TEXTRON INC, 10-Q filed on 7/27/2023
Quarterly Report
v3.23.2
Cover - shares
 6 Months Ended
Jul. 01, 2023
Jul. 14, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jul. 01, 2023  
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, $0.125 par value  
Trading Symbol TXT  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   198,070,588
Entity Central Index Key 0000217346  
Current Fiscal Year End Date --12-30  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.23.2
Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Jul. 01, 2023
Jul. 02, 2022
Revenues        
Total revenues $ 3,424 $ 3,154 $ 6,448 $ 6,155
Costs, expenses and other        
Selling and administrative expense 289 279 594 584
Interest expense, net 19 31 39 63
Non-service components of pension and postretirement income, net (59) (60) (118) (120)
Total costs, expenses and other 3,095 2,891 5,892 5,660
Income before income taxes 329 263 556 495
Income tax expense 66 45 102 84
Income from continuing operations 263 218 454 411
Loss from discontinued operations 0 (1) 0 (1)
Net income $ 263 $ 217 $ 454 $ 410
Basic earnings per share        
Continuing operations (in dollars per share) $ 1.31 $ 1.01 $ 2.24 $ 1.90
Diluted earnings per share        
Continuing operations (in dollars per share) $ 1.30 $ 1.00 $ 2.22 $ 1.88
Manufacturing group        
Costs, expenses and other        
Income from continuing operations     $ 438 $ 395
Finance group        
Revenues        
Total revenues $ 18 $ 14 30 30
Costs, expenses and other        
Income from continuing operations     16 16
Product        
Costs, expenses and other        
Cost of products/services sold 2,465 2,304 4,641 4,373
Product | Manufacturing group        
Revenues        
Total revenues 2,917 2,689 5,467 5,137
Service        
Costs, expenses and other        
Cost of products/services sold 381 337 736 760
Service | Manufacturing group        
Revenues        
Total revenues $ 489 $ 451 $ 951 $ 988
v3.23.2
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Jul. 01, 2023
Jul. 02, 2022
Statement of Comprehensive Income [Abstract]        
Net income $ 263 $ 217 $ 454 $ 410
Other comprehensive income (loss), net of tax        
Pension and postretirement benefits adjustments, net of reclassifications 0 17 0 34
Foreign currency translation adjustments 4 (90) 32 (104)
Deferred gains (losses) on hedge contracts, net of reclassifications 8 (3) 6 4
Other comprehensive income (loss) 12 (76) 38 (66)
Comprehensive income $ 275 $ 141 $ 492 $ 344
v3.23.2
Consolidated Balance Sheets (Unaudited) - USD ($)
shares in Thousands, $ in Millions
Jul. 01, 2023
Dec. 31, 2022
Assets    
Inventories $ 4,108 $ 3,550
Finance receivables, net 574 563
Total assets 16,485 16,293
Liabilities    
Total liabilities 9,451 9,180
Shareholders’ equity    
Common stock 26 26
Capital surplus 1,973 1,880
Treasury stock (740) (84)
Retained earnings 6,349 5,903
Accumulated other comprehensive loss (574) (612)
Total shareholders’ equity 7,034 7,113
Total liabilities and shareholders’ equity $ 16,485 $ 16,293
Common shares outstanding (in shares) 198,230 206,161
Manufacturing group    
Assets    
Cash and equivalents $ 1,695 $ 1,963
Accounts receivable, net 953 855
Inventories 4,108 3,550
Other current assets 829 1,033
Total current assets 7,585 7,401
Property, plant and equipment, less accumulated depreciation and amortization of $5,212 and $5,084, respectively 2,487 2,523
Goodwill 2,291 2,283
Other assets 3,472 3,422
Total assets 15,835 15,629
Liabilities    
Current portion of long-term debt 357 7
Accounts payable 1,227 1,018
Other current liabilities 2,820 2,645
Total current liabilities 4,404 3,670
Other liabilities 1,797 1,879
Long-term debt 2,825 3,175
Total liabilities 9,026 8,724
Finance group    
Assets    
Cash and equivalents 55 72
Finance receivables, net 574 563
Other assets 21 29
Total assets 650 664
Liabilities    
Other liabilities 71 81
Debt 354 375
Total liabilities $ 425 $ 456
v3.23.2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Jul. 01, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Accumulated depreciation and amortization $ 5,212 $ 5,084
v3.23.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Cash flows from operating activities    
Income from continuing operations $ 454 $ 411
Non-cash items:    
Depreciation and amortization 193 191
Deferred income taxes (77) (118)
Other, net 66 55
Changes in assets and liabilities:    
Accounts receivable, net (97) (48)
Inventories (553) (246)
Other assets 252 85
Accounts payable 207 24
Other liabilities 116 269
Income taxes, net 14 32
Pension, net (102) (83)
Captive finance receivables, net (15) 35
Other operating activities, net 2 8
Net cash provided by (used in) operating activities of continuing operations 460 615
Net cash used in operating activities of discontinued operations (1) (2)
Net cash provided by (used in) operating activities 459 613
Cash flows from investing activities    
Capital expenditures (145) (114)
Net cash used in business acquisitions 0 (198)
Net proceeds from corporate-owned life insurance policies 38 25
Proceeds from sale of property, plant and equipment 0 18
Finance receivables repaid 19 21
Other investing activities, net 2 44
Net cash provided by (used in) investing activities (86) (204)
Cash flows from financing activities    
Decrease in short-term debt 0 (15)
Principal payments on long-term debt and nonrecourse debt (34) (223)
Purchases of Textron common stock (650) (439)
Dividends paid (8) (9)
Proceeds from options exercised 31 32
Other financing activities, net (5) (4)
Net cash used in financing activities (666) (658)
Effect of exchange rate changes on cash and equivalents 8 (27)
Net decrease in cash and equivalents (285) (276)
Cash and equivalents at beginning of period 2,035 2,117
Cash and equivalents at end of period $ 1,750 $ 1,841
v3.23.2
Consolidated Statements of Cash Flows (Unaudited) - Manufacturing Group and Finance Group - USD ($)
$ in Millions
 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Cash flows from operating activities    
Income from continuing operations $ 454 $ 411
Non-cash items:    
Depreciation and amortization 193 191
Deferred income taxes (77) (118)
Other, net 66 55
Changes in assets and liabilities:    
Accounts receivable, net (97) (48)
Inventories (553) (246)
Other assets 252 85
Accounts payable 207 24
Other liabilities 116 269
Income taxes, net 14 32
Pension, net (102) (83)
Other operating activities, net 2 8
Net cash provided by (used in) operating activities of continuing operations 460 615
Net cash used in operating activities of discontinued operations (1) (2)
Net cash provided by (used in) operating activities 459 613
Cash flows from investing activities    
Capital expenditures (145) (114)
Net cash used in business acquisitions 0 (198)
Net proceeds from corporate-owned life insurance policies 38 25
Proceeds from sale of property, plant and equipment 0 18
Finance receivables repaid 19 21
Other investing activities, net 2 44
Net cash provided by (used in) investing activities (86) (204)
Cash flows from financing activities    
Decrease in short-term debt 0 (15)
Principal payments on long-term debt and nonrecourse debt (34) (223)
Purchases of Textron common stock (650) (439)
Dividends paid (8) (9)
Proceeds from options exercised 31 32
Other financing activities, net (5) (4)
Net cash used in financing activities (666) (658)
Effect of exchange rate changes on cash and equivalents 8 (27)
Net decrease in cash and equivalents (285) (276)
Cash and equivalents at beginning of period 2,035 2,117
Cash and equivalents at end of period 1,750 1,841
Manufacturing group    
Cash flows from operating activities    
Income from continuing operations 438 395
Non-cash items:    
Depreciation and amortization 193 191
Deferred income taxes (77) (106)
Other, net 69 62
Changes in assets and liabilities:    
Accounts receivable, net (97) (48)
Inventories (553) (246)
Other assets 246 85
Accounts payable 207 24
Other liabilities 125 279
Income taxes, net 16 28
Pension, net (102) (83)
Other operating activities, net 2 8
Net cash provided by (used in) operating activities of continuing operations 467 589
Net cash used in operating activities of discontinued operations (1) (2)
Net cash provided by (used in) operating activities 466 587
Cash flows from investing activities    
Capital expenditures (145) (114)
Net cash used in business acquisitions 0 (198)
Net proceeds from corporate-owned life insurance policies 38 25
Proceeds from sale of property, plant and equipment 0 18
Finance receivables repaid 0 0
Finance receivables originated 0 0
Other investing activities, net 0 0
Net cash provided by (used in) investing activities (107) (269)
Cash flows from financing activities    
Decrease in short-term debt 0 (15)
Principal payments on long-term debt and nonrecourse debt (3) (14)
Purchases of Textron common stock (650) (439)
Dividends paid (8) (9)
Proceeds from options exercised 31 32
Other financing activities, net (5) (4)
Net cash used in financing activities (635) (449)
Effect of exchange rate changes on cash and equivalents 8 (27)
Net decrease in cash and equivalents (268) (158)
Cash and equivalents at beginning of period 1,963 1,922
Cash and equivalents at end of period 1,695 1,764
Finance group    
Cash flows from operating activities    
Income from continuing operations 16 16
Non-cash items:    
Depreciation and amortization 0 0
Deferred income taxes 0 (12)
Other, net (3) (7)
Changes in assets and liabilities:    
Accounts receivable, net 0 0
Inventories 0 0
Other assets 6 0
Accounts payable 0 0
Other liabilities (9) (10)
Income taxes, net (2) 4
Pension, net 0 0
Other operating activities, net 0 0
Net cash provided by (used in) operating activities of continuing operations 8 (9)
Net cash used in operating activities of discontinued operations 0 0
Net cash provided by (used in) operating activities 8 (9)
Cash flows from investing activities    
Capital expenditures 0 0
Net cash used in business acquisitions 0 0
Net proceeds from corporate-owned life insurance policies 0 0
Proceeds from sale of property, plant and equipment 0 0
Finance receivables repaid 67 79
Finance receivables originated (63) (23)
Other investing activities, net 2 44
Net cash provided by (used in) investing activities 6 100
Cash flows from financing activities    
Decrease in short-term debt 0 0
Principal payments on long-term debt and nonrecourse debt (31) (209)
Purchases of Textron common stock 0 0
Dividends paid 0 0
Proceeds from options exercised 0 0
Other financing activities, net 0 0
Net cash used in financing activities (31) (209)
Effect of exchange rate changes on cash and equivalents 0 0
Net decrease in cash and equivalents (17) (118)
Cash and equivalents at beginning of period 72 195
Cash and equivalents at end of period $ 55 $ 77
v3.23.2
Basis of Presentation
 6 Months Ended
Jul. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
Our Consolidated Financial Statements include the accounts of Textron Inc. (Textron) and its majority-owned subsidiaries.  We have prepared these unaudited consolidated financial statements in accordance with accounting principles generally accepted in the U.S. for interim financial information.  Accordingly, these interim financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements.  The consolidated interim financial statements included in this quarterly report should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022.  In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.
Our financings are conducted through two separate borrowing groups.  The Manufacturing group consists of Textron 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 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. All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group.
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.
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 the second quarter of 2023, our cumulative catch-up adjustments increased segment profit by $10 million and net income by $8 million, $0.04 per diluted share. In the second quarter of 2022, our cumulative catch-up adjustments decreased segment profit by $4 million and net income by $3 million, $0.01 per diluted share.
In the first half of 2023, our cumulative catch-up adjustments increased segment profit by $18 million and net income by $14 million, $0.07 per diluted share. In the first half of 2022, our cumulative catch-up adjustments decreased segment profit by $21 million and net income by $16 million, $0.07 per diluted share.
v3.23.2
Accounts Receivable and Finance Receivables
 6 Months Ended
Jul. 01, 2023
Receivables [Abstract]  
Accounts Receivable and Finance Receivables Accounts Receivable and Finance Receivables
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)July 1,
2023		December 31,
2022
Commercial$855 $755 
U.S. Government contracts118 124 
973 879 
Allowance for credit losses(20)(24)
Total accounts receivable, net$953 $855 
Finance Receivables
Finance receivables are presented in the following table:
(In millions)July 1,
2023		December 31,
2022
Finance receivables$597 $587 
Allowance for credit losses(23)(24)
Total finance receivables, net$574 $563 
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 the delinquency aging category are summarized as follows:
(Dollars in millions)July 1,
2023		December 31,
2022
Performing$554$515
Watchlist2626
Nonaccrual1746
Nonaccrual as a percentage of finance receivables2.85%7.84%
Current and less than 31 days past due$589$579
31-60 days past due27
61-90 days past due6—
Over 90 days past due—1
60+ days contractual delinquency as a percentage of finance receivables1.01%0.17%
At July 1, 2023, 36% of our performing finance receivables were originated since the beginning of 2021 and 30% were originated from 2018 to 2020. For finance receivables categorized as watchlist 94% were originated since the beginning of 2020 and for nonaccrual, 40% were originated from 2018 to 2020 with the remainder prior to 2018.
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.
A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles.
(In millions)July 1,
2023		December 31,
2022
Finance receivables evaluated collectively$494 $450 
Finance receivables evaluated individually17 46 
Allowance for credit losses based on collective evaluation20 21 
Allowance for credit losses based on individual evaluation3 3 
Impaired finance receivables with specific allowance for credit losses$11 $15 
Impaired finance receivables with no specific allowance for credit losses6 31 
Unpaid principal balance of impaired finance receivables27 60 
Allowance for credit losses on impaired finance receivables3 3 
Average recorded investment of impaired finance receivables34 67 
v3.23.2
Inventories
 6 Months Ended
Jul. 01, 2023
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories are composed of the following:
(In millions)July 1,
2023		December 31,
2022
Finished goods$1,133 $991 
Work in process1,820 1,540 
Raw materials and components1,155 1,019 
Total inventories$4,108 $3,550 
v3.23.2
Warranty Liability
 6 Months Ended
Jul. 01, 2023
Payables and Accruals [Abstract]  
Warranty Liability Warranty Liability
Changes in our warranty liability are as follows:
Six Months Ended
(In millions)July 1,
2023		July 2,
2022
Beginning of period$149 $127 
Provision33 34 
Settlements(35)(34)
Adjustments*13 10 
End of period$160 $137 
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.
v3.23.2
Leases
 6 Months Ended
Jul. 01, 2023
Leases [Abstract]  
Leases Leases
We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide through operating leases. Our operating leases have remaining lease terms up to 26 years, which include options to extend the lease term for periods up to 25 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $17 million in both the second quarter of 2023 and 2022, and $34 million in both the first half of 2023 and 2022. Variable and short-term lease costs were not significant. Cash paid for operating leases totaled $34 million and $35 million in the first half of 2023 and 2022, respectively, and is classified in cash flows from operating activities. Noncash transactions totaled $24 million and $17 million in the first half of 2023 and 2022, respectively, reflecting the recognition of operating lease assets and liabilities for new or extended leases.
Balance sheet and other information related to our operating leases is as follows:
(Dollars in millions)July 1,
2023		December 31,
2022
Other assets$369$372
Other current liabilities5354
Other liabilities325326
Weighted-average remaining lease term (in years)10.310.4
Weighted-average discount rate4.33%4.14%
At July 1, 2023, maturities of our operating lease liabilities on an undiscounted basis totaled $36 million for the remainder of 2023, $64 million for 2024, $56 million for 2025, $43 million for 2026, $38 million for 2027 and $244 million thereafter.
v3.23.2
Derivative Instruments and Fair Value Measurements
 6 Months Ended
Jul. 01, 2023
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 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 July 1, 2023 and December 31, 2022, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $567 million and $354 million, respectively. At July 1, 2023, the fair value amounts of our foreign currency exchange contracts were a $5 million asset and a $9 million liability. At December 31, 2022, the fair value amount of our foreign currency exchange contracts was an $11 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 the floating-rate cash flows to fixed-rate cash flows on certain debt. These agreements are designated as cash flow hedges.
In the second quarter of 2023, we entered into swap agreements related to our Floating Rate Junior Subordinated Notes for an aggregate notional amount of $185 million and a weighted-average fixed rate of 5.17%; these agreements have a forward start date of August 15, 2023 and maturities ranging from August 15, 2025 to August 15, 2028. Subsequent to August 15, 2023, in compliance with the Adjustable Interest Rate (LIBOR) Act of 2022, the benchmark interest rate on the Notes will change to the three-month CME Term Secured Overnight Funding Rate + 1.99661%. At December 31, 2022, we had a swap agreement with a notional amount of $272 million that matures on August 15, 2023. We also entered into an interest rate swap agreement in May 2022 with a notional amount of $25 million that matures in June 2025 and effectively converts variable-rate interest on a term loan to a fixed rate of 2.75%.
At July 1, 2023 and December 31, 2022, the fair value of our outstanding swap agreements was an $8 million asset. The fair value of these swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2.
Assets and Liabilities Not Recorded at Fair Value
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
July 1, 2023December 31, 2022
CarryingEstimatedCarryingEstimated
(In millions)ValueFair ValueValueFair Value
Manufacturing group
Debt, excluding leases$(3,174)$(2,904)$(3,175)$(2,872)
Finance group
Finance receivables, excluding leases405 396 390 369 
Debt(354)(281)(375)(294)
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.
v3.23.2
Shareholders' Equity
 6 Months Ended
Jul. 01, 2023
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
A reconciliation of Shareholders’ equity is presented below:
(In millions)Common
Stock		Capital
Surplus		Treasury
Stock		Retained
Earnings		Accumulated
Other
Comprehensive
Loss		Total
Shareholders'
Equity
Three months ended July 1, 2023
Beginning of period$26 $1,942 $(464)$6,090 $(586)$7,008 
Net income— — — 263 — 263 
Other comprehensive income— — — — 12 12 
Share-based compensation activity— 31 — — — 31 
Dividends declared— — — (4)— (4)
Purchases of common stock,
  including excise tax*		— — (276)— — (276)
End of period$26 $1,973 $(740)$6,349 $(574)$7,034 
Three months ended July 2, 2022
Beginning of period$28 $1,924 $(314)$6,058 $(779)$6,917 
Net income— — — 217 — 217 
Other comprehensive loss— — — — (76)(76)
Share-based compensation activity— 29 — — — 29 
Dividends declared— — — (4)— (4)
Purchases of common stock— — (282)— — (282)
End of period$28 $1,953 $(596)$6,271 $(855)$6,801 
Six months ended July 1, 2023
Beginning of period$26 $1,880 $(84)$5,903 $(612)$7,113 
Net income— — — 454 — 454 
Other comprehensive income— — — — 38 38 
Share-based compensation activity— 93 — — — 93 
Dividends declared— — — (8)— (8)
Purchases of common stock,
  including excise tax*		— — (656)— — (656)
End of period$26 $1,973 $(740)$6,349 $(574)$7,034 
Six months ended July 2, 2022
Beginning of period$28 $1,863 $(157)$5,870 $(789)$6,815 
Net income— — — 410 — 410 
Other comprehensive loss— — — — (66)(66)
Share-based compensation activity— 90 — — — 90 
Dividends declared— — — (9)— (9)
Purchases of common stock— — (439)— — (439)
End of period$28 $1,953 $(596)$6,271 $(855)$6,801 
*Includes amounts accrued for excise tax imposed on common share repurchases beginning on January 1, 2023 as part of the Inflation Reduction Act that totaled $3 million for the second quarter of 2023 and $6 million for first half of 2023.
Dividends per share of common stock were $0.02 for both the second quarter of 2023 and 2022 and $0.04 for both the first half of 2023 and 2022.
Earnings Per Share
We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period.  Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options.  
The weighted-average shares outstanding for basic and diluted EPS are as follows:
Three Months EndedSix Months Ended
(In thousands)July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Basic weighted-average shares outstanding200,701 214,587 202,768 215,799 
Dilutive effect of stock options1,808 2,071 1,992 2,334 
Diluted weighted-average shares outstanding202,509 216,658 204,760 218,133 
Stock options to purchase 2.0 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for both the second quarter and first half of 2023 as their effect would have been anti-dilutive. For both the second quarter and first half of 2022, stock options to purchase 1.0 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive.
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss)
The components of Accumulated other comprehensive loss are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments		Foreign
Currency
Translation
Adjustments		Deferred
Gains (Losses)
on Hedge
Contracts		Accumulated
Other
Comprehensive
Loss
Balance at December 31, 2022$(516)$(94)$(2)$(612)
Other comprehensive income before reclassifications— 32 3 35 
Reclassified from Accumulated other comprehensive loss— — 3 3 
Balance at July 1, 2023$(516)$(62)$4 $(574)
Balance at January 1, 2022$(799)$9 $1 $(789)
Other comprehensive loss before reclassifications— (104)4 (100)
Reclassified from Accumulated other comprehensive loss34 — — 34 
Balance at July 2, 2022$(765)$(95)$5 $(855)
The before and after-tax components of Other comprehensive income (loss) are presented below:
July 1, 2023July 2, 2022
(In millions)Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount		Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial (gain) loss*$(1)$— $(1)$21 $(6)$15 
Amortization of prior service cost*2 (1)1 2 — 2 
Pension and postretirement benefits adjustments, net1 (1)— 23 (6)17 
Foreign currency translation adjustments4 — 4 (90)— (90)
Deferred gains (losses) on hedge contracts:
Current deferrals7 (1)6 (5)2 (3)
Reclassification adjustments2 — 2 — — — 
Deferred gains (losses) on hedge contracts, net9 (1)8 (5)2 (3)
Total$14 $(2)$12 $(72)$(4)$(76)
Six Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial (gain) loss*$(3)$1 $(2)$42 $(11)$31 
Amortization of prior service cost*4 (2)2 4 (1)3 
Pension and postretirement benefits adjustments, net1 (1)— 46 (12)34 
Foreign currency translation adjustments32 — 32 (104)— (104)
Deferred gains on hedge contracts:
Current deferrals3 — 3 5 (1)4 
Reclassification adjustments4 (1)3 — — — 
Deferred gains on hedge contracts, net7 (1)6 5 (1)4 
Total$40 $(2)$38 $(53)$(13)$(66)
*These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2022 Annual Report on Form 10-K for additional information.
v3.23.2
Segment Information
 6 Months Ended
Jul. 01, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate in, and reported financial information for, the following six business segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation and Finance. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Beginning in 2023, we changed how we measure our manufacturing segment operating results to exclude the non-service components of pension and postretirement income, net; LIFO inventory provision; and intangible asset amortization. This measure also continues to exclude interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. The prior period has been recast to conform to this presentation. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.
Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below:
Three Months EndedSix Months Ended
(In millions)July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Revenues
Textron Aviation$1,362 $1,284 $2,511 $2,324 
Bell701 687 1,322 1,521 
Textron Systems306 293 612 566 
Industrial1,026 871 1,958 1,709 
Textron eAviation11 5 15 5 
Finance18 14 30 30 
Total revenues$3,424 $3,154 $6,448 $6,155 
Segment Profit
Textron Aviation$171 $149 $296 $259 
Bell65 54 125 145 
Textron Systems37 38 71 66 
Industrial79 37 120 76 
Textron eAviation(12)(7)(21)(7)
Finance12 10 20 19 
Segment profit352 281 611 558 
Corporate expenses and other, net(21)(20)(60)(72)
Interest expense, net for Manufacturing group(16)(28)(33)(56)
LIFO inventory provision(35)(17)(60)(29)
Intangible asset amortization(10)(13)(20)(26)
Non-service components of pension and postretirement income, net59 60 118 120 
Income before income taxes$329 $263 $556 $495 
v3.23.2
Revenues
 6 Months Ended
Jul. 01, 2023
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Disaggregation of Revenues
Our revenues for our segments disaggregated by major product type are presented below:
Three Months EndedSix Months Ended
(In millions)July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Aircraft$920 $856 $1,638 $1,502 
Aftermarket parts and services442 428 873 822 
Textron Aviation1,362 1,284 2,511 2,324 
Military aircraft and support programs395 402 780 999 
Commercial helicopters, parts and services306 285 542 522 
Bell701 687 1,322 1,521 
Textron Systems306 293 612 566 
Fuel systems and functional components523 435 1,011 899 
Specialized vehicles503 436 947 810 
Industrial1,026 871 1,958 1,709 
Textron eAviation11 5 15 5 
Finance18 14 30 30 
Total revenues$3,424 $3,154 $6,448 $6,155 
Our revenues for our segments by customer type and geographic location are presented below:
(In millions)Textron
Aviation		BellTextron
Systems		IndustrialTextron eAviationFinanceTotal
Three months ended July 1, 2023
Customer type:
Commercial$1,321 $301 $70 $1,024 $11 $18 $2,745 
U.S. Government41 400 236 2 — — 679 
Total revenues$1,362 $701 $306 $1,026 $11 $18 $3,424 
Geographic location:
United States$933 $534 $274 $566 $7 $4 $2,318 
Europe159 35 17 201 4 1 417 
Other international270 132 15 259 — 13 689 
Total revenues$1,362 $701 $306 $1,026 $11 $18 $3,424 
Three months ended July 2, 2022
Customer type:
Commercial$1,253 $279 $65 $862 $5 $14 $2,478 
U.S. Government31 408 228 9 — — 676 
Total revenues$1,284 $687 $293 $871 $5 $14 $3,154 
Geographic location:
United States$776 $504 $268 $466 $1 $5 $2,020 
Europe239 43 10 185 3 — 480 
Other international269 140 15 220 1 9 654 
Total revenues$1,284 $687 $293 $871 $5 $14 $3,154 
Six months ended July 1, 2023
Customer type:
Commercial$2,428 $533 $144 $1,951 $15 $30 $5,101 
U.S. Government83 789 468 7 — — 1,347 
Total revenues$2,511 $1,322 $612 $1,958 $15 $30 $6,448 
Geographic location:
United States$1,769 $994 $549 $1,060 $8 $8 $4,388 
Europe225 54 31 405 6 1 722 
Other international517 274 32 493 1 21 1,338 
Total revenues$2,511 $1,322 $612 $1,958 $15 $30 $6,448 
Six months ended July 2, 2022
Customer type:
Commercial$2,274 $513 $130 $1,697 $5 $30 $4,649 
U.S. Government50 1,008 436 12 — — 1,506 
Total revenues$2,324 $1,521 $566 $1,709 $5 $30 $6,155 
Geographic location:
United States$1,508 $1,174 $514 $892 $1 $10 $4,099 
Europe358 71 18 375 3 1 826 
Other international458 276 34 442 1 19 1,230 
Total revenues$2,324 $1,521 $566 $1,709 $5 $30 $6,155 
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 revenues 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 July 1, 2023, we had $14.3 billion in remaining performance obligations of which we expect to recognize revenues of approximately 80% through 2024, an additional 17% through 2026, 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 July 1, 2023 and December 31, 2022, contract assets totaled $501 million and $680 million, respectively, and contract liabilities totaled $1.7 billion and $1.5 billion, respectively, reflecting timing differences between revenues recognized, billings and payments from customers. We recognized revenues of $380 million and $293 million in the second quarter of 2023 and 2022, respectively, and $696 million and $499 million in the first half of 2023 and 2022, respectively, that were included in the contract liability balance at the beginning of each year.
v3.23.2
Retirement Plans
 6 Months Ended
Jul. 01, 2023
Retirement Benefits [Abstract]  
Retirement Plans Retirement PlansWe provide defined benefit pension plans and other postretirement benefits to eligible employees.  The components of net periodic benefit income for these plans are as follows:
Three Months EndedSix Months Ended
(In millions)July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Pension Benefits
Service cost$16 $27 $33 $53 
Interest cost91 68 182 137 
Expected return on plan assets(153)(153)(305)(306)
Amortization of net actuarial loss1 22 1 44 
Amortization of prior service cost3 3 6 6 
Net periodic benefit income*$(42)$(33)$(83)$(66)
Postretirement Benefits Other Than Pensions
Service cost$1 $— $1 $1 
Interest cost2 2 4 3 
Amortization of net actuarial gain(2)(1)(4)(2)
Amortization of prior service credit(1)(1)(2)(2)
Net periodic benefit income$— $— $(1)$— 
* Excludes the cost associated with the defined contribution component, included in certain of our U.S.-based defined benefit pension plans, that totaled $2 million and $3 million for the second quarter of 2023 and 2022, respectively, and $6 million and $7 million for the first half of 2023 and 2022, respectively.
v3.23.2
Income Taxes
 6 Months Ended
Jul. 01, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our effective tax rate for the second quarter and first half of 2023 was 20.1% and 18.3%, respectively. In the first half of 2023, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income, partially offset by $7 million in withholding taxes due to the repatriation of cash related to a non-US jurisdiction.
Our effective tax rate for the second quarter and first half of 2022 was 17.1% and 17.0%, respectively. In the second quarter and first half of 2022, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the favorable impact of research and development credits.
v3.23.2
Commitments and Contingencies
 6 Months Ended
Jul. 01, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and ContingenciesWe 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.
v3.23.2
Basis of Presentation (Policies)
 6 Months Ended
Jul. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
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.
v3.23.2
Accounts Receivable and Finance Receivables (Tables)
 6 Months Ended
Jul. 01, 2023
Receivables [Abstract]  
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)July 1,
2023		December 31,
2022
Commercial$855 $755 
U.S. Government contracts118 124 
973 879 
Allowance for credit losses(20)(24)
Total accounts receivable, net$953 $855 
Finance Receivables
Finance receivables are presented in the following table:
(In millions)July 1,
2023		December 31,
2022
Finance receivables$597 $587 
Allowance for credit losses(23)(24)
Total finance receivables, net$574 $563 
Finance Receivables Categorized Based On Credit Quality Indicators
Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:
(Dollars in millions)July 1,
2023		December 31,
2022
Performing$554$515
Watchlist2626
Nonaccrual1746
Nonaccrual as a percentage of finance receivables2.85%7.84%
Current and less than 31 days past due$589$579
31-60 days past due27
61-90 days past due6—
Over 90 days past due—1
60+ days contractual delinquency as a percentage of finance receivables1.01%0.17%
Finance Receivables By Delinquency Aging Category
Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:
(Dollars in millions)July 1,
2023		December 31,
2022
Performing$554$515
Watchlist2626
Nonaccrual1746
Nonaccrual as a percentage of finance receivables2.85%7.84%
Current and less than 31 days past due$589$579
31-60 days past due27
61-90 days past due6—
Over 90 days past due—1
60+ days contractual delinquency as a percentage of finance receivables1.01%0.17%
Finance Receivables and Allowance For Credit Losses Based on Impairment Evaluation
A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles.
(In millions)July 1,
2023		December 31,
2022
Finance receivables evaluated collectively$494 $450 
Finance receivables evaluated individually17 46 
Allowance for credit losses based on collective evaluation20 21 
Allowance for credit losses based on individual evaluation3 3 
Impaired finance receivables with specific allowance for credit losses$11 $15 
Impaired finance receivables with no specific allowance for credit losses6 31 
Unpaid principal balance of impaired finance receivables27 60 
Allowance for credit losses on impaired finance receivables3 3 
Average recorded investment of impaired finance receivables34 67 
v3.23.2
Inventories (Tables)
 6 Months Ended
Jul. 01, 2023
Inventory Disclosure [Abstract]  
Inventories
Inventories are composed of the following:
(In millions)July 1,
2023		December 31,
2022
Finished goods$1,133 $991 
Work in process1,820 1,540 
Raw materials and components1,155 1,019 
Total inventories$4,108 $3,550 
v3.23.2
Warranty Liability (Tables)
 6 Months Ended
Jul. 01, 2023
Payables and Accruals [Abstract]  
Changes in Warranty Liability
Changes in our warranty liability are as follows:
Six Months Ended
(In millions)July 1,
2023		July 2,
2022
Beginning of period$149 $127 
Provision33 34 
Settlements(35)(34)
Adjustments*13 10 
End of period$160 $137 
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.
v3.23.2
Leases (Tables)
 6 Months Ended
Jul. 01, 2023
Leases [Abstract]  
Schedule of Balance Sheet and Other Information
Balance sheet and other information related to our operating leases is as follows:
(Dollars in millions)July 1,
2023		December 31,
2022
Other assets$369$372
Other current liabilities5354
Other liabilities325326
Weighted-average remaining lease term (in years)10.310.4
Weighted-average discount rate4.33%4.14%
v3.23.2
Derivative Instruments and Fair Value Measurements (Tables)
 6 Months Ended
Jul. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Carrying Value and Estimated and Fair Value of Financial Instruments
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
July 1, 2023December 31, 2022
CarryingEstimatedCarryingEstimated
(In millions)ValueFair ValueValueFair Value
Manufacturing group
Debt, excluding leases$(3,174)$(2,904)$(3,175)$(2,872)
Finance group
Finance receivables, excluding leases405 396 390 369 
Debt(354)(281)(375)(294)
v3.23.2
Shareholders' Equity (Tables)
 6 Months Ended
Jul. 01, 2023
Equity [Abstract]  
Schedule of Shareholder's Equity
A reconciliation of Shareholders’ equity is presented below:
(In millions)Common
Stock		Capital
Surplus		Treasury
Stock		Retained
Earnings		Accumulated
Other
Comprehensive
Loss		Total
Shareholders'
Equity
Three months ended July 1, 2023
Beginning of period$26 $1,942 $(464)$6,090 $(586)$7,008 
Net income— — — 263 — 263 
Other comprehensive income— — — — 12 12 
Share-based compensation activity— 31 — — — 31 
Dividends declared— — — (4)— (4)
Purchases of common stock,
  including excise tax*		— — (276)— — (276)
End of period$26 $1,973 $(740)$6,349 $(574)$7,034 
Three months ended July 2, 2022
Beginning of period$28 $1,924 $(314)$6,058 $(779)$6,917 
Net income— — — 217 — 217 
Other comprehensive loss— — — — (76)(76)
Share-based compensation activity— 29 — — — 29 
Dividends declared— — — (4)— (4)
Purchases of common stock— — (282)— — (282)
End of period$28 $1,953 $(596)$6,271 $(855)$6,801 
Six months ended July 1, 2023
Beginning of period$26 $1,880 $(84)$5,903 $(612)$7,113 
Net income— — — 454 — 454 
Other comprehensive income— — — — 38 38 
Share-based compensation activity— 93 — — — 93 
Dividends declared— — — (8)— (8)
Purchases of common stock,
  including excise tax*		— — (656)— — (656)
End of period$26 $1,973 $(740)$6,349 $(574)$7,034 
Six months ended July 2, 2022
Beginning of period$28 $1,863 $(157)$5,870 $(789)$6,815 
Net income— — — 410 — 410 
Other comprehensive loss— — — — (66)(66)
Share-based compensation activity— 90 — — — 90 
Dividends declared— — — (9)— (9)
Purchases of common stock— — (439)— — (439)
End of period$28 $1,953 $(596)$6,271 $(855)$6,801 
*Includes amounts accrued for excise tax imposed on common share repurchases beginning on January 1, 2023 as part of the Inflation Reduction Act that totaled $3 million for the second quarter of 2023 and $6 million for first half of 2023.
Schedule of Weighted-Average Shares Outstanding for Basic and Diluted EPS
The weighted-average shares outstanding for basic and diluted EPS are as follows:
Three Months EndedSix Months Ended
(In thousands)July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Basic weighted-average shares outstanding200,701 214,587 202,768 215,799 
Dilutive effect of stock options1,808 2,071 1,992 2,334 
Diluted weighted-average shares outstanding202,509 216,658 204,760 218,133 
Schedule of Components of Accumulated Other Comprehensive Income (Loss)
The components of Accumulated other comprehensive loss are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments		Foreign
Currency
Translation
Adjustments		Deferred
Gains (Losses)
on Hedge
Contracts		Accumulated
Other
Comprehensive
Loss
Balance at December 31, 2022$(516)$(94)$(2)$(612)
Other comprehensive income before reclassifications— 32 3 35 
Reclassified from Accumulated other comprehensive loss— — 3 3 
Balance at July 1, 2023$(516)$(62)$4 $(574)
Balance at January 1, 2022$(799)$9 $1 $(789)
Other comprehensive loss before reclassifications— (104)4 (100)
Reclassified from Accumulated other comprehensive loss34 — — 34 
Balance at July 2, 2022$(765)$(95)$5 $(855)
Schedule of Before and After-Tax Components of Other Comprehensive Income (Loss)
The before and after-tax components of Other comprehensive income (loss) are presented below:
July 1, 2023July 2, 2022
(In millions)Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount		Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial (gain) loss*$(1)$— $(1)$21 $(6)$15 
Amortization of prior service cost*2 (1)1 2 — 2 
Pension and postretirement benefits adjustments, net1 (1)— 23 (6)17 
Foreign currency translation adjustments4 — 4 (90)— (90)
Deferred gains (losses) on hedge contracts:
Current deferrals7 (1)6 (5)2 (3)
Reclassification adjustments2 — 2 — — — 
Deferred gains (losses) on hedge contracts, net9 (1)8 (5)2 (3)
Total$14 $(2)$12 $(72)$(4)$(76)
Six Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial (gain) loss*$(3)$1 $(2)$42 $(11)$31 
Amortization of prior service cost*4 (2)2 4 (1)3 
Pension and postretirement benefits adjustments, net1 (1)— 46 (12)34 
Foreign currency translation adjustments32 — 32 (104)— (104)
Deferred gains on hedge contracts:
Current deferrals3 — 3 5 (1)4 
Reclassification adjustments4 (1)3 — — — 
Deferred gains on hedge contracts, net7 (1)6 5 (1)4 
Total$40 $(2)$38 $(53)$(13)$(66)
*These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2022 Annual Report on Form 10-K for additional information.
v3.23.2
Segment Information (Tables)
 6 Months Ended
Jul. 01, 2023
Segment Reporting [Abstract]  
Revenues by Segment and Reconciliation of Segment Profit Income (Loss) Before Income Taxes
Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below:
Three Months EndedSix Months Ended
(In millions)July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Revenues
Textron Aviation$1,362 $1,284 $2,511 $2,324 
Bell701 687 1,322 1,521 
Textron Systems306 293 612 566 
Industrial1,026 871 1,958 1,709 
Textron eAviation11 5 15 5 
Finance18 14 30 30 
Total revenues$3,424 $3,154 $6,448 $6,155 
Segment Profit
Textron Aviation$171 $149 $296 $259 
Bell65 54 125 145 
Textron Systems37 38 71 66 
Industrial79 37 120 76 
Textron eAviation(12)(7)(21)(7)
Finance12 10 20 19 
Segment profit352 281 611 558 
Corporate expenses and other, net(21)(20)(60)(72)
Interest expense, net for Manufacturing group(16)(28)(33)(56)
LIFO inventory provision(35)(17)(60)(29)
Intangible asset amortization(10)(13)(20)(26)
Non-service components of pension and postretirement income, net59 60 118 120 
Income before income taxes$329 $263 $556 $495 
v3.23.2
Revenues (Tables)
 6 Months Ended
Jul. 01, 2023
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Our revenues for our segments disaggregated by major product type are presented below:
Three Months EndedSix Months Ended
(In millions)July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Aircraft$920 $856 $1,638 $1,502 
Aftermarket parts and services442 428 873 822 
Textron Aviation1,362 1,284 2,511 2,324 
Military aircraft and support programs395 402 780 999 
Commercial helicopters, parts and services306 285 542 522 
Bell701 687 1,322 1,521 
Textron Systems306 293 612 566 
Fuel systems and functional components523 435 1,011 899 
Specialized vehicles503 436 947 810 
Industrial1,026 871 1,958 1,709 
Textron eAviation11 5 15 5 
Finance18 14 30 30 
Total revenues$3,424 $3,154 $6,448 $6,155 
Our revenues for our segments by customer type and geographic location are presented below:
(In millions)Textron
Aviation		BellTextron
Systems		IndustrialTextron eAviationFinanceTotal
Three months ended July 1, 2023
Customer type:
Commercial$1,321 $301 $70 $1,024 $11 $18 $2,745 
U.S. Government41 400 236 2 — — 679 
Total revenues$1,362 $701 $306 $1,026 $11 $18 $3,424 
Geographic location:
United States$933 $534 $274 $566 $7 $4 $2,318 
Europe159 35 17 201 4 1 417 
Other international270 132 15 259 — 13 689 
Total revenues$1,362 $701 $306 $1,026 $11 $18 $3,424 
Three months ended July 2, 2022
Customer type:
Commercial$1,253 $279 $65 $862 $5 $14 $2,478 
U.S. Government31 408 228 9 — — 676 
Total revenues$1,284 $687 $293 $871 $5 $14 $3,154 
Geographic location:
United States$776 $504 $268 $466 $1 $5 $2,020 
Europe239 43 10 185 3 — 480 
Other international269 140 15 220 1 9 654 
Total revenues$1,284 $687 $293 $871 $5 $14 $3,154 
Six months ended July 1, 2023
Customer type:
Commercial$2,428 $533 $144 $1,951 $15 $30 $5,101 
U.S. Government83 789 468 7 — — 1,347 
Total revenues$2,511 $1,322 $612 $1,958 $15 $30 $6,448 
Geographic location:
United States$1,769 $994 $549 $1,060 $8 $8 $4,388 
Europe225 54 31 405 6 1 722 
Other international517 274 32 493 1 21 1,338 
Total revenues$2,511 $1,322 $612 $1,958 $15 $30 $6,448 
Six months ended July 2, 2022
Customer type:
Commercial$2,274 $513 $130 $1,697 $5 $30 $4,649 
U.S. Government50 1,008 436 12 — — 1,506 
Total revenues$2,324 $1,521 $566 $1,709 $5 $30 $6,155 
Geographic location:
United States$1,508 $1,174 $514 $892 $1 $10 $4,099 
Europe358 71 18 375 3 1 826 
Other international458 276 34 442 1 19 1,230 
Total revenues$2,324 $1,521 $566 $1,709 $5 $30 $6,155 
v3.23.2
Retirement Plans (Tables)
 6 Months Ended
Jul. 01, 2023
Retirement Benefits [Abstract]  
Schedule of Components of Net Periodic Benefit Income The components of net periodic benefit income for these plans are as follows:
Three Months EndedSix Months Ended
(In millions)July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Pension Benefits
Service cost$16 $27 $33 $53 
Interest cost91 68 182 137 
Expected return on plan assets(153)(153)(305)(306)
Amortization of net actuarial loss1 22 1 44 
Amortization of prior service cost3 3 6 6 
Net periodic benefit income*$(42)$(33)$(83)$(66)
Postretirement Benefits Other Than Pensions
Service cost$1 $— $1 $1 
Interest cost2 2 4 3 
Amortization of net actuarial gain(2)(1)(4)(2)
Amortization of prior service credit(1)(1)(2)(2)
Net periodic benefit income$— $— $(1)$— 
* Excludes the cost associated with the defined contribution component, included in certain of our U.S.-based defined benefit pension plans, that totaled $2 million and $3 million for the second quarter of 2023 and 2022, respectively, and $6 million and $7 million for the first half of 2023 and 2022, respectively.
v3.23.2
Basis of Presentation (Details)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2023
USD ($)
$ / shares
Jul. 02, 2022
USD ($)
$ / shares
Jul. 01, 2023
USD ($)
borrowing_group
$ / shares
Jul. 02, 2022
USD ($)
$ / shares
Basis of Presentation        
Number of borrowing groups | borrowing_group     2  
Cumulative catch-up method        
Basis of Presentation        
Cumulative catch up adjustments, increase (decrease) in segment profit $ 10 $ (4) $ 18 $ (21)
Change in accounting estimate financial effect, increase (decrease) in net income $ 8 $ (3) $ 14 $ (16)
Change in accounting estimate financial effect increase (decrease) in earnings per diluted share (in dollars per share) | $ / shares $ 0.04 $ (0.01) $ 0.07 $ (0.07)
v3.23.2
Accounts Receivable and Finance Receivables - Accounts Receivable (Details) - Manufacturing group - USD ($)
$ in Millions
Jul. 01, 2023
Dec. 31, 2022
Accounts Receivable    
Accounts receivable, gross $ 973 $ 879
Allowance for credit losses (20) (24)
Total accounts receivable, net 953 855
Commercial    
Accounts Receivable    
Accounts receivable, gross 855 755
U.S. Government    
Accounts Receivable    
Accounts receivable, gross $ 118 $ 124
v3.23.2
Accounts Receivable and Finance Receivables - Finance Receivables (Details) - USD ($)
$ in Millions
Jul. 01, 2023
Dec. 31, 2022
Finance Receivables    
Finance receivables $ 597 $ 587
Allowance for credit losses (23) (24)
Total finance receivables, net $ 574 $ 563
v3.23.2
Accounts Receivable and Finance Receivables - Finance Receivable Portfolio Quality (Details) - USD ($)
$ in Millions
 6 Months Ended
Jul. 01, 2023
Dec. 31, 2022
Finance Receivable Portfolio Quality    
Finance receivables $ 597 $ 587
60+ days contractual delinquency as a percentage of finance receivables 1.01% 0.17%
Current and less than 31 days past due    
Finance Receivable Portfolio Quality    
Finance receivables $ 589 $ 579
31-60 days past due    
Finance Receivable Portfolio Quality    
Finance receivables 2 7
61-90 days past due    
Finance Receivable Portfolio Quality    
Finance receivables 6 0
Over 90 days past due    
Finance Receivable Portfolio Quality    
Finance receivables $ 0 $ 1
Performing    
Finance Receivable Portfolio Quality    
Financing percentage receivable originating since the beginning of 2021 36.00%  
Financing receivable percentage originating from 2018 to 2020 30.00%  
Nonperforming    
Finance Receivable Portfolio Quality    
Nonaccrual as a percentage of finance receivables 2.85% 7.84%
Nonperforming | Watchlist    
Finance Receivable Portfolio Quality    
Finance receivables $ 26 $ 26
Financing receivable percentage originating since the beginning of 2020 94.00%  
Nonperforming | Nonaccrual    
Finance Receivable Portfolio Quality    
Finance receivables $ 17 46
Financing receivable percentage originating from 2018 to 2020 40.00%  
Nonperforming | Minimum    
Finance Receivable Portfolio Quality    
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful 3 months  
Performing    
Finance Receivable Portfolio Quality    
Finance receivables $ 554 $ 515
v3.23.2
Accounts Receivable and Finance Receivables - Finance Receivables and Allowance for Losses Based on the Results of Impairment Evaluation (Details) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Jul. 01, 2023
Dec. 31, 2022
Receivables [Abstract]    
Finance receivables evaluated collectively $ 494 $ 450
Finance receivables evaluated individually 17 46
Allowance for credit losses based on collective evaluation 20 21
Allowance for credit losses based on individual evaluation 3 3
Impaired finance receivables with specific allowance for credit losses 11 15
Impaired finance receivables with no specific allowance for credit losses 6 31
Unpaid principal balance of impaired finance receivables 27 60
Allowance for credit losses on impaired finance receivables 3 3
Average recorded investment of impaired finance receivables $ 34 $ 67
v3.23.2
Inventories (Details) - USD ($)
$ in Millions
Jul. 01, 2023
Dec. 31, 2022
Inventories    
Finished goods $ 1,133 $ 991
Work in process 1,820 1,540
Raw materials and components 1,155 1,019
Total inventories $ 4,108 $ 3,550
v3.23.2
Warranty Liability (Details) - USD ($)
$ in Millions
 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Changes in warranty liability    
Beginning of period $ 149 $ 127
Provision 33 34
Settlements (35) (34)
Adjustments 13 10
End of period $ 160 $ 137
v3.23.2
Leases - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Jul. 01, 2023
Jul. 02, 2022
Leases [Abstract]        
Remaining lease terms 26 years   26 years  
Operating lease - option to extend     true  
Operating lease - option to extend the lease, term 25 years   25 years  
Operating lease cost $ 17 $ 17 $ 34 $ 34
Cash paid for operating lease liabilities     34 35
Noncash lease transactions     $ 24 $ 17
v3.23.2
Leases - Balance Sheet and Other Information (Details) - USD ($)
$ in Millions
Jul. 01, 2023
Dec. 31, 2022
Operating leases:    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets
Other assets $ 369 $ 372
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Other current liabilities $ 53 $ 54
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Other liabilities $ 325 $ 326
Weighted-average remaining lease term (in years)    
Weighted-average remaining lease term (in years) 10 years 3 months 18 days 10 years 4 months 24 days
Weighted-average discount rate    
Weighted-average discount rate 4.33% 4.14%
v3.23.2
Leases - Maturity of Lease Liabilities (Details)
$ in Millions
Jul. 01, 2023
USD ($)
Operating Leases  
Remainder of 2023 $ 36
2024 64
2025 56
2026 43
2027 38
Thereafter $ 244
v3.23.2
Derivative Instruments and Fair Value Measurements - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
 6 Months Ended
Aug. 16, 2023
Jul. 01, 2023
Dec. 31, 2022
May 31, 2022
Manufacturing group        
Assets and Liabilities Recorded at Fair Value on a Recurring Basis        
Forward exchange contracts maximum maturity period   3 years    
Manufacturing group | Foreign currency exchange contracts | Cash Flow Hedging        
Assets and Liabilities Recorded at Fair Value on a Recurring Basis        
Notional amounts   $ 567 $ 354  
Manufacturing group | Foreign currency exchange contracts | Cash Flow Hedging | Level 2        
Assets and Liabilities Recorded at Fair Value on a Recurring Basis        
Derivative asset, fair value   5    
Derivative liability, fair value   9 11  
Finance group | CME Term Secured Overnight Funding Rate | Floating Rate Junior Subordinated Notes | Junior Subordinated Debt | Subsequent Event        
Assets and Liabilities Recorded at Fair Value on a Recurring Basis        
Debt instrument description of variable rate basis after specified term at fixed rate three-month CME Term Secured Overnight Funding Rate      
Interest rate spread 1.99661%      
Finance group | Interest rate swap | Cash Flow Hedging        
Assets and Liabilities Recorded at Fair Value on a Recurring Basis        
Derivative asset, fair value   8 8  
Finance group | Interest Rate Swap, Maturing in August 2025 to August 2028 | Cash Flow Hedging        
Assets and Liabilities Recorded at Fair Value on a Recurring Basis        
Notional amounts   $ 185    
Derivative, weighted-average fixed interest rate   5.17%    
Finance group | Interest rate swap, maturing in August 2023 | Cash Flow Hedging        
Assets and Liabilities Recorded at Fair Value on a Recurring Basis        
Notional amounts     $ 272  
Finance group | Interest rate swap, maturing in June 2025 | Cash Flow Hedging        
Assets and Liabilities Recorded at Fair Value on a Recurring Basis        
Notional amounts       $ 25
Derivative, fixed interest rate       2.75%
v3.23.2
Derivative Instruments and Fair Value Measurements - Assets and Liabilities not Recorded at Fair Value (Details) - USD ($)
$ in Millions
Jul. 01, 2023
Dec. 31, 2022
Manufacturing group | Carrying Value    
Financial instruments not reflected at fair value    
Debt $ (3,174) $ (3,175)
Manufacturing group | Estimated Fair value    
Financial instruments not reflected at fair value    
Debt (2,904) (2,872)
Finance group | Carrying Value    
Financial instruments not reflected at fair value    
Debt (354) (375)
Finance receivables, excluding leases 405 390
Finance group | Estimated Fair value    
Financial instruments not reflected at fair value    
Debt (281) (294)
Finance receivables, excluding leases $ 396 $ 369
v3.23.2
Shareholders' Equity - Reconciliation of Shareholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Jul. 01, 2023
Jul. 02, 2022
Increase (Decrease) in Stockholders' Equity        
Balance at beginning of period $ 7,008 $ 6,917 $ 7,113 $ 6,815
Net income 263 217 454 410
Other comprehensive income (loss) 12 (76) 38 (66)
Share-based compensation activity 31 29 93 90
Dividends declared (4) (4) (8) (9)
Purchases of common stock, including excise tax (276) (282) (656) (439)
Balance at end of period 7,034 $ 6,801 7,034 $ 6,801
Excise taxes on common share repurchases $ 3   $ 6  
Dividends per share of common stock (in dollars per share) $ 0.02 $ 0.02 $ 0.04 $ 0.04
Common Stock        
Increase (Decrease) in Stockholders' Equity        
Balance at beginning of period $ 26 $ 28 $ 26 $ 28
Balance at end of period 26 28 26 28
Capital Surplus        
Increase (Decrease) in Stockholders' Equity        
Balance at beginning of period 1,942 1,924 1,880 1,863
Share-based compensation activity 31 29 93 90
Balance at end of period 1,973 1,953 1,973 1,953
Treasury Stock        
Increase (Decrease) in Stockholders' Equity        
Balance at beginning of period (464) (314) (84) (157)
Purchases of common stock, including excise tax (276) (282) (656) (439)
Balance at end of period (740) (596) (740) (596)
Retained Earnings        
Increase (Decrease) in Stockholders' Equity        
Balance at beginning of period 6,090 6,058 5,903 5,870
Net income 263 217 454 410
Dividends declared (4) (4) (8) (9)
Balance at end of period 6,349 6,271 6,349 6,271
Accumulated Other Comprehensive Loss        
Increase (Decrease) in Stockholders' Equity        
Balance at beginning of period (586) (779) (612) (789)
Other comprehensive income (loss) 12 (76) 38 (66)
Balance at end of period $ (574) $ (855) $ (574) $ (855)
v3.23.2
Shareholders' Equity - Earnings Per Share (Details) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Jul. 01, 2023
Jul. 02, 2022
Weighted-average shares outstanding for basic and diluted EPS        
Basic weighted-average shares outstanding (in shares) 200,701 214,587 202,768 215,799
Dilutive effect of stock options (in shares) 1,808 2,071 1,992 2,334
Diluted weighted-average shares outstanding (in shares) 202,509 216,658 204,760 218,133
Stock options        
Weighted-average shares outstanding for basic and diluted EPS        
Anti-dilutive effect of weighted average shares (in shares) 2,000 1,000 2,000 1,000
v3.23.2
Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period $ 7,113 $ 6,815
Other comprehensive income (loss) before reclassifications 35 (100)
Reclassified from Accumulated other comprehensive loss 3 34
Balance at end of period 7,034 6,801
Accumulated Other Comprehensive Loss    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period (612) (789)
Balance at end of period (574) (855)
Pension and Postretirement Benefits Adjustments    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period (516) (799)
Other comprehensive income (loss) before reclassifications 0 0
Reclassified from Accumulated other comprehensive loss 0 34
Balance at end of period (516) (765)
Foreign Currency Translation Adjustments    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period (94) 9
Other comprehensive income (loss) before reclassifications 32 (104)
Reclassified from Accumulated other comprehensive loss 0 0
Balance at end of period (62) (95)
Deferred Gains (Losses) on Hedge Contracts    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period (2) 1
Other comprehensive income (loss) before reclassifications 3 4
Reclassified from Accumulated other comprehensive loss 3 0
Balance at end of period $ 4 $ 5
v3.23.2
Shareholders' Equity - Before and After Tax Components of Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Jul. 01, 2023
Jul. 02, 2022
Pension and postretirement benefits adjustments, pre-tax:        
Amortization of net actuarial (gain) loss, pre-tax $ (1) $ 21 $ (3) $ 42
Amortization of prior service cost, pre-tax 2 2 4 4
Pension and postretirement benefits adjustments, net, pre-tax 1 23 1 46
Pension and postretirement benefits adjustments, tax:        
Amortization of net actuarial (gain) loss, tax (expense) benefit 0 (6) 1 (11)
Amortization of prior service cost, tax (expense) benefit (1) 0 (2) (1)
Pension and postretirement benefits adjustments, net, tax (expense) benefit (1) (6) (1) (12)
Pension and postretirement benefits adjustments, after-tax:        
Amortization of net actuarial (gain) loss, after-tax (1) 15 (2) 31
Amortization of prior period service cost, after-tax 1 2 2 3
Pension and postretirement benefits adjustments, net, after-tax 0 17 0 34
Foreign currency translation adjustments, pre-tax:        
Foreign currency translation adjustments, pre-tax 4 (90) 32 (104)
Foreign currency translation adjustments, tax:        
Foreign currency translation adjustments, tax (expense) benefit 0 0 0 0
Foreign currency translation adjustments, after-tax:        
Foreign currency translation adjustments, after-tax 4 (90) 32 (104)
Deferred gains (losses) on hedge contracts, pre-tax:        
Current deferrals, pre-tax 7 (5) 3 5
Reclassification adjustments, pre-tax 2 0 4 0
Deferred gains (losses) on hedge contracts, net, pre-tax 9 (5) 7 5
Deferred gains (losses) on hedge contracts, tax:        
Current deferrals, tax (expense) benefit (1) 2 0 (1)
Reclassification adjustments, tax (expense) benefit 0 0 (1) 0
Deferred gains (losses) on hedge contracts, net, tax (expense) benefit (1) 2 (1) (1)
Deferred gains (losses) on hedge contracts, after-tax:        
Current deferrals, after-tax 6 (3) 3 4
Reclassification adjustments, after-tax 2 0 3 0
Deferred gains (losses) on hedge contracts, net, after-tax 8 (3) 6 4
Other comprehensive income (loss), pre-tax 14 (72) 40 (53)
Other comprehensive income (loss), tax (expense) benefit (2) (4) (2) (13)
Other comprehensive income (loss) $ 12 $ (76) $ 38 $ (66)
v3.23.2
Segment Information - Narrative (Details)
 6 Months Ended
Jul. 01, 2023
segment
Operating and reportable business segments  
Number of operating business segments 6
Number of reportable business segments 6
v3.23.2
Segment Information - Revenue by Segment and Reconciliation of Segment Profit to Income Before Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Jul. 01, 2023
Jul. 02, 2022
Revenues        
Total revenues $ 3,424 $ 3,154 $ 6,448 $ 6,155
Reconciliation of segment profit to income from continuing operations before income taxes        
Interest expense, net for Manufacturing group (19) (31) (39) (63)
Non-service components of pension and postretirement income, net 59 60 118 120
Income before income taxes 329 263 556 495
Operating Segment        
Reconciliation of segment profit to income from continuing operations before income taxes        
Segment profit 352 281 611 558
Reconciling Items        
Reconciliation of segment profit to income from continuing operations before income taxes        
Corporate expenses and other, net (21) (20) (60) (72)
LIFO inventory provision (35) (17) (60) (29)
Intangible asset amortization (10) (13) (20) (26)
Non-service components of pension and postretirement income, net 59 60 118 120
Textron Aviation        
Revenues        
Total revenues 1,362 1,284 2,511 2,324
Bell        
Revenues        
Total revenues 701 687 1,322 1,521
Textron Systems        
Revenues        
Total revenues 306 293 612 566
Industrial        
Revenues        
Total revenues 1,026 871 1,958 1,709
Textron eAviation        
Revenues        
Total revenues 11 5 15 5
Finance        
Revenues        
Total revenues 18 14 30 30
Finance | Operating Segment        
Reconciliation of segment profit to income from continuing operations before income taxes        
Segment profit 12 10    
Manufacturing group | Reconciling Items        
Reconciliation of segment profit to income from continuing operations before income taxes        
Interest expense, net for Manufacturing group (16) (28) (33) (56)
Manufacturing group | Textron Aviation | Operating Segment        
Revenues        
Total revenues 1,362 1,284 2,511 2,324
Reconciliation of segment profit to income from continuing operations before income taxes        
Segment profit 171 149 296 259
Manufacturing group | Bell | Operating Segment        
Revenues        
Total revenues 701 687 1,322 1,521
Reconciliation of segment profit to income from continuing operations before income taxes        
Segment profit 65 54 125 145
Manufacturing group | Textron Systems | Operating Segment        
Revenues        
Total revenues 306 293 612 566
Reconciliation of segment profit to income from continuing operations before income taxes        
Segment profit 37 38 71 66
Manufacturing group | Industrial | Operating Segment        
Revenues        
Total revenues 1,026 871 1,958 1,709
Reconciliation of segment profit to income from continuing operations before income taxes        
Segment profit 79 37 120 76
Manufacturing group | Textron eAviation | Operating Segment        
Revenues        
Total revenues 11 5 15 5
Reconciliation of segment profit to income from continuing operations before income taxes        
Segment profit (12) (7) (21) (7)
Finance group        
Revenues        
Total revenues 18 14 30 30
Finance group | Finance | Operating Segment        
Revenues        
Total revenues $ 18 $ 14 30 30
Reconciliation of segment profit to income from continuing operations before income taxes        
Segment profit     $ 20 $ 19
v3.23.2
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Jul. 01, 2023
Jul. 02, 2022
Disaggregation of Revenue [Line Items]        
Revenues $ 3,424 $ 3,154 $ 6,448 $ 6,155
United States        
Disaggregation of Revenue [Line Items]        
Revenues 2,318 2,020 4,388 4,099
Europe        
Disaggregation of Revenue [Line Items]        
Revenues 417 480 722 826
Other international        
Disaggregation of Revenue [Line Items]        
Revenues 689 654 1,338 1,230
Commercial        
Disaggregation of Revenue [Line Items]        
Revenues 2,745 2,478 5,101 4,649
U.S. Government        
Disaggregation of Revenue [Line Items]        
Revenues 679 676 1,347 1,506
Textron Aviation        
Disaggregation of Revenue [Line Items]        
Revenues 1,362 1,284 2,511 2,324
Textron Aviation | United States        
Disaggregation of Revenue [Line Items]        
Revenues 933 776 1,769 1,508
Textron Aviation | Europe        
Disaggregation of Revenue [Line Items]        
Revenues 159 239 225 358
Textron Aviation | Other international        
Disaggregation of Revenue [Line Items]        
Revenues 270 269 517 458
Textron Aviation | Commercial        
Disaggregation of Revenue [Line Items]        
Revenues 1,321 1,253 2,428 2,274
Textron Aviation | U.S. Government        
Disaggregation of Revenue [Line Items]        
Revenues 41 31 83 50
Textron Aviation | Aircraft        
Disaggregation of Revenue [Line Items]        
Revenues 920 856 1,638 1,502
Textron Aviation | Aftermarket parts and services        
Disaggregation of Revenue [Line Items]        
Revenues 442 428 873 822
Bell        
Disaggregation of Revenue [Line Items]        
Revenues 701 687 1,322 1,521
Bell | United States        
Disaggregation of Revenue [Line Items]        
Revenues 534 504 994 1,174
Bell | Europe        
Disaggregation of Revenue [Line Items]        
Revenues 35 43 54 71
Bell | Other international        
Disaggregation of Revenue [Line Items]        
Revenues 132 140 274 276
Bell | Commercial        
Disaggregation of Revenue [Line Items]        
Revenues 301 279 533 513
Bell | U.S. Government        
Disaggregation of Revenue [Line Items]        
Revenues 400 408 789 1,008
Bell | Military aircraft and support programs        
Disaggregation of Revenue [Line Items]        
Revenues 395 402 780 999
Bell | Commercial helicopters, parts and services        
Disaggregation of Revenue [Line Items]        
Revenues 306 285 542 522
Textron Systems        
Disaggregation of Revenue [Line Items]        
Revenues 306 293 612 566
Textron Systems | United States        
Disaggregation of Revenue [Line Items]        
Revenues 274 268 549 514
Textron Systems | Europe        
Disaggregation of Revenue [Line Items]        
Revenues 17 10 31 18
Textron Systems | Other international        
Disaggregation of Revenue [Line Items]        
Revenues 15 15 32 34
Textron Systems | Commercial        
Disaggregation of Revenue [Line Items]        
Revenues 70 65 144 130
Textron Systems | U.S. Government        
Disaggregation of Revenue [Line Items]        
Revenues 236 228 468 436
Industrial        
Disaggregation of Revenue [Line Items]        
Revenues 1,026 871 1,958 1,709
Industrial | United States        
Disaggregation of Revenue [Line Items]        
Revenues 566 466 1,060 892
Industrial | Europe        
Disaggregation of Revenue [Line Items]        
Revenues 201 185 405 375
Industrial | Other international        
Disaggregation of Revenue [Line Items]        
Revenues 259 220 493 442
Industrial | Commercial        
Disaggregation of Revenue [Line Items]        
Revenues 1,024 862 1,951 1,697
Industrial | U.S. Government        
Disaggregation of Revenue [Line Items]        
Revenues 2 9 7 12
Industrial | Fuel systems and functional components        
Disaggregation of Revenue [Line Items]        
Revenues 523 435 1,011 899
Industrial | Specialized vehicles        
Disaggregation of Revenue [Line Items]        
Revenues 503 436 947 810
Textron eAviation        
Disaggregation of Revenue [Line Items]        
Revenues 11 5 15 5
Textron eAviation | United States        
Disaggregation of Revenue [Line Items]        
Revenues 7 1 8 1
Textron eAviation | Europe        
Disaggregation of Revenue [Line Items]        
Revenues 4 3 6 3
Textron eAviation | Other international        
Disaggregation of Revenue [Line Items]        
Revenues 0 1 1 1
Textron eAviation | Commercial        
Disaggregation of Revenue [Line Items]        
Revenues 11 5 15 5
Textron eAviation | U.S. Government        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Finance        
Disaggregation of Revenue [Line Items]        
Revenues 18 14 30 30
Finance | United States        
Disaggregation of Revenue [Line Items]        
Revenues 4 5 8 10
Finance | Europe        
Disaggregation of Revenue [Line Items]        
Revenues 1 0 1 1
Finance | Other international        
Disaggregation of Revenue [Line Items]        
Revenues 13 9 21 19
Finance | Commercial        
Disaggregation of Revenue [Line Items]        
Revenues 18 14 30 30
Finance | U.S. Government        
Disaggregation of Revenue [Line Items]        
Revenues $ 0 $ 0 $ 0 $ 0
v3.23.2
Revenues - Remaining Performance Obligations (Details)
$ in Billions
Jul. 01, 2023
USD ($)
Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligation $ 14.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-02  
Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligation, percent 80.00%
Remaining performance obligation, expected timing of satisfaction 18 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-29  
Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligation, percent 17.00%
Remaining performance obligation, expected timing of satisfaction 24 months
v3.23.2
Revenues - Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Jul. 01, 2023
Jul. 02, 2022
Dec. 31, 2022
Contract Assets and Liabilities          
Contract assets $ 501   $ 501   $ 680
Contract liabilities 1,700   1,700   $ 1,500
Revenue recognized included in contract liabilities $ 380 $ 293 $ 696 $ 499  
v3.23.2
Retirement Plans (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Jul. 01, 2023
Jul. 02, 2022
Pension Benefits        
Net periodic benefit income        
Service cost $ 16 $ 27 $ 33 $ 53
Interest cost 91 68 182 137
Expected return on plan assets (153) (153) (305) (306)
Amortization of net actuarial loss 1 22 1 44
Amortization of prior service cost 3 3 6 6
Net periodic benefit income (42) (33) (83) (66)
Pension Benefits | United States        
Net periodic benefit income        
Cost associated with the defined contribution component 2 3 6 7
Postretirement Benefits Other Than Pensions        
Net periodic benefit income        
Service cost 1 0 1 1
Interest cost 2 2 4 3
Amortization of net actuarial loss (2) (1) (4) (2)
Amortization of prior service cost (1) (1) (2) (2)
Net periodic benefit income $ 0 $ 0 $ (1) $ 0
v3.23.2
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2023
Jul. 02, 2022
Jul. 01, 2023
Jul. 02, 2022
Income Tax Disclosure [Abstract]        
Effective income tax rate 20.10% 17.10% 18.30% 17.00%
U.S. federal statutory income tax rate 21.00% 21.00% 21.00% 21.00%
Impact of withholding taxes due to the repatriation of cash related to a non-US jurisdiction.     $ 7