SELECTED FINANCIAL STATISTICS 2021-2017

Financial data 2021-2020

return on invested capital (ROIC)

(Dollars in millions, except where noted and per share amounts) 2021 2020 2019 2018 2017
Income Statement Data
Revenues 12,382  11,651 13,630 13,972 14,198
Segment profit 1,134  751 1,270 1,267 1,169
Corporate expenses and other, net (129)  (122) (110) (119) (132)
Interest expense, net for Manufacturing Group (124)  (145) (146) (135) (145)
Special charges (25)  (147) (72) (73) (130)
Gain on business disposition 17  — — 444 —
Inventory charge —  (55) — — —
Income tax expense (benefit) 126  27  (127) (162) (456)
Effective tax rate 14.4% (9.6)% 13.5% 11.7% 59.8%
Income from continuing operations 747 309 815 1,222 306
Diluted EPS from continuing operations 3.30 1.35 3.50 4.83 1.14
Special charges, net of tax 0.08 0.52 — 0.22 0.32
Gain on business disposition, net of taxes (0.08) — — (1.65) —
Inventory charge, net of tax — 0.24 0.24 — —
Tax benefit—TRU assets held for sale — (0.04) — — —
Income tax expense resulting from the Tax Cuts and Jobs Act — — — (0.06) 0.99
Adjusted Diluted EPS—Non-GAAP1 3.30 2.07 3.74 3.34 2.45
Balance Sheet Data—Manufacturing Group
Cash and equivalents 1,922 2,146 1,181 987 1,079
Accounts receivable, net 838 787 921 1,024 1,363
Inventories 3,468 3,513 4,069 3,818 4,150
Property, plant and equipment, net 2,538 2,516 2,527 2,615 2,721
Goodwill 2,149 2,157 2,150 2,218 2,364
Total assets 14,960 14,505 14,054 13,247 14,171
Total debt 3,185 3,707 3,124 3,066 3,088
Total liabilities 8,320 8,825 8,697 8,246 8,740
Total Company shareholders' equity 6,815 5,845 5,518 5,192 5,647
Non-GAAP Cash Flow Calculations—Manufacturing Group
Net cash from operating activities of continuing operations—GAAP2 1,469 833 960 1,127 930
Less: Capital expenditures (375) (317) (339) (369) (423)
Dividends received from TFC — — (50) (50) —
Add: Total pension contributions 52 47 51 52 358
Proceeds from an insurance recovery and the sale of property, plant and equipment 3 33 9 14 7
Taxes paid on gain on business disposition — — 11 10 —
Manufacturing cash flow before pension contributions—Non-GAAP2 1,149 596 642 784 872
Cash Flow Items—Manufacturing Group
Depreciation and amortization 380 386 410 429 435
Net proceeds from business disposition 38 — — 807 —
Net cash used in acquisitions — (15) (2) (23) (331)
Net change in debt (524) 589 49 (5) 288
Dividends paid (18) (18) (18) (20) (21)
Purchases of Textron common stock (921) (183) (503) (1,783) (582)
Total number of shares purchased (in thousands) 13,533 4,145 10,011 29,094 11,918
Key Ratios
Segment profit margin 9.2% 6.4% 9.3% 9.1% 8.2%
Selling and administrative expense as % of sales 9.9% 9.0% 8.5% 9.1% 9.4%
Inventory turns (based on FIFO) 2.8x 2.5x 2.9x 2.8x 2.4x
Debt-to-capital (net of cash)—Manufacturing Group 16% 21% 26% 29% 26%
Stock-Related Information
Stock price at year-end 77.20 48.33 44.74 45.65 56.59
Dividend payout ratio 2% 6% 2% 2% 7%
Dividends declared per share 0.08 0.08 0.08 0.08 0.08
Other Statistics
Number of employees at year-end 33,000 33,000 35,000 35,000 37,000
Average revenues per employee (in thousands) 375 353 389 399 384
1 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. In the fourth quarter of 2020, we reached a definitive agreement to sell TRU Canada, which resulted in the recognition of a 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. The impact from the Tax Act is not considered to be indicative of ongoing operations, since they represent significant one-time adjustments.
2 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.