financial data 2017-2016

SELECTED FINANCIAL STATISTICS 2017-2013

return on invested capital (ROIC)

SELECTED FINANCIAL STATISTICS 2017-2013

(Dollars in millions, except where noted and per share amounts) 2017 2016 2015 2014 2013
Income Statement Data
Revenues $14,198 $13,788 $13,423 $13,878 $12,104
Segment profit 1,169 1,309 1,255 1,214 963
Corporate expenses and other, net (132) (172) (154) (161) (166)
Interest expense, net for Manufacturing group (145) (138) (130) (148) (123)
Special charges (130) (123) — (52) —
Income tax expense (456) (33) (273) (248) (176)
Effective tax rate 59.8% 3.8% 28.1% 29.1% 26.1%
Income from continuing operations $306 $843 $698 $605 $498
Diluted EPS from continuing operations $1.14 $3.09 $2.50 $2.15 $1.75
Balance Sheet Data—Manufacturing Group
Cash and equivalents $1,079 $1,137 $946 $731 $1,163
Accounts receivable, net 1,363 1,064 1,047 1,035 979
Inventories 4,150 4,464 4,144 3,928 2,963
Property, plant and equipment, net 2,721 2,581 2,492 2,497 2,215
Goodwill 2,364 2,113 2,023 2,027 1,735
Total assets 14,171 14,078 13,392 13,076 11,219
Total debt 3,088 2,777 2,697 2,811 1,931
Total liabilities 8,740 8,661 8,603 9,028 7,044
Total Company shareholders' equity 5,647 5,574 4,964 4,272 4,384
Non-GAAP Cash Flow Calculations—Manufacturing Group
Net cash from operating activities of continuing operations—GAAP $947 $988 $1,038 $1,097 $658
Less: Capital expenditures (423) (446) (420) (429) (444)
Dividends received from TFC — (29) (63) — (175)
Plus: Total pension contributions 358 50 68 76 194
Proceeds from sale of property, plant and equipment 7 10 8 9 22
Capital contributions paid to TFC — — — — 1
Manufacturing cash flow before pension contributions—Non-GAAP1 $889 $573 $631 $753 $256
Cash Flow Items—Manufacturing Group
Depreciation and amortization $435 $437 $449 $446 $371
Net cash used in acquisitions (331) (186) (81) (1,628) (196)
Net change in debt 288 91 (100) 880 (321)
Dividends paid (21) (22) (22) (28) (22)
Purchases of Textron common stock (582) (241) (219) (340) —
Total number of shares purchased (in thousands) 11,918 6,898 5,197 8,921 —
Key Ratios
Segment profit margin 8.2% 9.5% 9.3% 8.7% 8.0%
Selling and administrative expense as % of sales 9.4% 9.5% 9.7% 9.8% 9.3%
Inventory turns (based on FIFO) 2.4x 2.3x 2.4x 2.7x 2.6x
Ratio of income to fixed charges—Manufacturing group 4.98x 5.92x 7.05x 5.43x 6.23x
Debt-to-capital (net of cash)—Manufacturing group 26% 23% 26% 33% 15%
Stock-Related Information
Stock price at year-end $56.59 $48.56 $42.01 $42.17 $36.61
Dividend payout ratio 7% 3% 3% 4% 5%
Dividends declared per share $0.08 $0.08 $0.08 $0.08 $0.08
Other Statistics
Number of employees at year-end 37,000 36,000 35,000 34,000 32,000
Average revenues per employee (in thousands) 384 383 384 408 378
1We 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 Statements of Cash Flows. Our definition of manufacturing cash flow before pension contributions adjusts net cash from operating activities of continuing operations (GAAP) for the following:
  • 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;
  • Deducts capital expenditures and includes proceeds from the sale of property, plant and equipment to arrive at the net capital investment required to support ongoing 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.