SELECTED FINANCIAL STATISTICS 2019-2015

Financial data 2019-2018

return on invested capital (ROIC)

(Dollars in millions, except where noted and per share amounts) 2019 2018 2017 2016 2015
Income Statement Data
Revenues 13,630 13,972 14,198 13,788 13,423
Segment profit 1,270 1,267 1,169 1,309 1,255
Corporate expenses and other, net (110) (119) (132) (172) (154)
Interest expense, net for Manufacturing group (146) (135) (145) (138) (130)
Special charges (72) (73) (130) (123) —
Gain on business disposition — 444 — — —
Income tax expense (127) (162) (456) (33) (273)
Effective tax rate 13.5% 11.7% 59.8% 3.8% 28.1%
Income from continuing operations 815 1,222 306 843 698
Diluted EPS from continuing operations 3.50 4.83 1.14 3.09 2.50
Balance Sheet Data—Manufacturing Group
Cash and equivalents 1,181 987 1,079 1,137 946
Accounts receivable, net 921 1,024 1,363 1,064 1,047
Inventories 4,069 3,818 4,150 4,464 4,144
Property, plant and equipment, net 2,527 2,615 2,721 2,581 2,492
Goodwill 2,150 2,218 2,364 2,113 2,023
Total assets 14,054 13,247 14,171 14,078 13,392
Total debt 3,124 3,066 3,088 2,777 2,697
Total liabilities 8,697 8,246 8,740 8,661 8,603
Total Company shareholders' equity 5,518 5,192 5,647 5,574 4,964
Non-GAAP Cash Flow Calculations—Manufacturing Group
Net cash from operating activities of continuing operations—GAAP1 960 1,127 930 901 1,030
Less: Capital expenditures (339) (369) (423) (446) (420)
Dividends received from TFC (50) (50) — (29) (63)
Plus: Total pension contributions 51 52 358 50 68
Proceeds from the sale of property, plant and equipment 9 14 7 10 8
Taxes paid on gain on business disposition 11 10 — — —
Manufacturing cash flow before pension contributions—Non-GAAP1,2 642 784 872 486 623
Cash Flow Items—Manufacturing Group
Depreciation and amortization 410 429 435 437 449
Net cash used in acquisitions (2) (23) (331) (186) (81)
Net proceeds from business disposition — 807 — — —
Net change in debt (49) (5) 288 91 (100)
Dividends paid (18) (20) (21) (22) (22)
Purchases of Textron common stock (503) (1,783) (582) (241) (219)
Total number of shares purchased (in thousands) 10,011 29,094 11,918 6,898 5,197
Key Ratios
Segment profit margin 9.3% 9.1% 8.2% 9.5% 9.3%
Selling and administrative expense as % of sales 8.5% 9.1% 9.4% 9.6% 9.7%
Inventory turns (based on FIFO) 2.9x 2.8x 2.4x 2.3x 2.4x
Debt-to-capital (net of cash)—Manufacturing group 26% 29% 26% 23% 26%
Stock-Related Information
Stock price at year-end 44.74 45.65 56.59 48.56 42.01
Dividend payout ratio 2% 2% 7% 3% 3%
Dividends declared per share 0.08 0.08 0.08 0.08 0.08
Other Statistics
Number of employees at year-end 35,000 35,000 37,000 36,000 35,000
Average revenues per employee (in thousands) 389 399 384 383 384
1 For the years 2017, 2016, and 2015, $17 million, $87 million and $8 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.
2 Manufacturing cash flow before pension contributions adjusts net cash from operating activities of continuing operations (GAAP) for the following:
  • 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;
  • 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;
  • 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.