|||||||||||||
| Income before income taxes |
|
241 |
|
|
628 |
|
|
732 |
|
|
1,106 |
|
|||||||||||||
| Income tax expense |
|
(21 |
) |
|
(65 |
) |
|
(116 |
) |
|
(130 |
) |
|||||||||||||
| Net Income | $ |
220 |
|
$ |
563 |
|
$ |
616 |
|
$ |
976 |
|
|||||||||||||
| Earnings Per Share (EPS) | $ |
0.95 |
|
$ |
2.26 |
|
$ |
2.64 |
|
$ |
3.80 |
|
|||||||||||||
| Diluted average shares outstanding |
|
231,097,000 |
|
|
249,378,000 |
|
|
233,689,000 |
|
|
256,780,000 |
|
|||||||||||||
| Net Income and Diluted Earnings Per Share GAAP to Non-GAAP Reconciliation: | |||||||||||||||||||||||||
| Three Months Ended
September 29, 2018 |
Nine Months Ended
September 29, 2018 |
||||||||||||||||||||||||
| Diluted EPS | Diluted EPS | ||||||||||||||||||||||||
| Net income - GAAP | $ |
563 |
|
$ |
2.26 |
|
$ |
976 |
|
$ |
3.80 |
|
|||||||||||||
| Gain on business disposition, net of taxes of $34 million |
|
(410 |
) |
|
(1.65 |
) |
|
(410 |
) |
|
(1.60 |
) |
|||||||||||||
| Adjusted net income - Non-GAAP (b) | $ |
153 |
|
$ |
0.61 |
|
$ |
566 |
|
$ |
2.20 |
|
|||||||||||||
| (a) | On July 2, 2018, Textron completed the sale of the Tools & Test Equipment product line and recorded an after-tax gain of $410 million, subject to post-closing adjustments. | |||||||||||||||
| (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) | |||||||||
| September 28,
2019 |
December 29,
2018 |
||||||||
| Assets | |||||||||
| Cash and equivalents | $ |
931 |
|
$ |
987 |
|
|||
| Accounts receivable, net | 1,018 |
|
1,024 |
|
|||||
| Inventories | 4,436 |
|
3,818 |
|
|||||
| Other current assets | 856 |
|
785 |
|
|||||
| Net property, plant and equipment | 2,497 |
|
2,615 |
|
|||||
| Goodwill | 2,142 |
|
2,218 |
|
|||||
| Other assets | 2,225 |
|
1,800 |
|
|||||
| Finance group assets | 957 |
|
1,017 |
|
|||||
| Total Assets | $ |
15,062 |
|
$ |
14,264 |
|
|||
| Liabilities and Shareholders' Equity | |||||||||
| Short-term debt and current portion of long-term debt | $ |
568 |
|
$ |
258 |
|
|||
| Current liabilities | 3,198 |
|
3,248 |
|
|||||
| Other liabilities | 2,130 |
|
1,932 |
|
|||||
| Long-term debt | 2,909 |
|
2,808 |
|
|||||
| Finance group liabilities | 805 |
|
826 |
|
|||||
| Total Liabilities | 9,610 |
|
9,072 |
|
|||||
| Total Shareholders' Equity | 5,452 |
|
5,192 |
|
|||||
| Total Liabilities and Shareholders' Equity | $ |
15,062 |
$ |
14,264 |
|||||
| TEXTRON INC. MANUFACTURING GROUP Condensed Schedule of Cash Flows (In millions) (Unaudited) |
|||||||||||||||||
| Three Months Ended |
|
Nine Months Ended |
|||||||||||||||
|
September 28,
|
September 29,
|
|
September 28,
|
September 29,
|
|||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ |
216 |
|
$ |
561 |
|
$ |
603 |
|
$ |
959 |
|
|||||
| Depreciation and amortization |
|
98 |
|
|
104 |
|
|
297 |
|
|
316 |
|
|||||
| Changes in working capital |
|
(124 |
) |
|
74 |
|
|
(840 |
) |
|
(204 |
) |
|||||
| Changes in other assets and liabilities and non-cash items |
|
48 |
|
|
24 |
|
|
95 |
|
|
57 |
|
|||||
| Gain on business disposition |
|
- |
|
|
(444 |
) |
|
- |
|
|
(444 |
) |
|||||
| Dividends received from TFC |
|
- |
|
|
- |
|
|
50 |
|
|
50 |
|
|||||
| Net cash from operating activities of continuing operations |
|
238 |
|
|
319 |
|
|
205 |
|
|
734 |
|
|||||
| Cash flows from investing activities: | |||||||||||||||||
| Capital expenditures |
|
(81 |
) |
|
(74 |
) |
|
(216 |
) |
|
(233 |
) |
|||||
| Net proceeds from business disposition |
|
- |
|
|
807 |
|
|
- |
|
|
807 |
|
|||||
| Net proceeds from corporate-owned life insurance policies |
|
- |
|
|
- |
|
|
4 |
|
|
98 |
|
|||||
| Proceeds from the sale of property, plant and equipment |
|
2 |
|
|
2 |
|
|
6 |
|
|
12 |
|
|||||
| Other investing activities, net |
|
- |
|
|
(3 |
) |
|
- |
|
|
(3 |
) |
|||||
| Net cash from investing activities |
|
(79 |
) |
|
732 |
|
|
(206 |
) |
|
681 |
|
|||||
| Cash flows from financing activities: | |||||||||||||||||
| Increase in short-term debt |
|
118 |
|
|
- |
|
|
118 |
|
|
- |
|
|||||
| Net proceeds from issuance of long-term debt |
|
- |
|
|
- |
|
|
297 |
|
|
- |
|
|||||
| Purchases of Textron common stock |
|
(109 |
) |
|
(468 |
) |
|
(470 |
) |
|
(1,383 |
) |
|||||
| Other financing activities, net |
|
(1 |
) |
|
16 |
|
|
8 |
|
|
49 |
|
|||||
| Net cash from financing activities |
|
8 |
|
|
(452 |
) |
|
(47 |
) |
|
(1,334 |
) |
|||||
| Total cash flows from continuing operations |
|
167 |
|
|
599 |
|
|
(48 |
) |
|
81 |
|
|||||
| Total cash flows from discontinued operations |
|
(1 |
) |
|
- |
|
|
(2 |
) |
|
(1 |
) |
|||||
| Effect of exchange rate changes on cash and equivalents |
|
(10 |
) |
|
(3 |
) |
|
(6 |
) |
|
(9 |
) |
|||||
| Net change in cash and equivalents |
|
156 |
|
|
596 |
|
|
(56 |
) |
|
71 |
|
|||||
| Cash and equivalents at beginning of period |
|
775 |
|
|
554 |
|
|
987 |
|
|
1,079 |
|
|||||
| Cash and equivalents at end of period | $ |
931 |
|
$ |
1,150 |
|
$ |
931 |
|
$ |
1,150 |
|
|||||
| Manufacturing Cash Flow GAAP to Non-GAAP Reconciliation: | |||||||||||||||||
| Three Months Ended |
|
Nine Months Ended |
|||||||||||||||
|
September 28,
|
September 29,
|
|
September 28,
|
September 29,
|
|||||||||||||
| Net cash from operating activities of continuing operations - GAAP | $ |
238 |
|
$ |
319 |
|
$ |
205 |
|
$ |
734 |
|
|||||
| Less: | Capital expenditures |
|
(81 |
) |
|
(74 |
) |
|
(216 |
) |
|
(233 |
) |
||||
| Dividends received from TFC |
|
- |
|
|
- |
|
|
(50 |
) |
|
(50 |
) |
|||||
| Plus: | Total pension contributions |
|
11 |
|
|
12 |
|
|
36 |
|
|
37 |
|
||||
| Taxes paid on gain on business disposition |
|
11 |
|
|
- |
|
|
11 |
|
|
- |
|
|||||
| Proceeds from the sale of property, plant and equipment |
|
2 |
|
|
2 |
|
|
6 |
|
|
12 |
|
|||||
| Manufacturing cash flow before pension contributions - Non-GAAP (a) | $ |
181 |
|
$ |
259 |
|
$ |
(8 |
) |
$ |
500 |
|
|||||
| (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 28,
|
September 29,
|
|
September 28,
|
September 29,
|
|||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net Income | $ |
220 |
|
$ |
563 |
|
$ |
616 |
|
$ |
976 |
|
|||||
| Depreciation and amortization |
|
100 |
|
|
106 |
|
|
302 |
|
|
322 |
|
|||||
| Changes in working capital |
|
(84 |
) |
|
50 |
|
|
(787 |
) |
|
(214 |
) |
|||||
| Changes in other assets and liabilities and non-cash items |
|
49 |
|
|
24 |
|
|
94 |
|
|
57 |
|
|||||
| Gain on business disposition |
|
- |
|
|
(444 |
) |
|
- |
|
|
(444 |
) |
|||||
| Net cash from operating activities of continuing operations |
|
285 |
|
|
299 |
|
|
225 |
|
|
697 |
|
|||||
| Cash flows from investing activities: | |||||||||||||||||
| Capital expenditures |
|
(81 |
) |
|
(74 |
) |
|
(216 |
) |
|
(233 |
) |
|||||
| Net proceeds from business disposition |
|
- |
|
|
807 |
|
|
- |
|
|
807 |
|
|||||
| Net proceeds from corporate-owned life insurance policies |
|
- |
|
|
- |
|
|
4 |
|
|
98 |
|
|||||
| Finance receivables repaid |
|
- |
|
|
- |
|
|
20 |
|
|
25 |
|
|||||
| Other investing activities, net |
|
2 |
|
|
7 |
|
|
9 |
|
|
37 |
|
|||||
| Net cash from investing activities |
|
(79 |
) |
|
740 |
|
|
(183 |
) |
|
734 |
|
|||||
| Cash flows from financing activities: | |||||||||||||||||
| Increase in short-term debt |
|
118 |
|
|
- |
|
|
118 |
|
|
- |
|
|||||
| Net proceeds from issuance of long-term debt |
|
- |
|
|
- |
|
|
297 |
|
|
- |
|
|||||
| Principal payments on long-term debt and nonrecourse debt |
|
(7 |
) |
|
(23 |
) |
|
(42 |
) |
|
(60 |
) |
|||||
| Purchases of Textron common stock |
|
(109 |
) |
|
(468 |
) |
|
(470 |
) |
|
(1,383 |
) |
|||||
| Other financing activities, net |
|
(1 |
) |
|
17 |
|
|
9 |
|
|
53 |
|
|||||
| Net cash from financing activities |
|
1 |
|
|
(474 |
) |
|
(88 |
) |
|
(1,390 |
) |
|||||
| Total cash flows from continuing operations |
|
207 |
|
|
565 |
|
|
(46 |
) |
|
41 |
|
|||||
| Total cash flows from discontinued operations |
|
(1 |
) |
|
- |
|
|
(2 |
) |
|
(1 |
) |
|||||
| Effect of exchange rate changes on cash and equivalents |
|
(10 |
) |
|
(3 |
) |
|
(6 |
) |
|
(9 |
) |
|||||
| Net change in cash and equivalents |
|
196 |
|
|
562 |
|
|
(54 |
) |
|
31 |
|
|||||
| Cash and equivalents at beginning of period |
|
857 |
|
|
731 |
|
|
1,107 |
|
|
1,262 |
|
|||||
| Cash and equivalents at end of period | $ |
1,053 |
|
$ |
1,293 |
|
$ |
1,053 |
|
$ |
1,293 |
|
|||||
TEXTRON INC.
