Rockwell Collins' Fiscal Year 2005 Earnings Per Share Increase 32% to $2.20 as Revenues Grow 18% to $3.45 Billion; Fiscal Year 2005 Cash Flow from Operations Improves 44% to $574 Million.CEDAR RAPIDS Cedar Rapids, city (1990 pop. 108,751), seat of Linn co., E central Iowa, on the Cedar River; inc. as a city 1856. The second largest city in Iowa, it is named for the surging rapids in the river. , Iowa -- Rockwell Collins Rockwell Collins, Inc. (NYSE: COL) is a large United States-based international company headquartered in Cedar Rapids, Iowa, primarily providing aviation and information technology systems, solutions, and services to governmental agencies and aircraft manufacturers. , Inc. (NYSE NYSE See: New York Stock Exchange :COL) today reported net income for the fiscal year ended September 30, 2005 of $396 million, or $2.20 per share, a 32% increase over fiscal year 2004 net income of $301 million, or $1.67 per share. Total segment operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved 160 basis points to 18.1% compared to 16.5% last year. Sales for fiscal year 2005 increased $515 million, or 18%, to $3.45 billion compared to sales of $2.93 billion last year. Organic revenue growth was 15%, as incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. sales from the NLX (hardware, standard) NLX - A low-profile, low TCO motherboard design created jointly by Intel Corp., IBM, DEC and other PC vendors. In contrast to the traditional single-board design, NLX uses a riser card to carry PCI, ISA and AGP bus data (despite Intel's stated intent to rid PC business acquired in December 2003 and the TELDIX business acquired in March 2005 contributed $72 million, or 3 percentage points of the total growth in revenues. Cash provided by operating activities for fiscal year 2005 totaled $574 million, or 145% of net income, and represents an increase of 44% over the $399 million of operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. generated in fiscal year 2004. "By any measure, 2005 was an outstanding year for Rockwell Collins. In all key areas we posted results that were significantly improved over last year, highlighted by earnings per share growth that was more than double our rate of organic revenue growth," said Rockwell Collins Chairman, President and Chief Executive Officer Clay Jones. "Our margin expansion and earnings acceleration is, in part, due to the dedicated efforts of our people applying lean tools and leveraging the unique advantages inherent in our integrated business model." "Our strong operating cash flow allowed us to deploy nearly $600 million toward initiatives aimed at providing additional value to our shareowners in 2005. Specifically, we repurchased more than 10 million shares of common stock and paid out $85 million in dividends," continued Jones. Net income for the fourth quarter of fiscal year 2005 was $110 million, or 62 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with net income of $86 million, or 48 cents per share for the same period last year. Fourth quarter earnings per share grew 29%, slightly ahead of the 28% increase in net income, due to the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact on earnings per share of the company's share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. Sales for the fourth quarter of fiscal year 2005 were $963 million, an improvement of $124 million, or 15% from $839 million reported for the same period a year ago. Organic revenue growth was 11%, as TELDIX accounted for $29 million, or 4 percentage points of the higher revenues. Fourth quarter and full year 2005 net income includes a $15 million charge ($10 million after tax) for the write-off of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. as a result of the company discontinuing the use of certain tradenames related to Kaiser Aerospace and Electronics Corporation, acquired by the company in December 2000. Fourth quarter and full year 2005 net income also includes the recognition of $10 million in favorable income tax adjustments resulting from the resolution of certain deferred tax matters that existed at the time of the company's spin off in 2001. Commenting on the company's outlook, Jones said, "We begin 2006 with both businesses well positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. a commercial aerospace market that continues to recover and a government market with funding priorities focused in areas that match our defense electronics and communications capabilities. We also expect our operating performance to once again produce additional efficiencies that enhance our rate of profitability growth. These factors give me the confidence to project our third consecutive year of double-digit revenue and earnings per share growth in fiscal year 2006." Following is a discussion of fiscal year 2005 fourth quarter sales and earnings for each business segment. Government Systems Government Systems, which provides aviation electronics, navigation and display products as well as integrated system solutions and services for airborne, ground and shipboard ship·board n. 1. The condition of being aboard a ship: on shipboard. 2. Archaic The side of a ship. adj. applications to the U. S. Department of Defense, foreign Ministries of Defense, and manufacturers of military platforms, achieved fourth quarter sales of $532 million, an increase of $73 million, or 16%, compared to the $459 million reported for the same period last year. Sales of TELDIX contributed $29 million, or 6 percentage points of the revenue growth. Sales of defense electronics systems and products increased $76 million, or 26%, to $363 million from the $287 million reported last year. The incremental TELDIX revenues and higher revenues related to ground force navigational equipment programs, electronics systems upgrade programs for various fixed and rotary-wing military aircraft, and helmet mounted and fixed-wing aircraft "Airplane" and "Aeroplane" redirect here. For other uses, see Airplane (disambiguation). A fixed-wing aircraft is a heavier-than-air craft where movement of the wings in relation to the aircraft is not used to generate lift. display programs drove the revenue growth. Defense communications sales were $169 million, slightly lower than last year's $172 million. Higher advanced communications development program and ARC-210 radio sales were offset by lower Joint Tactical Radio System development program and legacy Link 16 data link revenues, as demand begins to shift to advanced data link products. Government Systems' fourth quarter operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before increased 23% to $100 million, an operating margin of 18.8%, as compared to operating earnings of $81 million, an operating margin of 17.6%, for the same period last year. The higher operating earnings and operating margin were attributable to the higher sales, coupled with the effects of operational efficiencies, notably in the area of improved engineering utilization, and controlling the growth of selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . These improvements more than offset the impact of lower margin TELDIX revenues. Commercial Systems Commercial Systems, which provides aviation electronics systems, products and services to air transport, business and regional aircraft manufacturers and airlines and operators of business aircraft worldwide, achieved fourth quarter sales of $431 million, an increase of $51 million, or 13%, compared to sales of $380 million reported for the same period last year. Air transport revenues increased $30 million, or 14%, to $246 million, principally due to strong demand for avionics avionics (ā'vēŏn`ĭks), electronic instruments used in air or space flight; also the design and production of such instruments. Early planes had few instruments, but as aviation and aircraft became more complex, so did instrumentation. equipment related to higher new aircraft production rates. Higher aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. sales also added to the revenue growth. Business and regional sales increased $21 million, or 13%, to $185 million. Significantly higher sales to business jet original equipment manufacturers (OEMs) in support of increasing business aircraft production rates were partially offset by lower sales to regional jet OEMs. Aftermarket revenues were lower as an anticipated decline in regulatory mandate program revenues exceeded revenue growth from core aftermarket activities. Commercial Systems' fourth quarter operating earnings increased 22% to $72 million, an operating margin of 16.7%, as compared to operating earnings of $59 million, an operating margin of 15.5%, for the same period a year ago. The improved operating earnings and operating margin were due to the combination of the higher sales and Commercial Systems holding its operating costs operating costs npl → gastos mpl operacionales flat, partially offset by higher research and development costs and inventory reserve adjustment charges. Corporate During the fourth quarter, the company repurchased 5.1 million shares of its common stock for $248 million at an average cost of $48.89 per share. This includes four million shares repurchased on August 16, 2005 at an initial cost of $49.10 per share under an accelerated share repurchase agreement. These repurchased shares are subject to a future price adjustment to be determined based on the volume weighted average market trading price Trading price The price at which a security is currently selling. of Rockwell Collins common stock over a period of up to four and one-half months from the date of the agreement. Fiscal Year 2006 Outlook The company anticipates continued improving conditions in most areas of the commercial aerospace market and its favorable positioning Noun 1. favorable position - the quality of being at a competitive advantage favourable position, superiority advantage, vantage - the quality of having a superior or more favorable position; "the experience gave him the advantage over me" with respect to defense budget funding priorities to lead to another year of double-digit revenue growth. The combination of the higher revenues and the company's ongoing operational efficiency initiatives are expected to provide the operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. to drive improved profitability, despite the impact in fiscal year 2006 from higher defined benefit pension plan costs and incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. related to the company's required adoption of Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment, beginning on October 1, 2005. The following financial guidance for fiscal year 2006 remains unchanged from that which was previously announced on September 13, 2005.
-- Total sales $3.8 Billion to $3.9
Billion
-- Segment sales growth:(1)
-- Government Systems(2) 14% - 16%
-- Commercial Systems 7% - 9%
-- Segment operating margins:(3)
-- Government Systems 18% - 19%
-- Commercial Systems 19% - 20%
-- Earnings per share $2.45- $2.55
-- Cash flow from operating activities Approx $500 Million
-- Research & development costs Approx $690 Million
-- Capital expenditures Approx $140 Million
(1) Projected growth rate over prior fiscal year actual segment sales.
(2) Includes 2 to 3 percentage points of growth from incremental
TELDIX revenues.
(3) Segment operating margins exclude the impact of stock compensation
expense.
Business Highlights: Rockwell Collins contracts with Sikorsky on Canadian helicopter program: Rockwell Collins has been selected by Sikorsky Aircraft For other meanings and similar spellings, see . Sikorsky is an American aircraft and helicopter manufacturer. It was founded 1923 by a Ukrainian born American aircraft engineer Igor Sikorsky, who made the first stable, single-rotor, fully-controllable helicopter to enter Corp. to provide avionics, simulators, training and support on its S-92 platform for the Canadian Maritime Helicopter Program. The program has a potential value of more than $100 million to Rockwell Collins over its 20-year life. Equipment selected includes Rockwell Collins' integrated cockpit solution for the S-92, as well as the new Rockwell Collins EyeHUD(TM) helmet mounted display, two Level D equivalent full-flight simulators and communications products. U.S. Air Force selects Rockwell Collins for KG-3X Cryptographic Modernization program The Cryptographic Modernization Program is a Department of Defense directed, NSA Information Assurance Directorate led effort to transform and modernize Information Assurance capabilities for the 21st century. Of the 1.3 million cryptographic devices in the U.S. : Rockwell Collins has been selected by the U.S. Air Force for Phases II, III and IV of the KG-3X Cryptographic Modernization Program, which is designed to provide the U.S. military with assured, survivable sur·viv·a·ble adj. 1. Capable of surviving: survivable organisms in a hostile environment. 2. That can be survived: a survivable, but very serious, illness. , protected and highly reliable strategic communications for airborne portions of the Minimum Essential Emergency Communications Network The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. (MEECN MEECN Minimum Essential Emergency Communications Network ) as well as the Fixed Submarine Broadcast System (FSBS FSBS Fixed Submarine Broadcast System (VLF/LF) FSBS Fingerstick Blood Sugar FSBS Fleet Submarine Broadcast System FSBS Florida State Button Society FSBS For Skaters By Skaters (Miami, FL skateshop) ). The contract has a potential value of $70 million over the life of the program. KG-3X units are used in the MEECN System and the FSBS for strategic transmission of emergency action messages. Rockwell Collins has been involved in the MEECN system since its inception and continues to provide key portions of the network for the U.S. military, including work on the Ground Element Minimum Essential Emergency Communications Network System (GEMS) program. DARPA DARPA: see Defense Advanced Research Projects Agency. (Defense Advanced Research Projects Agency) The name given to the U.S. Advanced Research Projects Agency during the 1980s. It was later renamed back to ARPA. and AFRL Noun 1. AFRL - a United States Air Force defense laboratory responsible for discovering and developing and integrating fighting technologies for aerospace forces Air Force Research Laboratory U. S. select Rockwell Collins for weapons networking program: Rockwell Collins was selected to lead a team in the first phase of the QUINT Networking Technology (QNT) program by the Defense Advanced Research Projects Agency Defense Advanced Research Projects Agency (DARPA), U.S. government agency administered by the Department of Defense (see Defense, United States Department of). (DARPA) and the Air Force Research Laboratory (AFRL) worth $3.5 million. Phases 2 and 3 are contract options valued at $26 million and could be awarded in December 2005 and September 2007, respectively. The QNT program will develop robust, affordable, miniature networked data link technologies suitable for use on weapons and by tactical unmanned air vehicles and dismounted soldiers. These data links will enable precision strike and efficient targeting against time-critical and mobile targets and also allow secure weapons handoff Switching a cellular phone transmission from one cell to another as a mobile user moves into a new cellular area. The switch takes place in about a quarter of a second so that the caller is generally unaware of it. from the launch platform to any of several air or ground control platforms in the combat area. Rockwell Collins Pro Line 21 selected for Navy UC-12 King Air fleet upgrade: ARINC ARINC Aeronautical Radio, Inc. ARINC Aircraft Radio Incorporated ARINC Aeronautical Research Incorporated Engineering Services, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control has selected Rockwell Collins' Pro Line 21 integrated avionics system to upgrade the Navy's fleet of UC-12 King Air aircraft. The Pro Line 21 integrated avionics system, which includes three, 10x8-inch high-resolution, liquid crystal adaptive flight displays, will enable the Navy's UC-12 fleet to continue its mission into the 21st century by providing enhanced flight deck efficiency and functionality. Boeing introduces 787 flight deck featuring Rockwell Collins' next-generation avionics, pilot controls and information management systems: The public unveiling of the Boeing 787 Dreamliner flight deck offered a first look at Rockwell Collins' next-generation systems. Highlights included: --The Rockwell Collins integrated display system and latest generation of pilot controls. The integrated display system includes five 15.1-inch diagonal liquid crystal displays liquid crystal display (LCD) Optoelectronic device used in displays for watches, calculators, notebook computers, and other electronic devices. Current passed through specific portions of the liquid crystal solution causes the crystals to align, blocking the passage of light. (LCD (Liquid Crystal Display) A display technology that uses rod-shaped molecules (liquid crystals) that flow like liquid and bend light. Unenergized, the crystals direct light through two polarizing filters, allowing a natural background color to show. ) --four across the flight deck and one in the control stand for emulation (architecture) emulation - When one system performs in exactly the same way as another, though perhaps not at the same speed. A typical example would be emulation of one computer by (a program running on) another. of the Control Display Units (CDU CDU Christlich-Demokratische Union (German: Christian Democratic Party) CDU Clasificación Decimal Universal (Spanish) CDU Control & Display Unit CDU Control Display Unit )--as well as dual LCD head-up displays See heads-up display. (HUD Hud (h  d), a pre-Qur'anic prophet of Islam. Hud unsuccessfully exhorted his South Arabian people, the Ad, to worship the One God. ). The
system utilizes cursor (1) The symbol used to point to some element on screen. On Windows, Mac and other graphics-based screens, it is also called a "pointer," and it changes shape as it is moved with the mouse into different areas of the application. control devices and a multifunction key pad for
data entry and retrieval. The Rockwell Collins pilot controls system
package includes control columns, control wheels, and rudder rudder, mechanism for steering an airplane or a ship. In ships it is a flat-surfaced structure hinged to the stern and controlled by a helm. When the ship is on a straight course, the rudder is in line with the vessel; if the rudder is turned to one side or the other pedals, as
well as interfaces to the aircraft's fly-by-wire systems. The
modular design In the context of systems engineering, modular design — or "modularity in design" — is an approach aiming to subdivide a system into smaller parts (modules) that can be independently created and then used in different systems to drive multiple functionalities. of the system will simplify installation and maintenance
and is designed to provide operators with a look and feel similar to the
Boeing 777 while achieving significant weight savings.--The Core Network; which will host a wide range of third party applications and manage on-board On board usually means to be traveling on some vehicle. For example, Baby On Board. Compare with overboard. Metaphorically, the term on-board is often used to refer to some piece of technology that is integrated in a moving vehicle, for example: n. pl. com·mon·al·i·ties 1. a. The possession, along with another or others, of a certain attribute or set of attributes: a political movement's commonality of purpose. with other Boeing flight decks. AirAsia signs service agreement with Rockwell Collins: Rockwell Collins was selected by AirAsia to provide avionics service and support on its new fleet of Airbus A320 aircraft. Under the 15-year guaranteed performance contract, Rockwell Collins Services will provide AirAsia with maintenance support at a set price per flight hour, billed on a single monthly invoice. The first of AirAsia's 60 A320 aircraft covered in this agreement will enter service later this year. AirAsia has the option of extending the agreement to cover an additional 40 aircraft. Conference Call and Webcast Details: Rockwell Collins Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Clay Jones and Senior Vice President and CFO See Chief Financial Officer. Patrick Allen For other persons named Patrick Allen, see Patrick Allen (disambiguation). John Keith Patrick Allen (March 17 1927 - July 28 2006) was a British actor and voice actor. Allen was born in Nyasaland (now Malawi), where his father was a tobacco farmer. will conduct an earnings conference call presentation at 8:00 a.m. Eastern Time on November 10, 2005. Individuals may listen to the call and view management's supporting slide presentation on the Internet at www.rockwellcollins.com. Listeners are encouraged to go to the Investor Relations Investor relations The process by which the corporation communicates with its investors. portion of the web site at least 15 minutes prior to the call to download and install any necessary software. The call will be available for replay on the Internet at www.rockwellcollins.com through December 9, 2005. Rockwell Collins is a worldwide leader in the design, production, and support of communication and aviation electronics for commercial and government customers. The company's 17,000 employees in 27 countries deliver industry-leading communication, navigation, surveillance, display, flight control, in-flight entertainment In-flight entertainment (IFE) refers to the entertainment available to aircraft passengers during a flight. After World War II commercial aviation flights became a daily event in which entertainment was requested by passengers to help the time pass. , information management, and maintenance, training and simulation solutions. Additional information is available at www.rockwellcollins.com. This press release contains statements, including certain projections and business trends, accompanied by such phrases as "believes", "estimates", "expects", "could", "likely", "anticipates", "will", "intends", and other similar expressions, that are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to the health of the global economy, the continued recovery of the commercial aerospace industry and the continued support for military transformation and modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, programs; the potential adverse impact of oil prices on the commercial aerospace industry; changes in domestic and foreign government spending Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product. , budgetary and trade policies adverse to our businesses; market acceptance of our new and existing technologies, products and services; reliability of and customer satisfaction with our products and services; potential cancellation or termination of contracts, delay of orders or changes in procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. practices or program priorities by our customers; customer bankruptcies and profitability; recruitment and retention of qualified personnel; performance of our suppliers and subcontractors which we are highly dependent upon for timely, high quality and specification compliant products and services; risks inherent in fixed price contracts, particularly the risk of cost overruns Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor ; risk of significant and prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. disruption to air travel; our ability to execute to our internal performance plans such as our continuous productivity improvement and cost reduction initiatives; achievement of our acquisition and related integration plans; continuing to maintain our planned effective tax rates; our ability to develop contract compliant systems and products and satisfy our contractual commitments; and the uncertainties of the outcome of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , as well as other risks and uncertainties, including but not limited to those detailed herein and from time to time in our Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof.
ROCKWELL COLLINS, INC.
SEGMENT SALES AND EARNINGS INFORMATION
(Unaudited)
(in millions, except per share amounts)
Three Months Ended Year Ended
September 30 September 30
------------------ -------------------
2005 2004 2005 2004
--------- -------- --------- ---------
Sales
Government Systems............. $532 $459 $1,810 $1,535
Commercial Systems............. 431 380 1,635 1,395
--------- -------- --------- ---------
Total sales............... $963 $839 $3,445 $2,930
========= ======== ========= =========
Segment operating earnings
Government Systems............. $100 $81 $328 $282
Commercial Systems............. 72 59 296 200
--------- -------- --------- ---------
Total segment operating
earnings................. 172 140 624 482
Interest expense............... (3) (2) (11) (8)
Earnings from corporate-level
equity affiliate.............. 2 2 4 3
Write-off of Kaiser tradenames
(1)........................... (15) - (15) -
General corporate, net (2)..... (15) (17) (55) (47)
--------- -------- --------- ---------
Income before income taxes..... 141 123 547 430
Income tax provision (3)....... (31) (37) (151) (129)
--------- -------- --------- ---------
Net income..................... $110 $86 $396 $301
========= ======== ========= =========
Diluted earnings per share..... $0.62 $0.48 $2.20 $1.67
Average diluted shares
outstanding................... 177.5 179.8 180.2 180.0
(1) Represents a fourth quarter fiscal year 2005 pre-tax charge
for the write-off of certain tradenames related to the Kaiser
Aerospace and Electronics Corporation, acquired by the company in
December 2000.
(2) General corporate, net for the year ended September 30, 2004
includes pre-tax gains of $5 million related to favorable settlements
of insurance matters and $7 million related to the favorable
resolution of a legal matter from a divested business, partially
offset by a $7 million pre-tax charge related to the write down of the
company's equity investment in Tenzing Communications.
(3) Income tax provision for the three months and year ended
September 30, 2005 includes $10 million in favorable income tax
adjustments resulting from the resolution of certain deferred tax
matters that existed at the time of the company's spin off in 2001.
The following table summarizes sales by product category for the three months and fiscal years ended September 30, 2005 and 2004 (unaudited, in millions):
Three Months Ended Year Ended
September 30 September 30
------------------ -------------------
2005 2004 2005 2004
--------- -------- --------- ---------
Defense electronics............ $363 $287 $1,232 $956
Defense communications......... 169 172 578 579
Air transport aviation
electronics................... 246 216 911 798
Business and regional aviation
electronics................... 185 164 724 597
--------- -------- --------- ---------
Total.......................... $963 $839 $3,445 $2,930
========= ======== ========= =========
ROCKWELL COLLINS, INC.
SUMMARY BALANCE SHEET
(Unaudited)
(in millions)
September 30, September 30,
2005 2004
------------- -------------
Assets
Cash and cash equivalents................. $145 $196
Receivables............................... 732 616
Inventories............................... 685 650
Current deferred income taxes............. 178 165
Other current assets...................... 35 36
------------- -------------
Total current assets................. 1,775 1,663
Property.................................. 473 418
Goodwill and intangible assets............ 571 550
Other assets.............................. 321 243
------------- -------------
Total assets......................... $3,140 $2,874
============= =============
Liabilities and shareowners' equity
Accounts payable.......................... $291 $240
Compensation and benefits................. 272 235
Income taxes payable...................... 39 18
Product warranty costs.................... 172 154
Other current liabilities................. 403 317
------------- -------------
Total current liabilities............ 1,177 964
Long-term debt............................ 200 201
Retirement benefits....................... 758 521
Other liabilities......................... 66 55
Shareowners' equity....................... 939 1,133
------------- -------------
Total liabilities and shareowners'
equity.............................. $3,140 $2,874
============= =============
ROCKWELL COLLINS, INC.
CONDENSED CASH FLOW INFORMATION
(Unaudited)
(in millions)
Year Ended
September 30
----------------
2005 2004
-------- -------
Operating Activities:
Net income........................................... $396 $301
Adjustments to arrive at cash provided by operating
activities:
Depreciation....................................... 85 92
Amortization of intangible assets and tradenames
write-off......................................... 34 17
Pension plan contributions......................... (114) (132)
Compensation and benefits paid in common stock..... 69 57
Deferred income taxes.............................. 31 38
Tax benefit from the exercise of stock options..... 35 15
Changes in assets and liabilities, excluding
effects of acquisitions and foreign currency
adjustments:
Receivables................................... (104) (65)
Inventories................................... (16) (39)
Accounts payable.............................. 47 21
Income taxes.................................. 25 21
Compensation and benefits..................... 30 36
Other assets and liabilities.................. 56 37
-------- -------
Cash Provided by Operating Activities....... 574 399
-------- -------
Investing Activities:
Property additions................................... (111) (92)
Acquisition of businesses, net of cash acquired...... (19) (126)
Acquisition of intangible assets..................... (7) (11)
Proceeds from the disposition of property............ 3 1
-------- -------
Cash Used for Investing Activities.......... (134) (228)
-------- -------
Financing Activities:
Purchases of treasury stock.......................... (498) (179)
Proceeds from exercise of stock options.............. 96 55
Cash dividends....................................... (85) (69)
Net proceeds from issuance of long-term debt......... - 198
Decrease in short-term borrowings, net............... - (42)
-------- -------
Cash Used for Financing Activities.......... (487) (37)
-------- -------
Effect of exchange rate changes on cash.............. (4) (4)
-------- -------
Net Change in Cash and Cash Equivalents.............. (51) 130
Cash and Cash Equivalents at Beginning of Period..... 196 66
----------------
Cash and Cash Equivalents at End of Period........... $145 $196
-------- -------
Certain prior year amounts have been reclassified to conform to the
current year presentation.
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