E-Z-GO 2006 Annual Report Download - page 60

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39
For each of the years in the three-year period ended December 30, 2006 Consolidated
(In millions)
2006 2005 2004
Cash flows from operating activities:
Net income $ 601 $ 203 $ 365
Loss from discontinued operations 105 313 10
Income from continuing operations 706 516 375
Adjustments to reconcile income from continuing operations to net cash
provided by operating activities:
Earnings of Finance group, net of distributions — — —
Depreciation and amortization 290 303 280
Provision for losses on finance receivables 26 29 58
Special charges — 118 59
Share-based compensation 30 28 8
Deferred income taxes 37 17 29
Changes in assets and liabilities excluding those related to acquisitions
and divestitures:
Accounts receivable, net (14) (87) (3)
Inventories (427) (188) (201)
Other assets 107 26 25
Accounts payable 115 173 (8)
Accrued and other liabilities 401 77 414
Captive finance receivables, net (324) (100) (105)
Other operating activities, net 70 40 18
Net cash provided by operating activities of continuing operations 1,017 952 949
Net cash (used in) provided by operating activities of discontinued operations (48) 84 1
Net cash provided by operating activities 969 1,036 950
Cash flows from investing activities:
Finance receivables:
Originated or purchased (11,225) (10,116) (9,725)
Repaid 9,534 8,982 8,762
Proceeds on receivables sales and securitization sales 493 237 264
Net cash used in acquisitions (502) (28) (5)
Net proceeds from sale of businesses 8 (1) 3
Capital expenditures (431) (365) (250)
Proceeds on sale of property, plant and equipment 7 6 16
Proceeds on sale of investments — — 38
Other investing activities, net 54 62 97
Net cash used in investing activities of continuing operations (2,062) (1,223) (800)
Net cash provided by (used in) investing activities of discontinued operations 653 28 (18)
Net cash used in investing activities (1,409) (1,195) (818)
Cash flows from financing activities:
Increase (decrease) in short-term debt 337 171 788
Proceeds from issuance of long-term debt 2,000 1,957 963
Principal payments and retirements of long-term debt and mandatorily redeemable
preferred securities (1,137) (1,178) (1,664)
Proceeds from employee stock ownership plans 173 106 187
Purchases of Textron common stock (761) (597) (415)
Dividends paid (244) (189) (135)
Dividends paid to Manufacturing group — — —
Capital contributions paid to Finance group — — —
Excess tax benefit received on share-based payments 31 14 —
Net cash provided by (used in) financing activities of continuing operations 399 284 (276)
Net cash provided by (used in) financing activities of discontinued operations 2 (1) —
Net cash provided by (used in) financing activities 401 283 (276)
Effect of exchange rate changes on cash and cash equivalents 23 (25) 33
Net (decrease) increase in cash and cash equivalents (16) 99 (111)
Cash and cash equivalents at beginning of year 796 697 808
Cash and cash equivalents at end of year $ 780 $ 796 $ 697
Supplemental schedule of non-cash investing and financing activities from
continuing operations:
Capital expenditures financed through capital leases $ 16 $ 15 $ 44
* Textron is segregated into a Manufacturing group and a Finance group as described in Note 1 to the consolidated financial statements. The Finance group’s
pre-tax income in excess of dividends paid is excluded from the Manufacturing group’s cash flows. All significant transactions between the borrowing groups
have been eliminated from the consolidated column.
See Notes to the consolidated financial statements.
Consolidated Statements of Cash Flows