| Dollars in millions, except per share data | 2017 | 2016 | Change |
|---|---|---|---|
| Revenues | $14,198 | $13,788 | 3% |
| International revenues % | 38% | 38% | |
| Segment profit1 | $1,169 | $1,309 | (11)% |
| Income from continuing operations—GAAP | $306 | $843 | (64)% |
| Adjusted income from continuing | |||
| operations—Non-GAAP2 | $658 | $715 | (8)% |
| Manufacturing group debt3 | $3,088 | $2,777 | 11% |
| Shareholders’ equity | $5,647 | $5,574 | 1% |
| Manufacturing group debt-to-capital (net of cash)3 | 26% | 23% | |
| Common Share Data | |||
| Diluted EPS from continuing operations—GAAP | $1.14 | $3.09 | (63)% |
| Adjusted diluted EPS from continuing | |||
| operations—Non-GAAP2 | $2.45 | $2.62 | (6)% |
| Dividends per share | $0.08 | $0.08 | — |
| Diluted average shares outstanding (in thousands) | 268,750 | 272,365 | (1)% |
| Key Performance Metrics | |||
| ROIC4 | 9.8% | 11.6% | |
| Net cash provided by operating activities of continuing | |||
| operations—Manufacturing group—GAAP | $947 | $988 | (4)% |
| Manufacturing cash flow before pension | |||
| contributions—Non-GAAP3,5 | $889 | $573 | 55% |
| Manufacturing pension contributions3 | $358 | $50 | 616% |
| Capital expenditures | $423 | $446 | (5)% |
| Net Debt | |||
| Manufacturing group debt | $3,088 | $2,777 | $311 |
| Finance group debt | $824 | $903 | $(79) |
| Total debt | $3,912 | $3,680 | $232 |
| Less: Consolidated cash and equivalents | $1,262 | $1,298 | $(36) |
| Net Debt | $2,650 | $2,382 | $268 |
| 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 and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense. |
| 2 | Adjusted income from continuing operations and Adjusted diluted earnings per share (EPS) from continuing operations are Non-GAAP measures. See page 11 for reconciliation to GAAP. |
| 3 | Our Manufacturing group includes all continuing operations of Textron Inc., except for the Finance segment. |
| 4 | Calculation of return on invested capital (“ROIC”) is provided on page 13. |
| 5 | Manufacturing cash flow before pension contributions is a Non-GAAP measure. See page 12 for reconciliation to GAAP. |
(Credit Ratings as of January 16, 2018)
| Long-Term Debt |
Short-Term Commercial Paper |
Outlook | |
|---|---|---|---|
| S&P | BBB | A2 | Stable |
| Moody’s | Baa2 | P2 | Stable |