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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2017
Oct. 01, 2016
Cash flows from operating activities    
Net income $ 413 $ 748
Less: Income from discontinued operations [1] 1 120
Income from continuing operations 412 628
Non-cash items:    
Depreciation and amortization 332 331
Deferred income taxes 140 30
Asset impairments 25 36
Other, net 73 76
Changes in assets and liabilities:    
Accounts receivable, net (220) (92)
Inventories 88 (637)
Other assets 3 56
Accounts payable (178) 146
Accrued and other liabilities (44) (290)
Income taxes, net (40) (216)
Pension, net (276) 21
Captive finance receivables, net 76 54
Other operating activities, net (6) 2
Net cash provided by (used in) operating activities of continuing operations 385 145
Net cash used in operating activities of discontinued operations (24) (2)
Net cash provided by (used in) operating activities 361 143
Cash flows from investing activities    
Net cash used in acquisitions (330) (179)
Capital expenditures (276) (306)
Finance receivables repaid 27 40
Other investing activities, net 48 53
Net cash provided by (used in) investing activities (531) (392)
Cash flows from financing activities    
Proceeds from long-term debt 682 520
Increase in short-term debt 2 110
Principal payments on long-term debt and nonrecourse debt (116) (433)
Purchases of Textron common stock (451) (215)
Dividends paid (16) (16)
Other financing activities, net 36 20
Net cash provided by (used in) financing activities 137 (14)
Effect of exchange rate changes on cash and equivalents 29 (3)
Net increase (decrease) in cash and equivalents (4) (266)
Cash and equivalents at beginning of period 1,298 1,005
Cash and equivalents at end of period 1,294 739
Manufacturing group    
Cash flows from operating activities    
Net income 400 733
Less: Income from discontinued operations 1 120
Income from continuing operations 399 613
Non-cash items:    
Depreciation and amortization 322 322
Deferred income taxes 141 35
Asset impairments 25 36
Other, net 75 74
Changes in assets and liabilities:    
Accounts receivable, net (220) (92)
Inventories 89 (639)
Other assets 8 85
Accounts payable (178) 146
Accrued and other liabilities (36) (283)
Income taxes, net 4 (212)
Pension, net (276) 21
Dividends received from Finance group   29
Other operating activities, net (6) 2
Net cash provided by (used in) operating activities of continuing operations 347 137
Net cash used in operating activities of discontinued operations (24) (2)
Net cash provided by (used in) operating activities 323 135
Cash flows from investing activities    
Net cash used in acquisitions (330) (179)
Capital expenditures (276) (306)
Other investing activities, net 7 5
Net cash provided by (used in) investing activities (599) (480)
Cash flows from financing activities    
Proceeds from long-term debt 645 345
Increase in short-term debt 2 110
Principal payments on long-term debt and nonrecourse debt (3) (253)
Purchases of Textron common stock (451) (215)
Dividends paid (16) (16)
Other financing activities, net 37 20
Net cash provided by (used in) financing activities 214 (9)
Effect of exchange rate changes on cash and equivalents 29 (3)
Net increase (decrease) in cash and equivalents (33) (357)
Cash and equivalents at beginning of period 1,137 946
Cash and equivalents at end of period 1,104 589
Finance group    
Cash flows from operating activities    
Net income 13 15
Income from continuing operations 13 15
Non-cash items:    
Depreciation and amortization 10 9
Deferred income taxes (1) (5)
Other, net (2) 2
Changes in assets and liabilities:    
Other assets (5) (3)
Accrued and other liabilities (8) (7)
Income taxes, net (44) (4)
Net cash provided by (used in) operating activities of continuing operations (37) 7
Net cash provided by (used in) operating activities (37) 7
Cash flows from investing activities    
Finance receivables repaid 220 220
Finance receivables originated (117) (126)
Other investing activities, net 40 24
Net cash provided by (used in) investing activities 143 118
Cash flows from financing activities    
Proceeds from long-term debt 37 175
Principal payments on long-term debt and nonrecourse debt (113) (180)
Dividends paid   (29)
Other financing activities, net (1)  
Net cash provided by (used in) financing activities (77) (34)
Net increase (decrease) in cash and equivalents 29 91
Cash and equivalents at beginning of period 161 59
Cash and equivalents at end of period $ 190 $ 150
[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 12 for additional information.