UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 23, 2014
TEXTRON INC.
(Exact name of Registrant as specified in its charter)
Delaware |
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1-5480 |
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05-0315468 |
(State of Incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
40 Westminster Street, Providence, Rhode Island 02903
(Address of principal executive offices)
Registrants telephone number, including area code: (401) 421-2800
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01. Other Events
Textron Inc. is filing capsule financial information as of and for the quarter ended September 27, 2014. A copy of such capsule financial information is attached hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits:
The following exhibits are filed herewith:
Exhibit |
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Description |
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99.1 |
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Capsule financial information of Textron as of and for the quarter ended September 27, 2014. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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TEXTRON INC. |
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(Registrant) |
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/s/ Mary F. Lovejoy |
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Mary F. Lovejoy |
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Vice President and Treasurer |
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Date: October 23, 2014 |
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)
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Three Months Ended |
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Nine Months Ended |
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September 27, 2014 |
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September 28, 2013 |
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September 27, 2014 |
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September 28, 2013 |
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REVENUES |
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MANUFACTURING: |
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Textron Aviation |
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$ |
1,080 |
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$ |
593 |
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$ |
3,048 |
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$ |
1,861 |
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Bell |
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1,182 |
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1,162 |
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3,174 |
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3,136 |
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Textron Systems |
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358 |
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405 |
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1,003 |
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1,256 |
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Industrial |
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785 |
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711 |
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2,476 |
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2,239 |
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3,405 |
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2,871 |
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9,701 |
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8,492 |
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FINANCE |
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25 |
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33 |
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81 |
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106 |
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Total revenues |
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$ |
3,430 |
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$ |
2,904 |
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$ |
9,782 |
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$ |
8,598 |
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SEGMENT PROFIT |
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MANUFACTURING: |
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Textron Aviation (a) (b) |
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$ |
62 |
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$ |
(23 |
) |
$ |
104 |
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$ |
(81 |
) |
Bell |
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146 |
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131 |
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383 |
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395 |
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Textron Systems |
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27 |
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35 |
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100 |
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107 |
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Industrial |
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53 |
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52 |
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213 |
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188 |
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288 |
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195 |
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800 |
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609 |
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FINANCE |
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5 |
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13 |
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16 |
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47 |
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Segment Profit |
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293 |
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208 |
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816 |
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656 |
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Corporate expenses and other, net |
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(22 |
) |
(34 |
) |
(103 |
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(109 |
) | ||||
Interest expense, net for Manufacturing group |
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(37 |
) |
(29 |
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(108 |
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(96 |
) | ||||
Acquisition and restructuring costs (c) |
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(3 |
) |
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(39 |
) |
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Income from continuing operations before income taxes |
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231 |
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145 |
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566 |
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451 |
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Income tax expense |
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(71 |
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(47 |
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(174 |
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(124 |
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Income from continuing operations |
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160 |
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98 |
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392 |
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327 |
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Discontinued operations, net of income taxes |
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(1 |
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1 |
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(4 |
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4 |
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Net income |
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$ |
159 |
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$ |
99 |
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$ |
388 |
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$ |
331 |
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Earnings per share: |
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Income from continuing operations |
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$ |
0.57 |
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$ |
0.35 |
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$ |
1.39 |
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$ |
1.15 |
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Discontinued operations, net of income taxes |
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(0.02 |
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0.01 |
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Net income |
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$ |
0.57 |
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$ |
0.35 |
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$ |
1.37 |
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$ |
1.16 |
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Diluted average shares outstanding |
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281,030,000 |
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281,710,000 |
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282,424,000 |
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284,743,000 |
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(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 $11 million related to the Beechcraft acquisition are also included in the nine months ended September 27, 2014.
Textron Inc.
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
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September 27, |
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December 28, |
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Assets |
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Cash and equivalents |
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$ |
430 |
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$ |
1,163 |
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Accounts receivable, net |
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1,150 |
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979 |
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Inventories |
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4,081 |
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2,963 |
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Other current assets |
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539 |
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467 |
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Net property, plant and equipment |
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2,442 |
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2,215 |
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Goodwill |
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2,020 |
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1,735 |
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Other assets |
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2,509 |
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1,697 |
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Finance group assets |
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1,568 |
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1,725 |
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Total Assets |
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$ |
14,739 |
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$ |
12,944 |
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Liabilities and Shareholders Equity |
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Short-term debt and current portion of long-term debt |
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$ |
383 |
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$ |
8 |
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Other current liabilities |
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3,510 |
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2,995 |
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Other liabilities |
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2,451 |
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2,118 |
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Long-term debt |
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2,474 |
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1,923 |
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Finance group liabilities |
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1,349 |
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1,516 |
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Total Liabilities |
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10,167 |
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8,560 |
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Total Shareholders Equity |
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4,572 |
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4,384 |
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Total Liabilities and Shareholders Equity |
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$ |
14,739 |
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$ |
12,944 |
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TEXTRON INC.
Condensed Consolidated Schedule of Cash Flows
(In millions)
(Unaudited)
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Three Months Ended |
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Nine Months Ended |
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September 27, |
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September 28, |
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September 27, |
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September 28, |
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2014 |
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2013 |
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2014 |
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2013 |
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Cash flows from operating activities: |
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Income from continuing operations |
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$ |
160 |
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$ |
98 |
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$ |
392 |
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$ |
327 |
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Depreciation and amortization |
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111 |
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93 |
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325 |
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285 |
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Changes in working capital |
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(51 |
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117 |
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(128 |
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(624 |
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Changes in other assets and liabilities and non-cash items |
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(4 |
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51 |
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(20 |
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(91 |
) | ||||
Net cash from operating activities of continuing operations |
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216 |
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359 |
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569 |
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(103 |
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Cash flows from investing activities: |
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Net cash used in acquisitions |
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(30 |
) |
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(1,580 |
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(53 |
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Capital expenditures |
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(83 |
) |
(110 |
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(255 |
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(300 |
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Finance receivables repaid |
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19 |
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45 |
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77 |
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157 |
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Proceeds from sales of receivables and other finance assets |
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24 |
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99 |
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37 |
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152 |
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Other investing activities, net |
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(7 |
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3 |
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(4 |
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13 |
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Net cash from investing activities |
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(77 |
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37 |
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(1,725 |
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(31 |
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Cash flows from financing activities: |
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Proceeds from long-term debt |
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36 |
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10 |
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1,187 |
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412 |
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Increase (decrease) in short-term debt |
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25 |
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(270 |
) |
25 |
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96 |
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Principal payments on long-term and nonrecourse debt |
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(341 |
) |
(72 |
) |
(462 |
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(997 |
) | ||||
Purchases of Textron common stock |
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(152 |
) |
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(302 |
) |
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Settlement of convertible debt |
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(215 |
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Proceeds from settlement of capped call |
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75 |
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Other financing activities, net |
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(3 |
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(2 |
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16 |
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Net cash from financing activities |
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(435 |
) |
(334 |
) |
464 |
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(629 |
) | ||||
Total cash flows from continuing operations |
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(296 |
) |
62 |
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(692 |
) |
(763 |
) | ||||
Total cash flows from discontinued operations |
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(1 |
) |
2 |
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(3 |
) |
(5 |
) | ||||
Effect of exchange rate changes on cash and equivalents |
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(7 |
) |
2 |
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(5 |
) |
(8 |
) | ||||
Net change in cash and equivalents |
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(304 |
) |
66 |
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(700 |
) |
(776 |
) | ||||
Cash and equivalents at beginning of period |
|
815 |
|
571 |
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1,211 |
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1,413 |
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Cash and equivalents at end of period |
|
$ |
511 |
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$ |
637 |
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$ |
511 |
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$ |
637 |
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