TEXTRON INC, 10-K filed on 2/11/2026
Annual Report
v3.25.4
Cover - USD ($)
$ in Billions
 12 Months Ended
Jan. 03, 2026
Feb. 07, 2026
Jun. 28, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --01-03    
Document Period End Date Jan. 03, 2026    
Document Transition Report false    
Entity File Number 1-5480    
Entity Registrant Name Textron Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 05-0315468    
Entity Address, Address Line One 40 Westminster Street    
Entity Address, City or Town Providence    
Entity Address, State or Province RI    
Entity Address, Postal Zip Code 02903    
City Area Code 401    
Local Phone Number 421-2800    
Title of 12(b) Security Common Stock — par value $0.125    
Trading Symbol TXT    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 14.3
Entity Common Stock, Shares Outstanding   174,162,437  
Documents Incorporated by Reference
Part III of this Report incorporates information from certain portions of the registrant’s Definitive Proxy Statement for its Annual Meeting of Shareholders to be held on April 29, 2026.
    
Entity Central Index Key 0000217346    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.4
Audit Information
 12 Months Ended
Jan. 03, 2026
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location Boston, Massachusetts
Auditor Firm ID 42
v3.25.4
Consolidated Statements of Operations - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Revenues      
Total revenues $ 14,799 $ 13,702 $ 13,683
Costs, expenses and other      
Research and development costs 521 491 570
Selling and administrative expense 1,173 1,156 1,225
Interest expense, net 126 97 77
Special charges 4 78 126
Non-service components of pension and postretirement income, net (266) (263) (237)
Total costs, expenses and other 13,662 12,759 12,596
Income from continuing operations before income taxes 1,137 943 1,087
Income tax expense 214 118 165
Income from continuing operations 923 825 922
Loss from discontinued operations (2) (1) (1)
Net income $ 921 $ 824 $ 921
Basic earnings per share      
Continuing operations (in dollars per share) $ 5.16 $ 4.38 $ 4.62
Discontinued operations (in dollars per share) (0.01) 0 (0.01)
Basic earnings per share (in dollars per share) 5.15 4.38 4.61
Diluted earnings per share      
Continuing operations (in dollars per share) 5.12 4.34 4.57
Discontinued operations (in dollars per share) (0.01) (0.01) (0.01)
Diluted earnings per share (in dollars per share) $ 5.11 $ 4.33 $ 4.56
Manufacturing group      
Costs, expenses and other      
Income from continuing operations $ 878 $ 796 $ 884
Finance group      
Revenues      
Total revenues 75 50 55
Costs, expenses and other      
Income from continuing operations 45 29 38
Product      
Costs, expenses and other      
Total cost of sales 10,608 9,403 9,206
Product | Manufacturing group      
Revenues      
Total revenues 12,732 11,375 11,573
Service      
Costs, expenses and other      
Total cost of sales 1,496 1,797 1,629
Service | Manufacturing group      
Revenues      
Total revenues $ 1,992 $ 2,277 $ 2,055
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 921 $ 824 $ 921
Other comprehensive income (loss), net of tax      
Pension and postretirement benefits adjustments, net of reclassifications 298 419 (82)
Foreign currency translation adjustments, net of reclassifications 132 (71) 45
Deferred gains (losses) on hedge contracts, net of reclassifications 3 (8) 5
Total other comprehensive income (loss), net of tax 433 340 (32)
Comprehensive income $ 1,354 $ 1,164 $ 889
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Assets    
Inventories $ 4,278 $ 4,071
Finance receivables, net 574 603
Assets 18,129 16,838
Liabilities    
Total liabilities 10,254 9,634
Shareholders' equity    
Common stock (175.0 million and 184.0 million shares issued, respectively, and 174.3 million and 183.0 million shares outstanding, respectively) 22 23
Capital surplus 1,995 1,960
Treasury stock (55) (82)
Retained earnings 5,784 5,607
Accumulated other comprehensive income (loss) 129 (304)
Total shareholders’ equity 7,875 7,204
Total liabilities and shareholders’ equity 18,129 16,838
Manufacturing group    
Assets    
Cash and equivalents 1,940 1,386
Accounts receivable, net 823 949
Inventories 4,278 4,071
Other current assets 872 687
Total current assets 7,913 7,093
Property, plant and equipment, net 2,590 2,529
Goodwill 2,321 2,288
Other assets 4,628 4,248
Assets 17,452 16,158
Liabilities    
Current portion of long-term debt 5 357
Accounts payable 1,185 943
Other current liabilities 3,163 3,094
Total current liabilities 4,353 4,394
Other liabilities 1,980 1,945
Long-term debt 3,534 2,890
Debt 3,539 3,247
Total liabilities 9,867 9,229
Finance group    
Assets    
Cash and equivalents 85 55
Finance receivables, net 574 603
Other assets 18 22
Assets 677 680
Liabilities    
Other liabilities 48 64
Debt 339 341
Total liabilities $ 387 $ 405
v3.25.4
Consolidated Balance Sheets (Parenthetical) - shares
shares in Thousands
Jan. 03, 2026
Dec. 28, 2024
Statement of Financial Position [Abstract]    
Common stock, issued (in shares) 175,000 184,000
Common stock, outstanding (in shares) 174,310 182,964
v3.25.4
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Millions
Total
Common Stock
Capital Surplus
Treasury Stock
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 2022 $ 7,113 $ 26 $ 1,880 $ (84) $ 5,903 $ (612)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 921       921  
Other comprehensive income (loss) (32)         (32)
Dividends declared (16)       (16)  
Share-based compensation activity 179   179      
Purchases of common stock, including excise tax [1] (1,178)     (1,178)    
Retirement of treasury stock 0 (2) (149) 1,097 (946)  
Ending Balance at Dec. 30, 2023 6,987 24 1,910 (165) 5,862 (644)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 824       824  
Other comprehensive income (loss) 340         340
Dividends declared (16)       (16)  
Share-based compensation activity 200 1 199      
Purchases of common stock, including excise tax [1] (1,131)     (1,131)    
Retirement of treasury stock 0 (2) (149) 1,214 (1,063)  
Ending Balance at Dec. 28, 2024 7,204 23 1,960 (82) 5,607 (304)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 921       921  
Other comprehensive income (loss) 433         433
Dividends declared (14)       (14)  
Share-based compensation activity 159   159      
Purchases of common stock, including excise tax [1] (828)     (828)    
Retirement of treasury stock 0 (1) (124) 855 (730)  
Ending Balance at Jan. 03, 2026 $ 7,875 $ 22 $ 1,995 $ (55) $ 5,784 $ 129
[1] Includes amounts accrued for excise tax imposed on common share repurchases that totaled $6 million in 2025, $9 million in 2024 and $10 million in 2023.
v3.25.4
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Statement of Stockholders' Equity [Abstract]      
Dividends declared (in dollars per share) $ 0.08 $ 0.08 $ 0.08
Excise tax $ 6 $ 9 $ 10
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Cash flows from operating activities      
Income from continuing operations $ 923 $ 825 $ 922
Non-cash items:      
Depreciation and amortization 401 382 395
Deferred income taxes 155 (48) (192)
Asset impairments and powersports inventory charge 1 41 88
Gain on business disposition (4) 0 0
Other, net 134 102 90
Changes in assets and liabilities:      
Accounts receivable, net 107 (96) (9)
Inventories (264) (194) (359)
Other assets (76) 205 267
Accounts payable 197 (69) 2
Other liabilities 32 95 276
Income taxes, net (45) (26) 4
Pension, net (232) (225) (202)
Captive finance receivables, net (17) (1) (17)
Other operating activities, net 1 24 2
Net cash provided by operating activities of continuing operations 1,313 1,015 1,267
Net cash used in operating activities of discontinued operations (1) (1) (1)
Net cash provided by operating activities 1,312 1,014 1,266
Cash flows from investing activities      
Capital expenditures (383) (364) (402)
Net proceeds from corporate-owned life insurance policies 80 85 40
Net proceeds from business disposition 16 0 0
Proceeds from sale of property, plant and equipment 9 4 18
Net cash used in business acquisitions (1) (13) (1)
Finance receivables repaid 42 25 26
Finance receivables originated (58) (21) 0
Proceeds from the disposition of non-captive assets 72 0 0
Other investing activities, net 16 0 2
Net cash provided by (used in) investing activities (207) (284) (317)
Cash flows from financing activities      
Net proceeds from long-term debt 991 0 348
Principal payments on long-term debt and nonrecourse debt (720) (377) (44)
Purchases of Textron common stock (822) (1,122) (1,168)
Proceeds from exercise of stock options 40 88 73
Dividends paid (18) (12) (16)
Other financing activities, net (14) (31) (6)
Net cash used in financing activities (543) (1,454) (813)
Effect of exchange rate changes on cash and equivalents 22 (16) 10
Net increase (decrease) in cash and equivalents 584 (740) 146
Cash and equivalents at beginning of year 1,441 2,181 2,035
Cash and equivalents at end of year $ 2,025 $ 1,441 $ 2,181
v3.25.4
Consolidated Statements of Cash Flows - Manufacturing Group and Finance Group - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Cash flows from operating activities      
Income from continuing operations $ 923 $ 825 $ 922
Non-cash items:      
Depreciation and amortization 401 382 395
Deferred income taxes 155 (48) (192)
Asset impairments and powersports inventory charge 1 41 88
Gain on business disposition (4) 0 0
Other, net 134 102 90
Changes in assets and liabilities:      
Accounts receivable, net 107 (96) (9)
Inventories (264) (194) (359)
Other assets (76) 205 267
Accounts payable 197 (69) 2
Other liabilities 32 95 276
Income taxes, net (45) (26) 4
Pension, net (232) (225) (202)
Other operating activities, net 1 24 2
Net cash provided by operating activities of continuing operations 1,313 1,015 1,267
Net cash used in operating activities of discontinued operations (1) (1) (1)
Net cash provided by operating activities 1,312 1,014 1,266
Cash flows from investing activities      
Capital expenditures (383) (364) (402)
Net proceeds from corporate-owned life insurance policies 80 85 40
Net proceeds from business disposition 16 0 0
Proceeds from sale of property, plant and equipment 9 4 18
Net cash used in business acquisitions (1) (13) (1)
Finance receivables repaid 42 25 26
Finance receivables originated (58) (21) 0
Proceeds from the disposition of non-captive assets 72 0 0
Other investing activities, net 16 0 2
Net cash provided by (used in) investing activities (207) (284) (317)
Cash flows from financing activities      
Net proceeds from long-term debt 991 0 348
Principal payments on long-term debt and nonrecourse debt (720) (377) (44)
Purchases of Textron common stock (822) (1,122) (1,168)
Proceeds from exercise of stock options 40 88 73
Dividends paid (18) (12) (16)
Other financing activities, net (14) (31) (6)
Net cash used in financing activities (543) (1,454) (813)
Effect of exchange rate changes on cash and equivalents 22 (16) 10
Net increase (decrease) in cash and equivalents 584 (740) 146
Cash and equivalents at beginning of year 1,441 2,181 2,035
Cash and equivalents at end of year 2,025 1,441 2,181
Manufacturing group      
Cash flows from operating activities      
Income from continuing operations 878 796 884
Non-cash items:      
Depreciation and amortization 401 382 395
Deferred income taxes 180 (46) (188)
Asset impairments and powersports inventory charge 1 41 88
Gain on business disposition (4) 0 0
Other, net 136 115 110
Changes in assets and liabilities:      
Accounts receivable, net 107 (96) (9)
Inventories (264) (194) (359)
Other assets (74) 205 261
Accounts payable 197 (69) 2
Other liabilities 38 100 281
Income taxes, net (63) (25) 5
Pension, net (232) (225) (202)
Dividends received from Finance group 25 0 0
Other operating activities, net 1 24 2
Net cash provided by operating activities of continuing operations 1,327 1,008 1,270
Net cash used in operating activities of discontinued operations (1) (1) (1)
Net cash provided by operating activities 1,326 1,007 1,269
Cash flows from investing activities      
Capital expenditures (383) (364) (402)
Net proceeds from corporate-owned life insurance policies 80 85 40
Net proceeds from business disposition 16 0 0
Proceeds from sale of property, plant and equipment 9 4 18
Net cash used in business acquisitions (1) (13) (1)
Finance receivables repaid 0 0 0
Finance receivables originated 0 0 0
Proceeds from the disposition of non-captive assets 0 0 0
Other investing activities, net 15 0 0
Net cash provided by (used in) investing activities (264) (288) (345)
Cash flows from financing activities      
Net proceeds from long-term debt 991 0 348
Principal payments on long-term debt and nonrecourse debt (707) (361) (7)
Purchases of Textron common stock (822) (1,122) (1,168)
Proceeds from exercise of stock options 40 88 73
Dividends paid (18) (12) (16)
Other financing activities, net (14) (31) (6)
Net cash used in financing activities (530) (1,438) (776)
Effect of exchange rate changes on cash and equivalents 22 (16) 10
Net increase (decrease) in cash and equivalents 554 (735) 158
Cash and equivalents at beginning of year 1,386 2,121 1,963
Cash and equivalents at end of year 1,940 1,386 2,121
Finance group      
Cash flows from operating activities      
Income from continuing operations 45 29 38
Non-cash items:      
Depreciation and amortization 0 0 0
Deferred income taxes (25) (2) (4)
Asset impairments and powersports inventory charge 0 0 0
Gain on business disposition 0 0 0
Other, net (2) (13) (20)
Changes in assets and liabilities:      
Accounts receivable, net 0 0 0
Inventories 0 0 0
Other assets (2) 0 6
Accounts payable 0 0 0
Other liabilities (6) (5) (5)
Income taxes, net 18 (1) (1)
Pension, net 0 0 0
Dividends received from Finance group 0 0 0
Other operating activities, net 0 0 0
Net cash provided by operating activities of continuing operations 28 8 14
Net cash used in operating activities of discontinued operations 0 0 0
Net cash provided by operating activities 28 8 14
Cash flows from investing activities      
Capital expenditures 0 0 0
Net proceeds from corporate-owned life insurance policies 0 0 0
Net proceeds from business disposition 0 0 0
Proceeds from sale of property, plant and equipment 0 0 0
Net cash used in business acquisitions 0 0 0
Finance receivables repaid 208 133 169
Finance receivables originated (241) (130) (160)
Proceeds from the disposition of non-captive assets 72 0 0
Other investing activities, net 1 0 2
Net cash provided by (used in) investing activities 40 3 11
Cash flows from financing activities      
Net proceeds from long-term debt 0 0 0
Principal payments on long-term debt and nonrecourse debt (13) (16) (37)
Purchases of Textron common stock 0 0 0
Proceeds from exercise of stock options 0 0 0
Dividends paid (25) 0 0
Other financing activities, net 0 0 0
Net cash used in financing activities (38) (16) (37)
Effect of exchange rate changes on cash and equivalents 0 0 0
Net increase (decrease) in cash and equivalents 30 (5) (12)
Cash and equivalents at beginning of year 55 60 72
Cash and equivalents at end of year $ 85 $ 55 $ 60
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Jan. 03, 2026
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Principles of Consolidation and Financial Statement Presentation
Our Consolidated Financial Statements include the accounts of Textron Inc. and its majority-owned subsidiaries. Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron Inc. consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation (TFC) and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.
Our Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of Cash Flows, cash received from customers is reflected as operating activities when received from third parties. However, in the cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in the Finance group’s statement of cash flows. Meanwhile, in the Manufacturing group’s statement of cash flows, the cash received from the Finance group on the customer’s behalf is recorded within operating cash flows as a cash inflow. Although cash is transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or eliminated in consolidation.
Collaborative Arrangements
Our Bell segment has a strategic alliance agreement with a third-party company to provide engineering, development and test services related to the V-22 aircraft, as well as to produce the V-22 aircraft, under a number of separate contracts with the U.S. Government (V-22 Contracts). The alliance created by this agreement is not a legal entity and has no employees, no assets and no true operations. This agreement creates contractual rights and does not represent an entity in which we have an equity interest. We account for this alliance as a collaborative arrangement with Bell and the third-party company reporting costs incurred and revenues generated from transactions with the U.S. Government in each company’s respective income statement. Neither Bell nor the third-party company is considered to be the principal participant for the transactions recorded under this agreement. Profits on cost-plus contracts are allocated between Bell and the third-party company on a 50%-50% basis. Negotiated profits on fixed-price contracts are also allocated 50%-50%; however, Bell and the third-party company are each responsible for their own cost overruns and are entitled to retain any cost underruns. Based on the contractual arrangement established under the alliance, Bell accounts for its rights and obligations under the specific requirements of the V-22 Contracts allocated to Bell under the work breakdown structure. We account for all of our rights and obligations, including warranty, product and any contingent liabilities, under the specific requirements of the V-22 Contracts allocated to us under the agreement. Revenues and cost of sales reflect our performance under the V-22 Contracts with revenues recognized using the cost-to-cost method. We include all assets used in performance of the V-22 Contracts that we own and all liabilities arising from our obligations under the V-22 Contracts in our Consolidated Balance Sheets.
Use of Estimates
We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined.
Revenue Recognition
Revenue is recognized when control of the product or service promised under the contract is transferred to the customer either at a point in time (e.g., upon delivery) or over time (e.g., as we perform under the contract). We account for a contract when it has approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has commercial substance and collectability of consideration is probable. Contracts are reviewed to determine whether there is one or multiple performance obligations. A performance obligation is a promise to transfer a distinct product or service to a customer and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected consideration, or the transaction price, is allocated to each performance obligation identified in the contract based on the relative standalone selling price of each performance obligation. Revenue is then recognized for the transaction price allocated to the
performance obligation when control of the promised product or service underlying the performance obligation is transferred. Contract consideration is not adjusted for the effects of a significant financing component when, at contract inception, the period between when control transfers and when the customer will pay for that good or service is one year or less.
Revenue is classified as product or service revenue based on the predominant attributes of each performance obligation.
Commercial Contracts
The majority of our contracts with commercial customers have a single performance obligation as there is only one product or service promised or the promise to transfer the product or service is not distinct or separately identifiable from other promises in the contract. Revenue is primarily recognized at a point in time, which is generally when the customer obtains control of the asset upon delivery and customer acceptance. Contract modifications that provide for additional distinct products or services at the standalone selling price are treated as separate contracts.
For commercial fixed-wing aircraft, we contract with our customers to sell fully outfitted aircraft, which may include configuration options. The aircraft typically represents a single performance obligation and revenue is recognized upon customer acceptance and delivery. For commercial helicopters, our customers generally contract with us for fully functional basic configuration aircraft and control is transferred upon customer acceptance and delivery. At times, customers may separately contract with us for the installation of accessories and customization to the basic aircraft. If these contracts are entered into at or near the same time of the basic aircraft contract, we assess whether the contracts meet the criteria to be combined. For contracts that are combined, the basic aircraft and the accessories and customization are typically considered to be distinct, and therefore, are separate performance obligations. For these contracts, revenue is recognized on the basic aircraft upon customer acceptance and transfer of title and risk of loss, and on the accessories and customization, upon delivery and customer acceptance. We utilize observable prices to determine the standalone selling prices when allocating the transaction price to these performance obligations.
The transaction price for our commercial contracts reflects our estimate of returns, rebates and discounts, which are based on historical, current and forecasted information. Amounts billed to customers for shipping and handling are included in the transaction price and generally are not treated as separate performance obligations as these costs fulfill a promise to transfer the product to the customer. Taxes collected from customers and remitted to government authorities are recorded on a net basis.
We primarily provide standard warranty programs for products in our commercial businesses for periods that typically range from one year to five years. These assurance-type programs typically cannot be purchased separately and do not meet the criteria to be considered a performance obligation.
U.S. Government Contracts
Our contracts with the U.S. Government generally include the design, development, manufacture or modification of aerospace and defense products and related support services. These contracts, which also include those under the U.S. Government-sponsored foreign military sales program, accounted for approximately 27% of total revenues in 2025.  The customer typically contracts with us to provide a significant service of integrating a complex set of tasks and components into a single project or capability, which often results in the delivery of multiple units. Accordingly, the entire contract is accounted for as one performance obligation. In certain circumstances, a contract may include both production and support services, such as logistics and parts plans, which are considered to be distinct in the context of the contract and represent separate performance obligations. When a contract is separated into more than one performance obligation, we generally utilize the expected cost plus a margin approach to determine the standalone selling prices when allocating the transaction price.
Our contracts are frequently modified for changes in contract specifications and requirements. Most of our contract modifications with the U.S. Government are for products and services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as part of that existing contract. The effect of these contract modifications on our estimates is recognized using the cumulative catch-up method of accounting.
Contracts with the U.S. Government generally contain clauses that provide lien rights to work-in-process along with clauses that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work-in-process. Due to the continuous transfer of control to the U.S. Government, we recognize revenue over the time that we perform under the contract. Selecting the method to measure progress towards completion requires judgment and is based on the nature of the products or service to be provided. We generally use the cost-to-cost method to measure progress for our contracts because it best depicts the transfer of control to the customer that occurs as we incur costs on our contracts.  Under this measure, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the estimated costs at completion of the performance obligation, and revenue is recorded proportionally as costs are incurred.  
The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees or other provisions that can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and can be based upon customer discretion. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance, historical performance, and all other information that is reasonably available to us.
Total contract cost is estimated utilizing current contract specifications and expected engineering requirements. Contract costs typically are incurred over a period of several years, and the estimation of these costs requires substantial judgment. Our cost estimation process is based on the professional knowledge and experience of engineers and program managers along with finance professionals. We review and update our projections of costs quarterly or more frequently when circumstances significantly change.  
Approximately 53% of our 2025 revenues with the U.S. Government were under fixed-price and fixed-price incentive contracts. Under the typical payment terms of these contracts, the customer pays us either performance-based or progress payments. Performance-based payments represent interim payments of up to 90% of the contract price based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments of up to 80% of costs incurred as the work progresses. Because the customer retains a small portion of the contract price until completion of the contract, these contracts generally result in revenue recognized in excess of billings. Amounts billed and due from our customers are classified in Accounts receivable, net. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer. For cost-type contracts, we are generally paid for our actual costs incurred within a short period of time.
Finance Revenues
Finance revenues primarily include interest on finance receivables, finance lease earnings and portfolio gains/losses. We recognize interest using the interest method, which provides a constant rate of return over the terms of the receivables. Accrual of interest income is suspended if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically suspend the accrual of interest income for accounts that are contractually delinquent by more than three months unless collection is not doubtful. Cash payments on nonaccrual accounts, including finance charges, generally are applied to reduce the net investment balance. Once we conclude that the collection of all principal and interest is no longer doubtful, we resume the accrual of interest and recognize previously suspended interest income at the time either a) the loan becomes contractually current through payment according to the original terms of the loan, or b) if the loan has been modified, following a period of performance under the terms of the modification.
Contract Estimates
For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable.
In 2025, 2024 and 2023, our cumulative catch-up adjustments increased segment profit by $66 million, $31 million and $44 million, respectively, and net income by $50 million, $24 million and $34 million, respectively ($0.28, $0.12 and $0.17 per diluted share, respectively). Revenues increased by $66 million, $32 million and $42 million in 2025, 2024 and 2023, respectively, related to changes in profit booking rates for performance obligations satisfied in prior periods.
Contract Assets and Liabilities
Contract assets arise from contracts when revenue is recognized over time and the amount of revenue recognized exceeds the amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on events other than the passage of time and are included in Other current assets in the Consolidated Balance Sheets. Contract liabilities, which are primarily included in Other current liabilities, include deposits, largely from our commercial aviation customers, and billings in excess of revenue recognized.  
The incremental costs of obtaining a contract with a customer that is expected to be recovered is expensed as incurred when the period to be benefitted is one year or less.
Accounts Receivable, Net
Accounts receivable, net includes amounts billed to customers where the right to payment is unconditional. We maintain an allowance for credit losses for our commercial accounts receivable to provide for the estimated amount that will not be collected, even when the risk of loss is remote. The allowance is measured on a collective pool basis when similar risk characteristics exist and is established as a percentage of accounts receivable. We have identified pools with similar risk characteristics, based on customer and industry type and geographic location. The percentage is based on all available and relevant information including age of outstanding receivables and collateral value, if any, historical payment experience and loss history, current economic conditions, and, when reasonable and supportable factors exist, management’s expectation of future economic conditions. For amounts due from the U.S. Government, we have not established an allowance for credit losses as we have zero loss expectation based on a long history of no credit losses and the explicit guarantee of a sovereign entity.
Cash and Equivalents
Cash and equivalents consist of cash and short-term, highly liquid investments with original maturities of three months or less.
Inventories
Inventories are stated at the lower of cost or estimated realizable value. The majority of our inventories are valued using the last-in, first-out (LIFO) method, while the remaining inventories are generally valued using the first-in, first-out (FIFO) method.
Property, Plant and Equipment
Property, plant and equipment are recorded at cost and are depreciated primarily using the straight-line method. We capitalize expenditures for improvements that increase asset values and extend useful lives.  Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the carrying value of the asset exceeds the sum of the undiscounted expected future cash flows, the asset is written down to fair value.
Goodwill and Intangible Assets
Goodwill represents the excess of the consideration paid for the acquisition of a business over the fair values assigned to intangible and other net assets of the acquired business. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to an annual impairment test. We evaluate the recoverability of these assets in the fourth quarter of each year or more frequently if events or changes in circumstances, such as declines in sales, earnings or cash flows, or material adverse changes in the business climate, indicate a potential impairment.
For our goodwill impairment test, we calculate the fair value of each reporting unit using discounted cash flows.  A reporting unit represents the operating segment unless discrete financial information is prepared and reviewed by segment management for businesses one level below that operating segment, in which case such component is the reporting unit. In certain instances, we have aggregated components of an operating segment into a single reporting unit based on similar economic characteristics. The discounted cash flows incorporate assumptions for revenue growth rates, operating margins and discount rates that represent our best estimates of current and forecasted market conditions, cost structure, anticipated net cost reductions, and the implied rate of return that we believe a market participant would require for an investment in a business having similar risks and characteristics to the reporting unit being assessed. The fair value of our indefinite-lived intangible assets is primarily determined using the relief of royalty method based on forecasted revenues and royalty rates. If the estimated fair value of the reporting unit or indefinite-lived intangible asset exceeds the carrying value, there is no impairment. Otherwise, an impairment loss is recognized for the amount by which the carrying value exceeds the estimated fair value.
Acquired intangible assets with finite lives are subject to amortization. These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Amortization of these intangible assets is recognized over their estimated useful lives using a method that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. The majority of our intangible assets are amortized based on the cash flow streams used to value the assets, with the remaining assets amortized using the straight-line method.
Finance Receivables
Finance receivables primarily include loans provided to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters. Finance receivables are generally recorded at the amount of outstanding principal less allowance for credit losses.
We establish an allowance for credit losses to cover probable but specifically unknown losses existing in the portfolio. This allowance is established as a percentage of finance receivables categorized by pools with similar risk characteristics, such as collateral or customer type and geographic location. The percentage is based on a combination of factors, including historical loss experience, current delinquency and default trends, collateral values, current economic conditions, and, when reasonable and supportable factors exist, management’s expectation of future economic conditions.
For those finance receivables that do not have similar risk characteristics, including larger balance accounts specifically identified as impaired, a reserve is established against the carrying amount either based on comparing the expected future cash flows that are discounted at the finance receivable's effective interest rate, or based on the fair value of the underlying collateral if the finance receivable is collateral dependent. The expected future cash flows consider collateral value; financial performance and liquidity of our borrower; existence and financial strength of guarantors; estimated recovery costs, including legal expenses; and costs associated with the repossession and eventual disposal of collateral. When there is a range of potential outcomes, we perform multiple discounted cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence. The evaluation of our portfolio is inherently subjective, as it requires estimates, including the amount and timing of future cash flows expected to be received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual results. While our analysis is specific to each individual account, critical factors included in this analysis include industry valuation guides, age and physical condition of the collateral, payment history, and existence and financial strength of guarantors.
Finance receivables are charged off at the earlier of the date the collateral is repossessed or when management no longer deems the receivable collectible.  Repossessed assets are recorded at their fair value, less estimated cost to sell.
Pension and Postretirement Benefit Obligations
We maintain various pension and postretirement plans for our employees globally. Our pension plans include significant benefit obligations, which are calculated based on actuarial valuations. Key assumptions used in determining these obligations and related expenses include expected long-term rates of return on plan assets, discount rates and healthcare cost projections. We evaluate and update these assumptions annually in consultation with third-party actuaries and investment advisors. We also make assumptions regarding employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation increases.
For our year-end measurement, our defined benefit plan assets and obligations are measured as of the month-end date closest to our fiscal year-end. We recognize the overfunded or underfunded status of our pension and postretirement plans in the Consolidated Balance Sheets and recognize changes in the funded status of our defined benefit plans in comprehensive income (loss) in the year in which they occur. To the extent actuarial gains and losses exceed 10% of the higher of the market-related value of assets or the benefit obligation in a year, the excess is recognized as a component of accumulated other comprehensive income (loss) and is amortized into net periodic pension cost over the remaining service period of the active participants. For plans in which all or almost all of the plan’s participants are inactive, the amortization period is the remaining life expectancy of the inactive participants. This determination is made on a plan-by-plan basis.
Derivatives and Hedging Activities
We are exposed to market risk primarily from changes in currency exchange rates and interest rates. We do not hold or issue derivative financial instruments for trading or speculative purposes.  To manage the volatility relating to our exposures, we net these exposures on a consolidated basis to take advantage of natural offsets.  For the residual portion, we enter into various derivative transactions pursuant to our policies in areas such as counterparty exposure and hedging practices.  Credit risk related to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and through periodic settlements of positions.
All derivative instruments are reported at fair value in the Consolidated Balance Sheets.  Designation to support hedge accounting is performed on a specific exposure basis.  For financial instruments qualifying as cash flow hedges, we record changes in the fair value of derivatives (to the extent they are effective as hedges) in other comprehensive income (loss), net of deferred taxes. Changes in fair value of derivatives not qualifying as hedges are recorded in earnings.
Foreign currency denominated assets and liabilities are translated into U.S. dollars.  Adjustments from currency rate changes are recorded in the cumulative translation adjustment account in shareholders’ equity until the related foreign entity is sold or substantially liquidated.  
Leases
We identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset.  For our contracts that contain both lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs or other goods/services), we allocate the consideration in the contract to each component based on its standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the commencement date.  For these leases, we capitalize the lesser of a) the present value of the minimum lease payments over the lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to
use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option.  Operating leases are recognized as a single lease cost on a straight-line basis over the lease term, while finance lease cost is recognized separately as amortization and interest expense.  
Product Liabilities
We accrue for product liability claims and related defense costs when a loss is probable and reasonably estimable.  Our estimates are generally based on the specifics of each claim or incident and our best estimate of the probable loss using historical experience.
Environmental Liabilities and Asset Retirement Obligations
Liabilities for environmental matters are recorded on a site-by-site basis when it is probable that an obligation has been incurred and the cost can be reasonably estimated. We estimate our accrued environmental liabilities using currently available facts, existing technology, and presently enacted laws and regulations, all of which are subject to a number of factors and uncertainties. Our environmental liabilities are not discounted and do not take into consideration possible future insurance proceeds or significant amounts from claims against other third parties.
We have incurred asset retirement obligations primarily related to costs to remove and dispose of underground storage tanks and asbestos materials used in insulation, adhesive fillers and floor tiles. Currently, there is no legal requirement to remove these items and there is no plan to remodel the related facilities or otherwise cause the impacted items to require disposal. Since these asset retirement obligations are not probable, there is no related liability recorded in the Consolidated Balance Sheets.
Warranty Liabilities
For our assurance-type warranty programs, we estimate the costs that may be incurred and record a liability in the amount of such costs at the time product revenues are recognized.  Factors that affect this liability include the number of products sold, historical costs per claim, length of warranty period, contractual recoveries from vendors and historical and anticipated rates of warranty claims, including production and warranty patterns for new models.  We assess the adequacy of our recorded warranty liability periodically and adjust the amounts as necessary. Additionally, we may establish a warranty liability related to the issuance of aircraft service bulletins for aircraft no longer covered under the limited warranty programs.
Research and Development Costs
Our customer-funded research and development costs are charged directly to the related contracts, which primarily consist of U.S. Government contracts. In accordance with government regulations, we recover a portion of company-funded research and development costs through overhead rate charges on our U.S. Government contracts.  Research and development costs that are not reimbursable under a contract with the U.S. Government or another customer are charged to expense as incurred.
Income Taxes
The provision for income tax expense is calculated on reported income before income taxes based on current tax law and includes, in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Tax laws may require items to be included in the determination of taxable income at different times from when the items are reflected in the financial statements. Deferred tax balances reflect the effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and their tax bases, as well as from net operating losses and tax credit carryforwards, and are stated at enacted tax rates in effect for the year taxes are expected to be paid or recovered.
Deferred tax assets represent tax benefits for tax deductions or credits available in future years and require certain estimates and assumptions to determine whether it is more likely than not that all or a portion of the benefit will not be realized. The recoverability of these future tax deductions and credits is determined by assessing the adequacy of future expected taxable income from all sources, including the future reversal of existing taxable temporary differences, taxable income in carryback years, estimated future taxable income and available tax planning strategies. Should a change in facts or circumstances lead to a change in judgment about the ultimate recoverability of a deferred tax asset, we record or adjust the related valuation allowance in the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in income tax expense.  
We record tax benefits for uncertain tax positions based upon management’s evaluation of the information available at the reporting date.  To be recognized in the financial statements, the tax position must meet the more-likely-than-not threshold that the position will be sustained upon examination by the tax authority based on technical merits assuming the tax authority has full knowledge of all relevant information. For positions meeting this recognition threshold, the benefit is measured as the largest amount of benefit that meets the more-likely-than-not threshold to be sustained. We periodically evaluate these tax positions based on the latest available information.  For tax positions that do not meet the threshold requirement, we recognize net tax-related interest and penalties for continuing operations in income tax expense.
v3.25.4
Goodwill and Intangible Assets
 12 Months Ended
Jan. 03, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
The changes in the carrying amount of goodwill by segment are as follows:
(In millions)Textron
Aviation		BellTextron
Systems		IndustrialTextron eAviationTotal
Balance at December 30, 2023$633 $37 $1,010 $470 $145 $2,295 
Acquisitions— — — — 10 10 
Foreign currency translation(1)— — (7)(9)(17)
Balance at December 28, 2024632 37 1,010 463 146 2,288 
Foreign currency translation1 — — 13 19 33 
Balance at January 3, 2026$633 $37 $1,010 $476 $165 $2,321 
Intangible Assets
Our intangible assets are summarized below:
January 3, 2026December 28, 2024
(Dollars in millions)Weighted-Average
Amortization
Period (in years)		Gross
Carrying
Amount		Accumulated
Amortization		NetGross
Carrying
Amount		Accumulated
Amortization		Net
Trade names and trademarks18$201 $(12)$189 $199 $(11)$188 
Patents and technology15515 (387)128 509 (360)149 
Customer relationships and
   contractual agreements		15358 (337)21 356 (331)25 
Total$1,074 $(736)$338 $1,064 $(702)$362 
Trade names and trademarks in the table above include $169 million of indefinite-lived intangible assets at both January 3, 2026 and December 28, 2024. Amortization expense totaled $32 million, $34 million and $39 million, in 2025, 2024 and 2023, respectively. Amortization expense is estimated to be approximately $29 million, $28 million, $27 million, $26 million and $9 million in 2026, 2027, 2028, 2029 and 2030, respectively.
v3.25.4
Accounts Receivable and Finance Receivables
 12 Months Ended
Jan. 03, 2026
Receivables [Abstract]  
Accounts Receivable and Finance Receivables Accounts Receivable and Finance Receivables
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)January 3,
2026		December 28,
2024
Commercial$690 $738 
U.S. Government contracts149 230 
839 968 
Allowance for credit losses(16)(19)
Total$823 $949 
Finance Receivables
Finance receivables are presented in the following table:
(In millions)January 3,
2026		December 28,
2024
Finance receivables$593 $622 
Allowance for credit losses(19)(19)
Total finance receivables, net$574 $603 
Finance receivables primarily includes loans provided to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters. These loans generally have initial terms ranging from five years to twelve years and amortization terms ranging from five years to fifteen years; the average loan balance was $2.1 million at January 3, 2026. Loans generally require the customer to pay a significant down payment, along with periodic scheduled principal payments that reduce the outstanding balance through the term of the loan. Our finance receivables are diversified across geographic region and borrower industry. At January 3,
2026, 73% of our finance receivables were distributed internationally and 27% throughout the U.S., compared with 58% and 42%, respectively, at December 28, 2024.
Finance Receivable Portfolio Quality
We internally assess the quality of our finance receivables based on a number of key credit quality indicators and statistics such as delinquency, loan balance to estimated collateral value and the financial strength of individual borrowers and guarantors.  Because many of these indicators are difficult to apply across an entire class of receivables, we evaluate individual loans on a quarterly basis and classify these loans into three categories based on the key credit quality indicators for the individual loan. These three categories are performing, watchlist and nonaccrual.
We classify finance receivables as nonaccrual if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically classify accounts as nonaccrual once they are contractually delinquent by more than three months unless collection of principal and interest is not doubtful. Accounts are classified as watchlist when credit quality indicators have deteriorated as compared with typical underwriting criteria, and we believe collection of full principal and interest is probable but not certain. All other finance receivables that do not meet the watchlist or nonaccrual categories are classified as performing.
We measure delinquency based on the contractual payment terms of our finance receivables.  In determining the delinquency aging category of an account, any/all principal and interest received is applied to the most past-due principal and/or interest amounts due. If a significant portion of the contractually due payment is delinquent, the entire finance receivable balance is reported in accordance with the most past-due delinquency aging category.
Finance receivables categorized based on the credit quality indicators and by delinquency aging category are summarized as follows:
(Dollars in millions)January 3,
2026		December 28,
2024
Performing$578 $612 
Watchlist13 — 
Nonaccrual2 10 
Nonaccrual as a percentage of finance receivables0.34%1.61%
Current and less than 31 days past due$584 $609 
31-60 days past due9 13 
61-90 days past due— — 
Over 90 days past due— — 
60+ days contractual delinquency as a percentage of finance receivables—%—%
At January 3, 2026, 63% of our performing finance receivables were originated since the beginning of 2023 and 18% were originated from 2020 to 2022 with the remainder prior to 2020. For finance receivables categorized as watchlist, 100% were originated from 2023 to 2024, and for nonaccrual, 100% were originated prior to 2020.
On a quarterly basis, we evaluate individual larger balance accounts for impairment.  A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality indicators described above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of principal and interest remains probable, but the account’s original terms have been, or are expected to be, significantly modified.  If the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification. Our impaired finance receivables were insignificant at January 3, 2026 and December 28, 2024.
v3.25.4
Inventories
 12 Months Ended
Jan. 03, 2026
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories are composed of the following:
(In millions)January 3,
2026		December 28,
2024
Finished goods$1,104 $1,138 
Work in process2,065 1,769 
Raw materials and components1,109 1,164 
Total$4,278 $4,071 
At January 3, 2026, 71% of inventories were valued using the LIFO method, compared with 69% at December 28, 2024. Inventories valued at LIFO cost would have been higher by approximately $1.1 billion and $877 million, at January 3, 2026 and December 28, 2024, respectively, if they had been valued using the FIFO method.
v3.25.4
Property, Plant and Equipment, Net
 12 Months Ended
Jan. 03, 2026
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net Property, Plant and Equipment, Net
Our Manufacturing group’s property, plant and equipment, net is composed of the following:
(Dollars in millions)Useful Lives
(in years)		January 3,
2026		December 28,
2024
Land, buildings and improvements2-40$2,514 $2,364 
Machinery and equipment2-205,860 5,636 
8,374 8,000 
Accumulated depreciation and amortization(5,784)(5,471)
Total$2,590 $2,529 
The Manufacturing group's depreciation expense totaled $365 million, $344 million and $353 million in 2025, 2024 and 2023, respectively. Property, plant and equipment, net includes non-cash activity of $51 million in 2025, reflecting property, plant and equipment acquired but not yet paid for. This non-cash activity has been excluded from the relevant line items on the Consolidated Statements of Cash Flows. Non-cash property, plant and equipment activity for 2024 and 2023 was not significant.
v3.25.4
Accounts Payable and Liabilities
 12 Months Ended
Jan. 03, 2026
Other Liabilities Disclosure [Abstract]  
Accounts Payable and Liabilities Accounts Payable and Liabilities
Accounts Payable
Supplier Financing Arrangement
We have a financing arrangement with one of our suppliers for a maximum amount of $200 million that extends payment terms for up to 190 days from the receipt of goods and provides for the supplier to be paid by a financial institution earlier than maturity. This financing arrangement expires in April 2027. At January 3, 2026 and December 28, 2024, the amount due under the supplier financing arrangement was $108 million and $50 million, respectively. During 2025, the amounts added under this arrangement totaled $279 million and the amounts settled totaled $221 million.
Other Current Liabilities
The other current liabilities of our Manufacturing group are summarized below:
(In millions)January 3,
2026		December 28,
2024
Contract liabilities$1,897 $1,734 
Salaries, wages and employer taxes442 456 
Current portion of warranty and product repair and maintenance program liabilities138 177 
Other686 727 
Total$3,163 $3,094 
Warranty Liability
Changes in our current and non-current warranty liability are as follows:
(In millions)202520242023
Balance at beginning of year$173 $172 $149 
Provision82 79 76 
Changes to estimates35 (2)13 
Settlements(89)(72)(69)
Other*(18)(4)3 
Balance at end of year$183 $173 $172 
* Other includes business dispositions and currency translation adjustments.
v3.25.4
Leases
 12 Months Ended
Jan. 03, 2026
Leases [Abstract]  
Leases Leases
We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 25 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised.
Operating lease cost totaled $73 million, $74 million and $69 million in 2025, 2024 and 2023, respectively. Cash paid for operating lease liabilities approximated the lease expense and is classified in cash flows from operating activities. Noncash transactions related to operating leases totaled $82 million, $49 million and $54 million in 2025, 2024 and 2023, respectively, reflecting the recognition of operating lease assets and liabilities for new or modified leases and changes from the reassessment of lease options. In 2024, non-cash transactions included the recognition of a $72 million asset and liability related to a new finance lease that matures in 2028. Finance lease, variable and short-term lease costs were not significant.
Balance sheet and other information related to our leases is as follows:
(Dollars in millions)January 3,
2026		December 28,
2024
Operating leases:
Other assets$390 $360 
Other current liabilities58 55 
Other liabilities346 316 
Weighted-average remaining lease term (in years)9.510.0
Weighted-average discount rate4.97%4.84%
Finance leases:
Property, plant and equipment, less accumulated amortization
  of $14 million and $9 million, respectively
$95 $95 
Long-term debt, including current portion100 97 
Weighted-average remaining lease term (in years)5.95.9
Weighted-average discount rate6.63%6.72%
At January 3, 2026, maturities of our operating lease liabilities on an undiscounted basis totaled $74 million for 2026, $65 million for 2027, $60 million for 2028, $55 million for 2029, $48 million for 2030 and $213 million thereafter.
Leases Leases
We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 25 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised.
Operating lease cost totaled $73 million, $74 million and $69 million in 2025, 2024 and 2023, respectively. Cash paid for operating lease liabilities approximated the lease expense and is classified in cash flows from operating activities. Noncash transactions related to operating leases totaled $82 million, $49 million and $54 million in 2025, 2024 and 2023, respectively, reflecting the recognition of operating lease assets and liabilities for new or modified leases and changes from the reassessment of lease options. In 2024, non-cash transactions included the recognition of a $72 million asset and liability related to a new finance lease that matures in 2028. Finance lease, variable and short-term lease costs were not significant.
Balance sheet and other information related to our leases is as follows:
(Dollars in millions)January 3,
2026		December 28,
2024
Operating leases:
Other assets$390 $360 
Other current liabilities58 55 
Other liabilities346 316 
Weighted-average remaining lease term (in years)9.510.0
Weighted-average discount rate4.97%4.84%
Finance leases:
Property, plant and equipment, less accumulated amortization
  of $14 million and $9 million, respectively
$95 $95 
Long-term debt, including current portion100 97 
Weighted-average remaining lease term (in years)5.95.9
Weighted-average discount rate6.63%6.72%
At January 3, 2026, maturities of our operating lease liabilities on an undiscounted basis totaled $74 million for 2026, $65 million for 2027, $60 million for 2028, $55 million for 2029, $48 million for 2030 and $213 million thereafter.
v3.25.4
Debt and Credit Facilities
 12 Months Ended
Jan. 03, 2026
Debt Disclosure [Abstract]  
Debt and Credit Facilities Debt and Credit Facilities
Our debt is summarized in the table below:
(In millions)January 3,
2026		December 28,
2024
Manufacturing group
3.875% due 2025
$— $350 
4.00% due 2026*
— 350 
3.65% due 2027
350 350 
3.375% due 2028
300 300 
3.90% due 2029
300 300 
3.00% due 2030
650 650 
2.45% due 2031
500 500 
6.10% due 2033
350 350 
5.50% due 2035
500 — 
4.95% due 2036
500 — 
Other (weighted-average rate of 6.08% and 5.87%, respectively)
89 97 
Total Manufacturing group debt$3,539 $3,247 
Less: Current portion of long-term debt(5)(357)
Total Long-term debt$3,534 $2,890 
Finance group
Variable-rate note due 2028 (weighted-average rate of 5.04% and 5.70%, respectively)
$25 $25 
Fixed-rate note due 2027 (4.40%)
50 50 
Floating Rate Junior Subordinated Notes due 2067 (5.85% and 6.52%, respectively)
264 264 
Other— 2 
Total Finance group debt$339 $341 
* On December 31, 2025, we repaid our $350 million 4.00% notes due in March 2026.
The following table shows required principal payments during the next five years on debt outstanding at January 3, 2026:
(In millions)20262027202820292030
Manufacturing group$5 $355 $375 $301 $651 
Finance group— 50 25 — — 
Total$5 $405 $400 $301 $651 
On October 16, 2025, Textron entered into a senior unsecured revolving credit facility for an aggregate principal amount of $1.0 billion, of which $100 million is available for the issuance of letters of credit. We may elect to increase the aggregate amount of commitments under the facility to up to $1.3 billion by designating an additional lender or by an existing lender agreeing to increase its commitment. The facility expires in October 2030 and provides for two one-year extensions at our option with the consent of lenders representing a majority of the commitments under the facility. The new facility replaces the prior 5-year facility which was scheduled to expire in October 2027. At January 3, 2026 and December 28, 2024, there were no amounts borrowed against either facility. At January 3, 2026, there were no letters of credit issued and outstanding under the new facility, and at December 28, 2024, there was a $9 million letter of credit issued and outstanding under the prior facility.
Floating Rate Junior Subordinated Notes
The Finance group’s $264 million of Floating Rate Junior Subordinated Notes are unsecured and rank junior to all of its existing and future senior debt. The notes mature on February 15, 2067; however, we have the right to redeem the notes at par at any time and we are obligated to redeem the notes beginning on February 15, 2042. Interest is variable at the three-month CME Term Secured Overnight Financing Rate + 1.99661%.
Support Agreement
Under a Support Agreement between Textron and TFC, Textron is required to maintain a controlling interest in TFC. The agreement, as amended in December 2015, also requires Textron to ensure that TFC maintains fixed charge coverage of no less than 125% and consolidated shareholders' equity of no less than $125 million. There were no cash contributions required to be paid to TFC in 2025, 2024 and 2023 to maintain compliance with the support agreement.
v3.25.4
Derivative Instruments and Fair Value Measurements
 12 Months Ended
Jan. 03, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Fair Value Measurements Derivative Instruments and Fair Value Measurements
We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  We prioritize the assumptions that market participants would use in pricing the asset or liability into a three-tier fair value hierarchy.  This fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs in which little or no market data exist, requiring companies to develop their own assumptions.  Observable inputs that do not meet the criteria of Level 1, which include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets and liabilities in markets that are not active, are categorized as Level 2.  Level 3 inputs are those that reflect our estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Valuation techniques for assets and liabilities measured using Level 3 inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data.  These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain.
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
We manufacture and sell our products in a number of countries throughout the world, and, therefore, we are exposed to movements in foreign currency exchange rates. We primarily utilize foreign currency exchange contracts with maturities of no more than three years to manage this volatility. These contracts qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales, inventory purchases and overhead expenses. Net gains and losses recognized in earnings and Accumulated other comprehensive income (loss) on cash flow hedges, including gains and losses related to hedge ineffectiveness, were not significant in the periods presented.  
Our foreign currency exchange contracts are measured at fair value using the market method valuation technique.  The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers.  These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2. At January 3, 2026 and December 28, 2024, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $477 million and $464 million, respectively. At January 3, 2026, the fair value amounts of our foreign currency exchange contracts were a $6 million asset and a $10 million liability. At December 28, 2024, the fair value amount of our foreign currency exchange contracts was a $5 million asset and a $19 million liability.
Our Finance group enters into interest rate swap agreements to mitigate certain exposures to fluctuations in interest rates. By using these contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. The fair value of these interest rate swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2. The fair value of our outstanding interest rate swap agreements was a $1 million and an $8 million asset at January 3, 2026 and December 28, 2024, respectively.
At January 3, 2026 and December 28, 2024, our Finance group had interest rate swap agreements related to our Floating Rate Junior Subordinated Notes for an aggregate notional amount of $264 million that effectively converts the variable-rate interest for these Notes to a weighted-average fixed rate of 5.16% and 5.20%, respectively. At January 3, 2026, these agreements have maturities ranging from August 2026 to August 2030. At December 28, 2024, we also had an interest rate swap agreement with a notional amount of $25 million that matured in June 2025 and effectively converted variable-rate interest on a term loan to a fixed rate of 4.13%.
Assets and Liabilities Not Recorded at Fair Value
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
January 3, 2026December 28, 2024
(In millions)Carrying
Value		Estimated
Fair Value		Carrying
Value		Estimated
Fair Value
Manufacturing group
Debt, excluding leases$(3,459)$(3,406)$(3,164)$(2,989)
Finance group
Finance receivables, excluding leases493 528 439 454 
Debt(339)(312)(341)(311)
Fair value for the Manufacturing group debt is determined using market observable data for similar transactions (Level 2).  The fair value for the Finance group debt was determined primarily based on discounted cash flow analyses using observable market inputs from debt with similar duration, subordination and credit default expectations (Level 2). Fair value estimates for finance receivables were determined based on internally developed discounted cash flow models primarily utilizing significant unobservable inputs (Level 3), which include estimates of the rate of return, financing cost, capital structure and/or discount rate expectations of current market participants combined with estimated loan cash flows based on credit losses, payment rates and expectations of borrowers’ ability to make payments on a timely basis.
v3.25.4
Shareholders' Equity
 12 Months Ended
Jan. 03, 2026
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
Capital Stock
We have authorization for 15 million shares of preferred stock with a par value of $0.01 and 500 million shares of common stock with a par value of $0.125.  Outstanding common stock activity is presented below:
(In thousands)202520242023
Balance at beginning of year182,964 192,898 206,161 
Share repurchases(10,650)(12,890)(16,169)
Share-based compensation activity1,996 2,956 2,906 
Balance at end of year174,310 182,964 192,898 
Earnings Per Share
We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period.  Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options.
The weighted-average shares outstanding for basic and diluted EPS are as follows:
(In thousands)202520242023
Basic weighted-average shares outstanding178,895 188,318 199,719 
Dilutive effect of stock options1,363 1,989 2,055 
Diluted weighted-average shares outstanding180,258 190,307 201,774 
In 2025, 2024 and 2023, stock options to purchase 2.0 million, 0.9 million and 1.5 million shares, respectively, of common stock were excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive.
Accumulated Other Comprehensive Income (Loss)
The components of Accumulated other comprehensive income (loss) are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments		Foreign
Currency
Translation
Adjustments		Deferred
Gains (Losses)
on Hedge
Contracts		Accumulated
Other
Comprehensive
Income (Loss)
Balance at December 30, 2023$(598)$(49)$3 $(644)
Other comprehensive income before reclassifications418 (74)(9)335 
Reclassified from Accumulated other comprehensive income (loss)1 3 1 5 
Balance at December 28, 2024$(179)$(120)$(5)$(304)
Other comprehensive income before reclassifications299 134 (2)431 
Reclassified from Accumulated other comprehensive income (loss)(1)(2)5 2 
Balance at January 3, 2026$119 $12 $(2)$129 
Other Comprehensive Income (Loss)
The before and after-tax components of other comprehensive income (loss) are presented below:
202520242023
(In millions)Pre-Tax
Amount		Tax
(Expense)
Benefit		After-
Tax
Amount		Pre-Tax
Amount		Tax
(Expense)
Benefit		After-
Tax
Amount		Pre-Tax
Amount		Tax
(Expense)
Benefit		After-
Tax
Amount
Pension and postretirement benefits
  adjustments:
Unrealized gains (losses)$430 $(108)$322 $568 $(136)$432 $(102)$25 $(77)
Amortization of net actuarial gain*(9)2 (7)(5)1 (4)(7)2 (5)
Amortization of prior service cost*9 (3)6 8 (3)5 8 (3)5 
Recognition of prior service cost(29)6 (23)(19)5 (14)(7)2 (5)
Pension and postretirement benefits
  adjustments, net		401 (103)298 552 (133)419 (108)26 (82)
Foreign currency translation adjustments:
Foreign currency translation adjustments134 — 134 (74)— (74)45 — 45 
Business disposition(2)— (2)— — — — — — 
Other— — — 3 — 3 — — — 
Foreign currency translation adjustments, net132 — 132 (71)— (71)45 — 45 
Deferred gains (losses) on hedge contracts:
Current deferrals(2)— (2)(11)2 (9)(2)1 (1)
Reclassification adjustments6 (1)5 2 (1)1 8 (2)6 
Deferred gains (losses) on hedge
  contracts, net		4 (1)3 (9)1 (8)6 (1)5 
Total$537 $(104)$433 $472 $(132)$340 $(57)$25 $(32)
* These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 14 for additional information.
v3.25.4
Segment Financial Information
 12 Months Ended
Jan. 03, 2026
Segment Reporting [Abstract]  
Segment Financial Information Segment Financial Information
For the periods presented, we operate in, and report financial information for, the following six operating segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation and Finance. The accounting policies of these segments are the same as those described in Note 1. Effective January 4, 2026, the beginning of our 2026 fiscal year, the business activities of the Textron eAviation segment were realigned within Textron's other operating segments resulting in the elimination of the Textron eAviation segment as a separate reporting segment. Additional information regarding this segment change is provided below.
Textron Aviation products and services include Cessna Citation jets, Beechcraft and Cessna turboprop aircraft, military trainer and defense aircraft, piston engine aircraft, advanced flight training devices, aftermarket parts and maintenance, inspection and repair services. Textron Aviation has a diverse customer base including fractional aircraft businesses, charter and fleet operators, corporate aviation, individual buyers, training schools, airlines, and special mission, military and government operators.
Bell products and services include development of the MV-75 tiltrotor aircraft, the V-22 tiltrotor aircraft, advanced military helicopters, and aftermarket parts and support services to the U.S. and non-U.S. governments. Bell also supplies commercial helicopters and aftermarket parts and services to corporate, private, law enforcement, utility, public safety and emergency medical helicopter operators, and U.S. and foreign governments.
Textron Systems products and services include electronic systems and solutions, advanced marine craft, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, unmanned aircraft systems, and both manned and unmanned armored and specialty vehicles for U.S. and international military, government and commercial customers.
Industrial products and markets include the following:
•Kautex products include blow-molded plastic fuel systems, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, plastic tanks for selective catalytic reduction systems and battery systems for use in electric vehicles, from hybrid to full battery-powered, that are sold to automobile OEMs; and
•Textron Specialized Vehicles products include golf cars, utility vehicles, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment and specialized turf-care vehicles that are marketed primarily to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users.
The Textron eAviation segment has been focused on research and development initiatives related to sustainable aviation solutions and also manufactures a family of light aircraft and gliders with both electric and combustion engines. Under the segment realignment mentioned above, effective at the beginning of our 2026 fiscal year, a significant part of Textron eAviation, including Pipistrel, will become part of the Textron Aviation segment to enable the business to more effectively leverage the development, manufacturing and sales expertise at Textron Aviation. In addition, Textron eAviation’s manned and unmanned products for military applications and related research and development activities will be included in the results of the Textron Systems segment, which is best suited to provide more direct access to the targeted customer base for these products. Lastly, certain Textron eAviation research and development activities encompassing digital flight control and air vehicle management systems, which we expect will benefit several of our segments, will be reported within corporate expenses.
The Finance segment provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters.
Segment profit is an important financial measure. Through 2025, Textron’s Chief Operating Decision Maker (CODM) was its Chairman and Chief Executive Officer, Scott Donnelly. Effective January 4, 2026, the beginning of our 2026 fiscal year, Lisa Atherton became Textron's President and Chief Executive Officer, and CODM, succeeding Mr. Donnelly. Our CODM utilizes segment profit to evaluate the performance of the segments to establish management's compensation and for decision-making purposes, including the allocation of capital resources between segments. Segment profit for the manufacturing segments excludes the non-service components of pension and postretirement income, net; LIFO inventory provision; intangible asset amortization; interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; special charges; and the inventory valuation charge to write down production-related powersports inventory discussed in Note 15. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.
Our revenues and expenses by segment are provided below:
(In millions)Textron AviationBellTextron SystemsIndustrialTextron eAviationFinanceTotal
2025
Revenues$5,955 $4,282 $1,247 $3,213 $27 $75 $14,799 
Costs and expenses:
Cost of sales4,637 3,537 939 2,733 27 — 11,873 
Research and development costs214 153 45 67 42 — 521 
Selling and administrative expense410 229 88 268 21 8 1,024 
Interest expense, net— — — — — 18 18 
Segment profit (loss)$694 $363 $175 $145 $(63)$49 $1,363 
2024
Revenues$5,284 $3,579 $1,241 $3,515 $33 $50 $13,702 
Costs and expenses:
Cost of sales4,102 2,899 929 2,993 29 — 10,952 
Research and development costs208 97 51 72 63 — 491 
Selling and administrative expense408 213 107 299 17 (4)1,040 
Interest expense, net— — — — — 19 19 
Segment profit (loss)$566 $370 $154 $151 $(76)$35 $1,200 
2023
Revenues$5,373 $3,147 $1,235 $3,841 $32 $55 $13,683 
Costs and expenses:
Cost of sales4,116 2,392 925 3,221 35 — 10,689 
Research and development costs199 192 53 80 46 — 570 
Selling and administrative expense409 243 110 312 14 (6)1,082 
Interest expense, net— — — — — 15 15 
Segment profit (loss)$649 $320 $147 $228 $(63)$46 $1,327 
A reconciliation of segment profit to income from continuing operations before income taxes is presented below:
(In millions)202520242023
Segment profit$1,363 $1,200 $1,327 
Unallocated amounts:
Corporate expenses and other, net(149)(116)(143)
Interest expense, net for Manufacturing group(108)(78)(62)
LIFO inventory provision(199)(176)(107)
Intangible asset amortization(32)(34)(39)
Special charges*(4)(78)(126)
Inventory charge*— (38)— 
Non-service components of pension and postretirement income, net266 263 237 
Income from continuing operations before income taxes$1,137 $943 $1,087 
* See Note 15 for additional information.
Other information by segment is provided below:
AssetsCapital ExpendituresDepreciation and Amortization
(In millions)January 3,
2026		December 28,
2024		202520242023202520242023
Textron Aviation$4,907 $4,624 $140 $136 $138 $167 $164 $160 
Bell3,132 2,992 132 122 119 103 86 89 
Textron Systems2,107 2,036 41 40 48 48 48 41 
Industrial2,305 2,378 68 62 91 68 70 89 
Textron eAviation313 286 1 4 4 8 7 7 
Finance677 680 — — — — — — 
Corporate4,688 3,842 1 — 2 7 7 9 
Total$18,129 $16,838 $383 $364 $402 $401 $382 $395 
At January 3, 2026 and December 28, 2024, 85% and 86%, respectively, of our property, plant and equipment, net was located in the United States.
v3.25.4
Revenues
 12 Months Ended
Jan. 03, 2026
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Disaggregation of Revenues
Our revenues disaggregated by major product type are presented below:
(In millions)202520242023
Aircraft$3,922 $3,374 $3,577 
Aftermarket parts and services2,033 1,910 1,796 
Textron Aviation$5,955 $5,284 $5,373 
Military aircraft and support programs2,618 2,048 1,701 
Commercial helicopters, parts and services1,664 1,531 1,446 
Bell$4,282 $3,579 $3,147 
Textron Systems$1,247 $1,241 $1,235 
Fuel systems and functional components1,883 1,891 1,954 
Specialized vehicles1,330 1,624 1,887 
Industrial$3,213 $3,515 $3,841 
Textron eAviation$27 $33 $32 
Finance$75 $50 $55 
Total revenues$14,799 $13,702 $13,683 
Our revenues for our segments by customer type and geographic location are presented below:
(In millions)Textron
Aviation		BellTextron
Systems		IndustrialTextron eAviationFinanceTotal
2025
Customer type:
Commercial$5,579 $1,634 $306 $3,185 $27 $75 $10,806 
U.S. Government376 2,648 941 28 — — 3,993 
Total revenues$5,955 $4,282 $1,247 $3,213 $27 $75 $14,799 
Geographic location:
United States$4,281 $3,156 $1,129 $1,668 $14 $35 $10,283 
Europe467 122 43 649 7 1 1,289 
South and Latin America628 281 7 336 2 26 1,280 
Other international579 723 68 560 4 13 1,947 
Total revenues$5,955 $4,282 $1,247 $3,213 $27 $75 $14,799 
2024
Customer type:
Commercial$4,985 $1,490 $292 $3,482 $33 $50 $10,332 
U.S. Government299 2,089 949 33 — — 3,370 
Total revenues$5,284 $3,579 $1,241 $3,515 $33 $50 $13,702 
Geographic location:
United States$4,019 $2,644 $1,112 $1,865 $19 $17 $9,676 
Europe371 85 45 693 11 5 1,210 
South and Latin America336 201 12 306 — 19 874 
Other international558 649 72 651 3 9 1,942 
Total revenues$5,284 $3,579 $1,241 $3,515 $33 $50 $13,702 
2023
Customer type:
Commercial$5,155 $1,407 $282 $3,819 $32 $55 $10,750 
U.S. Government218 1,740 953 22 — — 2,933 
Total revenues$5,373 $3,147 $1,235 $3,841 $32 $55 $13,683 
Geographic location:
United States$3,873 $2,228 $1,103 $2,067 $17 $17 $9,305 
Europe432 149 54 766 11 2 1,414 
South and Latin America284 224 12 300 1 21 842 
Other international784 546 66 708 3 15 2,122 
Total revenues$5,373 $3,147 $1,235 $3,841 $32 $55 $13,683 
Remaining Performance Obligations
Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our contracts that we expect to recognize as revenue in future periods when we perform under the contracts.  These remaining obligations exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At January 3, 2026, we had $18.8 billion in remaining performance obligations of which we expect to recognize revenues of approximately 80% through 2027, an additional 15% through 2029, and the balance thereafter.  
Contract Assets and Liabilities
Assets and liabilities related to our contracts with customers are reported on a contract-by-contract basis at the end of each reporting period. At January 3, 2026 and December 28, 2024, contract assets totaled $451 million and $345 million, respectively, and contract liabilities totaled $2.1 billion and $1.9 billion, respectively, reflecting timing differences between revenues recognized, billings and payments from customers. During 2025, 2024 and 2023, we recognized revenues of $1.2 billion, $1.1 billion and $953 million, respectively, that were included in the contract liability balance at the beginning of each year.
v3.25.4
Share-Based Compensation
 12 Months Ended
Jan. 03, 2026
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
Under our 2024 Long-Term Incentive Plan (the 2024 Plan), which replaced our 2015 Long-Term Incentive Plan (the 2015 Plan) in April 2024, we have authorization to provide awards to selected employees and non-employee directors in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, performance stock, performance share units and other awards. A maximum of 10 million shares is authorized for issuance for all purposes under the 2024 Plan plus any shares that become available upon cancellation, forfeiture or expiration of awards granted under the 2015 Plan. Under the 2024 Plan, the maximum number of shares that may be issued pursuant to awards payable in shares, such as restricted stock, restricted stock units, performance stock, performance share units, or other awards is 3.127 million, plus any shares that become available upon cancellation, forfeiture or expiration of such awards which were granted under the 2015 Plan. For 2025, 2024 and 2023, the awards granted under these plans primarily included stock options, restricted stock units and performance share units.
Share-based compensation costs are reflected primarily in selling and administrative expense.  Compensation expense included in net income for our share-based compensation plans is as follows:
(In millions)202520242023
Compensation expense$81 $66 $94 
Income tax benefit(20)(16)(23)
Total compensation expense included in net income$61 $50 $71 
Compensation cost for awards subject only to service conditions that vest ratably is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award utilizing an estimated forfeiture rate. Our awards include continued vesting provisions for retirement eligible employees. Upon reaching retirement eligibility, the service requirement for these individuals is considered to have been satisfied and compensation expense for future awards is recognized on the date of the grant.
As of January 3, 2026, we had not recognized $27 million of total compensation costs associated with unvested awards subject only to service conditions. We expect to recognize compensation expense for these awards over a weighted-average period of approximately two years. We typically grant stock appreciation rights to selected non-U.S. employees. At January 3, 2026, outstanding stock appreciation rights totaled 386,329 with a weighted-average exercise price of $68.05 and a weighted-average remaining contractual life of 6.2 years; these units had an intrinsic value of $7 million, compared to $6 million at December 28, 2024.
Stock Options
Stock option compensation expense was $24 million, $25 million and $23 million in 2025, 2024 and 2023, respectively. Options to purchase our shares have a maximum term of ten years and generally vest ratably over a three-year period. Stock option compensation cost is calculated under the fair value approach using the Black-Scholes option-pricing model to determine the fair value of options granted on the date of grant. The expected volatility used in this model is based on historical volatilities and implied volatilities from traded options on our common stock. The expected term is based on historical option exercise data, which is adjusted to reflect any anticipated changes in expected behavior.
We grant options annually on the first day of March. The assumptions used in our option-pricing model for these grants and the weighted-average fair value for these options are as follows:
202520242023
Fair value of options at grant date$22.01$27.69$23.83
Dividend yield0.1%0.1%0.1%
Expected volatility25.1%27.2%29.4%
Risk-free interest rate4.1%4.3%4.2%
Expected term (in years)4.84.84.8
The stock option activity during 2025 is provided below:
(Options in thousands)Number of
Options		Weighted-
Average
Exercise Price
Outstanding at beginning of year6,649 $61.70 
Granted1,022 74.73 
Exercised(809)(52.23)
Forfeited or expired(70)(79.25)
Outstanding at end of year6,792 $64.61 
Exercisable at end of year4,791 $58.58 
At January 3, 2026, our outstanding options had an aggregate intrinsic value of $154 million and a weighted-average remaining contractual life of 5.4 years.  Our exercisable options had an aggregate intrinsic value of $137 million and a weighted-average remaining contractual life of 4.2 years at January 3, 2026.  The total intrinsic value of options exercised during 2025, 2024 and 2023 was $24 million, $78 million and $50 million, respectively.
Restricted Stock Units
We issue restricted stock units that include the right to receive dividend equivalents upon vesting and are settled in either cash or stock. Grants of restricted stock units vest in full on the third anniversary of the grant date. Compensation cost is determined using the fair value of these units based on the trading price of our common stock. For units payable in stock, we use the trading price on the grant date, while units payable in cash are remeasured using the price at each reporting period date.  
The 2025 activity for restricted stock units is provided below:
Units Payable in StockUnits Payable in Cash
(Shares/Units in thousands)Number of
Shares		Weighted-
Average Grant
Date Fair Value		Number of
Units		Weighted-
Average Grant
Date Fair Value
Outstanding at beginning of year, nonvested331 $75.50 631 $77.75 
Granted129 73.07 259 74.72 
Vested(101)(70.65)(195)(71.14)
Forfeited— — (22)(78.39)
Outstanding at end of year, nonvested359 $75.99 673 $78.48 
The fair value of the restricted stock unit awards that vested and/or amounts paid under these awards is as follows:
(In millions)202520242023
Fair value of awards vested$22 $42 $45 
Cash paid15 33 34 
Performance Share Units
The fair value of share-based compensation awards accounted for as liabilities includes performance share units, which are generally paid in cash in the first quarter of the year following vesting. Performance share units are subject to performance goals set at the beginning of the three-year performance period and vest at the end of the performance period. These units are remeasured to fair value at the end of each reporting period based on the trading price of our common stock and the number of units, as adjusted based on assumptions with respect to performance on the relevant metrics.
The 2025 activity for our performance share units is as follows:
(Units in thousands)Number of
Units		Weighted-
Average Grant
Date Fair Value
Outstanding at beginning of year, nonvested394 $80.81 
Granted202 74.73 
Vested(200)(73.19)
Outstanding at end of year, nonvested396 $81.57 
The fair value of the performance share units that vested and/or amounts paid under these awards is as follows:
(In millions)202520242023
Fair value of awards vested$18 $13 $19 
Cash paid16 35 27 
v3.25.4
Retirement Plans
 12 Months Ended
Jan. 03, 2026
Retirement Benefits [Abstract]  
Retirement Plans Retirement Plans
We provide defined-contribution benefits to eligible employees, as well as some remaining defined-benefit pension and other post-retirement benefits covering certain of our U.S. and Non-U.S. employees. Substantially all of our employees are covered by defined contribution plans. The largest of these plans, the Textron Savings Plan, is a qualified 401(k) plan subject to the Employee Retirement Income Security Act of 1974 (ERISA). Our defined contribution plans cost $178 million, $164 million and $154 million in 2025, 2024 and 2023, respectively. We also provide post-retirement benefits other than pensions for certain retired employees in the U.S. that include healthcare, dental care, Medicare Part B reimbursement and life insurance.
A portion of our U.S. employees participate in the legacy defined benefit pension plans which were closed to new participants beginning on January 1, 2010. These legacy plans include the Textron Master Retirement Plan (TMRP), the Bell Helicopter Textron Master Retirement Plan, and the CWC Castings Division of Textron Inc. Hourly-Rated Employees' Pension Plan, which are each subject to the provisions of ERISA and provide a minimum guaranteed benefit to participants. The primary factors affecting the benefits earned by participants in our pension plans are employees’ years of service and compensation levels. Employees hired subsequent to the closure of these plans receive an additional annual cash contribution to their Textron Savings Plan account based on their eligible compensation of up to 4%.
Periodic Benefit Cost (Income)
The components of net periodic benefit cost (income) and other amounts recognized in other comprehensive income (loss) (OCI) are as follows:
Pension BenefitsPostretirement Benefits
Other than Pensions
(In millions)202520242023202520242023
Net periodic benefit income
Service cost$63 $69 $67 $1 $1 $2 
Interest cost376 362 364 6 7 8 
Expected return on plan assets(648)(635)(610)— — — 
Amortization of prior service cost (credit)10 9 11 (1)(1)(3)
Amortization of net actuarial loss (gain)(1)3 1 (8)(8)(8)
Net periodic benefit income*$(200)$(192)$(167)$(2)$(1)$(1)
Other changes in plan assets and benefit obligations recognized in OCI
Current year actuarial loss (gain)$(427)$(561)$109 $(3)$(7)$(7)
Current year prior service cost29 19 7 — — — 
Amortization of net actuarial gain (loss)1 (3)(1)8 8 8 
Amortization of prior service credit (cost)(10)(9)(11)1 1 3 
Total recognized in OCI, before taxes$(407)$(554)$104 $6 $2 $4 
Total recognized in net periodic benefit income and OCI$(607)$(746)$(63)$4 $1 $3 
* Excludes the cost associated with the defined-contribution component that is included in certain of our U.S.-based defined benefit pension plans of $10 million in both 2025 and 2024, and $11 million in 2023.
Obligations and Funded Status
All of our plans are measured as of our fiscal year-end. The changes in the projected benefit obligation and in the fair value of plan assets, along with our funded status, are as follows:
Pension BenefitsPostretirement Benefits
Other than Pensions
(In millions)January 3, 2026December 28, 2024January 3, 2026December 28, 2024
Change in projected benefit obligation
Projected benefit obligation at beginning of year$6,788 $7,205 $121 $136 
Service cost63 69 1 1 
Interest cost376 362 6 7 
Plan participants’ contributions— — 2 3 
Actuarial losses (gains)75 (392)2 (7)
Benefits paid(458)(454)(21)(19)
Plan amendment29 19 — — 
Foreign exchange rate changes and other45 (21)— — 
Projected benefit obligation at end of year$6,918 $6,788 $111 $121 
Change in fair value of plan assets
Fair value of plan assets at beginning of year$8,772 $8,413 
Actual return on plan assets1,145 806 
Employer contributions31 34 
Benefits paid(458)(454)
Foreign exchange rate changes and other69 (27)
Fair value of plan assets at end of year$9,559 $8,772 
Funded status at end of year$2,641 $1,984 $(111)$(121)
Actuarial losses (gains) for 2025 and 2024 were largely the result of changes in the discount rate utilized.
Amounts recognized in our balance sheets are as follows:
Pension BenefitsPostretirement Benefits
Other than Pensions
(In millions)January 3, 2026December 28, 2024January 3, 2026December 28, 2024
Non-current assets$2,973 $2,311 $— $— 
Current liabilities(29)(29)(14)(15)
Non-current liabilities(303)(298)(97)(106)
Recognized in Accumulated other comprehensive income (loss), pre-tax:
Net loss (gain)(261)167 (63)(69)
Prior service cost (credit)71 52 — (1)
The accumulated benefit obligation for all defined benefit pension plans was $6.6 billion and $6.5 billion at January 3, 2026 and December 28, 2024, respectively, which included $320 million and $316 million, respectively, in accumulated benefit obligations for unfunded plans where funding is not permitted or in foreign environments where funding is not feasible.
Pension plans with accumulated benefit obligation exceeding the fair value of plan assets are as follows:
(In millions)January 3, 2026December 28, 2024
Accumulated benefit obligation$320 $316 
Fair value of plan assets— — 
Pension plans with projected benefit obligation exceeding the fair value of plan assets are as follows:
(In millions)January 3, 2026December 28, 2024
Projected benefit obligation$332 $327 
Fair value of plan assets— — 
Assumptions
The weighted-average assumptions we use for our pension and postretirement plans are as follows:
Pension BenefitsPostretirement Benefits
Other than Pensions
202520242023202520242023
Net periodic benefit cost
Discount rate5.73%5.19%5.51%5.75%5.40%5.70%
Expected long-term rate of return on assets7.16%7.16%7.14%
Rate of compensation increase3.97%3.97%3.97%
Benefit obligations at year-end
Discount rate5.60%5.73%5.19%5.40%5.75%5.40%
Rate of compensation increase3.96%3.97%3.97%
Interest crediting rate for cash balance plans5.25%5.25%5.25%
Our assumed healthcare cost trend rate for both the medical and prescription drug cost was 6.50% in both 2025 and 2024. We expect this rate to gradually decline to 4.75% by 2032 where we assume it will remain.
Pension Assets
The expected long-term rate of return on plan assets is determined based on a variety of considerations, including the established asset allocation targets and expectations for those asset classes, historical returns of the plans’ assets and other market considerations. We invest our pension assets with the objective of achieving a total rate of return over the long term that will be sufficient to fund future pension obligations and to minimize future pension contributions. We are willing to tolerate a commensurate level of risk to achieve this objective based on the funded status of the plans and the long-term nature of our pension liability. Risk is controlled by maintaining a portfolio of assets that is diversified across a variety of asset classes, investment styles and investment managers. Where possible, investment managers are prohibited from owning our securities in the portfolios that they manage on our behalf.
For U.S. plan assets, which represent the majority of our plan assets, asset allocation target ranges are established consistent with our investment objectives, and the assets are rebalanced periodically.  For Non-U.S. plan assets, allocations are based on expected cash flow needs and assessments of the local practices and markets.  Our target allocation ranges are as follows:
U.S. Plan Assets
Domestic equity securities17%to33%
International equity securities6%to17%
Global equities5%to17%
Debt securities27%to38%
Real estate7%to13%
Private investment partnerships7%to13%
Non-U.S. Plan Assets
Equity securities55%to75%
Debt securities25%to45%
Real estate—%to13%
The fair value of our pension plan assets by major category and valuation method is as follows:
January 3, 2026December 28, 2024
(In millions)Level 1Level 2Level 3Not
Subject to
Leveling		Level 1Level 2Level 3Not
Subject to
Leveling
Cash and equivalents$254 $6 $— $— $159 $1 $— $— 
Equity securities:
Domestic2,969 — — 342 3,151 — — 307 
International1,317 — — 349 1,028 — — 290 
Mutual funds184 — — — 194 — — — 
Debt securities:
National, state and local governments1,327 112 — 21 899 60 — 13 
Corporate debt83 607 — 154 46 618 — 148 
Private investment partnerships— — — 992 — — — 974 
Real estate— — 449 393 — — 479 405 
Total$6,134 $725 $449 $2,251 $5,477 $679 $479 $2,137 
Cash and equivalents, equity securities and debt securities include commingled funds, which represent investments in funds offered to institutional investors that are similar to mutual funds in that they provide diversification by holding various equity and debt securities. Generally, the fair value of the majority of the commingled funds is determined and published by the fund's investment managers and is the basis for current transactions, therefore, they are categorized as Level 1 in the table above. Debt securities are valued based on same day actual trading prices, if available. If such prices are not available, we use a matrix pricing model with historical prices, trends and other factors.
Private investment partnerships represents interests in funds which invest in equity, debt and other financial assets.  These funds are generally not publicly traded so the interests therein are valued using income and market methods that include cash flow projections and market multiples for various comparable investments. Real estate includes owned properties and limited partnership interests in real estate partnerships. Owned properties are valued using certified appraisals at least every three years that are updated at least annually by the real estate investment manager based on current market trends and other available information. These appraisals generally use the standard methods for valuing real estate, including forecasting income and identifying current transactions for comparable real estate to arrive at a fair value.  Limited partnership interests in real estate partnerships are valued similarly to private investment partnerships, with the general partner using standard real estate valuation methods to value the real estate properties and securities held within their portfolios.  Neither private investment nor real estate partnerships are subject to leveling within the fair value hierarchy.
The table below presents a reconciliation of the fair value measurements for owned real estate properties, which use significant unobservable inputs (Level 3):
(In millions)20252024
Balance at beginning of year$479 $508 
Unrealized gains (losses), net9 (25)
Realized gains (losses), net(19)16 
Purchases, sales and settlements, net(20)(20)
Balance at end of year$449 $479 
Estimated Future Cash Flow Impact
Defined benefits under salaried plans are based on salary and years of service.  Hourly plans generally provide benefits based on stated amounts for each year of service.  Our funding policy is consistent with applicable laws and regulations.  In 2026, we expect to contribute approximately $50 million to our pension plans. Benefit payments provided below reflect expected future employee service, as appropriate, and are expected to be paid, net of estimated participant contributions. These payments are based on the same assumptions used to measure our benefit obligation at the end of 2025. While pension benefit payments primarily will be paid out of qualified pension trusts, we will pay postretirement benefits other than pensions out of our general corporate assets. Benefit payments that we expect to pay on an undiscounted basis are as follows:
(In millions)20262027202820292030
2031-2035
Pension benefits$466 $475 $484 $492 $497 $2,536 
Postretirement benefits other than pensions14 14 13 12 12 44 
v3.25.4
Special Charges
 12 Months Ended
Jan. 03, 2026
Restructuring and Related Activities [Abstract]  
Special Charges Special Charges
Special charges by segment and type of cost (income) are as follows:
(In millions)Severance
Costs		Contract
Termination
and Other
Costs		Asset
Impairments		OtherTotal
2025
Industrial$— $— $— $(4)$(4)
Textron Systems5 3 — — 8 
Total special charges$5 $3 $— $(4)$4 
2024
Industrial$37 $32 $3 $— $72 
Bell1 — — — 1 
Textron Systems5 — — — 5 
Total special charges$43 $32 $3 $— $78 
2023
Industrial$21 $— $87 $— $108 
Bell13 — — — 13 
Textron Systems5 — — — 5 
Total special charges$39 $— $87 $— $126 
2025 Restructuring and Other Actions
In connection with the termination of certain U.S. Government development programs, we initiated restructuring actions in the second quarter of 2025 to reduce operating expenses through headcount reductions and other actions at the Textron Systems segment. As a result, we recorded special charges of $8 million, which included severance costs of $5 million and contract termination costs of $3 million. Headcount reductions totaled approximately 85 positions, representing less than 1% of our global workforce. The restructuring actions were substantially completed in the third quarter of 2025.
In the second quarter of 2025, we completed the strategic review of the Powersports product line discussed below, and on April 23, 2025, we closed on the sale of the Powersports business, including the Arctic Cat brand and its operations. Net cash proceeds from the sale were $16 million and we recorded a pre-tax gain of $4 million, which is included in special charges.
2023 Restructuring Plan
In the fourth quarter of 2023, we initiated a restructuring plan to reduce operating expenses through headcount reductions at the Industrial, Bell and Textron Systems segments. In the Industrial segment, the plan included headcount reductions at Textron Specialized Vehicles, resulting from lower demand for certain of our powersports products, and at Kautex, due to reduced demand for fuel systems from European automotive manufacturers. In the Bell and Textron Systems segments, the plan included targeted headcount reductions to improve the segments’ cost structures and realign their workforces as these segments transition from legacy production contracts to more development, engineering focused contracts. In April 2024, the plan was expanded for the Bell and Textron Systems segments to include headcount reductions resulting from the cancellations of the Future Attack Reconnaissance Aircraft and Shadow programs in 2024.
In December 2024, we approved additional actions under the 2023 plan at Textron Specialized Vehicles related to an indefinite pause in production of its powersports products. During 2024, the consumer end market demand for powersports products continued to remain soft. As a result, and in conjunction with its annual operating plan process, Textron Specialized Vehicles began to pause production of powersports products as Textron's management reviewed strategic alternatives for the business.
In 2024, we recorded special charges totaling $78 million as a result of the above restructuring actions. Since inception of the 2023 plan, we have incurred $204 million in special charges including severance costs of $82 million, which included $58 million at the Industrial segment, $14 million at the Bell segment and $10 million at the Textron Systems segment; and contract termination and other costs of $32 million and asset impairment charges of $90 million at the Industrial segment. Headcount reductions since inception of the plan totaled approximately 1,800 positions, representing 5% of our global workforce. The plan was substantially completed in the first half of 2025.
In the fourth quarter of 2024 and in connection with the actions taken under the restructuring plan at Textron Specialized Vehicles, we recorded an inventory valuation charge of $38 million, which is recorded in Cost of products sold, to write down production-related powersports inventory to its net realizable value.
In 2023, as a result of the lower demand described above, we recognized asset impairment charges of $75 million at Textron Specialized Vehicles related to both fixed and intangible assets and $12 million of fixed asset impairment charges at Kautex.
Restructuring Reserve
Our restructuring reserve activity is summarized below:
(In millions)Severance
Costs		Contract
Termination
and Other
Costs		Total
Balance at December 30, 2023$42 $5 $47 
Provision for 2023 restructuring plan49 32 81 
Cash paid(46)(3)(49)
Reversals(6)— (6)
Foreign currency translation(2)— (2)
Balance at December 28, 2024$37 $34 $71 
Provision5 3 8 
Cash paid(23)(18)(41)
Business disposition(7)(15)(22)
Foreign currency translation3 — 3 
Balance at January 3, 2026$15 $4 $19 
v3.25.4
Income Taxes
 12 Months Ended
Jan. 03, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We conduct business globally and, as a result, file numerous consolidated and separate income tax returns within and outside the U.S.  For all of our U.S. subsidiaries, we file a consolidated federal income tax return.  Income from continuing operations before income taxes is as follows:
(In millions)202520242023
U.S.$903 $739 $905 
Non-U.S.234 204 182 
Income from continuing operations before income taxes$1,137 $943 $1,087 
Income tax expense is summarized as follows:
(In millions)202520242023
Current:
Federal$(7)$84 $267 
State8 21 18 
Non-U.S.58 61 72 
Total current59 166 357 
Deferred:
Federal165 (34)(181)
State(6)(24)1 
Non-U.S.(4)10 (12)
Total deferred155 (48)(192)
Total income tax expense (benefit):
Federal158 50 86 
State2 (3)19 
Non-U.S.54 71 60 
Total income tax expense$214 $118 $165 
In 2025, we adopted Accounting Standards Update 2023-09 – Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. This standard has been adopted on a prospective basis and the new presentation of the U.S. Federal statutory income tax rate to our effective tax rate for 2025 is provided below.
2025
(Dollars in millions)AmountPercentage
U.S. Federal statutory income tax rate$239 21.0 %
State and local income taxes, net of Federal income tax effects*2 0.2 %
Foreign tax effects6 0.5 %
Effect of cross-border tax laws(2)(0.2)%
Tax credits - research and development(36)(3.2)%
Non-taxable or nondeductible items:
Share-based compensation29 2.6 %
Other6 0.5 %
Changes in unrecognized tax benefits:
Audit settlement(17)(1.5)%
Other3 0.3 %
Other adjustments(16)(1.4)%
Effective income tax rate$214 18.8 %
* State income taxes for Kansas and Texas comprise the majority (greater than 50%) of this category. In 2025, an $18 million benefit was recognized related to the enactment of a single sales factor apportionment in Kansas.
For 2025, income tax payments, net of refunds by jurisdiction totaled $19 million for the U.S. Federal jurisdiction, $13 million for the states and $72 million for non-U.S. jurisdictions, which included $23 million, $18 million, $8 million, $6 million and $(5) million in Canada, Mexico, China, Czech Republic and Spain, respectively.
A reconciliation of the U.S. Federal statutory income tax rate to our effective income tax rate for prior years is provided below.
20242023
U.S. Federal statutory income tax rate21.0%21.0%
Increase (decrease) resulting from:
State income taxes, net of Federal tax benefit(0.2)%1.4%
Non-U.S. tax rate differential and foreign tax credits2.1%1.5%
Research and development tax credits(5.4)%(4.7)%
Uncertain tax positions release for 2012 to 2017 IRS audit(2.9)%—%
Foreign-derived intangible income deduction(1.7)%(3.2)%
Other, net(0.4)%(0.8)%
Effective income tax rate12.5%15.2%
Unrecognized Tax Benefits
Our unrecognized tax benefits represent tax positions for which reserves have been established, with unrecognized state tax benefits reflected net of applicable federal tax benefits. If our unrecognized tax benefits were recognized in future periods, they would favorably impact our effective tax rate. A reconciliation of these unrecognized tax benefits is as follows:
(In millions)202520242023
Balance at beginning of year$215 $222 $231 
Additions for tax positions related to current year19 17 16 
Additions for tax positions of prior years— 4 3 
Reductions for tax positions of prior years(1)— (28)
Reductions for settlements(17)(28)— 
Balance at end of year$216 $215 $222 
In November 2024, we received a Revenue Agent Report (RAR) from the Internal Revenue Service (IRS) for the tax years 2012 to 2017 that proposed adjustments related to research and development tax credits generated on amended returns filed in 2019 and 2021. We disagree with the proposed adjustments and are vigorously contesting them through the IRS’s Office of Appeals and, if necessary, will continue with legal proceedings. We believe it is more likely than not that we will prevail on our refund claim for
these credits and that our allowance for uncertain tax positions related to this matter is adequate. In connection with the RAR for these years, other tax positions were effectively settled, resulting in a benefit upon the reversal of $27 million of uncertain tax positions in the fourth quarter of 2024. A tax benefit of $17 million was recorded in 2025 related to the effective settlement of other uncertain tax positions.
We are currently under examination by the IRS for the tax years 2018 to 2021. In the normal course of business, we are subject to examination by tax authorities throughout the world. We are generally no longer subject to state and local income tax examinations for years before 2019 and non-U.S. income tax examinations for years before 2012.
Deferred Taxes
The significant components of our net deferred tax assets/(liabilities) are provided below:
(In millions)January 3,
2026		December 28,
2024
Capitalized research and development expenditures$459 $631 
U.S. operating loss and tax credit carryforwards (a)232 212 
Accrued liabilities (b)201 224 
Obligation for pension and postretirement benefits130 109 
Operating lease liabilities 102 93 
Non-U.S. operating loss and tax credit carryforwards (c)82 88 
Deferred compensation70 94 
Prepaid pension benefits(721)(562)
Property, plant and equipment, principally depreciation(186)(198)
Amortization of goodwill and other intangibles(157)(184)
Operating lease right-of-use assets(99)(90)
Valuation allowance on deferred tax assets(76)(82)
Other, net(25)(74)
Deferred taxes, net$12 $261 
(a)At January 3, 2026, U.S. operating loss and tax credit carryforward benefits of $184 million expire through 2045 if not utilized and $48 million may be carried forward indefinitely.
(b)Accrued liabilities include warranty reserves, self-insured liabilities and interest.
(c)At January 3, 2026, non-U.S. operating loss and tax credit carryforward benefits of $73 million may be carried forward indefinitely.
We believe earnings during the period when the temporary differences become deductible will be sufficient to realize the related future income tax benefits. For those jurisdictions where the expiration date of tax carryforwards or the projected operating results indicate that realization is not more than likely, a valuation allowance is provided.
The following table presents the breakdown of our deferred taxes:
(In millions)January 3,
2026		December 28,
2024
Manufacturing group:
Deferred tax assets, net of valuation allowance$145 $394 
Deferred tax liabilities(123)(96)
Finance group – Deferred tax liabilities(10)(37)
Net deferred tax asset$12 $261 
Non-U.S. income taxes have not been provided for on basis differences in certain investments, primarily as a result of unremitted earnings in foreign subsidiaries that are indefinitely reinvested. Should these earnings be distributed in the future in the form of dividends or otherwise, we would be subject to withholding and local taxes to the applicable non-U.S. jurisdictions.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Jan. 03, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
We are subject to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; disputes with suppliers, production partners or other third parties; product liability; patent and trademark infringement; employment disputes; and environmental, health and safety matters. Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations.
In the ordinary course of business, we enter into standby letter of credit agreements and surety bonds with financial institutions to meet various performance and other obligations.  These outstanding letter of credit arrangements and surety bonds aggregated to approximately $380 million and $336 million at January 3, 2026 and December 28, 2024, respectively.
Environmental Remediation
As with other industrial enterprises engaged in similar businesses, we are involved in a number of remedial actions under various federal and state laws and regulations relating to the environment that impose liability on companies to clean up, or contribute to the cost of cleaning up, sites on which hazardous wastes or materials were disposed or released.  Our accrued environmental liabilities relate to installation of remediation systems, disposal costs, U.S. Environmental Protection Agency oversight costs, legal fees, and operating and maintenance costs for both currently and formerly owned or operated facilities.  Circumstances that can affect the reliability and precision of the accruals include the identification of additional sites, environmental regulations, level of cleanup required, technologies available, number and financial condition of other contributors to remediation and the time period over which remediation may occur. We believe that any changes to the accruals that may result from these factors and uncertainties will not have a material effect on our financial position or results of operations.

Based upon information currently available, we estimate that our potential environmental liabilities are within the range of $45 million to $155 million. At January 3, 2026, environmental reserves of $80 million have been established to address these specific estimated liabilities. We estimate that we will likely pay our accrued environmental remediation liabilities over the next ten years and have classified $15 million as current liabilities. In 2025, 2024 and 2023, to evaluate and remediate contaminated sites, we incurred expense, net of recoveries received, of $17 million, $9 million and $8 million, respectively.
v3.25.4
Supplemental Cash Flow Information
 12 Months Ended
Jan. 03, 2026
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Information Supplemental Cash Flow Information
Our cash payments and receipts are as follows:
(In millions)202520242023
Interest paid:
Manufacturing group$135 $124 $110 
Finance group17 18 12 
Net income taxes paid:
Manufacturing group92 181 338 
Finance group12 10 14 
v3.25.4
Schedule II - Valuation and Qualifying Accounts
 12 Months Ended
Jan. 03, 2026
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts
Schedule II — Valuation and Qualifying Accounts
(In millions)202520242023
Allowance for credit losses on accounts receivable
Balance at beginning of year$19 $26 $24 
Provision (reversal) for credit losses(1)(4)7 
Deductions from reserves*(2)(3)(5)
Balance at end of year$16 $19 $26 
Allowance for credit losses on finance receivables
Balance at beginning of year$19 $24 $24 
Reversal for credit losses(1)(14)(18)
Charge-offs— (1)— 
Recoveries1 10 18 
Balance at end of year$19 $19 $24 
Inventory FIFO reserves
Balance at beginning of year$432 $390 $350 
Charged to costs and expenses26 57 63 
Business disposition(36)— — 
Deductions from reserves*(28)(15)(23)
Balance at end of year$394 $432 $390 
* Deductions primarily include amounts written off on uncollectible accounts (less recoveries), inventory disposals, changes to prior year estimates and currency translation adjustments.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Jan. 03, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Jan. 03, 2026
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Jan. 03, 2026
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Cybersecurity related risks have been identified as material business risks, and identifying, assessing and managing these risks is integrated into our Enterprise Risk Management (ERM) process, which is designed to identify, assess and guide in managing material risks throughout Textron at both the business segment and enterprise levels. We maintain cyber risk/network protection mitigation plans through our ERM process to assist in management of these risks. Our full Board oversees our ERM process through discussions at our Board of Directors’ Annual Strategic Business and Risk Review and at an annual dedicated ERM Review. In addition, high risk areas, including cybersecurity matters, are reviewed and discussed with the full Board or other Board Committees, as appropriate. The Audit Committee, as reflected in its charter, has been designated to assist the Board in its oversight of our ERM process, including with respect to cybersecurity risk.
We maintain a detailed Cybersecurity Incident Response Plan that guides our incident response process. Upon the occurrence of a cybersecurity event, the cyber incident response team will follow a predefined process, documenting each step taken, to analyze and validate the event, and, if a cybersecurity incident is suspected to have occurred, quickly perform an initial analysis to determine the incident’s scope. The team will prioritize the response to each incident based on its estimate of the business impact caused by the incident and the estimated efforts required to recover from the incident. Notification of the incident is made to various stakeholders, including senior management and, if appropriate based upon the incident severity assessment, our Board. The team will also conduct incident containment, eradication and recovery, and post incident activity.
Our Security Culture
We protect our information assets and manage risk by promoting a culture that communicates security risks, designs secure IT systems and operates according to approved processes to reduce the likelihood and impact of security incidents. We achieve this objective by:
•Designing, implementing and maintaining solutions with appropriate security controls.
•Sustaining solutions with required patching and vulnerability remediation.
•Creating and executing controls in support of policy as well as regulatory compliance.
•Ensuring that our policies, processes, practices and technologies proactively protect, shield, defend and remediate cyber threats.
•Delivering quality communications and annual training to stakeholders on cyber awareness and computing hygiene.
We believe that the conduct of our employees is critical to the success of our information security. Through our security awareness program, we keep our employees apprised of threats, risks and the part that they play in protecting both themselves and the Company. We conduct periodic compliance training for our employees regarding the protection of sensitive information, which includes mandatory annual cyber safety training for all users with access to our computer network intended to reduce the likelihood of success of cyberattacks which target our employees. We also conduct regular phishing simulations to increase employee awareness on how to spot phishing attempts, and what to do if they suspect an email to be a phishing attack.
We execute penetration testing against our technical environment and processes, and continuously monitor our network and systems for signs of intrusion. We also retain consultants to enhance our penetration testing program with current trends and methodologies utilized against other companies, ensuring we are proactively reducing risk from emerging threats. In addition, we conduct tabletop exercises to prepare for responding to potential cybersecurity events.
We have a rigorous process, including a formal IT risk assessment, to assess our service providers prior to allowing our information to be processed, stored or transmitted by third parties, and we include standardized contractual requirements in each contract where appropriate. We validate our service providers’ security via questionnaires, open-source intelligence and, where appropriate, SOC1 reports on financially significant third-party service providers. Our process also includes regular monitoring of risk related to third parties on a periodic basis or when services or product purchases expand beyond their original scope or intended use.
Protections against insider threat is a critical component of our security strategy, particularly within our defense businesses. Our insider threat detection processes are designed to identify and evaluate potential insider threats so that appropriate mitigation can be implemented.
Collaboration with our industry partners and government customers contributes to the protection of Textron’s computing environment as well as our military stakeholders. Textron is engaged with various industry groups such as Aerospace Industries Association, National Defense Information Sharing & Analysis Center and our Defense Industrial Base colleagues to ensure that we are aware of and are addressing the latest adversarial threats. Additionally, we share cyber best practices with industry peers to help to make the industry more secure.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
Cybersecurity related risks have been identified as material business risks, and identifying, assessing and managing these risks is integrated into our Enterprise Risk Management (ERM) process, which is designed to identify, assess and guide in managing material risks throughout Textron at both the business segment and enterprise levels. We maintain cyber risk/network protection mitigation plans through our ERM process to assist in management of these risks. Our full Board oversees our ERM process through discussions at our Board of Directors’ Annual Strategic Business and Risk Review and at an annual dedicated ERM Review. In addition, high risk areas, including cybersecurity matters, are reviewed and discussed with the full Board or other Board Committees, as appropriate. The Audit Committee, as reflected in its charter, has been designated to assist the Board in its oversight of our ERM process, including with respect to cybersecurity risk.
We maintain a detailed Cybersecurity Incident Response Plan that guides our incident response process. Upon the occurrence of a cybersecurity event, the cyber incident response team will follow a predefined process, documenting each step taken, to analyze and validate the event, and, if a cybersecurity incident is suspected to have occurred, quickly perform an initial analysis to determine the incident’s scope. The team will prioritize the response to each incident based on its estimate of the business impact caused by the incident and the estimated efforts required to recover from the incident. Notification of the incident is made to various stakeholders, including senior management and, if appropriate based upon the incident severity assessment, our Board. The team will also conduct incident containment, eradication and recovery, and post incident activity.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Board Oversight of Cybersecurity Matters
Oversight of information security matters is conducted by our full Board of Directors. The Board annually receives a comprehensive presentation on information security and controls from our Chief Information Officer (CIO) and, as may be necessary for specific topics, follow up occurs at additional Board meetings during the course of the year.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our corporate information security organization, led by our Chief Information Security Officer (CISO), who reports to our CIO, is responsible for our overall information security strategy, policy, security engineering, operations and cyber threat detection and response.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
Cybersecurity related risks have been identified as material business risks, and identifying, assessing and managing these risks is integrated into our Enterprise Risk Management (ERM) process, which is designed to identify, assess and guide in managing material risks throughout Textron at both the business segment and enterprise levels. We maintain cyber risk/network protection mitigation plans through our ERM process to assist in management of these risks. Our full Board oversees our ERM process through discussions at our Board of Directors’ Annual Strategic Business and Risk Review and at an annual dedicated ERM Review. In addition, high risk areas, including cybersecurity matters, are reviewed and discussed with the full Board or other Board Committees, as appropriate. The Audit Committee, as reflected in its charter, has been designated to assist the Board in its oversight of our ERM process, including with respect to cybersecurity risk.
We maintain a detailed Cybersecurity Incident Response Plan that guides our incident response process. Upon the occurrence of a cybersecurity event, the cyber incident response team will follow a predefined process, documenting each step taken, to analyze and validate the event, and, if a cybersecurity incident is suspected to have occurred, quickly perform an initial analysis to determine the incident’s scope. The team will prioritize the response to each incident based on its estimate of the business impact caused by the incident and the estimated efforts required to recover from the incident. Notification of the incident is made to various stakeholders, including senior management and, if appropriate based upon the incident severity assessment, our Board. The team will also conduct incident containment, eradication and recovery, and post incident activity.
Cybersecurity Risk Role of Management [Text Block]
Management of Cybersecurity Risks
Textron Information Services is led by our CIO who has held positions of increasing responsibility within our corporate, Bell and Textron Systems IT organizations since 2008, including leading the IT organizations at both segments in maintaining compliance with the DoW information security requirements, as well as with our enterprise information security policies and standards. He previously led strategic IT projects and teams responsible for delivering global IT solutions for several large U.S. based companies.
Our corporate information security organization, led by our Chief Information Security Officer (CISO), who reports to our CIO, is responsible for our overall information security strategy, policy, security engineering, operations and cyber threat detection and response. Our CISO has more than 20 years of experience in the field of information security and holds multiple cybersecurity certifications including the designation of Certified Information Systems Security Professional.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our corporate information security organization, led by our Chief Information Security Officer (CISO), who reports to our CIO, is responsible for our overall information security strategy, policy, security engineering, operations and cyber threat detection and response.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO has more than 20 years of experience in the field of information security and holds multiple cybersecurity certifications including the designation of Certified Information Systems Security Professional.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Cybersecurity related risks have been identified as material business risks, and identifying, assessing and managing these risks is integrated into our Enterprise Risk Management (ERM) process, which is designed to identify, assess and guide in managing material risks throughout Textron at both the business segment and enterprise levels. We maintain cyber risk/network protection mitigation plans through our ERM process to assist in management of these risks. Our full Board oversees our ERM process through discussions at our Board of Directors’ Annual Strategic Business and Risk Review and at an annual dedicated ERM Review. In addition, high risk areas, including cybersecurity matters, are reviewed and discussed with the full Board or other Board Committees, as appropriate. The Audit Committee, as reflected in its charter, has been designated to assist the Board in its oversight of our ERM process, including with respect to cybersecurity risk.
We maintain a detailed Cybersecurity Incident Response Plan that guides our incident response process. Upon the occurrence of a cybersecurity event, the cyber incident response team will follow a predefined process, documenting each step taken, to analyze and validate the event, and, if a cybersecurity incident is suspected to have occurred, quickly perform an initial analysis to determine the incident’s scope. The team will prioritize the response to each incident based on its estimate of the business impact caused by the incident and the estimated efforts required to recover from the incident. Notification of the incident is made to various stakeholders, including senior management and, if appropriate based upon the incident severity assessment, our Board. The team will also conduct incident containment, eradication and recovery, and post incident activity.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jan. 03, 2026
Accounting Policies [Abstract]  
Principles of Consolidation and Financial Statement Presentation
Principles of Consolidation and Financial Statement Presentation
Our Consolidated Financial Statements include the accounts of Textron Inc. and its majority-owned subsidiaries. Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron Inc. consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation (TFC) and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.
Our Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of Cash Flows, cash received from customers is reflected as operating activities when received from third parties. However, in the cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in the Finance group’s statement of cash flows. Meanwhile, in the Manufacturing group’s statement of cash flows, the cash received from the Finance group on the customer’s behalf is recorded within operating cash flows as a cash inflow. Although cash is transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or eliminated in consolidation.
Collaborative Arrangements
Collaborative Arrangements
Our Bell segment has a strategic alliance agreement with a third-party company to provide engineering, development and test services related to the V-22 aircraft, as well as to produce the V-22 aircraft, under a number of separate contracts with the U.S. Government (V-22 Contracts). The alliance created by this agreement is not a legal entity and has no employees, no assets and no true operations. This agreement creates contractual rights and does not represent an entity in which we have an equity interest. We account for this alliance as a collaborative arrangement with Bell and the third-party company reporting costs incurred and revenues generated from transactions with the U.S. Government in each company’s respective income statement. Neither Bell nor the third-party company is considered to be the principal participant for the transactions recorded under this agreement. Profits on cost-plus contracts are allocated between Bell and the third-party company on a 50%-50% basis. Negotiated profits on fixed-price contracts are also allocated 50%-50%; however, Bell and the third-party company are each responsible for their own cost overruns and are entitled to retain any cost underruns. Based on the contractual arrangement established under the alliance, Bell accounts for its rights and obligations under the specific requirements of the V-22 Contracts allocated to Bell under the work breakdown structure. We account for all of our rights and obligations, including warranty, product and any contingent liabilities, under the specific requirements of the V-22 Contracts allocated to us under the agreement. Revenues and cost of sales reflect our performance under the V-22 Contracts with revenues recognized using the cost-to-cost method. We include all assets used in performance of the V-22 Contracts that we own and all liabilities arising from our obligations under the V-22 Contracts in our Consolidated Balance Sheets.
Use of Estimates
Use of Estimates
We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined.
Revenue Recognition, Finance Revenues and Contract Estimates
Revenue Recognition
Revenue is recognized when control of the product or service promised under the contract is transferred to the customer either at a point in time (e.g., upon delivery) or over time (e.g., as we perform under the contract). We account for a contract when it has approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has commercial substance and collectability of consideration is probable. Contracts are reviewed to determine whether there is one or multiple performance obligations. A performance obligation is a promise to transfer a distinct product or service to a customer and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected consideration, or the transaction price, is allocated to each performance obligation identified in the contract based on the relative standalone selling price of each performance obligation. Revenue is then recognized for the transaction price allocated to the
performance obligation when control of the promised product or service underlying the performance obligation is transferred. Contract consideration is not adjusted for the effects of a significant financing component when, at contract inception, the period between when control transfers and when the customer will pay for that good or service is one year or less.
Revenue is classified as product or service revenue based on the predominant attributes of each performance obligation.
Commercial Contracts
The majority of our contracts with commercial customers have a single performance obligation as there is only one product or service promised or the promise to transfer the product or service is not distinct or separately identifiable from other promises in the contract. Revenue is primarily recognized at a point in time, which is generally when the customer obtains control of the asset upon delivery and customer acceptance. Contract modifications that provide for additional distinct products or services at the standalone selling price are treated as separate contracts.
For commercial fixed-wing aircraft, we contract with our customers to sell fully outfitted aircraft, which may include configuration options. The aircraft typically represents a single performance obligation and revenue is recognized upon customer acceptance and delivery. For commercial helicopters, our customers generally contract with us for fully functional basic configuration aircraft and control is transferred upon customer acceptance and delivery. At times, customers may separately contract with us for the installation of accessories and customization to the basic aircraft. If these contracts are entered into at or near the same time of the basic aircraft contract, we assess whether the contracts meet the criteria to be combined. For contracts that are combined, the basic aircraft and the accessories and customization are typically considered to be distinct, and therefore, are separate performance obligations. For these contracts, revenue is recognized on the basic aircraft upon customer acceptance and transfer of title and risk of loss, and on the accessories and customization, upon delivery and customer acceptance. We utilize observable prices to determine the standalone selling prices when allocating the transaction price to these performance obligations.
The transaction price for our commercial contracts reflects our estimate of returns, rebates and discounts, which are based on historical, current and forecasted information. Amounts billed to customers for shipping and handling are included in the transaction price and generally are not treated as separate performance obligations as these costs fulfill a promise to transfer the product to the customer. Taxes collected from customers and remitted to government authorities are recorded on a net basis.
We primarily provide standard warranty programs for products in our commercial businesses for periods that typically range from one year to five years. These assurance-type programs typically cannot be purchased separately and do not meet the criteria to be considered a performance obligation.
U.S. Government Contracts
Our contracts with the U.S. Government generally include the design, development, manufacture or modification of aerospace and defense products and related support services. These contracts, which also include those under the U.S. Government-sponsored foreign military sales program, accounted for approximately 27% of total revenues in 2025.  The customer typically contracts with us to provide a significant service of integrating a complex set of tasks and components into a single project or capability, which often results in the delivery of multiple units. Accordingly, the entire contract is accounted for as one performance obligation. In certain circumstances, a contract may include both production and support services, such as logistics and parts plans, which are considered to be distinct in the context of the contract and represent separate performance obligations. When a contract is separated into more than one performance obligation, we generally utilize the expected cost plus a margin approach to determine the standalone selling prices when allocating the transaction price.
Our contracts are frequently modified for changes in contract specifications and requirements. Most of our contract modifications with the U.S. Government are for products and services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as part of that existing contract. The effect of these contract modifications on our estimates is recognized using the cumulative catch-up method of accounting.
Contracts with the U.S. Government generally contain clauses that provide lien rights to work-in-process along with clauses that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work-in-process. Due to the continuous transfer of control to the U.S. Government, we recognize revenue over the time that we perform under the contract. Selecting the method to measure progress towards completion requires judgment and is based on the nature of the products or service to be provided. We generally use the cost-to-cost method to measure progress for our contracts because it best depicts the transfer of control to the customer that occurs as we incur costs on our contracts.  Under this measure, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the estimated costs at completion of the performance obligation, and revenue is recorded proportionally as costs are incurred.  
The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees or other provisions that can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and can be based upon customer discretion. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance, historical performance, and all other information that is reasonably available to us.
Total contract cost is estimated utilizing current contract specifications and expected engineering requirements. Contract costs typically are incurred over a period of several years, and the estimation of these costs requires substantial judgment. Our cost estimation process is based on the professional knowledge and experience of engineers and program managers along with finance professionals. We review and update our projections of costs quarterly or more frequently when circumstances significantly change.  
Approximately 53% of our 2025 revenues with the U.S. Government were under fixed-price and fixed-price incentive contracts. Under the typical payment terms of these contracts, the customer pays us either performance-based or progress payments. Performance-based payments represent interim payments of up to 90% of the contract price based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments of up to 80% of costs incurred as the work progresses. Because the customer retains a small portion of the contract price until completion of the contract, these contracts generally result in revenue recognized in excess of billings. Amounts billed and due from our customers are classified in Accounts receivable, net. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer. For cost-type contracts, we are generally paid for our actual costs incurred within a short period of time.
Finance Revenues
Finance revenues primarily include interest on finance receivables, finance lease earnings and portfolio gains/losses. We recognize interest using the interest method, which provides a constant rate of return over the terms of the receivables. Accrual of interest income is suspended if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically suspend the accrual of interest income for accounts that are contractually delinquent by more than three months unless collection is not doubtful. Cash payments on nonaccrual accounts, including finance charges, generally are applied to reduce the net investment balance. Once we conclude that the collection of all principal and interest is no longer doubtful, we resume the accrual of interest and recognize previously suspended interest income at the time either a) the loan becomes contractually current through payment according to the original terms of the loan, or b) if the loan has been modified, following a period of performance under the terms of the modification.
Contract Estimates
For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable.
Contract Assets and Liabilities
Contract Assets and Liabilities
Contract assets arise from contracts when revenue is recognized over time and the amount of revenue recognized exceeds the amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on events other than the passage of time and are included in Other current assets in the Consolidated Balance Sheets. Contract liabilities, which are primarily included in Other current liabilities, include deposits, largely from our commercial aviation customers, and billings in excess of revenue recognized.  
The incremental costs of obtaining a contract with a customer that is expected to be recovered is expensed as incurred when the period to be benefitted is one year or less.
Accounts Receivable, Net
Accounts Receivable, Net
Accounts receivable, net includes amounts billed to customers where the right to payment is unconditional. We maintain an allowance for credit losses for our commercial accounts receivable to provide for the estimated amount that will not be collected, even when the risk of loss is remote. The allowance is measured on a collective pool basis when similar risk characteristics exist and is established as a percentage of accounts receivable. We have identified pools with similar risk characteristics, based on customer and industry type and geographic location. The percentage is based on all available and relevant information including age of outstanding receivables and collateral value, if any, historical payment experience and loss history, current economic conditions, and, when reasonable and supportable factors exist, management’s expectation of future economic conditions. For amounts due from the U.S. Government, we have not established an allowance for credit losses as we have zero loss expectation based on a long history of no credit losses and the explicit guarantee of a sovereign entity.
Cash and Equivalents
Cash and Equivalents
Cash and equivalents consist of cash and short-term, highly liquid investments with original maturities of three months or less.
Inventories
Inventories
Inventories are stated at the lower of cost or estimated realizable value. The majority of our inventories are valued using the last-in, first-out (LIFO) method, while the remaining inventories are generally valued using the first-in, first-out (FIFO) method.
Property, Plant and Equipment
Property, Plant and Equipment
Property, plant and equipment are recorded at cost and are depreciated primarily using the straight-line method. We capitalize expenditures for improvements that increase asset values and extend useful lives.  Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the carrying value of the asset exceeds the sum of the undiscounted expected future cash flows, the asset is written down to fair value.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill represents the excess of the consideration paid for the acquisition of a business over the fair values assigned to intangible and other net assets of the acquired business. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to an annual impairment test. We evaluate the recoverability of these assets in the fourth quarter of each year or more frequently if events or changes in circumstances, such as declines in sales, earnings or cash flows, or material adverse changes in the business climate, indicate a potential impairment.
For our goodwill impairment test, we calculate the fair value of each reporting unit using discounted cash flows.  A reporting unit represents the operating segment unless discrete financial information is prepared and reviewed by segment management for businesses one level below that operating segment, in which case such component is the reporting unit. In certain instances, we have aggregated components of an operating segment into a single reporting unit based on similar economic characteristics. The discounted cash flows incorporate assumptions for revenue growth rates, operating margins and discount rates that represent our best estimates of current and forecasted market conditions, cost structure, anticipated net cost reductions, and the implied rate of return that we believe a market participant would require for an investment in a business having similar risks and characteristics to the reporting unit being assessed. The fair value of our indefinite-lived intangible assets is primarily determined using the relief of royalty method based on forecasted revenues and royalty rates. If the estimated fair value of the reporting unit or indefinite-lived intangible asset exceeds the carrying value, there is no impairment. Otherwise, an impairment loss is recognized for the amount by which the carrying value exceeds the estimated fair value.
Acquired intangible assets with finite lives are subject to amortization. These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Amortization of these intangible assets is recognized over their estimated useful lives using a method that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. The majority of our intangible assets are amortized based on the cash flow streams used to value the assets, with the remaining assets amortized using the straight-line method.
Finance Receivables
Finance Receivables
Finance receivables primarily include loans provided to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters. Finance receivables are generally recorded at the amount of outstanding principal less allowance for credit losses.
We establish an allowance for credit losses to cover probable but specifically unknown losses existing in the portfolio. This allowance is established as a percentage of finance receivables categorized by pools with similar risk characteristics, such as collateral or customer type and geographic location. The percentage is based on a combination of factors, including historical loss experience, current delinquency and default trends, collateral values, current economic conditions, and, when reasonable and supportable factors exist, management’s expectation of future economic conditions.
For those finance receivables that do not have similar risk characteristics, including larger balance accounts specifically identified as impaired, a reserve is established against the carrying amount either based on comparing the expected future cash flows that are discounted at the finance receivable's effective interest rate, or based on the fair value of the underlying collateral if the finance receivable is collateral dependent. The expected future cash flows consider collateral value; financial performance and liquidity of our borrower; existence and financial strength of guarantors; estimated recovery costs, including legal expenses; and costs associated with the repossession and eventual disposal of collateral. When there is a range of potential outcomes, we perform multiple discounted cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence. The evaluation of our portfolio is inherently subjective, as it requires estimates, including the amount and timing of future cash flows expected to be received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual results. While our analysis is specific to each individual account, critical factors included in this analysis include industry valuation guides, age and physical condition of the collateral, payment history, and existence and financial strength of guarantors.
Finance receivables are charged off at the earlier of the date the collateral is repossessed or when management no longer deems the receivable collectible.  Repossessed assets are recorded at their fair value, less estimated cost to sell.
Pension and Postretirement Benefit Obligations
Pension and Postretirement Benefit Obligations
We maintain various pension and postretirement plans for our employees globally. Our pension plans include significant benefit obligations, which are calculated based on actuarial valuations. Key assumptions used in determining these obligations and related expenses include expected long-term rates of return on plan assets, discount rates and healthcare cost projections. We evaluate and update these assumptions annually in consultation with third-party actuaries and investment advisors. We also make assumptions regarding employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation increases.
For our year-end measurement, our defined benefit plan assets and obligations are measured as of the month-end date closest to our fiscal year-end. We recognize the overfunded or underfunded status of our pension and postretirement plans in the Consolidated Balance Sheets and recognize changes in the funded status of our defined benefit plans in comprehensive income (loss) in the year in which they occur. To the extent actuarial gains and losses exceed 10% of the higher of the market-related value of assets or the benefit obligation in a year, the excess is recognized as a component of accumulated other comprehensive income (loss) and is amortized into net periodic pension cost over the remaining service period of the active participants. For plans in which all or almost all of the plan’s participants are inactive, the amortization period is the remaining life expectancy of the inactive participants. This determination is made on a plan-by-plan basis.
Derivatives and Hedging Activities
Derivatives and Hedging Activities
We are exposed to market risk primarily from changes in currency exchange rates and interest rates. We do not hold or issue derivative financial instruments for trading or speculative purposes.  To manage the volatility relating to our exposures, we net these exposures on a consolidated basis to take advantage of natural offsets.  For the residual portion, we enter into various derivative transactions pursuant to our policies in areas such as counterparty exposure and hedging practices.  Credit risk related to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and through periodic settlements of positions.
All derivative instruments are reported at fair value in the Consolidated Balance Sheets.  Designation to support hedge accounting is performed on a specific exposure basis.  For financial instruments qualifying as cash flow hedges, we record changes in the fair value of derivatives (to the extent they are effective as hedges) in other comprehensive income (loss), net of deferred taxes. Changes in fair value of derivatives not qualifying as hedges are recorded in earnings.
Foreign currency denominated assets and liabilities are translated into U.S. dollars.  Adjustments from currency rate changes are recorded in the cumulative translation adjustment account in shareholders’ equity until the related foreign entity is sold or substantially liquidated.
Leases
Leases
We identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset.  For our contracts that contain both lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs or other goods/services), we allocate the consideration in the contract to each component based on its standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the commencement date.  For these leases, we capitalize the lesser of a) the present value of the minimum lease payments over the lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to
use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option.  Operating leases are recognized as a single lease cost on a straight-line basis over the lease term, while finance lease cost is recognized separately as amortization and interest expense.
Product Liabilities
Product Liabilities
We accrue for product liability claims and related defense costs when a loss is probable and reasonably estimable.  Our estimates are generally based on the specifics of each claim or incident and our best estimate of the probable loss using historical experience.
Environmental Liabilities and Asset Retirement Obligations
Environmental Liabilities and Asset Retirement Obligations
Liabilities for environmental matters are recorded on a site-by-site basis when it is probable that an obligation has been incurred and the cost can be reasonably estimated. We estimate our accrued environmental liabilities using currently available facts, existing technology, and presently enacted laws and regulations, all of which are subject to a number of factors and uncertainties. Our environmental liabilities are not discounted and do not take into consideration possible future insurance proceeds or significant amounts from claims against other third parties.
We have incurred asset retirement obligations primarily related to costs to remove and dispose of underground storage tanks and asbestos materials used in insulation, adhesive fillers and floor tiles. Currently, there is no legal requirement to remove these items and there is no plan to remodel the related facilities or otherwise cause the impacted items to require disposal. Since these asset retirement obligations are not probable, there is no related liability recorded in the Consolidated Balance Sheets.
Warranty Liabilities
Warranty Liabilities
For our assurance-type warranty programs, we estimate the costs that may be incurred and record a liability in the amount of such costs at the time product revenues are recognized.  Factors that affect this liability include the number of products sold, historical costs per claim, length of warranty period, contractual recoveries from vendors and historical and anticipated rates of warranty claims, including production and warranty patterns for new models.  We assess the adequacy of our recorded warranty liability periodically and adjust the amounts as necessary. Additionally, we may establish a warranty liability related to the issuance of aircraft service bulletins for aircraft no longer covered under the limited warranty programs.
Research and Development Costs
Research and Development Costs
Our customer-funded research and development costs are charged directly to the related contracts, which primarily consist of U.S. Government contracts. In accordance with government regulations, we recover a portion of company-funded research and development costs through overhead rate charges on our U.S. Government contracts.  Research and development costs that are not reimbursable under a contract with the U.S. Government or another customer are charged to expense as incurred.
Income Taxes
Income Taxes
The provision for income tax expense is calculated on reported income before income taxes based on current tax law and includes, in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Tax laws may require items to be included in the determination of taxable income at different times from when the items are reflected in the financial statements. Deferred tax balances reflect the effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and their tax bases, as well as from net operating losses and tax credit carryforwards, and are stated at enacted tax rates in effect for the year taxes are expected to be paid or recovered.
Deferred tax assets represent tax benefits for tax deductions or credits available in future years and require certain estimates and assumptions to determine whether it is more likely than not that all or a portion of the benefit will not be realized. The recoverability of these future tax deductions and credits is determined by assessing the adequacy of future expected taxable income from all sources, including the future reversal of existing taxable temporary differences, taxable income in carryback years, estimated future taxable income and available tax planning strategies. Should a change in facts or circumstances lead to a change in judgment about the ultimate recoverability of a deferred tax asset, we record or adjust the related valuation allowance in the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in income tax expense.  
We record tax benefits for uncertain tax positions based upon management’s evaluation of the information available at the reporting date.  To be recognized in the financial statements, the tax position must meet the more-likely-than-not threshold that the position will be sustained upon examination by the tax authority based on technical merits assuming the tax authority has full knowledge of all relevant information. For positions meeting this recognition threshold, the benefit is measured as the largest amount of benefit that meets the more-likely-than-not threshold to be sustained. We periodically evaluate these tax positions based on the latest available information.  For tax positions that do not meet the threshold requirement, we recognize net tax-related interest and penalties for continuing operations in income tax expense.
v3.25.4
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Jan. 03, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Change in Carrying Amount of Goodwill by Segment
The changes in the carrying amount of goodwill by segment are as follows:
(In millions)Textron
Aviation		BellTextron
Systems		IndustrialTextron eAviationTotal
Balance at December 30, 2023$633 $37 $1,010 $470 $145 $2,295 
Acquisitions— — — — 10 10 
Foreign currency translation(1)— — (7)(9)(17)
Balance at December 28, 2024632 37 1,010 463 146 2,288 
Foreign currency translation1 — — 13 19 33 
Balance at January 3, 2026$633 $37 $1,010 $476 $165 $2,321 
Schedule of Intangible Assets
Our intangible assets are summarized below:
January 3, 2026December 28, 2024
(Dollars in millions)Weighted-Average
Amortization
Period (in years)		Gross
Carrying
Amount		Accumulated
Amortization		NetGross
Carrying
Amount		Accumulated
Amortization		Net
Trade names and trademarks18$201 $(12)$189 $199 $(11)$188 
Patents and technology15515 (387)128 509 (360)149 
Customer relationships and
   contractual agreements		15358 (337)21 356 (331)25 
Total$1,074 $(736)$338 $1,064 $(702)$362 
Schedule of Intangible Assets
Our intangible assets are summarized below:
January 3, 2026December 28, 2024
(Dollars in millions)Weighted-Average
Amortization
Period (in years)		Gross
Carrying
Amount		Accumulated
Amortization		NetGross
Carrying
Amount		Accumulated
Amortization		Net
Trade names and trademarks18$201 $(12)$189 $199 $(11)$188 
Patents and technology15515 (387)128 509 (360)149 
Customer relationships and
   contractual agreements		15358 (337)21 356 (331)25 
Total$1,074 $(736)$338 $1,064 $(702)$362 
v3.25.4
Accounts Receivable and Finance Receivables (Tables)
 12 Months Ended
Jan. 03, 2026
Receivables [Abstract]  
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)January 3,
2026		December 28,
2024
Commercial$690 $738 
U.S. Government contracts149 230 
839 968 
Allowance for credit losses(16)(19)
Total$823 $949 
Finance Receivables
Finance receivables are presented in the following table:
(In millions)January 3,
2026		December 28,
2024
Finance receivables$593 $622 
Allowance for credit losses(19)(19)
Total finance receivables, net$574 $603 
Financing Receivables Categorized Based on Credit Quality Indicators
Finance receivables categorized based on the credit quality indicators and by delinquency aging category are summarized as follows:
(Dollars in millions)January 3,
2026		December 28,
2024
Performing$578 $612 
Watchlist13 — 
Nonaccrual2 10 
Nonaccrual as a percentage of finance receivables0.34%1.61%
Current and less than 31 days past due$584 $609 
31-60 days past due9 13 
61-90 days past due— — 
Over 90 days past due— — 
60+ days contractual delinquency as a percentage of finance receivables—%—%
Finance Receivables By Delinquency Aging Category
Finance receivables categorized based on the credit quality indicators and by delinquency aging category are summarized as follows:
(Dollars in millions)January 3,
2026		December 28,
2024
Performing$578 $612 
Watchlist13 — 
Nonaccrual2 10 
Nonaccrual as a percentage of finance receivables0.34%1.61%
Current and less than 31 days past due$584 $609 
31-60 days past due9 13 
61-90 days past due— — 
Over 90 days past due— — 
60+ days contractual delinquency as a percentage of finance receivables—%—%
v3.25.4
Inventories (Tables)
 12 Months Ended
Jan. 03, 2026
Inventory Disclosure [Abstract]  
Inventories
Inventories are composed of the following:
(In millions)January 3,
2026		December 28,
2024
Finished goods$1,104 $1,138 
Work in process2,065 1,769 
Raw materials and components1,109 1,164 
Total$4,278 $4,071 
v3.25.4
Property, Plant and Equipment, Net (Tables)
 12 Months Ended
Jan. 03, 2026
Property, Plant and Equipment [Abstract]  
Manufacturing group's property, plant and equipment, net
Our Manufacturing group’s property, plant and equipment, net is composed of the following:
(Dollars in millions)Useful Lives
(in years)		January 3,
2026		December 28,
2024
Land, buildings and improvements2-40$2,514 $2,364 
Machinery and equipment2-205,860 5,636 
8,374 8,000 
Accumulated depreciation and amortization(5,784)(5,471)
Total$2,590 $2,529 
v3.25.4
Accounts Payable and Liabilities (Tables)
 12 Months Ended
Jan. 03, 2026
Other Liabilities Disclosure [Abstract]  
Schedule of Other Current Liabilities of Manufacturing Group
The other current liabilities of our Manufacturing group are summarized below:
(In millions)January 3,
2026		December 28,
2024
Contract liabilities$1,897 $1,734 
Salaries, wages and employer taxes442 456 
Current portion of warranty and product repair and maintenance program liabilities138 177 
Other686 727 
Total$3,163 $3,094 
Changes in Warranty Liability
Changes in our current and non-current warranty liability are as follows:
(In millions)202520242023
Balance at beginning of year$173 $172 $149 
Provision82 79 76 
Changes to estimates35 (2)13 
Settlements(89)(72)(69)
Other*(18)(4)3 
Balance at end of year$183 $173 $172 
* Other includes business dispositions and currency translation adjustments.
v3.25.4
Leases (Tables)
 12 Months Ended
Jan. 03, 2026
Leases [Abstract]  
Schedule of Balance Sheet and Other Information
Balance sheet and other information related to our leases is as follows:
(Dollars in millions)January 3,
2026		December 28,
2024
Operating leases:
Other assets$390 $360 
Other current liabilities58 55 
Other liabilities346 316 
Weighted-average remaining lease term (in years)9.510.0
Weighted-average discount rate4.97%4.84%
Finance leases:
Property, plant and equipment, less accumulated amortization
  of $14 million and $9 million, respectively
$95 $95 
Long-term debt, including current portion100 97 
Weighted-average remaining lease term (in years)5.95.9
Weighted-average discount rate6.63%6.72%
v3.25.4
Debt and Credit Facilities (Tables)
 12 Months Ended
Jan. 03, 2026
Debt Disclosure [Abstract]  
Debt Summary
Our debt is summarized in the table below:
(In millions)January 3,
2026		December 28,
2024
Manufacturing group
3.875% due 2025
$— $350 
4.00% due 2026*
— 350 
3.65% due 2027
350 350 
3.375% due 2028
300 300 
3.90% due 2029
300 300 
3.00% due 2030
650 650 
2.45% due 2031
500 500 
6.10% due 2033
350 350 
5.50% due 2035
500 — 
4.95% due 2036
500 — 
Other (weighted-average rate of 6.08% and 5.87%, respectively)
89 97 
Total Manufacturing group debt$3,539 $3,247 
Less: Current portion of long-term debt(5)(357)
Total Long-term debt$3,534 $2,890 
Finance group
Variable-rate note due 2028 (weighted-average rate of 5.04% and 5.70%, respectively)
$25 $25 
Fixed-rate note due 2027 (4.40%)
50 50 
Floating Rate Junior Subordinated Notes due 2067 (5.85% and 6.52%, respectively)
264 264 
Other— 2 
Total Finance group debt$339 $341 
* On December 31, 2025, we repaid our $350 million 4.00% notes due in March 2026.
Schedule of Required Principal Payments
The following table shows required principal payments during the next five years on debt outstanding at January 3, 2026:
(In millions)20262027202820292030
Manufacturing group$5 $355 $375 $301 $651 
Finance group— 50 25 — — 
Total$5 $405 $400 $301 $651 
v3.25.4
Derivative Instruments and Fair Value Measurements (Tables)
 12 Months Ended
Jan. 03, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Carrying Value and Estimated Fair Value of Financial Instruments Not Reflected in The Financial Statements at Fair Value
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
January 3, 2026December 28, 2024
(In millions)Carrying
Value		Estimated
Fair Value		Carrying
Value		Estimated
Fair Value
Manufacturing group
Debt, excluding leases$(3,459)$(3,406)$(3,164)$(2,989)
Finance group
Finance receivables, excluding leases493 528 439 454 
Debt(339)(312)(341)(311)
v3.25.4
Shareholders' Equity (Tables)
 12 Months Ended
Jan. 03, 2026
Equity [Abstract]  
Schedule of Capital Stock Outstanding common stock activity is presented below:
(In thousands)202520242023
Balance at beginning of year182,964 192,898 206,161 
Share repurchases(10,650)(12,890)(16,169)
Share-based compensation activity1,996 2,956 2,906 
Balance at end of year174,310 182,964 192,898 
Schedule of Weighted-Average Shares Outstanding for Basic and Diluted EPS
The weighted-average shares outstanding for basic and diluted EPS are as follows:
(In thousands)202520242023
Basic weighted-average shares outstanding178,895 188,318 199,719 
Dilutive effect of stock options1,363 1,989 2,055 
Diluted weighted-average shares outstanding180,258 190,307 201,774 
Schedule of Components of Accumulated Other Comprehensive Income (Loss)
The components of Accumulated other comprehensive income (loss) are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments		Foreign
Currency
Translation
Adjustments		Deferred
Gains (Losses)
on Hedge
Contracts		Accumulated
Other
Comprehensive
Income (Loss)
Balance at December 30, 2023$(598)$(49)$3 $(644)
Other comprehensive income before reclassifications418 (74)(9)335 
Reclassified from Accumulated other comprehensive income (loss)1 3 1 5 
Balance at December 28, 2024$(179)$(120)$(5)$(304)
Other comprehensive income before reclassifications299 134 (2)431 
Reclassified from Accumulated other comprehensive income (loss)(1)(2)5 2 
Balance at January 3, 2026$119 $12 $(2)$129 
Schedule of Before and After Tax Components of Other Comprehensive Income (Loss)
The before and after-tax components of other comprehensive income (loss) are presented below:
202520242023
(In millions)Pre-Tax
Amount		Tax
(Expense)
Benefit		After-
Tax
Amount		Pre-Tax
Amount		Tax
(Expense)
Benefit		After-
Tax
Amount		Pre-Tax
Amount		Tax
(Expense)
Benefit		After-
Tax
Amount
Pension and postretirement benefits
  adjustments:
Unrealized gains (losses)$430 $(108)$322 $568 $(136)$432 $(102)$25 $(77)
Amortization of net actuarial gain*(9)2 (7)(5)1 (4)(7)2 (5)
Amortization of prior service cost*9 (3)6 8 (3)5 8 (3)5 
Recognition of prior service cost(29)6 (23)(19)5 (14)(7)2 (5)
Pension and postretirement benefits
  adjustments, net		401 (103)298 552 (133)419 (108)26 (82)
Foreign currency translation adjustments:
Foreign currency translation adjustments134 — 134 (74)— (74)45 — 45 
Business disposition(2)— (2)— — — — — — 
Other— — — 3 — 3 — — — 
Foreign currency translation adjustments, net132 — 132 (71)— (71)45 — 45 
Deferred gains (losses) on hedge contracts:
Current deferrals(2)— (2)(11)2 (9)(2)1 (1)
Reclassification adjustments6 (1)5 2 (1)1 8 (2)6 
Deferred gains (losses) on hedge
  contracts, net		4 (1)3 (9)1 (8)6 (1)5 
Total$537 $(104)$433 $472 $(132)$340 $(57)$25 $(32)
* These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 14 for additional information.
v3.25.4
Segment Financial Information (Tables)
 12 Months Ended
Jan. 03, 2026
Segment Reporting [Abstract]  
Reconciliation of Revenues by Segment
Our revenues and expenses by segment are provided below:
(In millions)Textron AviationBellTextron SystemsIndustrialTextron eAviationFinanceTotal
2025
Revenues$5,955 $4,282 $1,247 $3,213 $27 $75 $14,799 
Costs and expenses:
Cost of sales4,637 3,537 939 2,733 27 — 11,873 
Research and development costs214 153 45 67 42 — 521 
Selling and administrative expense410 229 88 268 21 8 1,024 
Interest expense, net— — — — — 18 18 
Segment profit (loss)$694 $363 $175 $145 $(63)$49 $1,363 
2024
Revenues$5,284 $3,579 $1,241 $3,515 $33 $50 $13,702 
Costs and expenses:
Cost of sales4,102 2,899 929 2,993 29 — 10,952 
Research and development costs208 97 51 72 63 — 491 
Selling and administrative expense408 213 107 299 17 (4)1,040 
Interest expense, net— — — — — 19 19 
Segment profit (loss)$566 $370 $154 $151 $(76)$35 $1,200 
2023
Revenues$5,373 $3,147 $1,235 $3,841 $32 $55 $13,683 
Costs and expenses:
Cost of sales4,116 2,392 925 3,221 35 — 10,689 
Research and development costs199 192 53 80 46 — 570 
Selling and administrative expense409 243 110 312 14 (6)1,082 
Interest expense, net— — — — — 15 15 
Segment profit (loss)$649 $320 $147 $228 $(63)$46 $1,327 
Reconciliation of Segment Profit to Income From Continuing Operations Before Income Taxes
A reconciliation of segment profit to income from continuing operations before income taxes is presented below:
(In millions)202520242023
Segment profit$1,363 $1,200 $1,327 
Unallocated amounts:
Corporate expenses and other, net(149)(116)(143)
Interest expense, net for Manufacturing group(108)(78)(62)
LIFO inventory provision(199)(176)(107)
Intangible asset amortization(32)(34)(39)
Special charges*(4)(78)(126)
Inventory charge*— (38)— 
Non-service components of pension and postretirement income, net266 263 237 
Income from continuing operations before income taxes$1,137 $943 $1,087 
* See Note 15 for additional information.
Other Information by Segment
Other information by segment is provided below:
AssetsCapital ExpendituresDepreciation and Amortization
(In millions)January 3,
2026		December 28,
2024		202520242023202520242023
Textron Aviation$4,907 $4,624 $140 $136 $138 $167 $164 $160 
Bell3,132 2,992 132 122 119 103 86 89 
Textron Systems2,107 2,036 41 40 48 48 48 41 
Industrial2,305 2,378 68 62 91 68 70 89 
Textron eAviation313 286 1 4 4 8 7 7 
Finance677 680 — — — — — — 
Corporate4,688 3,842 1 — 2 7 7 9 
Total$18,129 $16,838 $383 $364 $402 $401 $382 $395 
v3.25.4
Revenues (Tables)
 12 Months Ended
Jan. 03, 2026
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue by Major Product Type, Customer type and Geographic Location
Our revenues disaggregated by major product type are presented below:
(In millions)202520242023
Aircraft$3,922 $3,374 $3,577 
Aftermarket parts and services2,033 1,910 1,796 
Textron Aviation$5,955 $5,284 $5,373 
Military aircraft and support programs2,618 2,048 1,701 
Commercial helicopters, parts and services1,664 1,531 1,446 
Bell$4,282 $3,579 $3,147 
Textron Systems$1,247 $1,241 $1,235 
Fuel systems and functional components1,883 1,891 1,954 
Specialized vehicles1,330 1,624 1,887 
Industrial$3,213 $3,515 $3,841 
Textron eAviation$27 $33 $32 
Finance$75 $50 $55 
Total revenues$14,799 $13,702 $13,683 
Our revenues for our segments by customer type and geographic location are presented below:
(In millions)Textron
Aviation		BellTextron
Systems		IndustrialTextron eAviationFinanceTotal
2025
Customer type:
Commercial$5,579 $1,634 $306 $3,185 $27 $75 $10,806 
U.S. Government376 2,648 941 28 — — 3,993 
Total revenues$5,955 $4,282 $1,247 $3,213 $27 $75 $14,799 
Geographic location:
United States$4,281 $3,156 $1,129 $1,668 $14 $35 $10,283 
Europe467 122 43 649 7 1 1,289 
South and Latin America628 281 7 336 2 26 1,280 
Other international579 723 68 560 4 13 1,947 
Total revenues$5,955 $4,282 $1,247 $3,213 $27 $75 $14,799 
2024
Customer type:
Commercial$4,985 $1,490 $292 $3,482 $33 $50 $10,332 
U.S. Government299 2,089 949 33 — — 3,370 
Total revenues$5,284 $3,579 $1,241 $3,515 $33 $50 $13,702 
Geographic location:
United States$4,019 $2,644 $1,112 $1,865 $19 $17 $9,676 
Europe371 85 45 693 11 5 1,210 
South and Latin America336 201 12 306 — 19 874 
Other international558 649 72 651 3 9 1,942 
Total revenues$5,284 $3,579 $1,241 $3,515 $33 $50 $13,702 
2023
Customer type:
Commercial$5,155 $1,407 $282 $3,819 $32 $55 $10,750 
U.S. Government218 1,740 953 22 — — 2,933 
Total revenues$5,373 $3,147 $1,235 $3,841 $32 $55 $13,683 
Geographic location:
United States$3,873 $2,228 $1,103 $2,067 $17 $17 $9,305 
Europe432 149 54 766 11 2 1,414 
South and Latin America284 224 12 300 1 21 842 
Other international784 546 66 708 3 15 2,122 
Total revenues$5,373 $3,147 $1,235 $3,841 $32 $55 $13,683 
v3.25.4
Share-Based Compensation (Tables)
 12 Months Ended
Jan. 03, 2026
Share-Based Payment Arrangement [Abstract]  
Compensation expense included in net income Compensation expense included in net income for our share-based compensation plans is as follows:
(In millions)202520242023
Compensation expense$81 $66 $94 
Income tax benefit(20)(16)(23)
Total compensation expense included in net income$61 $50 $71 
Weighted-average fair value of stock options and assumptions used in option-pricing model The assumptions used in our option-pricing model for these grants and the weighted-average fair value for these options are as follows:
202520242023
Fair value of options at grant date$22.01$27.69$23.83
Dividend yield0.1%0.1%0.1%
Expected volatility25.1%27.2%29.4%
Risk-free interest rate4.1%4.3%4.2%
Expected term (in years)4.84.84.8
Stock option activity
The stock option activity during 2025 is provided below:
(Options in thousands)Number of
Options		Weighted-
Average
Exercise Price
Outstanding at beginning of year6,649 $61.70 
Granted1,022 74.73 
Exercised(809)(52.23)
Forfeited or expired(70)(79.25)
Outstanding at end of year6,792 $64.61 
Exercisable at end of year4,791 $58.58 
Activity for Restricted Stock Units
The 2025 activity for restricted stock units is provided below:
Units Payable in StockUnits Payable in Cash
(Shares/Units in thousands)Number of
Shares		Weighted-
Average Grant
Date Fair Value		Number of
Units		Weighted-
Average Grant
Date Fair Value
Outstanding at beginning of year, nonvested331 $75.50 631 $77.75 
Granted129 73.07 259 74.72 
Vested(101)(70.65)(195)(71.14)
Forfeited— — (22)(78.39)
Outstanding at end of year, nonvested359 $75.99 673 $78.48 
Fair value of awards vested and cash paid during respective periods
The fair value of the restricted stock unit awards that vested and/or amounts paid under these awards is as follows:
(In millions)202520242023
Fair value of awards vested$22 $42 $45 
Cash paid15 33 34 
The fair value of the performance share units that vested and/or amounts paid under these awards is as follows:
(In millions)202520242023
Fair value of awards vested$18 $13 $19 
Cash paid16 35 27 
Activity for Performance Share Units
The 2025 activity for our performance share units is as follows:
(Units in thousands)Number of
Units		Weighted-
Average Grant
Date Fair Value
Outstanding at beginning of year, nonvested394 $80.81 
Granted202 74.73 
Vested(200)(73.19)
Outstanding at end of year, nonvested396 $81.57 
v3.25.4
Retirement Plans (Tables)
 12 Months Ended
Jan. 03, 2026
Retirement Benefits [Abstract]  
Components of Net Periodic Benefit Cost (Income)
The components of net periodic benefit cost (income) and other amounts recognized in other comprehensive income (loss) (OCI) are as follows:
Pension BenefitsPostretirement Benefits
Other than Pensions
(In millions)202520242023202520242023
Net periodic benefit income
Service cost$63 $69 $67 $1 $1 $2 
Interest cost376 362 364 6 7 8 
Expected return on plan assets(648)(635)(610)— — — 
Amortization of prior service cost (credit)10 9 11 (1)(1)(3)
Amortization of net actuarial loss (gain)(1)3 1 (8)(8)(8)
Net periodic benefit income*$(200)$(192)$(167)$(2)$(1)$(1)
Other changes in plan assets and benefit obligations recognized in OCI
Current year actuarial loss (gain)$(427)$(561)$109 $(3)$(7)$(7)
Current year prior service cost29 19 7 — — — 
Amortization of net actuarial gain (loss)1 (3)(1)8 8 8 
Amortization of prior service credit (cost)(10)(9)(11)1 1 3 
Total recognized in OCI, before taxes$(407)$(554)$104 $6 $2 $4 
Total recognized in net periodic benefit income and OCI$(607)$(746)$(63)$4 $1 $3 
* Excludes the cost associated with the defined-contribution component that is included in certain of our U.S.-based defined benefit pension plans of $10 million in both 2025 and 2024, and $11 million in 2023.
Changes In The Projected Benefit Obligation And In The Fair Value of Plan Assets The changes in the projected benefit obligation and in the fair value of plan assets, along with our funded status, are as follows:
Pension BenefitsPostretirement Benefits
Other than Pensions
(In millions)January 3, 2026December 28, 2024January 3, 2026December 28, 2024
Change in projected benefit obligation
Projected benefit obligation at beginning of year$6,788 $7,205 $121 $136 
Service cost63 69 1 1 
Interest cost376 362 6 7 
Plan participants’ contributions— — 2 3 
Actuarial losses (gains)75 (392)2 (7)
Benefits paid(458)(454)(21)(19)
Plan amendment29 19 — — 
Foreign exchange rate changes and other45 (21)— — 
Projected benefit obligation at end of year$6,918 $6,788 $111 $121 
Change in fair value of plan assets
Fair value of plan assets at beginning of year$8,772 $8,413 
Actual return on plan assets1,145 806 
Employer contributions31 34 
Benefits paid(458)(454)
Foreign exchange rate changes and other69 (27)
Fair value of plan assets at end of year$9,559 $8,772 
Funded status at end of year$2,641 $1,984 $(111)$(121)
Amounts Recognized In Our Balance Sheets
Amounts recognized in our balance sheets are as follows:
Pension BenefitsPostretirement Benefits
Other than Pensions
(In millions)January 3, 2026December 28, 2024January 3, 2026December 28, 2024
Non-current assets$2,973 $2,311 $— $— 
Current liabilities(29)(29)(14)(15)
Non-current liabilities(303)(298)(97)(106)
Recognized in Accumulated other comprehensive income (loss), pre-tax:
Net loss (gain)(261)167 (63)(69)
Prior service cost (credit)71 52 — (1)
Pension Plans With Accumulated Benefit Obligations Exceeding The Fair Value Of Plan Assets
Pension plans with accumulated benefit obligation exceeding the fair value of plan assets are as follows:
(In millions)January 3, 2026December 28, 2024
Accumulated benefit obligation$320 $316 
Fair value of plan assets— — 
Pension Plans With Projected Benefit Obligations Exceeding The Fair Value of Plan Assets
Pension plans with projected benefit obligation exceeding the fair value of plan assets are as follows:
(In millions)January 3, 2026December 28, 2024
Projected benefit obligation$332 $327 
Fair value of plan assets— — 
Weighted-average Assumptions Used For Pension and Postretirement Plans
The weighted-average assumptions we use for our pension and postretirement plans are as follows:
Pension BenefitsPostretirement Benefits
Other than Pensions
202520242023202520242023
Net periodic benefit cost
Discount rate5.73%5.19%5.51%5.75%5.40%5.70%
Expected long-term rate of return on assets7.16%7.16%7.14%
Rate of compensation increase3.97%3.97%3.97%
Benefit obligations at year-end
Discount rate5.60%5.73%5.19%5.40%5.75%5.40%
Rate of compensation increase3.96%3.97%3.97%
Interest crediting rate for cash balance plans5.25%5.25%5.25%
Target Allocation Ranges Our target allocation ranges are as follows:
U.S. Plan Assets
Domestic equity securities17%to33%
International equity securities6%to17%
Global equities5%to17%
Debt securities27%to38%
Real estate7%to13%
Private investment partnerships7%to13%
Non-U.S. Plan Assets
Equity securities55%to75%
Debt securities25%to45%
Real estate—%to13%
Fair Value of Total Pension Plan Assets
The fair value of our pension plan assets by major category and valuation method is as follows:
January 3, 2026December 28, 2024
(In millions)Level 1Level 2Level 3Not
Subject to
Leveling		Level 1Level 2Level 3Not
Subject to
Leveling
Cash and equivalents$254 $6 $— $— $159 $1 $— $— 
Equity securities:
Domestic2,969 — — 342 3,151 — — 307 
International1,317 — — 349 1,028 — — 290 
Mutual funds184 — — — 194 — — — 
Debt securities:
National, state and local governments1,327 112 — 21 899 60 — 13 
Corporate debt83 607 — 154 46 618 — 148 
Private investment partnerships— — — 992 — — — 974 
Real estate— — 449 393 — — 479 405 
Total$6,134 $725 $449 $2,251 $5,477 $679 $479 $2,137 
Reconciliation for Fair Value Measurements That Use Significant Unobservable Inputs
The table below presents a reconciliation of the fair value measurements for owned real estate properties, which use significant unobservable inputs (Level 3):
(In millions)20252024
Balance at beginning of year$479 $508 
Unrealized gains (losses), net9 (25)
Realized gains (losses), net(19)16 
Purchases, sales and settlements, net(20)(20)
Balance at end of year$449 $479 
Estimated Future Benefit Payments Which Reflect Expected Future Service To Be Paid By The Plans Benefit payments that we expect to pay on an undiscounted basis are as follows:
(In millions)20262027202820292030
2031-2035
Pension benefits$466 $475 $484 $492 $497 $2,536 
Postretirement benefits other than pensions14 14 13 12 12 44 
v3.25.4
Special Charges (Tables)
 12 Months Ended
Jan. 03, 2026
Restructuring and Related Activities [Abstract]  
Schedule of Special Charges
Special charges by segment and type of cost (income) are as follows:
(In millions)Severance
Costs		Contract
Termination
and Other
Costs		Asset
Impairments		OtherTotal
2025
Industrial$— $— $— $(4)$(4)
Textron Systems5 3 — — 8 
Total special charges$5 $3 $— $(4)$4 
2024
Industrial$37 $32 $3 $— $72 
Bell1 — — — 1 
Textron Systems5 — — — 5 
Total special charges$43 $32 $3 $— $78 
2023
Industrial$21 $— $87 $— $108 
Bell13 — — — 13 
Textron Systems5 — — — 5 
Total special charges$39 $— $87 $— $126 
Schedule of Restructuring Reserve Activity
Our restructuring reserve activity is summarized below:
(In millions)Severance
Costs		Contract
Termination
and Other
Costs		Total
Balance at December 30, 2023$42 $5 $47 
Provision for 2023 restructuring plan49 32 81 
Cash paid(46)(3)(49)
Reversals(6)— (6)
Foreign currency translation(2)— (2)
Balance at December 28, 2024$37 $34 $71 
Provision5 3 8 
Cash paid(23)(18)(41)
Business disposition(7)(15)(22)
Foreign currency translation3 — 3 
Balance at January 3, 2026$15 $4 $19 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Jan. 03, 2026
Income Tax Disclosure [Abstract]  
Income Before Income Taxes Income from continuing operations before income taxes is as follows:
(In millions)202520242023
U.S.$903 $739 $905 
Non-U.S.234 204 182 
Income from continuing operations before income taxes$1,137 $943 $1,087 
Income Tax Expense (Benefit)
Income tax expense is summarized as follows:
(In millions)202520242023
Current:
Federal$(7)$84 $267 
State8 21 18 
Non-U.S.58 61 72 
Total current59 166 357 
Deferred:
Federal165 (34)(181)
State(6)(24)1 
Non-U.S.(4)10 (12)
Total deferred155 (48)(192)
Total income tax expense (benefit):
Federal158 50 86 
State2 (3)19 
Non-U.S.54 71 60 
Total income tax expense$214 $118 $165 
Effective Income Tax Rate Reconciliation This standard has been adopted on a prospective basis and the new presentation of the U.S. Federal statutory income tax rate to our effective tax rate for 2025 is provided below.
2025
(Dollars in millions)AmountPercentage
U.S. Federal statutory income tax rate$239 21.0 %
State and local income taxes, net of Federal income tax effects*2 0.2 %
Foreign tax effects6 0.5 %
Effect of cross-border tax laws(2)(0.2)%
Tax credits - research and development(36)(3.2)%
Non-taxable or nondeductible items:
Share-based compensation29 2.6 %
Other6 0.5 %
Changes in unrecognized tax benefits:
Audit settlement(17)(1.5)%
Other3 0.3 %
Other adjustments(16)(1.4)%
Effective income tax rate$214 18.8 %
* State income taxes for Kansas and Texas comprise the majority (greater than 50%) of this category. In 2025, an $18 million benefit was recognized related to the enactment of a single sales factor apportionment in Kansas.
A reconciliation of the U.S. Federal statutory income tax rate to our effective income tax rate for prior years is provided below.
20242023
U.S. Federal statutory income tax rate21.0%21.0%
Increase (decrease) resulting from:
State income taxes, net of Federal tax benefit(0.2)%1.4%
Non-U.S. tax rate differential and foreign tax credits2.1%1.5%
Research and development tax credits(5.4)%(4.7)%
Uncertain tax positions release for 2012 to 2017 IRS audit(2.9)%—%
Foreign-derived intangible income deduction(1.7)%(3.2)%
Other, net(0.4)%(0.8)%
Effective income tax rate12.5%15.2%
Reconciliation of Unrecognized Tax Benefits A reconciliation of these unrecognized tax benefits is as follows:
(In millions)202520242023
Balance at beginning of year$215 $222 $231 
Additions for tax positions related to current year19 17 16 
Additions for tax positions of prior years— 4 3 
Reductions for tax positions of prior years(1)— (28)
Reductions for settlements(17)(28)— 
Balance at end of year$216 $215 $222 
Deferred Taxes
The significant components of our net deferred tax assets/(liabilities) are provided below:
(In millions)January 3,
2026		December 28,
2024
Capitalized research and development expenditures$459 $631 
U.S. operating loss and tax credit carryforwards (a)232 212 
Accrued liabilities (b)201 224 
Obligation for pension and postretirement benefits130 109 
Operating lease liabilities 102 93 
Non-U.S. operating loss and tax credit carryforwards (c)82 88 
Deferred compensation70 94 
Prepaid pension benefits(721)(562)
Property, plant and equipment, principally depreciation(186)(198)
Amortization of goodwill and other intangibles(157)(184)
Operating lease right-of-use assets(99)(90)
Valuation allowance on deferred tax assets(76)(82)
Other, net(25)(74)
Deferred taxes, net$12 $261 
(a)At January 3, 2026, U.S. operating loss and tax credit carryforward benefits of $184 million expire through 2045 if not utilized and $48 million may be carried forward indefinitely.
(b)Accrued liabilities include warranty reserves, self-insured liabilities and interest.
(c)At January 3, 2026, non-U.S. operating loss and tax credit carryforward benefits of $73 million may be carried forward indefinitely.
The following table presents the breakdown of our deferred taxes:
(In millions)January 3,
2026		December 28,
2024
Manufacturing group:
Deferred tax assets, net of valuation allowance$145 $394 
Deferred tax liabilities(123)(96)
Finance group – Deferred tax liabilities(10)(37)
Net deferred tax asset$12 $261 
v3.25.4
Supplemental Cash Flow Information (Tables)
 12 Months Ended
Jan. 03, 2026
Supplemental Cash Flow Elements [Abstract]  
Cash payments and receipts
Our cash payments and receipts are as follows:
(In millions)202520242023
Interest paid:
Manufacturing group$135 $124 $110 
Finance group17 18 12 
Net income taxes paid:
Manufacturing group92 181 338 
Finance group12 10 14 
v3.25.4
Summary of Significant Accounting Policies - Principle of Consolidation and Financial Statement Presentation (Details)
 12 Months Ended
Jan. 03, 2026
borrowing_group
Accounting Policies [Abstract]  
Number of borrowing groups 2
v3.25.4
Summary of Significant Accounting Policies - Collaborative Arrangements (Details) - Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
 12 Months Ended
Jan. 03, 2026
Cost -plus contract  
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]  
Profit allocation percentage 50.00%
Fixed-price contract  
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]  
Profit allocation percentage 50.00%
v3.25.4
Summary of Significant Accounting Policies - Revenue Recognition (Details)
 12 Months Ended
Jan. 03, 2026
U. S. Government  
Revenues  
Contract with U.S. Government, percent of total revenues 27.00%
U. S. Government | Fixed-price and fixed-price incentive contracts  
Revenues  
Percentage of revenue under fixed-price and fixed-price incentive contracts 53.00%
Maximum | U. S. Government | Performance-based  
Revenues  
Percentage of contract price received for performance based payments on US Government Contracts 90.00%
Maximum | U. S. Government | Progress payments  
Revenues  
Percentage of costs incurred representing progress payments on US Government Contracts 80.00%
Commercial Contract | Minimum  
Revenues  
Period of warranty programs 1 year
Commercial Contract | Maximum  
Revenues  
Period of warranty programs 5 years
v3.25.4
Summary of Significant Accounting Policies - Finance Revenues (Details)
 12 Months Ended
Jan. 03, 2026
Minimum | Nonperforming  
Revenues  
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful 3 months
v3.25.4
Summary of Significant Accounting Policies - Contracts Estimates (Details) - Cumulative catch-up method - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Use of Estimates      
Cumulative catch-up adjustments increase (decrease) $ 66 $ 31 $ 44
Change in accounting estimate financial effect increase (decrease) in net income $ 50 $ 24 $ 34
Change in accounting estimate financial effect increase (decrease) in income, per share (in dollars per share) $ 0.28 $ 0.12 $ 0.17
Revenue increased (reduced) from performance obligations satisfied in prior periods $ 66 $ 32 $ 42
v3.25.4
Summary of Significant Accounting Policies - Environmental Liabilities and Asset Retirement Obligations (Details)
Jan. 03, 2026
USD ($)
Environmental Liabilities and Asset Retirement Obligations  
Asset retirement obligations $ 0
v3.25.4
Goodwill and Intangible Assets - Goodwill (Details) - Manufacturing group - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Changes in the carrying amount of goodwill    
Beginning Balance $ 2,288 $ 2,295
Acquisitions   10
Foreign currency translation 33 (17)
Ending Balance 2,321 2,288
Textron Aviation    
Changes in the carrying amount of goodwill    
Beginning Balance 632 633
Acquisitions   0
Foreign currency translation 1 (1)
Ending Balance 633 632
Bell    
Changes in the carrying amount of goodwill    
Beginning Balance 37 37
Acquisitions   0
Foreign currency translation 0 0
Ending Balance 37 37
Textron Systems    
Changes in the carrying amount of goodwill    
Beginning Balance 1,010 1,010
Acquisitions   0
Foreign currency translation 0 0
Ending Balance 1,010 1,010
Industrial    
Changes in the carrying amount of goodwill    
Beginning Balance 463 470
Acquisitions   0
Foreign currency translation 13 (7)
Ending Balance 476 463
Textron eAviation    
Changes in the carrying amount of goodwill    
Beginning Balance 146 145
Acquisitions   10
Foreign currency translation 19 (9)
Ending Balance $ 165 $ 146
v3.25.4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]    
Gross Carrying Amount $ 1,074 $ 1,064
Accumulated Amortization (736) (702)
Net $ 338 362
Trade names and trademarks    
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]    
Weighted-Average Amortization Period (in years) 18 years  
Gross Carrying Amount $ 201 199
Accumulated Amortization (12) (11)
Net $ 189 188
Patents and technology    
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]    
Weighted-Average Amortization Period (in years) 15 years  
Gross Carrying Amount $ 515 509
Accumulated Amortization (387) (360)
Net $ 128 149
Customer relationships and contractual agreements    
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]    
Weighted-Average Amortization Period (in years) 15 years  
Gross Carrying Amount $ 358 356
Accumulated Amortization (337) (331)
Net $ 21 $ 25
v3.25.4
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Total amortization expense $ 32 $ 34 $ 39
2026 29    
2027 28    
2028 27    
2029 26    
2030 9    
Trade names and trademarks      
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items]      
Indefinite-lived intangible assets $ 169 $ 169  
v3.25.4
Accounts Receivable and Finance Receivables - Accounts Receivable (Details) - Manufacturing group - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Accounts Receivable    
Accounts receivable, gross $ 839 $ 968
Allowance for credit losses (16) (19)
Total 823 949
Commercial    
Accounts Receivable    
Accounts receivable, gross 690 738
U. S. Government    
Accounts Receivable    
Accounts receivable, gross $ 149 $ 230
v3.25.4
Accounts Receivable and Finance Receivables - Finance Receivables (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Finance Receivables    
Finance receivables $ 593 $ 622
Allowance for credit losses (19) (19)
Total finance receivables, net $ 574 $ 603
v3.25.4
Accounts Receivable and Finance Receivables - Finance Receivables, Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Financing receivable, credit quality indicator    
Average balance of finance receivables $ 2.1  
United States | Geographic Concentration Risk | Financing Receivable    
Financing receivable, credit quality indicator    
Concentration risk percentage 27.00% 42.00%
International | Geographic Concentration Risk | Financing Receivable    
Financing receivable, credit quality indicator    
Concentration risk percentage 73.00% 58.00%
Performing    
Financing receivable, credit quality indicator    
Financing receivables percentage originated since the beginning of 2023 63.00%  
Financing receivables percentage originated from 2020 to 2022 18.00%  
Nonperforming | Nonaccrual    
Financing receivable, credit quality indicator    
Financing receivable percentage originating from 2023 to 2024 1  
Financing receivables percentage originated prior to 2020 100.00%  
Minimum    
Financing receivable, credit quality indicator    
Contractual terms 5 years  
Amortization period 5 years  
Minimum | Nonperforming    
Financing receivable, credit quality indicator    
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful 3 months  
Maximum    
Financing receivable, credit quality indicator    
Contractual terms 12 years  
Amortization period 15 years  
v3.25.4
Accounts Receivable and Finance Receivables - Finance Receivables By Delinquency Aging Category (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Financing Receivable, Past Due [Line Items]    
Finance receivables $ 593 $ 622
60+ days contractual delinquency as a percentage of finance receivables 0.00% 0.00%
Current and less than 31 days past due    
Financing Receivable, Past Due [Line Items]    
Finance receivables $ 584 $ 609
31-60 days past due    
Financing Receivable, Past Due [Line Items]    
Finance receivables 9 13
61-90 days past due    
Financing Receivable, Past Due [Line Items]    
Finance receivables 0 0
Over 90 days past due    
Financing Receivable, Past Due [Line Items]    
Finance receivables 0 0
Performing    
Financing Receivable, Past Due [Line Items]    
Finance receivables $ 578 $ 612
Nonperforming    
Financing Receivable, Past Due [Line Items]    
Nonaccrual as a percentage of finance receivables 0.34% 1.61%
Nonperforming | Watchlist    
Financing Receivable, Past Due [Line Items]    
Finance receivables $ 13 $ 0
Nonperforming | Nonaccrual    
Financing Receivable, Past Due [Line Items]    
Finance receivables $ 2 $ 10
v3.25.4
Inventories (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Inventories    
Finished goods $ 1,104 $ 1,138
Work in process 2,065 1,769
Raw materials and components 1,109 1,164
Total $ 4,278 $ 4,071
Percentage of inventories valued using LIFO 71.00% 69.00%
Amount LIFO inventory would be higher by had it been valued using the FIFO method $ 1,100 $ 877
v3.25.4
Property, Plant and Equipment, Net (Details) - Manufacturing group - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 8,374 $ 8,000  
Accumulated depreciation and amortization (5,784) (5,471)  
Total 2,590 2,529  
Depreciation expense 365 344 $ 353
Property, plant and equipment acquired but not yet paid for 51    
Land, buildings and improvements      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 2,514 2,364  
Land, buildings and improvements | Minimum      
Property, Plant and Equipment [Line Items]      
Useful Lives (in years) 2 years    
Land, buildings and improvements | Maximum      
Property, Plant and Equipment [Line Items]      
Useful Lives (in years) 40 years    
Machinery and equipment      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 5,860 $ 5,636  
Machinery and equipment | Minimum      
Property, Plant and Equipment [Line Items]      
Useful Lives (in years) 2 years    
Machinery and equipment | Maximum      
Property, Plant and Equipment [Line Items]      
Useful Lives (in years) 20 years    
v3.25.4
Accounts Payable and Liabilities - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Jun. 29, 2024
Supplier Finance Program [Line Items]      
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] Accounts payable Accounts payable  
Supplier financing maximum commitment     $ 200
Payable under supplier financing arrangement $ 108 $ 50  
Additions under supplier financing arrangement 279    
Settlements under supplier financing arrangement $ 221    
Maximum      
Supplier Finance Program [Line Items]      
Payment terms period under supplier financing arrangement 190 days    
v3.25.4
Accounts Payable and Liabilities - Other current liabilities of Manufacturing group (Details) - Manufacturing group - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Other Liabilities [Line Items]    
Contract liabilities $ 1,897 $ 1,734
Salaries, wages and employer taxes 442 456
Current portion of warranty and product repair and maintenance program liabilities 138 177
Other 686 727
Total $ 3,163 $ 3,094
v3.25.4
Accounts Payable and Liabilities - Changes in warranty liability (Details) - Manufacturing group - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Changes in warranty liability      
Balance at beginning of year $ 173 $ 172 $ 149
Provision 82 79 76
Changes to estimates 35 (2) 13
Settlements (89) (72) (69)
Adjustments (18) (4) 3
Balance at end of year $ 183 $ 173 $ 172
v3.25.4
Leases - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Leases [Abstract]      
Remaining lease term 25 years    
Option to extend the lease true    
Option to extend the lease, term 20 years    
Operating lease cost $ 73 $ 74 $ 69
Operating lease assets and liabilities recognized for new or extended leases 82 49 $ 54
Non-cash transaction, recognition of asset and liability   $ 72  
2026 74    
2027 65    
2028 60    
2029 55    
2030 48    
Thereafter $ 213    
v3.25.4
Leases - Balance Sheet and Other Information (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Operating Leases:    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets
Other assets $ 390 $ 360
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Other current liabilities $ 58 $ 55
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Other liabilities $ 346 $ 316
Weighted-average remaining lease term (in years) 9 years 6 months 10 years
Weighted-average discount rate 4.97% 4.84%
Finance leases:    
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property, plant and equipment, net Property, plant and equipment, net
Property, plant and equipment, less accumulated amortization of $8 million and $8 million, respectively $ 95 $ 95
Finance leases, accumulated amortization $ 14 $ 9
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] Long-term debt Long-term debt
Long-term debt, including current portion $ 100 $ 97
Weighted-average remaining lease term (in years) 5 years 10 months 24 days 5 years 10 months 24 days
Weighted-average discount rate 6.63% 6.72%
v3.25.4
Debt and Credit Facilities - Summary of Debt (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Manufacturing group    
Debt Instrument [Line Items]    
Total debt $ 3,539 $ 3,247
Less: Current portion of long-term debt (5) (357)
Total Long-term debt $ 3,534 2,890
Manufacturing group | 3.875% due 2025    
Debt Instrument [Line Items]    
Interest rate 3.875%  
Manufacturing group | 4.00% due 2026*    
Debt Instrument [Line Items]    
Interest rate 4.00%  
Manufacturing group | 3.65% due 2027    
Debt Instrument [Line Items]    
Interest rate 3.65%  
Manufacturing group | 3.375% due 2028    
Debt Instrument [Line Items]    
Interest rate 3.375%  
Manufacturing group | 3.90% due 2029    
Debt Instrument [Line Items]    
Interest rate 3.90%  
Manufacturing group | 3.00% due 2030    
Debt Instrument [Line Items]    
Interest rate 3.00%  
Manufacturing group | 2.45% due 2031    
Debt Instrument [Line Items]    
Interest rate 2.45%  
Manufacturing group | 6.10% due 2033    
Debt Instrument [Line Items]    
Interest rate 6.10%  
Manufacturing group | Other (weighted-average rate of 6.08% and 5.87%, respectively)    
Debt Instrument [Line Items]    
Total debt $ 89 $ 97
Weighted-average interest rate 6.08% 5.87%
Manufacturing group | Medium-Term Note | 3.875% due 2025    
Debt Instrument [Line Items]    
Total debt $ 0 $ 350
Manufacturing group | Medium-Term Note | 4.00% due 2026*    
Debt Instrument [Line Items]    
Total debt 0 350
Manufacturing group | Medium-Term Note | 3.65% due 2027    
Debt Instrument [Line Items]    
Total debt 350 350
Manufacturing group | Medium-Term Note | 3.375% due 2028    
Debt Instrument [Line Items]    
Total debt 300 300
Manufacturing group | Medium-Term Note | 3.90% due 2029    
Debt Instrument [Line Items]    
Total debt 300 300
Manufacturing group | Medium-Term Note | 3.00% due 2030    
Debt Instrument [Line Items]    
Total debt 650 650
Manufacturing group | Medium-Term Note | 2.45% due 2031    
Debt Instrument [Line Items]    
Total debt 500 500
Manufacturing group | Medium-Term Note | 6.10% due 2033    
Debt Instrument [Line Items]    
Total debt 350 350
Manufacturing group | Medium-Term Note | 5.50% due 2035    
Debt Instrument [Line Items]    
Total debt $ 500 0
Interest rate 5.50%  
Manufacturing group | Medium-Term Note | 4.95% due 2036    
Debt Instrument [Line Items]    
Total debt $ 500 0
Interest rate 4.95%  
Finance group    
Debt Instrument [Line Items]    
Total debt $ 339 341
Finance group | Variable-rate note due 2028 (weighted-average rate of 5.04% and 5.70%, respectively)    
Debt Instrument [Line Items]    
Total debt $ 25 $ 25
Weighted-average interest rate 5.04% 5.70%
Finance group | Fixed-rate note due 2027 (4.40%)    
Debt Instrument [Line Items]    
Total debt $ 50 $ 50
Interest rate 4.40% 4.40%
Finance group | Floating Rate Junior Subordinated Notes due 2067 (5.85% and 6.52%, respectively)    
Debt Instrument [Line Items]    
Total debt $ 264 $ 264
Weighted-average interest rate 5.85% 6.52%
Finance group | Other    
Debt Instrument [Line Items]    
Total debt $ 0 $ 2
v3.25.4
Debt and Credit Facilities - Future Required Principal Payments on Debt (Details)
$ in Millions
Jan. 03, 2026
USD ($)
Required payments during the next five years on debt outstanding  
2026 $ 5
2027 405
2028 400
2029 301
2030 651
Manufacturing group  
Required payments during the next five years on debt outstanding  
2026 5
2027 355
2028 375
2029 301
2030 651
Finance group  
Required payments during the next five years on debt outstanding  
2026 0
2027 50
2028 25
2029 0
2030 $ 0
v3.25.4
Debt and Credit Facilities - Narrative (Details)
 12 Months Ended
Oct. 16, 2025
USD ($)
extension_option
Jan. 03, 2026
USD ($)
Dec. 28, 2024
USD ($)
Dec. 30, 2023
USD ($)
Debt Instrument [Line Items]        
Minimum fixed charge coverage required to be maintained by subsidiary   125.00%    
Minimum shareholders equity required to be maintained by subsidiary   $ 125,000,000    
Cash paid to TFC to maintain compliance with covenants   0 $ 0 $ 0
Floating Rate Junior Subordinated Notes | Finance group | Floating Rate Junior Subordinated Notes        
Debt Instrument [Line Items]        
Debt instrument, face amount   $ 264,000,000    
Debt instrument, maturity date   Feb. 15, 2067    
Debt Instrument call date latest   Feb. 15, 2042    
Debt instrument description of variable rate basis after specified term at fixed rate   three-month CME Term Secured Overnight Financing Rate    
Interest rate spread   1.99661%    
Senior Unsecured Revolving Credit Facility Expires October 2030 | Line of Credit        
Debt Instrument [Line Items]        
Maximum borrowing capacity $ 1,000,000,000.0      
Portion available for issuance of letters of credit against facility 100,000,000      
Borrowing capacity Textron may elect to increase to $ 1,300,000,000      
Number of one-year extensions | extension_option 2      
Extension period (in years) 1 year      
Amount borrowed against facility   $ 0    
Senior Unsecured Revolving Credit Facility Expires October 2027 | Line of Credit        
Debt Instrument [Line Items]        
Term of facility 5 years      
Amount borrowed against facility     0  
Letter of Credit | Line of Credit        
Debt Instrument [Line Items]        
Outstanding letters of credit   $ 0 $ 9,000,000  
v3.25.4
Derivative Instruments and Fair Value Measurements - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Manufacturing group    
Derivatives, Fair Value [Line Items]    
Forward exchange contracts maximum maturity period 3 years  
Manufacturing group | Foreign currency exchange contracts | Cash flow hedge    
Derivatives, Fair Value [Line Items]    
Notional amounts $ 477 $ 464
Manufacturing group | Foreign currency exchange contracts | Cash flow hedge | Level 2    
Derivatives, Fair Value [Line Items]    
Derivative asset, fair value 6 5
Derivative liability, fair value 10 19
Finance group | Interest rate swap | Cash flow hedge    
Derivatives, Fair Value [Line Items]    
Derivative asset, fair value 1 8
Finance group | Interest Rate Swap, Maturing August 2026 To August 2030 | Cash flow hedge    
Derivatives, Fair Value [Line Items]    
Notional amounts $ 264 $ 264
Finance group | Interest Rate Swap, Maturing August 2026 To August 2030 | Cash flow hedge | Floating Rate Junior Subordinated Notes    
Derivatives, Fair Value [Line Items]    
Net impact of debt and derivative, weighted-average fixed interest rate 5.16% 5.20%
Finance group | Interest Rate Swap, Maturing in June 2025 | Cash flow hedge    
Derivatives, Fair Value [Line Items]    
Notional amounts   $ 25
Finance group | Interest Rate Swap, Maturing in June 2025 | Cash flow hedge | Floating Rate Junior Subordinated Notes    
Derivatives, Fair Value [Line Items]    
Net impact of debt and derivative, weighted-average fixed interest rate   4.13%
v3.25.4
Derivative Instruments and Fair Value Measurements - Assets and Liabilities Not Recorded at Fair Value (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Manufacturing group | Carrying Value    
Financial instruments not reflected at fair value    
Debt $ (3,459) $ (3,164)
Manufacturing group | Estimated Fair Value    
Financial instruments not reflected at fair value    
Debt (3,406) (2,989)
Finance group | Carrying Value    
Financial instruments not reflected at fair value    
Debt (339) (341)
Finance receivables, excluding leases 493 439
Finance group | Estimated Fair Value    
Financial instruments not reflected at fair value    
Debt (312) (311)
Finance receivables, excluding leases $ 528 $ 454
v3.25.4
Shareholders' Equity - Capital Stock (Details) - $ / shares
shares in Thousands
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Equity [Abstract]      
Preferred stock shares authorized (in shares) 15,000    
Preferred stock par value (in dollars per share) $ 0.01    
Common stock (in shares) 500,000    
Common stock par value (in dollars per share) $ 0.125    
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Balance at beginning of year (in shares) 182,964 192,898 206,161
Share repurchases (in shares) (10,650) (12,890) (16,169)
Share-based compensation activity (in shares) 1,996 2,956 2,906
Balance at end of year (in shares) 174,310 182,964 192,898
v3.25.4
Shareholders' Equity - Earnings Per Share (Details) - shares
shares in Thousands
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Equity [Abstract]      
Basic weighted-average shares outstanding (in shares) 178,895 188,318 199,719
Dilutive effect of stock options (in shares) 1,363 1,989 2,055
Diluted weighted-average shares outstanding (in shares) 180,258 190,307 201,774
Anti-dilutive effect of weighted average shares (in shares) 2,000 900 1,500
v3.25.4
Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Components of Accumulated Other Comprehensive Income (Loss)    
Beginning Balance $ 7,204 $ 6,987
Ending Balance 7,875 7,204
Accumulated Other Comprehensive Income (Loss)    
Components of Accumulated Other Comprehensive Income (Loss)    
Beginning Balance (304) (644)
Other comprehensive income (loss) before reclassifications 431 335
Reclassified from Accumulated other comprehensive loss 2 5
Ending Balance 129 (304)
Pension and Postretirement Benefits Adjustments    
Components of Accumulated Other Comprehensive Income (Loss)    
Beginning Balance (179) (598)
Other comprehensive income (loss) before reclassifications 299 418
Reclassified from Accumulated other comprehensive loss (1) 1
Ending Balance 119 (179)
Foreign Currency Translation Adjustments    
Components of Accumulated Other Comprehensive Income (Loss)    
Beginning Balance (120) (49)
Other comprehensive income (loss) before reclassifications 134 (74)
Reclassified from Accumulated other comprehensive loss (2) 3
Ending Balance 12 (120)
Deferred Gains (Losses) on Hedge Contracts    
Components of Accumulated Other Comprehensive Income (Loss)    
Beginning Balance (5) 3
Other comprehensive income (loss) before reclassifications (2) (9)
Reclassified from Accumulated other comprehensive loss 5 1
Ending Balance $ (2) $ (5)
v3.25.4
Shareholders' Equity - Before and After Tax Components of Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Pension and postretirement benefits adjustments, pre-tax:      
Unrealized gains (losses), pre-tax $ 430 $ 568 $ (102)
Amortization of net actuarial (gain) loss, pre-tax (9) (5) (7)
Amortization of prior service cost, pre-tax 9 8 8
Recognition of prior service credit cost, pre-tax (29) (19) (7)
Pension and postretirement benefits adjustments, net, pre-tax 401 552 (108)
Pension and postretirement benefits adjustments, tax:      
Unrealized gains (losses), tax (expense) benefit (108) (136) 25
Amortization of net actuarial (gain) loss, tax (expense) benefit 2 1 2
Amortization of prior service cost, tax (expense) benefit (3) (3) (3)
Recognition of prior service credit, tax (expense) benefit 6 5 2
Pension and postretirement benefits adjustments, net, tax (expense) benefit (103) (133) 26
Pension and postretirement benefits adjustments, after-tax:      
Unrealized gains (losses), after-tax 322 432 (77)
Amortization of net actuarial (gain) loss, after-tax (7) (4) (5)
Amortization of prior service cost, after-tax 6 5 5
Recognition of prior service credit, after-tax (23) (14) (5)
Pension and postretirement benefits adjustments, net, after-tax 298 419 (82)
Foreign currency translation adjustments, pre-tax:      
Foreign currency translation adjustments, pre-tax 134 (74) 45
Business disposition, pre-tax (2) 0 0
Other, pre-tax 0 3 0
Foreign currency translation adjustments, net, pre-tax 132 (71) 45
Foreign currency translation adjustments, tax:      
Foreign currency translation adjustments, tax (expense) benefit 0 0 0
Business disposition, tax (expense) benefit 0 0 0
Other, tax (expense) benefit 0 0 0
Foreign currency translation adjustments, net, tax (expense) benefit 0 0 0
Foreign currency translation adjustments, after-tax:      
Foreign currency translation adjustments, after-tax 134 (74) 45
Business disposition, after-tax (2) 0 0
Other, after-tax 0 3 0
Foreign currency translation adjustments, net of reclassifications 132 (71) 45
Deferred gains (losses) on hedge contracts, pre-tax:      
Current deferrals, pre-tax (2) (11) (2)
Reclassification adjustments, pre-tax 6 2 8
Deferred gains (losses) on hedge contracts, net, pre-tax 4 (9) 6
Deferred gains (losses) on hedge contracts, tax:      
Current deferrals, tax (expense) benefit 0 2 1
Reclassification adjustments, tax (expense) benefit (1) (1) (2)
Deferred gains (losses) on hedge contracts, net, tax (expense) benefit (1) 1 (1)
Deferred gains (losses) on hedge contracts, after-tax:      
Current deferrals, after-tax (2) (9) (1)
Reclassification adjustments, after-tax 5 1 6
Deferred gains (losses) on hedge contracts, net, after-tax 3 (8) 5
Other comprehensive income (loss), pre-tax 537 472 (57)
Other comprehensive income (loss), tax (expense) benefit (104) (132) 25
Total other comprehensive income (loss), net of tax $ 433 $ 340 $ (32)
v3.25.4
Segment Financial Information - Narrative (Details) - segment
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Operating and reportable business segments    
Number of operating segments 6  
Number of reportable segments 6  
Property, Plant and Equipment | Geographic Concentration Risk | United States    
Revenue, Major Customer [Line Items]    
Concentration risk percentage 85.00% 86.00%
v3.25.4
Segment Financial Information - Revenue and Disbursement of Costs and Expenses by Segments (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues $ 14,799 $ 13,702 $ 13,683
Costs, expenses and other      
Research and development costs 521 491 570
Selling and administrative expense 1,173 1,156 1,225
Interest expense, net 126 97 77
Operating Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 14,799 13,702 13,683
Costs, expenses and other      
Total cost of sales 11,873 10,952 10,689
Research and development costs 521 491 570
Selling and administrative expense 1,024 1,040 1,082
Interest expense, net 18 19 15
Segment profit (loss) 1,363 1,200 1,327
Textron Aviation      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 5,955 5,284 5,373
Textron Aviation | Operating Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 5,955 5,284 5,373
Costs, expenses and other      
Total cost of sales 4,637 4,102 4,116
Research and development costs 214 208 199
Selling and administrative expense 410 408 409
Interest expense, net 0 0 0
Segment profit (loss) 694 566 649
Bell      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 4,282 3,579 3,147
Bell | Operating Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 4,282 3,579 3,147
Costs, expenses and other      
Total cost of sales 3,537 2,899 2,392
Research and development costs 153 97 192
Selling and administrative expense 229 213 243
Interest expense, net 0 0 0
Segment profit (loss) 363 370 320
Textron Systems      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 1,247 1,241 1,235
Textron Systems | Operating Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 1,247 1,241 1,235
Costs, expenses and other      
Total cost of sales 939 929 925
Research and development costs 45 51 53
Selling and administrative expense 88 107 110
Interest expense, net 0 0 0
Segment profit (loss) 175 154 147
Industrial      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 3,213 3,515 3,841
Industrial | Operating Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 3,213 3,515 3,841
Costs, expenses and other      
Total cost of sales 2,733 2,993 3,221
Research and development costs 67 72 80
Selling and administrative expense 268 299 312
Interest expense, net 0 0 0
Segment profit (loss) 145 151 228
Textron eAviation      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 27 33 32
Textron eAviation | Operating Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 27 33 32
Costs, expenses and other      
Total cost of sales 27 29 35
Research and development costs 42 63 46
Selling and administrative expense 21 17 14
Interest expense, net 0 0 0
Segment profit (loss) (63) (76) (63)
Finance      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 75 50 55
Finance | Operating Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 75 50 55
Costs, expenses and other      
Total cost of sales 0 0 0
Research and development costs 0 0 0
Selling and administrative expense 8 (4) (6)
Interest expense, net 18 19 15
Segment profit (loss) $ 49 $ 35 $ 46
v3.25.4
Segment Financial Information - Reconciliation of Segment Profit to Income Before Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Reconciliation of segment profit to income from continuing operations before income taxes      
Interest expense, net for Manufacturing group $ (126) $ (97) $ (77)
Intangible asset amortization (32) (34) (39)
Special charges (4) (78) (126)
Non-service components of pension and postretirement income, net 266 263 237
Income from continuing operations before income taxes 1,137 943 1,087
Operating Segment      
Reconciliation of segment profit to income from continuing operations before income taxes      
Segment profit 1,363 1,200 1,327
Interest expense, net for Manufacturing group (18) (19) (15)
Reconciling Items      
Reconciliation of segment profit to income from continuing operations before income taxes      
Corporate expenses and other, net (149) (116) (143)
LIFO inventory provision (199) (176) (107)
Intangible asset amortization (32) (34) (39)
Special charges (4) (78) (126)
Inventory charge 0 (38) 0
Non-service components of pension and postretirement income, net 266 263 237
Manufacturing group | Reconciling Items      
Reconciliation of segment profit to income from continuing operations before income taxes      
Interest expense, net for Manufacturing group $ (108) $ (78) $ (62)
v3.25.4
Segment Financial Information - Assets, Capital Expenditures and Depreciation and Amortization by Segment (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Other Information by Segment      
Assets $ 18,129 $ 16,838  
Capital Expenditures 383 364 $ 402
Depreciation and Amortization 401 382 395
Manufacturing group      
Other Information by Segment      
Assets 17,452 16,158  
Depreciation and Amortization 401 382 395
Corporate      
Other Information by Segment      
Assets 4,688 3,842  
Capital Expenditures 1 0 2
Depreciation and Amortization 7 7 9
Textron Aviation | Operating Segment | Manufacturing group      
Other Information by Segment      
Assets 4,907 4,624  
Capital Expenditures 140 136 138
Depreciation and Amortization 167 164 160
Bell | Operating Segment | Manufacturing group      
Other Information by Segment      
Assets 3,132 2,992  
Capital Expenditures 132 122 119
Depreciation and Amortization 103 86 89
Textron Systems | Operating Segment | Manufacturing group      
Other Information by Segment      
Assets 2,107 2,036  
Capital Expenditures 41 40 48
Depreciation and Amortization 48 48 41
Industrial | Operating Segment | Manufacturing group      
Other Information by Segment      
Assets 2,305 2,378  
Capital Expenditures 68 62 91
Depreciation and Amortization 68 70 89
Textron eAviation | Operating Segment | Manufacturing group      
Other Information by Segment      
Assets 313 286  
Capital Expenditures 1 4 4
Depreciation and Amortization 8 7 7
Finance | Operating Segment      
Other Information by Segment      
Assets 677 680  
Capital Expenditures 0 0 0
Depreciation and Amortization $ 0 $ 0 $ 0
v3.25.4
Revenues - Disaggregation of Revenues (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Disaggregation of Revenue [Line Items]      
Revenues $ 14,799 $ 13,702 $ 13,683
United States      
Disaggregation of Revenue [Line Items]      
Revenues 10,283 9,676 9,305
Europe      
Disaggregation of Revenue [Line Items]      
Revenues 1,289 1,210 1,414
South and Latin America      
Disaggregation of Revenue [Line Items]      
Revenues 1,280 874 842
Other international      
Disaggregation of Revenue [Line Items]      
Revenues 1,947 1,942 2,122
Commercial      
Disaggregation of Revenue [Line Items]      
Revenues 10,806 10,332 10,750
U. S. Government      
Disaggregation of Revenue [Line Items]      
Revenues 3,993 3,370 2,933
Textron Aviation      
Disaggregation of Revenue [Line Items]      
Revenues 5,955 5,284 5,373
Textron Aviation | United States      
Disaggregation of Revenue [Line Items]      
Revenues 4,281 4,019 3,873
Textron Aviation | Europe      
Disaggregation of Revenue [Line Items]      
Revenues 467 371 432
Textron Aviation | South and Latin America      
Disaggregation of Revenue [Line Items]      
Revenues 628 336 284
Textron Aviation | Other international      
Disaggregation of Revenue [Line Items]      
Revenues 579 558 784
Textron Aviation | Commercial      
Disaggregation of Revenue [Line Items]      
Revenues 5,579 4,985 5,155
Textron Aviation | U. S. Government      
Disaggregation of Revenue [Line Items]      
Revenues 376 299 218
Textron Aviation | Aircraft      
Disaggregation of Revenue [Line Items]      
Revenues 3,922 3,374 3,577
Textron Aviation | Aftermarket parts and services      
Disaggregation of Revenue [Line Items]      
Revenues 2,033 1,910 1,796
Bell      
Disaggregation of Revenue [Line Items]      
Revenues 4,282 3,579 3,147
Bell | United States      
Disaggregation of Revenue [Line Items]      
Revenues 3,156 2,644 2,228
Bell | Europe      
Disaggregation of Revenue [Line Items]      
Revenues 122 85 149
Bell | South and Latin America      
Disaggregation of Revenue [Line Items]      
Revenues 281 201 224
Bell | Other international      
Disaggregation of Revenue [Line Items]      
Revenues 723 649 546
Bell | Commercial      
Disaggregation of Revenue [Line Items]      
Revenues 1,634 1,490 1,407
Bell | U. S. Government      
Disaggregation of Revenue [Line Items]      
Revenues 2,648 2,089 1,740
Bell | Military aircraft and support programs      
Disaggregation of Revenue [Line Items]      
Revenues 2,618 2,048 1,701
Bell | Commercial helicopters, parts and services      
Disaggregation of Revenue [Line Items]      
Revenues 1,664 1,531 1,446
Textron Systems      
Disaggregation of Revenue [Line Items]      
Revenues 1,247 1,241 1,235
Textron Systems | United States      
Disaggregation of Revenue [Line Items]      
Revenues 1,129 1,112 1,103
Textron Systems | Europe      
Disaggregation of Revenue [Line Items]      
Revenues 43 45 54
Textron Systems | South and Latin America      
Disaggregation of Revenue [Line Items]      
Revenues 7 12 12
Textron Systems | Other international      
Disaggregation of Revenue [Line Items]      
Revenues 68 72 66
Textron Systems | Commercial      
Disaggregation of Revenue [Line Items]      
Revenues 306 292 282
Textron Systems | U. S. Government      
Disaggregation of Revenue [Line Items]      
Revenues 941 949 953
Industrial      
Disaggregation of Revenue [Line Items]      
Revenues 3,213 3,515 3,841
Industrial | United States      
Disaggregation of Revenue [Line Items]      
Revenues 1,668 1,865 2,067
Industrial | Europe      
Disaggregation of Revenue [Line Items]      
Revenues 649 693 766
Industrial | South and Latin America      
Disaggregation of Revenue [Line Items]      
Revenues 336 306 300
Industrial | Other international      
Disaggregation of Revenue [Line Items]      
Revenues 560 651 708
Industrial | Commercial      
Disaggregation of Revenue [Line Items]      
Revenues 3,185 3,482 3,819
Industrial | U. S. Government      
Disaggregation of Revenue [Line Items]      
Revenues 28 33 22
Industrial | Fuel systems and functional components      
Disaggregation of Revenue [Line Items]      
Revenues 1,883 1,891 1,954
Industrial | Specialized vehicles      
Disaggregation of Revenue [Line Items]      
Revenues 1,330 1,624 1,887
Textron eAviation      
Disaggregation of Revenue [Line Items]      
Revenues 27 33 32
Textron eAviation | United States      
Disaggregation of Revenue [Line Items]      
Revenues 14 19 17
Textron eAviation | Europe      
Disaggregation of Revenue [Line Items]      
Revenues 7 11 11
Textron eAviation | South and Latin America      
Disaggregation of Revenue [Line Items]      
Revenues 2 0 1
Textron eAviation | Other international      
Disaggregation of Revenue [Line Items]      
Revenues 4 3 3
Textron eAviation | Commercial      
Disaggregation of Revenue [Line Items]      
Revenues 27 33 32
Textron eAviation | U. S. Government      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 0
Finance      
Disaggregation of Revenue [Line Items]      
Revenues 75 50 55
Finance | United States      
Disaggregation of Revenue [Line Items]      
Revenues 35 17 17
Finance | Europe      
Disaggregation of Revenue [Line Items]      
Revenues 1 5 2
Finance | South and Latin America      
Disaggregation of Revenue [Line Items]      
Revenues 26 19 21
Finance | Other international      
Disaggregation of Revenue [Line Items]      
Revenues 13 9 15
Finance | Commercial      
Disaggregation of Revenue [Line Items]      
Revenues 75 50 55
Finance | U. S. Government      
Disaggregation of Revenue [Line Items]      
Revenues $ 0 $ 0 $ 0
v3.25.4
Revenues - Remaining Performance Obligations (Details)
$ in Billions
Jan. 03, 2026
USD ($)
Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligation $ 18.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-04  
Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligation percent 80.00%
Remaining performance obligation, expected timing of satisfaction, period 24 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-02  
Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligation percent 15.00%
Remaining performance obligation, expected timing of satisfaction, period 24 months
v3.25.4
Revenues - Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Contract Assets and Liabilities      
Contract assets $ 451 $ 345  
Contract liabilities 2,100 1,900  
Revenue recognized included in contract liabilities $ 1,200 $ 1,100 $ 953
v3.25.4
Share-Based Compensation - General Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Share-Based Compensation    
Compensation costs associated with unvested awards not recognized $ 27  
Recognize compensation expense for unvested awards subject only to service conditions over a weighted average period 2 years  
Stock appreciation rights    
Share-Based Compensation    
Awards outstanding (in shares) 386,329  
Weighted-average exercise price (in dollars per share) $ 68.05  
Weighted-average remaining contractual life 6 years 2 months 12 days  
Intrinsic value $ 7 $ 6
2024 Long Term Incentive Plan    
Share-Based Compensation    
Maximum shares awarded for issuance 10,000,000  
2024 Long Term Incentive Plan | Restricted stock, restricted stock units, performance stock, performance share units and other awards    
Share-Based Compensation    
Maximum shares awarded for issuance 3,127,000  
v3.25.4
Share-Based Compensation - Compensation Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Share-Based Payment Arrangement [Abstract]      
Compensation expense $ 81 $ 66 $ 94
Income tax benefit (20) (16) (23)
Total compensation expense included in net income $ 61 $ 50 $ 71
v3.25.4
Share-Based Compensation - Stock Options (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Share-Based Compensation      
Compensation expense $ 81 $ 66 $ 94
Stock options      
Share-Based Compensation      
Compensation expense $ 24 $ 25 $ 23
Maximum term of options 10 years    
Vesting period 3 years    
Weighted-average assumptions used in Black-Scholes option-pricing model      
Fair value of options at grant date (in dollars per share) $ 22.01 $ 27.69 $ 23.83
Dividend yield 0.10% 0.10% 0.10%
Expected volatility 25.10% 27.20% 29.40%
Risk-free interest rate 4.10% 4.30% 4.20%
Expected term (in years) 4 years 9 months 18 days 4 years 9 months 18 days 4 years 9 months 18 days
Number of Options      
Outstanding at beginning of period (in shares) 6,649    
Granted (in shares) 1,022    
Exercised (in shares) (809)    
Forfeited or expired (in shares) (70)    
Outstanding at end of period (in shares) 6,792 6,649  
Exercisable at end of period (in shares) 4,791    
Weighted-Average Exercise Price      
Outstanding at beginning of period (in dollars per share) $ 61.70    
Granted (in dollars per share) 74.73    
Exercised (in dollars per share) (52.23)    
Forfeited or expired (in dollars per share) (79.25)    
Outstanding at end of period (in dollars per share) 64.61 $ 61.70  
Exercisable at end of period (in dollars per share) $ 58.58    
Additional general disclosures      
Aggregate intrinsic value of outstanding options $ 154    
Weighted-average remaining contractual life of outstanding options 5 years 4 months 24 days    
Aggregate intrinsic value of exercisable options $ 137    
Weighted-average remaining contractual life of exercisable options 4 years 2 months 12 days    
Total intrinsic value of options exercised $ 24 $ 78 $ 50
v3.25.4
Share-Based Compensation - Restricted Stock Units (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Units Payable in Stock      
Number of Shares/Units      
Outstanding at beginning of period, nonvested (in shares) 331    
Granted (in shares) 129    
Vested (in shares) (101)    
Forfeited (in shares) 0    
Outstanding at end of period, nonvested (in shares) 359 331  
Weighted- Average Grant Date Fair Value      
Outstanding at beginning of period, nonvested (in dollars per share) $ 75.50    
Granted (in dollars per share) 73.07    
Vested (in dollars per share) (70.65)    
Forfeited (in dollars per share) 0    
Outstanding at end of period, nonvested (in dollars per share) $ 75.99 $ 75.50  
Units Payable in Cash      
Number of Shares/Units      
Outstanding at beginning of period, nonvested (in shares) 631    
Granted (in shares) 259    
Vested (in shares) (195)    
Forfeited (in shares) (22)    
Outstanding at end of period, nonvested (in shares) 673 631  
Weighted- Average Grant Date Fair Value      
Outstanding at beginning of period, nonvested (in dollars per share) $ 77.75    
Granted (in dollars per share) 74.72    
Vested (in dollars per share) (71.14)    
Forfeited (in dollars per share) (78.39)    
Outstanding at end of period, nonvested (in dollars per share) $ 78.48 $ 77.75  
Restricted Stock Units      
Fair value      
Fair value of awards vested $ 22 $ 42 $ 45
Cash paid $ 15 $ 33 $ 34
v3.25.4
Share-Based Compensation - Performance Share Units (Details) - Performance Share Units - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Share-Based Compensation      
Performance share units performance period 3 years    
Number of Units      
Outstanding at beginning of period, nonvested (in shares) 394    
Granted (in shares) 202    
Vested (in shares) (200)    
Outstanding at end of period, nonvested (in shares) 396 394  
Weighted- Average Grant Date Fair Value      
Outstanding at beginning of period, nonvested (in dollars per share) $ 80.81    
Granted (in dollars per share) 74.73    
Vested (in dollars per share) (73.19)    
Outstanding at end of period, nonvested (in dollars per share) $ 81.57 $ 80.81  
Fair value      
Fair value of awards vested $ 18 $ 13 $ 19
Cash paid $ 16 $ 35 $ 27
v3.25.4
Retirement Plans - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Retirement Plans      
Cost recognized for defined contribution plans $ 178 $ 164 $ 154
Additional percentage of eligible compensation contributed annually by employer to defined contribution plan for employees hired after January 1, 2010 4.00%    
Accumulated benefit obligation $ 6,600 $ 6,500  
Trend rate for medical and prescription drug cost 6.50% 6.50%  
Rate to which medical and prescription drug cost trend rates will gradually decline 4.75%    
Year that the rates reach the rate where we assume they will remain 2032    
Unfunded      
Retirement Plans      
Accumulated benefit obligation $ 320 $ 316  
v3.25.4
Retirement Plans - Net Periodic Benefit Cost (Income) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Other changes in plan assets and benefit obligations recognized in OCI      
Current year actuarial loss (gain) $ (430) $ (568) $ 102
Amortization of net actuarial gain (loss) 9 5 7
Amortization of prior service credit (cost) (9) (8) (8)
Cost associated with defined the defined contribution component 178 164 154
Pension Benefits      
Net periodic benefit income      
Service cost 63 69 67
Interest cost 376 362 364
Expected return on plan assets (648) (635) (610)
Amortization of prior service cost (credit) 10 9 11
Amortization of net actuarial loss (gain) (1) 3 1
Net periodic benefit cost (income) (200) (192) (167)
Other changes in plan assets and benefit obligations recognized in OCI      
Current year actuarial loss (gain) (427) (561) 109
Current year prior service cost 29 19 7
Amortization of net actuarial gain (loss) 1 (3) (1)
Amortization of prior service credit (cost) (10) (9) (11)
Total recognized in OCI, before taxes (407) (554) 104
Total recognized in net periodic benefit income and OCI (607) (746) (63)
Pension Benefits | United States      
Other changes in plan assets and benefit obligations recognized in OCI      
Cost associated with defined the defined contribution component 10 10 11
Postretirement Benefits Other than Pensions      
Net periodic benefit income      
Service cost 1 1 2
Interest cost 6 7 8
Expected return on plan assets 0 0 0
Amortization of prior service cost (credit) (1) (1) (3)
Amortization of net actuarial loss (gain) (8) (8) (8)
Net periodic benefit cost (income) (2) (1) (1)
Other changes in plan assets and benefit obligations recognized in OCI      
Current year actuarial loss (gain) (3) (7) (7)
Current year prior service cost 0 0 0
Amortization of net actuarial gain (loss) 8 8 8
Amortization of prior service credit (cost) 1 1 3
Total recognized in OCI, before taxes 6 2 4
Total recognized in net periodic benefit income and OCI $ 4 $ 1 $ 3
v3.25.4
Retirement Plans - Obligations and Funded Status (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Pension Benefits      
Change in projected benefit obligation      
Projected benefit obligation at beginning of year $ 6,788 $ 7,205  
Service cost 63 69 $ 67
Interest cost 376 362 364
Plan participants’ contributions 0 0  
Actuarial losses (gains) 75 (392)  
Benefits paid (458) (454)  
Plan amendment 29 19  
Foreign exchange rate changes and other 45 (21)  
Projected benefit obligation at end of year 6,918 6,788 7,205
Change in fair value of plan assets      
Balance at beginning of year 8,772 8,413  
Actual return on plan assets 1,145 806  
Employer contributions 31 34  
Benefits paid (458) (454)  
Foreign exchange rate changes and other 69 (27)  
Balance at end of year 9,559 8,772 8,413
Funded status at end of year 2,641 1,984  
Postretirement Benefits Other than Pensions      
Change in projected benefit obligation      
Projected benefit obligation at beginning of year 121 136  
Service cost 1 1 2
Interest cost 6 7 8
Plan participants’ contributions 2 3  
Actuarial losses (gains) 2 (7)  
Benefits paid (21) (19)  
Plan amendment 0 0  
Foreign exchange rate changes and other 0 0  
Projected benefit obligation at end of year 111 121 $ 136
Change in fair value of plan assets      
Funded status at end of year $ (111) $ (121)  
v3.25.4
Retirement Plans - Amounts Recognized in the Balance Sheets (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Pension Benefits    
Amounts recognized in our balance sheets    
Non-current assets $ 2,973 $ 2,311
Current liabilities (29) (29)
Non-current liabilities (303) (298)
Recognized in Accumulated other comprehensive income (loss), pre-tax:    
Net loss (gain) (261) 167
Prior service cost (credit) 71 52
Postretirement Benefits Other than Pensions    
Amounts recognized in our balance sheets    
Non-current assets 0 0
Current liabilities (14) (15)
Non-current liabilities (97) (106)
Recognized in Accumulated other comprehensive income (loss), pre-tax:    
Net loss (gain) (63) (69)
Prior service cost (credit) $ 0 $ (1)
v3.25.4
Retirement Plans - Plans with Accumulated/Projected Benefit Obligations Exceeding Fair Value of Plan Assets (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Pension plans with accumulated benefit obligations exceeding the fair value of plan assets    
Accumulated benefit obligation $ 320 $ 316
Fair value of plan assets 0 0
Pension plans with projected benefit obligation exceeding the fair value of plan assets    
Projected benefit obligation 332 327
Fair value of plan assets $ 0 $ 0
v3.25.4
Retirement Plans - Weighted-average Assumptions (Details)
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Pension Benefits      
Net periodic benefit cost      
Discount rate 5.73% 5.19% 5.51%
Expected long-term rate of return on assets 7.16% 7.16% 7.14%
Rate of compensation increase 3.97% 3.97% 3.97%
Benefit obligations at year-end      
Discount rate 5.60% 5.73% 5.19%
Rate of compensation increase 3.96% 3.97% 3.97%
Interest crediting rate for cash balance plans 0.0525 0.0525 0.0525
Postretirement Benefits Other than Pensions      
Net periodic benefit cost      
Discount rate 5.75% 5.40% 5.70%
Benefit obligations at year-end      
Discount rate 5.40% 5.75% 5.40%
v3.25.4
Retirement Plans - Target Allocation Ranges (Details) - Pension Benefits
Jan. 03, 2026
Minimum | Domestic equity securities | U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 17.00%
Minimum | International equity securities | U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 6.00%
Minimum | Global equities | U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 5.00%
Minimum | Debt securities | U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 27.00%
Minimum | Debt securities | Non-U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 25.00%
Minimum | Real estate | U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 7.00%
Minimum | Real estate | Non-U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 0.00%
Minimum | Private investment partnerships | U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 7.00%
Minimum | Equity securities | Non-U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 55.00%
Maximum | Domestic equity securities | U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 33.00%
Maximum | International equity securities | U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 17.00%
Maximum | Global equities | U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 17.00%
Maximum | Debt securities | U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 38.00%
Maximum | Debt securities | Non-U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 45.00%
Maximum | Real estate | U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 13.00%
Maximum | Real estate | Non-U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 13.00%
Maximum | Private investment partnerships | U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 13.00%
Maximum | Equity securities | Non-U.S. Plan Assets  
Target allocation ranges  
Target plan asset allocations 75.00%
v3.25.4
Retirement Plans - Fair Value of Pension Plan Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Change in fair value of plan assets      
Valuation of owned properties period 3 years    
Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets $ 9,559 $ 8,772 $ 8,413
Level 1 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 6,134 5,477  
Level 2 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 725 679  
Level 3 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 449 479  
Not Subject to Leveling | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 2,251 2,137  
Cash and equivalents | Level 1 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 254 159  
Cash and equivalents | Level 2 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 6 1  
Cash and equivalents | Level 3 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
Cash and equivalents | Not Subject to Leveling | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
Domestic equity securities | Level 1 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 2,969 3,151  
Domestic equity securities | Level 2 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
Domestic equity securities | Level 3 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
Domestic equity securities | Not Subject to Leveling | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 342 307  
International equity securities | Level 1 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 1,317 1,028  
International equity securities | Level 2 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
International equity securities | Level 3 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
International equity securities | Not Subject to Leveling | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 349 290  
Mutual funds | Level 1 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 184 194  
Mutual funds | Level 2 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
Mutual funds | Level 3 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
National, state and local governments | Level 1 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 1,327 899  
National, state and local governments | Level 2 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 112 60  
National, state and local governments | Level 3 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
National, state and local governments | Not Subject to Leveling | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 21 13  
Corporate debt | Level 1 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 83 46  
Corporate debt | Level 2 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 607 618  
Corporate debt | Level 3 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
Corporate debt | Not Subject to Leveling | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 154 148  
Private investment partnerships | Level 1 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
Private investment partnerships | Level 2 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
Private investment partnerships | Level 3 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
Private investment partnerships | Not Subject to Leveling | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 992 974  
Real estate | Level 1 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
Real estate | Level 2 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 0 0  
Real estate | Level 3      
Change in fair value of plan assets      
Fair value of total pension plan assets 449 479 $ 508
Real estate | Level 3 | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets 449 479  
Real estate | Not Subject to Leveling | Pension Benefits      
Change in fair value of plan assets      
Fair value of total pension plan assets $ 393 $ 405  
v3.25.4
Retirement Plans - Reconciliation of Fair Value Measurements of Level 3 Valuation (Details) - Real estate - Level 3 - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Reconciliation for fair value measurements that use significant unobservable inputs (Level 3)    
Balance at beginning of year $ 479 $ 508
Unrealized gains (losses), net 9 (25)
Realized gains (losses), net (19) 16
Purchases, sales and settlements, net (20) (20)
Balance at end of year $ 449 $ 479
v3.25.4
Retirement Plans - Estimated Future Cash Flow Impact (Details)
$ in Millions
Jan. 03, 2026
USD ($)
Retirement Plans  
Expected contributions to our non-qualified plans and foreign plans $ 50
Pension Benefits  
Estimated future benefit payments  
2026 466
2027 475
2028 484
2029 492
2030 497
2031-2035 2,536
Postretirement Benefits Other than Pensions  
Estimated future benefit payments  
2026 14
2027 14
2028 13
2029 12
2030 12
2031-2035 $ 44
v3.25.4
Special Charges - Special Charges by Segment (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended 15 Months Ended
Jun. 28, 2025
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Dec. 28, 2024
Special Charges [Line Items]          
Restructuring charges   $ 8 $ 81    
Special charges   4 78 $ 126  
Severance Costs          
Special Charges [Line Items]          
Restructuring charges   5 49    
Contract Termination and Other Costs          
Special Charges [Line Items]          
Restructuring charges   3 32    
Textron Systems | Restructuring Actions          
Special Charges [Line Items]          
Asset Impairments   0      
Other   0      
Special charges $ 8 8      
Textron Systems | Severance Costs | Restructuring Actions          
Special Charges [Line Items]          
Restructuring charges   5      
Textron Systems | Contract Termination and Other Costs | Restructuring Actions          
Special Charges [Line Items]          
Restructuring charges $ 3 3      
2023 Restructuring Plan          
Special Charges [Line Items]          
Asset Impairments   0 3 87  
Other   (4) 0 0  
Special charges   4 78 126 $ 204
2023 Restructuring Plan | Severance Costs          
Special Charges [Line Items]          
Restructuring charges   5 43 39  
2023 Restructuring Plan | Contract Termination and Other Costs          
Special Charges [Line Items]          
Restructuring charges   3 32 0 32
2023 Restructuring Plan | Industrial          
Special Charges [Line Items]          
Asset Impairments   0 3 87 $ 90
Other   (4) 0 0  
Special charges   (4) 72 108  
2023 Restructuring Plan | Industrial | Severance Costs          
Special Charges [Line Items]          
Restructuring charges   0 37 21  
2023 Restructuring Plan | Industrial | Contract Termination and Other Costs          
Special Charges [Line Items]          
Restructuring charges   $ 0 32 0  
2023 Restructuring Plan | Bell          
Special Charges [Line Items]          
Asset Impairments     0 0  
Other     0 0  
Special charges     1 13  
2023 Restructuring Plan | Bell | Severance Costs          
Special Charges [Line Items]          
Restructuring charges     1 13  
2023 Restructuring Plan | Bell | Contract Termination and Other Costs          
Special Charges [Line Items]          
Restructuring charges     0 0  
2023 Restructuring Plan | Textron Systems          
Special Charges [Line Items]          
Asset Impairments     0 0  
Other     0 0  
Special charges     5 5  
2023 Restructuring Plan | Textron Systems | Severance Costs          
Special Charges [Line Items]          
Restructuring charges     5 5  
2023 Restructuring Plan | Textron Systems | Contract Termination and Other Costs          
Special Charges [Line Items]          
Restructuring charges     $ 0 $ 0  
v3.25.4
Special Charges - Narrative (Details)
$ in Millions
 3 Months Ended 12 Months Ended 15 Months Ended 21 Months Ended
Jun. 28, 2025
USD ($)
position
Dec. 28, 2024
USD ($)
Jan. 03, 2026
USD ($)
Dec. 28, 2024
USD ($)
Dec. 30, 2023
USD ($)
Dec. 28, 2024
USD ($)
Jun. 28, 2025
position
Special Charges [Line Items]              
Special charges     $ 4 $ 78 $ 126    
Restructuring charges     8 81      
Net proceeds from business disposition     16 0 0    
Pre-tax gain on disposition     4 $ 0 0    
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]       Special charges      
Powersports Business              
Special Charges [Line Items]              
Net proceeds from business disposition $ 16            
Pre-tax gain on disposition 4            
Contract Termination and Other Costs              
Special Charges [Line Items]              
Restructuring charges     3 $ 32      
Textron Systems | Restructuring Actions              
Special Charges [Line Items]              
Special charges 8   8        
Severance costs $ 5            
Number of positions expected to be eliminated | position 85            
Percentage of workforce reduction 1.00%            
Fixed and intangible asset impairment charges     0        
Textron Systems | Contract Termination and Other Costs | Restructuring Actions              
Special Charges [Line Items]              
Restructuring charges $ 3   3        
2023 Restructuring Plan              
Special Charges [Line Items]              
Special charges     4 78 126 $ 204  
Severance costs           82  
Number of positions expected to be eliminated | position             1,800
Percentage of workforce reduction             5.00%
Fixed and intangible asset impairment charges     0 3 87    
Inventory valuation charge   $ 38          
2023 Restructuring Plan | Contract Termination and Other Costs              
Special Charges [Line Items]              
Restructuring charges     3 32 0 32  
2023 Restructuring Plan | Industrial              
Special Charges [Line Items]              
Special charges     (4) 72 108    
Severance costs           58  
Fixed and intangible asset impairment charges     0 3 87 90  
2023 Restructuring Plan | Industrial | Contract Termination and Other Costs              
Special Charges [Line Items]              
Restructuring charges     $ 0 32 0    
2023 Restructuring Plan | Bell              
Special Charges [Line Items]              
Special charges       1 13    
Severance costs           14  
Fixed and intangible asset impairment charges       0 0    
2023 Restructuring Plan | Bell | Contract Termination and Other Costs              
Special Charges [Line Items]              
Restructuring charges       0 0    
2023 Restructuring Plan | Textron Systems              
Special Charges [Line Items]              
Special charges       5 5    
Severance costs           $ 10  
Fixed and intangible asset impairment charges       0 0    
2023 Restructuring Plan | Textron Systems | Contract Termination and Other Costs              
Special Charges [Line Items]              
Restructuring charges       $ 0 0    
2023 Restructuring Plan | Specialized vehicles              
Special Charges [Line Items]              
Fixed and intangible asset impairment charges         75    
2023 Restructuring Plan | Kautex              
Special Charges [Line Items]              
Fixed asset impairment charges         $ 12    
v3.25.4
Special Charges - Restructuring Reserve (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Restructuring reserve activity    
Balance at beginning of period $ 71 $ 47
Provision for plan 8 81
Cash paid (41) (49)
Reversals   (6)
Business disposition (22)  
Foreign currency translation 3 (2)
Balance at end of period 19 71
Severance Costs    
Restructuring reserve activity    
Balance at beginning of period 37 42
Provision for plan 5 49
Cash paid (23) (46)
Reversals   (6)
Business disposition (7)  
Foreign currency translation 3 (2)
Balance at end of period 15 37
Contract Termination and Other Costs    
Restructuring reserve activity    
Balance at beginning of period 34 5
Provision for plan 3 32
Cash paid (18) (3)
Reversals   0
Business disposition (15)  
Foreign currency translation 0 0
Balance at end of period $ 4 $ 34
v3.25.4
Income Taxes - Income Before Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Income Tax Disclosure [Abstract]      
U.S. $ 903 $ 739 $ 905
Non-U.S. 234 204 182
Income from continuing operations before income taxes $ 1,137 $ 943 $ 1,087
v3.25.4
Income Taxes - Current and Deferred Income Tax Expense (Benefit) (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Current:      
Federal $ (7) $ 84 $ 267
State 8 21 18
Non-U.S. 58 61 72
Current income tax expense, total 59 166 357
Deferred:      
Federal 165 (34) (181)
State (6) (24) 1
Non-U.S. (4) 10 (12)
Deferred income tax expense, total 155 (48) (192)
Total income tax expense (benefit):      
Federal 158 50 86
State 2 (3) 19
Non-U.S. 54 71 60
Total income tax expense $ 214 $ 118 $ 165
v3.25.4
Income Taxes - New Presentation of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Amount      
U.S. Federal statutory income tax rate $ 239    
State and local income taxes, net of Federal income tax effects 2    
Foreign tax effects 6    
Effect of cross-border tax laws (2)    
Tax credits - research and development (36)    
Share-based compensation 29    
Other 6    
Audit settlement (17)    
Other 3    
Other adjustments (16)    
Total income tax expense $ 214 $ 118 $ 165
Percentage      
U.S. Federal statutory income tax rate 21.00% 21.00% 21.00%
State income taxes, net of Federal tax benefit 0.20% (0.20%) 1.40%
Foreign tax effects 0.50% 2.10% 1.50%
Effect of cross-border tax laws (0.20%)    
Tax credits - research and development (3.20%) (5.40%) (4.70%)
Share-based compensation 2.60%    
Other 0.50%    
Audit settlement (1.50%)    
Other 0.30%    
Other adjustments (1.40%) (0.40%) (0.80%)
Effective income tax rate 18.80% 12.50% 15.20%
Income tax benefit $ (214) $ (118) $ (165)
KANSAS      
Amount      
Total income tax expense (18)    
Percentage      
Income tax benefit $ 18    
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 28, 2024
Jan. 03, 2026
Income Tax Paid, by Individual Jurisdiction [Line Items]    
Income tax payments, net of refunds, U.S. Federal jurisdictions   $ 19
Income tax payments, net of refunds, states   13
Income tax payments, net of refunds, foreign jurisdictions   72
Benefit related to RAR matter   (17)
Settlement with Taxing Authority    
Income Tax Paid, by Individual Jurisdiction [Line Items]    
Benefit related to RAR matter $ 27 17
CANADA    
Income Tax Paid, by Individual Jurisdiction [Line Items]    
Income tax payments, net of refunds, foreign jurisdictions   23
MEXICO    
Income Tax Paid, by Individual Jurisdiction [Line Items]    
Income tax payments, net of refunds, foreign jurisdictions   18
CHINA    
Income Tax Paid, by Individual Jurisdiction [Line Items]    
Income tax payments, net of refunds, foreign jurisdictions   8
CZECHIA    
Income Tax Paid, by Individual Jurisdiction [Line Items]    
Income tax payments, net of refunds, foreign jurisdictions   6
SPAIN    
Income Tax Paid, by Individual Jurisdiction [Line Items]    
Income tax payments, net of refunds, foreign jurisdictions   $ (5)
v3.25.4
Income Taxes - Effective Income Tax Rate Reconciliation (Details)
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Federal statutory income tax rate to effective income tax rate for continuing operations      
U.S. Federal statutory income tax rate 21.00% 21.00% 21.00%
Increase (decrease) resulting from:      
State income taxes, net of Federal tax benefit 0.20% (0.20%) 1.40%
Non-U.S. tax rate differential and foreign tax credits 0.50% 2.10% 1.50%
Research and development tax credits (3.20%) (5.40%) (4.70%)
Uncertain tax positions release for 2012 to 2017 IRS audit (1.50%)    
Foreign-derived intangible income deduction   (1.70%) (3.20%)
Other adjustments (1.40%) (0.40%) (0.80%)
Effective income tax rate 18.80% 12.50% 15.20%
Tax Year 2012 - 2017      
Increase (decrease) resulting from:      
Uncertain tax positions release for 2012 to 2017 IRS audit   (2.90%) 0.00%
v3.25.4
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Unrecognized Tax Benefits [Roll Forward]      
Balance at beginning of year $ 215 $ 222 $ 231
Additions for tax positions related to current year 19 17 16
Additions for tax positions of prior years 0 4 3
Reductions for tax positions of prior years (1) 0 (28)
Reductions for settlements (17) (28) 0
Balance at end of year $ 216 $ 215 $ 222
v3.25.4
Income Taxes - Deferred Taxes (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Income Tax Examination [Line Items]    
Capitalized research and development expenditures $ 459 $ 631
Accrued liabilities 201 224
U.S. operating loss and tax credit carryforwards 232 212
Obligation for pension and postretirement benefits 130 109
Deferred compensation 70 94
Operating lease liabilities 102 93
Non-U.S. operating loss and tax credit carryforwards 82 88
Prepaid pension benefits (721) (562)
Property, plant and equipment, principally depreciation (186) (198)
Amortization of goodwill and other intangibles (157) (184)
Operating lease right-of-use assets (99) (90)
Valuation allowance on deferred tax assets (76) (82)
Other, net (25) (74)
Deferred taxes, net 12 $ 261
U.S.    
Income Tax Examination [Line Items]    
Operating loss and tax credit carryforward benefits subject to expiration 184  
Operating loss and tax credit carryforward benefits that may be carried forward indefinitely 48  
Non-U.S.    
Income Tax Examination [Line Items]    
Operating loss and tax credit carryforward benefits that may be carried forward indefinitely $ 73  
v3.25.4
Income Taxes - Breakdown of Deferred Taxes (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Breakdown of deferred taxes    
Deferred taxes, net $ 12 $ 261
Manufacturing group    
Breakdown of deferred taxes    
Deferred tax assets, net of valuation allowance 145 394
Deferred tax liabilities (123) (96)
Finance group    
Breakdown of deferred taxes    
Deferred tax liabilities $ (10) $ (37)
v3.25.4
Commitments and Contingencies - Letter of Credit (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Commitments and Contingencies Disclosure [Abstract]    
Aggregate amount of outstanding letter of credit arrangements and surety bonds $ 380 $ 336
v3.25.4
Commitments and Contingencies - Environmental Remediation (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Environmental Remediation      
Environmental Loss Contingency, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag environmental reserves    
Environmental liabilities      
Environmental Remediation      
Environmental reserves $ 80    
Estimated period over which accrued environmental remediation liabilities are likely to be paid 10 years    
Accrued environmental remediation liabilities classified as current liabilities $ 15    
Expense, net of recoveries 17 $ 9 $ 8
Environmental liabilities | Minimum      
Environmental Remediation      
Potential environmental liabilities 45    
Environmental liabilities | Maximum      
Environmental Remediation      
Potential environmental liabilities $ 155    
v3.25.4
Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Manufacturing group      
Supplemental Cash Flow Information [Line Items]      
Interest paid $ 135 $ 124 $ 110
Net income taxes paid 92 181 338
Finance group      
Supplemental Cash Flow Information [Line Items]      
Interest paid 17 18 12
Net income taxes paid $ 12 $ 10 $ 14
v3.25.4
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Allowance for credit losses on accounts receivable      
Valuation and Qualifying Accounts      
Balance at beginning of year $ 19 $ 26 $ 24
Provision (reversal) for credit losses (1) (4) 7
Deductions from reserves (2) (3) (5)
Balance at end of year 16 19 26
Allowance for credit losses on finance receivables      
Valuation and Qualifying Accounts      
Balance at beginning of year 19 24 24
Provision (reversal) for credit losses (1) (14) (18)
Charge-offs 0 (1) 0
Recoveries 1 10 18
Balance at end of year 19 19 24
Inventory FIFO reserves      
Valuation and Qualifying Accounts      
Balance at beginning of year 432 390 350
Charged to costs and expenses 26 57 63
Business disposition (36) 0 0
Deductions from reserves (28) (15) (23)
Balance at end of year $ 394 $ 432 $ 390