Adjusted income from continuing operations and
adjusted diluted earnings per share
Adjusted income from
continuing operations and adjusted diluted earnings per share both
exclude Special charges, net of income taxes. We consider items recorded
in Special charges, net of income taxes, such as enterprise-wide
restructuring and acquisition-related restructuring, integration and
transaction costs, to be of a non-recurring nature that is not
indicative of ongoing operations.
Manufacturing cash flow before pension
contributions
Manufacturing cash flow before pension
contributions adjusts net cash from operating activities of continuing
operations (GAAP) for the following:
- Excludes dividends received from Textron Financial Corporation (TFC) and capital contributions to TFC provided under the Support Agreement and debt agreements as these cash flows are not representative of manufacturing operations;
- Deducts capital expenditures and includes proceeds from the sale of property, plant and equipment to arrive at the net capital investment required to support ongoing manufacturing operations;
- Adds back pension contributions as we consider our pension obligations to be debt-like liabilities. Additionally, these contributions can fluctuate significantly from period to period and we believe that they are not representative of cash used by our manufacturing operations during the period.
While we believe this measure provides a focus on cash generated from manufacturing operations, before pension contributions, and may be used as an additional relevant measure of liquidity, it does not necessarily provide the amount available for discretionary expenditures since we have certain non-discretionary obligations that are not deducted from the measure.
Income from Continuing Operations and Diluted Earnings Per Share (EPS) GAAP to Non-GAAP Reconciliation and Outlook:
|
Three
|
Six
|
|||||||||||||||||||||
| Diluted EPS | Diluted EPS | |||||||||||||||||||||
| Income from continuing operations - GAAP | $ | 153 | $ | 0.57 | $ | 253 | $ | 0.94 | ||||||||||||||
| Restructuring, net of taxes of $4 million and $9 million, respectively | 8 | 0.03 | 18 | 0.07 | ||||||||||||||||||
|
Arctic Cat restructuring, integration and transaction costs,
net of taxes of $0 million and $7 million, respectively |
1 | - | 16 | 0.05 | ||||||||||||||||||
| Total Special charges, net of income taxes | 9 | 0.03 | 34 | 0.12 | ||||||||||||||||||
| Adjusted income from continuing operations - Non-GAAP | $ | 162 | $ | 0.60 | $ | 287 | $ | 1.06 | ||||||||||||||
| 2017 Outlook | ||||||||||||||||||||||
| Diluted EPS | ||||||||||||||||||||||
| Income from continuing operations - GAAP | $ 600 - $ 659 | $ 2.22 - $ 2.45 | ||||||||||||||||||||
| Restructuring, net of taxes of $18 million and $12 million | 29 - 20 | 0.10 - 0.07 | ||||||||||||||||||||
| Arctic Cat restructuring, integration and transaction costs, net of taxes of $9 million | 21 | 0.08 | ||||||||||||||||||||
| Total Special charges, net of income taxes | 50 - 41 | 0.18 - 0.15 | ||||||||||||||||||||
| Adjusted income from continuing operations - Non-GAAP | $ 650 - $ 700 | $ 2.40 - $ 2.60 | ||||||||||||||||||||
| Manufacturing Cash Flow Before Pension Contributions GAAP to Non-GAAP Outlook: | ||||||||||||||||||||||
| 2017 Outlook | ||||||||||||||||||||||
| Net cash from operating activities of continuing operations - GAAP | $ 1,045 - $ 1,145 | |||||||||||||||||||||
| Less: Capital expenditures | (450) | |||||||||||||||||||||
| Plus: Total pension contributions | 55 | |||||||||||||||||||||
| Manufacturing cash flow before pension contributions- Non-GAAP | $ 650 - $ 750 | |||||||||||||||||||||
