FORM 10-K

63 Special charges recorded for these plans are as follows: (In millions) Severance Costs Asset Impairments Contract Terminations and Other Acquisition Integration/ Transaction Costs Total Special Charges 2017 Industrial $ 26 $ 1 $ 19 $ 12 $ 58 Textron Aviation 11 17 — — 28 Bell 3 12 8 — 23 Textron Systems 6 16 (1) — 21 Total $ 46 $ 46 $ 26 $ 12 $ 130 2016 Industrial $ 17 $ 2 $ 1 $ — $ 20 Textron Aviation 33 1 1 — 35 Bell 4 1 — — 5 Textron Systems 15 34 13 — 62 Corporate 1 — — — 1 Total $ 70 $ 38 $ 15 $ — $ 123 An analysis of our restructuring reserve activity for both plans is summarized below: (In millions) Severance Costs Contract Terminations and Other Total Provision for 2016 plan $ 75 $ 15 $ 90 Reversals (5) — (5) Cash paid (20) (2) (22) Balance at December 31, 2016 50 13 63 Provision for 2016 plan 33 25 58 Provision for Arctic Cat plan 19 9 28 Cash paid (72) (15) (87) Reversals* (6) (8) (14) Non-cash utilization — (4) (4) Balance at December 30, 2017 $ 24 $ 20 $ 44 *Primarily related to favorable contract negotiations in the Textron Systems segment. Both the 2016 plan and Arctic Cat plan are substantially completed with the majority of the remaining cash outlays of $44 million expected to be paid in the first half of 2018. Severance costs generally are paid on a lump-sum basis and include outplacement costs, which are paid in accordance with normal payment terms. Note 13. Income Taxes We conduct business globally and, as a result, file numerous consolidated and separate income tax returns within and outside the U.S. For all of our U.S. subsidiaries, we file a consolidated federal income tax return. Income from continuing operations before income taxes is as follows: (In millions) 2017 2016 2015 U.S. $ 428 $ 652 $ 745 Non-U.S. 334 224 226 Income from continuing operations before income taxes $ 762 $ 876 $ 971

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