E-Z-GO 2004 Annual Report Download - page 58

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37
Consolidated Statements of Cash Flows
For each of the years in the three-year period ended January 1, 2005
Consolidated
(In millions)
2004 2003 2002
Cash flows from operating activities:
Income from continuing operations $ 373 $ 292 $ 374
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Earnings of Textron Finance greater than distributions — — —
Depreciation 338 336 330
Amortization 15 18 26
Provision for losses on finance receivables 58 81 111
Gain on sale of businesses — (15) (25)
Special charges 131 152 131
Non-cash gain on securitizations, net 2 (15) (28)
Deferred income taxes 29 (41) 326
Changes in assets and liabilities excluding those related to acquisitions and divestitures:
Accounts receivable, net (41) 82 (20)
Inventories (222) 279 —
Other assets 6 (208) (311)
Accounts payable 5 (201) (160)
Accrued liabilities 340 95 (178)
Captive finance receivables, net (105) 86 90
Other, net 20 44 10
Net cash provided by operating activities of continuing operations 949 985 676
Cash flows from investing activities:
Finance receivables:
Originated or purchased (9,725) (8,938) (7,905)
Repaid 8,762 8,137 6,703
Proceeds on receivables sales and securitization sales 264 846 658
Cash used in acquisitions (5) — —
Net proceeds from sale of businesses 3 14 27
Capital expenditures (302) (297) (292)
Proceeds on sale of property, plant and equipment 24 24 41
Proceeds on sale of investments 38 — —
Due (from) to Textron (Finance) Manufacturing — — —
Other investing activities, net 97 149 34
Net cash (used) provided by investing activities of continuing operations (844) (65) (734)
Cash flows from financing activities:
Increase (decrease) in short-term debt 790 (321) 154
Proceeds from issuance of long-term debt 963 1,682 2,495
Principal payments and retirements of long-term debt and mandatorily redeemable preferred securities (1,666) (1,882) (2,207)
Proceeds from employee stock ownership plans 187 67 24
Purchases of Textron common stock (415) (64) (248)
Dividends paid (135) (222) (182)
Dividends paid to Textron Manufacturing — — —
Other financing activities, net — (8) —
Net cash (used) provided by financing activities of continuing operations (276) (748) 36
Effect of exchange rate changes on cash and cash equivalents 33 32 17
Net cash (used) provided by continuing operations (138) 204 (5)
Net cash provided by discontinued operations 32 333 47
Net (decrease) increase in cash and cash equivalents (106) 537 42
Cash and cash equivalents at beginning of year 838 301 259
Cash and cash equivalents at end of year $ 732 $ 838 $ 301
Supplemental schedule of non-cash investing and financing activities:
Capital lease obligations incurred to finance future construction $ — $ — $ 79
Capital expenditures financed through capital leases $ 44 $ 26 $ 23
*Textron is segregated into two borrowing groups, Textron Manufacturing and Textron Finance, as described in Note 1 to the consolidated financial statements along with the principles
of consolidation. Textron Manufacturing’s cash flows exclude the pre-tax income from Textron Finance in excess of dividends paid to Textron Manufacturing. All significant transactions
between Textron Manufacturing and Textron Finance have been eliminated from the “Consolidated” column as discussed in Note 1 to the consolidated financial statements.
See notes to the consolidated financial statements.