E-Z-GO 2008 Annual Report Download - page 62

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Consolidated Statements of Cash Flows
For each of the years in the three-year period ended January 3, 2009 Consolidated
(In millions) 2008 2007 2006
Cash flows from operating activities
Net income (loss) $ 486 $ 917 $ 601
Less: Income (loss) from discontinued operations 142 38 (92)
Income from continuing operations 344 879 693
Adjustments to reconcile income from continuing operations to net cash
provided by operating activities:
Earnings of Finance group, net of distributions — — —
Capital contribution paid to Finance Group — — —
Depreciation and amortization 403 325 279
Provision for losses on finance receivables 234 33 26
Special charges 526 — —
Share-based compensation 49 41 30
Deferred income taxes (43) (3) 37
Changes in assets and liabilities excluding those related to acquisitions
and divestitures:
Accounts receivable, net 16 (39) (16)
Inventories (671) (463) (412)
Other assets 8 (13) 107
Accounts payable 274 38 108
Accrued and other liabilities (157) 444 374
Captive finance receivables, net (291) (299) (324)
Other operating activities, net 81 52 70
Net cash provided by operating activities of continuing operations 773 995 972
Net cash (used in) provided by operating activities of discontinued operations (23) 54 (3)
Net cash provided by operating activities 750 1,049 969
Cash flows from investing activities
Finance receivables originated or purchased (10,860) (11,964) (11,225)
Finance receivables repaid 10,630 11,059 9,534
Proceeds from receivable sales, including securitizations 518 917 493
Net cash used in acquisitions (109) (1,092) (502)
Net proceeds from sale of businesses — (14) 8
Capital expenditures (550) (385) (419)
Proceeds from sale of property, plant and equipment 9 6 7
Purchase of other marketable securities (100) — —
Other investing activities, net 49 3 54
Net cash used in investing activities of continuing operations (413) (1,470) (2,050)
Net cash provided by investing activities of discontinued operations 476 64 641
Net cash provided by (used in) investing activities 63 (1,406) (1,409)
Cash flows from financing activities
Increase (decrease) in short-term debt 218 (412) 338
Intercompany short-term borrowing — — —
Proceeds from issuance of long-term debt 1,461 2,226 2,000
Principal payments and retirements of long-term debt (1,922) (1,394) (1,137)
Proceeds from borrowings against officers’ life insurance policies 222 — —
Proceeds from option exercises 40 103 173
Purchases of Textron common stock (533) (304) (761)
Dividends paid (284) (154) (244)
Capital contributions paid to Finance group — — —
Excess tax benefit related to stock option exercises 10 24 31
Net cash (used in) provided by financing activities of continuing operations (788) 89 400
Net cash (used in) provided by financing activities of discontinued operations (2) (2) 1
Net cash (used in) provided by financing activities (790) 87 401
Effect of exchange rate changes on cash and cash equivalents (7) 21 23
Net increase (decrease) in cash and cash equivalents 16 (249) (16)
Cash and cash equivalents at beginning of year 531 780 796
Cash and cash equivalents at end of year $ 547 $ 531 $ 780
* Textron is segregated into a Manufacturing and a Finance group as described in Note 1. The Finance group’s pre-tax income (loss) is excluded from the
Manufacturing group’s cash flow, while it includes dividends from the Finance group as cash flow from operating activities as they represent a return on investment.
In the fourth quarter of 2008, the Manufacturing group was required to make a cash payment to the Finance group under a support agreement, which we reflected
as a capital contribution and classified as cash flow from operating activities. Capital contributions to support Finance group growth are classified as cash flow from
financing activities. All significant transactions between the borrowing groups have been eliminated from the consolidated column.
See Notes to the Consolidated Financial Statements.
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