| (Dollars in Millions, Except Per Share Amounts) | 2016 | 2015 |
|---|---|---|
| Total Revenues | $13,788 | $13,423 |
| Total Segment Profit | 1,309 | 1,255 |
| Income from Continuing Operations1 | 843 | 698 |
| Per share of common stock | ||
| Common Stock Price: | ||
| High | $ 49.82 | $ 46.93 |
| Low | 30.69 | 32.20 |
| Year-End | 48.56 | 42.01 |
| Diluted Earnings from Continuing Operations1 | 3.09 | 2.50 |
| Common shares outstanding (In Thousands) | ||
| Diluted Average | 272,365 | 278,727 |
| Year-End | 270,287 | 274,228 |
| Financial Position | ||
| Total Assets | $15,358 | $14,708 |
| Manufacturing Group Debt | 2,777 | 2,697 |
| Finance Group Debt | 903 | 913 |
| Shareholders' Equity | 5,574 | 4,964 |
| Manufacturing Group Debt-to-Capital (Net of Cash) | 23% | 26% |
| Manufacturing Group Debt-to-Capital | 33% | 35% |
| Key Performance Metrics | ||
| Net Cash Provided by Operating Activites of Continuing Operations for Manufacturing Group—GAAP | $ 988 | $ 1,038 |
| Manufacturing Cash Flow Before Pension Contributions—Non-GAAP2 | 573 | 631 |
- For 2016, Income from continuing operations and Diluted earnings from continuing operations include special charges, net of income taxes, and a significant multi-year income tax settlement. See page immediately preceding Form 10-K for additional information.
- Manufacturing Cash Flow Before Pension Contributions is a Non-GAAP Measure. See page immediately preceding Form 10-K for Reconciliation to GAAP.
Footnote to Selected Year-Over-Year Financial Data
1 For 2016, Income from continuing operations and Diluted earnings from continuing operations include special charges, net of income taxes, of $78 million or $0.29 per diluted share, related to a plan initiated in 2016 to restructure and realign our businesses by implementing headcount reductions, facility consolidations and other actions in order to improve the overall operating efficiency across Textron. Special charges for this plan primarily include severance costs and asset impairments. In 2016, we also recognized an income tax benefit of $319 million, inclusive of interest, of which $206 million or $0.76 per diluted share is included in Income from continuing operations and $113 million is included in discontinued operations. This benefit was the result of the final settlement with the Internal Revenue Service Office of Appeals for our 1998 to 2008 tax years.
2 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 Statements of Cash Flows.
Our definition of manufacturing cash flow before pension contributions adjusts net cash from operating activities of continuing operations (GAAP) for the following:
- Excludes dividends received from Textron Financial Corporation (TFC) and capital contributions to TFC provided under the Support Agreement and debt agreements as these cash flows are not representative of manufacturing operations;
- Deducts capital expenditures and includes proceeds from the sale of property, plant and equipment to arrive at the net capital investment required to support ongoing manufacturing operations;
- Adds back pension contributions as we consider our pension obligations to be debt-like liabilities. Additionally, these contributions can fluctuate significantly from period to period and we believe that they are not representative of cash used by our manufacturing operations during the period.
While we believe this measure provides a focus on cash generated from manufacturing operations, before pension contributions, and may be used as an additional relevant measure of liquidity, it does not necessarily provide the amount available for discretionary expenditures since we have certain non-discretionary obligations that are not deducted from the measure.
A reconciliation of Net cash provided by operating activities of continuing operations for the Manufacturing group (GAAP) to Manufacturing cash flow before pension contributions (Non-GAAP) is provided below:
| (In Millions) | 2016 | 2015 |
|---|---|---|
| Net cash provided by operating activities of continuing operations for the Manufacturing group—GAAP | $ 988 | $1,038 |
| Less: Capital expenditures | (446) | (420) |
| Dividends received from TFC | (29) | (63) |
| Plus: Total pension contributions | 50 | 68 |
| Proceeds from the sale of property, plant and equipment | 10 | 8 |
| Manufacturing Cash Flow Before Pension Contributions—Non-GAAP | $ 573 | $ 631 |