SELECTED FINANCIAL STATISTICS 2020-2016

Financial data 2020-2019

return on invested capital (ROIC)

(Dollars in millions, except where noted and per share amounts) 2020 2019 2018 2017 2016
Income Statement Data
Revenues 11,651  13,630 13,972 14,198 13,788
Segment profit 751  1,270 1,267 1,169 1,309
Corporate expenses and other, net (122)  (110) (119) (132) (172)
Interest expense, net for Manufacturing Group (145)  (146) (135) (145) (138)
Special charges (147)  (72) (73) (130) (123)
Inventory charge (55) — — — —
Gain on business disposition — — 444 — —
Income tax (expense) benefit 27   (127) (162) (456) (33)
Effective tax rate (9.6)% 13.5% 11.7% 59.8% 3.8%
Income from continuing operations 309  815 1,222 306 843
Diluted EPS from continuing operations 1.35  3.50 4.83 1.14 3.09
Special charges, net of tax 0.52  0.24 0.22 0.32 0.29
Inventory charge, net of tax 0.24  — — — —
Tax benefit—TRU assets held for sale (0.04) — — — —
Gain on business disposition, net of taxes — — (1.65) — —
Income tax expense (benefit) resulting from the Tax Cuts and Jobs Act — — (0.06) 0.99 —
Income tax settlement — — — — (0.76)
Adjusted Diluted EPS—Non-GAAP1 2.07 3.74 3.34 2.45 2.62 
Balance Sheet Data—Manufacturing Group
Cash and equivalents 2,146 1,181 987 1,079 1,137
Accounts receivable, net 787 921 1,024 1,363 1,064
Inventories 3,513 4,069 3,818 4,150 4,464
Property, plant and equipment, net 2,516 2,527 2,615 2,721 2,581
Goodwill 2,157 2,150 2,218 2,364 2,113
Total assets 14,505 14,054 13,247 14,171 14,078
Total debt 3,707 3,124 3,066 3,088 2,777
Total liabilities 8,825 8,697 8,246 8,740 8,661
Total Company shareholders' equity 5,845 5,518 5,192 5,647 5,574
Non-GAAP Cash Flow Calculations—Manufacturing Group
Net cash from operating activities of continuing operations—GAAP2 833 960 1,127 930 901
Less: Capital expenditures (317) (339) (369) (423) (446)
Dividends received from TFC — (50) (50) — (29)
Plus: Total pension contributions 47 51 52 358 50
Proceeds from an insurance recovery and the sale of property, plant and equipment 33 9 14 7 10
Taxes paid on gain on business disposition — 11 10 — —
Manufacturing cash flow before pension contributions—Non-GAAP2,3 596 642 784 872 486
Cash Flow Items—Manufacturing Group
Depreciation and amortization 386  410 429 435 437
Net cash used in acquisitions (15)  (2) (23) (331) (186)
Net proceeds from business disposition — — 807 — —
Net change in debt 589  49  (5) 288 91
Dividends paid (18) (18) (20) (21) (22)
Purchases of Textron common stock (183) (503) (1,783) (582) (241)
Total number of shares purchased (in thousands) 4,145 10,011 29,094 11,918 6,898
Key Ratios
Segment profit margin 6.4% 9.3% 9.1% 8.2% 9.5%
Selling and administrative expense as % of sales 9.0% 8.5% 9.1% 9.4% 9.6%
Inventory turns (based on FIFO) 2.5x 2.9x 2.8x 2.4x 2.3x
Debt-to-capital (net of cash)—Manufacturing Group 21% 26% 29% 26% 23%
Stock-Related Information
Stock price at year-end 48.33 44.74 45.65 56.59 48.56
Dividend payout ratio 6% 2% 2% 7% 3%
Dividends declared per share 0.08 0.08 0.08 0.08 0.08
Other Statistics
Number of employees at year-end 33,000 35,000 35,000 37,000 36,000
Average revenues per employee (in thousands) 353 389 399 384 383
1 For 2020 and 2019, see footnote 4 from page 11. For 2018, 2017 and 2016 adjusted diluted earnings per share excludes a Gain on business disposition, net of taxes, Special charges, net of taxes, the income tax expense (benefit) resulting from the Tax Act and a significant multi-year income tax settlement. The Gain on business disposition is not considered indicative of ongoing operations as it is a significant one-time transaction. We consider items recorded in Special charges such as enterprise-wide restructuring and acquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative of ongoing operations. The impact from the Tax Act and the income tax settlement are not considered to be indicative of ongoing operations, since they represent significant one-time adjustments.
2 For the years 2017 and 2016, $17 million and $87 million, respectively, of net proceeds from the settlement of corporate-owned life insurance policies were reclassified from operating activities to investing activities as a result of the adoption of a new accounting standard at the beginning of 2018.
3 Manufacturing cash flow before pension contributions adjusts net cash from operating activities (GAAP) for the following:
  • Deducts capital expenditures and includes proceeds from an insurance recovery 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;
  • Excludes taxes paid related to the gain realized in 2018 on the Tools and Test business disposition. We have made this adjustment to the non-GAAP measure because we believe this use of cash is not representative of cash used by our manufacturing operations.
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.