Exhibit 99.1
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.
Condensed Consolidated Schedule of Cash Flows
(In millions)
(Unaudited)
| | Three Months Ended | | Nine Months Ended | |
| | September 27, | | September 28, | | September 27, | | September 28, | |
| | 2014 | | 2013 | | 2014 | | 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 | |
