Manufacturing Cash Flow Before Pension Contributions
Manufacturing cash flow before pension contributions adjusts net cash from operating activities (GAAP) for the following:

• Deducts capital expenditures and includes proceeds from insurance recoveries and the sale of property, plant and equipment to arrive at the net capital investment required to support ongoing manufacturing operations;
• 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;
• 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.

		Three Months Ended										Twelve Months Ended
		December 31, 2022					January 1, 2022					December 31, 2022					January 1, 2022
Net cash from operating activities - GAAP		$	516				$	457				$	1,461				$	1,469
Less: Capital expenditures			(162	)				(171	)				(354	)				(375	)
Plus: Total pension contribution			13					12					49					52
Proceeds from sale of property, plant and equipment			1					—					22					3
Manufacturing cash flow before pension contributions - Non-GAAP		$	368				$	298				$	1,178				$	1,149

TEXTRON INC. Non-GAAP Financial Measures and Outlook (Dollars in millions, except per share amounts)

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