TEXTRON INC. |
|||||||||||||||||||||
Revenues by Segment and Reconciliation of Segment Profit to Net Income |
|||||||||||||||||||||
(Dollars in millions, except per share amounts) |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
July 1, |
July 2, |
|
July 1, |
July 2, |
||||||||||||||||
2023 |
2022 |
2023 |
2022 |
||||||||||||||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MANUFACTURING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Textron Aviation |
|
$ |
1,362 |
|
|
|
$ |
1,284 |
|
|
|
|
$ |
2,511 |
|
|
|
$ |
2,324 |
|
|
Bell |
|
|
701 |
|
|
|
|
687 |
|
|
|
|
|
1,322 |
|
|
|
|
1,521 |
|
|
Textron Systems |
|
|
306 |
|
|
|
|
293 |
|
|
|
|
|
612 |
|
|
|
|
566 |
|
|
| Industrial |
|
|
1,026 |
|
|
|
|
871 |
|
|
|
|
|
1,958 |
|
|
|
|
1,709 |
|
|
| Textron eAviation (a) |
|
|
11 |
|
|
|
|
5 |
|
|
|
|
|
15 |
|
|
|
|
5 |
|
|
|
|
|
|
3,406 |
|
|
|
|
3,140 |
|
|
|
|
|
6,418 |
|
|
|
|
6,125 |
|
|
| FINANCE |
|
|
18 |
|
|
|
|
14 |
|
|
|
|
|
30 |
|
|
|
|
30 |
|
|
| Total revenues |
|
$ |
3,424 |
|
|
|
$ |
3,154 |
|
|
|
|
$ |
6,448 |
|
|
|
$ |
6,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| SEGMENT PROFIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| MANUFACTURING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Textron Aviation |
|
$ |
171 |
|
|
|
$ |
149 |
|
|
|
|
$ |
296 |
|
|
|
$ |
259 |
|
|
| Bell |
|
|
65 |
|
|
|
|
54 |
|
|
|
|
|
125 |
|
|
|
|
145 |
|
|
| Textron Systems |
|
|
37 |
|
|
|
|
38 |
|
|
|
|
|
71 |
|
|
|
|
66 |
|
|
| Industrial |
|
|
79 |
|
|
|
|
37 |
|
|
|
|
|
120 |
|
|
|
|
76 |
|
|
| Textron eAviation (a) |
|
|
(12 |
) |
|
|
|
(7 |
) |
|
|
|
|
(21 |
) |
|
|
|
(7 |
) |
|
|
|
|
|
340 |
|
|
|
|
271 |
|
|
|
|
|
591 |
|
|
|
|
539 |
|
|
| FINANCE |
|
|
12 |
|
|
|
|
10 |
|
|
|
|
|
20 |
|
|
|
|
19 |
|
|
| Segment profit (b) |
|
|
352 |
|
|
|
|
281 |
|
|
|
|
|
611 |
|
|
|
|
558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Corporate expenses and other, net |
|
|
(21 |
) |
|
|
|
(20 |
) |
|
|
|
|
(60 |
) |
|
|
|
(72 |
) |
|
| Interest expense, net for Manufacturing group |
|
|
(16 |
) |
|
|
|
(28 |
) |
|
|
|
|
(33 |
) |
|
|
|
(56 |
) |
|
| LIFO inventory provision |
|
|
(35 |
) |
|
|
|
(17 |
) |
|
|
|
|
(60 |
) |
|
|
|
(29 |
) |
|
| Intangible asset amortization |
|
|
(10 |
) |
|
|
|
(13 |
) |
|
|
|
|
(20 |
) |
|
|
|
(26 |
) |
|
| Non-service components of pension and postretirement income, net |
|
|
59 |
|
|
|
|
60 |
|
|
|
|
|
118 |
|
|
|
|
120 |
|
|
| Income from continuing operations before income taxes |
|
|
329 |
|
|
|
|
263 |
|
|
|
|
|
556 |
|
|
|
|
495 |
|
|
| Income tax expense |
|
|
(66 |
) |
|
|
|
(45 |
) |
|
|
|
|
(102 |
) |
|
|
|
(84 |
) |
|
| Income from continuing operations |
|
$ |
263 |
|
|
|
$ |
218 |
|
|
|
|
$ |
454 |
|
|
|
$ |
411 |
|
|
| Discontinued operations, net of income taxes |
|
|
— |
|
|
|
|
(1 |
) |
|
|
|
|
— |
|
|
|
|
(1 |
) |
|
| Net income |
|
$ |
263 |
|
|
|
$ |
217 |
|
|
|
|
$ |
454 |
|
|
|
$ |
410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations |
|
$ |
1.30 |
|
|
|
$ |
1.00 |
|
|
|
|
$ |
2.22 |
|
|
|
$ |
1.88 |
|
|
| Discontinued operations, net of income taxes |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
— |
|
|
| Diluted earnings per share |
|
$ |
1.30 |
|
|
|
$ |
1.00 |
|
|
|
|
$ |
2.22 |
|
|
|
$ |
1.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Diluted average shares outstanding |
|
|
202,509,000 |
|
|
|
|
216,658,000 |
|
|
|
|
|
204,760,000 |
|
|
|
|
218,133,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations and Diluted earnings per share (EPS) GAAP to Non-GAAP reconciliation |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
July 1, |
|
|
July 2, |
|
|
|
July 1, |
|
|
July 2, |
|
||||||||
| 2023 |
2022 |
2023 |
2022 |
||||||||||||||||||
| Income from continuing operations - GAAP |
|
$ |
263 |
|
|
|
$ |
218 |
|
|
|
|
$ |
454 |
|
|
|
$ |
411 |
|
|
| Add: LIFO inventory provision, net of tax |
|
|
26 |
|
|
|
|
13 |
|
|
|
|
|
45 |
|
|
|
|
22 |
|
|
| Intangible asset amortization, net of tax |
|
|
7 |
|
|
|
|
9 |
|
|
|
|
|
15 |
|
|
|
|
19 |
|
|
| Adjusted income from continuing operations - Non-GAAP (b) |
|
$ |
296 |
|
|
|
$ |
240 |
|
|
|
|
$ |
514 |
|
|
|
$ |
452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations - GAAP |
|
$ |
1.30 |
|
|
|
$ |
1.00 |
|
|
|
|
$ |
2.22 |
|
|
|
$ |
1.88 |
|
|
| Add: LIFO inventory provision, net of tax |
|
|
0.13 |
|
|
|
|
0.06 |
|
|
|
|
|
0.22 |
|
|
|
|
0.10 |
|
|
| Intangible asset amortization, net of tax |
|
|
0.03 |
|
|
|
|
0.05 |
|
|
|
|
|
0.07 |
|
|
|
|
0.09 |
|
|
| Adjusted income from continuing operations - Non-GAAP (b) |
|
$ |
1.46 |
|
|
|
$ |
1.11 |
|
|
|
|
$ |
2.51 |
|
|
|
$ |
2.07 |
|
|
| (a) |
In the second quarter of 2022, we acquired Pipistrel, a manufacturer of electrically powered aircraft and formed a new reporting segment, Textron eAviation. This segment combines the operating results of Pipistrel along with other research and development initiatives related to sustainable aviation solutions. |
|
| (b) |
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" attached to this release. |
|
| TEXTRON INC. |
||||
| Condensed Consolidated Balance Sheets |
||||
| (In millions) |
||||
| (Unaudited) |
||||
|
|
July 1, |
December 31, |
||
| 2023 |
2022 |
|||
| Assets |
|
|
||
| Cash and equivalents |
$ |
1,695 |
$ |
1,963 |
| Accounts receivable, net |
|
953 |
|
855 |
| Inventories |
|
4,108 |
|
3,550 |
| Other current assets |
|
829 |
|
1,033 |
| Net property, plant and equipment |
|
2,487 |
|
2,523 |
| Goodwill |
|
2,291 |
|
2,283 |
| Other assets |
|
3,472 |
|
3,422 |
| Finance group assets |
|
650 |
|
664 |
| Total Assets |
$ |
16,485 |
$ |
16,293 |
|
|
|
|
||
|
|
|
|
||
| Liabilities and Shareholders' Equity |
|
|
||
| Current portion of long-term debt |
$ |
357 |
$ |
7 |
| Accounts payable |
|
1,227 |
|
1,018 |
| Other current liabilities |
|
2,820 |
|
2,645 |
| Other liabilities |
|
1,797 |
|
1,879 |
| Long-term debt |
|
2,825 |
|
3,175 |
| Finance group liabilities |
|
425 |
|
456 |
| Total Liabilities |
|
9,451 |
|
9,180 |
|
|
|
|
||
| Total Shareholders' Equity |
|
7,034 |
|
7,113 |
| Total Liabilities and Shareholders' Equity |
$ |
16,485 |
$ |
16,293 |
| TEXTRON INC. |
|||||||||||||||||||||
| MANUFACTURING GROUP |
|||||||||||||||||||||
| Condensed Schedule of Cash Flows |
|||||||||||||||||||||
| (In millions) |
|||||||||||||||||||||
| (Unaudited) |
|||||||||||||||||||||
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
||||||||||||||
|
|
|
July 1, |
|
|
July 2, |
|
|
|
July 1, |
|
|
July 2, |
|
||||||||
| 2023 |
2022 |
2023 |
2022 |
||||||||||||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations |
|
$ |
253 |
|
|
|
$ |
210 |
|
|
|
|
$ |
438 |
|
|
|
$ |
395 |
|
|
| Depreciation and amortization |
|
|
101 |
|
|
|
|
98 |
|
|
|
|
|
193 |
|
|
|
|
191 |
|
|
| Deferred income taxes and income taxes receivable/payable |
|
|
(77 |
) |
|
|
|
(95 |
) |
|
|
|
|
(61 |
) |
|
|
|
(78 |
) |
|
| Pension, net |
|
|
(51 |
) |
|
|
|
(42 |
) |
|
|
|
|
(102 |
) |
|
|
|
(83 |
) |
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Accounts receivable, net |
|
|
(28 |
) |
|
|
|
(85 |
) |
|
|
|
|
(97 |
) |
|
|
|
(48 |
) |
|
| Inventories |
|
|
(173 |
) |
|
|
|
(70 |
) |
|
|
|
|
(553 |
) |
|
|
|
(246 |
) |
|
| Accounts payable |
|
|
(54 |
) |
|
|
|
(14 |
) |
|
|
|
|
207 |
|
|
|
|
24 |
|
|
| Other, net |
|
|
343 |
|
|
|
|
362 |
|
|
|
|
|
442 |
|
|
|
|
434 |
|
|
| Net cash from operating activities |
|
|
314 |
|
|
|
|
364 |
|
|
|
|
|
467 |
|
|
|
|
589 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Capital expenditures |
|
|
(83 |
) |
|
|
|
(66 |
) |
|
|
|
|
(145 |
) |
|
|
|
(114 |
) |
|
| Net cash used in business acquisitions |
|
|
— |
|
|
|
|
(198 |
) |
|
|
|
|
— |
|
|
|
|
(198 |
) |
|
| Net proceeds from corporate-owned life insurance policies |
|
|
18 |
|
|
|
|
23 |
|
|
|
|
|
38 |
|
|
|
|
25 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
18 |
|
|
| Net cash from investing activities |
|
|
(65 |
) |
|
|
|
(241 |
) |
|
|
|
|
(107 |
) |
|
|
|
(269 |
) |
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Decrease in short-term debt |
|
|
— |
|
|
|
|
(15 |
) |
|
|
|
|
— |
|
|
|
|
(15 |
) |
|
| Principal payments on long-term debt and nonrecourse debt |
|
|
(1 |
) |
|
|
|
(12 |
) |
|
|
|
|
(3 |
) |
|
|
|
(14 |
) |
|
| Purchases of Textron common stock |
|
|
(273 |
) |
|
|
|
(282 |
) |
|
|
|
|
(650 |
) |
|
|
|
(439 |
) |
|
| Dividends paid |
|
|
(4 |
) |
|
|
|
(4 |
) |
|
|
|
|
(8 |
) |
|
|
|
(9 |
) |
|
| Other financing activities, net |
|
|
4 |
|
|
|
|
3 |
|
|
|
|
|
26 |
|
|
|
|
28 |
|
|
| Net cash from financing activities |
|
|
(274 |
) |
|
|
|
(310 |
) |
|
|
|
|
(635 |
) |
|
|
|
(449 |
) |
|
| Total cash flows from continuing operations |
|
|
(25 |
) |
|
|
|
(187 |
) |
|
|
|
|
(275 |
) |
|
|
|
(129 |
) |
|
| Total cash flows from discontinued operations |
|
|
(1 |
) |
|
|
|
(2 |
) |
|
|
|
|
(1 |
) |
|
|
|
(2 |
) |
|
| Effect of exchange rate changes on cash and equivalents |
|
|
2 |
|
|
|
|
(25 |
) |
|
|
|
|
8 |
|
|
|
|
(27 |
) |
|
| Net change in cash and equivalents |
|
|
(24 |
) |
|
|
|
(214 |
) |
|
|
|
|
(268 |
) |
|
|
|
(158 |
) |
|
| Cash and equivalents at beginning of period |
|
|
1,719 |
|
|
|
|
1,978 |
|
|
|
|
|
1,963 |
|
|
|
|
1,922 |
|
|
| Cash and equivalents at end of period |
|
$ |
1,695 |
|
|
|
$ |
1,764 |
|
|
|
|
$ |
1,695 |
|
|
|
$ |
1,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Manufacturing cash flow GAAP to Non-GAAP reconciliation: |
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|||||||||||||||
|
|
|
July 1, |
|
|
July 2, |
|
|
|
July 1, |
|
|
July 2, |
|
||||||||
| 2023 |
2022 |
2023 |
2022 |
||||||||||||||||||
| Net cash from operating activities - GAAP |
|
$ |
314 |
|
|
|
$ |
364 |
|
|
|
|
$ |
467 |
|
|
|
$ |
589 |
|
|
| Less: Capital expenditures |
|
|
(83 |
) |
|
|
|
(66 |
) |
|
|
|
|
(145 |
) |
|
|
|
(114 |
) |
|
| Add: Total pension contributions |
|
|
11 |
|
|
|
|
11 |
|
|
|
|
|
24 |
|
|
|
|
25 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
18 |
|
|
| Manufacturing cash flow before pension contributions - Non-GAAP (a) |
|
$ |
242 |
|
|
|
$ |
309 |
|
|
|
|
$ |
346 |
|
|
|
$ |
518 |
|
|
| (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 |
|
|
Six Months Ended |
||||||||||||||||
|
|
|
July 1, |
|
|
July 2, |
|
|
|
July 1, |
|
|
July 2, |
|
||||||||
| 2023 |
2022 |
2023 |
2022 |
||||||||||||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations |
|
$ |
263 |
|
|
|
$ |
218 |
|
|
|
|
$ |
454 |
|
|
|
$ |
411 |
|
|
| Depreciation and amortization |
|
|
101 |
|
|
|
|
98 |
|
|
|
|
|
193 |
|
|
|
|
191 |
|
|
| Deferred income taxes and income taxes receivable/payable |
|
|
(81 |
) |
|
|
|
(105 |
) |
|
|
|
|
(63 |
) |
|
|
|
(86 |
) |
|
| Pension, net |
|
|
(51 |
) |
|
|
|
(42 |
) |
|
|
|
|
(102 |
) |
|
|
|
(83 |
) |
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Accounts receivable, net |
|
|
(28 |
) |
|
|
|
(85 |
) |
|
|
|
|
(97 |
) |
|
|
|
(48 |
) |
|
| Inventories |
|
|
(173 |
) |
|
|
|
(70 |
) |
|
|
|
|
(553 |
) |
|
|
|
(246 |
) |
|
| Accounts payable |
|
|
(54 |
) |
|
|
|
(14 |
) |
|
|
|
|
207 |
|
|
|
|
24 |
|
|
| Captive finance receivables, net |
|
|
(21 |
) |
|
|
|
17 |
|
|
|
|
|
(15 |
) |
|
|
|
35 |
|
|
| Other, net |
|
|
341 |
|
|
|
|
359 |
|
|
|
|
|
436 |
|
|
|
|
417 |
|
|
| Net cash from operating activities |
|
|
297 |
|
|
|
|
376 |
|
|
|
|
|
460 |
|
|
|
|
615 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Capital expenditures |
|
|
(83 |
) |
|
|
|
(66 |
) |
|
|
|
|
(145 |
) |
|
|
|
(114 |
) |
|
| Net cash used in business acquisitions |
|
|
— |
|
|
|
|
(198 |
) |
|
|
|
|
— |
|
|
|
|
(198 |
) |
|
| Net proceeds from corporate-owned life insurance policies |
|
|
18 |
|
|
|
|
23 |
|
|
|
|
|
38 |
|
|
|
|
25 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
18 |
|
|
| Finance receivables repaid |
|
|
7 |
|
|
|
|
8 |
|
|
|
|
|
19 |
|
|
|
|
21 |
|
|
| Other investing activities, net |
|
|
1 |
|
|
|
|
1 |
|
|
|
|
|
2 |
|
|
|
|
44 |
|
|
| Net cash from investing activities |
|
|
(57 |
) |
|
|
|
(232 |
) |
|
|
|
|
(86 |
) |
|
|
|
(204 |
) |
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Decrease in short-term debt |
|
|
— |
|
|
|
|
(15 |
) |
|
|
|
|
— |
|
|
|
|
(15 |
) |
|
| Principal payments on long-term debt and nonrecourse debt |
|
|
(17 |
) |
|
|
|
(104 |
) |
|
|
|
|
(34 |
) |
|
|
|
(223 |
) |
|
| Purchases of Textron common stock |
|
|
(273 |
) |
|
|
|
(282 |
) |
|
|
|
|
(650 |
) |
|
|
|
(439 |
) |
|
| Dividends paid |
|
|
(4 |
) |
|
|
|
(4 |
) |
|
|
|
|
(8 |
) |
|
|
|
(9 |
) |
|
| Other financing activities, net |
|
|
4 |
|
|
|
|
3 |
|
|
|
|
|
26 |
|
|
|
|
28 |
|
|
| Net cash from financing activities |
|
|
(290 |
) |
|
|
|
(402 |
) |
|
|
|
|
(666 |
) |
|
|
|
(658 |
) |
|
| Total cash flows from continuing operations |
|
|
(50 |
) |
|
|
|
(258 |
) |
|
|
|
|
(292 |
) |
|
|
|
(247 |
) |
|
| Total cash flows from discontinued operations |
|
|
(1 |
) |
|
|
|
(2 |
) |
|
|
|
|
(1 |
) |
|
|
|
(2 |
) |
|
| Effect of exchange rate changes on cash and equivalents |
|
|
2 |
|
|
|
|
(25 |
) |
|
|
|
|
8 |
|
|
|
|
(27 |
) |
|
| Net change in cash and equivalents |
|
|
(49 |
) |
|
|
|
(285 |
) |
|
|
|
|
(285 |
) |
|
|
|
(276 |
) |
|
| Cash and equivalents at beginning of period |
|
|
1,799 |
|
|
|
|
2,126 |
|
|
|
|
|
2,035 |
|
|
|
|
2,117 |
|
|
| Cash and equivalents at end of period |
|
$ |
1,750 |
|
|
|
$ |
1,841 |
|
|
|
|
$ |
1,750 |
|
|
|
$ |
1,841 |
|
|
TEXTRON INC.
