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 |
|
Twelve Months Ended |
||||||||||||||||||
|
December 30,
|
December 31,
|
|
December 30,
|
December 31,
|
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REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MANUFACTURING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Textron Aviation |
|
$ |
1,524 |
|
|
|
$ |
1,582 |
|
|
|
|
$ |
5,373 |
|
|
|
$ |
5,073 |
|
|
Bell |
|
|
1,071 |
|
|
|
|
816 |
|
|
|
|
|
3,147 |
|
|
|
|
3,091 |
|
|
Textron Systems |
|
|
314 |
|
|
|
|
314 |
|
|
|
|
|
1,235 |
|
|
|
|
1,172 |
|
|
| Industrial |
|
|
961 |
|
|
|
|
907 |
|
|
|
|
|
3,841 |
|
|
|
|
3,465 |
|
|
| Textron eAviation |
|
|
10 |
|
|
|
|
6 |
|
|
|
|
|
32 |
|
|
|
|
16 |
|
|
|
|
|
|
3,880 |
|
|
|
|
3,625 |
|
|
|
|
|
13,628 |
|
|
|
|
12,817 |
|
|
| FINANCE |
|
|
12 |
|
|
|
|
11 |
|
|
|
|
|
55 |
|
|
|
|
52 |
|
|
| Total revenues |
|
$ |
3,892 |
|
|
|
$ |
3,636 |
|
|
|
|
$ |
13,683 |
|
|
|
$ |
12,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| SEGMENT PROFIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| MANUFACTURING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Textron Aviation |
|
$ |
193 |
|
|
|
$ |
170 |
|
|
|
|
$ |
649 |
|
|
|
$ |
560 |
|
|
| Bell |
|
|
118 |
|
|
|
|
63 |
|
|
|
|
|
320 |
|
|
|
|
282 |
|
|
| Textron Systems |
|
|
35 |
|
|
|
|
35 |
|
|
|
|
|
147 |
|
|
|
|
132 |
|
|
| Industrial |
|
|
57 |
|
|
|
|
43 |
|
|
|
|
|
228 |
|
|
|
|
155 |
|
|
| Textron eAviation |
|
|
(23 |
) |
|
|
|
(10 |
) |
|
|
|
|
(63 |
) |
|
|
|
(24 |
) |
|
|
|
|
|
380 |
|
|
|
|
301 |
|
|
|
|
|
1,281 |
|
|
|
|
1,105 |
|
|
| FINANCE |
|
|
4 |
|
|
|
|
5 |
|
|
|
|
|
46 |
|
|
|
|
31 |
|
|
| Segment profit (a) |
|
|
384 |
|
|
|
|
306 |
|
|
|
|
|
1,327 |
|
|
|
|
1,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Corporate expenses and other, net |
|
|
(45 |
) |
|
|
|
(50 |
) |
|
|
|
|
(143 |
) |
|
|
|
(143 |
) |
|
| Interest expense, net for Manufacturing group |
|
|
(13 |
) |
|
|
|
(17 |
) |
|
|
|
|
(62 |
) |
|
|
|
(94 |
) |
|
| Special charges (b) |
|
|
(126 |
) |
|
|
|
— |
|
|
|
|
|
(126 |
) |
|
|
|
— |
|
|
| LIFO inventory provision |
|
|
(21 |
) |
|
|
|
(29 |
) |
|
|
|
|
(107 |
) |
|
|
|
(71 |
) |
|
| Intangible asset amortization |
|
|
(9 |
) |
|
|
|
(13 |
) |
|
|
|
|
(39 |
) |
|
|
|
(52 |
) |
|
| Non-service components of pension and postretirement income, net |
|
|
60 |
|
|
|
|
60 |
|
|
|
|
|
237 |
|
|
|
|
240 |
|
|
| Income from continuing operations before income taxes |
|
|
230 |
|
|
|
|
257 |
|
|
|
|
|
1,087 |
|
|
|
|
1,016 |
|
|
| Income tax expense |
|
|
(31 |
) |
|
|
|
(31 |
) |
|
|
|
|
(165 |
) |
|
|
|
(154 |
) |
|
| Income from continuing operations |
|
$ |
199 |
|
|
|
$ |
226 |
|
|
|
|
$ |
922 |
|
|
|
$ |
862 |
|
|
| Discontinued operations, net of income taxes |
|
|
(1 |
) |
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
|
(1 |
) |
|
| Net income |
|
$ |
198 |
|
|
|
$ |
226 |
|
|
|
|
$ |
921 |
|
|
|
$ |
861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Earnings Per Share from continuing operations |
|
$ |
1.01 |
|
|
|
$ |
1.07 |
|
|
|
|
$ |
4.57 |
|
|
|
$ |
4.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Diluted average shares outstanding |
|
|
197,584,000 |
|
|
|
|
210,488,000 |
|
|
|
|
|
201,774,000 |
|
|
|
|
214,973,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations and Diluted earnings per share (EPS) GAAP to Non-GAAP Reconciliation: |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
December 30,
|
December 31,
|
|
December 30,
|
December 31,
|
||||||||||||||||
| Income from continuing operations - GAAP |
|
$ |
199 |
|
|
|
$ |
226 |
|
|
|
|
$ |
922 |
|
|
|
$ |
862 |
|
|
| Add: Special charges, net of tax (b) |
|
|
94 |
|
|
|
|
— |
|
|
|
|
|
94 |
|
|
|
|
— |
|
|
| LIFO inventory provision, net of tax |
|
|
16 |
|
|
|
|
22 |
|
|
|
|
|
81 |
|
|
|
|
54 |
|
|
| Intangible asset amortization, net of tax |
|
|
7 |
|
|
|
|
10 |
|
|
|
|
|
30 |
|
|
|
|
40 |
|
|
| Adjusted income from continuing operations - Non-GAAP (a) |
|
$ |
316 |
|
|
|
$ |
258 |
|
|
|
|
$ |
1,127 |
|
|
|
$ |
956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations - GAAP |
|
$ |
1.01 |
|
|
|
$ |
1.07 |
|
|
|
|
$ |
4.57 |
|
|
|
$ |
4.01 |
|
|
| Add: Special charges, net of tax (b) |
|
|
0.47 |
|
|
|
|
— |
|
|
|
|
|
0.47 |
|
|
|
|
— |
|
|
| LIFO inventory provision, net of tax |
|
|
0.08 |
|
|
|
|
0.11 |
|
|
|
|
|
0.40 |
|
|
|
|
0.25 |
|
|
| Intangible asset amortization, net of tax |
|
|
0.04 |
|
|
|
|
0.05 |
|
|
|
|
|
0.15 |
|
|
|
|
0.19 |
|
|
| Adjusted income from continuing operations - Non-GAAP (a) |
|
$ |
1.60 |
|
|
|
$ |
1.23 |
|
|
|
|
$ |
5.59 |
|
|
|
$ |
4.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| (a) | Segment profit, adjusted income from continuing operations and adjusted diluted earnings per share are non-GAAP financial measures as defined in "Non-GAAP Financial Measures and Outlook" attached to this release. |
|
| (b) | In the fourth quarter of 2023, we initiated a restructuring plan to reduce operating expenses through headcount reductions at the Industrial, Bell and Textron Systems segments. In connection with this plan, we recorded special charges of $126 million ($94 million, net of tax) for the three and twelve months ended December 30, 2023. These charges included $39 million of severance and related costs and $87 million in asset impairment charges related to both fixed and intangible assets within the powersports product line at Textron Specialized Vehicles and fixed assets at Kautex. |
|
| Textron Inc. Condensed Consolidated Balance Sheets (In millions) (Unaudited) |
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|
|
|
|
||||
|
|
December 30,
|
December 31,
|
||||
| Assets |
|
|
||||
| Cash and equivalents |
$ |
2,121 |
$ |
1,963 |
||
| Accounts receivable, net |
|
868 |
|
855 |
||
| Inventories |
|
3,914 |
|
3,550 |
||
| Other current assets |
|
857 |
|
1,033 |
||
| Net property, plant and equipment |
|
2,477 |
|
2,523 |
||
| Goodwill |
|
2,295 |
|
2,283 |
||
| Other assets |
|
3,663 |
|
3,422 |
||
| Finance group assets |
|
661 |
|
664 |
||
| Total Assets |
$ |
16,856 |
$ |
16,293 |
||
|
|
|
|
||||
|
|
|
|
||||
| Liabilities and Shareholders' Equity |
|
|
||||
| Current portion of long-term debt |
$ |
357 |
$ |
7 |
||
| Accounts payable |
|
1,023 |
|
1,018 |
||
| Other current liabilities |
|
2,998 |
|
2,645 |
||
| Other liabilities |
|
1,904 |
|
1,879 |
||
| Long-term debt |
|
3,169 |
|
3,175 |
||
| Finance group liabilities |
|
418 |
|
456 |
||
| Total Liabilities |
|
9,869 |
|
9,180 |
||
|
|
|
|
||||
| Total Shareholders' Equity |
|
6,987 |
|
7,113 |
||
| Total Liabilities and Shareholders' Equity |
$ |
16,856 |
$ |
16,293 |
||
| TEXTRON INC. MANUFACTURING GROUP Condensed Schedule of Cash Flows (In millions) (Unaudited) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
|
|
|
Twelve Months Ended |
|
||||||||||||||
|
|
December 30,
|
December 31,
|
|
December 30,
|
December 31,
|
||||||||||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations |
|
$ |
194 |
|
|
|
$ |
220 |
|
|
|
|
$ |
884 |
|
|
|
$ |
835 |
|
|
| Depreciation and amortization |
|
|
103 |
|
|
|
|
109 |
|
|
|
|
|
395 |
|
|
|
|
396 |
|
|
| Deferred income taxes and income taxes receivable/payable |
|
|
(106 |
) |
|
|
|
(56 |
) |
|
|
|
|
(183 |
) |
|
|
|
(182 |
) |
|
| Pension, net |
|
|
(50 |
) |
|
|
|
(42 |
) |
|
|
|
|
(202 |
) |
|
|
|
(165 |
) |
|
| Asset impairments |
|
|
87 |
|
|
|
|
2 |
|
|
|
|
|
88 |
|
|
|
2 |
|
|
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Accounts receivable, net |
|
|
36 |
|
|
|
|
(3 |
) |
|
|
|
|
(9 |
) |
|
|
|
(26 |
) |
|
| Inventories |
|
|
300 |
|
|
|
|
298 |
|
|
|
|
|
(359 |
) |
|
|
|
(55 |
) |
|
| Accounts payable |
|
|
(200 |
) |
|
|
|
119 |
|
|
|
|
|
2 |
|
|
|
|
235 |
|
|
| Other, net |
|
|
169 |
|
|
|
|
(131 |
) |
|
|
|
|
654 |
|
|
|
|
421 |
|
|
| Net cash from operating activities |
|
|
533 |
|
|
|
|
516 |
|
|
|
|
|
1,270 |
|
|
|
|
1,461 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Capital expenditures |
|
|
(178 |
) |
|
|
|
(162 |
) |
|
|
|
|
(402 |
) |
|
|
|
(354 |
) |
|
| Net cash used in business acquisitions |
|
|
— |
|
|
|
|
(1 |
) |
|
|
|
|
(1 |
) |
|
|
|
(202 |
) |
|
| Net proceeds from corporate-owned life insurance policies |
|
|
1 |
|
|
|
|
— |
|
|
|
|
|
40 |
|
|
|
|
23 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
14 |
|
|
|
|
1 |
|
|
|
|
|
18 |
|
|
|
|
22 |
|
|
| Net cash from investing activities |
|
|
(163 |
) |
|
|
|
(162 |
) |
|
|
|
|
(345 |
) |
|
|
|
(511 |
) |
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Increase/(decrease) in short-term debt |
|
|
— |
|
|
|
|
1 |
|
|
|
|
|
— |
|
|
|
|
(14 |
) |
|
| Net proceeds from long-term debt |
|
|
347 |
|
|
|
|
— |
|
|
|
|
|
348 |
|
|
|
|
— |
|
|
| Principal payments on long-term debt and nonrecourse debt |
|
|
(2 |
) |
|
|
|
(2 |
) |
|
|
|
|
(7 |
) |
|
|
|
(18 |
) |
|
| Purchases of Textron common stock |
|
|
(283 |
) |
|
|
|
(228 |
) |
|
|
|
|
(1,168 |
) |
|
|
|
(867 |
) |
|
| Dividends paid |
|
|
(4 |
) |
|
|
|
(4 |
) |
|
|
|
|
(16 |
) |
|
|
|
(17 |
) |
|
| Other financing activities, net |
|
|
7 |
|
|
|
|
8 |
|
|
|
|
|
67 |
|
|
|
|
41 |
|
|
| Net cash from financing activities |
|
|
65 |
|
|
|
|
(225 |
) |
|
|
|
|
(776 |
) |
|
|
|
(875 |
) |
|
| Total cash flows from continuing operations |
|
|
435 |
|
|
|
|
129 |
|
|
|
|
|
149 |
|
|
|
|
75 |
|
|
| Total cash flows from discontinued operations |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
|
(2 |
) |
|
| Effect of exchange rate changes on cash and equivalents |
|
|
15 |
|
|
|
|
17 |
|
|
|
|
|
10 |
|
|
|
|
(32 |
) |
|
| Net change in cash and equivalents |
|
|
450 |
|
|
|
|
146 |
|
|
|
|
|
158 |
|
|
|
|
41 |
|
|
| Cash and equivalents at beginning of period |
|
|
1,671 |
|
|
|
|
1,817 |
|
|
|
|
|
1,963 |
|
|
|
|
1,922 |
|
|
| Cash and equivalents at end of period |
|
$ |
2,121 |
|
|
|
$ |
1,963 |
|
|
|
|
$ |
2,121 |
|
|
|
$ |
1,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Manufacturing Cash Flow GAAP to Non-GAAP Reconciliation: |
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
|
|
|
Twelve Months Ended |
|
||||||||||||||
|
|
December 30,
|
December 31,
|
|
December 30,
|
December 31,
|
||||||||||||||||
| Net cash from operating activities - GAAP |
|
$ |
533 |
|
|
|
$ |
516 |
|
|
|
|
$ |
1,270 |
|
|
|
$ |
1,461 |
|
|
| Less: Capital expenditures |
|
|
(178 |
) |
|
|
|
(162 |
) |
|
|
|
|
(402 |
) |
|
|
|
(354 |
) |
|
| Plus: Total pension contribution |
|
|
11 |
|
|
|
|
13 |
|
|
|
|
|
45 |
|
|
|
|
49 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
14 |
|
|
|
|
1 |
|
|
|
|
|
18 |
|
|
|
|
22 |
|
|
| Manufacturing cash flow before pension contributions - Non-GAAP (a) |
|
$ |
380 |
|
|
|
$ |
368 |
|
|
|
|
$ |
931 |
|
|
|
$ |
1,178 |
|
|
| (a) | Manufacturing cash flow before pension contributions is a non-GAAP financial measure as defined in "Non-GAAP Financial Measures and Outlook" attached to this release. |
|
| TEXTRON INC. Condensed Consolidated Schedule of Cash Flows (In millions) (Unaudited) |
|||||||||||||||||||||
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
||||||||||||||||
|
|
December 30,
|
December 31,
|
|
December 30,
|
December 31,
|
||||||||||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations |
|
$ |
199 |
|
|
|
$ |
226 |
|
|
|
|
$ |
922 |
|
|
|
$ |
862 |
|
|
| Depreciation and amortization |
|
|
103 |
|
|
|
|
109 |
|
|
|
|
|
395 |
|
|
|
|
397 |
|
|
| Deferred income taxes and income taxes receivable/payable |
|
|
(112 |
) |
|
|
|
(63 |
) |
|
|
|
|
(188 |
) |
|
|
|
(202 |
) |
|
| Pension, net |
|
|
(50 |
) |
|
|
|
(42 |
) |
|
|
|
|
(202 |
) |
|
|
|
(165 |
) |
|
| Asset impairments |
|
|
87 |
|
|
|
|
2 |
|
|
|
|
|
88 |
|
|
|
|
2 |
|
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Accounts receivable, net |
|
|
36 |
|
|
|
|
(3 |
) |
|
|
|
|
(9 |
) |
|
|
|
(26 |
) |
|
| Inventories |
|
|
300 |
|
|
|
|
298 |
|
|
|
|
|
(359 |
) |
|
|
|
(55 |
) |
|
| Accounts payable |
|
|
(200 |
) |
|
|
|
119 |
|
|
|
|
|
2 |
|
|
|
|
235 |
|
|
| Captive finance receivables, net |
|
|
15 |
|
|
|
|
6 |
|
|
|
|
|
(17 |
) |
|
|
|
35 |
|
|
| Other, net |
|
|
171 |
|
|
|
|
(125 |
) |
|
|
|
|
635 |
|
|
|
|
407 |
|
|
| Net cash from operating activities |
|
|
549 |
|
|
|
|
527 |
|
|
|
|
|
1,267 |
|
|
|
|
1,490 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Capital expenditures |
|
|
(178 |
) |
|
|
|
(162 |
) |
|
|
|
|
(402 |
) |
|
|
|
(354 |
) |
|
| Net cash used in business acquisitions |
|
|
— |
|
|
|
|
(1 |
) |
|
|
|
|
(1 |
) |
|
|
|
(202 |
) |
|
| Net proceeds from corporate-owned life insurance policies |
|
|
1 |
|
|
|
|
— |
|
|
|
|
|
40 |
|
|
|
|
23 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
14 |
|
|
|
|
1 |
|
|
|
|
|
18 |
|
|
|
|
22 |
|
|
| Finance receivables repaid |
|
|
— |
|
|
|
|
(1 |
) |
|
|
|
|
26 |
|
|
|
|
20 |
|
|
| Other investing activities, net |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
2 |
|
|
|
|
44 |
|
|
| Net cash from investing activities |
|
|
(163 |
) |
|
|
|
(163 |
) |
|
|
|
|
(317 |
) |
|
|
|
(447 |
) |
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Increase/(decrease) in short-term debt |
|
|
— |
|
|
|
|
1 |
|
|
|
|
|
— |
|
|
|
|
(14 |
) |
|
| Net proceeds from long-term debt |
|
|
347 |
|
|
|
|
— |
|
|
|
|
|
348 |
|
|
|
|
— |
|
|
| Principal payments on long-term debt and nonrecourse debt |
|
|
(3 |
) |
|
|
|
(7 |
) |
|
|
|
|
(44 |
) |
|
|
|
(234 |
) |
|
| Purchases of Textron common stock |
|
|
(283 |
) |
|
|
|
(228 |
) |
|
|
|
|
(1,168 |
) |
|
|
|
(867 |
) |
|
| Dividends paid |
|
|
(4 |
) |
|
|
|
(4 |
) |
|
|
|
|
(16 |
) |
|
|
|
(17 |
) |
|
| Other financing activities, net |
|
|
7 |
|
|
|
|
8 |
|
|
|
|
|
67 |
|
|
|
|
41 |
|
|
| Net cash from financing activities |
|
|
64 |
|
|
|
|
(230 |
) |
|
|
|
|
(813 |
) |
|
|
|
(1,091 |
) |
|
| Total cash flows from continuing operations |
|
|
450 |
|
|
|
|
134 |
|
|
|
|
|
137 |
|
|
|
|
(48 |
) |
|
| Total cash flows from discontinued operations |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
|
(2 |
) |
|
| Effect of exchange rate changes on cash and equivalents |
|
|
15 |
|
|
|
|
17 |
|
|
|
|
|
10 |
|
|
|
|
(32 |
) |
|
| Net change in cash and equivalents |
|
|
465 |
|
|
|
|
151 |
|
|
|
|
|
146 |
|
|
|
|
(82 |
) |
|
| Cash and equivalents at beginning of period |
|
|
1,716 |
|
|
|
|
1,884 |
|
|
|
|
|
2,035 |
|
|
|
|
2,117 |
|
|
| Cash and equivalents at end of period |
|
$ |
2,181 |
|
|
|
$ |
2,035 |
|
|
|
|
$ |
2,181 |
|
|
|
$ |
2,035 |
|
|
TEXTRON INC.
