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 1,
|
April 2,
|
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REVENUES |
|
|
|
|
|
|
||||
MANUFACTURING: |
|
|
|
|
|
|
||||
Textron Aviation |
|
$ |
1,149 |
|
|
|
$ |
1,040 |
|
|
Bell |
|
|
621 |
|
|
|
|
834 |
|
|
Textron Systems |
|
|
306 |
|
|
|
|
273 |
|
|
Industrial |
|
|
932 |
|
|
|
|
838 |
|
|
Textron eAviation (a) |
|
|
4 |
|
|
|
|
— |
|
|
|
|
|
3,012 |
|
|
|
|
2,985 |
|
|
FINANCE |
|
|
12 |
|
|
|
|
16 |
|
|
| Total revenues |
|
$ |
3,024 |
|
|
|
$ |
3,001 |
|
|
|
|
|
|
|
|
|
|
||||
| SEGMENT PROFIT |
|
|
|
|
|
|
||||
| MANUFACTURING: |
|
|
|
|
|
|
||||
| Textron Aviation |
|
$ |
125 |
|
|
|
$ |
110 |
|
|
| Bell |
|
|
60 |
|
|
|
|
91 |
|
|
| Textron Systems |
|
|
34 |
|
|
|
|
28 |
|
|
| Industrial |
|
|
41 |
|
|
|
|
39 |
|
|
| Textron eAviation (a) |
|
|
(9 |
) |
|
|
|
— |
|
|
|
|
|
|
251 |
|
|
|
|
268 |
|
|
| FINANCE |
|
|
8 |
|
|
|
|
9 |
|
|
| Segment profit (b) |
|
|
259 |
|
|
|
|
277 |
|
|
|
|
|
|
|
|
|
|
||||
| Corporate expenses and other, net |
|
|
(39 |
) |
|
|
|
(52 |
) |
|
| Interest expense, net for Manufacturing group |
|
|
(17 |
) |
|
|
|
(28 |
) |
|
| LIFO inventory provision |
|
|
(25 |
) |
|
|
|
(12 |
) |
|
| Intangible asset amortization |
|
|
(10 |
) |
|
|
|
(13 |
) |
|
| Non-service components of pension and postretirement income, net |
|
|
59 |
|
|
|
|
60 |
|
|
| Income before income taxes |
|
|
227 |
|
|
|
|
232 |
|
|
| Income tax expense |
|
|
(36 |
) |
|
|
|
(39 |
) |
|
| Net income |
|
$ |
191 |
|
|
|
$ |
193 |
|
|
|
|
|
|
|
|
|
|
||||
| Diluted earnings per share |
|
$ |
0.92 |
|
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
||||
| Diluted average shares outstanding |
|
|
207,011,000 |
|
|
|
|
219,607,000 |
|
|
|
|
|
|
|
|
|
|
||||
| Net income and Diluted earnings per share (EPS) GAAP to Non-GAAP reconciliation |
|
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|
|
|
|
|
|
|
|
||||
|
|
April 1,
|
April 2,
|
||||||||
| Net income - GAAP |
|
$ |
191 |
|
|
|
$ |
193 |
|
|
| Add: LIFO inventory provision, net of tax |
|
|
19 |
|
|
|
|
9 |
|
|
| Intangible asset amortization, net of tax |
|
|
8 |
|
|
|
|
10 |
|
|
| Adjusted net income - Non-GAAP (b) |
|
$ |
218 |
|
|
|
$ |
212 |
|
|
|
|
|
|
|
|
|
|
||||
| Earnings Per Share: |
|
|
|
|
|
|
||||
| Net income - GAAP |
|
$ |
0.92 |
|
|
|
$ |
0.88 |
|
|
| Add: LIFO inventory provision, net of tax |
|
|
0.09 |
|
|
|
|
0.04 |
|
|
| Intangible asset amortization, net of tax |
|
|
0.04 |
|
|
|
|
0.05 |
|
|
| Adjusted net income - Non-GAAP (b) |
|
$ |
1.05 |
|
|
|
$ |
0.97 |
|
|
|
|
|
|
|
|
|
|
||||
| (a) | In the second quarter of 2022, we acquired Pipistrel, a manufacturer of electrically powered aircraft and formed a new reporting segment, Textron eAviation. This segment combines the operating results of Pipistrel along with other research and development initiatives related to sustainable aviation solutions. |
|
| (b) | Segment profit, 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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|
|
|
|
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|
|
April 1,
|
December 31,
|
|||||
| Assets |
|
|
|||||
| Cash and equivalents |
$ |
1,719 |
$ |
1,963 |
|||
| Accounts receivable, net |
|
928 |
|
855 |
|||
| Inventories |
|
3,934 |
|
3,550 |
|||
| Other current assets |
|
949 |
|
1,033 |
|||
| Net property, plant and equipment |
|
2,505 |
|
2,523 |
|||
| Goodwill |
|
2,289 |
|
2,283 |
|||
| Other assets |
|
3,416 |
|
3,422 |
|||
| Finance group assets |
|
653 |
|
664 |
|||
| Total Assets |
$ |
16,393 |
$ |
16,293 |
|||
|
|
|
|
|||||
|
|
|
|
|||||
| Liabilities and Shareholders' Equity |
|
|
|||||
| Current portion of long-term debt |
$ |
357 |
$ |
7 |
|||
| Accounts payable |
|
1,281 |
|
1,018 |
|||
| Other current liabilities |
|
2,651 |
|
2,645 |
|||
| Other liabilities |
|
1,829 |
|
1,879 |
|||
| Long-term debt |
|
2,826 |
|
3,175 |
|||
| Finance group liabilities |
|
441 |
|
456 |
|||
| Total Liabilities |
|
9,385 |
|
9,180 |
|||
|
|
|
|
|||||
| Total Shareholders' Equity |
|
7,008 |
|
7,113 |
|||
| Total Liabilities and Shareholders' Equity |
$ |
16,393 |
$ |
16,293 |
|||
| TEXTRON INC. MANUFACTURING GROUP Condensed Schedule of Cash Flows (In millions) (Unaudited) |
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|
|
|
|
|
|
|
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|
|
|
Three Months Ended |
|
|||||||
|
|
|
April 1,
|
|
|
April 2,
|
|
||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
||||
| Net income |
|
$ |
185 |
|
|
|
$ |
185 |
|
|
| Depreciation and amortization |
|
|
92 |
|
|
|
|
93 |
|
|
| Deferred income taxes and income taxes receivable/payable |
|
|
16 |
|
|
|
|
17 |
|
|
| Pension, net |
|
|
(51 |
) |
|
|
|
(41 |
) |
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
||||
| Accounts receivable, net |
|
|
(69 |
) |
|
|
|
37 |
|
|
| Inventories |
|
|
(380 |
) |
|
|
|
(176 |
) |
|
| Accounts payable |
|
|
261 |
|
|
|
|
38 |
|
|
| Other, net |
|
|
99 |
|
|
|
|
72 |
|
|
| Net cash from operating activities |
|
|
153 |
|
|
|
|
225 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
||||
| Capital expenditures |
|
|
(62 |
) |
|
|
|
(48 |
) |
|
| Net proceeds from corporate-owned life insurance policies |
|
|
20 |
|
|
|
|
2 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
18 |
|
|
| Net cash from investing activities |
|
|
(42 |
) |
|
|
|
(28 |
) |
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
||||
| Principal payments on long-term debt and nonrecourse debt |
|
|
(2 |
) |
|
|
|
(2 |
) |
|
| Purchases of Textron common stock |
|
|
(377 |
) |
|
|
|
(157 |
) |
|
| Dividends paid |
|
|
(4 |
) |
|
|
|
(5 |
) |
|
| Other financing activities, net |
|
|
22 |
|
|
|
|
25 |
|
|
| Net cash from financing activities |
|
|
(361 |
) |
|
|
|
(139 |
) |
|
| Total cash flows |
|
|
(250 |
) |
|
|
|
58 |
|
|
| Effect of exchange rate changes on cash and equivalents |
|
|
6 |
|
|
|
|
(2 |
) |
|
| Net change in cash and equivalents |
|
|
(244 |
) |
|
|
|
56 |
|
|
| Cash and equivalents at beginning of period |
|
|
1,963 |
|
|
|
|
1,922 |
|
|
| Cash and equivalents at end of period |
|
$ |
1,719 |
|
|
|
$ |
1,978 |
|
|
|
|
|
|
|
|
|
|
||||
| Manufacturing cash flow GAAP to Non-GAAP reconciliation: |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|||||||||
|
|
|
April 1,
|
|
|
April 2,
|
|
||||
| Net cash from operating activities - GAAP |
|
$ |
153 |
|
|
|
$ |
225 |
|
|
| Less: Capital expenditures |
|
|
(62 |
) |
|
|
|
(48 |
) |
|
| Add: Total pension contributions |
|
|
13 |
|
|
|
|
14 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
18 |
|
|
| Manufacturing cash flow before pension contributions - Non-GAAP (a) |
|
$ |
104 |
|
|
|
$ |
209 |
|
|
| (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 1,
|
|
|
April 2,
|
|
||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
||||
| Net income |
|
$ |
191 |
|
|
|
$ |
193 |
|
|
| Depreciation and amortization |
|
|
92 |
|
|
|
|
93 |
|
|
| Deferred income taxes and income taxes receivable/payable |
|
|
18 |
|
|
|
|
19 |
|
|
| Pension, net |
|
|
(51 |
) |
|
|
|
(41 |
) |
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
||||
| Accounts receivable, net |
|
|
(69 |
) |
|
|
|
37 |
|
|
| Inventories |
|
|
(380 |
) |
|
|
|
(176 |
) |
|
| Accounts payable |
|
|
261 |
|
|
|
|
38 |
|
|
| Captive finance receivables, net |
|
|
6 |
|
|
|
|
18 |
|
|
| Other, net |
|
|
95 |
|
|
|
|
60 |
|
|
| Net cash from operating activities |
|
|
163 |
|
|
|
|
241 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
||||
| Capital expenditures |
|
|
(62 |
) |
|
|
|
(48 |
) |
|
| Net proceeds from corporate-owned life insurance policies |
|
|
20 |
|
|
|
|
2 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
18 |
|
|
| Finance receivables repaid |
|
|
12 |
|
|
|
|
13 |
|
|
| Other investing activities, net |
|
|
1 |
|
|
|
|
43 |
|
|
| Net cash from investing activities |
|
|
(29 |
) |
|
|
|
28 |
|
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
||||
| Principal payments on long-term debt and nonrecourse debt |
|
|
(17 |
) |
|
|
|
(121 |
) |
|
| Purchases of Textron common stock |
|
|
(377 |
) |
|
|
|
(157 |
) |
|
| Dividends paid |
|
|
(4 |
) |
|
|
|
(5 |
) |
|
| Other financing activities, net |
|
|
22 |
|
|
|
|
25 |
|
|
| Net cash from financing activities |
|
|
(376 |
) |
|
|
|
(258 |
) |
|
| Total cash flows |
|
|
(242 |
) |
|
|
|
11 |
|
|
| Effect of exchange rate changes on cash and equivalents |
|
|
6 |
|
|
|
|
(2 |
) |
|
| Net change in cash and equivalents |
|
|
(236 |
) |
|
|
|
9 |
|
|
| Cash and equivalents at beginning of period |
|
|
2,035 |
|
|
|
|
2,117 |
|
|
| Cash and equivalents at end of period |
|
$ |
1,799 |
|
|
|
$ |
2,126 |
|
|
TEXTRON INC.
