TEXTRON INC, 10-Q filed on 4/27/2023
Quarterly Report
v3.23.1
Cover - shares
 3 Months Ended
Apr. 01, 2023
Apr. 14, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Apr. 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, $0.125 par value  
Trading Symbol TXT  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   201,679,524
Entity Central Index Key 0000217346  
Current Fiscal Year End Date --12-30  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.23.1
Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Revenues    
Total revenues $ 3,024 $ 3,001
Costs, expenses and other    
Selling and administrative expense 305 305
Interest expense, net 20 32
Non-service components of pension and postretirement income, net (59) (60)
Total costs, expenses and other 2,797 2,769
Income before income taxes 227 232
Income tax expense 36 39
Net income $ 191 $ 193
Earnings per share    
Basic (in dollars per share) $ 0.93 $ 0.89
Diluted (in dollars per share) $ 0.92 $ 0.88
Manufacturing group    
Costs, expenses and other    
Net income $ 185 $ 185
Finance group    
Revenues    
Total revenues 12 16
Costs, expenses and other    
Net income 6 8
Product    
Costs, expenses and other    
Cost of products/services sold 2,176 2,069
Product | Manufacturing group    
Revenues    
Total revenues 2,550 2,448
Service    
Costs, expenses and other    
Cost of products/services sold 355 423
Service | Manufacturing group    
Revenues    
Total revenues $ 462 $ 537
v3.23.1
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Statement of Comprehensive Income [Abstract]    
Net income $ 191 $ 193
Other comprehensive income, net of tax    
Pension and postretirement benefits adjustments, net of reclassifications 0 17
Foreign currency translation adjustments 28 (14)
Deferred gains (losses) on hedge contracts, net of reclassifications (2) 7
Other comprehensive income 26 10
Comprehensive income $ 217 $ 203
v3.23.1
Consolidated Balance Sheets (Unaudited) - USD ($)
shares in Thousands, $ in Millions
Apr. 01, 2023
Dec. 31, 2022
Assets    
Inventories $ 3,934 $ 3,550
Finance receivables, net 555 563
Total assets 16,393 16,293
Liabilities    
Total liabilities 9,385 9,180
Shareholders’ equity    
Common stock 26 26
Capital surplus 1,942 1,880
Treasury stock (464) (84)
Retained earnings 6,090 5,903
Accumulated other comprehensive loss (586) (612)
Total shareholders’ equity 7,008 7,113
Total liabilities and shareholders’ equity $ 16,393 $ 16,293
Common shares outstanding (in shares) 201,980 206,161
Manufacturing group    
Assets    
Cash and equivalents $ 1,719 $ 1,963
Accounts receivable, net 928 855
Inventories 3,934 3,550
Other current assets 949 1,033
Total current assets 7,530 7,401
Property, plant and equipment, less accumulated depreciation and amortization of $5,168 and $5,084, respectively 2,505 2,523
Goodwill 2,289 2,283
Other assets 3,416 3,422
Total assets 15,740 15,629
Liabilities    
Current portion of long-term debt 357 7
Accounts payable 1,281 1,018
Other current liabilities 2,651 2,645
Total current liabilities 4,289 3,670
Other liabilities 1,829 1,879
Long-term debt 2,826 3,175
Total liabilities 8,944 8,724
Finance group    
Assets    
Cash and equivalents 80 72
Finance receivables, net 555 563
Other assets 18 29
Total assets 653 664
Liabilities    
Other liabilities 74 81
Debt 367 375
Total liabilities $ 441 $ 456
v3.23.1
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Apr. 01, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Accumulated depreciation and amortization $ 5,168 $ 5,084
v3.23.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Cash flows from operating activities    
Net income $ 191 $ 193
Non-cash items:    
Depreciation and amortization 92 93
Deferred income taxes (32) (52)
Other, net 39 36
Changes in assets and liabilities:    
Accounts receivable, net (69) 37
Inventories (380) (176)
Other assets 128 (4)
Accounts payable 261 38
Other liabilities (74) 26
Income taxes, net 50 71
Pension, net (51) (41)
Captive finance receivables, net 6 18
Other operating activities, net 2 2
Net cash provided by (used in) operating activities 163 241
Cash flows from investing activities    
Capital expenditures (62) (48)
Net proceeds from corporate-owned life insurance policies 20 2
Proceeds from sale of property, plant and equipment 0 18
Finance receivables repaid 12 13
Other investing activities, net 1 43
Net cash provided by (used in) investing activities (29) 28
Cash flows from financing activities    
Principal payments on long-term debt and nonrecourse debt (17) (121)
Purchases of Textron common stock (377) (157)
Dividends paid (4) (5)
Proceeds from options exercised 27 28
Other financing activities, net (5) (3)
Net cash used in financing activities (376) (258)
Effect of exchange rate changes on cash and equivalents 6 (2)
Net increase (decrease) in cash and equivalents (236) 9
Cash and equivalents at beginning of period 2,035 2,117
Cash and equivalents at end of period $ 1,799 $ 2,126
v3.23.1
Consolidated Statements of Cash Flows (Unaudited) - Manufacturing Group and Finance Group - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Cash flows from operating activities    
Net income $ 191 $ 193
Non-cash items:    
Depreciation and amortization 92 93
Deferred income taxes (32) (52)
Other, net 39 36
Changes in assets and liabilities:    
Accounts receivable, net (69) 37
Inventories (380) (176)
Other assets 128 (4)
Accounts payable 261 38
Other liabilities (74) 26
Income taxes, net 50 71
Pension, net (51) (41)
Other operating activities, net 2 2
Net cash provided by (used in) operating activities 163 241
Cash flows from investing activities    
Capital expenditures (62) (48)
Net proceeds from corporate-owned life insurance policies 20 2
Proceeds from sale of property, plant and equipment 0 18
Finance receivables repaid 12 13
Other investing activities, net 1 43
Net cash provided by (used in) investing activities (29) 28
Cash flows from financing activities    
Principal payments on long-term debt and nonrecourse debt (17) (121)
Purchases of Textron common stock (377) (157)
Dividends paid (4) (5)
Proceeds from options exercised 27 28
Other financing activities, net (5) (3)
Net cash used in financing activities (376) (258)
Effect of exchange rate changes on cash and equivalents 6 (2)
Net increase (decrease) in cash and equivalents (236) 9
Cash and equivalents at beginning of period 2,035 2,117
Cash and equivalents at end of period 1,799 2,126
Manufacturing group    
Cash flows from operating activities    
Net income 185 185
Non-cash items:    
Depreciation and amortization 92 93
Deferred income taxes (32) (45)
Other, net 41 37
Changes in assets and liabilities:    
Accounts receivable, net (69) 37
Inventories (380) (176)
Other assets 121 (4)
Accounts payable 261 38
Other liabilities (65) 37
Income taxes, net 48 62
Pension, net (51) (41)
Other operating activities, net 2 2
Net cash provided by (used in) operating activities 153 225
Cash flows from investing activities    
Capital expenditures (62) (48)
Net proceeds from corporate-owned life insurance policies 20 2
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 (42) (28)
Cash flows from financing activities    
Principal payments on long-term debt and nonrecourse debt (2) (2)
Purchases of Textron common stock (377) (157)
Dividends paid (4) (5)
Proceeds from options exercised 27 28
Other financing activities, net (5) (3)
Net cash used in financing activities (361) (139)
Effect of exchange rate changes on cash and equivalents 6 (2)
Net increase (decrease) in cash and equivalents (244) 56
Cash and equivalents at beginning of period 1,963 1,922
Cash and equivalents at end of period 1,719 1,978
Finance group    
Cash flows from operating activities    
Net income 6 8
Non-cash items:    
Depreciation and amortization 0 0
Deferred income taxes 0 (7)
Other, net (2) (1)
Changes in assets and liabilities:    
Accounts receivable, net 0 0
Inventories 0 0
Other assets 7 0
Accounts payable 0 0
Other liabilities (9) (11)
Income taxes, net 2 9
Pension, net 0 0
Other operating activities, net 0 0
Net cash provided by (used in) operating activities 4 (2)
Cash flows from investing activities    
Capital expenditures 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 35 40
Finance receivables originated (17) (9)
Other investing activities, net 1 43
Net cash provided by (used in) investing activities 19 74
Cash flows from financing activities    
Principal payments on long-term debt and nonrecourse debt (15) (119)
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 (15) (119)
Effect of exchange rate changes on cash and equivalents 0 0
Net increase (decrease) in cash and equivalents 8 (47)
Cash and equivalents at beginning of period 72 195
Cash and equivalents at end of period $ 80 $ 148
v3.23.1
Basis of Presentation
 3 Months Ended
Apr. 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 first quarter of 2023, our cumulative catch-up adjustments increased segment profit by $8 million and net income by $6 million, $0.03 per diluted share. In the first quarter of 2022, our cumulative catch-up adjustments decreased segment profit by $17 million and net income by $13 million, $0.06 per diluted share.
v3.23.1
Accounts Receivable and Finance Receivables
 3 Months Ended
Apr. 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)April 1,
2023		December 31,
2022
Commercial$824 $755 
U.S. Government contracts126 124 
950 879 
Allowance for credit losses(22)(24)
Total accounts receivable, net$928 $855 
Finance Receivables
Finance receivables are presented in the following table:
(In millions)April 1,
2023		December 31,
2022
Finance receivables$577 $587 
Allowance for credit losses(22)(24)
Total finance receivables, net$555 $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)April 1,
2023		December 31,
2022
Performing$512$515
Watchlist2626
Nonaccrual3946
Nonaccrual as a percentage of finance receivables6.76%7.84%
Current and less than 31 days past due$570$579
31-60 days past due57
61-90 days past due2—
Over 90 days past due—1
60+ days contractual delinquency as a percentage of finance receivables0.35%0.17%
At April 1, 2023, 33% 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, 65% were originated from 2018 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.
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)April 1,
2023		December 31,
2022
Finance receivables evaluated collectively$451 $450 
Finance receivables evaluated individually39 46 
Allowance for credit losses based on collective evaluation19 21 
Allowance for credit losses based on individual evaluation3 3 
Impaired finance receivables with specific allowance for credit losses$12 $15 
Impaired finance receivables with no specific allowance for credit losses27 31 
Unpaid principal balance of impaired finance receivables53 60 
Allowance for credit losses on impaired finance receivables3 3 
Average recorded investment of impaired finance receivables43 67 
v3.23.1
Inventories
 3 Months Ended
Apr. 01, 2023
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories are composed of the following:
(In millions)April 1,
2023		December 31,
2022
Finished goods$1,059 $991 
Work in process1,753 1,540 
Raw materials and components1,122 1,019 
Total inventories$3,934 $3,550 
v3.23.1
Warranty Liability
 3 Months Ended
Apr. 01, 2023
Payables and Accruals [Abstract]  
Warranty Liability Warranty Liability
Changes in our warranty liability are as follows:
Three Months Ended
(In millions)April 1,
2023		April 2,
2022
Beginning of period$149 $127 
Provision15 16 
Settlements(18)(19)
Adjustments*3 6 
End of period$149 $130 
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.
v3.23.1
Leases
 3 Months Ended
Apr. 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 first quarter of 2023 and 2022. Variable and short-term lease costs were not significant. Cash paid for operating leases totaled $17 million in both the first quarter of 2023 and 2022, and is classified in cash flows from operating activities. Noncash transactions totaled $15 million and $7 million in the first quarter 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)April 1,
2023		December 31,
2022
Other assets$375$372
Other current liabilities5554
Other liabilities328326
Weighted-average remaining lease term (in years)10.410.4
Weighted-average discount rate4.29%4.14%
At April 1, 2023, maturities of our operating lease liabilities on an undiscounted basis totaled $53 million for the remainder of 2023, $63 million for 2024, $55 million for 2025, $42 million for 2026, $37 million for 2027 and $237 million thereafter.
v3.23.1
Derivative Instruments and Fair Value Measurements
 3 Months Ended
Apr. 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 April 1, 2023 and December 31, 2022, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $623 million and $354 million, respectively. At April 1, 2023, the fair value amounts of our foreign currency exchange contracts were a $2 million asset and a $11 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 floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. At April 1, 2023 and December 31, 2022, we had a swap agreement for a notional amount of $272 million that matures in August 2023, and a swap agreement for a notional amount of $25 million that matures in June 2025. The fair value of these swap agreements was a $5 million asset at April 1, 2023 and an $8 million asset at December 31, 2022. The fair value of these swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2.
Assets and Liabilities Not Recorded at Fair Value
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
April 1, 2023December 31, 2022
CarryingEstimatedCarryingEstimated
(In millions)ValueFair ValueValueFair Value
Manufacturing group
Debt, excluding leases$(3,175)$(2,960)$(3,175)$(2,872)
Finance group
Finance receivables, excluding leases388 381 390 369 
Debt(367)(298)(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.
v3.23.1
Shareholders' Equity
 3 Months Ended
Apr. 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 April 1, 2023
Beginning of period$26 $1,880 $(84)$5,903 $(612)$7,113 
Net income— — — 191 — 191 
Other comprehensive income— — — — 26 26 
Share-based compensation activity— 62 — — — 62 
Dividends declared— — — (4)— (4)
Purchases of common stock, including excise tax*— — (380)— — (380)
End of period$26 $1,942 $(464)$6,090 $(586)$7,008 
Three months ended April 2, 2022
Beginning of period$28 $1,863 $(157)$5,870 $(789)$6,815 
Net income— — — 193 — 193 
Other comprehensive income— — — — 10 10 
Share-based compensation activity— 61 — — — 61 
Dividends declared— — — (5)— (5)
Purchases of common stock— — (157)— — (157)
End of period$28 $1,924 $(314)$6,058 $(779)$6,917 
*Includes $3 million accrued for the excise tax imposed on common share repurchases beginning on January 1, 2023 as part of the Inflation Reduction Act.
Dividends per share of common stock were $0.02 for both the first quarter of 2023 and 2022.
Earnings Per Share
We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period.  Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options.  
The weighted-average shares outstanding for basic and diluted EPS are as follows:
Three Months Ended
(In thousands)April 1,
2023		April 2,
2022
Basic weighted-average shares outstanding204,835 217,010 
Dilutive effect of stock options2,176 2,597 
Diluted weighted-average shares outstanding207,011 219,607 
Stock options to purchase 2.0 million and 1.0 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for the first quarter of 2023 and 2022, respectively, as their effect would have been anti-dilutive.
Accumulated Other Comprehensive Loss and Other Comprehensive Income
The components of Accumulated other comprehensive loss are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments		Foreign
Currency
Translation
Adjustments		Deferred
Gains (Losses)
on Hedge
Contracts		Accumulated
Other
Comprehensive
Loss
Balance at December 31, 2022$(516)$(94)$(2)$(612)
Other comprehensive income before reclassifications— 28 (3)25 
Reclassified from Accumulated other comprehensive loss— — 1 1 
Balance at April 1, 2023$(516)$(66)$(4)$(586)
Balance at January 1, 2022$(799)$9 $1 $(789)
Other comprehensive loss before reclassifications— (14)7 (7)
Reclassified from Accumulated other comprehensive loss17 — — 17 
Balance at April 2, 2022$(782)$(5)$8 $(779)
The before and after-tax components of Other comprehensive income are presented below:
April 1, 2023April 2, 2022
(In millions)Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount		Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial (gain) loss*$(2)$1 $(1)$21 $(5)$16 
Amortization of prior service cost*2 (1)1 2 (1)1 
Pension and postretirement benefits adjustments, net— — — 23 (6)17 
Foreign currency translation adjustments28 — 28 (14)— (14)
Deferred gains (losses) on hedge contracts:
Current deferrals(4)1 (3)10 (3)7 
Reclassification adjustments2 (1)1 — — — 
Deferred gains (losses) on hedge contracts, net(2)— (2)10 (3)7 
Total$26 $— $26 $19 $(9)$10 
*These components of other comprehensive income 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.
v3.23.1
Segment Information
 3 Months Ended
Apr. 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 Ended
(In millions)April 1,
2023		April 2,
2022
Revenues
Textron Aviation$1,149 $1,040 
Bell621 834 
Textron Systems306 273 
Industrial932 838 
Textron eAviation4 — 
Finance12 16 
Total revenues$3,024 $3,001 
Segment Profit
Textron Aviation$125 $110 
Bell60 91 
Textron Systems34 28 
Industrial41 39 
Textron eAviation(9)— 
Finance8 9 
Segment profit259 277 
Corporate expenses and other, net(39)(52)
Interest expense, net for Manufacturing group(17)(28)
LIFO inventory provision(25)(12)
Intangible asset amortization(10)(13)
Non-service components of pension and postretirement income, net59 60 
Income before income taxes$227 $232 
v3.23.1
Revenues
 3 Months Ended
Apr. 01, 2023
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Disaggregation of Revenues
Our revenues disaggregated by major product type are presented below:
Three Months Ended
(In millions)April 1,
2023		April 2,
2022
Aircraft$718 $646 
Aftermarket parts and services431 394 
Textron Aviation1,149 1,040 
Military aircraft and support programs385 597 
Commercial helicopters, parts and services236 237 
Bell621 834 
Textron Systems306 273 
Fuel systems and functional components488 464 
Specialized vehicles444 374 
Industrial932 838 
Textron eAviation4 — 
Finance12 16 
Total revenues$3,024 $3,001 
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 April 1, 2023
Customer type:
Commercial$1,107 $232 $74 $927 $4 $12 $2,356 
U.S. Government42 389 232 5 — — 668 
Total revenues$1,149 $621 $306 $932 $4 $12 $3,024 
Geographic location:
United States$836 $460 $275 $494 $1 $4 $2,070 
Europe66 19 14 204 2 — 305 
Other international247 142 17 234 1 8 649 
Total revenues$1,149 $621 $306 $932 $4 $12 $3,024 
Three months ended April 2, 2022
Customer type:
Commercial$1,021 $234 $65 $835 $— $16 $2,171 
U.S. Government19 600 208 3 — — 830 
Total revenues$1,040 $834 $273 $838 $— $16 $3,001 
Geographic location:
United States$732 $670 $246 $426 $— $5 $2,079 
Europe119 28 8 190 — 1 346 
Other international189 136 19 222 — 10 576 
Total revenues$1,040 $834 $273 $838 $— $16 $3,001 
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 April 1, 2023, we had $13.1 billion in remaining performance obligations of which we expect to recognize revenues of approximately 85% through 2024, an additional 12% 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 April 1, 2023 and December 31, 2022, contract assets totaled $621 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 $316 million and $206 million in the first quarter of 2023 and 2022, respectively, that were included in the contract liability balance at the beginning of each year.
v3.23.1
Share-Based Compensation
 3 Months Ended
Apr. 01, 2023
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
Under our share-based compensation plan, 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.  Compensation expense included in net income for our share-based compensation plan is as follows:
Three Months Ended
(In millions)April 1,
2023		April 2,
2022
Compensation expense$45 $34 
Income tax benefit(11)(8)
Total compensation expense included in net income$34 $26 
Compensation expense included stock option expense of $14 million and $12 million in the first quarter of 2023 and 2022, respectively. We typically grant stock appreciation rights to selected non-U.S. employees. At April 1, 2023, outstanding stock appreciation rights totaled 617,074 with a weighted-average exercise price of $54.62 and a weighted-average remaining contractual life of 6.4 years; these units had an intrinsic value of $10 million, compared to $14 million at April 2, 2022.
Stock Options
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:
March 1, 2023March 1, 2022
Fair value of options at grant date$23.83$19.95
Dividend yield0.1%0.1%
Expected volatility29.4%29.2%
Risk-free interest rate4.2%1.9%
Expected term (in years)4.84.8
The stock option activity during the first quarter of 2023 is provided below:
(Options in thousands)Number of
Options		Weighted-
Average
Exercise Price
Outstanding at December 31, 20228,310 $50.25 
Granted1,026 73.19 
Exercised(630)(42.84)
Forfeited or expired(60)(58.90)
Outstanding at April 1, 20238,646 $53.45 
Exercisable at April 1, 20236,263 $48.56 
At April 1, 2023, our outstanding options had an aggregate intrinsic value of $152 million and a weighted-average remaining contractual life of 6.2 years. Our exercisable options had an aggregate intrinsic value of $138 million and a weighted-average remaining contractual life of 5.1 years at April 1, 2023.  The total intrinsic value of options exercised during the first quarter of 2023 and 2022 was $19 million and $23 million, respectively.
Restricted Stock Units
We issue restricted stock units that include the right to receive dividend equivalents and are settled in both cash and stock. Beginning in 2020, new grants of restricted stock units will vest in full on the third anniversary of the grant date. Restricted stock units granted prior to 2020 vest one-third each in the third, fourth and fifth year following the year of the grant. 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 activity for restricted stock units payable in both stock and cash during the first quarter of 2023 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 December 31, 2022, nonvested525 $52.99 1,086 $53.26 
Granted103 73.17 245 73.18 
Vested(218)(46.66)(463)(45.92)
Forfeited— — (32)(56.94)
Outstanding at April 1, 2023, nonvested410 $61.41 836 $63.02 
The fair value of the restricted stock unit awards that vested and/or amounts paid under these awards is as follows:
Three Months Ended
(In millions)April 1,
2023		April 2,
2022
Fair value of awards vested$44 $24 
Cash paid34 17 
Performance Share Units
The activity for our performance share units during the first quarter of 2023 is as follows:
(Units in thousands)Number of
Units		Weighted-
Average Grant
Date Fair Value
Outstanding at December 31, 2022, nonvested427 $59.51 
Granted209 73.19 
Outstanding at April 1, 2023, nonvested636 $64.01 
Cash paid under these awards totaled $27 million and $15 million in the first quarter of 2023 and 2022, respectively.
v3.23.1
Retirement Plans
 3 Months Ended
Apr. 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 Ended
(In millions)April 1,
2023		April 2,
2022
Pension Benefits
Service cost$17 $26 
Interest cost91 69 
Expected return on plan assets(152)(153)
Amortization of net actuarial loss— 22 
Amortization of prior service cost3 3 
Net periodic benefit income*$(41)$(33)
Postretirement Benefits Other Than Pensions
Service cost$— $1 
Interest cost2 1 
Amortization of net actuarial gain(2)(1)
Amortization of prior service credit(1)(1)
Net periodic benefit income$(1)$— 
* Excludes the cost associated with the defined contribution component, included in certain of our U.S.-based defined benefit pension plans, that totaled $4 million for the first quarter of 2023 and 2022, respectively.
v3.23.1
Income Taxes
 3 Months Ended
Apr. 01, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesOur effective tax rate for the first quarter of 2023 and 2022 was 15.9% and 16.8%, respectively. In the first quarter 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. In the first quarter 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.
v3.23.1
Commitments and Contingencies
 3 Months Ended
Apr. 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.
v3.23.1
Basis of Presentation (Policies)
 3 Months Ended
Apr. 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.
v3.23.1
Accounts Receivable and Finance Receivables (Tables)
 3 Months Ended
Apr. 01, 2023
Receivables [Abstract]  
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)April 1,
2023		December 31,
2022
Commercial$824 $755 
U.S. Government contracts126 124 
950 879 
Allowance for credit losses(22)(24)
Total accounts receivable, net$928 $855 
Finance Receivables
Finance receivables are presented in the following table:
(In millions)April 1,
2023		December 31,
2022
Finance receivables$577 $587 
Allowance for credit losses(22)(24)
Total finance receivables, net$555 $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)April 1,
2023		December 31,
2022
Performing$512$515
Watchlist2626
Nonaccrual3946
Nonaccrual as a percentage of finance receivables6.76%7.84%
Current and less than 31 days past due$570$579
31-60 days past due57
61-90 days past due2—
Over 90 days past due—1
60+ days contractual delinquency as a percentage of finance receivables0.35%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)April 1,
2023		December 31,
2022
Performing$512$515
Watchlist2626
Nonaccrual3946
Nonaccrual as a percentage of finance receivables6.76%7.84%
Current and less than 31 days past due$570$579
31-60 days past due57
61-90 days past due2—
Over 90 days past due—1
60+ days contractual delinquency as a percentage of finance receivables0.35%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)April 1,
2023		December 31,
2022
Finance receivables evaluated collectively$451 $450 
Finance receivables evaluated individually39 46 
Allowance for credit losses based on collective evaluation19 21 
Allowance for credit losses based on individual evaluation3 3 
Impaired finance receivables with specific allowance for credit losses$12 $15 
Impaired finance receivables with no specific allowance for credit losses27 31 
Unpaid principal balance of impaired finance receivables53 60 
Allowance for credit losses on impaired finance receivables3 3 
Average recorded investment of impaired finance receivables43 67 
v3.23.1
Inventories (Tables)
 3 Months Ended
Apr. 01, 2023
Inventory Disclosure [Abstract]  
Inventories
Inventories are composed of the following:
(In millions)April 1,
2023		December 31,
2022
Finished goods$1,059 $991 
Work in process1,753 1,540 
Raw materials and components1,122 1,019 
Total inventories$3,934 $3,550 
v3.23.1
Warranty Liability (Tables)
 3 Months Ended
Apr. 01, 2023
Payables and Accruals [Abstract]  
Changes in Warranty Liability
Changes in our warranty liability are as follows:
Three Months Ended
(In millions)April 1,
2023		April 2,
2022
Beginning of period$149 $127 
Provision15 16 
Settlements(18)(19)
Adjustments*3 6 
End of period$149 $130 
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.
v3.23.1
Leases (Tables)
 3 Months Ended
Apr. 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)April 1,
2023		December 31,
2022
Other assets$375$372
Other current liabilities5554
Other liabilities328326
Weighted-average remaining lease term (in years)10.410.4
Weighted-average discount rate4.29%4.14%
v3.23.1
Derivative Instruments and Fair Value Measurements (Tables)
 3 Months Ended
Apr. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Carrying Value and Estimated and Fair Value of Financial Instruments
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
April 1, 2023December 31, 2022
CarryingEstimatedCarryingEstimated
(In millions)ValueFair ValueValueFair Value
Manufacturing group
Debt, excluding leases$(3,175)$(2,960)$(3,175)$(2,872)
Finance group
Finance receivables, excluding leases388 381 390 369 
Debt(367)(298)(375)(294)
v3.23.1
Shareholders' Equity (Tables)
 3 Months Ended
Apr. 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 April 1, 2023
Beginning of period$26 $1,880 $(84)$5,903 $(612)$7,113 
Net income— — — 191 — 191 
Other comprehensive income— — — — 26 26 
Share-based compensation activity— 62 — — — 62 
Dividends declared— — — (4)— (4)
Purchases of common stock, including excise tax*— — (380)— — (380)
End of period$26 $1,942 $(464)$6,090 $(586)$7,008 
Three months ended April 2, 2022
Beginning of period$28 $1,863 $(157)$5,870 $(789)$6,815 
Net income— — — 193 — 193 
Other comprehensive income— — — — 10 10 
Share-based compensation activity— 61 — — — 61 
Dividends declared— — — (5)— (5)
Purchases of common stock— — (157)— — (157)
End of period$28 $1,924 $(314)$6,058 $(779)$6,917 
*Includes $3 million accrued for the excise tax imposed on common share repurchases beginning on January 1, 2023 as part of the Inflation Reduction Act.
Schedule of Weighted-Average Shares Outstanding for Basic and Diluted EPS
The weighted-average shares outstanding for basic and diluted EPS are as follows:
Three Months Ended
(In thousands)April 1,
2023		April 2,
2022
Basic weighted-average shares outstanding204,835 217,010 
Dilutive effect of stock options2,176 2,597 
Diluted weighted-average shares outstanding207,011 219,607 
Schedule of Components of Accumulated Other Comprehensive Income (Loss)
The components of Accumulated other comprehensive loss are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments		Foreign
Currency
Translation
Adjustments		Deferred
Gains (Losses)
on Hedge
Contracts		Accumulated
Other
Comprehensive
Loss
Balance at December 31, 2022$(516)$(94)$(2)$(612)
Other comprehensive income before reclassifications— 28 (3)25 
Reclassified from Accumulated other comprehensive loss— — 1 1 
Balance at April 1, 2023$(516)$(66)$(4)$(586)
Balance at January 1, 2022$(799)$9 $1 $(789)
Other comprehensive loss before reclassifications— (14)7 (7)
Reclassified from Accumulated other comprehensive loss17 — — 17 
Balance at April 2, 2022$(782)$(5)$8 $(779)
Schedule of Before and After-Tax Components of Other Comprehensive Income (Loss)
The before and after-tax components of Other comprehensive income are presented below:
April 1, 2023April 2, 2022
(In millions)Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount		Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial (gain) loss*$(2)$1 $(1)$21 $(5)$16 
Amortization of prior service cost*2 (1)1 2 (1)1 
Pension and postretirement benefits adjustments, net— — — 23 (6)17 
Foreign currency translation adjustments28 — 28 (14)— (14)
Deferred gains (losses) on hedge contracts:
Current deferrals(4)1 (3)10 (3)7 
Reclassification adjustments2 (1)1 — — — 
Deferred gains (losses) on hedge contracts, net(2)— (2)10 (3)7 
Total$26 $— $26 $19 $(9)$10 
*These components of other comprehensive income 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.
v3.23.1
Segment Information (Tables)
 3 Months Ended
Apr. 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 Ended
(In millions)April 1,
2023		April 2,
2022
Revenues
Textron Aviation$1,149 $1,040 
Bell621 834 
Textron Systems306 273 
Industrial932 838 
Textron eAviation4 — 
Finance12 16 
Total revenues$3,024 $3,001 
Segment Profit
Textron Aviation$125 $110 
Bell60 91 
Textron Systems34 28 
Industrial41 39 
Textron eAviation(9)— 
Finance8 9 
Segment profit259 277 
Corporate expenses and other, net(39)(52)
Interest expense, net for Manufacturing group(17)(28)
LIFO inventory provision(25)(12)
Intangible asset amortization(10)(13)
Non-service components of pension and postretirement income, net59 60 
Income before income taxes$227 $232 
v3.23.1
Revenues (Tables)
 3 Months Ended
Apr. 01, 2023
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Our revenues disaggregated by major product type are presented below:
Three Months Ended
(In millions)April 1,
2023		April 2,
2022
Aircraft$718 $646 
Aftermarket parts and services431 394 
Textron Aviation1,149 1,040 
Military aircraft and support programs385 597 
Commercial helicopters, parts and services236 237 
Bell621 834 
Textron Systems306 273 
Fuel systems and functional components488 464 
Specialized vehicles444 374 
Industrial932 838 
Textron eAviation4 — 
Finance12 16 
Total revenues$3,024 $3,001 
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 April 1, 2023
Customer type:
Commercial$1,107 $232 $74 $927 $4 $12 $2,356 
U.S. Government42 389 232 5 — — 668 
Total revenues$1,149 $621 $306 $932 $4 $12 $3,024 
Geographic location:
United States$836 $460 $275 $494 $1 $4 $2,070 
Europe66 19 14 204 2 — 305 
Other international247 142 17 234 1 8 649 
Total revenues$1,149 $621 $306 $932 $4 $12 $3,024 
Three months ended April 2, 2022
Customer type:
Commercial$1,021 $234 $65 $835 $— $16 $2,171 
U.S. Government19 600 208 3 — — 830 
Total revenues$1,040 $834 $273 $838 $— $16 $3,001 
Geographic location:
United States$732 $670 $246 $426 $— $5 $2,079 
Europe119 28 8 190 — 1 346 
Other international189 136 19 222 — 10 576 
Total revenues$1,040 $834 $273 $838 $— $16 $3,001 
v3.23.1
Share-Based Compensation (Tables)
 3 Months Ended
Apr. 01, 2023
Share-Based Payment Arrangement [Abstract]  
Compensation Expense Included in Net Income Compensation expense included in net income for our share-based compensation plan is as follows:
Three Months Ended
(In millions)April 1,
2023		April 2,
2022
Compensation expense$45 $34 
Income tax benefit(11)(8)
Total compensation expense included in net income$34 $26 
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:
March 1, 2023March 1, 2022
Fair value of options at grant date$23.83$19.95
Dividend yield0.1%0.1%
Expected volatility29.4%29.2%
Risk-free interest rate4.2%1.9%
Expected term (in years)4.84.8
Stock Option Activity
The stock option activity during the first quarter of 2023 is provided below:
(Options in thousands)Number of
Options		Weighted-
Average
Exercise Price
Outstanding at December 31, 20228,310 $50.25 
Granted1,026 73.19 
Exercised(630)(42.84)
Forfeited or expired(60)(58.90)
Outstanding at April 1, 20238,646 $53.45 
Exercisable at April 1, 20236,263 $48.56 
Restricted Stock Units Activity
The activity for restricted stock units payable in both stock and cash during the first quarter of 2023 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 December 31, 2022, nonvested525 $52.99 1,086 $53.26 
Granted103 73.17 245 73.18 
Vested(218)(46.66)(463)(45.92)
Forfeited— — (32)(56.94)
Outstanding at April 1, 2023, nonvested410 $61.41 836 $63.02 
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:
Three Months Ended
(In millions)April 1,
2023		April 2,
2022
Fair value of awards vested$44 $24 
Cash paid34 17 
Performance Share Units Activity
The activity for our performance share units during the first quarter of 2023 is as follows:
(Units in thousands)Number of
Units		Weighted-
Average Grant
Date Fair Value
Outstanding at December 31, 2022, nonvested427 $59.51 
Granted209 73.19 
Outstanding at April 1, 2023, nonvested636 $64.01 
v3.23.1
Retirement Plans (Tables)
 3 Months Ended
Apr. 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 Ended
(In millions)April 1,
2023		April 2,
2022
Pension Benefits
Service cost$17 $26 
Interest cost91 69 
Expected return on plan assets(152)(153)
Amortization of net actuarial loss— 22 
Amortization of prior service cost3 3 
Net periodic benefit income*$(41)$(33)
Postretirement Benefits Other Than Pensions
Service cost$— $1 
Interest cost2 1 
Amortization of net actuarial gain(2)(1)
Amortization of prior service credit(1)(1)
Net periodic benefit income$(1)$— 
* Excludes the cost associated with the defined contribution component, included in certain of our U.S.-based defined benefit pension plans, that totaled $4 million for the first quarter of 2023 and 2022, respectively.
v3.23.1
Basis of Presentation (Details)
$ / shares in Units, $ in Millions
 3 Months Ended
Apr. 01, 2023
USD ($)
borrowing_group
$ / shares
Apr. 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 (decease) in segment profit $ 8 $ (17)
Change in accounting estimate financial effect, increase (decrease) in net income $ 6 $ (13)
Change in accounting estimate financial effect increase (decrease) in earnings per diluted share (in dollars per share) | $ / shares $ 0.03 $ (0.06)
v3.23.1
Accounts Receivable and Finance Receivables - Accounts Receivable (Details) - Manufacturing group - USD ($)
$ in Millions
Apr. 01, 2023
Dec. 31, 2022
Accounts Receivable    
Accounts receivable, gross $ 950 $ 879
Allowance for credit losses (22) (24)
Total accounts receivable, net 928 855
Commercial    
Accounts Receivable    
Accounts receivable, gross 824 755
U.S. Government    
Accounts Receivable    
Accounts receivable, gross $ 126 $ 124
v3.23.1
Accounts Receivable and Finance Receivables - Finance Receivables (Details) - USD ($)
$ in Millions
Apr. 01, 2023
Dec. 31, 2022
Finance Receivables    
Finance receivables $ 577 $ 587
Allowance for credit losses (22) (24)
Total finance receivables, net $ 555 $ 563
v3.23.1
Accounts Receivable and Finance Receivables - Finance Receivable Portfolio Quality (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Dec. 31, 2022
Finance Receivable Portfolio Quality    
Finance receivables $ 577 $ 587
60+ days contractual delinquency as a percentage of finance receivables 0.35% 0.17%
Current and less than 31 days past due    
Finance Receivable Portfolio Quality    
Finance receivables $ 570 $ 579
31-60 days past due    
Finance Receivable Portfolio Quality    
Finance receivables 5 7
61-90 days past due    
Finance Receivable Portfolio Quality    
Finance receivables 2 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 33.00%  
Financing receivable percentage originating from 2018 to 2020 30.00%  
Nonperforming    
Finance Receivable Portfolio Quality    
Nonaccrual as a percentage of finance receivables 6.76% 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 $ 39 46
Financing receivable percentage originating from 2018 to 2020 65.00%  
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 $ 512 $ 515
v3.23.1
Accounts Receivable and Finance Receivables - Finance Receivables and Allowance for Losses Based on the Results of Impairment Evaluation (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Apr. 01, 2023
Dec. 31, 2022
Receivables [Abstract]    
Finance receivables evaluated collectively $ 451 $ 450
Finance receivables evaluated individually 39 46
Allowance for credit losses based on collective evaluation 19 21
Allowance for credit losses based on individual evaluation 3 3
Impaired finance receivables with specific allowance for credit losses 12 15
Impaired finance receivables with no specific allowance for credit losses 27 31
Unpaid principal balance of impaired finance receivables 53 60
Allowance for credit losses on impaired finance receivables 3 3
Average recorded investment of impaired finance receivables $ 43 $ 67
v3.23.1
Inventories (Details) - USD ($)
$ in Millions
Apr. 01, 2023
Dec. 31, 2022
Inventories    
Finished goods $ 1,059 $ 991
Work in process 1,753 1,540
Raw materials and components 1,122 1,019
Total inventories $ 3,934 $ 3,550
v3.23.1
Warranty Liability (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Changes in warranty liability    
Beginning of period $ 149 $ 127
Provision 15 16
Settlements (18) (19)
Adjustments 3 6
End of period $ 149 $ 130
v3.23.1
Leases - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Leases [Abstract]    
Remaining lease terms 26 years  
Operating lease - option to extend true  
Operating lease - option to extend the lease, term 25 years  
Operating lease cost $ 17 $ 17
Cash paid for operating lease liabilities 17 17
Noncash lease transactions $ 15 $ 7
v3.23.1
Leases - Balance Sheet and Other Information (Details) - USD ($)
$ in Millions
Apr. 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 $ 375 $ 372
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Other current liabilities $ 55 $ 54
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Other liabilities $ 328 $ 326
Weighted-average remaining lease term (in years)    
Weighted-average remaining lease term (in years) 10 years 4 months 24 days 10 years 4 months 24 days
Weighted-average discount rate    
Weighted-average discount rate 4.29% 4.14%
v3.23.1
Leases - Maturity of Lease Liabilities (Details)
$ in Millions
Apr. 01, 2023
USD ($)
Operating Leases  
Remainder of 2023 $ 53
2024 63
2025 55
2026 42
2027 37
Thereafter $ 237
v3.23.1
Derivative Instruments and Fair Value Measurements - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Dec. 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 $ 623 $ 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 2  
Derivative liability, fair value 11 11
Finance group | Interest rate swap | Cash Flow Hedging    
Assets and Liabilities Recorded at Fair Value on a Recurring Basis    
Derivative asset, fair value 5 8
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 272 272
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 $ 25
v3.23.1
Derivative Instruments and Fair Value Measurements - Assets and Liabilities not Recorded at Fair Value (Details) - USD ($)
$ in Millions
Apr. 01, 2023
Dec. 31, 2022
Manufacturing group | Carrying Value    
Financial instruments not reflected at fair value    
Debt $ (3,175) $ (3,175)
Manufacturing group | Estimated Fair value    
Financial instruments not reflected at fair value    
Debt (2,960) (2,872)
Finance group | Carrying Value    
Financial instruments not reflected at fair value    
Debt (367) (375)
Finance receivables, excluding leases 388 390
Finance group | Estimated Fair value    
Financial instruments not reflected at fair value    
Debt (298) (294)
Finance receivables, excluding leases $ 381 $ 369
v3.23.1
Shareholders' Equity - Reconciliation of Shareholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period $ 7,113 $ 6,815
Net income 191 193
Other comprehensive income 26 10
Share-based compensation activity 62 61
Dividends declared (4) (5)
Purchases of common stock, including excise tax (380) (157)
Balance at end of period 7,008 $ 6,917
Excise taxes on common share repurchases $ 3  
Dividends per share of common stock (in dollars per share) $ 0.02 $ 0.02
Common Stock    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period $ 26 $ 28
Balance at end of period 26 28
Capital Surplus    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period 1,880 1,863
Share-based compensation activity 62 61
Balance at end of period 1,942 1,924
Treasury Stock    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period (84) (157)
Purchases of common stock, including excise tax (380) (157)
Balance at end of period (464) (314)
Retained Earnings    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period 5,903 5,870
Net income 191 193
Dividends declared (4) (5)
Balance at end of period 6,090 6,058
Accumulated Other Comprehensive Loss    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period (612) (789)
Other comprehensive income 26 10
Balance at end of period $ (586) $ (779)
v3.23.1
Shareholders' Equity - Earnings Per Share (Details) - shares
shares in Thousands
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Weighted-average shares outstanding for basic and diluted EPS    
Basic weighted-average shares outstanding (in shares) 204,835 217,010
Dilutive effect of stock options (in shares) 2,176 2,597
Diluted weighted-average shares outstanding (in shares) 207,011 219,607
Stock options    
Weighted-average shares outstanding for basic and diluted EPS    
Anti-dilutive effect of weighted average shares (in shares) 2,000 1,000
v3.23.1
Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 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 25 (7)
Reclassified from Accumulated other comprehensive loss 1 17
Balance at end of period 7,008 6,917
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 (586) (779)
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 17
Balance at end of period (516) (782)
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 28 (14)
Reclassified from Accumulated other comprehensive loss 0 0
Balance at end of period (66) (5)
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) 7
Reclassified from Accumulated other comprehensive loss 1 0
Balance at end of period $ (4) $ 8
v3.23.1
Shareholders' Equity - Before and After Tax Components of Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Pension and postretirement benefits adjustments, pre-tax:    
Amortization of net actuarial (gain) loss, pre-tax $ (2) $ 21
Amortization of prior service cost, pre-tax 2 2
Pension and postretirement benefits adjustments, net, pre-tax 0 23
Pension and postretirement benefits adjustments, tax:    
Amortization of net actuarial (gain) loss, tax (expense) benefit 1 (5)
Amortization of prior service cost, tax (expense) benefit (1) (1)
Pension and postretirement benefits adjustments, net, tax (expense) benefit 0 (6)
Pension and postretirement benefits adjustments, after-tax:    
Amortization of net actuarial (gain) loss, after-tax (1) 16
Amortization of prior period service cost, after-tax 1 1
Pension and postretirement benefits adjustments, net, after-tax 0 17
Foreign currency translation adjustments, pre-tax:    
Foreign currency translation adjustments 28 (14)
Foreign currency translation adjustments, tax:    
Foreign currency translation adjustments 0 0
Foreign currency translation adjustments, after-tax:    
Foreign currency translation adjustments 28 (14)
Deferred gains (losses) on hedge contracts, pre-tax:    
Current deferrals, pre-tax (4) 10
Reclassification adjustments, pre-tax 2 0
Deferred gains (losses) on hedge contracts, net, pre-tax (2) 10
Deferred gains (losses) on hedge contracts, tax:    
Current deferrals, tax (expense) benefit 1 (3)
Reclassification adjustments, tax (expense) benefit (1) 0
Deferred gains (losses) on hedge contracts, net, tax (expense) benefit 0 (3)
Deferred gains (losses) on hedge contracts, after-tax:    
Current deferrals, after-tax (3) 7
Reclassification adjustments, after tax 1 0
Deferred gains (losses) on hedge contracts, net, after-tax (2) 7
Other comprehensive income (loss), pre-tax 26 19
Other comprehensive income (loss), tax (expense) benefit 0 (9)
Other comprehensive income $ 26 $ 10
v3.23.1
Segment Information - Narrative (Details)
 3 Months Ended
Apr. 01, 2023
segment
Operating and reportable business segments  
Number of operating business segments 6
Number of reportable business segments 6
v3.23.1
Segment Information - Revenue by Segment and Reconciliation of Segment Profit to Income Before Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Revenues    
Total revenues $ 3,024 $ 3,001
Reconciliation of segment profit to income from continuing operations before income taxes    
Interest expense, net for Manufacturing group (20) (32)
Non-service components of pension and postretirement income, net 59 60
Income before income taxes 227 232
Operating Segment    
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 259 277
Reconciling Items    
Reconciliation of segment profit to income from continuing operations before income taxes    
Corporate expenses and other, net (39) (52)
LIFO inventory provision (25) (12)
Intangible asset amortization (10) (13)
Non-service components of pension and postretirement income, net 59 60
Textron Aviation    
Revenues    
Total revenues 1,149 1,040
Bell    
Revenues    
Total revenues 621 834
Textron Systems    
Revenues    
Total revenues 306 273
Industrial    
Revenues    
Total revenues 932 838
Textron eAviation    
Revenues    
Total revenues 4 0
Finance    
Revenues    
Total revenues 12 16
Manufacturing group | Reconciling Items    
Reconciliation of segment profit to income from continuing operations before income taxes    
Interest expense, net for Manufacturing group (17) (28)
Manufacturing group | Textron Aviation | Operating Segment    
Revenues    
Total revenues 1,149 1,040
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 125 110
Manufacturing group | Bell | Operating Segment    
Revenues    
Total revenues 621 834
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 60 91
Manufacturing group | Textron Systems | Operating Segment    
Revenues    
Total revenues 306 273
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 34 28
Manufacturing group | Industrial | Operating Segment    
Revenues    
Total revenues 932 838
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 41 39
Manufacturing group | Textron eAviation | Operating Segment    
Revenues    
Total revenues 4 0
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit (9) 0
Finance group    
Revenues    
Total revenues 12 16
Finance group | Finance | Operating Segment    
Revenues    
Total revenues 12 16
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit $ 8 $ 9
v3.23.1
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Disaggregation of Revenue [Line Items]    
Revenues $ 3,024 $ 3,001
United States    
Disaggregation of Revenue [Line Items]    
Revenues 2,070 2,079
Europe    
Disaggregation of Revenue [Line Items]    
Revenues 305 346
Other international    
Disaggregation of Revenue [Line Items]    
Revenues 649 576
Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 2,356 2,171
U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues 668 830
Textron Aviation    
Disaggregation of Revenue [Line Items]    
Revenues 1,149 1,040
Textron Aviation | United States    
Disaggregation of Revenue [Line Items]    
Revenues 836 732
Textron Aviation | Europe    
Disaggregation of Revenue [Line Items]    
Revenues 66 119
Textron Aviation | Other international    
Disaggregation of Revenue [Line Items]    
Revenues 247 189
Textron Aviation | Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 1,107 1,021
Textron Aviation | U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues 42 19
Textron Aviation | Aircraft    
Disaggregation of Revenue [Line Items]    
Revenues 718 646
Textron Aviation | Aftermarket parts and services    
Disaggregation of Revenue [Line Items]    
Revenues 431 394
Bell    
Disaggregation of Revenue [Line Items]    
Revenues 621 834
Bell | United States    
Disaggregation of Revenue [Line Items]    
Revenues 460 670
Bell | Europe    
Disaggregation of Revenue [Line Items]    
Revenues 19 28
Bell | Other international    
Disaggregation of Revenue [Line Items]    
Revenues 142 136
Bell | Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 232 234
Bell | U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues 389 600
Bell | Military aircraft and support programs    
Disaggregation of Revenue [Line Items]    
Revenues 385 597
Bell | Commercial helicopters, parts and services    
Disaggregation of Revenue [Line Items]    
Revenues 236 237
Textron Systems    
Disaggregation of Revenue [Line Items]    
Revenues 306 273
Textron Systems | United States    
Disaggregation of Revenue [Line Items]    
Revenues 275 246
Textron Systems | Europe    
Disaggregation of Revenue [Line Items]    
Revenues 14 8
Textron Systems | Other international    
Disaggregation of Revenue [Line Items]    
Revenues 17 19
Textron Systems | Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 74 65
Textron Systems | U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues 232 208
Industrial    
Disaggregation of Revenue [Line Items]    
Revenues 932 838
Industrial | United States    
Disaggregation of Revenue [Line Items]    
Revenues 494 426
Industrial | Europe    
Disaggregation of Revenue [Line Items]    
Revenues 204 190
Industrial | Other international    
Disaggregation of Revenue [Line Items]    
Revenues 234 222
Industrial | Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 927 835
Industrial | U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues 5 3
Industrial | Fuel systems and functional components    
Disaggregation of Revenue [Line Items]    
Revenues 488 464
Industrial | Specialized vehicles    
Disaggregation of Revenue [Line Items]    
Revenues 444 374
Textron eAviation    
Disaggregation of Revenue [Line Items]    
Revenues 4 0
Textron eAviation | United States    
Disaggregation of Revenue [Line Items]    
Revenues 1 0
Textron eAviation | Europe    
Disaggregation of Revenue [Line Items]    
Revenues 2 0
Textron eAviation | Other international    
Disaggregation of Revenue [Line Items]    
Revenues 1 0
Textron eAviation | Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 4 0
Textron eAviation | U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues 0 0
Finance    
Disaggregation of Revenue [Line Items]    
Revenues 12 16
Finance | United States    
Disaggregation of Revenue [Line Items]    
Revenues 4 5
Finance | Europe    
Disaggregation of Revenue [Line Items]    
Revenues 0 1
Finance | Other international    
Disaggregation of Revenue [Line Items]    
Revenues 8 10
Finance | Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 12 16
Finance | U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues $ 0 $ 0
v3.23.1
Revenues - Remaining Performance Obligations (Details)
$ in Billions
Apr. 01, 2023
USD ($)
Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligation $ 13.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-02  
Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligation, percent 85.00%
Remaining performance obligation, expected timing of satisfaction 21 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 12.00%
Remaining performance obligation, expected timing of satisfaction 24 months
v3.23.1
Revenues - Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Dec. 31, 2022
Contract Assets and Liabilities      
Contract assets $ 621   $ 680
Contract liabilities 1,700   $ 1,500
Revenue recognized included in contract liabilities $ 316 $ 206  
v3.23.1
Share-Based Compensation - Compensation Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Compensation expense $ 45 $ 34
Income tax benefit (11) (8)
Total compensation expense included in net income 34 26
Stock options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Compensation expense $ 14 $ 12
v3.23.1
Share-Based Compensation - Stock Appreciation Rights (Details) - Stock appreciation rights - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Awards outstanding (in shares) 617,074  
Weighted-average exercise price (in dollars per share) $ 54.62  
Weighted-average remaining contractual life 6 years 4 months 24 days  
Intrinsic value $ 10 $ 14
v3.23.1
Share-Based Compensation - Stock Options (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended
Mar. 01, 2023
Mar. 01, 2022
Apr. 01, 2023
Apr. 02, 2022
Additional general disclosures        
Aggregate intrinsic value of outstanding options     $ 152  
Weighted-average remaining contractual life of outstanding stock options     6 years 2 months 12 days  
Aggregate intrinsic value of exercisable options     $ 138  
Weighted-average remaining contractual life of exercisable options     5 years 1 month 6 days  
Total intrinsic value of options exercised     $ 19 $ 23
Stock options        
Share-Based Compensation        
Maximum term of options     10 years  
Performance share units 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) $ 23.83 $ 19.95    
Dividend yield 0.10% 0.10%    
Expected volatility 29.40% 29.20%    
Risk-free interest rate 4.20% 1.90%    
Expected term (in years) 4 years 9 months 18 days 4 years 9 months 18 days    
Number of Options        
Outstanding at beginning of period (in shares)     8,310  
Granted (in shares)     1,026  
Exercised (in shares)     (630)  
Forfeited or expired (in shares)     (60)  
Outstanding at end of period (in shares)     8,646  
Exercisable at end of period (in shares)     6,263  
Weighted-Average Exercise Price        
Outstanding at beginning of period (in dollars per share)     $ 50.25  
Granted (in dollars per share)     73.19  
Exercised (in dollars per share)     (42.84)  
Forfeited or expired (in dollars per share)     (58.90)  
Outstanding at end of period (in dollars per share)     53.45  
Exercisable at end of period (in dollars per share)     $ 48.56  
v3.23.1
Share-Based Compensation - Restricted Stock Units (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Restricted Stock Units    
Fair value    
Fair value of awards vested $ 44 $ 24
Cash paid $ 34 $ 17
Units Payable in Stock    
Number of Units    
Outstanding at beginning of period, nonvested (in shares) 525  
Granted (in shares) 103  
Vested (in shares) (218)  
Forfeited (in shares) 0  
Outstanding at end of period, nonvested (in shares) 410  
Weighted- Average Grant Date Fair Value    
Outstanding at beginning of period, nonvested (in dollars per share) $ 52.99  
Granted (in dollars per share) 73.17  
Vested (in dollars per share) (46.66)  
Forfeited (in dollars per share) 0  
Outstanding at end of period, nonvested (in dollars per share) $ 61.41  
Units Payable in Cash    
Number of Units    
Outstanding at beginning of period, nonvested (in shares) 1,086  
Granted (in shares) 245  
Vested (in shares) (463)  
Forfeited (in shares) (32)  
Outstanding at end of period, nonvested (in shares) 836  
Weighted- Average Grant Date Fair Value    
Outstanding at beginning of period, nonvested (in dollars per share) $ 53.26  
Granted (in dollars per share) 73.18  
Vested (in dollars per share) (45.92)  
Forfeited (in dollars per share) (56.94)  
Outstanding at end of period, nonvested (in dollars per share) $ 63.02  
v3.23.1
Share-Based Compensation - Performance Share Units (Details) - Performance Share Units - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Number of Units    
Outstanding at beginning of period, nonvested (in shares) 427  
Granted (in shares) 209  
Outstanding at end of period, nonvested (in shares) 636  
Weighted- Average Grant Date Fair Value    
Outstanding at beginning of period, nonvested (in dollars per share) $ 59.51  
Granted (in dollars per share) 73.19  
Outstanding at end of period, nonvested (in dollars per share) $ 64.01  
Fair value    
Cash paid $ 27 $ 15
v3.23.1
Retirement Plans (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Pension Benefits    
Net periodic benefit income    
Service cost $ 17 $ 26
Interest cost 91 69
Expected return on plan assets (152) (153)
Amortization of net actuarial loss 0 22
Amortization of prior service cost 3 3
Net periodic benefit income (41) (33)
Pension Benefits | United States    
Net periodic benefit income    
Cost associated with the defined contribution component 4 4
Postretirement Benefits Other Than Pensions    
Net periodic benefit income    
Service cost 0 1
Interest cost 2 1
Amortization of net actuarial loss (2) (1)
Amortization of prior service cost (1) (1)
Net periodic benefit income $ (1) $ 0
v3.23.1
Income Taxes (Details)
 3 Months Ended
Apr. 01, 2023
Apr. 02, 2022
Income Tax Disclosure [Abstract]    
Effective income tax rate 15.90% 16.80%
U.S. federal statutory income tax rate 21.00% 21.00%