Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information

Segment Information

Note 10:  Segment Information

We operate in, and report financial information for, the following five business segments: Cessna, Bell, Textron Systems, Industrial and Finance.  Segment profit is an important measure used for evaluating performance and for decision-making purposes.  Segment profit for the manufacturing segments excludes interest expense and certain corporate expenses.  The measurement for the Finance segment includes interest income and expense along with intercompany interest expense.  Provisions for losses on finance receivables involving the sale or lease of our products are recorded by the selling manufacturing division when our Finance group has recourse to the Manufacturing group.

Our revenues by segment and a reconciliation of segment profit to income from continuing operations before income taxes are as follows:

	Three Months Ended						Six Months Ended
(In millions)	June 30, 2012			July 2, 2011			June 30, 2012			July 2, 2011
REVENUES
Manufacturing Group
Cessna	$	763		$	652		$	1,432		$	1,208
Bell	1,056			872			2,050			1,621
Textron Systems	389			452			766			897
Industrial	756			719			1,511			1,422
	2,964			2,695			5,759			5,148
Finance Group	55			33			116			59
Total revenues	$	3,019		$	2,728		$	5,875		$	5,207
SEGMENT OPERATING PROFIT
Manufacturing Group
Cessna	$	35		$	5		$	29		$	(33	)
Bell	152			120			297			211
Textron Systems	40			49			75			102
Industrial	61			55			134			116
	288			229			535			396
Finance Group	22			(33		)	34			(77		)
Segment profit	310			196			569			319
Corporate expenses and other, net	(20		)	(23		)	(67		)	(62		)
Interest expense, net for Manufacturing group	(35		)	(38		)	(70		)	(76		)
Income from continuing operations before income taxes	$	255		$	135		$	432		$	181