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17. In 1998, Textron adopted FAS 131, “Segments of an Enterprise and Related Information.”
FAS 131 established standards for the way enterprises report information about operating
segments and related disclosures about products and services, geographic areas, and
major customers.
Textron has four reportable segments: Aircraft, Automotive, Industrial and Finance. See
Note 1 for principal markets and pages 60 through 62 for products of Textron’s segments.
Textron’s reportable segments are strategically aligned based on the manner in which
Textron manages its various operations. The accounting policies of the segments are the
same as those described in the summary of significant accounting policies within the notes
to the consolidated financial statements. Textron evaluates segment performance based on
operating income from operations. Segment operating income excludes Textron
Manufacturing interest expense and special charges and gains or losses from the disposi-
tion of businesses. The Finance segment includes interest income and interest expense as
part of operating income from operations. Provisions for losses on finance receivables
involving the sale or lease of Textron products are recorded by the selling manufacturing
division.
The following summarizes the revenues by type of products:
Revenues
(In millions)
1998 1997 1996
Aircraft:
Fixed-Wing Aircraft $1,784 $1,483 $1,078
Rotor Aircraft 1,405 1,542 1,515
Automotive 2,405 2,127 1,627
Industrial:
Fasteners 1,758 1,498 1,355
Golf, Turf-Care & Specialty Products 719 483 477
Industrial Components 626 711 744
Fluid & Power 619 489 383
Finance 367 350 327
$9,683 $8,683 $7,506
The following tables summarize selected financial information by segment:
Property, Plant and
(In millions)
Assets Equipment Expenditures
1998 1997 1996 1998 1997 1996
Aircraft $2,199 $ 1,941 $ 1,856 $140 $107 $116
Automotive 1,681 1,515 1,020 111 103 60
Industrial 3,882 2,596 2,455 208 153 130
Finance 3,785 3,178 3,269 13 83
Corporate (including
investment in
discontinued operations) 2,717 2,557 3,161 333
Eliminations (543) (457) (247) –––
$13,721 $11,330 $11,514 $475 $374 $312
(In millions)
Amortization (1) Depreciation
1998 1997 1996 1998 1997 1996
Aircraft $10 $10 $10 $82 $70 $54
Automotive 15 14 12 72 69 41
Industrial 36 29 30 124 100 103
Finance 3––10 11 11
Corporate 532444
$69 $56 $54 $292 $254 $213
Segment
Reporting
54 1998 TEXTRON ANNUAL REPORT