EX-99 3 ninenine.htm EXHIBIT 99-2

EXHIBIT 99

TEXTRON INC.
REVENUE AND INCOME BY BUSINESS SEGMENT
RECAST TO REFLECT OMNIQUIP AS A DISCONTINUED OPERATION
(Dollars in millions, except per share amounts)
(Unaudited)

 

AS REPORTED UNDER GAAP
   

2003

  

2002

Revenues

  

Q2

  

Q1

  

FY

  

Q4

  

Q3

  

Q2

  

Q1

Bell

$

616

$

536

$

2,235

$

625

$

526

$

593

$

491

Cessna

  

575

  

588

  

3,175

  

896

  

745

  

857

  

677

Fastening Systems

  

447

  

429

  

1,650

  

412

  

411

  

431

  

396

Industrial (a)

  

750

  

706

  

2,706

  

701

  

647

  

705

  

653

     Total Manufacturing

  

2,388

  

2,259

  

9,766

  

2,634

  

2,329

  

2,586

  

2,217

Finance

  

155

  

151

  

630

  

181

  

156

  

148

  

145

     Total revenues

$

2,543

$

2,410

$

10,396

$

2,815

$

2,485

$

2,734

$

2,362

Segment Operating Profit

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Bell

$

56

$

40

$

169

$

67

$

33

$

45

$

24

Cessna

  

66

  

59

  

376

  

94

  

84

  

121

  

77

Fastening Systems

  

21

  

18

  

72

  

20

  

21

  

21

  

10

Industrial (a)

  

40

  

34

  

163

  

55

  

36

  

32

  

40

     Total Manufacturing

  

183

  

151

  

780

  

236

  

174

  

219

  

151

Finance

  

26

  

23

  

117

  

47

  

19

  

29

  

22

Segment profit (b),(c)

  

209

  

174

  

897

  

283

  

193

  

248

  

173

Special charges (b),(d)

  

(24)

  

(28)

  

(135)

  

(68)

  

(33)

  

(20)

  

(14)

Segment operating income

  

185

  

146

  

762

  

215

  

160

  

228

  

159

Gain on sale of businesses

  

-

  

15

  

25

  

-

  

-

  

25

  

-

Goodwill amortization (c)

  

-

  

-

  

-

  

-

  

-

  

-

  

-

Corporate expenses and other, net

  

(30)

  

(32)

  

(114)

  

(28)

  

(26)

  

(31)

  

(29)

Interest expense, net

  

(22)

  

(24)

  

(108)

  

(23)

  

(30)

  

(25)

  

(30)

Income (loss) from      continuing operations
     before income taxes and distributions on
     preferred security trusts





133





105





565





164





104





197





100

Income taxes (a),(d)

  

(40)

  

(32)

  

(172)

  

(48)

  

(23)

  

(69)

  

(32)

Distribution on preferred securities of
     manufacturing subsidiary trusts, net of
     income taxes





(7)





(6)





(26)





(7)





(6)





(7)





(6)

Income (loss) from continuing operations

  

86

  

67

  

367

  

109

  

75

  

121

  

62

Discontinued operations net of income
      taxes (a):

  


 


 


 


 


 


 


          Income (loss) from operations

  

(23)

  

(1)

  

(3)

  

22

  

(4)

  

(16)

  

(5)

          Gain on disposal

  

-

  

-

  

-

  

-

  

-

  

-

  

-

Cumulative effect of change in accounting
     principle, net of income taxes



-



-



(488)



-



-



-



(488)

Net income (loss)

$

63

$

66

$

(124)

$

131

$

71

$

105

$

(431)

EPS - diluted:

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Income (loss) from continuing operations

$

.63

$

.49

$

2.61

$

.78

$

.55

$

.85

$

.44

Discontinued operations, net of income      taxes: (a)















          Income from operations

  

(.17)

  

(.01)

  

(.01)

  

.17

  

(.04)

  

(.11)

  

(.04)

          Gain on disposal

  

-

  

-

  

-

  

-

  

-

  

-

  

-

Cumulative effect of change in accounting
     principle, net of income taxes



-



-



(3.48)



-



-



-



(3.44)

Net income (loss)

$

.46

$

.48

$

(.88)

$

.95

$

.51

$

.74

$

3.04

Average shares outstanding (in thousands) -
     diluted (e)



136,257



137,059



140,252



138,362



139,145



141,599



141,961

 

TEXTRON INC.
REVENUE AND INCOME BY BUSINESS SEGMENT
RECAST TO REFLECT OMNIQUIP AS A DISCONTINUED OPERATION
(Dollars in millions, except per share amounts)
(Unaudited)
(continued)
 

AS REPORTED UNDER GAAP
   

2001

            
Revenues  

FY

   Q4

 

 Q3

 

 Q2

 

 Q1   2000   1999   1998

Bell

$

2,243

$

629

$

525

$

577

$

512

$

2,194

$

2,135

$

2,051

Cessna

  

3,043

  

933

  

698

  

791

  

621

  

2,814

  

2,472

  

1,949

Fastening Systems

  

1,679

  

373

  

389

  

451

  

466

  

1,996

  

2,059

  

1,758

Industrial (a)

  

4,330

  

998

  

937

  

1,201

  

1,194

  

4,894

  

4,585

  

3,749

     Total Manufacturing

  

11,295

  

2,933

  

2,549

  

3,020

  

2,793

  

11,898

  

11,251

  

9,507

Finance

  

709

  

196

  

178

  

164

  

171

  

691

  

463

  

367

     Total revenues

$

12,004

$

3,129

$

2,727

$

3,184

$

2,964

$

12,589

$

11,714

$

9,874

Segment Operating Profit

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Bell

$

93

$

38

$

(58)

$

55

$

58

$

264

$

226

$

204

Cessna

  

344

  

124

  

55

  

95

  

70

  

300

  

231

  

207

Fastening Systems

  

70

  

(16)

  

8

  

36

  

42

  

192

  

204

  

200

Industrial (a)

  

280

  

21

  

(2)

  

130

  

131

  

525

  

472

  

375

     Total Manufacturing

  

787

  

167

  

3

  

316

  

301

  

1,281

  

1,133

  

986

Finance

  

205

  

62

  

51

  

43

  

49

  

202

  

132

  

113

Segment profit (b),(c)

  

992

  

229

  

54

  

359

  

350

  

1,483

  

1,265

  

1,099

Special charges (b),(d)

  

(143)

  

(28)

  

(29)

  

(45)

  

(41)

  

(483)

  

(66)

  

(87)

Segment operating income

  

849

  

201

  

25

  

314

  

309

  

1,000

  

1,199

  

1,012

Gain on sale of businesses

  

342

  

339

  

3

  

-

  

-

  

-

  

-

  

97

Goodwill amortization (c)

  

(91)

  

(23)

  

(23)

  

(23)

  

(22)

  

(87)

  

(73)

  

(59)

Corporate expenses and other, net

  

(152)

  

(38)

  

(33)

  

(39)

  

(42)

  

(164)

  

(143)

  

(141)

Interest expense, net

  

(162)

  

(37)

  

(41)

  

(40)

  

(44)

  

(152)

  

(29)

  

(146)

Income (loss) from continuing
     operations before income taxes and
     distributions on preferred security
     trusts







786







442







(69)







212







201







597







954







763

Income taxes (a),(d)

  

(285)

  

(162)

  

21

  

(74)

  

(70)

  

(299)

  

(353)

  

(294)

Distribution on preferred securities
     of manufacturing subsidiary trusts,
     net of income taxes





(26)





(7)





(6)





(7)





(6)





(26)





(26)





(26)

Income (loss) from continuing
     operations



475



273

  


(54)



131



125



272



575



443

Discontinued operations net of
     income taxes (a):

















          Income (loss) from operations

  

(309)

  

(16)

  

(276)

  

(5)

  

(12)

  

5

  

5

  

165

          Gain on disposal

  

-

  

-

  

-

  

-

  

-

  

-

  

1,646

  

-

Cumulative effect of change in
     accounting principle, net of  income
     taxes





-





-





-





-





-





(59)





-





-

Net income (loss)

$

166

$

257

$

(330)

$

126

$

113

$

218

$

2,226

$

608

EPS - diluted:

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Income (loss) from continuing
     operations


$


3.32


$


1.92


$


(.39)


$


.91


$


.88


$


1.86


$


3.74


$


2.68

Discontinued operations, net of
     income taxes: (a)



(2.16)



(.11)



(1.95)



(.03)



(.09)



.04



.04



1.00

          Income from operations

  

-

  

-

  

-

  

-

  

-

  

-

  

10.70

  

-

          Gain on disposal

  

-

  

-

  

-

  

-

  

-

  

-

  

-

  

-

Cumulative effect of change in
     accounting principle, net of income
     taxes



-



-



-



-



-



(.41)



-



-

Net income (loss)

$

1.16

$

1.81

$

(2.34)

$

.88

$

.79

$

1.49

$

14.48

$

3.68

Average shares outstanding (in
     thousands) - diluted (e)



142,937



142,460



141,196



143,411



142,752



146,150



153,754



165,374

TEXTRON INC.
REVENUE AND INCOME BY BUSINESS SEGMENT
RECAST TO REFLECT OMNIQUIP AS A DISCONTINUED OPERATION
(Dollars in millions, except per share amounts)
(Unaudited)
(continued)

(a)     On August 1, 2003, Textron consummated the sale of its remaining OmniQuip business to JLG Industries, Inc. and has reclassified the financial results of the OmniQuip division as discontinued operations for accounting purposes. In 1999, Textron completed the sale of Avco Financial Services to Associates First Capital Corporation resulting in a $1.65 billion gain, net of income taxes, and the reclassification of $165 million, net of income taxes, to discontinued operations in 1998.

(b)     Textron adopted SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities", effective December 29, 2002. Upon adoption, costs related to restructuring that were previously recorded in segment profit are now included with severance costs, contract termination costs, and asset impairment write-downs in special charges. Costs related to restructuring that were recorded in segment profit in prior periods have been reclassified to special charges to conform to this presentation.

(c)     Pursuant to SFAS No. 142 "Goodwill and Other Intangible Assets", beginning on December 30, 2001, goodwill is no longer amortized. To reflect the adoption of this statement and the fact that management does not include amortization of goodwill in its internal evaluation of segment performance, the Company has recast its segment data for comparability by reclassifying goodwill amortization out of segment profit in prior periods.

(d)     In accordance with SFAS No. 145 "Rescission of FASB No. 4, 44 and 62, Amendment of FASB Statement No. 13, and Technical Corrections", Textron has reclassified the loss from early debt retirement from an extraordinary loss to a pre-tax loss reflected in operations with the tax benefit recorded in income taxes.

(e)     Assumes full conversion of outstanding preferred stock and exercise of options. The average share base for the third quarter 2001 excludes potentially dilutive common shares (convertible preferred stock and stock options). These shares are excluded due to their antidilutive effect.

TEXTRON INC.
REVENUE AND INCOME BY BUSINESS SEGMENT
RECAST TO REFLECT OMNIQUIP AS A DISCONTINUED OPERATION
(Dollars in millions, except per share amounts)
(Unaudited)
 

AS ADJUSTED*
    

  2003

  2002

Revenues

  

Q2

  

Q1

  

FY

  

Q4

  

Q3

  

Q2

  

Q1

Bell

$

616

$

536

$

2,235

$

625

$

526

$

593

$

491

Cessna

  

575

  

588

  

3,175

  

896

  

745

  

857

  

677

Fastening Systems

  

447

  

429

  

1,650

  

412

  

411

  

431

  

396

Industrial (a)

  

750

  

706

  

2,706

  

701

  

647

  

705

  

653

     Total Manufacturing

  

2,388

  

2,259

  

9,766

  

2,634

  

2,329

  

2,586

  

2,217

Finance

  

155

  

151

  

630

  

181

  

156

  

148

  

145

     Total revenues

$

2,543

$

2,410

$

10,396

$

2,815

$

2,485

$

2,734

$

2,362

Segment Operating Profit

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Bell

$

56

$

40

$

169

$

67

$

33

$

45

$

24

Cessna

  

66

  

59

  

376

  

94

  

84

  

121

  

77

Fastening Systems

  

21

  

18

  

72

  

20

  

21

  

21

  

10

Industrial (a)

  

40

  

34

  

163

  

55

  

36

  

32

  

40

     Total Manufacturing

  

183

  

151

  

780

  

236

  

174

  

219

  

151

Finance

  

26

  

23

  

117

  

47

  

19

  

29

  

22

Segment profit (b),(c)

  

209

  

174

  

897

  

283

  

193

  

248

  

173

Gain sale of businesses

  

-

  

-

  

-

  

-

  

-

  

-

  

-

Goodwill amortization (c)

  

-

  

-

  

-

  

-

  

-

  

-

  

-

Corporate expenses and other, net

  

(30)

  

(32)

  

(114)

  

(28)

  

(26)

  

(31)

  

(29)

Interest expense, net

  

(22)

  

(24)

  

(108)

  

(23)

  

(30)

  

(25)

  

(30)

Income (loss) from      continuing operations
     before income taxes and distributions on
     preferred security trusts





157





118





675





232





137





192





114

Income taxes (a)

  

(48)

  

(37)

  

(201)

  

(73)

  

(32)

  

(60)

  

(36)

Distribution on preferred securities of
     manufacturing subsidiary trusts, net of
     income taxes





(7)





(6)





(26)





(7)





(6)





(7)





(6)

Income (loss) from continuing operations

  

102

  

75

  

448

  

152

  

99

  

125

  

72

Discontinued operations net of income
      taxes (a):

  


 


 


 


 


 


 


          Income (loss) from operations

  

1

  

(1)

  

(26)

  

(7)

  

(4)

  

(9)

  

(6)

Net income (loss)

$

103

$

74

$

422

$

145

$

95

$

116

$

66

EPS - diluted:

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Income (loss) from continuing operations

$

.76

$

.54

$

3.19

$

1.10

$

.71

$

.88

$

.51

Discontinued operations (a):

  

 

  

 

  

 

  

 

  

 

  

 

  

 

          Income from operations

  

-

  

-

  

(.18)

  

(.06)

  

(.03)

  

(.06)

  

(.04)

Net income (loss)

$

.76

$

.54

$

3.01

$

1.04

$

.68

$

.82

$

.47

Average shares outstanding (in thousands) -
     diluted (d)



136,257



137,059



140,252



138,362



139,145



141,599



141,961

 

TEXTRON INC.
REVENUE AND INCOME BY BUSINESS SEGMENT
RECAST TO REFLECT OMNIQUIP AS A DISCONTINUED OPERATION
(Dollars in millions, except per share amounts)
(Unaudited)
(continued)
 

AS ADJUSTED*
 

   2001

             

Revenues

  

FY

  

Q4

  

Q3

  

Q2

  

Q1

  

2000

  

1999

  

1998

Bell

$

2,243

$

629

$

525

$

577

$

512

$

2,194

$

2,135

$

2,051

Cessna

  

3,043

  

933

  

698

  

791

  

621

  

2,814

  

2,472

  

1,949

Fastening Systems

  

1,679

  

373

  

389

  

451

  

466

  

1,996

  

2,059

  

1,758

Industrial (a)

  

4,330

  

998

  

937

  

1,201

  

1,194

  

4,894

  

4,585

  

3,749

     Total Manufacturing

  

11,295

  

2,933

  

2,549

  

3,020

  

2,793

  

11,898

  

11,251

  

9,507

Finance

  

709

  

196

  

178

  

164

  

171

  

691

  

463

  

367

     Total revenues

$

12,004

$

3,129

$

2,727

$

3,184

$

2,964

$

12,589

$

11,714

$

9,874

Segment Operating Profit

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Bell

$

93

$

38

$

(58)

$

55

$

58

$

264

$

226

$

204

Cessna

  

344

  

124

  

55

  

95

  

70

  

300

  

231

  

207

Fastening Systems

  

70

  

(16)

  

8

  

36

  

42

  

192

  

204

  

200

Industrial (a)

  

280

  

21

  

(2)

  

130

  

131

  

525

  

472

  

375

     Total Manufacturing

  

787

  

167

  

3

  

316

  

301

  

1,281

  

1,133

  

986

Finance

  

205

  

62

  

51

  

43

  

49

  

202

  

132

  

113

Segment profit (b),(c)

  

992

  

229

  

54

  

359

  

350

  

1,483

  

1,265

  

1,099

Gain on sale of businesses

  

3

  

-

  

3

  

-

  

-

  

-

  

-

  

-

Goodwill amortization (c)

  

(91)

  

(23)

  

(23)

  

(23)

  

(22)

  

(87)

  

(73)

  

(59)

Corporate expenses and other, net

  

(152)

  

(38)

  

(33)

  

(39)

  

(42)

  

(164)

  

(143)

  

(141)

Interest expense, net

  

(162)

  

(37)

  

(41)

  

(40)

  

(44)

  

(152)

  

(29)

  

(146)

Income (loss) from continuing
     operations before income taxes and
     distributions on preferred security
     trusts







590







131







(40)







257







242







1,080







1,020







753

Income taxes (a)

  

(204)

  

(44)

  

14

  

(90)

  

(84)

  

(379)

  

(376)

  

(284)

Distribution on preferred securities
     of manufacturing subsidiary trusts,
     net of income taxes





(26)





(7)





(6)





(7)





(6)





(26)





(26)





(26)

Income (loss) from continuing
     operations



360



80

  


(32)



160



152



675



618



443

Discontinued operations net of
     income taxes (a):

















          Income (loss) from operations

  

(28)

  

(13)

  

(3)

  

(3)

  

(9)

  

5

  

5

  

165

Net income (loss)

$

332

$

67

$

(35)

$

157

$

143

$

680

$

623

$

608

EPS - diluted:

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Income (loss) from continuing
     operations


$


2.52


$


.56


$


(.23)


$


1.12


$


1.06


$


4.62


$


4.01


$


2.68

Discontinued operations (a):

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

          Income from operations

  

(.20)

  

(.09)

  

(.02)

  

(.02)

  

(.06)

  

.03

  

.04

  

1.00

Net income (loss)

$

2.32

$

.47

$

(.25)

$

1.10

$

1.00

$

4.65

$

4.05

$

3.68

Average shares outstanding (in
     thousands) - diluted (d)



142,937



142,460



141,196



143,411



142,752



146,150



153,754



165,374

(a)     On August 1, 2003, Textron consummated the sale of its remaining OmniQuip business to JLG Industries, Inc. and has reclassified the financial results of the OmniQuip division as discontinued operations for accounting purposes. In 1999, Textron completed the sale of Avco Financial Services to Associates First Capital Corporation resulting in a $1.65 billion gain, net of income taxes, and the reclassification of $165 million, net of income taxes, to discontinued operations in 1998.

(b)     Textron adopted SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities", effective December 29, 2002. Upon adoption, costs related to restructuring that were previously recorded in segment profit are not included with severance costs, contract termination costs, and asset impairment write-downs in special charges. Costs related to restructuring that were recorded in segment profit in prior periods have been reclassified to special charges to conform to this presentation.

(c)     Pursuant to SFAS No. 142 "Goodwill and Other Intangible Assets", beginning on December 30, 2001, goodwill is not longer amortized. To reflect the adoption of this statement and the fact that management does not include amortization of goodwill in its internal evaluation of segment performance, the Company has recast its segment data for comparability by reclassifying goodwill amortization out of segment profit in prior periods.

(d)     Assumes full conversion of outstanding preferred stock and exercise of options. The average share base for the third quarter 2001 excludes potential dilutive common shares (convertible preferred stock and stock options). These shares are excluded due to their antidilutive effect.

*     The "As Adjusted" amounts exclude items recorded in special charges, the gain (loss) on sale of significant businesses and the cumulative effect of changes in accounting principle. Textron presents its results "as adjusted", before restructuring and other special items, because such items are outside normal business operations, as well as difficult to forecast accurately for specific periods. Such items are either isolated or temporary in nature; therefore, it is helpful to understand results without these items, especially when comparing results for previous periods or forecasting performance in future periods. In addition, Textron utilizes "as adjusted" results to measure management performance for management compensation purposes. Any analysis of results before restructuring costs and other special items should be used only in conjunction with data presented in accordance with Generally Accepted Accounting Principles (GAAP). The accompanying reconciliation of GAAP measures to non-GAAP measures contains the reconciliations of income and EPS.

TEXTRON INC.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(Dollars in millions, except per share amounts)
(Unaudited)
   

  2003

  

  2002
   

Q2

  

Q1

  

FY

  

Q4

  

Q3

  

Q2

  

Q1

Income Reconciliation

                            

GAAP, Net income (loss)

$

63

$

66

$

(124)

$

131

$

71

$

105

$

(431)
   

 

  

 

  

 

  

 

  

 

  

 

  

 

Discontinued operations

  

23

  

1

  

3

  

(22)

  

4

  

16

  

5

Cumulative effect of change in accounting
     principle



-



-



488



-



-



-



488

Income (loss) from continuing operations

$

86

$

67

$

367

$

109

$

75

$

121

$

62

Adjustments, net of income tax:

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Net gain on sale of businesses

  

-

  

(12)

  

(9)

  

-

  

-

  

(9)

  

-

Special charges, net

  

16

  

20

  

90

  

43

  

24

  

13

  

10

Income (loss) from continuing operations,
     as adjusted


$


102


$


75


$


448


$


152


$


99


$


125


$


72

Income (loss) from discontinued operations,
     as adjusted



1



(1)



(26)



(7)



(4)



(9)



(6)

Net income (loss), as adjusted

$

103

$

74

$

422

$

145

$

95

$

116

$

66
   

 

  

 

  

 

  

 

  

 

  

 

  

 

EPS Reconciliation

  

 

  

 

  

 

  

 

  

 

  

 

  

 

GAAP EPS

$

.46

$

.48

$

(.88)

$

.95

$

.51

$

.74

$

(3.04)
   

 

  

 

  

 

  

 

  

 

  

 

  

 

Discontinued operations

  

.17

  

.01

  

.01

  

(.17)

  

.04

  

.11

  

.04

Cumulative effect of change in accounting
     principle



-



-



3.48



-



-



-



3.44

Income (loss) from continuing operations

$

.63

$

.49

$

2.61

$

.78

$

.55

$

.85

$

.44

Adjustments, net of income tax:

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Net gain on sale of businesses

  

-

  

(.09)

  

(.06)

  

-

  

-

  

(.06)

  

-

Special charges, net

  

.13

  

.14

  

.64

  

.32

  

.16

  

.09

  

.07

Loss on debt retirement

  

-

  

-

  

-

  

-

  

-

  

-

  

-

Income (loss) from continuing operations,
     as adjusted


$


.76


$


.54


$


3.19


$


1.10


$


.71


$


.88


$


.51

Income (loss) from discontinued operations,
     as adjusted



-



-



(.18)



(.06)



(.03)



(.06)



(.04)

Net income (loss), as adjusted

$

.76

$

.54

$

3.01

$

1.04

$

.68

$

.82

$

.47

 

TEXTRON INC.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(Dollars in millions, except per share amounts)
(Unaudited)
(continued)
 

2001

            
   

FY

  

Q4

  

Q3

  

Q2

  

Q1

  

2000

  

1999

  

1998

Income Reconciliation

                                

GAAP, Net income (loss)

$

166

$

257

$

(330)

$

126

$

113

$

218

$

2,226

$

608
   

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Discontinued operations

  

309

  

16

  

276

  

5

  

12

  

(5)

  

(1,651)

  

(165)

Cumulative effect of change in
     accounting principle



-



-



-



-



-



59



-



-

Income (loss) from continuing
     operations


$


475


$


273


$


(54)


$


131


$


125


$


272


$


575


$


443

Adjustments, net of income tax:

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Net gain on sale of businesses

  

-

  

-

  

-

  

-

  

-

  

-

  

-

  

(54)

Special charges, net

  

(115)

  

(193)

  

22

  

29

  

27

  

403

  

43

  

54

Income (loss) from continuing
     operations, as adjusted


$


360


$


80


$


(32)


$


160


$


152


$


675


$


618


$


443

Income (loss) from discontinued
     operations, as adjusted



(28)



(13)



(3)



(3)



(9)



5



5



165

Net income (loss), as adjusted

$

332

$

67

$

(35)

$

157

$

143

$

680

$

623

$

608
   

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

EPS Reconciliation

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

GAAP EPS

$

1.16

$

1.81

$

(2.34)

$

.88

$

.79

$

1.49

$

14.48

$

3.68
   

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Discontinued operations

  

2.16

  

.11

  

1.95

  

.03

  

.09

  

(.04)

  

(10.74)

  

(1.00)

Cumulative effect of change in
     accounting principle



-



-



-



-



-



.41



-



-

Income (loss) from continuing
     operations


$


3.32


$


1.92


$


(.39)


$


.91


$


.88


$


1.86


$


3.74


$


2.68

Adjustments, net of income tax:

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Net gain on sale of businesses

  

(1.46)

  

(1.47)

  

-

  

-

  

-

  

-

  

-

  

(.32)

Special charges, net

  

.66

  

.11

  

.16

  

.21

  

.18

  

2.76

  

.27

  

.32

Income (loss) from continuing
     operations, as adjusted


$


2.52


$


.56


$


(.23)


$


1.12


$


1.06


$


4.62


$


4.01


$


2.68

Income (loss) from discontinued
     operations, as adjusted



(.20)



(.09)



(.02)



(.02)



(.06)



.03



.04



1.00

Net income (loss), as adjusted

$

2.32

$

.47

$

(.25)

$

1.10

$

1.00

$

4.65

$

4.05

$

3.68

TEXTRON INC.
REVENUE AND INCOME BY BUSINESS SEGMENT
RECAST TO REFLECT OMNIQUIP AS A DISCONTINUED OPERATION
(Dollars in millions, except per share amounts)
(Unaudited)
 

SEGMENT PROFIT MARGIN
 

2003

  

2002
   

Q2

  

Q1

  

FY

  

Q4

  

Q3

  

Q2

  

Q1

Revenues

                            

Bell

$

616

$

536

$

2,235

$

625

$

526

$

593

$

491

Cessna

  

575

  

588

  

3,175

  

896

  

745

  

857

  

677

Fastening Systems

  

447

  

429

  

1,650

  

412

  

411

  

431

  

396

Industrial (a)

  

750

  

706

  

2,706

  

701

  

647

  

705

  

653

     Total Manufacturing

  

2,388

  

2,259

  

9,766

  

2,634

  

2,329

  

2,586

  

2,217

Finance

  

155

  

151

  

630

  

181

  

156

  

148

  

145

     Total revenues

$

2,543

$

2,410

$

10,396

$

2,815

$

2,485

$

2,734

$

2,362

Segment Operating Profit

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Bell

$

56

$

40

$

169

$

67

$

33

$

45

$

24

Cessna

  

66

  

59

  

376

  

94

  

84

  

121

  

77

Fastening Systems

  

21

  

18

  

72

  

20

  

21

  

21

  

10

Industrial

  

40

  

34

  

163

  

55

  

36

  

32

  

40

     Total Manufacturing

  

183

  

151

  

780

  

236

  

174

  

219

  

151

Finance

  

26

  

23

  

117

  

47

  

19

  

29

  

22

     Segment profit

$

209

$

174

$

897

$

283

$

193

$

248

$

173
   

 

  

 

  

 

  

 

  

 

  

 

  

 

Segment Profit Margin

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Bell

  

9.1%

  

7.5%

  

7.6%

  

10.7%

  

6.3%

  

7.6%

  

4.9%

Cessna

  

11.5%

  

10.0%

  

11.8%

  

10.5%

  

11.3%

  

14.1%

  

11.4%

Fastening Systems

  

4.7%

  

4.2%

  

4.4%

  

4.9%

  

5.1%

  

4.9%

  

2.5%

Industrial

  

5.3%

  

4.8%

  

6.0%

  

7.8%

  

5.6%

  

4.5%

  

6.1%

     Total Manufacturing

  

7.7%

  

6.7%

  

8.0%

  

9.0%

  

7.5%

  

8.5%

  

6.8%

Finance

  

16.8%

  

15.2%

  

18.6%

  

26.0%

  

12.2%

  

19.6%

  

15.2%

Segment profit margin

  

8.2%

  

7.2%

  

8.6%

  

10.1%

  

7.8%

  

9.1%

  

7.3%

 

 

SEGMENT PROFIT MARGIN
 

2001

            
   

FY

  

Q4

  

Q3

  

Q2

  

Q1

  

2000

  

1999

  

1998

Revenues

                                

Bell

$

2,243

$

629

$

525

$

577

$

512

$

2,194

$

2,135

$

2,051

Cessna

  

3,043

  

933

  

698

  

791

  

621

  

2,814

 

2,472

  

1,949

Fastening Systems

  

1,679

  

373

  

389

  

451

  

466

  

1,996

 

2,059

  

1,758

Industrial

  

4,330

  

998

  

937

  

1,201

  

1,194

  

4,894

 

4,585

  

3,749

     Total Manufacturing

  

11,295

  

2,933

  

2,549

  

3,020

  

2,793

  

11,898

 

11,251

  

9,507

Finance

  

709

  

196

  

178

  

164

  

171

  

691

 

463

  

367

     Total revenues

$

12,004

$

3,129

$

2,727

$

3,184

$

2,964

$

12,589

$

11,714

$

9,874

Segment Operating Profit

  

 

  

 

  

 

  

 

  

 

  

 

 

 

  

 

Bell

$

93

$

38

$

(58)

$

55

$

58

$

264

$

226

$

204

Cessna

  

344

  

124

  

55

  

95

  

70

  

300

 

231

  

207

Fastening Systems

  

70

  

(16)

  

8

  

36

  

42

  

192

 

204

  

200

Industrial (a)

  

280

  

21

  

(2)

  

130

  

131

  

525

 

472

  

375

     Total Manufacturing

  

787

  

167

  

3

  

316

  

301

  

1,281

 

1,133

  

986

Finance

  

205

  

62

  

51

  

43

  

49

  

202

 

132

  

113

     Segment profit

$

992

$

229

$

54

$

359

$

350

$

1,483

$

1,265

$

1,099
   

 

  

 

  

 

  

 

  

 

  

 

 

 

  

 

Segment Profit Margin

  

 

  

 

  

 

  

 

  

 

  

 

 

 

  

 

Bell

  

4.1%

  

6.0%

  

(11.0)%

  

9.5%

  

11.3%

  

12.0%

 

10.6%

  

9.9%

Cessna

  

11.3%

  

13.3%

  

7.9%

  

12.0%

  

11.3%

  

10.7%

 

9.3%

  

10.6%

Fastening Systems

  

4.2%

  

(4.3)%

  

2.1%

  

8.0%

  

9.0%

  

9.6%

 

9.9%

  

11.4%

Industrial

  

6.5%

  

2.1%

  

(.2)%

  

10.8%

  

11.0%

  

10.7%

 

10.3%

  

10.0%

     Total Manufacturing

  

7.0%

  

5.7%

  

.1%

  

10.5%

  

10.8%

  

10.8%

 

10.1%

  

10.4%

Finance

  

28.9%

  

31.6%

  

28.7%

  

26.2%

  

28.7%

  

29.2%

 

28.5%

  

30.8%

Segment profit margin

  

8.3%

  

7.3%

  

2.0%

  

11.3%

  

11.8%

  

11.8%

 

10.8%

  

11.1%

TEXTRON INC.
REVENUE AND INCOME BY BUSINESS SEGMENT
RECAST TO REFLECT OMNIQUIP AS A DISCONTINUED OPERATION
(Dollars in millions, except per share amounts)
(Unaudited)
 

SEGMENT PROFIT MARGIN - EXCLUDING TRIM
 

2003

  

2002
   

Q2

  

Q1

  

FY

  

Q4

  

Q3

  

Q2

  

Q1

Revenues

                            

Bell

$

616

$

536

$

2,235

$

625

$

526

$

593

$

491

Cessna

  

575

  

588

  

3,175

  

896

  

745

  

857

  

677

Fastening Systems

  

447

  

429

  

1,650

  

412

  

411

  

431

  

396

Industrial (a)

  

750

  

706

  

2,706

  

701

  

647

  

705

  

653

     Total Manufacturing

  

2,388

  

2,259

  

9,766

  

2,634

  

2,329

  

2,586

  

2,217

Finance

  

155

  

151

  

630

  

181

  

156

  

148

  

145

     Total revenues

$

2,543

$

2,410

$

10,396

$

2,815

$

2,485

$

2,734

$

2,362

Segment Operating Profit

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Bell

$

56

$

40

$

169

$

67

$

33

$

45

$

24

Cessna

  

66

  

59

  

376

  

94

  

84

  

121

  

77

Fastening Systems

  

21

  

18

  

72

  

20

  

21

  

21

  

10

Industrial

  

40

  

34

  

163

  

55

  

36

  

32

  

40

     Total Manufacturing

  

183

  

151

  

780

  

236

  

174

  

219

  

151

Finance

  

26

  

23

  

117

  

47

  

19

  

29

  

22

     Segment profit

$

209

$

174

$

897

$

283

$

193

$

248

$

173
   

 

  

 

  

 

  

 

  

 

  

 

  

 

Segment Profit Margin

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Bell

  

9.1%

  

7.5%

  

7.6%

  

10.7%

  

6.3%

  

7.6%

  

4.9%

Cessna

  

11.5%

  

10.0%

  

11.8%

  

10.5%

  

11.3%

  

14.1%

  

11.4%

Fastening Systems

  

4.7%

  

4.2%

  

4.4%

  

4.9%

  

5.1%

  

4.9%

  

2.5%

Industrial

  

5.3%

  

4.8%

  

6.0%

  

7.8%

  

5.6%

  

4.5%

  

6.1%

     Total Manufacturing

  

7.7%

  

6.7%

  

8.0%

  

9.0%

  

7.5%

  

8.5%

  

6.8%

Finance

  

16.8%

  

15.2%

  

18.6%

  

26.0%

  

12.2%

  

19.6%

  

15.2%

Segment profit margin

  

8.2%

  

7.2%

  

8.6%

  

10.1%

  

7.8%

  

9.1%

  

7.3%

 

 

SEGMENT PROFIT MARGIN - EXCLUDING TRIM
 

2001

            
   

FY

  

Q4

  

Q3

  

Q2

  

Q1

  

2000

  

1999

  

1998

Revenues

                                

Bell

$

2,243

$

629

$

525

$

577

$

512

$

2,194

$

2,135

$

2,051

Cessna

  

3,043

  

933

  

698

  

791

  

621

  

2,814

  

2,472

  

1,949

Fastening Systems

  

1,679

  

373

  

389

  

451

  

466

  

1,996

  

2,059

  

1,758

Industrial

  

2,751

  

619

  

590

  

753

  

789

  

3,052

  

2,788

  

2,267

     Total Manufacturing

  

9,716

  

2,554

  

2,202

  

2,572

  

2,388

  

10,056

  

9,454

  

8,025

Finance

  

709

  

196

  

178

  

164

  

171

  

691

  

463

  

367

     Total revenues

$

10,425

$

2,750

$

2,380

$

2,736

$

2,559

$

10,747

$

9,917

$

8,392

Segment Operating Profit

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Bell

$

93

$

38

$

(58)

$

55

$

58

$

264

$

226

$

204

Cessna

  

344

  

124

  

55

  

95

  

70

  

300

  

231

  

207

Fastening Systems

  

70

  

(16)

  

8

  

36

  

42

  

192

  

204

  

200

Industrial (a)

  

196

  

13

  

(7)

  

95

  

95

  

358

  

318

  

250

     Total Manufacturing

  

703

  

159

  

(2)

  

281

  

265

  

1,114

  

979

  

861

Finance

  

205

  

62

  

51

  

43

  

49

  

202

  

132

  

113

     Segment profit

  $

908

  $

221

 $

49

 $

324

  $

314

 $

1,316

 $

1,111

 $

974
   

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Segment Profit Margin

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Bell

  

4.1%

  

6.0%

  

(11.0)%

  

9.5%

  

11.3%

  

12.0%

  

10.6%

  

9.9%

Cessna

  

11.3%

  

13.3%

  

7.9%

  

12.0%

  

11.3%

  

10.7%

  

9.3%

  

10.6%

Fastening Systems

  

4.2%

  

(4.3)%

  

2.1%

  

8.0%

  

9.0%

  

9.6%

  

9.9%

  

11.4%

Industrial

  

7.1%

  

2.1%

  

(1.2)%

  

12.6%

  

12.0%

  

11.7%

  

11.4%

  

11.0%

     Total Manufacturing

  

7.2%

  

6.2%

  

(.1)%

  

10.9%

  

11.1%

  

11.1%

  

10.4%

  

10.7%

Finance

  

28.9%

  

31.6%

  

28.7%

  

26.2%

  

28.7%

  

29.2%

  

28.5%

  

30.8%

Segment profit margin

  

8.7%

  

8.0%

  

2.1%

  

11.8%

  

12.3%

  

12.2%

  

11.2%

  

11.6%

TEXTRON INC.
REVENUE AND INCOME BY BUSINESS SEGMENT - EXCLUDING TRIM
RECAST TO REFLECT OMNIQUIP AS A DISCONTINUED OPERATION
(Dollars in millions, except per share amounts)
(Unaudited)
 

SEGMENT OPERATING INCOME EXCLUDING TRIM
 

2003

  

2002
   

Q2

  

Q1

  

FY

  

Q4

  

Q3

  

Q2

  

Q1

Revenues

                            

Bell

$

616

$

536

$

2,235

$

625

$

526

$

593

$

491

Cessna

  

575

  

588

  

3,175

  

896

  

745

  

857

  

677

Fastening Systems

  

447

  

429

  

1,650

  

412

  

411

  

431

  

396

Industrial (a)

  

750

  

706

  

2,706

  

701

  

647

  

705

  

653

     Total Manufacturing

  

2,388

  

2,259

  

9,766

  

2,634

  

2,329

  

2,586

  

2,217

Finance

  

155

  

151

  

630

  

181

  

156

  

148

  

145

     Total revenues

$

2,543

$

2,410

$

10,396

$

2,815

$

2,485

$

2,734

$

2,362

Segment Operating Profit

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Bell

$

56

$

40

$

169

$

67

$

33

$

45

$

24

Cessna

  

66

  

59

  

376

  

94

  

84

  

121

  

77

Fastening Systems

  

21

  

18

  

72

  

20

  

21

  

21

  

10

Industrial (a)

  

40

  

34

  

163

  

55

  

36

  

32

  

40

     Total Manufacturing

  

183

  

151

  

780

  

236

  

174

  

219

  

151

Finance

  

26

  

23

  

117

  

47

  

19

  

29

  

22

     Segment profit (b),(c)

  

209

  

174

  

897

  

283

  

193

  

248

  

173

Special charges (b)

  

(24)

  

(28)

  

(135)

  

(68)

  

(33)

  

(20)

  

(14)

Segment operating income

$

185

$

146

$

762

$

215

$

160

$

228

$

159

 

TEXTRON INC.
REVENUE AND INCOME BY BUSINESS SEGMENT - EXCLUDING TRIM
RECAST TO REFLECT OMNIQUIP AS A DISCONTINUED OPERATION
(Dollars in millions, except per share amounts)
(Unaudited)
(continued)
 

SEGMENT OPERATING INCOME EXCLUDING TRIM
 

2001

            
   

FY

  

Q4

  

Q3

  

Q2

  

Q1

  

2000

  

1999

  

1998

Revenues

                                

Bell

$

2,243

$

629

$

525

$

577

$

512

$

2,194

$

2,135

$

2,051

Cessna

  

3,043

  

933

  

698

  

791

  

621

  

2,814

  

2,472

  

1,949

Fastening Systems

  

1,679

  

373

  

389

  

451

  

466

  

1,996

  

2,059

  

1,758

Industrial (a)

  

2,751

  

619

  

590

  

753

  

789

  

3,052

  

2,788

  

2,267

     Total Manufacturing

  

9,716

  

2,554

  

2,202

  

2,572

  

2,388

  

10,056

  

9,454

  

8,025

Finance

  

709

  

196

  

178

  

164

  

171

  

691

  

463

  

367

     Total revenues

$

10,425

$

2,750

$

2,380

$

2,736

$

2,559

$

10,747

$

9,917

$

8,392

Segment Operating Profit

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Bell

$

93

$

38

$

(58)

$

55

$

58

$

264

$

226

$

204

Cessna

  

344

  

124

  

55

  

95

  

70

  

300

  

231

  

207

Fastening Systems

  

70

  

(16)

  

8

  

36

  

42

  

192

  

204

  

200

Industrial (a)

  

196

  

13

  

(7)

  

95

  

95

  

358

  

318

  

250

     Total Manufacturing

  

703

  

159

  

(2)

  

281

  

265

  

1,114

  

979

  

861

Finance

  

205

  

62

  

51

  

43

  

49

  

202

  

132

  

113

     Segment profit (b),(c)

  

908

  

221

  

49

  

324

  

314

  

1,316

  

1,111

  

974

Special charges

  

(130)

  

(26)

  

(28)

  

(44)

  

(32)

  

(456)

  

(7)

  

(62)

Segment operating income

$

778

$

195

$

21

$

280

$

282

$

860

$

1,104

$

912

(a)     On August 1, 2003, Textron consummated the sale of its remaining OmniQuip business to JLG Industries, Inc. and has reclassified the financial results of the OmniQuip division as discontinued operations for accounting purposes. In 1999, Textron completed the sale of Avco Financial Services to Associates First Capital Corporation resulting in a $1.65 billion gain, net of income taxes, and the reclassification of $165 million, net of income taxes, to discontinued operations in 1998.

(b)     Textron adopted SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities", effective December 29, 2002. Upon adoption, costs related to restructuring that were previously recorded in segment profit are not included with severance costs, contract termination costs, and asset impairment write-downs in special charges. Costs related to restructuring that were recorded in segment profit in prior periods have been reclassified to special charges to conform to this presentation.

(c)     Pursuant to SFAS No. 142 "Goodwill and Other Intangible Assets", beginning on December 30, 2001, goodwill is not longer amortized. To reflect the adoption of this statement and the fact that management does not include amortization of goodwill in its internal evaluation of segment performance, the Company has recast its segment data for comparability by reclassifying goodwill amortization out of segment profit in prior periods.