2013 Investor Fact Book
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Selected Financial Statistics 2013 – 2009

                     
(Dollars in millions, except where noted and per share amounts)
 
2013
 
2012
 
2011
 
2010
 
2009
Income Statement Data
                   
Revenues
$
12,104
$
12,237
$
11,275
$
10,525
$
10,500
Segment profit
 
963
 
1,132
 
591
 
553
 
475
Special charges
 
 
 
 
(190)
 
(317)
Corporate expenses and other, net
 
(166)
 
(148)
 
(114)
 
(137)
 
(164)
Interest expense, net for Manufacturing group
 
(123)
 
(143)
 
(140)
 
(140)
 
(143)
Income tax benefit (expense)
 
(176)
 
(260)
 
(95)
 
6
 
76
Effective tax rate
 
26.1%
 
30.9%
 
28.2%
 
(6.4)%
 
(51.0)%
Income from continuing operations
$
498
$
581
$
242
$
92
$
(73)
Diluted EPS from continuing operations
$
1.75
$
1.97
$
0.79
$
0.30
$
(0.28)
Balance Sheet Data – Manufacturing Group
                   
Cash and equivalents
$
1,163
$
1,378
$
871
$
898
$
1,748
Accounts receivable, net
 
979
 
829
 
856
 
892
 
894
Inventories
 
2,963
 
2,712
 
2,402
 
2,277
 
2,273
Property, plant and equipment, net
 
2,215
 
2,149
 
1,996
 
1,932
 
1,968
Goodwill
 
1,735
 
1,649
 
1,635
 
1,632
 
1,622
Total assets from continuing operations
 
11,219
 
10,711
 
10,402
 
10,333
 
11,428
Total debt
 
1,931
 
2,301
 
2,459
 
2,302
 
3,584
Total liabilities from continuing operations
 
7,044
 
8,076
 
8,070
 
7,933
 
9,445
Shareholders’ equity
 
4,384
 
2,991
 
2,745
 
2,972
 
2,826
Non-GAAP Cash Flow Calculations – Manufacturing Group
                   
Net cash provided by operating activities of continuing operations – GAAP
$
658
$
958
$
761
$
730
$
738
Less:
                   
Capital expenditures
 
(444)
 
(480)
 
(423)
 
(270)
 
(238)
Dividends received from TFC
 
(175)
 
(345)
 
(179)
 
(505)
 
(349)
Plus:
                   
Capital contributions paid to TFC
 
1
 
240
 
182
 
383
 
270
Proceeds on sale of property, plant and equipment
 
22
 
15
 
17
 
4
 
3
Total pension contributions1
 
194
 
405
 
642
 
417
 
79
Manufacturing cash flow before pension contributions – Non-GAAP2
$
256
$
793
$
1,000
$
759
$
503
Cash Flow Items – Manufacturing Group
                   
Depreciation and amortization
$
371
$
358
$
371
$
362
$
373
Net cash used in acquisitions
 
(196)
 
(11)
 
(14)
 
(57)
 
Net change in debt
 
(321)
 
299
 
(288)
 
(1,199)
 
803
Dividends paid
 
(22)
 
(17)
 
(22)
 
(22)
 
(21)
Purchases of Textron common stock
 
 
(272)
 
 
 
Total number of shares purchased (in thousands)
 
 
11,103
 
 
 
Key Ratios
                   
Segment profit margin
 
8.0%
 
9.3%
 
5.2%
 
5.3%
 
4.5%
Selling and administrative expenses as % of sales
 
9.3%
 
9.5%
 
10.5%
 
11.7%
 
12.8%
Inventory turns (based on FIFO)
 
2.6x
 
2.8x
 
2.8x
 
2.7x
 
2.6x
Ratio of income to fixed charges – Manufacturing group
 
6.23x
 
5.84x
 
4.22x
 
3.67x
 
2.29x
Debt-to-capital (net of cash) – Manufacturing group
 
15%
 
24%
 
37%
 
32%
 
39%
Stock-Related Information
                   
Stock price at year-end
$
36.61
$
24.12
$
18.49
$
23.64
$
18.81
Dividend payout ratio
 
5%
 
4%
 
10%
 
26%
 
(29)%
Dividends declared per share
$
0.08
$
0.08
$
0.08
$
0.08
$
0.08
Other Statistics
                   
Number of employees at year-end
 
32,000
 
33,000
 
32,000
 
32,000
 
32,000
Average revenues per employee (in thousands)
$
378
$
371
$
354
$
327
$
293
1 In 2011, we changed the definition of our non-GAAP cash flow measure to exclude all pension contributions. Prior periods have been recast to conform to this presentation.
2 We use Manufacturing cash flow before pension contributions as our measure of free cash flow. This measure is not a financial measure under generally accepted accounting principles (GAAP) and should be used in conjunction with GAAP cash measures provided in our Consolidated Statement of Cash Flows. Free cash flow is a measure generally used by investors, analysts and management to gauge a company’s ability to generate cash from operations in excess of that necessary to be reinvested to sustain and grow the business and fund its obligations. Our definition of Manufacturing cash flow before pension contributions adjusts net cash from operating activities of continuing operations for dividends received from TFC, capital contributions provided under the Support Agreement and debt agreements, capital expenditures, proceeds from the sale of property, plant and equipment and contributions to our pension plans. We believe that our calculation provides a relevant measure of liquidity and is a useful basis for assessing our ability to fund operations and obligations. This measure may not be comparable with similarly titled measures reported by other companies, as there is no definitive accounting standard on how the measure should be calculated.