| (Dollars in Millions, Except Per Share Amounts) | 2021 | 2020 |
| Total Revenues | $ 12,382 | $ 11,651 |
| Total Segment Profit | 1,134 | 751 |
| Income from Continuing Operations—GAAP | 747 | 309 |
| Adjusted Net Income from Continuing Operations—Non-GAAP1 | 748 | 475 |
Per Share of Common Stock |
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| Common Stock Price at Year-End | $ 77.20 | $ 48.33 |
| Diluted Income from Continuing Operations—GAAP | 3.30 | 1.35 |
| Adjusted Diluted Income from Continuing Operations—Non-GAAP1 | 3.30 | 2.07 |
COMMON SHARES OUTSTANDING (In Thousands) |
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| Diluted Average | 226,520 | 228,979 |
| Year-End | 216,935 | 226,444 |
FINANCIAL POSITION |
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| Total Assets | $15,827 | $15,443 |
| Manufacturing Group Debt | 3,185 | 3,707 |
| Finance Group Debt | 582 | 662 |
| Shareholders’ Equity | 6,815 | 5,845 |
| Manufacturing Group Debt-to-Capital (Net of Cash) | 16% | 21% |
| Manufacturing Group Debt-to-Capital | 32% | 39% |
KEY PERFORMANCE METRICS |
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| Net Cash from Operating Activities of Continuing Operations for Manufacturing Group—GAAP | $ 1,469 | $ 833 |
| Manufacturing Cash Flow Before Pension Contributions—Non-GAAP1 | 1,149 | 596 |
1. Adjusted Income from Continuing Operations, Adjusted Diluted Earnings Per Share and Manufacturing Cash Flow Before Pension Contributions are Non-GAAP Measures. See page 7 for a Reconciliation to GAAP.
Footnote To Selected Year-Over-Year Financial Data
ADJUSTED INCOME FROM CONTINUING OPERATIONS AND ADJUSTED DILUTED EARNINGS PER SHARE
Adjusted income from continuing operations and adjusted diluted earnings per share exclude special charges, net of tax. We consider items recorded in special charges, such as enterprise-wide restructuring, certain asset impairment charges, and acquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative of ongoing operations. In addition, we have excluded certain impacts of the enterprise-wide restructuring plan on TRU Simulation + Training Canada Inc. (TRU Canada) that are not included within special charges, but are of a non-recurring nature and are not indicative of ongoing operations. At TRU Canada, an inventory charge is excluded as it relates to the write-down of inventory in connection with an action taken under the restructuring plan. Due to the substantial decline in demand and order cancellations for flight simulators resulting from the impact of the pandemic on the commercial air transportation business, we ceased manufacturing at TRU Canada’s Montreal facility, resulting in the production suspension of its commercial air transport simulators. As a result of this action and market conditions, the related inventory was written down to its net realizable value in the second quarter of 2020. In the fourth quarter of 2020, we reached a definitive agreement to sell TRU Canada, which resulted in the recognition of an $8 million tax benefit, and in the first quarter of 2021, TRU Canada was sold. The tax benefit and the after-tax gain are both excluded as they were incurred in connection with the enterprise-wide restructuring plan.
INCOME FROM CONTINUING OPERATIONS AND DILUTED EARNINGS PER SHARE GAAP TO NON-GAAP RECONCILIATION
| (Dollars in Millions, Except Per Share Amounts) | 2021 | 2020 |
| Income from continuing operations—GAAP | $ 747 | $ 309 |
| Add: Special charges, net of taxes | 18 | 119 |
| Inventory charge, net of tax | — | 55 |
| Tax benefit—TRU assets held for sale | — | (8) |
| Less: Gain on business disposition, net of tax | (17) | — |
| Adjusted income from continuing operations—Non-GAAP | $ 748 | $ 475 |
| Earnings per share: | ||
| Income from continuing operations—GAAP | $ 3.30 | $ 1.35 |
| Add: Special charges, net of tax: | 0.08 | 0.52 |
| Inventory charge, net of tax | — | 0.24 |
| Tax benefit—TRU assets held for sale | — | (0.04) |
| Less: Gain on business disposition, net of tax | (0.08) | — |
| Adjusted income from continuing operations—Non-GAAP | $ 3.30 | $ 2.07 |
Manufacturing Cash Flow Before Pension Contributions
Manufacturing cash flow before pension contributions adjusts net cash from operating activities (GAAP) for the following:
- Deducts capital expenditures and includes proceeds from insurance recoveries and the sale of property, plant and equipment to arrive at the net capital investment required to support ongoing manufacturing operations;
- Excludes dividends received from Textron Financial Corporation (TFC) and capital contributions to TFC provided under the Support Agreement and debt agreements as these cash flows are not representative of manufacturing operations;
- Adds back pension contributions as we consider our pension obligations to be debt-like liabilities. Additionally, these contributions can fluctuate significantly from period to period and we believe that they are not representative of cash used by our manufacturing operations during the period;
While we believe this measure provides a focus on cash generated from manufacturing operations, before pension contributions, and may be used as an additional relevant measure of liquidity, it does not necessarily provide the amount available for discretionary expenditures since we have certain non-discretionary obligations that are not deducted from the measure.
MANUFACTURING CASH FLOW BEFORE PENSION CONTRIBUTIONS GAAP TO NON-GAAP RECONCILIATION
| (In Millions) | 2021 | 2020 | |
| Net cash from operating activities—GAAP | $ 1,469 | $ 833 | |
| Less: | Capital expenditures | (375) | (317) |
| Add: | Total pension contribution | 52 | 47 |
| Proceeds from an insurance recovery and sale of property, plant and equipment | 3 | 33 | |
| Manufacturing cash flow before pension contributions—Non-GAAP | $ 1,149 | $ 596 | |