| Debt
|
|
|
|
|
|
|
Severance | Curtailment | Asset | Contract | |||||||||||||||||
(In millions) | Costs | Charges, Net | Impairments | Terminations | Total | |||||||||||||||
Cessna
|
$ | 114 | $ | 26 | $ | 54 | $ | 9 | $ | 203 | ||||||||||
Industrial
|
22 | (4 | ) | 9 | 4 | 31 | ||||||||||||||
Bell
|
10 | — | — | — | 10 | |||||||||||||||
Textron Systems
|
11 | 2 | — | 1 | 14 | |||||||||||||||
Finance
|
32 | 1 | 11 | 5 | 49 | |||||||||||||||
Corporate
|
38 | — | — | 1 | 39 | |||||||||||||||
|
$ | 227 | $ | 25 | $ | 74 | $ | 20 | $ | 346 | ||||||||||
Restructuring | ||||||||||||||||||||
Severance | Asset | Contract | ||||||||||||||||||
(In millions) | Costs | Impairments | Terminations | Other | Total | |||||||||||||||
Three Months Ended October 2, 2010
|
||||||||||||||||||||
Cessna
|
$ | 15 | $ | — | $ | — | $ | — | $ | 15 | ||||||||||
Textron Systems
|
4 | — | — | — | 4 | |||||||||||||||
Industrial
|
— | — | 1 | — | 1 | |||||||||||||||
Finance
|
1 | — | 2 | 91 | 94 | |||||||||||||||
|
$ | 20 | $ | — | $ | 3 | $ | 91 | $ | 114 | ||||||||||
|
||||||||||||||||||||
Three Months Ended October 3, 2009
|
||||||||||||||||||||
Cessna
|
$ | 10 | $ | 2 | $ | 5 | $ | — | $ | 17 | ||||||||||
Bell
|
8 | — | — | — | 8 | |||||||||||||||
Textron Systems
|
1 | — | — | — | 1 | |||||||||||||||
Industrial
|
1 | — | — | — | 1 | |||||||||||||||
Finance
|
1 | — | — | — | 1 | |||||||||||||||
Corporate
|
14 | — | — | — | 14 | |||||||||||||||
|
$ | 35 | $ | 2 | $ | 5 | $ | — | $ | 42 | ||||||||||
Restructuring | ||||||||||||||||||||||||
Severance | Curtailment | Asset | Contract | |||||||||||||||||||||
(In millions) | Costs | Charges, Net | Impairments | Terminations | Other | Total | ||||||||||||||||||
Nine Months Ended October 2, 2010
|
||||||||||||||||||||||||
Cessna
|
$ | 29 | $ | — | $ | — | $ | 2 | $ | — | $ | 31 | ||||||||||||
Bell
|
1 | — | — | — | — | 1 | ||||||||||||||||||
Textron Systems
|
5 | — | — | — | — | 5 | ||||||||||||||||||
Industrial
|
— | — | — | 1 | — | 1 | ||||||||||||||||||
Finance
|
6 | — | — | 3 | 91 | 100 | ||||||||||||||||||
Corporate
|
(2 | ) | — | — | — | — | (2 | ) | ||||||||||||||||
|
$ | 39 | $ | — | $ | — | $ | 6 | $ | 91 | $ | 136 | ||||||||||||
|
||||||||||||||||||||||||
Nine Months Ended
October 3, 2009
|
||||||||||||||||||||||||
Cessna
|
$ | 74 | $ | 26 | $ | 54 | $ | 6 | $ | — | $ | 160 | ||||||||||||
Bell
|
8 | — | — | — | — | 8 | ||||||||||||||||||
Textron Systems
|
2 | 2 | — | — | — | 4 | ||||||||||||||||||
Industrial
|
6 | (4 | ) | — | 1 | — | 3 | |||||||||||||||||
Finance
|
7 | 1 | — | 1 | — | 9 | ||||||||||||||||||
Corporate
|
19 | — | — | — | — | 19 | ||||||||||||||||||
|
$ | 116 | $ | 25 | $ | 54 | $ | 8 | $ | — | $ | 203 | ||||||||||||
Severance | Contract | |||||||||||
(In millions) | Costs | Terminations | Total | |||||||||
Balance at January 2, 2010
|
$ | 48 | $ | 3 | $ | 51 | ||||||
Provisions
|
41 | 6 | 47 | |||||||||
Reversals
|
(2 | ) | — | (2 | ) | |||||||
Cash paid
|
(42 | ) | (1 | ) | (43 | ) | ||||||
Balance at October 2, 2010
|
$ | 45 | $ | 8 | $ | 53 | ||||||
|
Postretirement Benefits | ||||||||||||||||
Pension Benefits | Other Than Pensions | |||||||||||||||
October 2, | October 3, | October 2, | October 3, | |||||||||||||
(In millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Three Months Ended
|
||||||||||||||||
Service cost
|
$ | 31 | $ | 27 | $ | 2 | $ | 2 | ||||||||
Interest cost
|
79 | 78 | 9 | 9 | ||||||||||||
Expected return on plan assets
|
(92 | ) | (96 | ) | — | — | ||||||||||
Amortization of prior service cost (credit)
|
4 | 4 | (2 | ) | (1 | ) | ||||||||||
Amortization of net loss
|
9 | 1 | 3 | 2 | ||||||||||||
Net periodic benefit cost
|
$ | 31 | $ | 14 | $ | 12 | $ | 12 | ||||||||
|
||||||||||||||||
Nine Months Ended
|
||||||||||||||||
Service cost
|
$ | 93 | $ | 90 | $ | 6 | $ | 6 | ||||||||
Interest cost
|
237 | 233 | 25 | 28 | ||||||||||||
Expected return on plan assets
|
(276 | ) | (291 | ) | — | — | ||||||||||
Amortization of prior service cost (credit)
|
12 | 13 | (4 | ) | (4 | ) | ||||||||||
Amortization of net loss
|
27 | 9 | 9 | 6 | ||||||||||||
Net periodic benefit cost
|
$ | 93 | $ | 54 | $ | 36 | $ | 36 | ||||||||
|
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, | October 3, | October 2, | October 3, | |||||||||||||
(In millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Income tax expense (benefit)
|
$ | (21 | ) | $ | (11 | ) | $ | 12 | $ | (71 | ) | |||||
Effective tax rate
|
(30.4 | )% | (220.0 | )% | 29.3 | % | (84.5 | )% |
|
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, | October 3, | October 2, | October 3, | |||||||||||||
(In millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Net income (loss)
|
$ | (48 | ) | $ | 4 | $ | 26 | $ | 32 | |||||||
Other comprehensive income (loss):
|
||||||||||||||||
Recognition of foreign currency translation
loss upon substantial liquidation of Canadian
entity, net of income tax benefit of $17
|
74 | — | 74 | — | ||||||||||||
Recognition of prior service cost and unrealized
losses on pension and postretirement benefits
|
11 | 4 | 31 | 16 | ||||||||||||
Deferred gains (losses) on hedge contracts
|
3 | 24 | 10 | 54 | ||||||||||||
Unrealized gain on pension, net of income taxes
of $48
|
— | — | — | 82 | ||||||||||||
Pension curtailment, net of income taxes of $10
|
— | — | — | 15 | ||||||||||||
Foreign currency translation and other
|
21 | (2 | ) | (20 | ) | 23 | ||||||||||
Comprehensive income
|
$ | 61 | $ | 30 | $ | 121 | $ | 222 | ||||||||
|
October 2, | January 2, | |||||||
(In millions) | 2010 | 2010 | ||||||
Accounts receivable - Commercial
|
$ | 538 | $ | 470 | ||||
Accounts receivable - U.S. Government contracts
|
381 | 447 | ||||||
Gross accounts receivable
|
919 | 917 | ||||||
Allowance for doubtful accounts
|
(20 | ) | (23 | ) | ||||
Accounts receivable, net
|
$ | 899 | $ | 894 | ||||
Finance receivables held for investment
|
$ | 4,733 | $ | 6,206 | ||||
Allowance for loan losses
|
(355 | ) | (341 | ) | ||||
Finance receivables held for investment, net
|
$ | 4,378 | $ | 5,865 | ||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, | October 3, | October 2, | October 3, | |||||||||||||
(In millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Reserve at the beginning of period
|
$ | 352 | $ | 284 | $ | 341 | $ | 191 | ||||||||
Provision for losses
|
29 | 43 | 128 | 206 | ||||||||||||
Net charge-offs
|
(26 | ) | (23 | ) | (114 | ) | (93 | ) | ||||||||
Transfers
|
— | (2 | ) | — | (2 | ) | ||||||||||
Reserve at the end of period
|
$ | 355 | $ | 302 | $ | 355 | $ | 302 | ||||||||
October 2, | January 2, | |||||||
(In millions) | 2010 | 2010 | ||||||
Impaired nonaccrual finance receivables
|
$ | 824 | $ | 984 | ||||
Impaired accrual finance receivables
|
168 | 217 | ||||||
Total impaired finance receivables
|
992 | 1,201 | ||||||
Less: Impaired finance receivables without identified reserve requirements
(including all impaired accrual finance receivables)
|
265 | 362 | ||||||
Impaired nonaccrual finance receivables with identified reserve requirements
|
$ | 727 | $ | 839 | ||||
Allowance for losses on impaired nonaccrual finance receivables
|
$ | 193 | $ | 153 | ||||
|
October 2, | January 2, | |||||||
(In millions) | 2010 | 2010 | ||||||
Finished goods
|
$ | 913 | $ | 735 | ||||
Work in process
|
2,299 | 1,861 | ||||||
Raw materials
|
517 | 613 | ||||||
|
3,729 | 3,209 | ||||||
Progress/milestone payments
|
(1,082 | ) | (936 | ) | ||||
|
$ | 2,647 | $ | 2,273 | ||||
|
|
Nine Months Ended | ||||||||
October 2, | October 3, | |||||||
(In millions) | 2010 | 2009 | ||||||
Accrual at the beginning of period
|
$ | 263 | $ | 278 | ||||
Provision
|
129 | 129 | ||||||
Settlements
|
(162 | ) | (168 | ) | ||||
Adjustments to prior accrual estimates
|
12 | 18 | ||||||
Accrual at the end of period
|
$ | 242 | $ | 257 | ||||
|
|
Notional Amount | Asset (Liability) | |||||||||||||||||
October 2, | January 2, | October 2, | January 2, | |||||||||||||||
(In millions) | Borrowing Group | 2010 | 2010 | 2010 | 2010 | |||||||||||||
Assets
|
||||||||||||||||||
Interest rate exchange contracts*
|
Finance | $ | 649 | $ | 1,333 | $ | 43 | $ | 43 | |||||||||
Cross-currency interest rate exchange contracts
|
Finance | — | 161 | — | 18 | |||||||||||||
Foreign currency exchange contracts
|
Manufacturing | 569 | 696 | 34 | 54 | |||||||||||||
Total
|
$ | 1,218 | $ | 2,190 | $ | 77 | $ | 115 | ||||||||||
Liabilities
|
||||||||||||||||||
Interest rate exchange contracts*
|
Finance | $ | 344 | $ | 32 | $ | (7 | ) | $ | (3 | ) | |||||||
Foreign currency exchange contracts
|
Manufacturing | 70 | 80 | (1 | ) | (5 | ) | |||||||||||
Total
|
$ | 414 | $ | 112 | $ | (8 | ) | $ | (8 | ) | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
October 2, | October 3, | October 2, | October 3, | |||||||||||||||
(In millions) | Gain (Loss) Location | 2010 | 2009 | 2010 | 2009 | |||||||||||||
Interest rate exchange contracts
|
Interest expense | $ | 8 | $ | 2 | $ | 27 | $ | (13 | ) | ||||||||
Interest rate exchange contracts
|
Finance charges | — | 2 | (11 | ) | 8 | ||||||||||||
Amount of Gain(Loss) | ||||||||||||||||||
Recognized in OCI | Effective Portion of Derivative Reclassified from | |||||||||||||||||
(Effective Portion) | Accumulated Other Comprehensive Loss into Income | |||||||||||||||||
October 2, | October 3, | October 2, | October 3, | |||||||||||||||
(In millions) | 2010 | 2009 | Gain(Loss) Location | 2010 | 2009 | |||||||||||||
Three Months Ended
|
||||||||||||||||||
Foreign currency exchange contracts
|
$ | 4 | $ | 23 | Cost of sales | $ | 5 | $ | (15 | ) | ||||||||
Forward contracts for Textron stock
|
— | 4 | Selling and administrative expense | — | (2 | ) | ||||||||||||
|
||||||||||||||||||
Nine Months Ended
|
||||||||||||||||||
Foreign currency exchange contracts
|
$ | 9 | $ | 54 | Cost of sales | $ | 12 | $ | (8 | ) | ||||||||
Forward contracts for Textron stock
|
— | — | Selling and administrative expense | (1 | ) | (6 | ) | |||||||||||
Notional Amount | Asset (Liability) | |||||||||||||||||
October 2, | January 2, | October 2, | January 2, | |||||||||||||||
(In millions) | Borrowing Group | 2010 | 2010 | 2010 | 2010 | |||||||||||||
Foreign currency exchange contracts
|
Finance | $ | 228 | $ | 531 | $ | 1 | $ | (13 | ) | ||||||||
Foreign currency exchange contracts
|
Manufacturing | 72 | 224 | 1 | 3 | |||||||||||||
Total
|
$ | 300 | $ | 755 | $ | 2 | $ | (10 | ) | |||||||||
Gain (Loss) | ||||||||||||||||
Balance at | Nine Months Ended | |||||||||||||||
October 2, | October 3, | October 2, | October 3, | |||||||||||||
(In millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Finance Group
|
||||||||||||||||
Finance receivables held for sale
|
$ | 252 | $ | 998 | $ | (17 | ) | $ | (16 | ) | ||||||
Impaired finance receivables
|
525 | 532 | (130 | ) | (143 | ) | ||||||||||
Other assets
|
126 | 58 | (38 | ) | (47 | ) | ||||||||||
Manufacturing Group
|
||||||||||||||||
Other assets
|
— | — | — | (43 | ) | |||||||||||
October 2, 2010 | January 2, 2010 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
(In millions) | Value | Fair Value | Value | Fair Value | ||||||||||||
Manufacturing Group
|
||||||||||||||||
Debt, excluding leases
|
$ | (2,189 | ) | $ | (2,674 | ) | $ | (3,474 | ) | $ | (3,762 | ) | ||||
Finance Group
|
||||||||||||||||
Finance receivables held for investment, excluding leases
|
3,855 | 3,545 | 5,159 | 4,703 | ||||||||||||
Retained interest in securitizations
|
— | — | 6 | 6 | ||||||||||||
Investment in other marketable securities
|
55 | 54 | 68 | 55 | ||||||||||||
Debt
|
(4,062 | ) | (3,918 | ) | (5,667 | ) | (5,439 | ) | ||||||||
|
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, | October 3, | October 2, | October 3, | |||||||||||||
(In millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
REVENUES
|
||||||||||||||||
Manufacturing Group
|
||||||||||||||||
Cessna
|
$ | 535 | $ | 825 | $ | 1,603 | $ | 2,465 | ||||||||
Bell
|
825 | 628 | 2,266 | 2,040 | ||||||||||||
Textron Systems
|
460 | 502 | 1,452 | 1,397 | ||||||||||||
Industrial
|
600 | 523 | 1,886 | 1,506 | ||||||||||||
|
2,420 | 2,478 | 7,207 | 7,408 | ||||||||||||
Finance Group
|
59 | 71 | 191 | 279 | ||||||||||||
Total revenues
|
$ | 2,479 | $ | 2,549 | $ | 7,398 | $ | 7,687 | ||||||||
SEGMENT OPERATING PROFIT
|
||||||||||||||||
Manufacturing Group
|
||||||||||||||||
Cessna (a)
|
$ | (31 | ) | $ | 32 | $ | (52 | ) | $ | 170 | ||||||
Bell
|
107 | 79 | 289 | 220 | ||||||||||||
Textron Systems
|
50 | 68 | 175 | 175 | ||||||||||||
Industrial
|
37 | 6 | 137 | 9 | ||||||||||||
|
163 | 185 | 549 | 574 | ||||||||||||
Finance Group
|
(51 | ) | (64 | ) | (180 | ) | (229 | ) | ||||||||
Segment profit
|
112 | 121 | 369 | 345 | ||||||||||||
Special charges
|
(114 | ) | (42 | ) | (136 | ) | (203 | ) | ||||||||
Corporate expenses and other, net
|
(35 | ) | (44 | ) | (89 | ) | (124 | ) | ||||||||
Interest expense, net for Manufacturing group
|
(32 | ) | (40 | ) | (103 | ) | (102 | ) | ||||||||
Income (loss) from continuing operations before income taxes
|
$ | (69 | ) | $ | (5 | ) | $ | 41 | $ | (84 | ) | |||||
(a) | During the first quarter of 2009, we sold the assets of CESCOM, Cessna’s aircraft maintenance tracking service line, resulting in a pre-tax gain of $50 million. |