FORM 10-K

27 Factors contributing to the 2016 year-over-year revenue change are provided below: (In millions) 2016 versus 2015 Volume $ 168 Acquisitions 121 Foreign exchange (35) Other (4) Total change $ 250 Industrial segment revenues increased $250 million, 7%, in 2016, compared with 2015, primarily due to higher volume of $168 million and the impact from acquired businesses of $121 million. The increase in volume was primarily related to the Fuel Systems and Functional Components product line, largely reflecting automotive industry demand in Europe. Operating expenses for the Industrial segment increased $223 million, 7%, in 2016, compared with 2015, primarily due to the impact from higher volume as described above and additional operating expenses from acquired businesses. Industrial Segment Profit Factors contributing to 2017 year-over-year segment profit change are provided below: (In millions) 2017 versus 2016 Pricing and inflation $ (23) Performance and other (10) Volume and mix (6) Total change $ (39) Industrial’s segment profit decreased $39 million, 12%, in 2017, compared with 2016, largely due to an unfavorable impact from pricing and inflation of $23 million, primarily in the Fuel Systems and Functional Components product line, and unfavorable performance and other of $10 million. Performance and other primarily included the operating results of Arctic Cat, partially offset by favorable performance in the Fuel Systems and Functional Components product line. Factors contributing to 2016 year-over-year segment profit change are provided below: (In millions) 2016 versus 2015 Inflation, net of pricing $ 19 Foreign exchange (12) Volume 11 Performance and other 9 Total change $ 27 Segment profit for the Industrial segment increased $27 million, 9%, in 2016, compared with 2015, largely due to a $19 million favorable impact from inflation, net of pricing, primarily in our Specialized Vehicles product line, and higher volume as described above, partially offset by an unfavorable impact of $12 million from changes in foreign currency exchange rates. Finance (In millions) 2017 2016 2015 Revenues $ 69 $ 78 $ 83 Segment profit 22 19 24 Finance segment revenues decreased in both 2017 and 2016, primarily attributable to lower average finance receivables. Finance segment profit increased in 2017, compared with 2016, primarily due to lower provision for loan losses, partially offset by lower average finance receivables. Finance segment profit decreased in 2016, compared with 2015, primarily due to lower average finance receivables.