Q4 revenue decreased 1.5% to $709 million.
Segment operating income increased 11.6% to $120 million.
And reported earnings per share was a net loss of $0.16.
This is principally driven by a $137 million charge related to the successful termination of our U.S. pension plan and other items, including tax charges totaling $17 million, partially offset by $52 million asbestos insurance settlement benefit.
We generated adjusted segment operating income growth of 8% with margin expansion of 150 basis points on a 4% organic sales decline.
For the full year, our decremental margin was 22% at the low end of our range.
As a result, we delivered adjusted earnings per share of $1.01, a sequential and as well as a year-over-year increase.
We generated free cash flow of $102 million for Q4 and $372 million for full year.
These drove a free cash flow margin of 15% at the high end of our guidance that we increased just last quarter.
On capital deployment, in 2020, we increased our dividend by 15%.
We repurchased ITT shares totaling 73 million and we increased our majority stake in our Wolverine China joint venture as we continued to expand our market share in Asia.
In 2020, we reduced the number of recordable incidents by 25% and implemented safer workplace protocols globally.
From a commercial perspective, sales in Friction outpaced global auto production rates by more than 600 basis points for the full year.
We increased market share by almost 400 basis points in North America, more than 200 basis points in China and almost 100 basis points in Europe.
And when it comes to EVs, we secured position on 42 new electric vehicle platforms during the year.
Industrial Process delivered 15.1% adjusted segment operating margins this quarter.
We anticipate full year organic sales growth of 2% to 4% driven by continued share gains in Motion Technologies, as well as the broader auto market recovery.
We plan to expand adjusted segment margins by 130 to 180 basis points.
The increased sales volume and the carryover impact of our 2020 cost actions, coupled with the strong productivity from 2021 initiatives, we'll generate adjusted earnings per share in the range of $3.45 to $3.75%, which equates to 8% to 17% growth versus prior year.
First, we would invest in our businesses with approximately $100 million of capital expenditures, up over 55% versus 2020.
And finally, we are planning to repurchase ITT shares totaling $50 million to $100 million reducing the full year weighted average share count by approximately 1%.
From a top-line perspective, Motion Technologies delivered a strong performance, growing over 10% organically, driven by continued share gains and double-digit growth in auto in North America and China.
Motion Technologies expanded margins over 400 basis points to 19.5%.
Industrial Process grew margin 90 basis points to 15.1% despite a 10% organic sales decline.
First, working capital as a percentage of sales continues to decline and we saw 70 basis points of improvement in 2020, excluding the impact of FX.
Second, free cash flow increased 40% versus prior year despite the challenges posed by the global pandemic.
We hit the high end of our full year target for free cash flow margin, while also investing in the business through growth capex of more than $35 million for the year.
And we drove an increase in our insurance assets of $52 million in the fourth quarter and $100 million for the full year.
As a result, our net asbestos liability that we have recently brought to a full-horizon valuation is now $487 million.
In Industrial Process, our redesigned between-bearing API pump has seen new orders increase over 50% this year.
Finally, in Connect and Control Technologies our Enidine business is teaming with Bell Textron to produce passive vibration control technology for the 360 Invictus.
Our Q4 organic growth of 10% was primarily driven by strong performance in our Friction OE business.
We delivered 640 basis points of outperformance in 2020 on a global basis; further evidence that the MT machine continues to win in the marketplace.
For the quarter, Friction sales in North America were up 43% and sales in China, up 19%, while growth in our Wolverine business was over 12% with strength in Europe and Asia-Pacific as we gained market share in both brake shims and sealings.
Segment margins were incredibly strong again expanding 410 basis points on incremental margins of 46%.
However, our short-cycle orders in the quarter were up 1%, driven by aftermarket demand.
IP margins expanded 90 basis points on 7% decremental margins.
Furthermore, IP's working capital as a percent of sales improved 590 basis points versus prior year and we still see further opportunities to optimize inventory as we consolidate footprint and enhance materials planning.
IP finished the quarter with less than 20% working capital as a percent of sales.
Sales in aerospace and defense were down over 30%, driven by lower passenger traffic and lower build rates from airframers.
Connected sales were down over 10%, mainly due to North America aerospace and defense.
These contributed to a book-to-bill of more than 1 in Q4.
While this year was challenging for CCT, we are encouraged by the productivity, which was over 400 basis points this quarter and the full year.
First, we generated productivity of 230 basis points.
For the full year, that number was over 300 basis points.
For the full year, we achieved cost reduction savings in excess of $100 million, including $40 million in the fourth quarter.
We delivered approximately $65 million of structural reduction in fixed costs for the full year, with the remainder comprising temporary savings, which will partially reverse in 2021.
We expect that the carryover impact of actions in 2020 will generate approximately $10 million to $15 million of additional savings in 2021.
As a result of these measures, our decremental margins improved every quarter since Q2 and we finished the year at 22% at the lower end of our target, given the strong performance in Q4.
In 2021, we expect incremental margins north of 35% as volumes recover and we leverage our optimized cost structure.
We expect total revenue will be up 5% to 7% versus 2020 and up 2% to 4% on an organic basis.
We expect adjusted segment margins to expand by a 150 basis points at the midpoint, driven by higher volumes, continued productivity and the incremental benefits from structural reductions to our cost structure in 2020.
We're guiding to adjusted earnings-per-share growth of 8% to 17%.
This assumes an approximate 1% reduction in our full year weighted average share count from repurchases and an effective tax rate of 21.5%.
Free cash flow will be in a range of $270 million to $300 million and we expect free cash flow margin to be 10% to 12%.
This is lower than the 15% delivered in 2020 as we expect to increase capex spending, including $5 million to $10 million of investments into green projects and increase working capital dollars to support top-line growth.
At these levels, adjusted free cash flow conversion will approximately be a 100% aided in part by working capital optimization.
Foreign exchange is expected to contribute positively to earnings and tax rate is expected to be slightly higher than 2020 at 21% -- 21.5% with a variance of 20 basis points around the mean, depending on the jurisdictional mix of our income.
Our planning rate currently implies a $0.02 earnings per share headwind.
Lastly, as Luca highlighted, we expect to repurchase $50 million to a $100 million in ITT shares, which will generate a $0.01 to $0.03 tailwind.
This will be partially offset by growth in connectors, given the strong beginning backlog after over 30% sequential order growth in Q4.

Summary:
Q4 revenue decreased 1.5% to $709 million.
And reported earnings per share was a net loss of $0.16.
We generated adjusted segment operating income growth of 8% with margin expansion of 150 basis points on a 4% organic sales decline.
As a result, we delivered adjusted earnings per share of $1.01, a sequential and as well as a year-over-year increase.
We anticipate full year organic sales growth of 2% to 4% driven by continued share gains in Motion Technologies, as well as the broader auto market recovery.
The increased sales volume and the carryover impact of our 2020 cost actions, coupled with the strong productivity from 2021 initiatives, we'll generate adjusted earnings per share in the range of $3.45 to $3.75%, which equates to 8% to 17% growth versus prior year.
We expect total revenue will be up 5% to 7% versus 2020 and up 2% to 4% on an organic basis.
Free cash flow will be in a range of $270 million to $300 million and we expect free cash flow margin to be 10% to 12%.
This will be partially offset by growth in connectors, given the strong beginning backlog after over 30% sequential order growth in Q4.