2015 ANNUAL REPORT
Textron’s Diverse Product Portfolio
Textron is known around the world for its powerful brands of aircraft, defense and industrial products that provide
customers with groundbreaking technologies, innovative solutions and first-class service.
TEXTRON AVIATION
BELL HELICOPTER
INDUSTRIAL
TEXTRON SYSTEMS
Citation® Longitude®
Bell Boeing V-22 Osprey
Sherman + ReillyTM P2000X Puller
Shadow® M2
Citation® M2®
Bell 429WLG
E-Z-GO Freedom® RXV
Lycoming Race Engines
Beechcraft® King Air® 350i
Bell 525 RelentlessTM
Greenlee® DataScout® 10Gx
TRU Level D Full Flight Simulator
Cessna® TTx®
Bell 407GXP
Kautex NGFS® Fuel Tank
Ship to Shore Connector (SSC)
Beechcraft® T-6 Military Trainer
Bell 412EPI
Dixie Chopper® Stryker Stand-on
FuryTM Precision Guided Weapon
Cessna® Grand Caravan® EX
Bell 505 Jet Ranger XTM
TUGTM MA Tow Tractor
COMMANDOTM Elite
Textron’s Global Network of Businesses
TEXTRON AVIATION
BELL HELICOPTER
INDUSTRIAL
TEXTRON SYSTEMS
FINANCE
Textron Aviation is home
to the iconic Beechcraft,
Cessna and Hawker
brands, and continues
to lead general aviation
through two principal
lines of business: aircraft
sales and aftermarket.
Aircraft sales include
business jet, turboprop
and piston aircraft, as
well as special mission
and military aircraft.
Aftermarket includes
commercial parts sales,
maintenance, inspection
and repair services.
Bell Helicopter is one
of the leading suppliers
of helicopters and
related spare parts and
services in the world.
Bell is the pioneer of
the revolutionary tiltrotor
aircraft and has delivered
more than 35,000 aircraft
to customers around
the world. Greater than
29% of all helicopters in
operation today carry the
Bell brand, including both
military and commercial
applications.
Our Industrial segment
offers three main
product lines: fuel
systems and functional
components produced
by Kautex; specialized
vehicles and equipment
manufactured by the
Textron Specialized
Vehicles businesses and
Jacobsen; and tools and
test equipment made by
the Textron Tools & Test
companies.
Textron Systems’
businesses provide
innovative solutions to
the defense, aerospace
and general aviation
markets. Product lines
include unmanned
systems, armored
vehicles, advanced
marine craft, intelligent
battlefield and
surveillance systems,
intelligence software
solutions, piston engines,
simulation, training
and other defense and
aviation mission support
products and services.
Our Finance segment,
operated by Textron
Financial Corporation
(TFC), is a commercial
finance business that
provides financing
solutions for purchasers of
Textron products, primarily
Textron Aviation aircraft
and Bell helicopters. For
more than five decades,
TFC has played a key
role for Textron customers
around the globe.
Selected Year-Over-Year Financial Data
(Dollars in Millions, Except Per Share Amounts)
2015 2014
Total Revenues Total Segment Profit Income from Continuing Operations $13,423$13,878
1,2551,214
698605
PER SHARE OF COMMON STOCK
Common Stock Price:
High Low Year-End Diluted Earnings from Continuing Operations $ 46.93
$ 44.23
32.2032.28
42.0142.17
2.502.15
COMMON SHARES OUTSTANDING (In Thousands)
Diluted Average Year-End 278,727281,790
274,228276,582
FINANCIAL POSITION
Total Assets Manufacturing Group Debt Finance Group Debt Shareholders’ Equity Manufacturing Group Debt-to-Capital (Net of Cash) Manufacturing Group Debt-to-Capital $14,708$14,605
2,6972,811
9131,063
4,9644,272
26%33%
35%40%
KEY PERFORMANCE METRICS
Net Cash Provided by Operating Activities of Continuing Operations for Manufacturing Group—GAAP $ 1,038
$ 1,097
Manufacturing Cash Flow Before Pension Contributions—Non-GAAP1 631753
1. Manufacturing Cash Flow Before Pension Contributions is a Non-GAAP Measure. See page immediately preceding Form 10-K for Reconciliation to GAAP.
TEXTRON 2015 ANNUAL REPORT
1
Fellow Shareholders,
2015 was a year of strong execution for our company as we recorded
a segment profit of $1.3 billion and a profit margin of 9.3 percent.
With revenues of $13.4 billion for the year, we positioned ourselves
for continued long-term growth by achieving significant milestones
on a number of important programs, introducing new products and
enhancing our sales channels, actions that will enable us to expand
our markets and align with the needs of our customers.
Scott C. Donnelly
Chairman and Chief Executive Officer
Successfully executing on our commitments
Our financial results reflect the successful execution of our efforts
to realize new opportunities for growth, improve our operational
efficiency and fulfill our commitments to customers, despite
continued challenges in a number of the markets in which we
compete. At Textron Aviation, higher jet deliveries helped to lift
revenues to $4.8 billion in 2015 from $4.6 billion in 2014, while the
continued successful integration of our Beechcraft and Cessna
businesses helped to drive profits to $400 million, a 71 percent
increase over the previous year. The business celebrated Federal
Aviation Administration (FAA) certification and subsequent first
deliveries of the Citation Latitude and the new Pro Line Fusionequipped Beechcraft King Air 350i and 250 turboprop aircraft.
While the commercial helicopter market continued to be challenging
for Bell Helicopter, its long-term growth outlook remains strong
with new commercial products and upgrades on the horizon to be
TOTAL REVENUES BY SEGMENT
supported by expanded global sales efforts. Successful first flight
of the new Bell 525 Relentless­—the first-ever commercial fly-by-wire
helicopter— was a major milestone for the business in 2015. On the
military side, Bell Helicopter secured several notable contracts, both
domestically and internationally, for the H-1 and V-22 programs.
Our Textron Systems segment won a number of U.S. and
international military contracts, including additional craft for
the U.S. Navy’s Ship to Shore Connector program and a contract
for 55 COMMANDO Select vehicles to the Afghan National Army
that were delivered in 2015.
Our Industrial segment delivered solid financial performance with
continued expansion of our margin rates. By introducing new
products and leveraging the strength of our recent acquisitions, our
businesses grew and extended their product reach into new markets.
In our Finance segment, Textron Financial completed another
successful year of responding to our customers’ needs with attractive
financing options in support of Textron aircraft product sales.
Successfully launching new products and
winning customers
Textron Aviation $4.8B
Bell Helicopter $3.5B
Industrial $3.5B
Textron Systems $1.5B
Finance $0.1B
2
TEXTRON 2015 ANNUAL REPORT
Bringing new products to our markets creates excitement among
customers, which results in new orders and sales. A prime example
was Bell Helicopter’s introduction of the Bell 407GXP long light single
aircraft at Heli-Expo in March, which resulted in the largest single
order—up to 200 from one customer—in Bell’s history and one of the
largest in the rotorcraft industry. Similarly, Bell Helicopter continued
to collect customer letters of intent to purchase two new products
under development: the Bell 505 Jet Ranger X short light single
2015 Milestones
Moving with great speed, we
brought a number of new
products to market in 2015 so
our customers can accomplish
Certification and first deliveries
of Citation Latitude
Introduction of 407GXP
Introduction of Jacobsen
ProSeriesTM
Completion of COMMANDO
vehicles for Afghan
National Army
First international customer
for the V-22
great things—in the air, on the
ground and on the battlefield—
and backed it up with outstanding
sales support and service.
helicopter, scheduled to be certified and delivered in 2016, and the
Bell 525 Relentless super-medium commercial helicopter, expected
to achieve certification in 2017.
The success of the V-22 Osprey tiltrotor, which has amassed more
than 300,000 flight hours, continues to drive new orders. Japan
became the V-22’s first international customer with an agreement
to purchase five aircraft, while the U.S. Navy announced its plans
to procure 44 V-22s for its Carrier Onboard Delivery program.
Building on the success of the V-22, our V-280 development program
continues to make progress. In addition to starting initial assembly
of the aircraft, our teams developed a simulator that allows potential
customers to experience this next-generation tiltrotor at military
tradeshows and other venues. The V-280 demonstrator aircraft
is preparing for first flight in 2017 as part of the U.S. Department
of Defense’s Future Vertical Lift/Joint Multi-Role technology
demonstration program.
In August, customers began taking delivery of the new Citation
Latitude. This is the fifth Citation jet to be certified during an
18-month period, demonstrating the rapid pace of Textron Aviation’s
product development program. Textron Aviation continues to
invest in larger business jets as the Citation Longitude prepares for
its first flight in 2016 and is expected to enter into service in 2017.
Rounding out the Citation family of jets in the large-cabin segment
is the Hemisphere, targeting first flight in 2019. Textron Aviation
also announced the development of a new, clean-sheet single engine
turboprop aircraft that is expected to have a range of more than
1,500 nautical miles and speeds higher than 280 knots.
First dual FAA and EASA
qualification for TRU’s B757
Full Flight Simulator
As production continued on the first two craft as part of the
Ship to Shore Connector program at Textron Systems Marine &
Land Systems, the U.S. Navy ordered an additional two units
as part of an $84 million contract option. The first two units are
scheduled for completion in 2017 and 2018. Our Aerosond Small
Unmanned Aircraft System fee-for-service program performed
well and continued to grow. Four new sites were added to our
U.S. Department of Defense contract, while flight hours per month
increased at all of our sites around the world and surpassed a
total of 120,000 flight hours.
TRU Simulation + Training won significant new contracts and
regulatory approvals as it continued to establish strong relationships
with customers and grow its business globally. Among the notable
successes was a contract with Lufthansa Flight Training for an Airbus
A350 FFS X Level D full motion flight simulator, representing TRU’s
first venture to meet the flight training solution needs for this new
generation of wide body aircraft. Also, TRU Flight Training Iceland,
a joint venture with Icelandair, earned FAA qualification of its Boeing
757 Level D Full Flight Simulator, the first with regulatory approval
from the FAA and the European Aviation Safety Agency.
Building on the technology of its Dixie Chopper business, Jacobsen
launched a new line of zero-turn mowers to expand its business
beyond golf to reach professional landscapers. Textron Specialized
Vehicles updated its popular E-Z-GO RXV golf car to include new
styling and greater comfort and amenities, and introduced a new
Cushman Hauler 72-volt electric utility vehicle and the Gasoline
Hauler 4x4. Greenlee Communications launched its AirScout for
technicians to more easily survey a home or business for Wi-Fi
TEXTRON 2015 ANNUAL REPORT
3
Looking Forward
We have many exciting
milestones ahead. Having a
continuous pipeline of new
products means there are always
First deliveries of Canadian
TAPV (targeted for 2016)
Certification and first deliveries First flight of Citation Longitude
(targeted for 2016)
of the 505 Jet Ranger X
(targeted for 2016)
First craft completed for
Ship to Shore Connector
program (targeted for 2017)
Certification and first deliveries First flight of Citation
of the 525 Relentless (targeted Hemisphere (targeted
for 2019)
for 2017)
a number of “firsts”— from first
flights to first deliveries. Rapidly
developing new products is
central to our growth strategy.
performance. In June, Kautex began production of the first all-plastic
pressurized fuel tank for hybrid vehicles. These tanks use patented
plastic reinforcements between the tank’s bottom and top, as
opposed to metal straps, to reduce weight and costs. The design
is a first in the industry.
Building on our acquisitions
In 2015, we made strategic acquisitions to continue expanding our
businesses’ range of products and services. In January, Textron
Specialized Vehicles acquired Douglas Equipment, an aviation
ground support equipment (GSE) business in the United Kingdom.
This acquisition built on the acquisition in the previous year of
TUG Technologies, strengthening our presence in this industry
and complementing our aviation businesses. In February, Textron
Aviation acquired an aircraft interiors business, giving us the
capabilities to design and build interior components for our Citation
and King Air aircraft to ensure that we’re giving our customers the
highest quality features and to improve on-time manufacturing
performance. 2015 marked the first full year of the Beechcraft and
Cessna integration, and the business continued to successfully
generate operational efficiencies that benefit our company as well
as our customers.
Growing our presence around the world to
serve customers
As we grow globally, we’ve enhanced our capacity to engage with
customers before, during and after the sale. Over the past year,
we’ve opened sales offices and training facilities in new locations
and enhanced our service to customers where we already have a
4
TEXTRON 2015 ANNUAL REPORT
presence. Bell Helicopter opened regional sales offices in Tokyo
and Mexico City and partnered with Textron Systems to open an
office in Abu Dhabi. Our ProFlight business, acquired in 2014 by
TRU Simulation + Training to meet the needs of our customers for
advanced pilot and maintenance training, opened a second training
facility in Tampa. Meanwhile, TRU is better serving the needs
of avionics technicians and aircraft mechanics with the opening
in October of a new Aviation Maintenance Training Academy on
Textron Aviation’s Mid-Continent campus in Wichita. Over the past
year, Textron Aviation’s 21 company-operated service centers
have received certifications to expand their capabilities and service
Beechcraft, Cessna and Hawker customers. This represents another
way we are building and growing our relationships with customers.
In addition, the company tripled the size of its Paris Service Center
at Paris-Le Bourget Airport.
On course for profitable growth
Our solid financial results in 2015 were based on following through
on our strategy: developing new products, expanding our markets,
enhancing our sales channels and strategically acquiring new
businesses. As we enter 2016, we are continuing to make the
investments in our products, processes and people that will
drive growth for the year ahead and beyond.
Scott C. Donnelly
Chairman and Chief Executive Officer
Leadership
Board of Directors
Scott C. Donnelly (1)
Chairman, President and CEO
Textron Inc.
Ivor J. Evans (2) (3)
Lord Powell of Bayswater
KCMG (3) (4)
Executive Chairman
Meritor, Inc.
President and CEO (Retired)
NatureWorks LLC
Chairman and CEO (Retired)
Citizens Financial Group, Inc.
Lawrence K. Fish (3) (4)
Former Private Secretary and
Advisor on Foreign Affairs and
Defense to Prime Ministers
Margaret Thatcher and
John Major
R. Kerry Clark (1) (2) (5)
Paul E. Gagné (2) (4)
Lloyd G. Trotter (1) (4)
Kathleen M. Bader (1) (3)
Chairman and CEO (Retired)
Cardinal Health, Inc.
Chairman
Wajax Corporation
James T. Conway
Dain M. Hancock
(2) (3)
General (Retired)
U.S. Marine Corps
Executive Officers
Scott C. Donnelly
Chairman, President and CEO
Textron Inc.
Frank T. Connor
Executive Vice President and
Chief Financial Officer
Textron Inc.
Cheryl H. Johnson
Managing Partner
GenNx 360 Capital Partners
(2) (4)
Executive Vice President
(Retired)
Lockheed Martin Corporation
Segment and
Business Unit
Presidents
Scott A. Ernest
President and CEO
Textron Aviation
J. Scott Hall
President and CEO
Industrial Segment and
Greenlee
Kevin P. Holleran
Executive Vice President,
Human Resources
Textron Inc.
President and CEO
Textron Specialized Vehicles
E. Robert Lupone
President and CEO
Textron Systems Segment
Executive Vice President,
General Counsel and Secretary
Textron Inc.
Ellen M. Lord
R. Danny Maldonado
President and CEO
Textron Financial Corporation
Vicente Perez
President and CEO
Kautex
Mitch Snyder
President and CEO
Bell Helicopter
Ian K. Walsh
President and CEO
TRU Simulation + Training Inc.
James L. Ziemer (2) (4)
President and CEO (Retired)
Harley-Davidson, Inc.
Numbers Indicate Committee
Memberships:
(1) Executive Committee:
Chair, Scott C. Donnelly
(2) Audit Committee:
Chair, R. Kerry Clark
(3) Nominating and Corporate
Governance Committee:
Chair, Kathleen M. Bader
(4) Organization and Compensation
Committee:
Chair, Lloyd G. Trotter
(5) Lead Director:
R. Kerry Clark
Corporate Officers
Mark S. Bamford
Thomas N. Nichipor
Julie G. Duffy
Elizabeth C. Perkins
Dana L. Goldberg
Robert O. Rowland
Vice President and
Corporate Controller
Textron Inc.
Vice President and Deputy
General Counsel – Litigation
Textron Inc.
Vice President – Tax
Textron Inc.
Scott P. Hegstrom
Vice President – Mergers &
Acquisitions
Textron Inc.
Mary F. Lovejoy
Vice President and Treasurer
Textron Inc.
Paul Mc Gartoll
Vice President – Strategy and
Business Development
Textron Inc.
.
Vice President – Textron
Audit Services
Textron Inc.
Vice President and
Deputy General Counsel
Textron Inc.
Senior Vice President –
Washington Operations
Textron Inc.
Diane K. Schwarz
Vice President and
Chief Information Officer
Textron Inc.
Cathy A. Streker
Vice President –
Human Resources
Textron Inc.
Douglas R. Wilburne
Vice President –
Investor Relations
Textron Inc.
David Withers
President and CEO
Jacobsen
TEXTRON 2015 ANNUAL REPORT
5
FOOTNOTE TO SELECTED YEAR-OVER-YEAR FINANCIAL DATA
We 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. Free cash flow is a measure generally used by investors, analysts and management
to gauge a company’s ability to generate cash from operations in excess of that necessary to be reinvested to sustain and grow the
business and fund its obligations.
1
Our definition of Manufacturing Cash Flow Before Pension Contributions adjusts net cash from operating activities of continuing
operations for the Manufacturing group for dividends received from TFC, capital contributions provided under the Support Agreement and
debt agreements, capital expenditures, proceeds from the sale of property, plant and equipment and contributions to our pension plans.
We believe that our calculation provides a relevant measure of liquidity and is a useful basis for assessing our ability to fund operations
and obligations. This measure may not be comparable with similarly titled measures reported by other companies, as there is no definitive
accounting standard on how the measure should be calculated. A reconciliation of net cash from operating activities of continuing
operations for the Manufacturing group as presented in our Consolidated Statement of Cash Flows to Manufacturing Cash Flow Before
Pension Contributions is provided below:
(In Millions)
6
20152014
Net cash provided by operating activities of continuing operations for the Manufacturing group—GAAP
Less: Capital expenditures
Dividends received from TFC Plus: Total pension contributions
Proceeds from the sale of property, plant and equipment
$1,038
$1,097 (420)
(429)
(63)
—
68
76 89
Manufacturing Cash Flow Before Pension Contributions—Non-GAAP
$ 631
TEXTRON 2015 ANNUAL REPORT
$ 753
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
>[@ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended January 2, 2016
RU
>@ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from
to
.
Commission File Number 1-5480
Textron Inc.
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Textron Inc.
Index to Annual Report on Form 10-K
For the Fiscal Year Ended January 2, 2016
PART I
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PART I
Item 1. Business
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PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities
The principal market on which our common stock is traded is the New York Stock Exchange under the symbol “TXT.” At
January 2, 2016, there were approximately 10,000 record holders of Textron common stock. The high and low sales prices per
share of our common stock as reported on the New York Stock Exchange and the dividends paid per share are provided in the
following table:
2015
First quarter
Second quarter
Third quarter
Fourth quarter
$
High
Low
45.61
46.93
44.98
43.93
$ 40.95
42.97
32.20
38.18
2014
Dividends
per Share
$
0.02
0.02
0.02
0.02
$
High
Low
40.18
40.93
39.03
44.23
$ 34.28
36.96
35.54
32.28
Dividends
per Share
$
0.02
0.02
0.02
0.02
Issuer Repurchases of Equity Securities
The following provides information about our fourth quarter 2015 repurchases of equity securities that are registered pursuant to
Section 12 of the Securities Exchange Act of 1934, as amended:
Total
Number of
Shares
Purchased (1)
Period (shares in thousands)
October 4, 2015 – November 7, 2015
November 8, 2015 – December 5, 2015
December 6, 2015 – January 2, 2016
Total
208
—
—
208
Average Price
Paid per Share
(excluding
commissions)
$
$
Maximum
Number of Shares
that may yet be
Purchased under
the Plan
Total Number of
Shares Purchased as
part of Publicly
Announced Plan (1)
37.63
—
—
37.63
208
—
—
208
10,882
10,882
10,882
(1) These shares were purchased pursuant to a plan authorizing the repurchase of up to 25 million shares of Textron common stock that had
been announced on January 23, 2013. This plan has no expiration date.
Stock Performance Graph
The following graph compares the total return on a cumulative basis at the end of each year of $100 invested in our common stock
on December 31, 2010 with the Standard & Poor’s (S&P) 500 Stock Index, the S&P 500 Aerospace & Defense (A&D) Index and
the S&P 500 Industrials Index, all of which include Textron. The values calculated assume dividend reinvestment.
2010
Textron Inc.
S&P 500
S&P 500 A&D
S&P 500 Industrials
$ 100.00
100.00
100.00
100.00
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2011
2012
2013
2014
2015
78.53
102.11
105.28
105.43
$ 105.62
118.45
120.61
120.98
$ 157.05
156.82
186.85
159.26
$ 180.27
178.29
208.21
178.94
$ 180.18
180.75
219.52
184.13
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Item 6. Selected Financial Data
Dollars in millions, except per share amounts
Revenues
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2011
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Segment profit includes amortization of $12 million and $63 million in 2015 and 2014, respectively, related to fair value step-up adjustments of Beechcraft
acquired inventories sold during the period.
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For 2011, segment profit includes a $186 million initial mark-to-market adjustment for finance receivables in the Golf Mortgage portfolio that were
transferred to the held for sale classification.
(c)
Acquisition and restructuring costs are related to the acquisition of Beech Holdings, LLC, the parent of Beechcraft Corporation, which was completed on
March 14, 2014.
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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview and Consolidated Results of Operations
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2013
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Foreign Currency Exchange Risks
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Item 8. Financial Statements and Supplementary Data
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Consolidated Statements of Cash Flows
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Consolidated
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100
498
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389
86
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69
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90
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Consolidated Statements of Cash Flows continued
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Principal payments on long-term and nonrecourse debt
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Purchases of Textron common stock
Settlement of convertible notes
Proceeds from settlement of capped call
Proceeds from exercise of stock options
Dividends paid
Intergroup financing
Other financing activities, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and equivalents
Net increase (decrease) in cash and equivalents
Cash and equivalents at beginning of year
Cash and equivalents at end of year
2015
$
$
2014
Finance Group
2013
2015
$
14
—
14
2014
$
15
—
15
2013
683 $
(1)
684
585 $
(5)
590
470
—
470
$
28
—
28
449
14
97
446
(7)
86
371
51
86
12
(10)
9
13
(12)
14
18
35
(25)
(14)
(241)
(40)
43
(144)
69
62
63
(4)
1,038
(4)
1,034
56
(168)
(18)
(228)
316
46
(17)
—
(5)
1,097
(3)
1,094
(118)
(135)
(41)
65
(171)
21
(119)
175
3
658
(3)
655
—
—
4
—
(8)
—
9
—
—
30
—
30
—
—
(15)
—
(5)
—
(5)
—
—
5
—
5
—
—
—
—
(21)
(4)
35
—
—
66
—
66
(420)
(81)
—
—
—
5
(496)
(429)
(1,628)
—
—
—
(8)
(2,065)
(444)
(196)
—
—
—
16
(624)
—
—
351
(194)
38
2
197
—
—
456
(215)
43
(29)
255
—
—
675
(271)
178
42
624
(256)
61
—
—
—
—
(63)
—
(1)
(259)
—
(32)
91
59 $
(345)
128
—
—
—
—
—
—
—
(217)
—
43
48
91 $
(743)
298
—
—
—
—
(175)
(57)
—
(677)
—
13
35
48
(100)
—
(219)
—
—
32
(22)
—
1
(308)
(15)
215
731
946 $
(559)
1,439
(340)
—
—
50
(28)
—
(10)
552
(13)
(432)
1,163
731 $
(313)
150
—
(215)
75
31
(22)
57
(3)
(240)
(6)
(215)
1,378
1,163 $
See Notes to the Consolidated Financial Statements.
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Notes to the Consolidated Financial Statements
Note 1. Summary of Significant Accounting Policies
Principles of Consolidation and Financial Statement Presentation
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(In millions, except per share amounts)
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2013
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Goodwill
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Textron
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(In millions)
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Intangible Assets
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(Dollars in millions)
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Period (in years)
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Accumulated
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Net
Gross
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Amount
Accumulated
Amortization
Net
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Accounts Receivable
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(In millions)
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Finance Receivables
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(In millions)
January 2,
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Finance Receivable Portfolio Quality
Credit Quality Indicators and Nonaccrual Finance Receivables
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Impaired Loans
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(In millions)
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2016
January 3,
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Allowance for Losses
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(In millions)
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January 3,
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Note 4. Inventories
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(In millions)
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January 2,
2016
January 3,
2015
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Note 5. Property, Plant and Equipment, Net
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(Dollars in millions)
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Useful Lives
(in years)
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January 2,
2016
January 3,
2015
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Note 6. Accrued Liabilities
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(In millions)
January 2,
2016
January 3,
2015
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(In millions)
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2015
2014
2013
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Note 7. Debt and Credit Facilities
2XUGHEWLVVXPPDUL]HGLQWKHWDEOHEHORZ
(In millions)
Manufacturing group
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(a)
(b)
January 2,
2016
January 3,
2015
²
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Notes are secured by finance receivables as described in Note 3.
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(In millions)
0DQXIDFWXULQJJURXS
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2016
2017
2018
2019
2020
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Support Agreement
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Note 8. Derivative Instruments and Fair Value Measurements
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Assets and Liabilities Not Recorded at Fair Value
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Capital Stock
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2013
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Note 10. Share-Based Compensation
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Units Payable in Cash
WeightedNumber of
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Units
Date Fair Value
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2014
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Performance Share Units
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Quarterly Data
2015
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(a) Includes amortization of $5 million, $6 million and $1 million for the first, second, and third quarters of 2015, respectively, and $12 million, $33 million, $10
million and $8 million for the first, second, third and fourth quarters of 2014, respectively, related to fair value step-up adjustments of Beechcraft acquired
inventories sold during the periods.
(b)
Acquisition and restructuring costs include restructuring costs of $5 million, $20 million, $3 million and $13 million for the first, second, third and fourth
quarters of 2014, respectively, related to the acquisition of Beech Holdings, LLC, the parent of Beechcraft Corporation, which was completed on March 14,
2014. Transaction costs of $11 million related to the Beechcraft acquisition are also included in the first quarter of 2014.
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Schedule II — Valuation and Qualifying Accounts
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Corporate Information
CORPORATE HEADQUARTERS
INVESTOR RELATIONS
Textron Inc.
Textron Inc.
40 Westminster Street
Providence, RI 02903
(401) 421-2800
Investor Relations
40 Westminster Street
Providence, RI 02903
www.textron.com
Investor Relations phone line:
ANNUAL MEETING
Textron’s annual meeting of shareholders will be held
on Wednesday, April 27, 2016, at 11 a.m.
at Textron Inc., 40 Westminster Street, 18th Floor,
Providence, RI 02903.
TRANSFER AGENT, REGISTRAR AND
DIVIDEND PAYING AGENT
For shareholder services such as change of address,
lost certificates or dividend checks, change in registered
ownership or the Dividend Reinvestment Plan, write or call:
American Stock Transfer & Trust Company, LLC
Operations Center
6201 15th Avenue
Brooklyn, NY 11219
phone: (866) 621-2790
email: info@amstock.com
STOCK EXCHANGE INFORMATION
(Symbol: TXT)
Textron common stock is listed on the New York
Stock Exchange.
(401) 457-2288
News media phone line:
(401) 457-2362
For more information, visit our website at www.textron.com.
COMPANY PUBLICATIONS AND GENERAL
INFORMATION
To receive a copy of Textron’s Forms 10-K and 10-Q, Proxy
Statement or Annual Report without charge, visit our website at
www.textron.com or send a written request to Textron Investor
Relations at the address listed above. For the most recent
company news and earnings press releases, visit our website
at www.textron.com.
Textron is an Equal Opportunity Employer.
TEXTRON BOARD OF DIRECTORS
To contact the Textron Board of Directors or to report concerns
or complaints about accounting, internal accounting controls or
auditing matters, you may write to Board of Directors,
Textron Inc., 40 Westminster Street, Providence, RI 02903;
call (866) 698-6655 or (401) 457-2269; or send an email to
textrondirectors@textron.com.
40 Westminster Street
Providence, RI 02903
(401) 421-2800
www.textron.com
© 2016 TEXTRON INC.