UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): July 8,
2009
TEXTRON
INC.
(Exact
name of Registrant as specified in its charter)
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Delaware
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I-5480
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05-0315468
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(State
of
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(Commission
File Number)
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(IRS
Employer
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Incorporation)
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Identification
Number)
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40
Westminster Street, Providence, Rhode Island 02903
(Address
of principal executive offices)
Registrant’s
telephone number, including area code: (401) 421-2800
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instructions A.2. below):
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c)) under the Exchange
Act (17 CFR 240.13e-4(c))
Item
2.06 Material
Impairments.
As
previously reported in our Quarterly Report on Form 10-Q for the fiscal quarter
ended April 4, 2009, subsequent to the end of the first quarter, we decided to
suspend the development of the Citation Columbus wide-body jet due to prevailing
market conditions.
Upon additional analysis of the business jet market related to this product
offering, we decided to formally cancel further development of the Citation
Columbus. As referenced in our first quarter 10-Q, we have
approximately $50 million in capitalized tooling and facility costs and other
deferred costs related to the Columbus. Accordingly, we have reviewed
these assets for recoverability in accordance with generally accepted accounting
principles. On July 8, 2009, management of Textron Inc. concluded
that a material impairment charge was required related to the recoverability of
a significant portion of the partially-constructed manufacturing facility in
Wichita, Kansas and certain tooling capitalized for the project that has no
alternate use. Accordingly, Textron will record a non-cash pre-tax
charge of approximately $43 million for the three and six months ended July 4,
2009 to reflect the impairment of the facility and the tooling assets. This
non-cash impairment charge is not expected to result in any future cash
expenditures.
Forward-Looking
Information
Certain
statements in this Current Report on Form 8-K and other oral and written
statements made by us from time to time are forward-looking statements,
including those that discuss strategies, goals, outlook or other non-historical
matters, or project revenues, income, returns or other financial measures. These
forward-looking statements speak only as of the date on which they are made, and
we undertake no obligation to update or revise any forward-looking statements.
These forward-looking statements are subject to risks and uncertainties that may
cause actual results to differ materially from those contained in the
statements, including the risk factors contained in our Annual Report on Form
10-K and our most recent Quarterly Report on Form 10-Q and the following: (a)
changes in worldwide economic and political conditions that impact demand for
our products, interest rates and foreign exchange rates; (b) the interruption of
production at our facilities or our customers or suppliers; (c) performance
issues with key suppliers, subcontractors and business partners; (d) the ability
to control costs and successful implementation of various cost-reduction
programs, including the enterprise-wide restructuring program; (e) the
occurrence of slowdowns or downturns in customer markets in which our products
are sold or supplied or where Textron Financial Corporation (TFC) offers
financing; (f) changes in aircraft delivery schedules or cancellation of orders;
(g) bankruptcy or other financial problems at major suppliers or customers that
could cause disruptions in our supply chain or difficulty in collecting amounts
owed by such customers; and (h) continued volatility and further deterioration
of the capital markets.
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
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TEXTRON
INC.
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(Registrant)
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Date: July
8, 2009
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By:
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/s/
Richard L. Yates
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Richard
L. Yates |
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Senior
Vice President, Corporate Controller |
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and
Acting Chief Financial
Officer |