SELECTED FINANCIAL STATISTICS 2015-2011

(Dollars in millions, except where noted and per share amounts)	2015	2014	2013	2012	2011
Income Statement Data
Revenues	$13,423	$13,878	$12,104	$12,237	$11,275
Segment profit	1,255	1,214	963	1,132	591
Corporate expenses and other, net	(154)	(161)	(166)	(148)	(114)
Interest expense, net for Manufacturing group	(130)	(148)	(123)	(143)	(140)
Acquisition and restructuring costs	—	(52)	—	—	—
Income tax expense	(273)	(248)	(176)	(260)	(95)
Effective tax rate	28.1%	29.1%	26.1%	30.9%	28.2%
Income from continuing operations	$ 698	$ 605	$ 498	$ 581	$ 242
Diluted EPS from continuing operations	$ 2.50	$ 2.15	$ 1.75	$ 1.97	$ 0.79
Balance Sheet Data—Manufacturing Group
Cash and equivalents	$ 946	$ 731	$ 1,163	$ 1,378	$ 871
Accounts receivable, net	1,047	1,035	979	829	856
Inventories	4,144	3,928	2,963	2,712	2,402
Property, plant and equipment, net	2,492	2,497	2,215	2,149	1,996
Goodwill	2,023	2,027	1,735	1,649	1,635
Total assets	13,392	13,076	11,219	10,711	10,402
Total debt	2,697	2,811	1,931	2,301	2,459
Total liabilities	8,603	9,028	7,044	8,076	8,070
Total company shareholders' equity	4,964	4,272	4,384	2,991	2,745
Non-GAAP Cash Flow Calculations—Manufacturing Group
Net cash provided by operating activities of continuing operations—GAAP	$ 1,038	$ 1,097	$ 658	$ 958	$ 761
Less: Capital expenditures	(420)	(429)	(444)	(480)	(423)
Dividends received from TFC	(63)	—	(175)	(345)	(179)
Plus: Total pension contributions¹	68	76	194	405	642
Proceeds on sale of property, plant and equipment	8	9	22	15	17
Capital contributions paid to TFC	—	—	1	240	182
Manufacturing cash flow before pension contributions—Non-GAAP¹	$ 631	$ 753	$ 256	$ 793	$ 1,000
Cash Flow Items—Manufacturing Group
Depreciation and amortization	$ 449	$ 446	$ 371	$ 358	$ 371
Net cash used in acquisitions	(81)	(1,628)	(196)	(11)	(14)
Net change in debt	(100)	880	(321)	299	(288)
Dividends paid	(22)	(28)	(22)	(17)	(22)
Purchases of Textron common stock	(219)	(340)	—	(272)	—
Total number of shares purchased (in thousands)	5,197	8,921	—	11,103	—
Key Ratios
Segment profit margin	9.3%	8.7%	8.0%	9.3%	5.2%
Selling and administrative expenses as % of sales	9.7%	9.8%	9.3%	9.5%	10.5%
Inventory turns (based on FIFO)	2.4x	2.7x	2.6x	2.8x	2.8x
Ratio of income to fixed charges—Manufacturing group	7.05x	5.43x	6.23x	5.84x	4.22x
Debt-to-capital (net of cash)—Manufacturing group	26%	33%	15%	24%	37%
Stock-Related Information
Stock price at year-end	$ 42.01	$ 42.17	$ 36.61	$ 24.12	$ 18.49
Dividend payout ratio	3%	4%	5%	4%	10%
Dividends declared per share	$ 0.08	$ 0.08	$ 0.08	$ 0.08	$ 0.08
Other Statistics
Number of employees at year-end	35,000	34,000	32,000	33,000	32,000
Average revenues per employee (in thousands)	384	408	378	371	352

We use Manufacturing cash flow before pension contributions as our measure of free cash flow. This measure is not a financial measure under generally accepted accounting principles (GAAP) and should be used in conjunction with GAAP cash measures provided in our Consolidated Statement of Cash Flows. Free cash flow is a measure generally used by investors, analysts and management to gauge a company’s ability to generate cash from operations in excess of that necessary to be reinvested to sustain and grow the business and fund its obligations. Our definition of Manufacturing cash flow before pension contributions adjusts net cash from operating activities of continuing operations for dividends received from TFC, capital contributions provided under the Support Agreement and debt agreements, capital expenditures, proceeds from the sale of property, plant and equipment and contributions to our pension plans. We believe that our calculation provides a relevant measure of liquidity and is a useful basis for assessing our ability to fund operations and obligations. This measure may not be comparable with similarly titled measures reported by other companies, as there is no definitive accounting standard on how the measure should be calculated.

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