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 |
||||||||||
|
October 1,
|
October 2,
|
|
October 1,
|
October 2,
|
||||||||
REVENUES |
|
|
|
|
|
||||||||
MANUFACTURING: |
|
|
|
|
|
||||||||
Textron Aviation |
$ |
1,167 |
|
$ |
1,181 |
|
|
$ |
3,491 |
|
$ |
3,207 |
|
Bell |
|
754 |
|
|
769 |
|
|
|
2,275 |
|
|
2,506 |
|
Textron Systems |
|
292 |
|
|
299 |
|
|
|
858 |
|
|
960 |
|
Industrial |
|
849 |
|
|
730 |
|
|
|
2,558 |
|
|
2,349 |
|
Textron eAviation (a) |
|
5 |
|
|
— |
|
|
|
10 |
|
|
— |
|
|
|
|
3,067 |
|
|
2,979 |
|
|
|
9,192 |
|
|
9,022 |
|
| FINANCE |
|
11 |
|
|
11 |
|
|
|
41 |
|
|
38 |
|
| Total revenues |
$ |
3,078 |
|
$ |
2,990 |
|
|
$ |
9,233 |
|
$ |
9,060 |
|
|
|
|
|
|
|
|
||||||||
| SEGMENT PROFIT |
|
|
|
|
|
||||||||
| MANUFACTURING: |
|
|
|
|
|
||||||||
| Textron Aviation |
$ |
139 |
|
$ |
98 |
|
|
$ |
415 |
|
$ |
241 |
|
| Bell |
|
85 |
|
|
105 |
|
|
|
246 |
|
|
320 |
|
| Textron Systems |
|
37 |
|
|
45 |
|
|
|
112 |
|
|
144 |
|
| Industrial |
|
39 |
|
|
23 |
|
|
|
123 |
|
|
102 |
|
| Textron eAviation (a) |
|
(8 |
) |
|
— |
|
|
|
(16 |
) |
|
— |
|
|
|
|
292 |
|
|
271 |
|
|
|
880 |
|
|
807 |
|
| FINANCE |
|
7 |
|
|
8 |
|
|
|
26 |
|
|
17 |
|
| Segment profit |
|
299 |
|
|
279 |
|
|
|
906 |
|
|
824 |
|
|
|
|
|
|
|
|
||||||||
| Corporate expenses and other, net |
|
(14 |
) |
|
(23 |
) |
|
|
(70 |
) |
|
(100 |
) |
| Interest expense, net for Manufacturing group |
|
(21 |
) |
|
(28 |
) |
|
|
(77 |
) |
|
(95 |
) |
| Special charges (b) |
|
— |
|
|
(10 |
) |
|
|
— |
|
|
(20 |
) |
| Gain on business disposition (c) |
|
— |
|
|
— |
|
|
|
— |
|
|
17 |
|
| Income from continuing operations before income taxes |
|
264 |
|
|
218 |
|
|
|
759 |
|
|
626 |
|
| Income tax expense |
|
(39 |
) |
|
(33 |
) |
|
|
(123 |
) |
|
(86 |
) |
| Income from continuing operations |
$ |
225 |
|
$ |
185 |
|
|
$ |
636 |
|
$ |
540 |
|
| Discontinued operations, net of income taxes |
|
— |
|
|
— |
|
|
|
(1 |
) |
|
(1 |
) |
| Net income |
$ |
225 |
|
$ |
185 |
|
|
$ |
635 |
|
$ |
539 |
|
|
|
|
|
|
|
|
||||||||
| Earnings Per Share: |
|
|
|
|
|
||||||||
| Income from continuing operations |
$ |
1.06 |
|
$ |
0.82 |
|
|
$ |
2.94 |
|
$ |
2.37 |
|
| Discontinued operations, net of income taxes |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
| Earnings per share |
$ |
1.06 |
|
$ |
0.82 |
|
|
$ |
2.94 |
|
$ |
2.37 |
|
|
|
|
|
|
|
|
||||||||
| Diluted average shares outstanding |
|
213,140,000 |
|
|
226,490,000 |
|
|
|
216,468,000 |
|
|
227,795,000 |
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations and Diluted earnings per share (EPS) GAAP to Non-GAAP reconciliation for the three and nine months ended October 2, 2021: |
|||||||||||||
|
|
|
|
|
|
|
||||||||
|
|
|
October 2,
|
|
|
October 2,
|
||||||||
| Income from continuing operations - GAAP |
|
$ |
185 |
|
|
|
$ |
540 |
|
||||
| Add: Special charges, net of tax (b) |
|
|
8 |
|
|
|
|
15 |
|
||||
| Less: Gain on business disposition, net of tax (c) |
|
|
— |
|
|
|
|
(17 |
) |
||||
| Adjusted income from continuing operations - Non-GAAP (d) |
|
$ |
193 |
|
|
|
$ |
538 |
|
||||
|
|
|
|
|
|
|
||||||||
| Earnings Per Share: |
|
|
|
|
|
||||||||
| Income from continuing operations - GAAP |
|
$ |
0.82 |
|
|
|
$ |
2.37 |
|
||||
| Add: Special charges, net of tax (b) |
|
|
0.03 |
|
|
|
|
0.07 |
|
||||
| Less: Gain on business disposition, net of tax (c) |
|
|
— |
|
|
|
|
(0.08 |
) |
||||
| Adjusted income from continuing operations - Non-GAAP (d) |
|
$ |
0.85 |
|
|
|
$ |
2.36 |
|
||||
|
|
|
|
|
|
|
||||||||
| (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 $10 million and $20 million for the three and nine months ended October 2, 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. |
||||
| Condensed Consolidated Balance Sheets |
||||
| (In millions) |
||||
| (Unaudited) |
||||
|
|
|
|
||
|
|
October 1,
|
January 1,
|
||
| Assets |
|
|
||
| Cash and equivalents |
$ |
1,817 |
$ |
1,922 |
| Accounts receivable, net |
|
836 |
|
838 |
| Inventories |
|
3,817 |
|
3,468 |
| Other current assets |
|
943 |
|
1,018 |
| Net property, plant and equipment |
|
2,443 |
|
2,538 |
| Goodwill |
|
2,262 |
|
2,149 |
| Other assets |
|
3,173 |
|
3,027 |
| Finance group assets |
|
665 |
|
867 |
| Total Assets |
$ |
15,956 |
$ |
15,827 |
|
|
|
|
||
|
|
|
|
||
| Liabilities and Shareholders' Equity |
|
|
||
| Current portion of long-term debt |
$ |
7 |
$ |
6 |
| Accounts payable |
|
887 |
|
786 |
| Other current liabilities |
|
2,733 |
|
2,344 |
| Other liabilities |
|
1,930 |
|
2,005 |
| Long-term debt |
|
3,176 |
|
3,179 |
| Finance group liabilities |
|
461 |
|
692 |
| Total Liabilities |
|
9,194 |
|
9,012 |
|
|
|
|
||
| Total Shareholders' Equity |
|
6,762 |
|
6,815 |
| Total Liabilities and Shareholders' Equity |
$ |
15,956 |
$ |
15,827 |
| TEXTRON INC. |
|||||||||||||
| MANUFACTURING GROUP |
|||||||||||||
| Condensed Schedule of Cash Flows |
|||||||||||||
| (In millions) |
|||||||||||||
| (Unaudited) |
|||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||
|
|
October 1,
|
October 2,
|
|
October 1,
|
October 2,
|
||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
||||||||
| Income from continuing operations |
$ |
220 |
|
$ |
179 |
|
|
$ |
615 |
|
$ |
537 |
|
| Depreciation and amortization |
|
96 |
|
|
94 |
|
|
|
287 |
|
|
277 |
|
| Deferred income taxes and income taxes receivable/payable |
|
(48 |
) |
|
7 |
|
|
|
(126 |
) |
|
25 |
|
| Pension, net |
|
(40 |
) |
|
(20 |
) |
|
|
(123 |
) |
|
(62 |
) |
| Gain on business disposition |
|
— |
|
|
— |
|
|
|
— |
|
|
(17 |
) |
| Changes in assets and liabilities: |
|
|
|
|
|
||||||||
| Accounts receivable, net |
|
25 |
|
|
46 |
|
|
|
(23 |
) |
|
8 |
|
| Inventories |
|
(107 |
) |
|
(2 |
) |
|
|
(353 |
) |
|
(164 |
) |
| Accounts payable |
|
92 |
|
|
(187 |
) |
|
|
116 |
|
|
1 |
|
| Other, net |
|
118 |
|
|
216 |
|
|
|
552 |
|
|
407 |
|
| Net cash from operating activities |
|
356 |
|
|
333 |
|
|
|
945 |
|
|
1,012 |
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
||||||||
| Capital expenditures |
|
(78 |
) |
|
(76 |
) |
|
|
(192 |
) |
|
(204 |
) |
| Net cash used in business acquisitions |
|
(3 |
) |
|
— |
|
|
|
(201 |
) |
|
— |
|
| Net (payments)/proceeds from corporate-owned life insurance policies |
|
(2 |
) |
|
— |
|
|
|
23 |
|
|
— |
|
| Proceeds from sale of property, plant and equipment |
|
3 |
|
|
3 |
|
|
|
21 |
|
|
3 |
|
| Net proceeds from business disposition |
|
— |
|
|
— |
|
|
|
— |
|
|
38 |
|
| Net cash from investing activities |
|
(80 |
) |
|
(73 |
) |
|
|
(349 |
) |
|
(163 |
) |
| Cash Flows from Financing Activities: |
|
|
|
|
|
||||||||
| Decrease in short-term debt |
|
— |
|
|
— |
|
|
|
(15 |
) |
|
— |
|
| Principal payments on long-term debt and nonrecourse debt |
|
(2 |
) |
|
(3 |
) |
|
|
(16 |
) |
|
(522 |
) |
| Purchases of Textron common stock |
|
(200 |
) |
|
(299 |
) |
|
|
(639 |
) |
|
(586 |
) |
| Dividends paid |
|
(4 |
) |
|
(5 |
) |
|
|
(13 |
) |
|
(14 |
) |
| Other financing activities, net |
|
5 |
|
|
28 |
|
|
|
33 |
|
|
103 |
|
| Net cash from financing activities |
|
(201 |
) |
|
(279 |
) |
|
|
(650 |
) |
|
(1,019 |
) |
| Total cash flows from continuing operations |
|
75 |
|
|
(19 |
) |
|
|
(54 |
) |
|
(170 |
) |
| Total cash flows from discontinued operations |
|
— |
|
|
— |
|
|
|
(2 |
) |
|
(1 |
) |
| Effect of exchange rate changes on cash and equivalents |
|
(22 |
) |
|
(7 |
) |
|
|
(49 |
) |
|
(6 |
) |
| Net change in cash and equivalents |
|
53 |
|
|
(26 |
) |
|
|
(105 |
) |
|
(177 |
) |
| Cash and equivalents at beginning of period |
|
1,764 |
|
|
1,995 |
|
|
|
1,922 |
|
|
2,146 |
|
| Cash and equivalents at end of period |
$ |
1,817 |
|
$ |
1,969 |
|
|
$ |
1,817 |
|
$ |
1,969 |
|
|
|
|
|
|
|
|
||||||||
| Manufacturing cash flow GAAP to Non-GAAP reconciliation: |
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||
|
|
October 1,
|
October 2,
|
|
October 1,
|
October 2,
|
||||||||
| Net cash from operating activities - GAAP |
$ |
356 |
|
$ |
333 |
|
|
$ |
945 |
|
$ |
1,012 |
|
| Less: Capital expenditures |
|
(78 |
) |
|
(76 |
) |
|
|
(192 |
) |
|
(204 |
) |
| Add: Total pension contributions |
|
11 |
|
|
11 |
|
|
|
36 |
|
|
40 |
|
| Proceeds from sale of property, plant and equipment |
|
3 |
|
|
3 |
|
|
|
21 |
|
|
3 |
|
| Manufacturing cash flow before pension contributions - Non-GAAP (a) |
$ |
292 |
|
$ |
271 |
|
|
$ |
810 |
|
$ |
851 |
|
| (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 |
||||||||||
|
|
October 1,
|
October 2,
|
|
October 1,
|
October 2,
|
||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
||||||||
| Income from continuing operations |
$ |
225 |
|
$ |
185 |
|
|
$ |
636 |
|
$ |
540 |
|
| Depreciation and amortization |
|
97 |
|
|
97 |
|
|
|
288 |
|
|
285 |
|
| Deferred income taxes and income taxes receivable/payable |
|
(53 |
) |
|
9 |
|
|
|
(139 |
) |
|
33 |
|
| Pension, net |
|
(40 |
) |
|
(20 |
) |
|
|
(123 |
) |
|
(62 |
) |
| Gain on business disposition |
|
— |
|
|
— |
|
|
|
— |
|
|
(17 |
) |
| Changes in assets and liabilities: |
|
|
|
|
|
||||||||
| Accounts receivable, net |
|
25 |
|
|
46 |
|
|
|
(23 |
) |
|
8 |
|
| Inventories |
|
(107 |
) |
|
(2 |
) |
|
|
(353 |
) |
|
(164 |
) |
| Accounts payable |
|
92 |
|
|
(187 |
) |
|
|
116 |
|
|
1 |
|
| Captive finance receivables, net |
|
(6 |
) |
|
63 |
|
|
|
29 |
|
|
152 |
|
| Other, net |
|
115 |
|
|
210 |
|
|
|
532 |
|
|
398 |
|
| Net cash from operating activities |
|
348 |
|
|
401 |
|
|
|
963 |
|
|
1,174 |
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
||||||||
| Capital expenditures |
|
(78 |
) |
|
(76 |
) |
|
|
(192 |
) |
|
(204 |
) |
| Net cash used in business acquisitions |
|
(3 |
) |
|
— |
|
|
|
(201 |
) |
|
— |
|
| Net (payments)/proceeds from corporate-owned life insurance policies |
|
(2 |
) |
|
— |
|
|
|
23 |
|
|
— |
|
| Proceeds from sale of property, plant and equipment |
|
3 |
|
|
3 |
|
|
|
21 |
|
|
3 |
|
| Net proceeds from business disposition |
|
— |
|
|
— |
|
|
|
— |
|
|
38 |
|
| Finance receivables repaid |
|
— |
|
|
— |
|
|
|
21 |
|
|
19 |
|
| Other investing activities, net |
|
— |
|
|
11 |
|
|
|
44 |
|
|
17 |
|
| Net cash from investing activities |
|
(80 |
) |
|
(62 |
) |
|
|
(284 |
) |
|
(127 |
) |
| Cash Flows from Financing Activities: |
|
|
|
|
|
||||||||
| Decrease in short-term debt |
|
— |
|
|
— |
|
|
|
(15 |
) |
|
— |
|
| Principal payments on long-term debt and nonrecourse debt |
|
(4 |
) |
|
(62 |
) |
|
|
(227 |
) |
|
(615 |
) |
| Purchases of Textron common stock |
|
(200 |
) |
|
(299 |
) |
|
|
(639 |
) |
|
(586 |
) |
| Dividends paid |
|
(4 |
) |
|
(5 |
) |
|
|
(13 |
) |
|
(14 |
) |
| Other financing activities, net |
|
5 |
|
|
28 |
|
|
|
33 |
|
|
103 |
|
| Net cash from financing activities |
|
(203 |
) |
|
(338 |
) |
|
|
(861 |
) |
|
(1,112 |
) |
| Total cash flows from continuing operations |
|
65 |
|
|
1 |
|
|
|
(182 |
) |
|
(65 |
) |
| Total cash flows from discontinued operations |
|
— |
|
|
— |
|
|
|
(2 |
) |
|
(1 |
) |
| Effect of exchange rate changes on cash and equivalents |
|
(22 |
) |
|
(7 |
) |
|
|
(49 |
) |
|
(6 |
) |
| Net change in cash and equivalents |
|
43 |
|
|
(6 |
) |
|
|
(233 |
) |
|
(72 |
) |
| Cash and equivalents at beginning of period |
|
1,841 |
|
|
2,188 |
|
|
|
2,117 |
|
|
2,254 |
|
| Cash and equivalents at end of period |
$ |
1,884 |
|
$ |
2,182 |
|
|
$ |
1,884 |
|
$ |
2,182 |
|
TEXTRON INC.
