Textron

financial data 2017-2016

(Dollars in millions, except per share amounts)					2017					2016
	Q1	Q2	Q3	Q4	Year	Q1	Q2	Q3	Q4	Year

Revenues
Textron Aviation	$970	$1,171	$1,154	$1,391	$4,686	$1,091	$1,196	$1,198	$1,436	$4,921
Bell	697	825	812	983	3,317	814	804	734	887	3,239
Textron Systems	416	477	458	489	1,840	324	487	413	532	1,756
Industrial	992	1,113	1,042	1,139	4,286	952	1,004	886	952	3,794
Finance	18	18	18	15	69	20	20	20	18	78

Total Revenues	$3,093	$3,604	$3,484	$4,017	$14,198	$3,201	$3,511	$3,251	$3,825	$13,788

Segment Profit¹
Textron Aviation	$36	$54	$93	$120	$303	$73	$81	$100	$135	$389
Bell	83	112	106	114	415	82	81	97	126	386
Textron Systems	20	42	40	37	139	29	60	44	53	186
Industrial	76	82	49	83	290	91	99	66	73	329
Finance	4	5	7	6	22	5	7	3	4	19

Total Segment Profit	$219	$295	$295	$360	$1,169	$280	$328	$310	$391	$1,309

Segment Profit Margins
Textron Aviation	3.7%	4.6%	8.1%	8.6%	6.5%	6.7%	6.8%	8.3%	9.4%	7.9%
Bell	11.9%	13.6%	13.1%	11.6%	12.5%	10.1%	10.1%	13.2%	14.2%	11.9%
Textron Systems	4.8%	8.8%	8.7%	7.6%	7.6%	9.0%	12.3%	10.7%	10.0%	10.6%
Industrial	7.7%	7.4%	4.7%	7.3%	6.8%	9.6%	9.9%	7.4%	7.7%	8.7%
Finance	22.2%	27.8%	38.9%	40.0%	31.9%	25.0%	35.0%	15.0%	22.2%	24.4%

Total Profit Margin	7.1%	8.2%	8.5%	9.0%	8.2%	8.7%	9.3%	9.5%	10.2%	9.5%

Corporate expenses and other, net	$(27)	$(31)	$(30)	$(44)	$(132)	$(32)	$(31)	$(53)	$(56)	$(172)
Interest expense, net for the Manufacturing group	(34)	(36)	(37)	(38)	(145)	(33)	(37)	(35)	(33)	(138)
Special charges²	(37)	(13)	(25)	(55)	(130)	—	—	(115)	(8)	(123)
Income tax benefit (expense)³	(21)	(62)	(44)	(329)	(456)	(64)	(82)	192	(79)	(33)

Income (loss) from Continuing Operations — GAAP	$100	$153	$159	$(106)	$306	$151	$178	$299	$215	$843

Restructuring, net of taxes	10	8	9	32	59	—	—	73	5	78
Arctic Cat restructuring, integration and transaction costs,
net of taxes	15	1	6	5	27	—	—	—	—	—

Total Special charges, net of taxes	25	9	15	37	86	—	—	73	5	78
Income tax expense resulting from the Tax Cuts and Jobs Act	—	—	—	266	266	—	—	—	—	—
Income tax settlement	—	—	—	—	—	—	—	(206)	—	(206)

Adjusted Income from Continuing Operations — Non-GAAP⁴	$125	$162	$174	$197	$658	$151	$178	$166	$220	$715

Diluted EPS from Continuing Operations — GAAP⁵	$0.37	$0.57	$0.60	$(0.40)	$1.14	$0.55	$0.66	$1.10	$0.78	$3.09

Restructuring, net of taxes	0.04	0.03	0.03	0.12	0.22	—	—	0.27	0.02	0.29
Arctic Cat restructuring, integration and transaction costs,
net of taxes	0.05	—	0.02	0.02	0.10	—	—	—	—	—

Total Special charges, net of taxes	0.09	0.03	0.05	0.14	0.32	—	—	0.27	0.02	0.29
Income tax expense resulting from the Tax Cuts and Jobs Act	—	—	—	1.00	0.99	—	—	—	—	—
Income tax settlement	—	—	—	—	—	—	—	(0.76)	—	(0.76)

Adjusted Diluted EPS from Continuing Operations — Non-GAAP^4,6	$0.46	$0.60	$0.65	$0.74	$2.45	$0.55	$0.66	$0.61	$0.80	$2.62

1	Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes interest expense, certain corporate expenses and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.
2	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 transactions costs.
3	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 (the “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.
4	Our definition of Adjusted income from continuing operations and adjusted diluted earnings per share both exclude Special charges, net of income taxes, the income tax impact from the enactment of the Act and a significant multi-year income tax settlement. We consider items recorded in Special charges, net of income taxes, such as enterprise-wide restructuring and acquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative of ongoing operations. In addition, both the impact from the Act and the income tax settlement are not considered to be indicative of ongoing operations, since they represent significant one-time adjustments.
5	For the fourth quarter of 2017, the diluted average shares used to calculate EPS on a GAAP basis excluded potential common shares (stock options and restricted stock units), due to their antidilutive effect resulting from the net loss.
6	The non-GAAP per share information for the fourth quarter of 2017 is calculated using diluted average shares outstanding of 266,099,000.