Segment and Geographic Data

12 Months Ended

Dec. 31, 2016

Segment and Geographic Data

Segment and Geographic Data

Note 16. Segment and Geographic Data

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

Textron Aviation products include Citation jets, King Air turboprops, Caravan utility turboprops, piston engine aircraft, T-6 and AT-6 military turboprop aircraft, and aftermarket sales and 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 and emergency medical helicopter operators, and foreign governments.

Textron Systems products include unmanned aircraft systems, marine and land systems, weapons and sensors, simulation, training and other defense and aviation mission support products and services primarily for U.S. and non-U.S. governments.  As discussed in Note 12, in 2016, we announced a plan to discontinue production of our sensor-fuzed weapon product by the end of the first quarter of 2017.

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 OEMs, as well as plastic bottles and containers for various uses;

· Specialized Vehicles and Equipment products include golf cars, off-road utility and light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment and turf-care vehicles that are marketed primarily to golf courses, resort communities, municipalities, sporting venues, consumers, and commercial and industrial users; and

· Tools and Test Equipment products include powered equipment, electrical test and measurement instruments, mechanical and hydraulic tools, cable connectors, fiber optic assemblies, underground and aerial transmission and distribution products, and power utility products, principally used in the construction, maintenance, telecommunications, data communications, electrical, utility and plumbing industries.

The Finance segment provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters.

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.

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

	Revenues						Segment Profit
(In millions)		2016		2015		2014		2016		2015		2014
Textron Aviation	$	4,921	$	4,822	$	4,568	$	389	$	400	$	234
Bell		3,239		3,454		4,245		386		400		529
Textron Systems		1,756		1,520		1,624		186		129		150
Industrial		3,794		3,544		3,338		329		302		280
Finance		78		83		103		19		24		21
Total	$	13,788	$	13,423	$	13,878	$	1,309	$	1,255	$	1,214
Corporate expenses and other, net								(172)		(154)		(161)
Interest expense, net for Manufacturing group								(138)		(130)		(148)
Special charges								(123)		—		(52)
Income from continuing operations before income taxes							$	876	$	971	$	853

Revenues by major product type are summarized below:

(In millions)		2016		2015		2014
Fixed-wing aircraft	$	4,921	$	4,822	$	4,568
Rotor aircraft		3,239		3,454		4,245
Unmanned aircraft systems, armored vehicles, precision weapons and other		1,756		1,520		1,624
Fuel systems and functional components		2,273		2,078		1,975
Specialized vehicles and equipment		1,080		1,021		868
Tools and test equipment		441		445		495
Finance		78		83		103
Total revenues	$	13,788	$	13,423	$	13,878

Our revenues included sales to the U.S. Government of approximately $3.4 billion, $3.2 billion and $3.8 billion in 2016, 2015 and 2014, 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 31, 2016			January 2, 2016		2016		2015		2014		2016		2015		2014
Textron Aviation	$	4,460	$	4,039	$	157	$	124	$	96	$	140	$	134	$	137
Bell		2,655		2,829		86		97		152		132		143		132
Textron Systems		2,508		2,398		71		86		65		75		80		84
Industrial		2,409		2,236		121		105		97		81		76		76
Finance		1,280		1,316		—		—		—		12		12		13
Corporate		2,046		1,890		11		8		19		9		16		17
Total	$	15,358	$	14,708	$	446	$	420	$	429	$	449	$	461	$	459

Geographic Data

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

		Revenues*					Property, Plant and Equipment, net**
(In millions)		2016		2015		2014		December 31, 2016		January 2, 2016
United States	$	8,574	$	8,299	$	8,677	$	2,116	$	2,039
Europe		1,954		1,730		1,761		247		251
Asia and Australia		998		1,324		1,155		78		72
Latin and South America		977		1,101		1,261		68		51
Canada		652		531		383		72		79
Middle East and Africa		633		438		641		—		—
Total	$	13,788	$	13,423	$	13,878	$	2,581	$	2,492

* 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.