Chairman's Letter
Dear Shareowners, I am pleased to report that 2007 was another terrific year for Rockwell Collins. We met or exceeded expectations and our long-term growth and performance targets in each of these areas: annual sales, earnings per share, cash flow generation and return on invested capital. We also further solidified growth prospects in the Commercial and Government segments of our business with key wins and new product introductions. Clayton M. Jones, Chairman, President and Chief Executive Officer

*The Company calculates return on invested capital (ROIC) as net income excluding after-tax interest expense, divided by the average of invested capital at the beginning and end of the fiscal year. Invested capital is calculated as the sum of total shareowners' equity (excluding defined benefit accounting adjustments impacting accumulated other comprehensive loss) and total debt, less cash and cash equivalents. For 2007, the Company revised its definition of ROIC to exclude defined benefit accounting adjustments impacting accumulated other comprehensive loss. All ROIC percentages presented have been calculated under the revised definition.