E-Z-GO 1998 Annual Report Download - page 40

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36 1998 TEXTRON ANNUAL REPORT
Statement of Cash Flows
For each of the three years in the period ended January 2, 1999 Consolidated
(In millions) 1998 1997 1996
Cash flows from operating activities:
Income from continuing operations $ 443 $ 372 $ 306
Adjustments to reconcile income from continuing operations to net cash
provided by operating activities:
Earnings of Textron Finance (greater than) less than distributions –––
Dividends received from discontinued operations 187 108 95
Depreciation 292 254 213
Amortization 69 56 54
Provision for losses on receivables 21 25 29
Gain on sale of division, net of income taxes (54) ––
Special charges 87 ––
Deferred income taxes (16) 68 15
Changes in assets and liabilities excluding those related to
acquisitions and divestitures:
Decrease (increase) in commercial and U.S. government receivables (116) 44 (33)
(Increase) in inventories (157) (89) (33)
Decrease (increase) in other assets (111) (67) (110)
Increase (decrease) in accounts payable 46 74 62
Increase (decrease) in accrued liabilities 262 (103) 74
Other – net 81 (16)
Net cash provided by operating activities 961 743 656
Cash flows from investing activities:
Purchases of investments –– (5)
Proceeds from disposition of investments –251 6
Finance receivables:
Originated or purchased (4,069) (2,712) (2,287)
Repaid or sold 3,459 2,441 2,088
Proceeds on sales of securitized assets 260 373 –
Cash used in acquisitions (956) (364) (216)
Cash flows related to disposition of businesses 117 549 180
Capital expenditures (475) (374) (312)
Other investing activities – net 22 48 24
Net cash provided (used) by investing activities (1,642) 212 (522)
Cash flows from financing activities:
Increase (decrease) in short-term debt 1,571 (425) (85)
Proceeds from issuance of long-term debt 438 401 345
Principal payments on long-term debt (534) (427) (499)
Issuance of Textron – obligated mandatorily redeemable preferred securities
of subsidiary trust holding solely Textron junior subordinated debt securities –– 483
Proceeds from exercise of stock options 71 38 42
Purchases of Textron common stock (712) (299) (266)
Purchases of Textron common stock from Paul Revere –(29) (34)
Dividends paid (143) (202) (148)
Dividends paid to Textron Manufacturing –––
Capital contributions to Textron Finance –––
Net cash provided (used) by financing activities 691 (943) (162)
Net increase (decrease) in cash 10 12 (28)
Cash at beginning of year 43 31 59
Cash at end of year $53 $43 $31
Supplemental information:
Cash paid during the year for interest $ 345 $ 293 $ 289
Cash paid during the year for income taxes 260 156 167
* “Textron Manufacturing” income from continuing operations includes income from all entities of Textron (primarily manufacturing) other than its commercial
finance subsidiary (TFC) and the pretax income from “Textron Finance.” Textron Finance consists of Textron’s wholly-owned commercial finance subsidiary, TFC.
All significant transactions between Textron Manufacturing and Textron Finance have been eliminated from the “Consolidated” column. The principles of consolida-
tion are described in Note 1 to the consolidated financial statements.