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þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 05-0315468 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
40 Westminster Street, Providence, RI | 02903 | |
(Address of principal executive offices) | (Zip code) |
Large accelerated filer þ | Accelerated filer o |
Non-accelerated filer o (Do not check if a smaller reporting company) |
Smaller reporting company o |
Page | ||||||||
PART I. | ||||||||
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||||||||
Item 1. | ||||||||
3 | ||||||||
4 | ||||||||
5 | ||||||||
7 | ||||||||
7 | ||||||||
8 | ||||||||
8 | ||||||||
8 | ||||||||
9 | ||||||||
13 | ||||||||
13 | ||||||||
14 | ||||||||
14 | ||||||||
14 | ||||||||
17 | ||||||||
17 | ||||||||
Item 2. | 19 | |||||||
Item 3. | 31 | |||||||
Item 4. | 31 | |||||||
|
||||||||
PART II. | ||||||||
|
||||||||
Item 1A. | 31 | |||||||
Item 6. | 32 | |||||||
32 | ||||||||
EX-12.1 | ||||||||
EX-12.2 | ||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32.1 | ||||||||
EX-32.2 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
2
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(In millions, except per share amounts) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues
|
||||||||||||||||
Manufacturing revenues
|
$ | 2,695 | $ | 2,653 | $ | 5,148 | $ | 4,787 | ||||||||
Finance revenues
|
33 | 56 | 59 | 132 | ||||||||||||
Total revenues
|
2,728 | 2,709 | 5,207 | 4,919 | ||||||||||||
Costs, expenses and other
|
||||||||||||||||
Cost of sales
|
2,225 | 2,188 | 4,280 | 3,963 | ||||||||||||
Selling and administrative expense
|
295 | 299 | 599 | 585 | ||||||||||||
Provision for losses on finance receivables
|
12 | 44 | 24 | 99 | ||||||||||||
Interest expense
|
61 | 69 | 123 | 140 | ||||||||||||
Special charges
|
— | 10 | — | 22 | ||||||||||||
Total costs, expenses and other
|
2,593 | 2,610 | 5,026 | 4,809 | ||||||||||||
Income from continuing operations before income taxes
|
135 | 99 | 181 | 110 | ||||||||||||
Income tax expense
|
43 | 18 | 58 | 33 | ||||||||||||
Income from continuing operations
|
92 | 81 | 123 | 77 | ||||||||||||
Income (loss) from discontinued operations, net of income taxes
|
(2 | ) | 1 | (4 | ) | (3 | ) | |||||||||
Net income
|
$ | 90 | $ | 82 | $ | 119 | $ | 74 | ||||||||
Basic earnings per share
|
||||||||||||||||
Continuing operations
|
$ | 0.33 | $ | 0.30 | $ | 0.44 | $ | 0.28 | ||||||||
Discontinued operations
|
(0.01 | ) | — | (0.01 | ) | (0.01 | ) | |||||||||
Basic earnings per share
|
$ | 0.32 | $ | 0.30 | $ | 0.43 | $ | 0.27 | ||||||||
Diluted earnings per share
|
||||||||||||||||
Continuing operations
|
$ | 0.29 | $ | 0.27 | $ | 0.39 | $ | 0.26 | ||||||||
Discontinued operations
|
— | — | (0.01 | ) | (0.01 | ) | ||||||||||
Diluted earnings per share
|
$ | 0.29 | $ | 0.27 | $ | 0.38 | $ | 0.25 | ||||||||
Dividends per share
|
||||||||||||||||
Common stock
|
$ | 0.02 | $ | 0.02 | $ | 0.04 | $ | 0.04 | ||||||||
3
July 2, | January 1, | |||||||
(Dollars in millions) | 2011 | 2011 | ||||||
Assets
|
||||||||
Manufacturing group
|
||||||||
Cash and equivalents
|
$ | 610 | $ | 898 | ||||
Accounts receivable, net
|
874 | 892 | ||||||
Inventories
|
2,562 | 2,277 | ||||||
Other current assets
|
1,395 | 980 | ||||||
Total current assets
|
5,441 | 5,047 | ||||||
Property, plant and equipment, less accumulated
depreciation and amortization of $3,040 and $2,869
|
1,964 | 1,932 | ||||||
Goodwill
|
1,651 | 1,632 | ||||||
Other assets
|
1,692 | 1,722 | ||||||
Total Manufacturing group assets
|
10,748 | 10,333 | ||||||
Finance group
|
||||||||
Cash and equivalents
|
41 | 33 | ||||||
Finance receivables held for investment, net
|
3,345 | 3,871 | ||||||
Finance receivables held for sale
|
180 | 413 | ||||||
Other assets
|
525 | 632 | ||||||
Total Finance group assets
|
4,091 | 4,949 | ||||||
Total assets
|
$ | 14,839 | $ | 15,282 | ||||
Liabilities and shareholders’ equity
|
||||||||
Liabilities
|
||||||||
Manufacturing group
|
||||||||
Short-term and current portion of long-term debt
|
$ | 351 | $ | 19 | ||||
Accounts payable
|
742 | 622 | ||||||
Accrued liabilities
|
1,915 | 2,016 | ||||||
Total current liabilities
|
3,008 | 2,657 | ||||||
Other liabilities
|
2,865 | 2,993 | ||||||
Long-term debt
|
2,192 | 2,283 | ||||||
Total Manufacturing group liabilities
|
8,065 | 7,933 | ||||||
Finance group
|
||||||||
Other liabilities
|
379 | 391 | ||||||
Due to Manufacturing group
|
722 | 326 | ||||||
Debt
|
2,499 | 3,660 | ||||||
Total Finance group liabilities
|
3,600 | 4,377 | ||||||
Total liabilities
|
11,665 | 12,310 | ||||||
Shareholders’ equity
|
||||||||
Common stock
|
35 | 35 | ||||||
Capital surplus
|
1,278 | 1,301 | ||||||
Retained earnings
|
3,145 | 3,037 | ||||||
Accumulated other comprehensive loss
|
(1,260 | ) | (1,316 | ) | ||||
|
3,198 | 3,057 | ||||||
Less cost of treasury shares
|
24 | 85 | ||||||
Total shareholders’ equity
|
3,174 | 2,972 | ||||||
Total liabilities and shareholders’ equity
|
$ | 14,839 | $ | 15,282 | ||||
Common shares outstanding
(in thousands)
|
277,224 | 275,739 | ||||||
4
Consolidated | ||||||||
(In millions) | 2011 | 2010 | ||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 119 | $ | 74 | ||||
Less: Income (loss) from discontinued operations
|
(4 | ) | (3 | ) | ||||
Income from continuing operations
|
123 | 77 | ||||||
Adjustments to reconcile income from continuing operations to net cash
provided by (used in) operating activities:
|
||||||||
Non-cash items:
|
||||||||
Depreciation and amortization
|
195 | 187 | ||||||
Provision for losses on finance receivables held for investment
|
24 | 99 | ||||||
Portfolio losses on finance receivables
|
44 | 50 | ||||||
Deferred income taxes
|
57 | 11 | ||||||
Other, net
|
79 | 55 | ||||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable, net
|
36 | (94 | ) | |||||
Inventories
|
(276 | ) | (217 | ) | ||||
Other assets
|
(51 | ) | 56 | |||||
Accounts payable
|
110 | 152 | ||||||
Accrued and other liabilities
|
(230 | ) | (285 | ) | ||||
Captive finance receivables, net
|
106 | 159 | ||||||
Other operating activities, net
|
2 | — | ||||||
Net cash provided by operating activities of continuing operations
|
219 | 250 | ||||||
Net cash used in operating activities of discontinued operations
|
(2 | ) | (3 | ) | ||||
Net cash provided by operating activities
|
217 | 247 | ||||||
Cash flows from investing activities:
|
||||||||
Finance receivables originated or purchased
|
(110 | ) | (270 | ) | ||||
Finance receivables repaid
|
422 | 990 | ||||||
Proceeds on receivable sales
|
257 | 343 | ||||||
Capital expenditures
|
(169 | ) | (83 | ) | ||||
Net cash used in acquisitions
|
(3 | ) | (43 | ) | ||||
Proceeds from sale of repossessed assets and properties
|
72 | 66 | ||||||
Other investing activities, net
|
32 | 36 | ||||||
Net cash provided by investing activities
|
501 | 1,039 | ||||||
Cash flows from financing activities:
|
||||||||
Payments on long-term lines of credit
|
(940 | ) | (502 | ) | ||||
Increase in short-term debt
|
189 | — | ||||||
Principal payments on long-term debt
|
(511 | ) | (1,491 | ) | ||||
Proceeds from issuance of long-term debt
|
265 | 28 | ||||||
Proceeds from option exercises
|
4 | 2 | ||||||
Dividends paid
|
(11 | ) | (11 | ) | ||||
Other financing activities, net
|
(5 | ) | — | |||||
Net cash used in financing activities
|
(1,009 | ) | (1,974 | ) | ||||
Effect of exchange rate changes on cash and equivalents
|
11 | (13 | ) | |||||
Net decrease in cash and equivalents
|
(280 | ) | (701 | ) | ||||
Cash and equivalents at beginning of period
|
931 | 1,892 | ||||||
Cash and equivalents at end of period
|
$ | 651 | $ | 1,191 | ||||
5
Manufacturing Group | Finance Group | |||||||||||||||
(In millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income (loss)
|
$ | 171 | $ | 152 | $ | (52 | ) | $ | (78 | ) | ||||||
Less: Income (loss) from discontinued operations
|
(4 | ) | (3 | ) | — | — | ||||||||||
Income from continuing operations
|
175 | 155 | (52 | ) | (78 | ) | ||||||||||
Adjustments to reconcile income (loss) from continuing operations to net cash
provided by (used in) operating activities:
|
||||||||||||||||
Dividends received from TFC
|
179 | 215 | — | — | ||||||||||||
Capital contribution paid to TFC under Support Agreement
|
(112 | ) | (146 | ) | — | — | ||||||||||
Non-cash items:
|
||||||||||||||||
Depreciation and amortization
|
180 | 170 | 15 | 17 | ||||||||||||
Provision for losses on finance receivables held for investment
|
— | — | 24 | 99 | ||||||||||||
Portfolio losses on finance receivables
|
— | — | 44 | 50 | ||||||||||||
Deferred income taxes
|
50 | 32 | 7 | (21 | ) | |||||||||||
Other, net
|
66 | 55 | 13 | — | ||||||||||||
Changes in assets and liabilities:
|
||||||||||||||||
Accounts receivable, net
|
36 | (94 | ) | — | — | |||||||||||
Inventories
|
(279 | ) | (217 | ) | — | — | ||||||||||
Other assets
|
(51 | ) | 51 | (3 | ) | 1 | ||||||||||
Accounts payable
|
110 | 152 | — | — | ||||||||||||
Accrued and other liabilities
|
(210 | ) | (206 | ) | (20 | ) | (79 | ) | ||||||||
Other operating activities, net
|
2 | (1 | ) | — | — | |||||||||||
Net cash provided by (used in) operating activities of continuing operations
|
146 | 166 | 28 | (11 | ) | |||||||||||
Net cash used in operating activities of discontinued operations
|
(2 | ) | (3 | ) | — | — | ||||||||||
Net cash provided by (used in) operating activities
|
144 | 163 | 28 | (11 | ) | |||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Finance receivables originated or purchased
|
— | — | (244 | ) | (471 | ) | ||||||||||
Finance receivables repaid
|
— | — | 662 | 1,350 | ||||||||||||
Proceeds on receivable sales
|
— | — | 257 | 343 | ||||||||||||
Capital expenditures
|
(169 | ) | (83 | ) | — | — | ||||||||||
Net cash used in acquisitions
|
(3 | ) | (43 | ) | — | — | ||||||||||
Proceeds from sale of repossessed assets and properties
|
— | — | 72 | 66 | ||||||||||||
Other investing activities, net
|
(39 | ) | (17 | ) | 37 | 38 | ||||||||||
Net cash provided by (used in) investing activities
|
(211 | ) | (143 | ) | 784 | 1,326 | ||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Payments on long-term lines of credit
|
— | (502 | ) | (940 | ) | — | ||||||||||
Increase in short-term debt
|
189 | — | — | — | ||||||||||||
Intergroup financing
|
(395 | ) | (212 | ) | 395 | 212 | ||||||||||
Principal payments on long-term debt
|
(13 | ) | (11 | ) | (498 | ) | (1,480 | ) | ||||||||
Proceeds from issuance of long-term debt
|
— | — | 265 | 28 | ||||||||||||
Proceeds from option exercises
|
4 | 2 | — | — | ||||||||||||
Capital contributions paid to TFC under Support Agreement
|
— | — | 112 | 146 | ||||||||||||
Other capital contributions paid to Finance group
|
— | — | 40 | 20 | ||||||||||||
Dividends paid
|
(11 | ) | (11 | ) | (179 | ) | (215 | ) | ||||||||
Other financing activities, net
|
(5 | ) | — | — | — | |||||||||||
Net cash used in financing activities
|
(231 | ) | (734 | ) | (805 | ) | (1,289 | ) | ||||||||
Effect of exchange rate changes on cash and equivalents
|
10 | (13 | ) | 1 | — | |||||||||||
Net increase (decrease) in cash and equivalents
|
(288 | ) | (727 | ) | 8 | 26 | ||||||||||
Cash and equivalents at beginning of period
|
898 | 1,748 | 33 | 144 | ||||||||||||
Cash and equivalents at end of period
|
$ | 610 | $ | 1,021 | $ | 41 | $ | 170 | ||||||||
6
Severance | Contract | |||||||||||
(In millions) | Costs | Terminations | Total | |||||||||
Three Months Ended July 3, 2010
|
||||||||||||
Cessna
|
$ | 6 | $ | — | $ | 6 | ||||||
Textron Systems
|
1 | — | 1 | |||||||||
Finance
|
2 | 1 | 3 | |||||||||
|
$ | 9 | $ | 1 | $ | 10 | ||||||
Six Months Ended July 3, 2010
|
||||||||||||
Cessna
|
$ | 14 | $ | 2 | $ | 16 | ||||||
Bell
|
1 | — | 1 | |||||||||
Textron Systems
|
1 | — | 1 | |||||||||
Finance
|
5 | 1 | 6 | |||||||||
Corporate
|
(2 | ) | — | (2 | ) | |||||||
|
$ | 19 | $ | 3 | $ | 22 | ||||||
Severance | Contract | |||||||||||
(In millions) | Costs | Terminations | Total | |||||||||
Balance at January 1, 2011
|
$ | 57 | $ | 5 | $ | 62 | ||||||
Cash paid
|
(33 | ) | (1 | ) | (34 | ) | ||||||
Balance at July 2, 2011
|
$ | 24 | $ | 4 | $ | 28 | ||||||
7
Postretirement Benefits | ||||||||||||||||
Pension Benefits | Other Than Pensions | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(In millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Three Months Ended
|
||||||||||||||||
Service cost
|
$ | 32 | $ | 31 | $ | 2 | $ | 2 | ||||||||
Interest cost
|
82 | 79 | 8 | 8 | ||||||||||||
Expected return on plan assets
|
(98 | ) | (92 | ) | — | — | ||||||||||
Amortization of prior service cost (credit)
|
4 | 4 | (2 | ) | (1 | ) | ||||||||||
Amortization of net loss
|
19 | 9 | 3 | 3 | ||||||||||||
Net periodic benefit cost
|
$ | 39 | $ | 31 | $ | 11 | $ | 12 | ||||||||
Six Months Ended
|
||||||||||||||||
Service cost
|
$ | 64 | $ | 62 | $ | 4 | $ | 4 | ||||||||
Interest cost
|
164 | 158 | 16 | 16 | ||||||||||||
Expected return on plan assets
|
(196 | ) | (184 | ) | — | — | ||||||||||
Amortization of prior service cost (credit)
|
8 | 8 | (3 | ) | (2 | ) | ||||||||||
Amortization of net loss
|
38 | 18 | 6 | 6 | ||||||||||||
Net periodic benefit cost
|
$ | 78 | $ | 62 | $ | 23 | $ | 24 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(In millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Net income
|
$ | 90 | $ | 82 | $ | 119 | $ | 74 | ||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Recognition of prior service cost and unrealized
losses on pension and postretirement benefits
|
15 | 10 | 33 | 20 | ||||||||||||
Deferred gains on hedge contracts
|
2 | — | 8 | 7 | ||||||||||||
Foreign currency translation and other
|
3 | (32 | ) | 15 | (41 | ) | ||||||||||
Comprehensive income
|
$ | 110 | $ | 60 | $ | 175 | $ | 60 | ||||||||
8
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Basic weighted-average shares outstanding
|
277,406 | 274,098 | 276,882 | 273,636 | ||||||||||||
Dilutive effect of convertible notes,
warrants, stock options and restricted stock
units
|
37,802 | 28,299 | 40,379 | 28,133 | ||||||||||||
Diluted weighted-average shares outstanding
|
315,208 | 302,397 | 317,261 | 301,769 | ||||||||||||
July 2, | January 1, | |||||||
(In millions) | 2011 | 2011 | ||||||
Commercial
|
$ | 572 | $ | 496 | ||||
U.S. Government contracts
|
320 | 416 | ||||||
|
892 | 912 | ||||||
Allowance for doubtful accounts
|
(18 | ) | (20 | ) | ||||
|
$ | 874 | $ | 892 | ||||
(Dollars in millions) | July 2, 2011 | January 1, 2011 | ||||||||||||||
Aviation
|
$ | 1,985 | 52 | % | $ | 2,120 | 46 | % | ||||||||
Golf equipment
|
167 | 4 | 212 | 5 | ||||||||||||
Golf mortgage
|
746 | 20 | 876 | 19 | ||||||||||||
Timeshare
|
543 | 14 | 894 | 19 | ||||||||||||
Structured capital
|
281 | 7 | 317 | 7 | ||||||||||||
Other liquidating
|
102 | 3 | 207 | 4 | ||||||||||||
Total finance receivables
|
3,824 | 100 | % | 4,626 | 100 | % | ||||||||||
Less: Allowance for losses
|
299 | 342 | ||||||||||||||
Less: Finance receivables held for sale
|
180 | 413 | ||||||||||||||
Total finance receivables held for investment, net
|
$ | 3,345 | $ | 3,871 | ||||||||||||
9
July 2, 2011 | January 1, 2011 | |||||||||||||||||||||||||||||||
(In millions) | Performing | Watchlist | Nonaccrual | Total | Performing | Watchlist | Nonaccrual | Total | ||||||||||||||||||||||||
Aviation
|
$ | 1,640 | $ | 203 | $ | 142 | $ | 1,985 | $ | 1,713 | $ | 238 | $ | 169 | $ | 2,120 | ||||||||||||||||
Golf equipment
|
110 | 42 | 15 | 167 | 138 | 51 | 23 | 212 | ||||||||||||||||||||||||
Golf mortgage
|
192 | 201 | 226 | 619 | 163 | 303 | 219 | 685 | ||||||||||||||||||||||||
Timeshare
|
206 | 27 | 277 | 510 | 222 | 77 | 382 | 681 | ||||||||||||||||||||||||
Structured capital
|
255 | 26 | — | 281 | 290 | 27 | — | 317 | ||||||||||||||||||||||||
Other liquidating
|
44 | 2 | 36 | 82 | 130 | 11 | 57 | 198 | ||||||||||||||||||||||||
Total
|
$ | 2,447 | $ | 501 | $ | 696 | $ | 3,644 | $ | 2,656 | $ | 707 | $ | 850 | $ | 4,213 | ||||||||||||||||
% of Total
|
67.2 | % | 13.7 | % | 19.1 | % | 63.0 | % | 16.8 | % | 20.2 | % | ||||||||||||||||||||
Less Than | Greater Than | |||||||||||||||||||
31 Days | 31-60 Days | 61-90 Days | 90 Days | |||||||||||||||||
(In millions) | Past Due | Past Due | Past Due | Past Due | Total | |||||||||||||||
July 2, 2011
|
||||||||||||||||||||
Aviation
|
$ | 1,842 | $ | 44 | $ | 38 | $ | 61 | $ | 1,985 | ||||||||||
Golf equipment
|
144 | 11 | 3 | 9 | 167 | |||||||||||||||
Golf mortgage
|
522 | 12 | — | 85 | 619 | |||||||||||||||
Timeshare
|
425 | — | — | 85 | 510 | |||||||||||||||
Structured capital
|
281 | — | — | — | 281 | |||||||||||||||
Other liquidating
|
59 | 2 | 1 | 20 | 82 | |||||||||||||||
Total
|
$ | 3,273 | $ | 69 | $ | 42 | $ | 260 | $ | 3,644 | ||||||||||
January 1, 2011
|
||||||||||||||||||||
Aviation
|
$ | 1,964 | $ | 67 | $ | 41 | $ | 48 | $ | 2,120 | ||||||||||
Golf equipment
|
171 | 13 | 9 | 19 | 212 | |||||||||||||||
Golf mortgage
|
543 | 12 | 7 | 123 | 685 | |||||||||||||||
Timeshare
|
533 | 14 | 6 | 128 | 681 | |||||||||||||||
Structured capital
|
317 | — | — | — | 317 | |||||||||||||||
Other liquidating
|
166 | 2 | 1 | 29 | 198 | |||||||||||||||
Total
|
$ | 3,694 | $ | 108 | $ | 64 | $ | 347 | $ | 4,213 | ||||||||||
10
Golf | Golf | Other | ||||||||||||||||||||||
(In millions) | Aviation | Equipment | Mortgage | Timeshare | Liquidating | Total | ||||||||||||||||||
For the six months ended July 2, 2011
|
||||||||||||||||||||||||
Impaired loans with a related
allowance for losses recorded
|
$ | 136 | $ | 4 | $ | 193 | $ | 309 | $ | 18 | $ | 660 | ||||||||||||
Impaired loans with no related allowance
for losses recorded
|
20 | — | 92 | 48 | 18 | 178 | ||||||||||||||||||
Total
|
$ | 156 | $ | 4 | $ | 285 | $ | 357 | $ | 36 | $ | 838 | ||||||||||||
For the six months ended July 3, 2010
|
||||||||||||||||||||||||
Impaired loans with a related
allowance for losses recorded
|
$ | 210 | $ | 4 | $ | 183 | $ | 357 | $ | 24 | $ | 778 | ||||||||||||
Impaired loans with no related allowance
for losses recorded
|
12 | 2 | 116 | 63 | 69 | 262 | ||||||||||||||||||
Total
|
$ | 222 | $ | 6 | $ | 299 | $ | 420 | $ | 93 | $ | 1,040 | ||||||||||||
Golf | Golf | Other | ||||||||||||||||||||||
(In millions) | Aviation | Equipment | Mortgage | Timeshare | Liquidating | Total | ||||||||||||||||||
July 2, 2011
|
||||||||||||||||||||||||
Impaired loans with
a related allowance for
losses recorded:
|
||||||||||||||||||||||||
Recorded investment
|
$ | 118 | $ | 3 | $ | 198 | $ | 245 | $ | 18 | $ | 582 | ||||||||||||
Unpaid principal balance
|
120 | 3 | 208 | 281 | 24 | 636 | ||||||||||||||||||
Related allowance
|
43 | 1 | 44 | 86 | 9 | 183 | ||||||||||||||||||
Impaired loans with no
related allowance for
losses recorded:
|
||||||||||||||||||||||||
Recorded investment
|
22 | — | 96 | 77 | 10 | 205 | ||||||||||||||||||
Unpaid principal balance
|
22 | — | 102 | 77 | 51 | 252 | ||||||||||||||||||
Total impaired loans:
|
||||||||||||||||||||||||
Recorded investment
|
140 | 3 | 294 | 322 | 28 | 787 | ||||||||||||||||||
Unpaid principal balance
|
142 | 3 | 310 | 358 | 75 | 888 | ||||||||||||||||||
Related allowance
|
43 | 1 | 44 | 86 | 9 | 183 | ||||||||||||||||||
January 1, 2011
|
||||||||||||||||||||||||
Impaired loans with
a related allowance for
losses recorded:
|
||||||||||||||||||||||||
Recorded investment
|
$ | 147 | $ | 4 | $ | 175 | $ | 355 | $ | 16 | $ | 697 | ||||||||||||
Unpaid principal balance
|
144 | 5 | 178 | 385 | 15 | 727 | ||||||||||||||||||
Related allowance
|
45 | 2 | 39 | 102 | 3 | 191 | ||||||||||||||||||
Impaired loans with no
related allowance for
losses recorded:
|
||||||||||||||||||||||||
Recorded investment
|
17 | — | 138 | 69 | 30 | 254 | ||||||||||||||||||
Unpaid principal balance
|
21 | — | 146 | 74 | 89 | 330 | ||||||||||||||||||
Total impaired loans:
|
||||||||||||||||||||||||
Recorded investment
|
164 | 4 | 313 | 424 | 46 | 951 | ||||||||||||||||||
Unpaid principal balance
|
165 | 5 | 324 | 459 | 104 | 1,057 | ||||||||||||||||||
Related allowance
|
45 | 2 | 39 | 102 | 3 | 191 | ||||||||||||||||||
11
12
Structured | ||||||||||||||||||||||||
Capital and | ||||||||||||||||||||||||
Golf | Golf | Other | ||||||||||||||||||||||
(In millions) | Aviation | Equipment | Mortgage | Timeshare | Liquidating | Total | ||||||||||||||||||
For the six months ended July 2, 2011
|
||||||||||||||||||||||||
Allowance for losses
|
||||||||||||||||||||||||
Beginning balance
|
$ | 107 | $ | 16 | $ | 79 | $ | 106 | $ | 34 | $ | 342 | ||||||||||||
Provision for losses
|
16 | (2 | ) | (1 | ) | 10 | 1 | 24 | ||||||||||||||||
Net charge-offs and transfers
|
(17 | ) | (3 | ) | (4 | ) | (28 | ) | (15 | ) | (67 | ) | ||||||||||||
Ending balance
|
$ | 106 | $ | 11 | $ | 74 | $ | 88 | $ | 20 | $ | 299 | ||||||||||||
Ending balance based on individual evaluations
|
43 | 1 | 44 | 86 | 9 | 183 | ||||||||||||||||||
Ending balance based on collective evaluation
|
63 | 10 | 30 | 2 | 11 | 116 | ||||||||||||||||||
Finance receivables
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 140 | $ | 3 | $ | 294 | $ | 322 | $ | 28 | $ | 787 | ||||||||||||
Collectively evaluated for impairment
|
1,845 | 164 | 325 | 188 | 54 | 2,576 | ||||||||||||||||||
Balance at end of period
|
$ | 1,985 | $ | 167 | $ | 619 | $ | 510 | $ | 82 | $ | 3,363 | ||||||||||||
|
||||||||||||||||||||||||
For the six months ended July 3, 2010
|
||||||||||||||||||||||||
Allowance for losses
|
||||||||||||||||||||||||
Beginning balance
|
$ | 114 | $ | 9 | $ | 65 | $ | 79 | $ | 74 | $ | 341 | ||||||||||||
Provision for losses
|
16 | 7 | 51 | 32 | (7 | ) | 99 | |||||||||||||||||
Net charge-offs
|
(30 | ) | (3 | ) | (41 | ) | (1 | ) | (13 | ) | (88 | ) | ||||||||||||
Ending balance
|
$ | 100 | $ | 13 | $ | 75 | $ | 110 | $ | 54 | $ | 352 | ||||||||||||
Ending balance based on individual evaluations
|
39 | 1 | 40 | 99 | 2 | 181 | ||||||||||||||||||
Ending balance based on collective evaluation
|
61 | 12 | 35 | 11 | 52 | 171 | ||||||||||||||||||
Finance receivables
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 163 | $ | 7 | $ | 304 | $ | 448 | $ | 85 | $ | 1,007 | ||||||||||||
Collectively evaluated for impairment
|
2,081 | 227 | 484 | 634 | 363 | 3,789 | ||||||||||||||||||
Balance at end of period
|
$ | 2,244 | $ | 234 | $ | 788 | $ | 1,082 | $ | 448 | $ | 4,796 | ||||||||||||
July 2, | January 1, | |||||||
(In millions) | 2011 | 2011 | ||||||
Finished goods
|
$ | 989 | $ | 784 | ||||
Work in process
|
2,309 | 2,125 | ||||||
Raw materials
|
418 | 506 | ||||||
|
3,716 | 3,415 | ||||||
Progress/milestone payments
|
(1,154 | ) | (1,138 | ) | ||||
|
$ | 2,562 | $ | 2,277 | ||||
13
Six Months Ended | ||||||||
July 2, | July 3, | |||||||
(In millions) | 2011 | 2010 | ||||||
Accrual at the beginning of period
|
$ | 242 | $ | 263 | ||||
Provision
|
111 | 83 | ||||||
Settlements
|
(116 | ) | (113 | ) | ||||
Adjustments to prior accrual estimates
|
(7 | ) | — | |||||
Accrual at the end of period
|
$ | 230 | $ | 233 | ||||
Asset (Liability) | ||||||||||||
July 2, | January 1, | |||||||||||
(In millions) | Borrowing Group | Balance Sheet Location | 2011 | 2011 | ||||||||
Assets
|
||||||||||||
Interest rate exchange contracts*
|
Finance | Other assets | $ | 29 | $ | 34 | ||||||
Foreign currency exchange contracts
|
Manufacturing | Other current assets | 42 | 39 | ||||||||
Total
|
$ | 71 | $ | 73 | ||||||||
Liabilities
|
||||||||||||
Interest rate exchange contracts*
|
Finance | Other liabilities | $ | (5 | ) | $ | (6 | ) | ||||
Foreign currency exchange contracts
|
Manufacturing | Accrued liabilities | (9 | ) | (2 | ) | ||||||
Total
|
$ | (14 | ) | $ | (8 | ) | ||||||
* | Interest rate exchange contracts represent fair value hedges. |
14
15
Gain (Loss) | ||||||||||||||||
Balance at | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(In millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Finance group
|
||||||||||||||||
Impaired finance receivables
|
$ | 407 | $ | 519 | $ | (50 | ) | $ | (104 | ) | ||||||
Finance receivables held for sale
|
180 | 421 | (14 | ) | (15 | ) | ||||||||||
Other assets
|
91 | 87 | (18 | ) | (26 | ) | ||||||||||
16
July 2, 2011 | January 1, 2011 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
(In millions) | Value | Fair Value | Value | Fair Value | ||||||||||||
Manufacturing group
|
||||||||||||||||
Long-term debt, excluding leases
|
$ | (2,219 | ) | $ | (2,776 | ) | $ | (2,172 | ) | $ | (2,698 | ) | ||||
Finance group
|
||||||||||||||||
Finance receivables held for investment, excluding leases
|
2,878 | 2,639 | 3,345 | 3,131 | ||||||||||||
Debt
|
(2,499 | ) | (2,442 | ) | (3,660 | ) | (3,528 | ) | ||||||||
17
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(In millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
REVENUES
|
||||||||||||||||
Manufacturing Group
|
||||||||||||||||
Cessna
|
$ | 652 | $ | 635 | $ | 1,208 | $ | 1,068 | ||||||||
Bell
|
872 | 823 | 1,621 | 1,441 | ||||||||||||
Textron Systems
|
452 | 534 | 897 | 992 | ||||||||||||
Industrial
|
719 | 661 | 1,422 | 1,286 | ||||||||||||
|
2,695 | 2,653 | 5,148 | 4,787 | ||||||||||||
Finance Group
|
33 | 56 | 59 | 132 | ||||||||||||
Total revenues
|
$ | 2,728 | $ | 2,709 | $ | 5,207 | $ | 4,919 | ||||||||
SEGMENT OPERATING PROFIT
|
||||||||||||||||
Manufacturing Group
|
||||||||||||||||
Cessna
|
$ | 5 | $ | 3 | $ | (33 | ) | $ | (21 | ) | ||||||
Bell
|
120 | 108 | 211 | 182 | ||||||||||||
Textron Systems
|
49 | 70 | 102 | 125 | ||||||||||||
Industrial
|
55 | 51 | 116 | 100 | ||||||||||||
|
229 | 232 | 396 | 386 | ||||||||||||
Finance Group
|
(33 | ) | (71 | ) | (77 | ) | (129 | ) | ||||||||
Segment profit
|
196 | 161 | 319 | 257 | ||||||||||||
Corporate expenses and other, net
|
(23 | ) | (17 | ) | (62 | ) | (54 | ) | ||||||||
Interest expense, net for Manufacturing group
|
(38 | ) | (35 | ) | (76 | ) | (71 | ) | ||||||||
Special charges
|
— | (10 | ) | — | (22 | ) | ||||||||||
Income from continuing operations before income taxes
|
$ | 135 | $ | 99 | $ | 181 | $ | 110 | ||||||||
18
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(Dollars in millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues
|
$ | 2,728 | $ | 2,709 | $ | 5,207 | $ | 4,919 | ||||||||
% change compared with prior period
|
0.7 | % | 5.9 | % | ||||||||||||
• | Higher Industrial segment revenues of $58 million, primarily due to a favorable foreign exchange impact of $43 million, largely due to fluctuations with the euro; | ||
• | Higher revenues of $49 million in the Bell segment, largely due to higher volume in our military programs reflecting higher deliveries of H-1 aircraft; and | ||
• | An increase in Cessna’s revenue of $17 million, primarily related to pricing; | ||
• | Partially offset by a decrease in Textron Systems’ revenue of $82 million, primarily due to lower volume in the Unmanned Aircraft System (UAS) and Mission Support and Other product lines; and | ||
• | Lower revenues at the Finance segment of $23 million, primarily attributable to the lower average finance receivable portfolio balance resulting from the continued liquidation. |
• | Higher revenues of $180 million in the Bell segment, largely due to higher volume in our military programs reflecting higher deliveries of V-22 and H-1 aircraft; | ||
• | An increase in Cessna revenues of $140 million, primarily due to a $108 million impact related to the mix of light- and mid-size Citation business jets sold in the first half of 2011; and | ||
• | Higher Industrial segment revenues of $136 million, largely due to higher volume of $68 million, reflecting continued improvements in the automotive industry, and a favorable foreign exchange impact of $50 million, largely due to fluctuations with the euro; | ||
• | Partially offset by a decrease in Textron Systems’ revenue of $95 million, primarily due to lower volume in the UAS and Mission Support and Other product lines; and | ||
• | Lower revenues at the Finance segment of $73 million, primarily attributable to the lower average finance receivable portfolio balance resulting from the continued liquidation. |
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(Dollars in millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Operating expenses
|
$ | 2,520 | $ | 2,487 | $ | 4,879 | $ | 4,548 | ||||||||
% change compared with prior period
|
1.3 | % | 7.3 | % | ||||||||||||
Cost of sales
|
$ | 2,225 | $ | 2,188 | $ | 4,280 | $ | 3,963 | ||||||||
% change compared with prior period
|
1.7 | % | 8.0 | % | ||||||||||||
Gross margin percentage of Manufacturing revenues
|
17.4 | % | 17.5 | % | 16.9 | % | 17.2 | % | ||||||||
Selling and administrative expenses
|
$ | 295 | $ | 299 | $ | 599 | $ | 585 | ||||||||
% change compared with prior period
|
(1.3 | %) | 2.4 | % | ||||||||||||
19
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(Dollars in millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Interest expense
|
$ | 61 | $ | 69 | $ | 123 | $ | 140 | ||||||||
% change compared with prior period
|
(11.6 | %) | (12.1 | %) | ||||||||||||
July 2, | January 1, | |||||||
(In millions) | 2011 | 2011 | ||||||
Bell
|
$ | 6,953 | $ | 7,199 | ||||
Cessna
|
2,522 | 2,928 | ||||||
Textron Systems
|
1,550 | 1,598 | ||||||
20
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(Dollars in millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues
|
$ | 652 | $ | 635 | $ | 1,208 | $ | 1,068 | ||||||||
Operating expenses
|
647 | 632 | 1,241 | 1,089 | ||||||||||||
Segment profit (loss)
|
5 | 3 | (33 | ) | (21 | ) | ||||||||||
Profit margin
|
0.8 | % | 0.5 | % | (2.7 | )% | (2.0 | )% | ||||||||
Q2 2011 | YTD 2011 | |||||||
versus | versus | |||||||
(In millions) | Q2 2010 | YTD 2010 | ||||||
Volume and mix
|
$ | 3 | $ | 127 | ||||
Pricing
|
14 | 13 | ||||||
Total change
|
$ | 17 | $ | 140 | ||||
21
Q2 2011 | YTD 2011 | |||||||
versus | versus | |||||||
(In millions) | Q2 2010 | YTD 2010 | ||||||
Volume and mix
|
$ | (2 | ) | $ | 14 | |||
Pricing, net of inflation
|
10 | 6 | ||||||
Performance
|
(6 | ) | (32 | ) | ||||
Total change
|
$ | 2 | $ | (12 | ) | |||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(Dollars in millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues
|
||||||||||||||||
V-22 program
|
$ | 360 | $ | 358 | $ | 718 | $ | 568 | ||||||||
Other military
|
259 | 210 | 429 | 408 | ||||||||||||
Commercial
|
253 | 255 | 474 | 465 | ||||||||||||
Total revenues
|
872 | 823 | 1,621 | 1,441 | ||||||||||||
Operating expenses
|
752 | 715 | 1,410 | 1,259 | ||||||||||||
Segment profit
|
120 | 108 | 211 | 182 | ||||||||||||
Profit margin
|
13.8 | % | 13.1 | % | 13.0 | % | 12.6 | % | ||||||||
Q2 2011 | YTD 2011 | |||||||
versus | versus | |||||||
(In millions) | Q2 2010 | YTD 2010 | ||||||
Volume
|
$ | 47 | $ | 171 | ||||
Other
|
2 | 9 | ||||||
Total change
|
$ | 49 | $ | 180 | ||||
22
Q2 2011 | YTD 2011 | |||||||
versus | versus | |||||||
(In millions) | Q2 2010 | YTD 2010 | ||||||
Volume and mix
|
$ | (13 | ) | $ | (9 | ) | ||
Pricing, net of inflation
|
(3 | ) | — | |||||
Performance
|
28 | 38 | ||||||
Total change
|
$ | 12 | $ | 29 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(Dollars in millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues
|
$ | 452 | $ | 534 | $ | 897 | $ | 992 | ||||||||
Operating expenses
|
403 | 464 | 795 | 867 | ||||||||||||
Segment profit
|
49 | 70 | 102 | 125 | ||||||||||||
Profit margin
|
10.8 | % | 13.1 | % | 11.4 | % | 12.6 | % | ||||||||
23
Q2 2011 | YTD 2011 | |||||||
versus | versus | |||||||
(In millions) | Q2 2010 | YTD 2010 | ||||||
Volume
|
$ | (81 | ) | $ | (97 | ) | ||
Other
|
(1 | ) | 2 | |||||
Total change
|
$ | (82 | ) | $ | (95 | ) | ||
Q2 2011 | YTD 2011 | |||||||
versus | versus | |||||||
(In millions) | Q2 2010 | YTD 2010 | ||||||
Volume
|
$ | (16 | ) | $ | (20 | ) | ||
Other
|
(5 | ) | (3 | ) | ||||
Total change
|
$ | (21 | ) | $ | (23 | ) | ||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(Dollars in millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues:
|
||||||||||||||||
Fuel systems and functional components
|
$ | 450 | $ | 417 | $ | 921 | $ | 823 | ||||||||
Other industrial
|
269 | 244 | 501 | 463 | ||||||||||||
Total revenues
|
719 | 661 | 1,422 | 1,286 | ||||||||||||
Operating expenses
|
664 | 610 | 1,306 | 1,186 | ||||||||||||
Segment profit
|
55 | 51 | 116 | 100 | ||||||||||||
Profit margin
|
7.6 | % | 7.7 | % | 8.2 | % | 7.8 | % | ||||||||
Q2 2011 | YTD 2011 | |||||||
versus | versus | |||||||
(In millions) | Q2 2010 | YTD 2010 | ||||||
Volume
|
$ | 5 | $ | 68 | ||||
Foreign exchange
|
43 | 50 | ||||||
Acquisitions
|
8 | 11 | ||||||
Other
|
2 | 7 | ||||||
Total change
|
$ | 58 | $ | 136 | ||||
24
Q2 2011 | YTD 2011 | |||||||
versus | versus | |||||||
(In millions) | Q2 2010 | YTD 2010 | ||||||
Volume
|
$ | 2 | $ | 18 | ||||
Inflation, net of pricing
|
(12 | ) | (23 | ) | ||||
Performance
|
10 | 16 | ||||||
Other
|
4 | 5 | ||||||
Total change
|
$ | 4 | $ | 16 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, | July 3, | July 2, | July 3, | |||||||||||||
(In millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues
|
$ | 33 | $ | 56 | $ | 59 | $ | 132 | ||||||||
Provision for losses on finance receivables
|
12 | 44 | 24 | 99 | ||||||||||||
Segment profit (loss)
|
(33 | ) | (71 | ) | (77 | ) | (129 | ) | ||||||||
25
• | $32 million in lower provision for loan losses, primarily the result of a decline in the accounts identified as nonaccrual during the quarter as compared to last year; and | ||
• | $15 million in lower operating and administrative expenses, primarily due to lower compensation expense associated with a workforce reduction and other cost reductions related to the exit of the non-captive business; | ||
• | Partially offset by a $17 million reduction in interest margin resulting from the lower average finance receivable portfolio balance. |
• | $75 million in lower provision for loan losses, primarily the result of a decline in the accounts identified as nonaccrual during the first half of 2011 as compared to last year; and | ||
• | $25 million in lower operating and administrative expenses, primarily due to lower compensation expense associated with a workforce reduction and other cost reductions related to the exit of the non-captive business; | ||
• | Partially offset by a $37 million reduction in interest margin resulting from the lower average finance receivable portfolio balance. |
July 2, | January 1, | |||||||
(Dollars in millions) | 2011 | 2011 | ||||||
Finance receivables held for investment
|
$ | 3,644 | $ | 4,213 | ||||
Nonaccrual finance receivables
|
$ | 696 | $ | 850 | ||||
Allowance for losses
|
$ | 299 | $ | 342 | ||||
Ratio of nonaccrual finance receivables to finance receivables held for investment
|
19.10 | % | 20.17 | % | ||||
Ratio of allowance for losses on impaired nonaccrual finance receivables to impaired nonaccrual finance
receivables
|
27.46 | % | 23.82 | % | ||||
Ratio of allowance for losses on finance receivables to nonaccrual finance receivables held for investment
|
42.96 | % | 40.30 | % | ||||
Ratio of allowance for losses on finance receivables to finance receivables held for investment
|
8.21 | % | 8.13 | % | ||||
60+
days contractual delinquency as a percentage of finance receivables
held for investment
|
8.29 | % | 9.77 | % | ||||
60+ days contractual delinquency
|
$ | 302 | $ | 411 | ||||
Repossessed assets and properties
|
$ | 131 | $ | 157 | ||||
Operating assets received in satisfaction of troubled finance receivables
|
$ | 80 | $ | 107 | ||||
26
July 2, | January 1, | |||||||
(Dollars in millions) | 2011 | 2011 | ||||||
Manufacturing group
|
||||||||
Cash and equivalents
|
$ | 610 | $ | 898 | ||||
Debt
|
2,543 | 2,302 | ||||||
Shareholders’ equity
|
3,174 | 2,972 | ||||||
Capital (debt plus shareholders’ equity)
|
5,717 | 5,274 | ||||||
Net debt (net of cash and equivalents) to capital
|
37.9 | % | 32.1 | % | ||||
Debt to capital
|
44.5 | % | 43.6 | % | ||||
Finance group
|
||||||||
Cash and equivalents
|
$ | 41 | $ | 33 | ||||
Debt
|
2,499 | 3,660 | ||||||
27
Six Months Ended | ||||||||
July 2, | July 3, | |||||||
(In millions) | 2011 | 2010 | ||||||
Operating activities
|
$ | 146 | $ | 166 | ||||
Investing activities
|
(211 | ) | (143 | ) | ||||
Financing activities
|
(231 | ) | (734 | ) | ||||
Six Months Ended | ||||||||
July 2, | July 3, | |||||||
(In millions) | 2011 | 2010 | ||||||
Dividends paid by TFC to Textron Inc.
|
$ | 179 | $ | 215 | ||||
Capital contributions paid to TFC under Support Agreement
|
(112 | ) | (146 | ) | ||||
Six Months Ended | ||||||||
July 2, | July 3, | |||||||
(In millions) | 2011 | 2010 | ||||||
Operating activities
|
$ | 28 | $ | (11 | ) | |||
Investing activities
|
784 | 1,326 | ||||||
Financing activities
|
(805 | ) | (1,289 | ) | ||||
28
Six Months Ended | ||||||||
July 2, | July 3, | |||||||
(In millions) | 2011 | 2010 | ||||||
Operating activities
|
$ | 219 | $ | 250 | ||||
Investing activities
|
501 | 1,039 | ||||||
Financing activities
|
(1,009 | ) | (1,974 | ) | ||||
29
Six Months Ended | ||||||||
July 2, | July 3, | |||||||
(In millions) | 2011 | 2010 | ||||||
Reclassifications from investing activities:
|
||||||||
Finance receivable originations for Manufacturing group inventory sales
|
$ | (134 | ) | $ | (201 | ) | ||
Cash received from customers and sale of receivables
|
240 | 360 | ||||||
Other capital contributions made to Finance group
|
(40 | ) | — | |||||
Other
|
6 | (15 | ) | |||||
Total reclassifications from investing activities
|
72 | 144 | ||||||
Reclassifications from financing activities:
|
||||||||
Capital contribution paid by Manufacturing group to Finance group under
Support Agreement
|
112 | 146 | ||||||
Dividends received by Manufacturing group from Finance group
|
(179 | ) | (215 | ) | ||||
Other capital contributions made to Finance group
|
40 | — | ||||||
Other
|
— | 20 | ||||||
Total reclassifications from financing activities
|
(27 | ) | (49 | ) | ||||
Total reclassifications and adjustments to cash flow from operating activities
|
$ | 45 | $ | 95 | ||||
• | Changing priorities or reductions in the U.S. Government defense budget, including those related to military operations in foreign countries; | ||
• | Changes in worldwide economic or political conditions that impact demand for our products, interest rates or foreign exchange rates; | ||
• | Our ability to perform as anticipated and to control costs under contracts with the U.S. Government; | ||
• | The U.S. Government’s ability to unilaterally modify or terminate its contracts with us for the U.S. Government’s convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain circumstances, to suspend or debar us as a contractor eligible to receive future contract awards; | ||
• | Changes in foreign military funding priorities or budget constraints and determinations, or changes in government regulations or policies on the export and import of military and commercial products; | ||
• | Our Finance segment’s ability to maintain portfolio credit quality or to realize full value of receivables and of assets acquired upon foreclosure of receivables; | ||
• | Textron Financial Corporation’s (“TFC”) ability to maintain certain minimum levels of financial performance required under its committed bank line of credit and under Textron’s support agreement with TFC; | ||
• | Our ability to access the capital markets at reasonable rates; | ||
• | Performance issues with key suppliers, subcontractors or business partners; | ||
• | Legislative or regulatory actions impacting our operations or demand for our products; | ||
• | Our ability to control costs and successfully implement various cost-reduction activities; | ||
• | The efficacy of research and development investments to develop new products or unanticipated expenses in connection with the launching of significant new products or programs; | ||
• | The timing of our new product launches or certifications of our new aircraft products; | ||
• | Our ability to keep pace with our competitors in the introduction of new products and upgrades with features and technologies desired by our customers; |
30
• | The extent to which we are able to pass raw material price increases through to customers or offset such price increases by reducing other costs; | ||
• | Increases in pension expenses or employee and retiree medical benefits; | ||
• | Uncertainty in estimating reserves, including reserves established to address contingent liabilities, unrecognized tax benefits, or potential losses on TFC’s receivables; | ||
• | Difficult conditions in the financial markets which may adversely impact our customers’ ability to fund or finance purchases of our products; and | ||
• | Continued volatility in the economy resulting in a prolonged downturn in the markets in which we do business. |
31
12.1
|
Computation of ratio of income to fixed charges of Textron Inc. Manufacturing Group | |
|
||
12.2
|
Computation of ratio of income to fixed charges of Textron Inc. including all majority-owned subsidiaries | |
|
||
31.1
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
|
||
31.2
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
|
||
32.1
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
|
||
32.2
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
|
||
101
|
The following materials from Textron Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended July 2, 2011, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Operations, (ii) the Consolidated Balance Sheets, (iii) the Consolidated Statements of Cash Flows and (iv) Notes to the Consolidated Financial Statements. |
TEXTRON INC.
|
||||
Date: July 29, 2011 | /s/ Richard L. Yates | |||
Richard L. Yates | ||||
Senior Vice President and Corporate Controller (principal accounting officer) |
32
12.1
|
Computation of ratio of income to fixed charges of Textron Inc. Manufacturing Group | |
|
||
12.2
|
Computation of ratio of income to fixed charges of Textron Inc. including all majority-owned subsidiaries | |
|
||
31.1
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
|
||
31.2
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
|
||
32.1
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
|
||
32.2
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
|
||
101
|
The following materials from Textron Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended July 2, 2011, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Operations, (ii) the Consolidated Balance Sheets, (iii) the Consolidated Statements of Cash Flows and (iv) Notes to the Consolidated Financial Statements. |
33
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
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DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
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No information found
Customers
Customer name | Ticker |
---|---|
American Water Works Company, Inc. | AWK |
Southwest Airlines Co. | LUV |
Suppliers
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
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