PROVIDENCE, R.I.--(BUSINESS WIRE)--
Textron Inc. (NYSE: TXT) today reported third quarter 2014 income from
continuing operations of $0.57 per share, up 62.9 percent from $0.35 per
share in the third quarter of 2013.
Total revenues in the quarter were $3.4 billion, up from $2.9 billion in
the third quarter of 2013, an 18.1 percent increase. Beechcraft, which
was acquired in March, 2014, contributed $398 million to the increase.
Textron segment profit in the quarter was $293 million, up $85 million
from the third quarter of 2013.
Third quarter 2014 manufacturing cash flow before pension contributions
was $144 million compared to $269 million during the third quarter of
2013. The company contributed $17 million to its pension plans during
the third quarter.
“Revenues at Textron Aviation, Industrial and Bell were up during the
quarter, primarily reflecting the success of our new product investment
and acquisition strategies,” said Textron Chairman and CEO
Scott C.
Donnelly
. Donnelly continued, “Operationally, we achieved significant
margin improvement in the quarter at Textron Aviation, reflecting higher
volumes and better performance. Bell also had improved performance,
leading to an increase in quarterly margins compared to last year.”
Textron third quarter 2014 results included $3 million ($0.01 per share,
after-tax) in restructuring costs, recorded as part of Acquisition and
Restructuring Costs, and Textron Aviation segment profit reflected a $10
million ($0.02 per share, after tax) negative impact from fair value
step-up adjustments to Beechcraft inventories sold during the quarter.
Outlook
Textron increased its 2014 earnings per share from continuing operations
guidance to a range of $2.05 to $2.15 and increased its expectation for
cash flow from continuing operations of the manufacturing group before
pension contributions to a range of $700 million to $800 million with
expected pension contributions of about $83 million.
Third Quarter Segment Results
Textron Aviation
Revenues at Textron Aviation were up $487 million, reflecting the impact
of the Beechcraft acquisition and higher jet deliveries. Textron
Aviation delivered 33 new jets in the quarter, up from 25 jets in last
year’s third quarter, and 30 King Air turboprops.
Textron Aviation recorded a segment profit of $62 million in the third
quarter compared to a loss of $23 million a year ago in our Cessna
segment. The improvement reflects the impact of the Beechcraft
acquisition, higher volumes and favorable pricing and inflation.
Textron Aviation backlog at the end of the third quarter was $1.4
billion, approximately flat with the end of the second quarter.
Bell
Bell revenues increased $20 million, primarily the result of higher V-22
program volume, partially offset by lower H-1 and commercial deliveries.
Bell delivered 12 V-22’s and 4 H-1’s in the quarter, compared to 10
V-22’s and 7 H-1’s in last year’s third quarter and 41 commercial
helicopters, compared to 54 units last year.
Segment profit increased $15 million primarily due to favorable
performance.
Bell backlog at the end of the third quarter was $5.3 billion, down $499
million from the end of the second quarter.
Textron Systems
Revenues at Textron Systems decreased $47 million, reflecting lower
Marine and Land Systems volumes, partially offset by the impact of
acquisitions.
Segment profit was down $8 million, primarily reflecting the lower
volumes.
Textron Systems’ backlog at the end of the third quarter was $3.1
billion, up $119 million from the end of the second quarter.
Industrial
Industrial revenues increased $74 million due to the impact of
acquisitions and higher overall volumes. Segment profit increased $1
million reflecting the higher volumes offset by an unfavorable mix of
revenues in the quarter.
Finance
Finance segment revenues decreased $8 million primarily due to gains on
finance receivable dispositions during the third quarter of 2013.
Segment profit decreased $8 million primarily due to the prior year
impacts of loan loss reversals and gains on the finance receivables
dispositions, partially offset by lower administrative expenses.
Conference Call Information
Textron will host its conference call today, October 17, 2014 at 8:00
a.m. (Eastern) to discuss its results and outlook. The call will be
available via webcast at www.textron.com
or by direct dial at (800) 230-1092 in the U.S. or (612) 234-9960
outside of the U.S. (request the Textron Earnings Call).
In addition, the call will be recorded and available for playback
beginning at 10:30 a.m. (Eastern) on Friday, October 17, 2014 by dialing
(320) 365-3844; Access Code: 307263.
A package containing key data that will be covered on today’s call can
be found in the Investor Relations section of the company’s website at www.textron.com.
About Textron Inc.
Textron Inc. is a multi-industry company that leverages its global
network of aircraft, defense, industrial and finance businesses to
provide customers with innovative solutions and services. Textron is
known around the world for its powerful brands such as Bell Helicopter,
Cessna, Beechcraft, Hawker, Jacobsen, Kautex, Lycoming, E-Z-GO,
Greenlee, and Textron Systems. For more information visit: www.textron.com.
Non-GAAP Measures
Manufacturing cash flow before pension contributions is a non-GAAP
measure that is defined and reconciled to GAAP in an attachment to this
release.
Forward-looking Information
Certain statements in this release and other oral and written statements
made by us from time to time are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements, which may describe strategies, goals,
outlook or other non-historical matters, or project revenues, income,
returns or other financial measures, often include words such as
“believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,”
“guidance,” “project,” “target,” “potential,” “will,” “should,” “could,”
“likely” or “may” and similar expressions intended to identify
forward-looking statements. These statements are only predictions and
involve known and unknown risks, uncertainties, and other factors that
may cause our actual results to differ materially from those expressed
or implied by such forward-looking statements. Given these
uncertainties, you should not place undue reliance on these
forward-looking statements. Forward-looking statements speak only as of
the date on which they are made, and we undertake no obligation to
update or revise any forward-looking statements. In addition to those
factors described under “Risk Factors” in our Annual Report on Form
10-K, among the factors that could cause actual results to differ
materially from past and projected future results are the following:
interruptions in the U.S. Government’s ability to fund its activities
and/or pay its obligations; changing priorities or reductions in the
U.S. Government defense budget, including those related to military
operations in foreign countries; our ability to perform as anticipated
and to control costs under contracts with the U.S. Government; the U.S.
Government’s ability to unilaterally modify or terminate its contracts
with us for the U.S. Government’s convenience or for our failure to
perform, to change applicable procurement and accounting policies, or,
under certain circumstances, to withhold payment or suspend or debar us
as a contractor eligible to receive future contract awards; changes in
foreign military funding priorities or budget constraints and
determinations, or changes in government regulations or policies on the
export and import of military and commercial products; volatility in the
global economy or changes in worldwide political conditions that
adversely impact demand for our products; volatility in interest rates
or foreign exchange rates; risks related to our international business,
including establishing and maintaining facilities in locations around
the world and relying on joint venture partners, subcontractors,
suppliers, representatives, consultants and other business partners in
connection with international business, including in emerging market
countries; our Finance segment’s ability to maintain portfolio credit
quality or to realize full value of receivables; performance issues with
key suppliers or subcontractors; legislative or regulatory actions, both
domestic and foreign, impacting our operations or demand for our
products; our ability to control costs and successfully implement
various cost-reduction activities; the efficacy of research and
development investments to develop new products or unanticipated
expenses in connection with the launching of significant new products or
programs; the timing of our new product launches or certifications of
our new aircraft products; our ability to keep pace with our competitors
in the introduction of new products and upgrades with features and
technologies desired by our customers; increases in pension expenses or
employee and retiree medical benefits; continued demand softness or
volatility in the markets in which we do business; difficulty or
unanticipated expenses in connection with integrating acquired
businesses; the risk that anticipated synergies and opportunities as a
result of acquisitions will not be realized or the risk that
acquisitions do not perform as planned, including, for example, the risk
that acquired businesses will not achieve revenue projections.
|
TEXTRON INC.
|
Revenues by Segment and Reconciliation of Segment Profit to Net
Income
|
Three and Nine Months Ended September 27, 2014 and September 28,
2013
|
(Dollars in millions, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
September 27, 2014
|
|
|
|
September 28, 2013
|
|
|
|
September 27, 2014
|
|
|
|
September 28, 2013
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANUFACTURING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Textron Aviation
|
|
|
|
|
|
$
|
1,080
|
|
|
|
$
|
593
|
|
|
|
$
|
3,048
|
|
|
|
$
|
1,861
|
Bell
|
|
|
|
|
|
|
1,182
|
|
|
|
|
1,162
|
|
|
|
|
3,174
|
|
|
|
|
3,136
|
Textron Systems
|
|
|
|
|
|
|
358
|
|
|
|
|
405
|
|
|
|
|
1,003
|
|
|
|
|
1,256
|
Industrial
|
|
|
|
|
|
|
785
|
|
|
|
|
711
|
|
|
|
|
2,476
|
|
|
|
|
2,239
|
|
|
|
|
|
|
|
3,405
|
|
|
|
|
2,871
|
|
|
|
|
9,701
|
|
|
|
|
8,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCE
|
|
|
|
|
|
|
25
|
|
|
|
|
33
|
|
|
|
|
81
|
|
|
|
|
106
|
Total revenues
|
|
|
|
|
|
$
|
3,430
|
|
|
|
$
|
2,904
|
|
|
|
$
|
9,782
|
|
|
|
$
|
8,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANUFACTURING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Textron Aviation (a) (b)
|
|
|
|
|
|
$
|
62
|
|
|
|
$
|
(23)
|
|
|
|
$
|
104
|
|
|
|
$
|
(81)
|
Bell
|
|
|
|
|
|
|
146
|
|
|
|
|
131
|
|
|
|
|
383
|
|
|
|
|
395
|
Textron Systems
|
|
|
|
|
|
|
27
|
|
|
|
|
35
|
|
|
|
|
100
|
|
|
|
|
107
|
Industrial
|
|
|
|
|
|
|
53
|
|
|
|
|
52
|
|
|
|
|
213
|
|
|
|
|
188
|
|
|
|
|
|
|
|
288
|
|
|
|
|
195
|
|
|
|
|
800
|
|
|
|
|
609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCE
|
|
|
|
|
|
|
5
|
|
|
|
|
13
|
|
|
|
|
16
|
|
|
|
|
47
|
Segment Profit
|
|
|
|
|
|
|
293
|
|
|
|
|
208
|
|
|
|
|
816
|
|
|
|
|
656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses and other, net
|
|
|
|
|
|
|
(22)
|
|
|
|
|
(34)
|
|
|
|
|
(103)
|
|
|
|
|
(109)
|
Interest expense, net for Manufacturing group
|
|
|
|
|
|
|
(37)
|
|
|
|
|
(29)
|
|
|
|
|
(108)
|
|
|
|
|
(96)
|
Acquisition and restructuring costs (c)
|
|
|
|
|
|
|
(3)
|
|
|
|
|
-
|
|
|
|
|
(39)
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
|
|
|
|
231
|
|
|
|
|
145
|
|
|
|
|
566
|
|
|
|
|
451
|
Income tax expense
|
|
|
|
|
|
|
(71)
|
|
|
|
|
(47)
|
|
|
|
|
(174)
|
|
|
|
|
(124)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
|
|
|
160
|
|
|
|
|
98
|
|
|
|
|
392
|
|
|
|
|
327
|
Discontinued operations, net of income taxes
|
|
|
|
|
|
|
(1)
|
|
|
|
|
1
|
|
|
|
|
(4)
|
|
|
|
|
4
|
Net income
|
|
|
|
|
|
$
|
159
|
|
|
|
$
|
99
|
|
|
|
$
|
388
|
|
|
|
$
|
331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
|
|
$
|
0.57
|
|
|
|
$
|
0.35
|
|
|
|
$
|
1.39
|
|
|
|
$
|
1.15
|
Discontinued operations, net of income taxes
|
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(0.02)
|
|
|
|
|
0.01
|
Net income
|
|
|
|
|
|
$
|
0.57
|
|
|
|
$
|
0.35
|
|
|
|
$
|
1.37
|
|
|
|
$
|
1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted average shares outstanding
|
|
|
|
|
|
|
281,030,000
|
|
|
|
|
281,710,000
|
|
|
|
|
282,424,000
|
|
|
|
|
284,743,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The three and nine months ended September 27, 2014 include
amortization of $10 million and $55 million, respectively, related to
fair value step-up adjustments of acquired inventories sold during the
periods.
(b) Includes $28 million in severance costs for the nine months ended
September 28, 2013.
(c) Acquisition and restructuring costs for the three and nine months
ended September 27, 2014 include $3 million and $28 million,
respectively, of restructuring costs incurred related to the acquisition
of Beech Holdings, LLC, the parent of Beechcraft Corporation, which was
completed on March 14, 2014. Transaction costs of $11 million related to
the Beechcraft acquisition are also included in the nine months ended
September 27, 2014.
|
Textron Inc.
|
Condensed Consolidated Balance Sheets
|
(In millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
September 27,
2014
|
|
|
|
|
December 28,
2013
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
|
|
|
|
$
|
430
|
|
|
|
|
$
|
1,163
|
Accounts receivable, net
|
|
|
|
|
|
|
1,150
|
|
|
|
|
|
979
|
Inventories
|
|
|
|
|
|
|
4,081
|
|
|
|
|
|
2,963
|
Other current assets
|
|
|
|
|
|
|
539
|
|
|
|
|
|
467
|
Net property, plant and equipment
|
|
|
|
|
|
|
2,442
|
|
|
|
|
|
2,215
|
Goodwill
|
|
|
|
|
|
|
2,020
|
|
|
|
|
|
1,735
|
Other assets
|
|
|
|
|
|
|
2,509
|
|
|
|
|
|
1,697
|
Finance group assets
|
|
|
|
|
|
|
1,568
|
|
|
|
|
|
1,725
|
Total Assets
|
|
|
|
|
|
$
|
14,739
|
|
|
|
|
$
|
12,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current portion of long-term debt
|
|
|
|
|
|
$
|
383
|
|
|
|
|
$
|
8
|
Other current liabilities
|
|
|
|
|
|
|
3,510
|
|
|
|
|
|
2,995
|
Other liabilities
|
|
|
|
|
|
|
2,451
|
|
|
|
|
|
2,118
|
Long-term debt
|
|
|
|
|
|
|
2,474
|
|
|
|
|
|
1,923
|
Finance group liabilities
|
|
|
|
|
|
|
1,349
|
|
|
|
|
|
1,516
|
Total Liabilities
|
|
|
|
|
|
|
10,167
|
|
|
|
|
|
8,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders' Equity
|
|
|
|
|
|
|
4,572
|
|
|
|
|
|
4,384
|
Total Liabilities and Shareholders' Equity
|
|
|
|
|
|
$
|
14,739
|
|
|
|
|
$
|
12,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEXTRON INC.
|
MANUFACTURING GROUP
|
Condensed Schedule of Cash Flows and Manufacturing Cash Flow GAAP
to Non-GAAP Reconciliations
|
(In millions)
|
(Unaudited)
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
September 27,
2014
|
|
September 28,
2013
|
|
|
September 27,
2014
|
|
September 28,
2013
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
157
|
|
|
$
|
90
|
|
|
|
$
|
382
|
|
|
$
|
296
|
|
Depreciation and amortization
|
|
|
108
|
|
|
|
89
|
|
|
|
|
315
|
|
|
|
271
|
|
Changes in working capital
|
|
|
(67
|
)
|
|
|
150
|
|
|
|
|
(205
|
)
|
|
|
(888
|
)
|
Changes in other assets and liabilities and non-cash items
|
|
|
10
|
|
|
|
32
|
|
|
|
|
(1
|
)
|
|
|
(89
|
)
|
Dividends received from TFC
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
30
|
|
Capital contributions paid to TFC
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(1
|
)
|
Net cash from operating activities of continuing operations
|
|
|
208
|
|
|
|
361
|
|
|
|
|
491
|
|
|
|
(381
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Net cash used in acquisitions
|
|
|
(30
|
)
|
|
|
-
|
|
|
|
|
(1,580
|
)
|
|
|
(53
|
)
|
Capital expenditures
|
|
|
(83
|
)
|
|
|
(110
|
)
|
|
|
|
(255
|
)
|
|
|
(300
|
)
|
Proceeds from the sale of property, plant and equipment
|
|
|
2
|
|
|
|
2
|
|
|
|
|
7
|
|
|
|
19
|
|
Other investing activities, net
|
|
|
(9
|
)
|
|
|
-
|
|
|
|
|
(19
|
)
|
|
|
-
|
|
Net cash from investing activities
|
|
|
(120
|
)
|
|
|
(108
|
)
|
|
|
|
(1,847
|
)
|
|
|
(334
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt
|
|
|
-
|
|
|
|
-
|
|
|
|
|
1,093
|
|
|
|
150
|
|
Increase (decrease) in short-term debt
|
|
|
25
|
|
|
|
(270
|
)
|
|
|
|
25
|
|
|
|
96
|
|
Principal payments on long-term debt
|
|
|
(200
|
)
|
|
|
-
|
|
|
|
|
(201
|
)
|
|
|
(312
|
)
|
Purchases of Textron common stock
|
|
|
(152
|
)
|
|
|
-
|
|
|
|
|
(302
|
)
|
|
|
-
|
|
Settlement of convertible debt
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(215
|
)
|
Proceeds from settlement of capped call
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
75
|
|
Other financing activities, net
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
|
|
16
|
|
|
|
-
|
|
Net cash from financing activities
|
|
|
(330
|
)
|
|
|
(272
|
)
|
|
|
|
631
|
|
|
|
(206
|
)
|
Total cash flows from continuing operations
|
|
|
(242
|
)
|
|
|
(19
|
)
|
|
|
|
(725
|
)
|
|
|
(921
|
)
|
Total cash flows from discontinued operations
|
|
|
(1
|
)
|
|
|
2
|
|
|
|
|
(3
|
)
|
|
|
(5
|
)
|
Effect of exchange rate changes on cash and equivalents
|
|
|
(7
|
)
|
|
|
2
|
|
|
|
|
(5
|
)
|
|
|
(8
|
)
|
Net change in cash and equivalents
|
|
|
(250
|
)
|
|
|
(15
|
)
|
|
|
|
(733
|
)
|
|
|
(934
|
)
|
Cash and equivalents at beginning of period
|
|
|
680
|
|
|
|
459
|
|
|
|
|
1,163
|
|
|
|
1,378
|
|
Cash and equivalents at end of period
|
|
$
|
430
|
|
|
$
|
444
|
|
|
|
$
|
430
|
|
|
$
|
444
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing Cash Flow GAAP to Non-GAAP Reconciliations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from operating activities of continuing operations - GAAP
|
|
$
|
208
|
|
|
$
|
361
|
|
|
|
$
|
491
|
|
|
$
|
(381
|
)
|
Less: Capital expenditures
|
|
|
(83
|
)
|
|
|
(110
|
)
|
|
|
|
(255
|
)
|
|
|
(300
|
)
|
Dividends received from TFC
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(30
|
)
|
Plus: Capital contributions paid to TFC
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
1
|
|
Proceeds from the sale of property, plant and equipment
|
|
|
2
|
|
|
|
2
|
|
|
|
|
7
|
|
|
|
19
|
|
Total pension contributions
|
|
|
17
|
|
|
|
16
|
|
|
|
|
61
|
|
|
|
173
|
|
Manufacturing cash flow before pension contributions- Non-GAAP
|
|
$
|
144
|
|
|
$
|
269
|
|
|
|
$
|
304
|
|
|
$
|
(518
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 Outlook
|
Net cash from operating activities of continuing operations - GAAP
|
|
|
|
|
|
$ 1,075 - $ 1,175
|
|
Less: Capital expenditures
|
|
|
|
|
|
|
(465)
|
|
Plus: Proceeds from the sale of property, plant and equipment
|
|
|
|
|
|
|
7
|
|
Total pension contributions
|
|
|
|
|
|
|
83
|
|
Manufacturing cash flow before pension contributions- Non-GAAP
|
|
|
|
|
|
|
$ 700 - $ 800
|
|
Free cash flow is a measure generally used by investors, analysts and
management to gauge a company’s ability to generate cash from operations
in excess of that necessary to be reinvested to sustain and grow the
business and fund its obligations. Our definition of
Manufacturing free cash flow adjusts net cash from operating activities
of continuing operations for dividends received from TFC, capital
contributions provided under the Support Agreement and debt agreements,
capital expenditures, proceeds from the sale of property, plant and
equipment and contributions to our pension plans. We believe that
our calculation provides a relevant measure of liquidity and is a useful
basis for assessing our ability to fund operations and obligations. This
measure is not a financial measure under GAAP and should be used in
conjunction with GAAP cash measures provided in our Consolidated
Statements of Cash Flows.
|
TEXTRON INC.
|
Condensed Consolidated Schedule of Cash Flows
|
(In millions)
|
(Unaudited)
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
September 27,
2014
|
|
September 28,
2013
|
|
September 27,
2014
|
|
September 28,
2013
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
$
|
160
|
|
|
$
|
98
|
|
|
$
|
392
|
|
|
$
|
327
|
|
Depreciation and amortization
|
|
|
|
|
111
|
|
|
|
93
|
|
|
|
325
|
|
|
|
285
|
|
Changes in working capital
|
|
|
|
|
(51
|
)
|
|
|
117
|
|
|
|
(128
|
)
|
|
|
(624
|
)
|
Changes in other assets and liabilities and non-cash items
|
|
|
|
|
(4
|
)
|
|
|
51
|
|
|
|
(20
|
)
|
|
|
(91
|
)
|
Net cash from operating activities of continuing operations
|
|
|
|
|
216
|
|
|
|
359
|
|
|
|
569
|
|
|
|
(103
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
Net cash used in acquisitions
|
|
|
|
|
(30
|
)
|
|
|
-
|
|
|
|
(1,580
|
)
|
|
|
(53
|
)
|
Capital expenditures
|
|
|
|
|
(83
|
)
|
|
|
(110
|
)
|
|
|
(255
|
)
|
|
|
(300
|
)
|
Finance receivables repaid
|
|
|
|
|
19
|
|
|
|
45
|
|
|
|
77
|
|
|
|
157
|
|
Proceeds from sales of receivables and other finance assets
|
|
|
|
|
24
|
|
|
|
99
|
|
|
|
37
|
|
|
|
152
|
|
Other investing activities, net
|
|
|
|
|
(7
|
)
|
|
|
3
|
|
|
|
(4
|
)
|
|
|
13
|
|
Net cash from investing activities
|
|
|
|
|
(77
|
)
|
|
|
37
|
|
|
|
(1,725
|
)
|
|
|
(31
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt
|
|
|
|
|
36
|
|
|
|
10
|
|
|
|
1,187
|
|
|
|
412
|
|
Increase (decrease) in short-term debt
|
|
|
|
|
25
|
|
|
|
(270
|
)
|
|
|
25
|
|
|
|
96
|
|
Principal payments on long-term and nonrecourse debt
|
|
|
|
|
(341
|
)
|
|
|
(72
|
)
|
|
|
(462
|
)
|
|
|
(997
|
)
|
Purchases of Textron common stock
|
|
|
|
|
(152
|
)
|
|
|
-
|
|
|
|
(302
|
)
|
|
|
-
|
|
Settlement of convertible debt
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(215
|
)
|
Proceeds from settlement of capped call
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
75
|
|
Other financing activities, net
|
|
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
|
16
|
|
|
|
-
|
|
Net cash from financing activities
|
|
|
|
|
(435
|
)
|
|
|
(334
|
)
|
|
|
464
|
|
|
|
(629
|
)
|
Total cash flows from continuing operations
|
|
|
|
|
(296
|
)
|
|
|
62
|
|
|
|
(692
|
)
|
|
|
(763
|
)
|
Total cash flows from discontinued operations
|
|
|
|
|
(1
|
)
|
|
|
2
|
|
|
|
(3
|
)
|
|
|
(5
|
)
|
Effect of exchange rate changes on cash and equivalents
|
|
|
|
|
(7
|
)
|
|
|
2
|
|
|
|
(5
|
)
|
|
|
(8
|
)
|
Net change in cash and equivalents
|
|
|
|
|
(304
|
)
|
|
|
66
|
|
|
|
(700
|
)
|
|
|
(776
|
)
|
Cash and equivalents at beginning of period
|
|
|
|
|
815
|
|
|
|
571
|
|
|
|
1,211
|
|
|
|
1,413
|
|
Cash and equivalents at end of period
|
|
|
|
$
|
511
|
|
|
$
|
637
|
|
|
$
|
511
|
|
|
$
|
637
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: Textron