FORM 10-K

70 Quarterly Data (Unaudited) 2017 2016 (Dollars in millions, except per share amounts) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenues Textron Aviation $ 970 $ 1,171 $ 1,154 $ 1,391 $ 1,091 $ 1,196 $ 1,198 $ 1,436 Bell 697 825 812 983 814 804 734 887 Textron Systems 416 477 458 489 324 487 413 532 Industrial 992 1,113 1,042 1,139 952 1,004 886 952 Finance 18 18 18 15 20 20 20 18 Total revenues $ 3,093 $ 3,604 $ 3,484 $ 4,017 $ 3,201 $ 3,511 $ 3,251 $ 3,825 Segment profit Textron Aviation $ 36 $ 54 $ 93 $ 120 $ 73 $ 81 $ 100 $ 135 Bell 83 112 106 114 82 81 97 126 Textron Systems 20 42 40 37 29 60 44 53 Industrial 76 82 49 83 91 99 66 73 Finance 4 5 7 6 5 7 3 4 Total segment profit 219 295 295 360 280 328 310 391 Corporate expenses and other, net (27) (31) (30) (44) (32) (31) (53) (56) Interest expense, net for Manufacturing group (34) (36) (37) (38) (33) (37) (35) (33) Special charges (a) (37) (13) (25) (55) — — (115) (8) Income tax benefit (expense) (b) (21) (62) (44) (329) (64) (82) 192 (79) Income (loss) from continuing operations 100 153 159 (106) 151 178 299 215 Income (loss) from discontinued operations, net of income taxes (b) 1 — — — (1) (1) 122 (1) Net income (loss) $ 101 $ 153 $ 159 $ (106) $ 150 $ 177 $ 421 $ 214 Basic earnings per share Continuing operations $ 0.37 $ 0.57 $ 0.60 $ (0.40) $ 0.55 $ 0.66 $ 1.11 $ 0.79 Discontinued operations — — — — — — 0.45 — Basic earnings per share $ 0.37 $ 0.57 $ 0.60 $ (0.40) $ 0.55 $ 0.66 $ 1.56 $ 0.79 Basic average shares outstanding (in thousands) 270,489 267,114 264,624 263,295 271,660 269,888 270,560 270,986 Diluted earnings per share (c) Continuing operations $ 0.37 $ 0.57 $ 0.60 $ (0.40) $ 0.55 $ 0.66 $ 1.10 $ 0.78 Discontinued operations — — — — — (0.01) 0.45 — Diluted earnings per share $ 0.37 $ 0.57 $ 0.60 $ (0.40) $ 0.55 $ 0.65 $ 1.55 $ 0.78 Diluted average shares outstanding (in thousands) 272,830 269,299 266,989 263,295 273,022 271,316 272,099 273,114 Segment profit margins Textron Aviation 3.7% 4.6% 8.1% 8.6% 6.7% 6.8% 8.3% 9.4% Bell 11.9 13.6 13.1 11.6 10.1 10.1 13.2 14.2 Textron Systems 4.8 8.8 8.7 7.6 9.0 12.3 10.7 10.0 Industrial 7.7 7.4 4.7 7.3 9.6 9.9 7.4 7.7 Finance 22.2 27.8 38.9 40.0 25.0 35.0 15.0 22.2 Segment profit margin 7.1% 8.2% 8.5% 9.0% 8.7% 9.3% 9.5% 10.2% Common stock information Price range: High $ 50.93 $ 48.67 $ 54.07 $ 57.71 $ 41.74 $ 40.61 $ 41.33 $ 49.82 Low $ 43.66 $ 45.00 $ 47.00 $ 51.07 $ 30.69 $ 34.00 $ 35.06 $ 37.19 Dividends declared per share $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 (a) Special charges related to our 2016 restructuring plan were $15 million, $12 million, $15 million and $48 million in the first, second, third and fourth quarters of 2017, respectively, and $115 million and $8 million in the third and fourth quarters of 2016, respectively. In addition, we recorded special charges of $22 million, $1 million, $10 million and $7 million in the first, second, third and fourth quarters of 2017, respectively, related to the Arctic Cat acquisition, which included restructuring, integration and transaction costs. (b) Income tax expense for the fourth quarter of 2017 included a $266 million charge to reflect our provisional estimate of the net impact of the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. The third quarter of 2016 included an income tax benefit of $319 million, inclusive of interest, of which $206 million is attributable to continuing operations and $113 million is attributable to discontinued operations. This benefit was a result of the final settlement with the Internal Revenue Service Office of Appeals for our 1998 to 2008 tax years. (c) For the fourth quarter of 2017, the diluted average shares outstanding excluded potential common shares (stock options and restricted stock units) due to their antidilutive effect resulting from the net loss.