Segment and Geographic Data

12 Months Ended

Dec. 28, 2013

Segment and Geographic Data

Segment and Geographic Data

Note 15. Segment and Geographic Data

We operate in, and report financial information for, the following five business segments: Cessna, Bell, Textron Systems, Industrial and Finance.  The accounting policies of the segments are the same as those described in Note 1.

Cessna products include Citation jets, Caravan single-engine utility turboprops, single-engine utility and high-performance piston aircraft, and aftermarket services sold to a diverse base of corporate and individual buyers.

Bell products include military and commercial helicopters, tiltrotor aircraft and related spare parts and services.  Bell supplies military helicopters and, in association with The Boeing Company, military tiltrotor aircraft, and aftermarket services to the U.S. and non-U.S. governments.  Bell also supplies commercial helicopters and aftermarket services to corporate, offshore petroleum exploration and development, utility, charter, police, fire, rescue, emergency medical helicopter operators and foreign governments.

Textron Systems products include unmanned aircraft systems, marine and land systems, weapons and sensors and a variety of defense and aviation mission support products and services primarily for U.S. and non-U.S. governments.  In December 2013, we acquired two flight simulation and aircraft training product businesses.

Industrial products and markets include the following:

· Kautex products include blow-molded plastic fuel systems, windshield and headlamp washer systems, selective catalytic reduction systems and engine camshafts that are marketed primarily to automobile original equipment manufacturers, as well as plastic bottles and containers for various uses;

· Greenlee products include powered equipment, electrical test and measurement instruments, mechanical and hydraulic tools, cable connectors, and fiber optic assemblies, principally used in the construction, maintenance, telecommunications, data communications, utility and plumbing industries. During 2013, we acquired two businesses, a manufacturer of underground and aerial transmission and distribution products, and a designer and manufacturer of power utility products; and

· E-Z-GO and Jacobsen products include golf cars; off-road, utility and light transportation vehicles; professional turf-maintenance equipment and specialized turf-care vehicles that are marketed primarily to golf courses, resort communities, municipalities, sporting venues, consumers, and commercial and industrial users.

The Finance segment provides commercial loans and leases primarily for new Cessna aircraft and Bell helicopters as well as pre-owned Cessna aircraft and Bell helicopters on a limited basis.

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 segment when our Finance group has recourse to the Manufacturing group.

Our revenues by segment, along with a reconciliation of segment profit (loss) to income from continuing operations before income taxes, are as follows:

	Revenues						Segment Profit (Loss)
(In millions)	2013		2012		2011		2013			2012			2011
Cessna	$	2,784	$	3,111	$	2,990	$	(48	)	$	82		$	60
Bell	4,511		4,274		3,525		573			639			521
Textron Systems	1,665		1,737		1,872		147			132			141
Industrial	3,012		2,900		2,785		242			215			202
Finance	132		215		103		49			64			(333		)
Total	$	12,104	$	12,237	$	11,275	$	963		$	1,132		$	591
Corporate expenses and other, net							(166		)	(148		)	(114		)
Interest expense, net for Manufacturing group							(123		)	(143		)	(140		)
Income from continuing operations before income taxes							$	674		$	841		$	337

Revenues by major product type are summarized below:

	Revenues
(In millions)	2013		2012		2011
Rotor aircraft	$	4,511	$	4,274	$	3,525
Fixed-wing aircraft	2,784		3,111		2,990
Unmanned aircraft systems, armored vehicles, precision weapons and other	1,665		1,737		1,872
Fuel systems and functional components	1,853		1,842		1,823
Powered equipment, testing and measurement instruments	446		398		402
Golf, turf-care, and light transportation vehicles	713		660		560
Finance	132		215		103
Total	$	12,104	$	12,237	$	11,275

Our revenues included sales to the U.S. Government of approximately $3.7 billion, $3.6 billion and $3.5 billion in 2013, 2012 and 2011, respectively, primarily in the Bell and Textron Systems segments.

Other information by segment is provided below:

	Assets				Capital Expenditures						Depreciation and Amortization
(In millions)	December 28, 2013		December 29, 2012		2013		2012		2011		2013		2012		2011
Cessna	$	2,260	$	2,224	$	72	$	93	$	101	$	87	$	102	$	109
Bell	2,899		2,399		197		172		184		116		102		95
Textron Systems	2,106		1,987		66		108		37		89		75		85
Industrial	1,956		1,755		89		97		94		72		70		72
Finance	1,725		2,322		—		—		—		18		25		32
Corporate	1,998		2,346		20		10		7		7		9		10
Total	$	12,944	$	13,033	$	444	$	480	$	423	$	389	$	383	$	403

Geographic Data

Presented below is selected financial information of our continuing operations by geographic area:

	Revenues*						Property, Plant and Equipment, net**
(In millions)	2013		2012		2011		December 28, 2013		December 29, 2012
United States	$	7,512	$	7,586	$	7,138	$	1,701	$	1,644
Europe	1,535		1,655		1,577		288		275
Canada	375		447		289		101		106
Latin America and Mexico	878		893		820		45		43
Asia and Australia	1,111		1,264		1,032		80		82
Middle East and Africa	693		392		419		—		—
Total	$	12,104	$	12,237	$	11,275	$	2,215	$	2,150

* Revenues are attributed to countries based on the location of the customer.

** Property, plant and equipment, net are based on the location of the asset.