TEXTRON INC.
|
|||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||
|
July 2,
|
July 3,
|
|
July 2,
|
July 3,
|
||||||||
REVENUES |
|
|
|
|
|
||||||||
MANUFACTURING: |
|
|
|
|
|
||||||||
Textron Aviation |
$ |
1,284 |
|
$ |
1,161 |
|
|
$ |
2,324 |
|
$ |
2,026 |
|
Bell |
|
687 |
|
|
891 |
|
|
|
1,521 |
|
|
1,737 |
|
Textron Systems |
|
293 |
|
|
333 |
|
|
|
566 |
|
|
661 |
|
Industrial |
|
871 |
|
|
794 |
|
|
|
1,709 |
|
|
1,619 |
|
Textron eAviation (a) |
|
5 |
|
|
— |
|
|
|
5 |
|
|
— |
|
|
|
|
3,140 |
|
|
3,179 |
|
|
|
6,125 |
|
|
6,043 |
|
| FINANCE |
|
14 |
|
|
12 |
|
|
|
30 |
|
|
27 |
|
| Total revenues |
$ |
3,154 |
|
$ |
3,191 |
|
|
$ |
6,155 |
|
$ |
6,070 |
|
|
|
|
|
|
|
|
||||||||
| SEGMENT PROFIT |
|
|
|
|
|
||||||||
| MANUFACTURING: |
|
|
|
|
|
||||||||
| Textron Aviation |
$ |
155 |
|
$ |
96 |
|
|
$ |
276 |
|
$ |
143 |
|
| Bell |
|
63 |
|
|
110 |
|
|
|
161 |
|
|
215 |
|
| Textron Systems |
|
42 |
|
|
48 |
|
|
|
75 |
|
|
99 |
|
| Industrial |
|
41 |
|
|
32 |
|
|
|
84 |
|
|
79 |
|
| Textron eAviation (a) |
|
(8 |
) |
|
— |
|
|
|
(8 |
) |
|
— |
|
|
|
|
293 |
|
|
286 |
|
|
|
588 |
|
|
536 |
|
| FINANCE |
|
10 |
|
|
3 |
|
|
|
19 |
|
|
9 |
|
| Segment profit |
|
303 |
|
|
289 |
|
|
|
607 |
|
|
545 |
|
|
|
|
|
|
|
|
||||||||
| Corporate expenses and other, net |
|
(12 |
) |
|
(37 |
) |
|
|
(56 |
) |
|
(77 |
) |
| Interest expense, net for Manufacturing group |
|
(28 |
) |
|
(32 |
) |
|
|
(56 |
) |
|
(67 |
) |
| Special charges (b) |
|
— |
|
|
(4 |
) |
|
|
— |
|
|
(10 |
) |
| Gain on business disposition (c) |
|
— |
|
|
2 |
|
|
|
— |
|
|
17 |
|
| Income before income taxes |
|
263 |
|
|
218 |
|
|
|
495 |
|
|
408 |
|
| Income tax expense |
|
(45 |
) |
|
(34 |
) |
|
|
(84 |
) |
|
(53 |
) |
| Income from continuing operations |
$ |
218 |
|
$ |
184 |
|
|
$ |
411 |
|
$ |
355 |
|
| Discontinued operations, net of income taxes |
|
(1 |
) |
|
(1 |
) |
|
|
(1 |
) |
|
(1 |
) |
| Net income |
$ |
217 |
|
$ |
183 |
|
|
$ |
410 |
|
$ |
354 |
|
|
|
|
|
|
|
|
||||||||
| Earnings Per Share: |
|
|
|
|
|
||||||||
| Income from continuing operations |
$ |
1.00 |
|
$ |
0.81 |
|
|
$ |
1.88 |
|
$ |
1.56 |
|
| Discontinued operations, net of income taxes |
|
— |
|
|
(0.01 |
) |
|
|
— |
|
|
(0.01 |
) |
| Earnings per share |
$ |
1.00 |
|
$ |
0.80 |
|
|
$ |
1.88 |
|
$ |
1.55 |
|
|
|
|
|
|
|
|
||||||||
| Diluted average shares outstanding |
|
216,658,000 |
|
|
228,446,000 |
|
|
|
218,133,000 |
|
|
228,296,000 |
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations and Diluted earnings per share (EPS) GAAP to Non-GAAP reconciliation for the three and six months ended July 3, 2021: |
|||||||||||||
|
|
|
|
|
|
|
||||||||
|
|
|
July 3,
|
|
|
July 3,
|
||||||||
| Income from continuing operations - GAAP |
|
$ |
184 |
|
|
|
$ |
355 |
|
||||
| Add: Special charges, net of tax (b) |
|
|
3 |
|
|
|
|
7 |
|
||||
| Less: Gain on business disposition, net of tax (c) |
|
|
(2 |
) |
|
|
|
(17 |
) |
||||
| Adjusted income from continuing operations - Non-GAAP (d) |
|
$ |
185 |
|
|
|
$ |
345 |
|
||||
|
|
|
|
|
|
|
||||||||
| Earnings Per Share: |
|
|
|
|
|
||||||||
| Income from continuing operations - GAAP |
|
$ |
0.81 |
|
|
|
$ |
1.56 |
|
||||
| Add: Special charges, net of tax (b) |
|
|
0.01 |
|
|
|
|
0.03 |
|
||||
| Less: Gain on business disposition, net of tax (c) |
|
|
(0.01 |
) |
|
|
|
(0.08 |
) |
||||
| Adjusted income from continuing operations - Non-GAAP (d) |
|
$ |
0.81 |
|
|
|
$ |
1.51 |
|
||||
|
|
|
|
|
|
|
||||||||
| (a) |
|
On April 15, 2022, we acquired Pipistrel, a manufacturer of electrically powered aircraft. Beginning in the second quarter of 2022, we formed a new reporting segment, Textron eAviation, which combines the operating results of Pipistrel along with other research and development initiatives related to sustainable aviation solutions. |
| (b) |
|
In connection with a restructuring plan initiated in the second quarter of 2020, we incurred special charges of $4 million and $10 million for the three and six months ended July 3, 2021. |
| (c) |
|
In January 2021, we completed the sale of TRU Simulation + Training Canada Inc. which resulted in an after-tax gain of $17 million. |
| (d) |
|
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.
|
||||||
|
|
|
|
||||
|
|
July 2,
|
January 1,
|
||||
| Assets |
|
|
||||
| Cash and equivalents |
$ |
1,764 |
|
$ |
1,922 |
|
| Accounts receivable, net |
|
876 |
|
838 |
||
| Inventories |
|
3,739 |
|
|
3,468 |
|
| Other current assets |
|
972 |
|
|
1,018 |
|
| Net property, plant and equipment |
|
2,469 |
|
|
2,538 |
|
| Goodwill |
|
2,278 |
|
|
2,149 |
|
| Other assets |
|
3,113 |
|
|
3,027 |
|
| Finance group assets |
|
668 |
|
|
867 |
|
| Total Assets |
$ |
15,879 |
|
$ |
15,827 |
|
|
|
|
|
||||
|
|
|
|
||||
| Liabilities and Shareholders' Equity |
|
|
||||
| Current portion of long-term debt |
$ |
7 |
|
$ |
6 |
|
| Accounts payable |
|
807 |
|
|
786 |
|
| Other current liabilities |
|
2,660 |
|
|
2,344 |
|
| Other liabilities |
|
1,956 |
|
|
2,005 |
|
| Long-term debt |
|
3,177 |
|
|
3,179 |
|
| Finance group liabilities |
|
471 |
|
|
692 |
|
| Total Liabilities |
|
9,078 |
|
|
9,012 |
|
|
|
|
|
||||
| Total Shareholders' Equity |
|
6,801 |
|
|
6,815 |
|
| Total Liabilities and Shareholders' Equity |
$ |
15,879 |
|
$ |
15,827 |
|
|
TEXTRON INC.
|
|||||||||||||
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||
|
|
July 2,
|
July 3,
|
|
July 2,
|
July 3,
|
||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
||||||||
| Income from continuing operations |
$ |
210 |
|
$ |
181 |
|
|
$ |
395 |
|
$ |
358 |
|
| Depreciation and amortization |
|
98 |
|
|
95 |
|
|
|
191 |
|
|
183 |
|
| Deferred income taxes and income taxes receivable/payable |
|
(95 |
) |
|
30 |
|
|
|
(78 |
) |
|
18 |
|
| Pension, net |
|
(42 |
) |
|
(19 |
) |
|
|
(83 |
) |
|
(42 |
) |
| Gain on business disposition |
|
— |
|
|
(2 |
) |
|
|
— |
|
|
(17 |
) |
| Changes in assets and liabilities: |
|
|
|
|
|
||||||||
| Accounts receivable, net |
|
(85 |
) |
|
65 |
|
|
|
(48 |
) |
|
(38 |
) |
| Inventories |
|
(70 |
) |
|
16 |
|
|
|
(246 |
) |
|
(162 |
) |
| Accounts payable |
|
(14 |
) |
|
(71 |
) |
|
|
24 |
|
|
188 |
|
| Other, net |
|
362 |
|
|
277 |
|
|
|
434 |
|
|
191 |
|
| Net cash from operating activities |
|
364 |
|
|
572 |
|
|
|
589 |
|
|
679 |
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
||||||||
| Capital expenditures |
|
(66 |
) |
|
(75 |
) |
|
|
(114 |
) |
|
(128 |
) |
| Net cash used in business acquisitions |
|
(198 |
) |
|
— |
|
|
|
(198 |
) |
|
— |
|
| Net proceeds from corporate-owned life insurance policies |
|
23 |
|
|
— |
|
|
|
25 |
|
|
— |
|
| Proceeds from sale of property, plant and equipment |
|
— |
|
|
— |
|
|
|
18 |
|
|
— |
|
| Net proceeds from business disposition |
|
— |
|
|
(1 |
) |
|
|
— |
|
|
38 |
|
| Net cash from investing activities |
|
(241 |
) |
|
(76 |
) |
|
|
(269 |
) |
|
(90 |
) |
| Cash Flows from Financing Activities: |
|
|
|
|
|
||||||||
| Decrease in short-term debt |
|
(15 |
) |
|
— |
|
|
|
(15 |
) |
|
— |
|
| Principal payments on long-term debt and nonrecourse debt |
|
(12 |
) |
|
(252 |
) |
|
|
(14 |
) |
|
(519 |
) |
| Purchases of Textron common stock |
|
(282 |
) |
|
(196 |
) |
|
|
(439 |
) |
|
(287 |
) |
| Dividends paid |
|
(4 |
) |
|
(4 |
) |
|
|
(9 |
) |
|
(9 |
) |
| Other financing activities, net |
|
3 |
|
|
51 |
|
|
|
28 |
|
|
75 |
|
| Net cash from financing activities |
|
(310 |
) |
|
(401 |
) |
|
|
(449 |
) |
|
(740 |
) |
| Total cash flows from continuing operations |
|
(187 |
) |
|
95 |
|
|
|
(129 |
) |
|
(151 |
) |
| Total cash flows from discontinued operations |
|
(2 |
) |
|
(1 |
) |
|
|
(2 |
) |
|
(1 |
) |
| Effect of exchange rate changes on cash and equivalents |
|
(25 |
) |
|
4 |
|
|
|
(27 |
) |
|
1 |
|
| Net change in cash and equivalents |
|
(214 |
) |
|
98 |
|
|
|
(158 |
) |
|
(151 |
) |
| Cash and equivalents at beginning of period |
|
1,978 |
|
|
1,897 |
|
|
|
1,922 |
|
|
2,146 |
|
| Cash and equivalents at end of period |
$ |
1,764 |
|
$ |
1,995 |
|
|
$ |
1,764 |
|
$ |
1,995 |
|
|
|
|
|
|
|
|
||||||||
| Manufacturing cash flow GAAP to Non-GAAP reconciliation: |
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||
|
|
July 2,
|
July 3,
|
|
July 2,
|
July 3,
|
||||||||
| Net cash from operating activities - GAAP |
$ |
364 |
|
$ |
572 |
|
|
$ |
589 |
|
$ |
679 |
|
| Less: Capital expenditures |
|
(66 |
) |
|
(75 |
) |
|
|
(114 |
) |
|
(128 |
) |
| Add: Total pension contributions |
|
11 |
|
|
12 |
|
|
|
25 |
|
|
29 |
|
| Proceeds from sale of property, plant and equipment |
|
— |
|
|
— |
|
|
|
18 |
|
|
— |
|
| Manufacturing cash flow before pension contributions - Non-GAAP (a) |
$ |
309 |
|
$ |
509 |
|
|
$ |
518 |
|
$ |
580 |
|
| (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.
|
|||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||
|
|
July 2,
|
July 3,
|
|
July 2,
|
July 3,
|
||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
||||||||
| Income from continuing operations |
$ |
218 |
|
$ |
184 |
|
|
$ |
411 |
|
$ |
355 |
|
| Depreciation and amortization |
|
98 |
|
|
98 |
|
|
|
191 |
|
|
188 |
|
| Deferred income taxes and income taxes receivable/payable |
|
(105 |
) |
|
24 |
|
|
|
(86 |
) |
|
24 |
|
| Pension, net |
|
(42 |
) |
|
(19 |
) |
|
|
(83 |
) |
|
(42 |
) |
| Gain on business disposition |
|
— |
|
|
(2 |
) |
|
|
— |
|
|
(17 |
) |
| Changes in assets and liabilities: |
|
|
|
|
|
||||||||
| Accounts receivable, net |
|
(85 |
) |
|
65 |
|
|
|
(48 |
) |
|
(38 |
) |
| Inventories |
|
(70 |
) |
|
16 |
|
|
|
(246 |
) |
|
(162 |
) |
| Accounts payable |
|
(14 |
) |
|
(71 |
) |
|
|
24 |
|
|
188 |
|
| Captive finance receivables, net |
|
17 |
|
|
20 |
|
|
|
35 |
|
|
89 |
|
| Other, net |
|
361 |
|
|
277 |
|
|
|
421 |
|
|
188 |
|
| Net cash from operating activities |
|
378 |
|
|
592 |
|
|
|
619 |
|
|
773 |
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
||||||||
| Capital expenditures |
|
(66 |
) |
|
(75 |
) |
|
|
(114 |
) |
|
(128 |
) |
| Net cash used in business acquisitions |
|
(198 |
) |
|
— |
|
|
|
(198 |
) |
|
— |
|
| Net proceeds from corporate-owned life insurance policies |
|
23 |
|
|
— |
|
|
|
25 |
|
|
— |
|
| Proceeds from sale of property, plant and equipment |
|
— |
|
|
— |
|
|
|
18 |
|
|
— |
|
| Net proceeds from business disposition |
|
— |
|
|
(1 |
) |
|
|
— |
|
|
38 |
|
| Finance receivables repaid |
|
8 |
|
|
6 |
|
|
|
21 |
|
|
19 |
|
| Other investing activities, net |
|
1 |
|
|
— |
|
|
|
44 |
|
|
6 |
|
| Net cash from investing activities |
|
(232 |
) |
|
(70 |
) |
|
|
(204 |
) |
|
(65 |
) |
| Cash Flows from Financing Activities: |
|
|
|
|
|
||||||||
| Decrease in short-term debt |
|
(15 |
) |
|
— |
|
|
|
(15 |
) |
|
— |
|
| Principal payments on long-term debt and nonrecourse debt |
|
(106 |
) |
|
(266 |
) |
|
|
(227 |
) |
|
(553 |
) |
| Purchases of Textron common stock |
|
(282 |
) |
|
(196 |
) |
|
|
(439 |
) |
|
(287 |
) |
| Dividends paid |
|
(4 |
) |
|
(4 |
) |
|
|
(9 |
) |
|
(9 |
) |
| Other financing activities, net |
|
3 |
|
|
51 |
|
|
|
28 |
|
|
75 |
|
| Net cash from financing activities |
|
(404 |
) |
|
(415 |
) |
|
|
(662 |
) |
|
(774 |
) |
| Total cash flows from continuing operations |
|
(258 |
) |
|
107 |
|
|
|
(247 |
) |
|
(66 |
) |
| Total cash flows from discontinued operations |
|
(2 |
) |
|
(1 |
) |
|
|
(2 |
) |
|
(1 |
) |
| Effect of exchange rate changes on cash and equivalents |
|
(25 |
) |
|
4 |
|
|
|
(27 |
) |
|
1 |
|
| Net change in cash and equivalents |
|
(285 |
) |
|
110 |
|
|
|
(276 |
) |
|
(66 |
) |
| Cash and equivalents at beginning of period |
|
2,126 |
|
|
2,078 |
|
|
|
2,117 |
|
|
2,254 |
|
| Cash and equivalents at end of period |
$ |
1,841 |
|
$ |
2,188 |
|
|
$ |
1,841 |
|
$ |
2,188 |
|
TEXTRON INC.
