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 |
||||||||||||||||||
|
June 29,
|
July 1,
|
|
June 29,
|
July 1,
|
||||||||||||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MANUFACTURING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Textron Aviation |
|
$ |
1,475 |
|
|
|
$ |
1,362 |
|
|
|
|
$ |
2,663 |
|
|
|
$ |
2,511 |
|
|
Bell |
|
|
794 |
|
|
|
|
701 |
|
|
|
|
|
1,521 |
|
|
|
|
1,322 |
|
|
Textron Systems |
|
|
323 |
|
|
|
|
306 |
|
|
|
|
|
629 |
|
|
|
|
612 |
|
|
| Industrial |
|
|
914 |
|
|
|
|
1,026 |
|
|
|
|
|
1,806 |
|
|
|
|
1,958 |
|
|
| Textron eAviation |
|
|
9 |
|
|
|
|
11 |
|
|
|
|
|
16 |
|
|
|
|
15 |
|
|
|
|
|
|
3,515 |
|
|
|
|
3,406 |
|
|
|
|
|
6,635 |
|
|
|
|
6,418 |
|
|
| FINANCE |
|
|
12 |
|
|
|
|
18 |
|
|
|
|
|
27 |
|
|
|
|
30 |
|
|
| Total revenues |
|
$ |
3,527 |
|
|
|
$ |
3,424 |
|
|
|
|
$ |
6,662 |
|
|
|
$ |
6,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| SEGMENT PROFIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| MANUFACTURING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Textron Aviation |
|
$ |
195 |
|
|
|
$ |
171 |
|
|
|
|
$ |
338 |
|
|
|
$ |
296 |
|
|
| Bell |
|
|
82 |
|
|
|
|
65 |
|
|
|
|
|
162 |
|
|
|
|
125 |
|
|
| Textron Systems |
|
|
35 |
|
|
|
|
37 |
|
|
|
|
|
73 |
|
|
|
|
71 |
|
|
| Industrial |
|
|
42 |
|
|
|
|
79 |
|
|
|
|
|
71 |
|
|
|
|
120 |
|
|
| Textron eAviation |
|
|
(18 |
) |
|
|
|
(12 |
) |
|
|
|
|
(36 |
) |
|
|
|
(21 |
) |
|
|
|
|
|
336 |
|
|
|
|
340 |
|
|
|
|
|
608 |
|
|
|
|
591 |
|
|
| FINANCE |
|
|
7 |
|
|
|
|
12 |
|
|
|
|
|
25 |
|
|
|
|
20 |
|
|
| Segment profit (a) |
|
|
343 |
|
|
|
|
352 |
|
|
|
|
|
633 |
|
|
|
|
611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Corporate expenses and other, net |
|
|
(17 |
) |
|
|
|
(21 |
) |
|
|
|
|
(79 |
) |
|
|
|
(60 |
) |
|
| Interest expense, net for Manufacturing group |
|
|
(20 |
) |
|
|
|
(16 |
) |
|
|
|
|
(35 |
) |
|
|
|
(33 |
) |
|
| LIFO inventory provision |
|
|
(27 |
) |
|
|
|
(35 |
) |
|
|
|
|
(47 |
) |
|
|
|
(60 |
) |
|
| Intangible asset amortization |
|
|
(9 |
) |
|
|
|
(10 |
) |
|
|
|
|
(17 |
) |
|
|
|
(20 |
) |
|
| Special charges (b) |
|
|
(13 |
) |
|
|
|
— |
|
|
|
|
|
(27 |
) |
|
|
|
— |
|
|
| Non-service components of pension and postretirement income, net |
|
|
66 |
|
|
|
|
59 |
|
|
|
|
|
132 |
|
|
|
|
118 |
|
|
| Income from continuing operations before income taxes |
|
|
323 |
|
|
|
|
329 |
|
|
|
|
|
560 |
|
|
|
|
556 |
|
|
| Income tax expense |
|
|
(63 |
) |
|
|
|
(66 |
) |
|
|
|
|
(99 |
) |
|
|
|
(102 |
) |
|
| Income from continuing operations |
|
$ |
260 |
|
|
|
$ |
263 |
|
|
|
|
$ |
461 |
|
|
|
$ |
454 |
|
|
| Discontinued operations, net of income taxes |
|
|
(1 |
) |
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
|
— |
|
|
| Net income |
|
$ |
259 |
|
|
|
$ |
263 |
|
|
|
|
$ |
460 |
|
|
|
$ |
454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations |
|
$ |
1.35 |
|
|
|
$ |
1.30 |
|
|
|
|
$ |
2.38 |
|
|
|
$ |
2.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Diluted average shares outstanding |
|
|
191,855,000 |
|
|
|
|
202,509,000 |
|
|
|
|
|
193,358,000 |
|
|
|
|
204,760,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations and Diluted earnings per share (EPS) GAAP to Non-GAAP reconciliation: |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
June 29,
|
|
July 1,
|
|
|
June 29,
|
July 1,
|
||||||||||||||
| Income from continuing operations - GAAP |
|
$ |
260 |
|
|
|
$ |
263 |
|
|
|
|
$ |
461 |
|
|
|
$ |
454 |
|
|
| Add: LIFO inventory provision, net of tax |
|
|
20 |
|
|
|
|
26 |
|
|
|
|
|
35 |
|
|
|
|
45 |
|
|
| Intangible asset amortization, net of tax |
|
|
7 |
|
|
|
|
7 |
|
|
|
|
|
13 |
|
|
|
|
15 |
|
|
| Special charges, net of tax |
|
|
9 |
|
|
|
|
— |
|
|
|
|
|
20 |
|
|
|
|
— |
|
|
| Adjusted income from continuing operations - Non-GAAP (a) |
|
$ |
296 |
|
|
|
$ |
296 |
|
|
|
|
$ |
529 |
|
|
|
$ |
514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Diluted Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations - GAAP |
|
$ |
1.35 |
|
|
|
$ |
1.30 |
|
|
|
|
$ |
2.38 |
|
|
|
$ |
2.22 |
|
|
| Add: LIFO inventory provision, net of tax |
|
|
0.10 |
|
|
|
|
0.13 |
|
|
|
|
|
0.18 |
|
|
|
|
0.22 |
|
|
| Intangible asset amortization, net of tax |
|
|
0.04 |
|
|
|
|
0.03 |
|
|
|
|
|
0.07 |
|
|
|
|
0.07 |
|
|
| Special charges, net of tax |
|
|
0.05 |
|
|
|
|
— |
|
|
|
|
|
0.11 |
|
|
|
|
— |
|
|
| Adjusted income from continuing operations - Non-GAAP (a) |
|
$ |
1.54 |
|
|
|
$ |
1.46 |
|
|
|
|
$ |
2.74 |
|
|
|
$ |
2.51 |
|
|
| (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 second quarter and first half of 2024, we recorded special charges of $13 million and $27 million, respectively, in connection with the restructuring plan announced at the end of 2023. These charges were largely related to headcount reductions in the Industrial, Textron Systems and Bell segments. |
|
| TEXTRON INC. Condensed Consolidated Balance Sheets (In millions) (Unaudited) |
||||||||
|
|
|
|
||||||
|
|
June 29,
|
December 30,
|
||||||
| Assets |
|
|
||||||
| Cash and equivalents |
$ |
1,345 |
$ |
2,121 |
||||
| Accounts receivable, net |
|
847 |
|
868 |
||||
| Inventories |
|
4,381 |
|
3,914 |
||||
| Other current assets |
|
749 |
|
857 |
||||
| Net property, plant and equipment |
|
2,500 |
|
2,477 |
||||
| Goodwill |
|
2,295 |
|
2,295 |
||||
| Other assets |
|
3,639 |
|
3,663 |
||||
| Finance group assets |
|
671 |
|
661 |
||||
| Total Assets |
$ |
16,427 |
$ |
16,856 |
||||
|
|
|
|
||||||
|
|
|
|
||||||
| Liabilities and Shareholders' Equity |
|
|
||||||
| Current portion of long-term debt |
$ |
357 |
$ |
357 |
||||
| Accounts payable |
|
1,120 |
|
1,023 |
||||
| Other current liabilities |
|
2,979 |
|
2,998 |
||||
| Other liabilities |
|
1,828 |
|
1,904 |
||||
| Long-term debt |
|
2,884 |
|
3,169 |
||||
| Finance group liabilities |
|
407 |
|
418 |
||||
| Total Liabilities |
|
9,575 |
|
9,869 |
||||
|
|
|
|
||||||
| Total Shareholders' Equity |
|
6,852 |
|
6,987 |
||||
| Total Liabilities and Shareholders' Equity |
$ |
16,427 |
$ |
16,856 |
||||
| TEXTRON INC. MANUFACTURING GROUP Condensed Schedule of Cash Flows (In millions) (Unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
||||||||||||||
|
|
|
June 29,
|
|
|
July 1,
|
|
|
|
June 29,
|
|
|
July 1,
|
|
||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations |
|
$ |
254 |
|
|
|
$ |
253 |
|
|
|
|
$ |
441 |
|
|
|
$ |
438 |
|
|
| Depreciation and amortization |
|
|
90 |
|
|
|
|
101 |
|
|
|
|
|
178 |
|
|
|
|
193 |
|
|
| Deferred income taxes and income taxes receivable/payable |
|
|
(41 |
) |
|
|
|
(77 |
) |
|
|
|
|
(22 |
) |
|
|
|
(61 |
) |
|
| Pension, net |
|
|
(56 |
) |
|
|
|
(51 |
) |
|
|
|
|
(112 |
) |
|
|
|
(102 |
) |
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Accounts receivable, net |
|
|
44 |
|
|
|
|
(28 |
) |
|
|
|
|
10 |
|
|
|
|
(97 |
) |
|
| Inventories |
|
|
(117 |
) |
|
|
|
(173 |
) |
|
|
|
|
(467 |
) |
|
|
|
(553 |
) |
|
| Accounts payable |
|
|
(14 |
) |
|
|
|
(54 |
) |
|
|
|
|
107 |
|
|
|
|
207 |
|
|
| Other, net |
|
|
223 |
|
|
|
|
343 |
|
|
|
|
|
218 |
|
|
|
|
442 |
|
|
| Net cash from operating activities |
|
|
383 |
|
|
|
|
314 |
|
|
|
|
|
353 |
|
|
|
|
467 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Capital expenditures |
|
|
(74 |
) |
|
|
|
(83 |
) |
|
|
|
|
(140 |
) |
|
|
|
(145 |
) |
|
| Net cash used in business acquisitions |
|
|
(13 |
) |
|
|
|
— |
|
|
|
|
|
(13 |
) |
|
|
|
— |
|
|
| Net proceeds from corporate-owned life insurance policies |
|
|
23 |
|
|
|
|
18 |
|
|
|
|
|
26 |
|
|
|
|
38 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
3 |
|
|
|
|
— |
|
|
| Net cash from investing activities |
|
|
(64 |
) |
|
|
|
(65 |
) |
|
|
|
|
(124 |
) |
|
|
|
(107 |
) |
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Principal payments on long-term debt and nonrecourse debt |
|
|
(7 |
) |
|
|
|
(1 |
) |
|
|
|
|
(359 |
) |
|
|
|
(3 |
) |
|
| Purchases of Textron common stock |
|
|
(358 |
) |
|
|
|
(273 |
) |
|
|
|
|
(675 |
) |
|
|
|
(650 |
) |
|
| Dividends paid |
|
|
(4 |
) |
|
|
|
(4 |
) |
|
|
|
|
(8 |
) |
|
|
|
(8 |
) |
|
| Other financing activities, net |
|
|
10 |
|
|
|
|
4 |
|
|
|
|
|
48 |
|
|
|
|
26 |
|
|
| Net cash from financing activities |
|
|
(359 |
) |
|
|
|
(274 |
) |
|
|
|
|
(994 |
) |
|
|
|
(635 |
) |
|
| Total cash flows from continuing operations |
|
|
(40 |
) |
|
|
|
(25 |
) |
|
|
|
|
(765 |
) |
|
|
|
(275 |
) |
|
| Total cash flows from discontinued operations |
|
|
(1 |
) |
|
|
|
(1 |
) |
|
|
|
|
(1 |
) |
|
|
|
(1 |
) |
|
| Effect of exchange rate changes on cash and equivalents |
|
|
(2 |
) |
|
|
|
2 |
|
|
|
|
|
(10 |
) |
|
|
|
8 |
|
|
| Net change in cash and equivalents |
|
|
(43 |
) |
|
|
|
(24 |
) |
|
|
|
|
(776 |
) |
|
|
|
(268 |
) |
|
| Cash and equivalents at beginning of period |
|
|
1,388 |
|
|
|
|
1,719 |
|
|
|
|
|
2,121 |
|
|
|
|
1,963 |
|
|
| Cash and equivalents at end of period |
|
$ |
1,345 |
|
|
|
$ |
1,695 |
|
|
|
|
$ |
1,345 |
|
|
|
$ |
1,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Manufacturing cash flow GAAP to Non-GAAP reconciliation: |
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|||||||||||||||
|
|
|
June 29,
|
|
|
July 1,
|
|
|
|
June 29,
|
|
|
July 1,
|
|
||||||||
| Net cash from operating activities - GAAP |
|
$ |
383 |
|
|
|
$ |
314 |
|
|
|
|
$ |
353 |
|
|
|
$ |
467 |
|
|
| Less: Capital expenditures |
|
|
(74 |
) |
|
|
|
(83 |
) |
|
|
|
|
(140 |
) |
|
|
|
(145 |
) |
|
| Add: Total pension contributions |
|
|
11 |
|
|
|
|
11 |
|
|
|
|
|
23 |
|
|
|
|
24 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
3 |
|
|
|
|
— |
|
|
| Manufacturing cash flow before pension contributions - Non-GAAP (a) |
|
$ |
320 |
|
|
|
$ |
242 |
|
|
|
|
$ |
239 |
|
|
|
$ |
346 |
|
|
| (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) |
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|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
|
June 29,
|
|
|
July 1,
|
|
|
|
June 29,
|
|
|
July 1,
|
|
||||||||
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Income from continuing operations |
|
$ |
260 |
|
|
|
$ |
263 |
|
|
|
|
$ |
461 |
|
|
|
$ |
454 |
|
|
| Depreciation and amortization |
|
|
90 |
|
|
|
|
101 |
|
|
|
|
|
178 |
|
|
|
|
193 |
|
|
| Deferred income taxes and income taxes receivable/payable |
|
|
(47 |
) |
|
|
|
(81 |
) |
|
|
|
|
(24 |
) |
|
|
|
(63 |
) |
|
| Pension, net |
|
|
(56 |
) |
|
|
|
(51 |
) |
|
|
|
|
(112 |
) |
|
|
|
(102 |
) |
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Accounts receivable, net |
|
|
44 |
|
|
|
|
(28 |
) |
|
|
|
|
10 |
|
|
|
|
(97 |
) |
|
| Inventories |
|
|
(117 |
) |
|
|
|
(173 |
) |
|
|
|
|
(467 |
) |
|
|
|
(553 |
) |
|
| Accounts payable |
|
|
(14 |
) |
|
|
|
(54 |
) |
|
|
|
|
107 |
|
|
|
|
207 |
|
|
| Captive finance receivables, net |
|
|
(15 |
) |
|
|
|
(21 |
) |
|
|
|
|
7 |
|
|
|
|
(15 |
) |
|
| Other, net |
|
|
223 |
|
|
|
|
341 |
|
|
|
|
|
201 |
|
|
|
|
436 |
|
|
| Net cash from operating activities |
|
|
368 |
|
|
|
|
297 |
|
|
|
|
|
361 |
|
|
|
|
460 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Capital expenditures |
|
|
(74 |
) |
|
|
|
(83 |
) |
|
|
|
|
(140 |
) |
|
|
|
(145 |
) |
|
| Net cash used in business acquisitions |
|
|
(13 |
) |
|
|
|
— |
|
|
|
|
|
(13 |
) |
|
|
|
— |
|
|
| Net proceeds from corporate-owned life insurance policies |
|
|
23 |
|
|
|
|
18 |
|
|
|
|
|
26 |
|
|
|
|
38 |
|
|
| Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
3 |
|
|
|
|
— |
|
|
| Finance receivables repaid |
|
|
23 |
|
|
|
|
7 |
|
|
|
|
|
31 |
|
|
|
|
19 |
|
|
| Finance receivables originated |
|
|
(7 |
) |
|
|
|
— |
|
|
|
|
|
(18 |
) |
|
|
|
— |
|
|
| Other investing activities, net |
|
|
— |
|
|
|
|
1 |
|
|
|
|
|
— |
|
|
|
|
2 |
|
|
| Net cash from investing activities |
|
|
(48 |
) |
|
|
|
(57 |
) |
|
|
|
|
(111 |
) |
|
|
|
(86 |
) |
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Principal payments on long-term debt and nonrecourse debt |
|
|
(9 |
) |
|
|
|
(17 |
) |
|
|
|
|
(374 |
) |
|
|
|
(34 |
) |
|
| Purchases of Textron common stock |
|
|
(358 |
) |
|
|
|
(273 |
) |
|
|
|
|
(675 |
) |
|
|
|
(650 |
) |
|
| Dividends paid |
|
|
(4 |
) |
|
|
|
(4 |
) |
|
|
|
|
(8 |
) |
|
|
|
(8 |
) |
|
| Other financing activities, net |
|
|
(1 |
) |
|
|
|
4 |
|
|
|
|
|
48 |
|
|
|
|
26 |
|
|
| Net cash from financing activities |
|
|
(372 |
) |
|
|
|
(290 |
) |
|
|
|
|
(1,009 |
) |
|
|
|
(666 |
) |
|
| Total cash flows from continuing operations |
|
|
(52 |
) |
|
|
|
(50 |
) |
|
|
|
|
(759 |
) |
|
|
|
(292 |
) |
|
| Total cash flows from discontinued operations |
|
|
(1 |
) |
|
|
|
(1 |
) |
|
|
|
|
(1 |
) |
|
|
|
(1 |
) |
|
| Effect of exchange rate changes on cash and equivalents |
|
|
(2 |
) |
|
|
|
2 |
|
|
|
|
|
(10 |
) |
|
|
|
8 |
|
|
| Net change in cash and equivalents |
|
|
(55 |
) |
|
|
|
(49 |
) |
|
|
|
|
(770 |
) |
|
|
|
(285 |
) |
|
| Cash and equivalents at beginning of period |
|
|
1,466 |
|
|
|
|
1,799 |
|
|
|
|
|
2,181 |
|
|
|
|
2,035 |
|
|
| Cash and equivalents at end of period |
|
$ |
1,411 |
|
|
|
$ |
1,750 |
|
|
|
|
$ |
1,411 |
|
|
|
$ |
1,750 |
|
|
TEXTRON INC.
