|
|
|
|
|
|
(In millions) | 2010 | 2009 | 2008 | |||||||||
Company-funded
|
$ | 403 | $ | 401 | $ | 465 | ||||||
Customer-funded
|
299 | 443 | 501 | |||||||||
Total research and development
|
$ | 702 | $ | 844 | $ | 966 | ||||||
|
(In millions) | 2010 | 2009 | 2008 | |||||||||
Revenues
|
$ | — | $ | 48 | $ | 796 | ||||||
Income (loss) from discontinued operations before income taxes
|
(6 | ) | (2 | ) | 63 | |||||||
Income tax expense (benefit)
|
— | (38 | ) | 12 | ||||||||
Operating income (loss) from discontinued operations, net of
income taxes
|
(6 | ) | 36 | 51 | ||||||||
Net gain on disposals, net of income taxes
|
— | 6 | 111 | |||||||||
Income (loss) from discontinued operations, net of income taxes
|
$ | (6 | ) | $ | 42 | $ | 162 | |||||
|
Textron | ||||||||||||||||||||||||
(In millions) | Cessna | Bell | Systems | Industrial | Finance | Total | ||||||||||||||||||
Balance at December 29, 2007
|
$ | 322 | $ | 18 | $ | 1,151 | $ | 392 | $ | 169 | $ | 2,052 | ||||||||||||
Acquisitions and purchase price adjustments
|
— | (5 | ) | (44 | ) | — | — | (49 | ) | |||||||||||||||
Adjustment related to business sold
|
— | — | (134 | ) | — | — | (134 | ) | ||||||||||||||||
Transfers
|
— | 17 | (17 | ) | — | — | — | |||||||||||||||||
Impairment
|
— | — | — | — | (169 | ) | (169 | ) | ||||||||||||||||
Foreign currency translation
|
— | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Balance at January 3, 2009
|
322 | 30 | 956 | 390 | — | 1,698 | ||||||||||||||||||
Impairment
|
— | — | — | (80 | ) | — | (80 | ) | ||||||||||||||||
Foreign currency translation
|
— | — | — | 2 | — | 2 | ||||||||||||||||||
Other
|
— | — | 2 | — | — | 2 | ||||||||||||||||||
Balance at January 2, 2010
|
322 | 30 | 958 | 312 | — | 1,622 | ||||||||||||||||||
Acquisitions
|
— | 1 | 16 | 5 | — | 22 | ||||||||||||||||||
Foreign currency translation
|
— | — | — | (12 | ) | — | (12 | ) | ||||||||||||||||
Balance at January 1, 2011
|
$ | 322 | $ | 31 | $ | 974 | $ | 305 | $ | — | $ | 1,632 | ||||||||||||
January 1, 2011 | January 2, 2010 | |||||||||||||||||||||||||||
Weighted- | ||||||||||||||||||||||||||||
Average | Gross | Gross | ||||||||||||||||||||||||||
Amortization | Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||||||||||||
(Dollars in millions) | Period (in years) | Amount | Amortization | Net | Amount | Amortization | Net | |||||||||||||||||||||
Customer
agreements and
contractual
relationships
|
13 | $ | 412 | $ | (115 | ) | $ | 297 | $ | 407 | $ | (77 | ) | $ | 330 | |||||||||||||
Patents and technology
|
10 | 101 | (53 | ) | 48 | 101 | (43 | ) | 58 | |||||||||||||||||||
Trademarks
|
18 | 35 | (16 | ) | 19 | 34 | (14 | ) | 20 | |||||||||||||||||||
Other
|
8 | 22 | (15 | ) | 7 | 19 | (15 | ) | 4 | |||||||||||||||||||
|
$ | 570 | $ | (199 | ) | $ | 371 | $ | 561 | $ | (149 | ) | $ | 412 | ||||||||||||||
|
January 1, | January 2, | |||||||
(In millions) | 2011 | 2010 | ||||||
Commercial
|
$ | 496 | $ | 470 | ||||
U.S. Government contracts
|
416 | 447 | ||||||
|
912 | 917 | ||||||
Allowance for doubtful accounts
|
(20 | ) | (23 | ) | ||||
|
$ | 892 | $ | 894 | ||||
(Dollars in millions) | January 1, 2011 | January 2, 2010 | |||||||||||||||
Aviation
|
$ 2,120 | 46 | % | $ 2,535 | 36 | % | |||||||||||
Golf equipment
|
212 | 5 | 417 | 6 | |||||||||||||
Golf mortgage
|
876 | 19 | 1,085 | 16 | |||||||||||||
Timeshare
|
894 | 19 | 1,302 | 18 | |||||||||||||
Structured capital
|
317 | 7 | 349 | 5 | |||||||||||||
Other liquidating
|
207 | 4 | 1,337 | 19 | |||||||||||||
Total finance receivables
|
4,626 | 100 | % | 7,025 | 100 | % | |||||||||||
Less: Allowance for losses
|
342 | 341 | |||||||||||||||
Less: Finance receivables held for sale
|
413 | 819 | |||||||||||||||
Total finance receivables held for investment, net
|
$ 3,871 | $ 5,865 | |||||||||||||||
January 1, | January 2, | |||||||
(In millions) | 2011 | 2010 | ||||||
Installment contracts
|
$ | 2,130 | $ | 2,509 | ||||
Mortgage loans
|
859 | 1,073 | ||||||
Revolving loans
|
501 | 1,137 | ||||||
Leveraged leases
|
279 | 313 | ||||||
Finance leases
|
262 | 403 | ||||||
Distribution finance receivables
|
182 | 771 | ||||||
|
$ | 4,213 | $ | 6,206 | ||||
January 1, 2011 | January 2, 2010 | |||||||||||||||||||||||||||||||
(In millions) | Performing | Watchlist | Nonaccrual | Total | Performing | Watchlist | Nonaccrual | Total | ||||||||||||||||||||||||
Aviation
|
$ | 1,713 | $ | 238 | $ | 169 | $ | 2,120 | $ | 1,974 | $ | 275 | $ | 286 | $ | 2,535 | ||||||||||||||||
Golf equipment
|
138 | 51 | 23 | 212 | 243 | 74 | 16 | 333 | ||||||||||||||||||||||||
Golf mortgage
|
163 | 303 | 219 | 685 | 386 | 249 | 254 | 889 | ||||||||||||||||||||||||
Timeshare
|
222 | 77 | 382 | 681 | 450 | 474 | 378 | 1,302 | ||||||||||||||||||||||||
Structured capital
|
290 | 27 | — | 317 | 313 | 31 | 5 | 349 | ||||||||||||||||||||||||
Other liquidating
|
130 | 11 | 57 | 198 | 533 | 164 | 101 | 798 | ||||||||||||||||||||||||
Total
|
$ | 2,656 | $ | 707 | $ | 850 | $ | 4,213 | $ | 3,899 | $ | 1,267 | $ | 1,040 | $ | 6,206 | ||||||||||||||||
% of Total
|
63.0 | % | 16.8 | % | 20.2 | % | 62.8 | % | 20.4 | % | 16.8 | % | ||||||||||||||||||||
Less Than | Greater Than | |||||||||||||||||||
31 Days | 31-60 Days | 61-90 Days | 90 Days | |||||||||||||||||
(In millions) | Past Due | Past Due | Past Due | Past Due | Total | |||||||||||||||
January 1, 2011 | ||||||||||||||||||||
Aviation
|
$ | 1,964 | $ | 67 | $ | 41 | $ | 48 | $ | 2,120 | ||||||||||
Golf equipment
|
171 | 13 | 9 | 19 | 212 | |||||||||||||||
Golf mortgage
|
543 | 12 | 7 | 123 | 685 | |||||||||||||||
Timeshare
|
533 | 14 | 6 | 128 | 681 | |||||||||||||||
Structured capital
|
317 | — | — | — | 317 | |||||||||||||||
Other liquidating
|
166 | 2 | 1 | 29 | 198 | |||||||||||||||
Total
|
$ | 3,694 | $ | 108 | $ | 64 | $ | 347 | $ | 4,213 | ||||||||||
January 2, 2010 | ||||||||||||||||||||
Aviation
|
$ | 2,259 | $ | 102 | $ | 96 | $ | 78 | $ | 2,535 | ||||||||||
Golf equipment
|
300 | 11 | 11 | 11 | 333 | |||||||||||||||
Golf mortgage
|
615 | 60 | 106 | 108 | 889 | |||||||||||||||
Timeshare
|
1,213 | 6 | — | 83 | 1,302 | |||||||||||||||
Structured capital
|
344 | — | — | 5 | 349 | |||||||||||||||
Other liquidating
|
703 | 24 | 4 | 67 | 798 | |||||||||||||||
Total
|
$ | 5,434 | $ | 203 | $ | 217 | $ | 352 | $ | 6,206 | ||||||||||
Golf | Golf | Other | ||||||||||||||||||||||
(In millions) | Aviation | Equipment | Mortgage | Timeshare | Liquidating | Total | ||||||||||||||||||
For the year ended January 1, 2011 | ||||||||||||||||||||||||
Impaired loans with a
related allowance for
losses recorded
|
||||||||||||||||||||||||
Recorded investment
|
$ | 147 | $ | 4 | $ | 175 | $ | 355 | $ | 16 | $ | 697 | ||||||||||||
Unpaid principal balance
|
144 | 5 | 178 | 385 | 15 | 727 | ||||||||||||||||||
Related allowance
|
45 | 2 | 39 | 102 | 3 | 191 | ||||||||||||||||||
Average recorded investment
|
187 | 5 | 182 | 356 | 21 | 751 | ||||||||||||||||||
Impaired loans with no
related allowance for
losses recorded
|
||||||||||||||||||||||||
Recorded investment
|
17 | — | 138 | 69 | 30 | 254 | ||||||||||||||||||
Unpaid principal balance
|
21 | — | 146 | 74 | 89 | 330 | ||||||||||||||||||
Average recorded investment
|
14 | 1 | 118 | 70 | 58 | 261 | ||||||||||||||||||
Total impaired loans
|
||||||||||||||||||||||||
Recorded investment
|
164 | 4 | 313 | 424 | 46 | 951 | ||||||||||||||||||
Unpaid principal balance
|
165 | 5 | 324 | 459 | 104 | 1,057 | ||||||||||||||||||
Related allowance
|
45 | 2 | 39 | 102 | 3 | 191 | ||||||||||||||||||
Average recorded investment
|
201 | 6 | 300 | 426 | 79 | 1,012 | ||||||||||||||||||
For the year ended January 2, 2010 | ||||||||||||||||||||||||
Impaired loans with a
related allowance for
losses recorded
|
||||||||||||||||||||||||
Recorded investment
|
$ | 258 | $ | 3 | $ | 179 | $ | 354 | $ | 53 | $ | 847 | ||||||||||||
Unpaid principal balance
|
258 | 3 | 179 | 366 | 53 | 859 | ||||||||||||||||||
Related allowance
|
46 | 1 | 32 | 59 | 15 | 153 | ||||||||||||||||||
Average recorded investment
|
98 | 1 | 96 | 234 | 69 | 498 | ||||||||||||||||||
Impaired loans with no
related allowance for
losses recorded
|
||||||||||||||||||||||||
Recorded investment
|
39 | — | 84 | 142 | 89 | 354 | ||||||||||||||||||
Unpaid principal balance
|
39 | — | 86 | 137 | 90 | 352 | ||||||||||||||||||
Average recorded investment
|
37 | — | 94 | 82 | 28 | 241 | ||||||||||||||||||
Total impaired loans
|
||||||||||||||||||||||||
Recorded investment
|
297 | 3 | 263 | 496 | 142 | 1,201 | ||||||||||||||||||
Unpaid principal balance
|
297 | 3 | 265 | 503 | 143 | 1,211 | ||||||||||||||||||
Related allowance
|
46 | 1 | 32 | 59 | 15 | 153 | ||||||||||||||||||
Average recorded investment
|
135 | 1 | 190 | 316 | 97 | 739 | ||||||||||||||||||
Golf | Golf | Other | ||||||||||||||||||||||
(In millions) | Aviation | Equipment | Mortgage | Timeshare | Liquidating | Total | ||||||||||||||||||
For the year ended January 1, 2011 | ||||||||||||||||||||||||
Allowance for losses
|
||||||||||||||||||||||||
Beginning balance
|
$ | 114 | $ | 9 | $ | 65 | $ | 79 | $ | 74 | $ | 341 | ||||||||||||
Provision for losses
|
37 | 14 | 66 | 38 | (12 | ) | 143 | |||||||||||||||||
Net charge-offs and transfers
|
(44 | ) | (7 | ) | (52 | ) | (11 | ) | (28 | ) | (142 | ) | ||||||||||||
Ending balance
|
$ | 107 | $ | 16 | $ | 79 | $ | 106 | $ | 34 | $ | 342 | ||||||||||||
Ending balance based on individual evaluations
|
45 | 2 | 39 | 102 | 3 | 191 | ||||||||||||||||||
Ending balance based on collective evaluation
|
62 | 14 | 40 | 4 | 31 | 151 | ||||||||||||||||||
Finance receivables
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 164 | $ | 4 | $ | 313 | $ | 424 | $ | 41 | $ | 946 | ||||||||||||
Collectively evaluated for impairment
|
1,956 | 208 | 372 | 257 | 195 | 2,988 | ||||||||||||||||||
Balance at end of year
|
$ | 2,120 | $ | 212 | $ | 685 | $ | 681 | $ | 236 | $ | 3,934 | ||||||||||||
For the year ended January 2, 2010 | ||||||||||||||||||||||||
Allowance for losses
|
||||||||||||||||||||||||
Beginning balance
|
$ | 29 | $ | 9 | $ | 52 | $ | 35 | $ | 66 | $ | 191 | ||||||||||||
Provision for losses
|
111 | 9 | 45 | 47 | 55 | 267 | ||||||||||||||||||
Net charge-offs and transfers
|
(26 | ) | (9 | ) | (32 | ) | (3 | ) | (47 | ) | (117 | ) | ||||||||||||
Ending balance
|
$ | 114 | $ | 9 | $ | 65 | $ | 79 | $ | 74 | $ | 341 | ||||||||||||
Ending balance based on individual evaluations
|
46 | 1 | 32 | 59 | 15 | 153 | ||||||||||||||||||
Ending balance based on collective evaluation
|
68 | 8 | 33 | 20 | 59 | 188 | ||||||||||||||||||
Finance receivables
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 297 | $ | 3 | $ | 263 | $ | 496 | $ | 137 | $ | 1,196 | ||||||||||||
Collectively evaluated for impairment
|
2,238 | 330 | 626 | 806 | 697 | 4,697 | ||||||||||||||||||
Balance at end of year
|
$ | 2,535 | $ | 333 | $ | 889 | $ | 1,302 | $ | 834 | $ | 5,893 | ||||||||||||
January 1, | January 2, | |||||||
(In millions) | 2011 | 2010 | ||||||
Installment contracts
|
$ | 1,652 | $ | 1,462 | ||||
Finance leases
|
220 | 388 | ||||||
Distribution finance receivables
|
18 | 72 | ||||||
Total
|
$ | 1,890 | $ | 1,922 | ||||
|
January 1, | January 2, | |||||||
(In millions) | 2011 | 2010 | ||||||
Finished goods
|
$ | 784 | $ | 735 | ||||
Work in process
|
2,125 | 1,861 | ||||||
Raw materials and components
|
506 | 613 | ||||||
|
3,415 | 3,209 | ||||||
Progress/milestone payments
|
(1,138 | ) | (936 | ) | ||||
|
$ | 2,277 | $ | 2,273 | ||||
|
January 1, | January 2, | |||||||
(In millions) | 2011 | 2010 | ||||||
Land and buildings
|
$ | 1,453 | $ | 1,426 | ||||
Machinery and equipment
|
3,348 | 3,208 | ||||||
|
4,801 | 4,634 | ||||||
Accumulated depreciation and amortization
|
(2,869 | ) | (2,666 | ) | ||||
|
$ | 1,932 | $ | 1,968 | ||||
|
January 1, | January 2, | |||||||
(In millions) | 2011 | 2010 | ||||||
Customer deposits
|
$ | 715 | $ | 791 | ||||
Salaries, wages and employer taxes
|
275 | 244 | ||||||
Warranty and product maintenance contracts
|
242 | 263 | ||||||
Deferred revenues
|
161 | 72 | ||||||
Retirement plans
|
82 | 85 | ||||||
Restructuring
|
62 | 51 | ||||||
Other
|
479 | 533 | ||||||
Total accrued liabilities
|
$ | 2,016 | $ | 2,039 | ||||
(In millions) | 2010 | 2009 | 2008 | |||||||||
Accrual at beginning of year
|
$ | 263 | $ | 278 | $ | 313 | ||||||
Provision
|
189 | 174 | 189 | |||||||||
Settlements
|
(231 | ) | (217 | ) | (198 | ) | ||||||
Adjustments to prior accrual estimates*
|
21 | 28 | (26 | ) | ||||||||
Accrual at end of year
|
$ | 242 | $ | 263 | $ | 278 | ||||||
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments. |
|
January 1, | January 2, | |||||||
(In millions) | 2011 | 2010 | ||||||
Manufacturing group
|
||||||||
Current portion of long-term debt
|
$ | 19 | $ | 134 | ||||
Long-term senior debt:
|
||||||||
Medium-term notes due 2010 to 2011 (weighted-average rate of 9.83%)
|
13 | 13 | ||||||
4.50% due 2010
|
— | 128 | ||||||
Credit line borrowings due 2012 (weighted-average rate of 0.93% and 0.96%, respectively)
|
— | 1,167 | ||||||
6.50% due 2012
|
154 | 154 | ||||||
3.875% due 2013
|
315 | 345 | ||||||
4.50% convertible senior notes due 2013
|
504 | 471 | ||||||
6.20% due 2015
|
350 | 350 | ||||||
5.60% due 2017
|
350 | 350 | ||||||
7.25% due 2019
|
250 | 250 | ||||||
6.625% due 2020
|
231 | 240 | ||||||
Other (weighted-average rate of 3.12% and 3.65%, respectively)
|
135 | 116 | ||||||
|
2,302 | 3,584 | ||||||
Less: Current portion of long-term debt
|
(19 | ) | (134 | ) | ||||
Total long-term debt
|
2,283 | 3,450 | ||||||
Total Manufacturing group debt
|
$ | 2,302 | $ | 3,584 | ||||
Finance group
|
||||||||
Medium-term fixed-rate and variable-rate notes*:
|
||||||||
Due 2010 (weighted-average rate of 2.09%)
|
$ | — | $ | 1,635 | ||||
Due 2011 (weighted-average rate of 3.07% and 2.94%, respectively)
|
374 | 419 | ||||||
Due 2012 (weighted-average rate of 4.43%)
|
52 | 52 | ||||||
Due 2013 (weighted-average rate of 4.46% and 4.49%, respectively)
|
553 | 578 | ||||||
Due 2014 (weighted-average rate of 5.07%)
|
111 | 111 | ||||||
Due 2015 (weighted-average rate of 3.59% and 4.59%, respectively)
|
14 | 10 | ||||||
Due 2016 and thereafter (weighted-average rate of 3.37% and 4.04%, respectively)
|
252 | 222 | ||||||
Credit line borrowings due 2012 (weighted-average rate of 0.91%)
|
1,440 | 1,740 | ||||||
Securitized debt (weighted-average rate of 2.01% and 1.45%, respectively)
|
530 | 559 | ||||||
6% Fixed-to-Floating Rate Junior Subordinated Notes
|
300 | 300 | ||||||
Fair value adjustments and unamortized discount
|
34 | 41 | ||||||
Total Finance group debt
|
$ | 3,660 | $ | 5,667 | ||||
* Variable-rate notes totaled $0.3 billion and $1.4 billion at January 1, 2011 and January 2, 2010, respectively. |
(In millions) | 2011 | 2012 | 2013 | 2014 | 2015 | |||||||||||||||
Manufacturing group
|
$ | 19 | $ | 161 | $ | 921 | $ | 7 | $ | 357 | ||||||||||
Finance group
|
486 | 1,594 | 664 | 204 | 132 | |||||||||||||||
|
$ | 505 | $ | 1,755 | $ | 1,585 | $ | 211 | $ | 489 | ||||||||||
|
Notional Amount | Asset (Liability) | |||||||||||||||||||||
January 1, | January 2, | January 1, | January 2, | |||||||||||||||||||
(In millions) | Borrowing Group | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||
Assets
|
||||||||||||||||||||||
Interest rate exchange contracts*
|
Finance | $ | 628 | $ | 1,333 | $ | 34 | $ | 43 | |||||||||||||
Cross-currency interest rate exchange contracts
|
Finance | — | 161 | — | 18 | |||||||||||||||||
Investment in other marketable securities
|
Finance | 51 | — | 51 | — | |||||||||||||||||
Foreign currency exchange contracts
|
Manufacturing | 534 | 696 | 39 | 54 | |||||||||||||||||
Total
|
$ | 1,213 | $ | 2,190 | $ | 124 | $ | 115 | ||||||||||||||
Liabilities
|
||||||||||||||||||||||
Interest rate exchange contracts*
|
Finance | $ | 451 | $ | 32 | $ | (6 | ) | $ | (3 | ) | |||||||||||
Foreign currency exchange contracts
|
Manufacturing | 101 | 80 | (2 | ) | (5 | ) | |||||||||||||||
Total
|
$ | 552 | $ | 112 | $ | (8 | ) | $ | (8 | ) | ||||||||||||
* Interest rate exchange contracts represent fair value hedges. |
Notional Amount | Asset (Liability) | |||||||||||||||||||||
January 1, | January 2, | January 1, | January 2, | |||||||||||||||||||
(In millions) | Borrowing Group | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||
Foreign currency exchange contracts
|
Finance | $ | 141 | $ | 531 | $ | (1 | ) | $ | (13 | ) | |||||||||||
Foreign currency exchange contracts
|
Manufacturing | — | 224 | — | 3 | |||||||||||||||||
Total
|
$ | 141 | $ | 755 | $ | (1 | ) | $ | (10 | ) | ||||||||||||
(In millions) | Gain (Loss) Location | 2010 | 2009 | |||||||
Interest rate exchange contracts
|
Interest expense | $ | 25 | $ | (13 | ) | ||||
Interest rate exchange contracts
|
Finance charges | (11 | ) | 10 | ||||||
Amount of Gain (Loss) | ||||||||||||||||||||||||
Recognized in OCI | Effective Portion of Derivative Reclassified from Accumulated | |||||||||||||||||||||||
(Effective Portion) | Other Comprehensive Loss into Income | |||||||||||||||||||||||
(In millions) | 2010 | 2009 | Gain (Loss) Location | 2010 | 2009 | |||||||||||||||||||
Foreign currency exchange contracts
|
$ | 13 | $ | 65 | Cost of sales | $ | 15 | $ | 3 | |||||||||||||||
Balance at | Gain (Loss) | |||||||||||||||||||
January 1, | January 2, | |||||||||||||||||||
(In millions) | 2011 | 2010 | 2010 | 2009 | ||||||||||||||||
Finance group
|
||||||||||||||||||||
Impaired finance receivables
|
$ | 504 | $ | 686 | $ | (148 | ) | $ | (165 | ) | ||||||||||
Finance receivables held for sale
|
413 | 819 | (22 | ) | (14 | ) | ||||||||||||||
Other assets
|
149 | 156 | (47 | ) | (61 | ) | ||||||||||||||
Manufacturing group
|
||||||||||||||||||||
Goodwill
|
— | 61 | — | (80 | ) | |||||||||||||||
Property, plant and equipment
|
7 | 13 | (15 | ) | (47 | ) | ||||||||||||||
January 1, 2011 | January 2, 2010 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
(In millions) | Value | Fair Value | Value | Fair Value | ||||||||||||
|
||||||||||||||||
Manufacturing group
|
||||||||||||||||
Debt, excluding leases
|
$ | (2,172 | ) | $ | (2,698 | ) | $ | (3,474 | ) | $ | (3,762 | ) | ||||
Finance group
|
||||||||||||||||
Finance receivables held for investment, excluding leases
|
3,345 | 3,131 | 5,159 | 4,703 | ||||||||||||
Investment in other marketable securities
|
— | — | 68 | 56 | ||||||||||||
Debt
|
(3,660 | ) | (3,528 | ) | (5,667 | ) | (5,439 | ) | ||||||||
|
|
Restructuring Program | ||||||||||||||||||||||||||||
Severance | Curtailment | Asset | Contract | Total | Other | |||||||||||||||||||||||
(In millions) | Costs | Charges, Net | Impairments | Terminations | Restructuring | Charges | Total | |||||||||||||||||||||
2010
|
||||||||||||||||||||||||||||
Cessna
|
$ | 34 | $ | — | $ | 6 | $ | 3 | $ | 43 | $ | — | $ | 43 | ||||||||||||||
Finance
|
7 | — | 1 | 3 | 11 | 91 | 102 | |||||||||||||||||||||
Corporate
|
1 | — | — | — | 1 | — | 1 | |||||||||||||||||||||
Industrial
|
5 | — | 9 | 1 | 15 | — | 15 | |||||||||||||||||||||
Bell
|
10 | — | — | — | 10 | — | 10 | |||||||||||||||||||||
Textron Systems
|
19 | — | — | — | 19 | — | 19 | |||||||||||||||||||||
|
$ | 76 | $ | — | $ | 16 | $ | 7 | $ | 99 | $ | 91 | $ | 190 | ||||||||||||||
2009
|
||||||||||||||||||||||||||||
Cessna
|
$ | 80 | $ | 26 | $ | 54 | $ | 7 | $ | 167 | $ | — | $ | 167 | ||||||||||||||
Finance
|
11 | 1 | — | 1 | 13 | — | 13 | |||||||||||||||||||||
Corporate
|
34 | — | — | 1 | 35 | — | 35 | |||||||||||||||||||||
Industrial
|
6 | (4 | ) | — | 3 | 5 | 80 | 85 | ||||||||||||||||||||
Bell
|
9 | — | — | — | 9 | — | 9 | |||||||||||||||||||||
Textron Systems
|
5 | 2 | — | 1 | 8 | — | 8 | |||||||||||||||||||||
|
$ | 145 | $ | 25 | $ | 54 | $ | 13 | $ | 237 | $ | 80 | $ | 317 | ||||||||||||||
2008
|
||||||||||||||||||||||||||||
Cessna
|
$ | 5 | $ | — | $ | — | $ | — | $ | 5 | $ | — | $ | 5 | ||||||||||||||
Finance
|
15 | — | 11 | 1 | 27 | 462 | 489 | |||||||||||||||||||||
Corporate
|
6 | — | — | — | 6 | — | 6 | |||||||||||||||||||||
Industrial
|
16 | — | 9 | — | 25 | — | 25 | |||||||||||||||||||||
Textron Systems
|
1 | — | — | — | 1 | — | 1 | |||||||||||||||||||||
|
$ | 43 | $ | — | $ | 20 | $ | 1 | $ | 64 | $ | 462 | $ | 526 | ||||||||||||||
Severance | Curtailment | Asset | Contract | Total | ||||||||||||||||
(In millions) | Costs | Charges, Net | Impairments | Terminations | Restructuring | |||||||||||||||
Cessna
|
$ | 119 | $ | 26 | $ | 60 | $ | 10 | $ | 215 | ||||||||||
Finance
|
33 | 1 | 12 | 5 | 51 | |||||||||||||||
Corporate
|
41 | — | — | 1 | 42 | |||||||||||||||
Industrial
|
27 | (4 | ) | 18 | 4 | 45 | ||||||||||||||
Bell
|
19 | — | — | — | 19 | |||||||||||||||
Textron Systems
|
25 | 2 | — | 1 | 28 | |||||||||||||||
|
$ | 264 | $ | 25 | $ | 90 | $ | 21 | $ | 400 | ||||||||||
Severance | Curtailment | Asset | Contract | |||||||||||||||||
(In millions) | Costs | Charges, Net | Impairment | Terminations | Total | |||||||||||||||
Provision in 2008
|
$ | 43 | $ | — | $ | 20 | $ | 1 | $ | 64 | ||||||||||
Non-cash settlement
|
— | — | (20 | ) | — | (20 | ) | |||||||||||||
Cash paid
|
(7 | ) | — | — | — | (7 | ) | |||||||||||||
Balance at January 3, 2009
|
36 | — | — | 1 | 37 | |||||||||||||||
Provision in 2009
|
152 | 25 | 54 | 13 | 244 | |||||||||||||||
Reversals
|
(7 | ) | — | — | — | (7 | ) | |||||||||||||
Non-cash settlement and loss recognition
|
— | (25 | ) | (54 | ) | — | (79 | ) | ||||||||||||
Cash paid
|
(133 | ) | — | — | (11 | ) | (144 | ) | ||||||||||||
Balance at January 2, 2010
|
48 | — | — | 3 | 51 | |||||||||||||||
Provision in 2010
|
79 | — | 16 | 7 | 102 | |||||||||||||||
Reversals
|
(3 | ) | — | — | — | (3 | ) | |||||||||||||
Non-cash settlement
|
— | — | (16 | ) | — | (16 | ) | |||||||||||||
Cash paid
|
(67 | ) | — | — | (5 | ) | (72 | ) | ||||||||||||
Balance at January 1, 2011
|
$ | 57 | $ | — | $ | — | $ | 5 | $ | 62 | ||||||||||
|
Postretirement Benefits | ||||||||||||||||||||||||
Pension Benefits | Other than Pensions | |||||||||||||||||||||||
(In millions) | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | ||||||||||||||||||
Net periodic benefit cost
|
||||||||||||||||||||||||
Service cost
|
$ | 124 | $ | 116 | $ | 146 | $ | 8 | $ | 8 | $ | 8 | ||||||||||||
Interest cost
|
328 | 323 | 322 | 34 | 38 | 40 | ||||||||||||||||||
Expected return on plan assets
|
(385 | ) | (404 | ) | (427 | ) | — | — | — | |||||||||||||||
Amortization of prior service cost (credit)
|
16 | 18 | 19 | (4 | ) | (5 | ) | (5 | ) | |||||||||||||||
Amortization of net loss
|
41 | 10 | 25 | 11 | 8 | 15 | ||||||||||||||||||
Curtailment and special termination charges
|
2 | 34 | 18 | — | (5 | ) | — | |||||||||||||||||
Settlements and disbursements
|
— | — | (4 | ) | — | — | — | |||||||||||||||||
Net periodic benefit cost
|
$ | 126 | $ | 97 | $ | 99 | $ | 49 | $ | 44 | $ | 58 | ||||||||||||
Other changes in plan assets and benefit obligations
recognized in OCI, including foreign exchange
|
||||||||||||||||||||||||
Amortization of net loss
|
$ | (41 | ) | $ | (10 | ) | $ | (25 | ) | $ | (11 | ) | $ | (8 | ) | $ | (15 | ) | ||||||
Net loss (gain) arising during the year
|
171 | (58 | ) | 1,320 | — | 24 | (32 | ) | ||||||||||||||||
Amortization of prior service credit (cost)
|
(16 | ) | (48 | ) | (19 | ) | 4 | 10 | 5 | |||||||||||||||
Prior service cost (credit) arising during the year
|
5 | 26 | 7 | (16 | ) | 2 | (27 | ) | ||||||||||||||||
Other charges
|
(1 | ) | — | (18 | ) | — | — | — | ||||||||||||||||
Total recognized in OCI
|
$ | 118 | $ | (90 | ) | $ | 1,265 | $ | (23 | ) | $ | 28 | $ | (69 | ) | |||||||||
Total recognized in net periodic benefit cost and OCI
|
$ | 244 | $ | 7 | $ | 1,364 | $ | 26 | $ | 72 | $ | (11 | ) | |||||||||||
Postretirement | ||||||||
Benefits | ||||||||
Pension | Other than | |||||||
(In millions) | Benefits | Pensions | ||||||
Net loss
|
$ | 75 | $ | 11 | ||||
Prior service cost (credit)
|
16 | (8 | ) | |||||
|
$ | 91 | $ | 3 | ||||
Postretirement Benefits | ||||||||||||||||
Pension Benefits | Other than Pensions | |||||||||||||||
(In millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Change in benefit obligation
|
||||||||||||||||
Benefit obligation at beginning of year
|
$ | 5,470 | $ | 5,327 | $ | 646 | $ | 636 | ||||||||
Service cost
|
124 | 116 | 8 | 8 | ||||||||||||
Interest cost
|
328 | 323 | 34 | 38 | ||||||||||||
Amendments
|
5 | 26 | (16 | ) | 2 | |||||||||||
Plan participants’ contributions
|
— | — | 5 | 5 | ||||||||||||
Actuarial losses (gains)
|
292 | (2 | ) | — | 22 | |||||||||||
Benefits paid
|
(330 | ) | (315 | ) | (63 | ) | (67 | ) | ||||||||
Foreign exchange rate changes
|
(10 | ) | 51 | — | — | |||||||||||
Settlements and disbursements
|
— | (55 | ) | — | — | |||||||||||
Curtailments
|
(2 | ) | (1 | ) | — | 2 | ||||||||||
Benefit obligation at end of year
|
$ | 5,877 | $ | 5,470 | $ | 614 | $ | 646 | ||||||||
Change in fair value of plan assets
|
||||||||||||||||
Fair value of plan assets at beginning of year
|
$ | 4,005 | $ | 3,823 | $ | — | $ | — | ||||||||
Actual return on plan assets
|
505 | 496 | — | — | ||||||||||||
Employer contributions
|
390 | 51 | — | — | ||||||||||||
Benefits paid
|
(330 | ) | (315 | ) | — | — | ||||||||||
Dispositions
|
— | (40 | ) | — | — | |||||||||||
Foreign exchange rate changes
|
(9 | ) | 45 | — | — | |||||||||||
Settlements and disbursements
|
(2 | ) | (55 | ) | — | — | ||||||||||
Fair value of plan assets at end of year
|
$ | 4,559 | $ | 4,005 | $ | — | $ | — | ||||||||
Funded status at end of year
|
$ | (1,318 | ) | $ | (1,465 | ) | $ | (614 | ) | $ | (646 | ) | ||||
Postretirement Benefits | ||||||||||||||||
Pension Benefits | Other than Pensions | |||||||||||||||
(In millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Non-current assets
|
$ | 58 | $ | 51 | $ | — | $ | — | ||||||||
Current liabilities
|
(22 | ) | (22 | ) | (60 | ) | (63 | ) | ||||||||
Non-current liabilities
|
(1,354 | ) | (1,494 | ) | (554 | ) | (583 | ) | ||||||||
Recognized in accumulated other comprehensive loss:
|
||||||||||||||||
Net loss
|
1,977 | 1,851 | 120 | 131 | ||||||||||||
Prior service cost (credit)
|
138 | 150 | (35 | ) | (23 | ) | ||||||||||
(In millions) | 2010 | 2009 | ||||||||||
Projected benefit obligation
|
$ | 5,706 | $ | 5,328 | ||||||||
Accumulated benefit obligation
|
5,288 | 4,929 | ||||||||||
Fair value of plan assets
|
4,329 | 3,813 | ||||||||||
Postretirement Benefits | ||||||||||||||||||||||||
Pension Benefits | Other than Pensions | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net periodic benefit cost
|
||||||||||||||||||||||||
Discount rate
|
6.20 | % | 6.61 | % | 5.99 | % | 5.50 | % | 6.25 | % | 6.00 | % | ||||||||||||
Expected long-term rate of return on assets
|
8.26 | % | 8.58 | % | 8.66 | % | — | — | — | |||||||||||||||
Rate of compensation increase
|
4.00 | % | 4.36 | % | 4.48 | % | — | — | — | |||||||||||||||
Benefit obligations at year-end
|
||||||||||||||||||||||||
Discount rate
|
5.71 | % | 6.19 | % | 6.28 | % | 5.50 | % | 5.50 | % | 6.25 | % | ||||||||||||
Rate of compensation increases
|
3.99 | % | 4.00 | % | 4.47 | % | — | — | — | |||||||||||||||
2010 | 2009 | ||||||||
Medical cost trend rate
|
8 | % | 7 | % | |||||
Prescription drug cost trend rate
|
9 | % | 10 | % | |||||
Rate to which medical and prescription drug cost trend rates will gradually decline
|
5 | % | 5 | % | |||||
Year that the rates reach the rate where we assume they will remain
|
2020 | 2019 | |||||||
One- | One- | |||||||
Percentage- | Percentage- | |||||||
Point | Point | |||||||
(In millions) | Increase | Decrease | ||||||
Effect on total of service and interest cost components
|
$ | 3 | $ | (3 | ) | |||
Effect on postretirement benefit obligations other than pensions
|
39 | (34 | ) | |||||
(In millions) | Level 1 | Level 2 | Level 3 | |||||||||
January 1, 2011
|
||||||||||||
Cash and equivalents
|
$ | 3 | $ | 178 | $ | — | ||||||
Equity securities:
|
||||||||||||
Domestic
|
1,052 | 469 | — | |||||||||
International
|
688 | 251 | — | |||||||||
Debt securities:
|
||||||||||||
National, state and local governments
|
39 | 570 | — | |||||||||
Corporate debt
|
10 | 432 | — | |||||||||
Asset-backed securities
|
2 | 103 | — | |||||||||
Private equity partnerships
|
— | — | 324 | |||||||||
Real estate
|
— | — | 337 | |||||||||
Hedge funds
|
— | — | 101 | |||||||||
Total
|
$ | 1,794 | $ | 2,003 | $ | 762 | ||||||
January 2, 2010
|
||||||||||||
Cash and equivalents
|
$ | 9 | $ | 128 | $ | — | ||||||
Equity securities:
|
||||||||||||
Domestic
|
900 | 409 | — | |||||||||
International
|
610 | 220 | — | |||||||||
Debt securities:
|
||||||||||||
National, state and local governments
|
— | 504 | — | |||||||||
Corporate debt
|
— | 463 | — | |||||||||
Asset-backed securities
|
— | 148 | — | |||||||||
Private equity partnerships
|
— | — | 313 | |||||||||
Real estate
|
— | — | 301 | |||||||||
Total
|
$ | 1,519 | $ | 1,872 | $ | 614 | ||||||
Private Equity | ||||||||||||
(In millions) | Hedge Funds | Partnerships | Real Estate | |||||||||
Balance at beginning of year
|
$ | — | $ | 313 | $ | 301 | ||||||
Actual return on plan assets:
|
||||||||||||
Related to assets still held at reporting date
|
1 | 13 | 7 | |||||||||
Related to assets sold during the period
|
— | 28 | — | |||||||||
Purchases, sales and settlements, net
|
100 | (30 | ) | 29 | ||||||||
Balance at end of year
|
$ | 101 | $ | 324 | $ | 337 | ||||||
Post- | ||||||||||||
retirement | Expected | |||||||||||
Benefits | Medicare | |||||||||||
Pension | Other than | Part D | ||||||||||
(In millions) | Benefits | Pensions | Subsidy | |||||||||
2011
|
$ | 344 | $ | 64 | $ | (3 | ) | |||||
2012
|
350 | 63 | (3 | ) | ||||||||
2013
|
354 | 63 | (3 | ) | ||||||||
2014
|
360 | 62 | (2 | ) | ||||||||
2015
|
365 | 60 | (2 | ) | ||||||||
2016 – 2020
|
1,960 | 264 | (10 | ) | ||||||||
|
(In millions) | 2010 | 2009 | 2008 | |||||||||
U.S.
|
$ | (63 | ) | $ | (229 | ) | $ | 598 | ||||
Non-U.S.
|
149 | 80 | 31 | |||||||||
Total income (loss) from continuing operations before income taxes
|
$ | 86 | $ | (149 | ) | $ | 629 | |||||
(In millions) | 2010 | 2009 | 2008 | |||||||||
Current:
|
||||||||||||
Federal
|
$ | (79 | ) | $ | 160 | $ | 317 | |||||
State
|
3 | 17 | 16 | |||||||||
Non-U.S.
|
19 | (8 | ) | 14 | ||||||||
|
(57 | ) | 169 | 347 | ||||||||
Deferred:
|
||||||||||||
Federal
|
59 | (238 | ) | (61 | ) | |||||||
State
|
(5 | ) | (22 | ) | 5 | |||||||
Non-U.S.
|
(3 | ) | 15 | 14 | ||||||||
|
51 | (245 | ) | (42 | ) | |||||||
Income tax expense (benefit)
|
$ | (6 | ) | $ | (76 | ) | $ | 305 | ||||
2010 | 2009 | 2008 | |||||||||||
Federal statutory income tax rate
|
35.0 | % | (35.0 | )% | 35.0 | % | |||||||
Increase (decrease) in taxes resulting from:
|
|||||||||||||
State income taxes
|
(2.7 | ) | 0.4 | 2.3 | |||||||||
Non-U.S. tax rate differential and foreign tax credits
|
(60.5 | ) | (13.5 | ) | (5.7 | ) | |||||||
Unrecognized tax benefits and related interest
|
17.5 | (4.1 | ) | 3.4 | |||||||||
Nondeductible healthcare claims
|
12.7 | — | — | ||||||||||
Change in status of subsidiaries
|
12.0 | (3.6 | ) | 5.0 | |||||||||
Research credit
|
(5.4 | ) | (4.7 | ) | (1.9 | ) | |||||||
Cash surrender value of life insurance
|
(5.1 | ) | (1.9 | ) | (0.8 | ) | |||||||
Valuation allowance on contingent receipts
|
(2.0 | ) | (7.3 | ) | (0.5 | ) | |||||||
Goodwill impairment
|
— | 18.5 | 8.4 | ||||||||||
Manufacturing deduction
|
— | (3.1 | ) | (2.8 | ) | ||||||||
Other, net
|
(7.9 | ) | 3.3 | 6.2 | |||||||||
Effective income tax rate
|
(6.4 | )% | (51.0 | )% | 48.6 | % | |||||||
January 1, | January 2, | |||||||
(In millions) | 2011 | 2010 | ||||||
Balance at beginning of year
|
$ | 294 | $ | 324 | ||||
Additions for tax positions related to current year
|
7 | 9 | ||||||
Additions for tax positions of prior years
|
8 | 11 | ||||||
Reductions for tax positions of prior years
|
(17 | ) | (43 | ) | ||||
Reductions for expiration of statute of limitations
|
(5 | ) | (1 | ) | ||||
Reductions for settlements with tax authorities
|
(2 | ) | (6 | ) | ||||
Balance at end of year
|
$ | 285 | $ | 294 | ||||
January 1, | January 2, | |||||||
(In millions) | 2011 | 2010 | ||||||
Deferred tax assets
|
||||||||
Obligation for pension and postretirement benefits
|
$ | 692 | $ | 765 | ||||
Accrued expenses*
|
255 | 267 | ||||||
Deferred compensation
|
203 | 197 | ||||||
Allowance for credit losses
|
141 | 146 | ||||||
Loss carryforwards
|
66 | 60 | ||||||
Deferred income
|
59 | 33 | ||||||
Valuation allowance on finance receivables held for sale
|
29 | 71 | ||||||
Foreign currency translation adjustment
|
— | 41 | ||||||
Other, net
|
177 | 192 | ||||||
Total deferred tax assets
|
1,622 | 1,772 | ||||||
Valuation allowance for deferred tax assets
|
(200 | ) | (227 | ) | ||||
|
$ | 1,422 | $ | 1,545 | ||||
Deferred tax liabilities
|
||||||||
Leasing transactions
|
$ | (387 | ) | $ | (468 | ) | ||
Amortization of goodwill and other intangibles
|
(135 | ) | (146 | ) | ||||
Property, plant and equipment, principally depreciation
|
(132 | ) | (115 | ) | ||||
Inventory
|
(15 | ) | (5 | ) | ||||
Total deferred tax liabilities
|
(669 | ) | (734 | ) | ||||
Net deferred tax asset
|
$ | 753 | $ | 811 | ||||
* Accrued expenses includes warranty and product maintenance reserves, self-insured liabilities, interest and restructuring charges. |
January 1, | January 2, | |||||||
(In millions) | 2011 | 2010 | ||||||
Current
|
$ | 290 | $ | 315 | ||||
Non-current
|
571 | 632 | ||||||
|
861 | 947 | ||||||
Finance group’s net deferred tax liability
|
(108 | ) | (136 | ) | ||||
Net deferred tax asset
|
$ | 753 | $ | 811 | ||||
January 1, | January 2, | |||||||
(In millions) | 2011 | 2010 | ||||||
Non-U.S. net operating loss carryforwards with no expiration
|
$ | 126 | $ | 157 | ||||
Non-U.S. net operating loss carryforwards expiring through 2030
|
30 | 18 | ||||||
State unitary net operating loss carryforwards, net of tax benefits, expiring through 2026
|
4 | — | ||||||
U.S. foreign tax credits expiring in 2021
|
16 | — | ||||||
State credit carryforwards beginning to expire in 2018
|
12 | 11 | ||||||
|
|
(In millions) | 2010 | 2009 | 2008 | ||||||||||
Interest paid:
|
|||||||||||||
Manufacturing group
|
$ | 145 | $ | 116 | $ | 139 | |||||||
Finance group
|
127 | 171 | 310 | ||||||||||
Taxes paid, net of refunds received:
|
|||||||||||||
Manufacturing group
|
59 | 49 | 346 | ||||||||||
Finance group
|
101 | (75 | ) | 52 | |||||||||
Discontinued operations
|
2 | 156 | 15 | ||||||||||
|
• | Kautex products include blow-molded plastic fuel systems, windshield and headlamp washer systems, engine camshafts and other parts that are marketed primarily to automobile original equipment manufacturers, as well as plastic bottles and containers for various uses; | |
• | Greenlee products include powered equipment, electrical test and measurement instruments, hand and hydraulic powered tools, and electrical and fiber optic assemblies, principally used in the electrical construction and maintenance, plumbing, wiring, telecommunications and data communications industries; and | |
• | E-Z-GO and Jacobsen products include golf cars; professional turf-maintenance equipment; and off-road, multipurpose utility and specialized turf-care vehicles that are marketed primarily to golf courses, resort communities, municipalities, sporting venues, and commercial and industrial users. |
Revenues | Segment Profit (Loss) | |||||||||||||||||||||||
(In millions) | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | ||||||||||||||||||
Cessna
|
$ | 2,563 | $ | 3,320 | $ | 5,662 | $ | (29 | ) | $ | 198 | $ | 905 | |||||||||||
Bell
|
3,241 | 2,842 | 2,827 | 427 | 304 | 278 | ||||||||||||||||||
Textron Systems
|
1,979 | 1,899 | 1,880 | 230 | 240 | 251 | ||||||||||||||||||
Industrial
|
2,524 | 2,078 | 2,918 | 162 | 27 | 67 | ||||||||||||||||||
Finance
|
218 | 361 | 723 | (237 | ) | (294 | ) | (50 | ) | |||||||||||||||
|
$ | 10,525 | $ | 10,500 | $ | 14,010 | 553 | 475 | 1,451 | |||||||||||||||
Special charges
|
(190 | ) | (317 | ) | (526 | ) | ||||||||||||||||||
Corporate expenses and other, net
|
(137 | ) | (164 | ) | (171 | ) | ||||||||||||||||||
Interest expense, net for Manufacturing group
|
(140 | ) | (143 | ) | (125 | ) | ||||||||||||||||||
Income (loss) from continuing operations before income taxes
|
$ | 86 | $ | (149 | ) | $ | 629 | |||||||||||||||||
Revenues | ||||||||||||
(In millions) | 2010 | 2009 | 2008 | |||||||||
Fixed-wing aircraft
|
$ | 2,563 | $ | 3,320 | $ | 5,662 | ||||||
Rotor aircraft
|
3,241 | 2,842 | 2,827 | |||||||||
Unmanned aircraft systems, armored security vehicles, precision weapons and other
|
1,979 | 1,899 | 1,880 | |||||||||
Fuel systems and functional components
|
1,640 | 1,287 | 1,763 | |||||||||
Powered tools, testing and measurement equipment
|
330 | 300 | 435 | |||||||||
Golf and turf-care products
|
554 | 491 | 720 | |||||||||
Finance
|
218 | 361 | 723 | |||||||||
|
$ | 10,525 | $ | 10,500 | $ | 14,010 | ||||||
Assets | ||||||||
(In millions) | January 1, 2011 |
January 2, 2010 |
||||||
Cessna
|
$ | 2,294 | $ | 2,427 | ||||
Bell
|
2,079 | 2,059 | ||||||
Textron Systems
|
1,997 | 1,973 | ||||||
Industrial
|
1,604 | 1,623 | ||||||
Finance
|
4,949 | 7,512 | ||||||
Corporate
|
2,359 | 3,346 | ||||||
|
$ | 15,282 | $ | 18,940 | ||||
Capital Expenditures | Depreciation and Amortization | |||||||||||||||||||||||
(In millions) | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | ||||||||||||||||||
Cessna
|
$ | 47 | $ | 65 | $ | 285 | $ | 106 | $ | 115 | $ | 105 | ||||||||||||
Bell
|
123 | 101 | 138 | 92 | 83 | 71 | ||||||||||||||||||
Textron Systems
|
41 | 31 | 34 | 81 | 85 | 85 | ||||||||||||||||||
Industrial
|
51 | 38 | 69 | 72 | 76 | 83 | ||||||||||||||||||
Finance
|
— | — | 8 | 31 | 36 | 40 | ||||||||||||||||||
Corporate
|
8 | 3 | 11 | 11 | 14 | 16 | ||||||||||||||||||
|
$ | 270 | $ | 238 | $ | 545 | $ | 393 | $ | 409 | $ | 400 | ||||||||||||
Revenues* | Property, Plant and Equipment, net** |
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January 1, | January 2, | |||||||||||||||||||
(In millions) | 2010 | 2009 | 2008 | 2011 | 2010 | |||||||||||||||
United States
|
$ | 6,688 | $ | 6,563 | $ | 8,609 | $ | 1,565 | $ | 1,594 | ||||||||||
Europe
|
1,448 | 1,625 | 2,601 | 220 | 238 | |||||||||||||||
Canada
|
347 | 344 | 431 | 89 | 82 | |||||||||||||||
Latin America and Mexico
|
815 | 815 | 1,131 | 22 | 19 | |||||||||||||||
Asia and Australia
|
776 | 553 | 753 | 52 | 56 | |||||||||||||||
Middle East and Africa
|
451 | 600 | 485 | — | — | |||||||||||||||
|
$ | 10,525 | $ | 10,500 | $ | 14,010 | $ | 1,948 | $ | 1,989 | ||||||||||
(Unaudited) | 2010 | 2009 | |||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||
Revenues
|
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Cessna
|
$ | 433 | $ | 635 | $ | 535 | $ | 960 | $ | 769 | $ | 871 | $ | 825 | $ | 855 | |||||||||||||||||
Bell
|
618 | 823 | 825 | 975 | 742 | 670 | 628 | 802 | |||||||||||||||||||||||||
Textron Systems
|
458 | 534 | 460 | 527 | 418 | 477 | 502 | 502 | |||||||||||||||||||||||||
Industrial
|
625 | 661 | 600 | 638 | 475 | 508 | 523 | 572 | |||||||||||||||||||||||||
Finance
|
76 | 56 | 59 | 27 | 122 | 86 | 71 | 82 | |||||||||||||||||||||||||
Total revenues
|
$ | 2,210 | $ | 2,709 | $ | 2,479 | $ | 3,127 | $ | 2,526 | $ | 2,612 | $ | 2,549 | $ | 2,813 | |||||||||||||||||
Segment profit
|
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Cessna
|
$ | (24 | ) | $ | 3 | $ | (31 | ) | $ | 23 | $ | 90 | $ | 48 | $ | 32 | $ | 28 | |||||||||||||||
Bell
|
74 | 108 | 107 | 138 | 69 | 72 | 79 | 84 | |||||||||||||||||||||||||
Textron Systems
|
55 | 70 | 50 | 55 | 52 | 55 | 68 | 65 | |||||||||||||||||||||||||
Industrial
|
49 | 51 | 37 | 25 | (9 | ) | 12 | 6 | 18 | ||||||||||||||||||||||||
Finance
|
(58 | ) | (71 | ) | (51 | ) | (57 | ) | (66 | ) | (99 | ) | (64 | ) | (65 | ) | |||||||||||||||||
Total segment profit
|
96 | 161 | 112 | 184 | 136 | 88 | 121 | 130 | |||||||||||||||||||||||||
Special charges (a)
|
(12 | ) | (10 | ) | (114 | ) | (54 | ) | (32 | ) | (129 | ) | (42 | ) | (114 | ) | |||||||||||||||||
Corporate expenses and other, net
|
(37 | ) | (17 | ) | (35 | ) | (48 | ) | (35 | ) | (45 | ) | (44 | ) | (40 | ) | |||||||||||||||||
Interest expense, net for Manufacturing group
|
(36 | ) | (35 | ) | (32 | ) | (37 | ) | (28 | ) | (34 | ) | (40 | ) | (41 | ) | |||||||||||||||||
Income tax benefit (expense)
|
(15 | ) | (18 | ) | 21 | 18 | 2 | 58 | 11 | 5 | |||||||||||||||||||||||
Income (loss) from continuing operations
|
(4 | ) | 81 | (48 | ) | 63 | 43 | (62 | ) | 6 | (60 | ) | |||||||||||||||||||||
Income (loss) from discontinued operations, net of
income taxes
|
(4 | ) | 1 | — | (3 | ) | 43 | 4 | (2 | ) | (3 | ) | |||||||||||||||||||||
Net income (loss)
|
$ | (8 | ) | $ | 82 | $ | (48 | ) | $ | 60 | $ | 86 | $ | (58 | ) | $ | 4 | $ | (63 | ) | |||||||||||||
Basic earnings per share
|
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Continuing operations
|
$ | (0.01 | ) | $ | 0.30 | $ | (0.17 | ) | $ | 0.23 | $ | 0.18 | $ | (0.23 | ) | $ | 0.02 | $ | (0.22 | ) | |||||||||||||
Discontinued operations
|
(0.02 | ) | — | — | (0.01 | ) | 0.17 | 0.01 | (0.01 | ) | (0.01 | ) | |||||||||||||||||||||
Basic earnings per share
|
$ | (0.03 | ) | $ | 0.30 | $ | (0.17 | ) | $ | 0.22 | $ | 0.35 | $ | (0.22 | ) | $ | 0.01 | $ | (0.23 | ) | |||||||||||||
Basic average shares outstanding (In thousands)
|
273,174 | 274,098 | 274,896 | 275,640 | 243,988 | 264,091 | 271,224 | 272,168 | |||||||||||||||||||||||||
Diluted earnings per share (b)
|
|||||||||||||||||||||||||||||||||
Continuing operations
|
$ | (0.01 | ) | $ | 0.27 | $ | (0.17 | ) | $ | 0.20 | $ | 0.18 | $ | (0.23 | ) | $ | 0.02 | $ | (0.22 | ) | |||||||||||||
Discontinued operations
|
(0.02 | ) | — | — | (0.01 | ) | 0.17 | 0.01 | (0.01 | ) | (0.01 | ) | |||||||||||||||||||||
Diluted earnings per share
|
$ | (0.03 | ) | $ | 0.27 | $ | (0.17 | ) | $ | 0.19 | $ | 0.35 | $ | (0.22 | ) | $ | 0.01 | $ | (0.23 | ) | |||||||||||||
Diluted average shares outstanding (In thousands)
|
273,174 | 302,397 | 274,896 | 308,491 | 244,956 | 264,091 | 278,429 | 272,168 | |||||||||||||||||||||||||
Segment profit margins
|
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Cessna
|
(5.5 | )% | 0.5 | % | (5.8 | )% | 2.4 | % | 11.7 | % | 5.5 | % | 3.9 | % | 3.3 | % | |||||||||||||||||
Bell
|
12.0 | 13.1 | 13.0 | 14.2 | 9.3 | 10.7 | 12.6 | 10.5 | |||||||||||||||||||||||||
Textron Systems
|
12.0 | 13.1 | 10.9 | 10.4 | 12.4 | 11.5 | 13.5 | 12.9 | |||||||||||||||||||||||||
Industrial
|
7.8 | 7.7 | 6.2 | 3.9 | (1.9 | ) | 2.4 | 1.1 | 3.1 | ||||||||||||||||||||||||
Finance
|
(76.3 | ) | (126.8 | ) | (86.4 | ) | (211.1 | ) | (54.1 | ) | (115.1 | ) | (90.1 | ) | (79.3 | ) | |||||||||||||||||
Segment profit margin
|
4.3 | % | 5.9 | % | 4.5 | % | 5.9 | % | 5.4 | % | 3.4 | % | 4.7 | % | 4.6 | % | |||||||||||||||||
Common stock information (b)
|
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Price range: High
|
$ | 23.46 | $ | 25.30 | $ | 21.52 | $ | 24.18 | $ | 16.52 | $ | 14.37 | $ | 20.99 | $ | 21.00 | |||||||||||||||||
Low
|
$ | 17.96 | $ | 15.88 | $ | 16.02 | $ | 19.92 | $ | 3.57 | $ | 7.13 | $ | 8.51 | $ | 17.55 | |||||||||||||||||
Dividends declared per share
|
$ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | |||||||||||||||||
(a) | Special charges include restructuring charges of $99 million and $237 million in 2010 and 2009, respectively, primarily related to severance and asset impairment charges. In addition, in the third quarter of 2010, special charges include a $91 million non-cash pre-tax charge to reclassify a foreign exchange loss from equity to the income statement as a result of substantially liquidating a Finance segment entity. Also, in the fourth quarter of 2009, special charges include a goodwill impairment charge of $80 million in the Industrial segment. | |
(b) | For the first and third quarters of 2010 and the second and fourth quarters of 2009, the potential dilutive effect of stock options, restricted stock units and the shares that could be issued upon the conversion of our 4.50% Convertible Senior Notes and upon the exercise of the related warrants was excluded from the computation of diluted weighted-average shares outstanding as the shares would have an anti-dilutive effect on the loss from continuing operations. |
|
(c) | Schedule II — Valuation and Qualifying Accounts |
(In millions) | 2010 | 2009 | 2008 | |||||||||
Allowance for doubtful accounts
|
||||||||||||
Balance at beginning of year
|
$ | 23 | $ | 24 | $ | 29 | ||||||
Charged to costs and expenses
|
2 | 8 | 5 | |||||||||
Deductions from reserves*
|
(5 | ) | (9 | ) | (10 | ) | ||||||
Balance at end of year
|
$ | 20 | $ | 23 | $ | 24 | ||||||
Inventory FIFO reserves
|
||||||||||||
Balance at beginning of year
|
$ | 158 | $ | 114 | $ | 81 | ||||||
Charged to costs and expenses
|
54 | 126 | 65 | |||||||||
Deductions from reserves*
|
(79 | ) | (82 | ) | (32 | ) | ||||||
Balance at end of year
|
$ | 133 | $ | 158 | $ | 114 | ||||||
* | Deductions primarily include amounts written off on uncollectable accounts (less recoveries), inventory disposals and currency translation adjustments. |