| (Dollars in millions, except per share amounts) | 2019 | 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | |
| Revenues | ||||||||||
| Textron Aviation | 1,134 | 1,123 | 1,201 | 1,729 | 5,187 | 1,010 | 1,276 | 1,133 | 1,552 | 4,971 |
| Bell | 739 | 771 | 783 | 961 | 3,254 | 752 | 831 | 770 | 827 | 3,180 |
| Textron Systems | 307 | 308 | 311 | 399 | 1,325 | 387 | 380 | 352 | 345 | 1,464 |
| Industrial | 912 | 1,009 | 950 | 927 | 3,798 | 1,131 | 1,222 | 930 | 1,008 | 4,291 |
| Finance | 17 | 16 | 14 | 19 | 66 | 16 | 17 | 15 | 18 | 66 |
| Total Revenues | 3,109 | 3,227 | 3,259 | 4,035 | 13,630 | 3,296 | 3,726 | 3,200 | 3,750 | 13,972 |
| Segment Profit1 | ||||||||||
| Textron Aviation | 106 | 105 | 104 | 134 | 449 | 72 | 104 | 99 | 170 | 445 |
| Bell | 104 | 103 | 110 | 118 | 435 | 87 | 117 | 113 | 108 | 425 |
| Textron Systems | 28 | 49 | 31 | 33 | 141 | 50 | 40 | 29 | 37 | 156 |
| Industrial | 50 | 76 | 47 | 44 | 217 | 64 | 80 | 1 | 73 | 218 |
| Finance | 6 | 6 | 5 | 11 | 28 | 6 | 5 | 3 | 9 | 23 |
| Total Segment Profit | 294 | 339 | 297 | 340 | 1,270 | 279 | 346 | 245 | 397 | 1,267 |
| Segment Profit Margins | ||||||||||
| Textron Aviation | 9.3% | 9.4% | 8.7% | 7.8% | 8.7% | 7.1% | 8.2% | 8.7% | 11.0% | 9.0% |
| Bell | 14.1% | 13.4% | 14.0% | 12.3% | 13.4% | 11.6% | 14.1% | 14.7% | 13.1% | 13.4% |
| Textron Systems | 9.1% | 15.9% | 10.0% | 8.3% | 10.6% | 12.9% | 10.5% | 8.2% | 10.7% | 10.7% |
| Industrial | 5.5% | 7.5% | 4.9% | 4.7% | 5.7% | 5.7% | 6.5% | 0.1% | 7.2% | 5.1% |
| Finance | 35.3% | 37.5% | 35.7% | 57.9% | 42.4% | 37.5% | 29.4% | 20.0% | 50.0% | 34.8% |
| Total Profit Margin | 9.5% | 10.5% | 9.1% | 8.4% | 9.3% | 8.5% | 9.3% | 7.7% | 10.6% | 9.1% |
| Corporate expenses and other, net | (47) | (24) | (17) | (22) | (110) | (27) | (51) | (29) | (12) | (119) |
| Interest expense, net for the Manufacturing group | (35) | (36) | (39) | (36) | (146) | (34) | (35) | (32) | (34) | (135) |
| Special charges2 | — | — | — | (72) | (72) | — | — | — | (73) | (73) |
| Gain on business disposition3 | — | — | — | — | — | — | — | 444 | — | 444 |
| Income tax expense | (33) | (62) | (21) | (11) | (127) | (29) | (36) | (65) | (32) | (162) |
| Income (loss) from Continuing Operations—GAAP | 179 | 217 | 220 | 199 | 815 | 189 | 224 | 563 | 246 | 1,222 |
| Special charges, net of taxes | — | — | — | 55 | 55 | — | — | — | 56 | 56 |
| Gain on business disposition, net of taxes | — | — | — | — | — | — | — | (410) | (9) | (419) |
| Income tax benefit resulting from the Tax Cuts and Jobs Act | — | — | — | — | — | — | — | — | (14) | (14) |
| Adjusted Income from Continuing Operations—Non-GAAP4 | 179 | 217 | 220 | 254 | 870 | 189 | 224 | 153 | 279 | 845 |
| Diluted EPS from Continuing Operations—GAAP | 0.76 | 0.93 | 0.95 | 0.87 | 3.50 | 0.72 | 0.87 | 2.26 | 1.02 | 4.83 |
| Gain on business disposition, net of taxes | — | — | — | — | — | — | — | (1.65) | (0.04) | (1.65) |
| Special charges, net of taxes | — | — | — | 0.24 | 0.24 | — | — | — | 0.23 | 0.22 |
| Income tax benefit resulting from the Tax Cuts and Jobs Act |
— | — | — | — | — | — | — | — | (0.06) | (0.06) |
| Adjusted Diluted EPS from Continuing Operations—Non-GAAP4 |
0.76 | 0.93 | 0.95 | 1.11 | 3.74 | 0.72 | 0.87 | 0.61 | 1.15 | 3.34 |
| 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, gains/losses on major business dispositions and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense. |
| 2 | In the fourth quarter of 2019, special charges of $72 million were recorded under a restructuring plan, principally impacting the Industrial and Textron Aviation segments. Special charges of $73 million were recorded in the fourth quarter of 2018 under a restructuring plan for the Textron Specialized Vehicles businesses within our Industrial segment that was initiated in December 2018. |
| 3 | On July 2, 2018, Textron completed the sale of the Tools & Test Equipment product line which resulted in an after-tax gain of $419 million. |
| 4 | Adjusted income from continuing operations and adjusted diluted earnings per share both exclude Special chargres, net of taxes, Gain on business disposition, net of taxes, and the income tax benefit resulting from the Tax Cuts and Jobs Act (the “Tax Act”). The Gain on business disposition is not considered indicative of ongoing operations as it is a significant one-time transaction. We consider items recorded in Special charges 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, the impact from the Tax Act is not considered to be indicative of ongoing operations since it represents a one-time adjustment related to a significant tax reform of a non-recurring nature. |