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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
9 Months Ended
Oct. 01, 2016
Oct. 03, 2015
Cash flows from operating activities    
Net income $ 748 $ 471
Less: Income (loss) from discontinued operations [1] 120 (2)
Income from continuing operations 628 473
Non-cash items:    
Depreciation and amortization 331 332
Asset impairments 36  
Deferred income taxes 30 (11)
Other, net 76 78
Changes in assets and liabilities:    
Accounts receivable, net (92) (122)
Inventories (637) (654)
Other assets 56 6
Accounts payable 146 156
Accrued and other liabilities (290) (18)
Income taxes, net (216) 64
Pension, net 21 61
Captive finance receivables, net 54 58
Other operating activities, net 2 (4)
Net cash provided by operating activities of continuing operations 145 419
Net cash used in operating activities of discontinued operations (2) (4)
Net cash provided by operating activities 143 415
Cash flows from investing activities    
Capital expenditures (306) (286)
Net cash used in acquisitions (179) (81)
Finance receivables repaid 40 66
Other investing activities, net 53 31
Net cash provided by (used in) investing activities (392) (270)
Cash flows from financing activities    
Proceeds from long-term debt 520 55
Increase in short-term debt 110  
Principal payments on long-term debt and nonrecourse debt (433) (196)
Purchases of Textron common stock (215) (211)
Dividends paid (16) (17)
Other financing activities, net 20 25
Net cash used in financing activities (14) (344)
Effect of exchange rate changes on cash and equivalents (3) (9)
Net increase (decrease) in cash and equivalents (266) (208)
Cash and equivalents at beginning of period 1,005 822
Cash and equivalents at end of period 739 614
Manufacturing group    
Cash flows from operating activities    
Net income 733 458
Less: Income (loss) from discontinued operations 120 (2)
Income from continuing operations 613 460
Non-cash items:    
Depreciation and amortization 322 324
Asset impairments 36  
Deferred income taxes 35 (3)
Other, net 74 74
Changes in assets and liabilities:    
Accounts receivable, net (92) (122)
Inventories (639) (661)
Other assets 85 (6)
Accounts payable 146 156
Accrued and other liabilities (283) (10)
Income taxes, net (212) 58
Pension, net 21 61
Dividends received from Finance Group 29 20
Other operating activities, net 2 (4)
Net cash provided by operating activities of continuing operations 137 347
Net cash used in operating activities of discontinued operations (2) (4)
Net cash provided by operating activities 135 343
Cash flows from investing activities    
Capital expenditures (306) (286)
Net cash used in acquisitions (179) (81)
Other investing activities, net 5 2
Net cash provided by (used in) investing activities (480) (365)
Cash flows from financing activities    
Proceeds from long-term debt 345  
Increase in short-term debt 110  
Principal payments on long-term debt and nonrecourse debt (253)  
Purchases of Textron common stock (215) (211)
Dividends paid (16) (17)
Other financing activities, net 20 25
Net cash used in financing activities (9) (203)
Effect of exchange rate changes on cash and equivalents (3) (9)
Net increase (decrease) in cash and equivalents (357) (234)
Cash and equivalents at beginning of period 946 731
Cash and equivalents at end of period 589 497
Finance group    
Cash flows from operating activities    
Net income 15 13
Income from continuing operations 15 13
Non-cash items:    
Depreciation and amortization 9 8
Deferred income taxes (5) (8)
Other, net 2 4
Changes in assets and liabilities:    
Other assets (3) 12
Accrued and other liabilities (7) (8)
Income taxes, net (4) 6
Net cash provided by operating activities of continuing operations 7 27
Net cash provided by operating activities 7 27
Cash flows from investing activities    
Finance receivables repaid 220 269
Finance receivables originated (126) (145)
Other investing activities, net 24 36
Net cash provided by (used in) investing activities 118 160
Cash flows from financing activities    
Proceeds from long-term debt 175 55
Principal payments on long-term debt and nonrecourse debt (180) (196)
Dividends paid (29) (20)
Net cash used in financing activities (34) (161)
Net increase (decrease) in cash and equivalents 91 26
Cash and equivalents at beginning of period 59 91
Cash and equivalents at end of period $ 150 $ 117
[1] Income from discontinued operations, net of income taxes for the three and nine months ended October 1, 2016 primarily includes the settlement of a U.S. federal income tax audit. See Note 13 for additional information.