E-Z-GO 2014 Annual Report Download - page 37

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Finance Group Cash Flows
The cash flows from continuing operations for the Finance group are summarized below:
(In millions)
2014
2013
2012
Operating activities
$ 5
$ 66
$ 5
Investing activities
255
624
934
Financing activities
(217)
(677)
(918)
In 2014 and 2013, the Finance group’s cash flows from operating activities were primarily impacted by changes in net taxes
paid/received. Net tax (payments)/receipts were $(23) million, $49 million and $(43) million in 2014, 2013 and 2012, respectively.
Cash flows from investing activities primarily included finance receivables repaid and proceeds from sales of receivables and other
finance assets totaling $499 million, $853 million and $1.3 billion in 2014, 2013 and 2012, respectively, partially offset by
financial receivable originations of $215 million, $271 million and $331 million, respectively.
Cash used in financing activities included payments on long-term and nonrecourse debt of $345 million, $743 million and $426
million in 2014, 2013 and 2012, respectively, which were partially offset by proceeds from long-term debt of $128 million, $298
million and $106 million, respectively. In 2013 and 2012, dividend payments to the Manufacturing group, net of capital
contributions received, totaled $174 million and $105 million, respectively. In 2012, the Finance group also made cash payments
of $493 million to the Manufacturing group related to intergroup borrowings.
Consolidated Cash Flows
The consolidated cash flows from continuing operations, after elimination of activity between the borrowing groups, are
summarized below:
(In millions)
2014
2013
2012
Operating activities
$ 1,211
$ 813
$ 935
Investing activities
(1,919)
(264)
378
Financing activities
335
(742)
(781)
Cash flows from operating activities increased $398 million during 2014, compared with 2013, largely due to a favorable change
in working capital, lower contributions of $118 million to our pension plans and higher income from continuing operations of $107
million. Working capital was favorably impacted by an increase of $226 million in customer deposits, primarily at Textron
Aviation, and a $174 million increase in cash from accounts receivable, largely at Bell, partially offset by an increase in net tax
payments of $115 million and lower net cash receipts from captive finance receivables of $87 million. Net tax payments were
$289 million and $174 million in 2014 and 2013, respectively.
During 2013, cash flows from operating activities decreased $122 million, compared with 2012, largely due to a $133 million
impact related to working capital requirements and lower earnings, which were partially offset by a $206 million impact of lower
contributions to our pension plans in 2013. Significant changes within working capital included a $138 million unfavorable impact
resulting from net taxes paid between the periods as net tax payments were $174 million and $36 million in 2013 and 2012,
respectively, and $264 million of cash outflows related to changes in accounts receivable and accounts payable. These cash
outflows were partially offset by $198 million of cash inflows related to changes in inventory levels, largely at Textron Aviation,
and a $141 million impact from lower captive finance receivables.
In 2014, cash flows from investing activities included a $1.6 billion aggregate cash payment for Beechcraft and seven other
acquisitions within our Industrial and Textron Systems segments. Cash flows from investing activities in 2013 included $196
million of cash used for acquisitions of businesses within our Industrial and Textron Systems segments and two service centers in
our Textron Aviation segment. Cash flows from investing activities also included capital expenditures of $429 million, $444
million and $480 million in 2014, 2013 and 2012, respectively. Collections on finance receivables and proceeds from sales of
finance receivables and other finance assets totaled $134 million, $368 million, and $848 million in 2014, 2013 and 2012.
Cash flows from financing activities in 2014 included proceeds of $1.6 billion from long-term debt, most of which was used to
finance a portion of the Beechcraft acquisition, partially offset by the repayment of $904 million of outstanding debt. In 2013 and
2012, financing activities primarily consisted of the repayment of outstanding long-term debt of $1.3 billion and $617 million,
respectively, partially offset by proceeds from the issuance of long-term debt of $448 million and $106 million, respectively. Cash
used in financing activities also included $340 million and $272 million of share repurchases in 2014 and 2012, respectively.
31
Textron Inc. Annual Report • 2014