SELECTED YEAR-OVER-YEAR FINANCIAL DATA

(Dollars in Millions, Except Per Share Amounts) 2022 2021
Total Revenues $ 12,869 $ 12,382
Total Segment Profit 1,223 1,134
Income from Continuing Operations—GAAP 862 747
Adjusted Income from Continuing Operations—Non-GAAP1 862 748

Per Share of Common Stock
Common Stock Price at Year-End $ 70.80 $ 77.20
Diluted Income from Continuing Operations—GAAP 4.01 3.30
Adjusted Diluted Income from Continuing Operations—Non-GAAP1 4.01 3.30

COMMON SHARES OUTSTANDING (In Thousands)

Diluted Average 214,973 226,520
Year-End 206,161 216,935

FINANCIAL POSITION
Total Assets $ 16,293 $ 15,827
Manufacturing Group Debt 3,182 3,185
Finance Group Debt 375 582
Shareholders’ Equity 7,113 6,815
Manufacturing Group Debt-to-Capital (Net of Cash) 15% 16%
Manufacturing Group Debt-to-Capital 31% 32%

KEY PERFORMANCE METRICS
Net Cash from Operating Activities of Continuing Operations for Manufacturing Group—GAAP $ 1,461 $ 1,469
Manufacturing Cash Flow Before Pension Contributions—Non-GAAP1 1,178 1,149

1. Adjusted Income from Continuing Operations, Adjusted Diluted Earnings Per Share and Manufacturing Cash Flow Before Pension Contributions are Non-GAAP Measures. See page 7 for a Reconciliation to GAAP.

Footnote To Selected Year-Over-Year Financial Data

Adjusted Income from Continuing Operations and Adjusted Diluted Earnings Per Share

Adjusted income from continuing operations and adjusted diluted earnings per share exclude special charges, net of tax. We consider items recorded in special charges, such as enterprise-wide restructuring, certain asset impairment charges, and acquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative of ongoing operations. The gain on disposition, net of tax is also excluded as it relates to a disposition in connection with our enterprise-wide restructuring plan, which resulted in the sale of the TRU Simulation + Training Canada Inc. business.

ADJUSTED income FROM CONTINUING OPERATIONS and ADJUSTED diluted Earnings Per Share GAAP to Non-GAAP Reconciliation

(Dollars in Millions, Except Per Share Amounts) 2022 2021
Income from continuing operations—GAAP $   862 $    747
Add: Special charges, net of tax — 18
Less: Gain on business disposition, net of tax — (17)
Adjusted income from continuing operations—Non-GAAP $   862 $    748
Earnings per share:
Income from continuing operations—GAAP $  4.01 $   3.30
Add: Special charges, net of tax — 0.08
Less: Gain on business disposition, net of tax — (0.08)
Adjusted income from continuing operations—Non-GAAP $  4.01 $   3.30

Manufacturing Cash Flow Before Pension Contributions

Manufacturing cash flow before pension contributions adjusts net cash from operating activities (GAAP) for the following:

  • Deducts capital expenditures and includes proceeds from insurance recoveries and the sale of property, plant and equipment to arrive at the net capital investment required to support ongoing manufacturing operations;
  • 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;
  • 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.

MANUFACTURING CASH FLOW BEFORE PENSION CONTRIBUTIONS GAAP TO NON-GAAP RECONCILIATION

(In Millions) 2022 2021
Net cash from operating activities—GAAP $ 1,461 $ 1,469
Less: Capital expenditures (354) (375)
Add: Total pension contribution 49 52
Proceeds from sale of property, plant and equipment 22 3
Manufacturing cash flow before pension contributions—Non-GAAP $ 1,178 $ 1,149