TEXTRON INC, 10-Q filed on 4/25/2024
Quarterly Report
v3.24.1.u1
Cover - shares
 3 Months Ended
Mar. 30, 2024
Apr. 12, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 30, 2024  
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, $0.125 par value  
Trading Symbol TXT  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   190,698,993
Entity Central Index Key 0000217346  
Current Fiscal Year End Date --12-28  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Amendment Flag false  
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Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Revenues    
Total revenues $ 3,135 $ 3,024
Costs, expenses and other    
Selling and administrative expense 316 305
Interest expense, net 20 20
Special charges 14 0
Non-service components of pension and postretirement income, net (66) (59)
Total costs, expenses and other 2,898 2,797
Income before income taxes 237 227
Income tax expense 36 36
Net income $ 201 $ 191
Earnings per share    
Basic (in dollars per share) $ 1.04 $ 0.93
Diluted (in dollars per share) $ 1.03 $ 0.92
Manufacturing group    
Costs, expenses and other    
Net income $ 187 $ 185
Finance group    
Revenues    
Total revenues 15 12
Costs, expenses and other    
Net income 14 6
Product    
Costs, expenses and other    
Cost of products/services sold 2,069 2,176
Product | Manufacturing group    
Revenues    
Total revenues 2,432 2,550
Service    
Costs, expenses and other    
Cost of products/services sold 545 355
Service | Manufacturing group    
Revenues    
Total revenues $ 688 $ 462
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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Statement of Comprehensive Income [Abstract]    
Net income $ 201 $ 191
Other comprehensive income (loss), net of tax    
Pension and postretirement benefits adjustments, net of reclassifications 1 0
Foreign currency translation adjustments (33) 28
Deferred losses on hedge contracts, net of reclassifications (5) (2)
Other comprehensive income (loss) (37) 26
Comprehensive income $ 164 $ 217
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Consolidated Balance Sheets (Unaudited) - USD ($)
shares in Thousands, $ in Millions
Mar. 30, 2024
Dec. 30, 2023
Assets    
Inventories $ 4,267 $ 3,914
Finance receivables, net 582 585
Total assets 16,414 16,856
Liabilities    
Total liabilities 9,483 9,869
Shareholders’ equity    
Common stock 25 24
Capital surplus 2,012 1,910
Treasury stock (484) (165)
Retained earnings 6,059 5,862
Accumulated other comprehensive loss (681) (644)
Total shareholders’ equity 6,931 6,987
Total liabilities and shareholders’ equity $ 16,414 $ 16,856
Common shares outstanding (in shares) 191,101 192,898
Manufacturing group    
Assets    
Cash and equivalents $ 1,388 $ 2,121
Accounts receivable, net 894 868
Inventories 4,267 3,914
Other current assets 755 857
Total current assets 7,304 7,760
Property, plant and equipment, less accumulated depreciation and amortization of $5,286 and $5,247, respectively 2,451 2,477
Goodwill 2,288 2,295
Other assets 3,692 3,663
Total assets 15,735 16,195
Liabilities    
Current portion of long-term debt 357 357
Accounts payable 1,136 1,023
Other current liabilities 2,902 2,998
Total current liabilities 4,395 4,378
Other liabilities 1,850 1,904
Long-term debt 2,818 3,169
Total liabilities 9,063 9,451
Finance group    
Assets    
Cash and equivalents 78 60
Finance receivables, net 582 585
Other assets 19 16
Total assets 679 661
Liabilities    
Other liabilities 78 70
Debt 342 348
Total liabilities $ 420 $ 418
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Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Mar. 30, 2024
Dec. 30, 2023
Statement of Financial Position [Abstract]    
Accumulated depreciation and amortization $ 5,286 $ 5,247
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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Cash flows from operating activities    
Net income $ 201 $ 191
Non-cash items:    
Depreciation and amortization 88 92
Deferred income taxes (16) (32)
Other, net 33 39
Changes in assets and liabilities:    
Accounts receivable, net (34) (69)
Inventories (350) (380)
Other assets 100 128
Accounts payable 121 261
Other liabilities (159) (74)
Income taxes, net 39 50
Pension, net (56) (51)
Captive finance receivables, net 22 6
Other operating activities, net 4 2
Net cash provided by (used in) operating activities (7) 163
Cash flows from investing activities    
Capital expenditures (66) (62)
Net proceeds from corporate-owned life insurance policies 3 20
Proceeds from sale of property, plant and equipment 3 0
Finance receivables repaid 8 12
Finance receivables originated (11) 0
Other investing activities, net 0 1
Net cash provided by (used in) investing activities (63) (29)
Cash flows from financing activities    
Principal payments on long-term debt and nonrecourse debt (365) (17)
Purchases of Textron common stock (317) (377)
Dividends paid (4) (4)
Proceeds from options exercised 63 27
Other financing activities, net (14) (5)
Net cash used in financing activities (637) (376)
Effect of exchange rate changes on cash and equivalents (8) 6
Net increase (decrease) in cash and equivalents (715) (236)
Cash and equivalents at beginning of period 2,181 2,035
Cash and equivalents at end of period $ 1,466 $ 1,799
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Consolidated Statements of Cash Flows (Unaudited) - Manufacturing Group and Finance Group - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Cash flows from operating activities    
Net income $ 201 $ 191
Non-cash items:    
Depreciation and amortization 88 92
Deferred income taxes (16) (32)
Other, net 33 39
Changes in assets and liabilities:    
Accounts receivable, net (34) (69)
Inventories (350) (380)
Other assets 100 128
Accounts payable 121 261
Other liabilities (159) (74)
Income taxes, net 39 50
Pension, net (56) (51)
Other operating activities, net 4 2
Net cash provided by (used in) operating activities (7) 163
Cash flows from investing activities    
Capital expenditures (66) (62)
Net proceeds from corporate-owned life insurance policies 3 20
Proceeds from sale of property, plant and equipment 3 0
Finance receivables repaid 8 12
Finance receivables originated (11) 0
Other investing activities, net 0 1
Net cash provided by (used in) investing activities (63) (29)
Cash flows from financing activities    
Principal payments on long-term debt and nonrecourse debt (365) (17)
Purchases of Textron common stock (317) (377)
Dividends paid (4) (4)
Proceeds from options exercised 63 27
Other financing activities, net (14) (5)
Net cash used in financing activities (637) (376)
Effect of exchange rate changes on cash and equivalents (8) 6
Net increase (decrease) in cash and equivalents (715) (236)
Cash and equivalents at beginning of period 2,181 2,035
Cash and equivalents at end of period 1,466 1,799
Manufacturing group    
Cash flows from operating activities    
Net income 187 185
Non-cash items:    
Depreciation and amortization 88 92
Deferred income taxes (16) (32)
Other, net 44 41
Changes in assets and liabilities:    
Accounts receivable, net (34) (69)
Inventories (350) (380)
Other assets 100 121
Accounts payable 121 261
Other liabilities (153) (65)
Income taxes, net 35 48
Pension, net (56) (51)
Other operating activities, net 4 2
Net cash provided by (used in) operating activities (30) 153
Cash flows from investing activities    
Capital expenditures (66) (62)
Net proceeds from corporate-owned life insurance policies 3 20
Proceeds from sale of property, plant and equipment 3 0
Finance receivables repaid 0 0
Finance receivables originated 0 0
Other investing activities, net 0 0
Net cash provided by (used in) investing activities (60) (42)
Cash flows from financing activities    
Principal payments on long-term debt and nonrecourse debt (352) (2)
Purchases of Textron common stock (317) (377)
Dividends paid (4) (4)
Proceeds from options exercised 63 27
Other financing activities, net (25) (5)
Net cash used in financing activities (635) (361)
Effect of exchange rate changes on cash and equivalents (8) 6
Net increase (decrease) in cash and equivalents (733) (244)
Cash and equivalents at beginning of period 2,121 1,963
Cash and equivalents at end of period 1,388 1,719
Finance group    
Cash flows from operating activities    
Net income 14 6
Non-cash items:    
Depreciation and amortization 0 0
Deferred income taxes 0 0
Other, net (11) (2)
Changes in assets and liabilities:    
Accounts receivable, net 0 0
Inventories 0 0
Other assets 0 7
Accounts payable 0 0
Other liabilities (6) (9)
Income taxes, net 4 2
Pension, net 0 0
Other operating activities, net 0 0
Net cash provided by (used in) operating activities 1 4
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 47 35
Finance receivables originated (28) (17)
Other investing activities, net 0 1
Net cash provided by (used in) investing activities 19 19
Cash flows from financing activities    
Principal payments on long-term debt and nonrecourse debt (13) (15)
Purchases of Textron common stock 0 0
Dividends paid 0 0
Proceeds from options exercised 0 0
Other financing activities, net 11 0
Net cash used in financing activities (2) (15)
Effect of exchange rate changes on cash and equivalents 0 0
Net increase (decrease) in cash and equivalents 18 8
Cash and equivalents at beginning of period 60 72
Cash and equivalents at end of period $ 78 $ 80
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Basis of Presentation
 3 Months Ended
Mar. 30, 2024
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 30, 2023.  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 2024 and 2023, our cumulative catch-up adjustments increased segment profit by $13 million and $8 million, respectively, and net income by $10 million and $6 million, respectively ($0.05 and $0.03 per diluted share, respectively).
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Accounts Receivable and Finance Receivables
 3 Months Ended
Mar. 30, 2024
Receivables [Abstract]  
Accounts Receivable and Finance Receivables Accounts Receivable and Finance Receivables
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)March 30,
2024		December 30,
2023
Commercial$816 $831 
U.S. Government contracts102 63 
918 894 
Allowance for credit losses(24)(26)
Total accounts receivable, net$894 $868 
Finance Receivables
Finance receivables are presented in the following table:
(In millions)March 30,
2024		December 30,
2023
Finance receivables$603 $609 
Allowance for credit losses(21)(24)
Total finance receivables, net$582 $585 
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)March 30,
2024		December 30,
2023
Performing$568$571
Watchlist2223
Nonaccrual1315
Nonaccrual as a percentage of finance receivables2.16%2.46%
Current and less than 31 days past due$582$589
31-60 days past due1816
61-90 days past due——
Over 90 days past due34
60+ days contractual delinquency as a percentage of finance receivables0.50%0.66%
At March 30, 2024, 35% of our performing finance receivables were originated since the beginning of 2022 and 30% were originated from 2019 to 2021 with the remainder prior to 2019. For finance receivables categorized as watchlist, 100% were originated from 2020 to 2021, and for nonaccrual, 100% were originated prior to 2020.
On a quarterly basis, we evaluate individual larger balance accounts for impairment.  A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality indicators described above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of principal and interest remains probable, but the account’s original terms have been, or are expected to be, significantly modified.  If the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification.
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)March 30,
2024		December 30,
2023
Finance receivables evaluated collectively$505 $508 
Finance receivables evaluated individually13 15 
Allowance for credit losses based on collective evaluation18 21 
Allowance for credit losses based on individual evaluation3 3 
Impaired finance receivables with specific allowance for credit losses$9 $11 
Impaired finance receivables with no specific allowance for credit losses4 4 
Unpaid principal balance of impaired finance receivables20 25 
Allowance for credit losses on impaired finance receivables3 3 
Average recorded investment of impaired finance receivables14 27 
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Inventories
 3 Months Ended
Mar. 30, 2024
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories are composed of the following:
(In millions)March 30,
2024		December 30,
2023
Finished goods$1,148 $1,072 
Work in process1,976 1,736 
Raw materials and components1,143 1,106 
Total inventories$4,267 $3,914 
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Accounts Payable and Warranty Liability
 3 Months Ended
Mar. 30, 2024
Payables and Accruals [Abstract]  
Accounts Payable and Warranty Liability Accounts Payable and Warranty Liability
Accounts Payable
Supplier Financing Arrangement
We have a financing arrangement with one of our suppliers for a maximum amount of $175 million that extends payment terms for up to 190 days from the receipt of goods and provides for the supplier to be paid by a financial institution earlier than maturity. This financing arrangement expires in June 2024. As of March 30, 2024 and December 30, 2023, the amount due under this supplier financing arrangement was $135 million and $125 million, respectively.
Warranty Liability
Changes in our warranty liability are as follows:
Three Months Ended
(In millions)March 30,
2024		April 1,
2023
Beginning of period$172 $149 
Provision17 15 
Settlements(18)(18)
Adjustments*(1)3 
End of period$170 $149 
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.
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Leases
 3 Months Ended
Mar. 30, 2024
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 25 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $18 million and $17 million in the first quarter of 2024 and 2023, respectively. Variable and short-term lease costs were not significant. Cash paid for operating leases totaled $18 million and $17 million in the first quarter of 2024 and 2023, respectively, and is classified in cash flows from operating activities. Noncash transactions totaled $25 million and $15 million in the first quarter of 2024 and 2023, 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)March 30,
2024		December 30,
2023
Other assets$382$371
Other current liabilities5755
Other liabilities334326
Weighted-average remaining lease term (in years)10.110.3
Weighted-average discount rate4.69%4.70%
At March 30, 2024, maturities of our operating lease liabilities on an undiscounted basis totaled $55 million for the remainder of 2024, $66 million for 2025, $52 million for 2026, $44 million for 2027, $42 million for 2028 and $242 million thereafter.
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Derivative Instruments and Fair Value Measurements
 3 Months Ended
Mar. 30, 2024
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 March 30, 2024 and December 30, 2023, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $681 million and $478 million, respectively. At March 30, 2024, the fair value amounts of our foreign currency exchange contracts were a $2 million asset and a $10 million liability. At December 30, 2023, the fair value amount of our foreign currency exchange contracts were a $4 million asset and a $3 million liability.
Our Finance group enters into interest rate swap agreements to mitigate certain exposures to fluctuations in interest rates. By using these contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. The fair value of our interest rate swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2.
At March 30, 2024 and December 30, 2023, we had interest rate swap agreements related to our Floating Rate Junior Subordinated Notes for an aggregate notional amount of $185 million that effectively converts the variable-rate interest for these Notes to a weighted-average fixed rate of 5.17%; these agreements have maturities ranging from August 2025 to August 2028. At March 30, 2024 and December 30, 2023, we had an interest rate swap agreement 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 4.13%. The fair value of our outstanding interest rate swap agreements was a $6 million asset at March 30, 2024 and a $4 million asset at December 30, 2023.
Assets and Liabilities Not Recorded at Fair Value
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
March 30, 2024December 30, 2023
CarryingEstimatedCarryingEstimated
(In millions)ValueFair ValueValueFair Value
Manufacturing group
Debt, excluding leases$(3,168)$(2,965)$(3,520)$(3,342)
Finance group
Finance receivables, excluding leases416 422 417 423 
Debt(342)(305)(348)(293)
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.
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Shareholders' Equity
 3 Months Ended
Mar. 30, 2024
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 March 30, 2024
Beginning of period$24 $1,910 $(165)$5,862 $(644)$6,987 
Net income— — — 201 — 201 
Other comprehensive loss— — — — (37)(37)
Share-based compensation activity1 102 — — — 103 
Dividends declared— — — (4)— (4)
Purchases of common stock, including excise tax*— — (319)— — (319)
End of period$25 $2,012 $(484)$6,059 $(681)$6,931 
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 
*Includes amounts accrued for excise tax imposed on common share repurchases of $2 million for the first quarter of 2024 and $3 million for the first quarter of 2023.
Dividends per share of common stock were $0.02 for both the first quarter of 2024 and 2023.
Earnings Per Share
We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period.  Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options.  
The weighted-average shares outstanding for basic and diluted EPS are as follows:
Three Months Ended
(In thousands)March 30,
2024		April 1,
2023
Basic weighted-average shares outstanding192,800 204,835 
Dilutive effect of stock options2,060 2,176 
Diluted weighted-average shares outstanding194,860 207,011 
Stock options to purchase 1.0 million and 2.0 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for the first quarter of 2024 and 2023, respectively, as their effect would have been anti-dilutive.
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss)
The components of Accumulated other comprehensive loss are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments		Foreign
Currency
Translation
Adjustments		Deferred
Gains (Losses)
on Hedge
Contracts		Accumulated
Other
Comprehensive
Loss
Balance at December 30, 2023$(598)$(49)$3 $(644)
Other comprehensive loss before reclassifications— (33)(5)(38)
Reclassified from Accumulated other comprehensive loss1 — — 1 
Balance at March 30, 2024$(597)$(82)$(2)$(681)
Balance at December 31, 2022$(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)$(586)
The before and after-tax components of Other comprehensive income (loss) are presented below:
March 30, 2024April 1, 2023
(In millions)Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount		Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial gain*$(1)$— $(1)$(2)$1 $(1)
Amortization of prior service cost*2 — 2 2 (1)1 
Pension and postretirement benefits adjustments, net1 — 1 — — — 
Foreign currency translation adjustments(33)— (33)28 — 28 
Deferred losses on hedge contracts:
Current deferrals(7)2 (5)(4)1 (3)
Reclassification adjustments(1)1 — 2 (1)1 
Deferred losses on hedge contracts, net(8)3 (5)(2)— (2)
Total$(40)$3 $(37)$26 $— $26 
*These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2023 Annual Report on Form 10-K for additional information.
v3.24.1.u1
Segment Information
 3 Months Ended
Mar. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate in, and reported financial information for, the following six operating 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. Segment profit for the manufacturing segments excludes the non-service components of pension and postretirement income, net; LIFO inventory provision; intangible asset amortization; interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. 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)March 30,
2024		April 1,
2023
Revenues
Textron Aviation$1,188 $1,149 
Bell727 621 
Textron Systems306 306 
Industrial892 932 
Textron eAviation7 4 
Finance15 12 
Total revenues$3,135 $3,024 
Segment Profit
Textron Aviation$143 $125 
Bell80 60 
Textron Systems38 34 
Industrial29 41 
Textron eAviation(18)(9)
Finance18 8 
Segment profit290 259 
Corporate expenses and other, net(62)(39)
Interest expense, net for Manufacturing group(15)(17)
LIFO inventory provision(20)(25)
Intangible asset amortization(8)(10)
Special charges(14)— 
Non-service components of pension and postretirement income, net66 59 
Income before income taxes$237 $227 
v3.24.1.u1
Revenues
 3 Months Ended
Mar. 30, 2024
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)March 30,
2024		April 1,
2023
Aircraft$732 $718 
Aftermarket parts and services456 431 
Textron Aviation$1,188 $1,149 
Military aircraft and support programs480 385 
Commercial helicopters, parts and services247 236 
Bell$727 $621 
Textron Systems$306 $306 
Fuel systems and functional components488 488 
Specialized vehicles404 444 
Industrial$892 $932 
Textron eAviation$7 $4 
Finance$15 $12 
Total revenues$3,135 $3,024 
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 March 30, 2024
Customer type:
Commercial$1,155 $239 $72 $884 $7 $15 $2,372 
U.S. Government33 488 234 8 — — 763 
Total revenues$1,188 $727 $306 $892 $7 $15 $3,135 
Geographic location:
United States$950 $559 $274 $460 $4 $4 $2,251 
Europe62 23 13 198 2 5 303 
Other international176 145 19 234 1 6 581 
Total revenues$1,188 $727 $306 $892 $7 $15 $3,135 
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 
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 March 30, 2024, we had $13.7 billion in remaining performance obligations of which we expect to recognize revenues of approximately 85% through 2025, an additional 14% through 2027, 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 March 30, 2024 and December 30, 2023, contract assets totaled $426 million and $513 million, respectively, and contract liabilities totaled $1.9 billion and $1.8 billion, respectively, reflecting timing differences between revenues recognized, billings and payments from customers. We recognized revenues of $327 million and $316 million in the first quarter of 2024 and 2023, respectively, that were included in the contract liability balance at the beginning of each year.
v3.24.1.u1
Share-Based Compensation
 3 Months Ended
Mar. 30, 2024
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)March 30,
2024		April 1,
2023
Compensation expense$77 $45 
Income tax benefit(19)(11)
Total compensation expense included in net income$58 $34 
Compensation expense included stock option expense of $15 million and $14 million in the first quarter of 2024 and 2023, respectively. We typically grant stock appreciation rights to selected non-U.S. employees. At March 30, 2024, outstanding stock appreciation rights totaled 409,232 with a weighted-average exercise price of $62.60 and a weighted-average remaining contractual life of 6.6 years; these units had an intrinsic value of $14 million, compared to $10 million at April 1, 2023.
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,
2024		March 1,
2023
Fair value of options at grant date$27.69$23.83 
Dividend yield0.1%0.1%
Expected volatility27.2%29.4%
Risk-free interest rate4.3%4.2%
Expected term (in years)4.84.8
The stock option activity during the first quarter of 2024 is provided below:
(Options in thousands)Number of
Options		Weighted-
Average
Exercise Price
Outstanding at December 30, 20237,515 $54.25 
Granted956 88.68 
Exercised(1,425)(44.98)
Forfeited or expired(8)(71.23)
Outstanding at March 30, 20247,038 $60.78 
Exercisable at March 30, 20245,001 $53.19 
At March 30, 2024, our outstanding options had an aggregate intrinsic value of $247 million and a weighted-average remaining contractual life of 6.4 years. Our exercisable options had an aggregate intrinsic value of $214 million and a weighted-average remaining contractual life of 5.3 years at March 30, 2024.  The total intrinsic value of options exercised during the first quarter of 2024 and 2023 was $60 million and $19 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 2024 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 30, 2023, nonvested396 $61.73 810 $63.06 
Granted94 88.68 219 88.70 
Vested(165)(52.40)(367)(52.26)
Forfeited— — (7)(66.64)
Outstanding at March 30, 2024, nonvested325 $74.29 655 $77.66 
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)March 30,
2024		April 1,
2023
Fair value of awards vested$41 $44 
Cash paid33 34 
Performance Share Units
The activity for our performance share units during the first quarter of 2024 is as follows:
(Units in thousands)Number of
Units		Weighted-
Average Grant
Date Fair Value
Outstanding at December 30, 2023, nonvested366 $72.23 
Granted194 88.68 
Outstanding at March 30, 2024, nonvested560 $77.92 
Cash paid under these awards totaled $35 million and $27 million in the first quarter of 2024 and 2023, respectively.
v3.24.1.u1
Retirement Plans
 3 Months Ended
Mar. 30, 2024
Retirement Benefits [Abstract]  
Retirement Plans Retirement Plans
We 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)March 30,
2024		April 1,
2023
Pension Benefits
Service cost$17 $17 
Interest cost90 91 
Expected return on plan assets(159)(152)
Amortization of net actuarial loss1 — 
Amortization of prior service cost2 3 
Net periodic benefit income*$(49)$(41)
Postretirement Benefits Other Than Pensions
Interest cost$2 $2 
Amortization of net actuarial gain(2)(2)
Amortization of prior service credit— (1)
Net periodic benefit income$— $(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 both the first quarter of 2024 and 2023.
v3.24.1.u1
Special Charges
 3 Months Ended
Mar. 30, 2024
Restructuring and Related Activities [Abstract]  
Special Charges Special Charges
On April 24, 2024, the Board of Directors approved the expansion of Textron’s 2023 restructuring plan to further reduce operating expenses through headcount reductions. In the first quarter of 2024, both the Shadow and Future Attack Reconnaissance Aircraft programs were cancelled at the Textron Systems and Bell segments, resulting in additional severance costs under the restructuring plan. Additionally, we increased our planned headcount reduction within the Industrial segment due to lower anticipated consumer demand for certain products at the Specialized Vehicles product line and reduced demand for fuel systems from European automotive manufacturers at Kautex. We now expect to incur additional severance costs in the second quarter of 2024 in the range of $25 million to $30 million, largely related to headcount reductions within the Industrial segment.
Since inception of the 2023 restructuring plan, we have incurred $140 million in special charges, including severance costs of $52 million, which included $22 million at the Industrial segment, $18 million at the Bell segment and $12 million at the Textron Systems segment; and asset impairment charges of $88 million at the Industrial segment. Special charges in the first quarter of 2024 totaled $14 million, which included $13 million in severance costs and $1 million in asset impairment charges in connection with this plan; we recorded $7 million of these charges at the Textron Systems segment, $5 million at the Bell segment and $2 million at the Industrial segment.
Headcount reductions since inception of the plan are expected to total approximately 1,500 positions, representing 4% of our global workforce. We estimate that remaining future cash outlays under this plan will be in the range of $60 million to $65 million, most of which we expect to pay in 2024. We expect charges under this plan to be substantially completed by the end of the first half of 2024.
Our restructuring reserve activity is summarized below:
(In millions)Severance
Costs		Contract
Terminations
and Other		Total
Balance at December 30, 2023$42 $5 $47 
Provision for 2023 Restructuring Plan13 — 13 
Cash paid(18)— (18)
Foreign currency translation(1)— (1)
Balance at March 30, 2024$36 $5 $41 
v3.24.1.u1
Income Taxes
 3 Months Ended
Mar. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our effective tax rate for the first quarter of 2024 and 2023 was 15.2% and 15.9%, respectively. In the first quarter of 2024, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the recognition of excess tax benefits related to share-based compensation, the favorable impact of research and development credits, and tax deductions for foreign-derived intangible income. 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.
v3.24.1.u1
Commitments and Contingencies
 3 Months Ended
Mar. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
We are subject to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; disputes with suppliers, production partners or other third parties; product liability; patent and trademark infringement; employment disputes; and environmental, health and safety matters. Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations.
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Pay vs Performance Disclosure    
Net income $ 201 $ 191
v3.24.1.u1
Insider Trading Arrangements
 3 Months Ended
Mar. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.1.u1
Basis of Presentation (Policies)
 3 Months Ended
Mar. 30, 2024
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.
v3.24.1.u1
Accounts Receivable and Finance Receivables (Tables)
 3 Months Ended
Mar. 30, 2024
Receivables [Abstract]  
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)March 30,
2024		December 30,
2023
Commercial$816 $831 
U.S. Government contracts102 63 
918 894 
Allowance for credit losses(24)(26)
Total accounts receivable, net$894 $868 
Finance Receivables
Finance receivables are presented in the following table:
(In millions)March 30,
2024		December 30,
2023
Finance receivables$603 $609 
Allowance for credit losses(21)(24)
Total finance receivables, net$582 $585 
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)March 30,
2024		December 30,
2023
Performing$568$571
Watchlist2223
Nonaccrual1315
Nonaccrual as a percentage of finance receivables2.16%2.46%
Current and less than 31 days past due$582$589
31-60 days past due1816
61-90 days past due——
Over 90 days past due34
60+ days contractual delinquency as a percentage of finance receivables0.50%0.66%
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)March 30,
2024		December 30,
2023
Performing$568$571
Watchlist2223
Nonaccrual1315
Nonaccrual as a percentage of finance receivables2.16%2.46%
Current and less than 31 days past due$582$589
31-60 days past due1816
61-90 days past due——
Over 90 days past due34
60+ days contractual delinquency as a percentage of finance receivables0.50%0.66%
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)March 30,
2024		December 30,
2023
Finance receivables evaluated collectively$505 $508 
Finance receivables evaluated individually13 15 
Allowance for credit losses based on collective evaluation18 21 
Allowance for credit losses based on individual evaluation3 3 
Impaired finance receivables with specific allowance for credit losses$9 $11 
Impaired finance receivables with no specific allowance for credit losses4 4 
Unpaid principal balance of impaired finance receivables20 25 
Allowance for credit losses on impaired finance receivables3 3 
Average recorded investment of impaired finance receivables14 27 
v3.24.1.u1
Inventories (Tables)
 3 Months Ended
Mar. 30, 2024
Inventory Disclosure [Abstract]  
Inventories
Inventories are composed of the following:
(In millions)March 30,
2024		December 30,
2023
Finished goods$1,148 $1,072 
Work in process1,976 1,736 
Raw materials and components1,143 1,106 
Total inventories$4,267 $3,914 
v3.24.1.u1
Accounts Payable and Warranty Liability (Tables)
 3 Months Ended
Mar. 30, 2024
Payables and Accruals [Abstract]  
Changes in Warranty Liability
Changes in our warranty liability are as follows:
Three Months Ended
(In millions)March 30,
2024		April 1,
2023
Beginning of period$172 $149 
Provision17 15 
Settlements(18)(18)
Adjustments*(1)3 
End of period$170 $149 
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.
v3.24.1.u1
Leases (Tables)
 3 Months Ended
Mar. 30, 2024
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)March 30,
2024		December 30,
2023
Other assets$382$371
Other current liabilities5755
Other liabilities334326
Weighted-average remaining lease term (in years)10.110.3
Weighted-average discount rate4.69%4.70%
v3.24.1.u1
Derivative Instruments and Fair Value Measurements (Tables)
 3 Months Ended
Mar. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Carrying Value and Estimated and Fair Value of Financial Instruments
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
March 30, 2024December 30, 2023
CarryingEstimatedCarryingEstimated
(In millions)ValueFair ValueValueFair Value
Manufacturing group
Debt, excluding leases$(3,168)$(2,965)$(3,520)$(3,342)
Finance group
Finance receivables, excluding leases416 422 417 423 
Debt(342)(305)(348)(293)
v3.24.1.u1
Shareholders' Equity (Tables)
 3 Months Ended
Mar. 30, 2024
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 March 30, 2024
Beginning of period$24 $1,910 $(165)$5,862 $(644)$6,987 
Net income— — — 201 — 201 
Other comprehensive loss— — — — (37)(37)
Share-based compensation activity1 102 — — — 103 
Dividends declared— — — (4)— (4)
Purchases of common stock, including excise tax*— — (319)— — (319)
End of period$25 $2,012 $(484)$6,059 $(681)$6,931 
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 
*Includes amounts accrued for excise tax imposed on common share repurchases of $2 million for the first quarter of 2024 and $3 million for the first quarter of 2023.
Schedule of Weighted-Average Shares Outstanding for Basic and Diluted EPS
The weighted-average shares outstanding for basic and diluted EPS are as follows:
Three Months Ended
(In thousands)March 30,
2024		April 1,
2023
Basic weighted-average shares outstanding192,800 204,835 
Dilutive effect of stock options2,060 2,176 
Diluted weighted-average shares outstanding194,860 207,011 
Schedule of Components of Accumulated Other Comprehensive Income (Loss)
The components of Accumulated other comprehensive loss are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments		Foreign
Currency
Translation
Adjustments		Deferred
Gains (Losses)
on Hedge
Contracts		Accumulated
Other
Comprehensive
Loss
Balance at December 30, 2023$(598)$(49)$3 $(644)
Other comprehensive loss before reclassifications— (33)(5)(38)
Reclassified from Accumulated other comprehensive loss1 — — 1 
Balance at March 30, 2024$(597)$(82)$(2)$(681)
Balance at December 31, 2022$(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)$(586)
Schedule of Before and After-Tax Components of Other Comprehensive Income (Loss)
The before and after-tax components of Other comprehensive income (loss) are presented below:
March 30, 2024April 1, 2023
(In millions)Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount		Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial gain*$(1)$— $(1)$(2)$1 $(1)
Amortization of prior service cost*2 — 2 2 (1)1 
Pension and postretirement benefits adjustments, net1 — 1 — — — 
Foreign currency translation adjustments(33)— (33)28 — 28 
Deferred losses on hedge contracts:
Current deferrals(7)2 (5)(4)1 (3)
Reclassification adjustments(1)1 — 2 (1)1 
Deferred losses on hedge contracts, net(8)3 (5)(2)— (2)
Total$(40)$3 $(37)$26 $— $26 
*These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2023 Annual Report on Form 10-K for additional information.
v3.24.1.u1
Segment Information (Tables)
 3 Months Ended
Mar. 30, 2024
Segment Reporting [Abstract]  
Reconciliation of Revenues by Segment
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)March 30,
2024		April 1,
2023
Revenues
Textron Aviation$1,188 $1,149 
Bell727 621 
Textron Systems306 306 
Industrial892 932 
Textron eAviation7 4 
Finance15 12 
Total revenues$3,135 $3,024 
Segment Profit
Textron Aviation$143 $125 
Bell80 60 
Textron Systems38 34 
Industrial29 41 
Textron eAviation(18)(9)
Finance18 8 
Segment profit290 259 
Corporate expenses and other, net(62)(39)
Interest expense, net for Manufacturing group(15)(17)
LIFO inventory provision(20)(25)
Intangible asset amortization(8)(10)
Special charges(14)— 
Non-service components of pension and postretirement income, net66 59 
Income before income taxes$237 $227 
Reconciliation of Segment Profit to Income 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)March 30,
2024		April 1,
2023
Revenues
Textron Aviation$1,188 $1,149 
Bell727 621 
Textron Systems306 306 
Industrial892 932 
Textron eAviation7 4 
Finance15 12 
Total revenues$3,135 $3,024 
Segment Profit
Textron Aviation$143 $125 
Bell80 60 
Textron Systems38 34 
Industrial29 41 
Textron eAviation(18)(9)
Finance18 8 
Segment profit290 259 
Corporate expenses and other, net(62)(39)
Interest expense, net for Manufacturing group(15)(17)
LIFO inventory provision(20)(25)
Intangible asset amortization(8)(10)
Special charges(14)— 
Non-service components of pension and postretirement income, net66 59 
Income before income taxes$237 $227 
v3.24.1.u1
Revenues (Tables)
 3 Months Ended
Mar. 30, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Our revenues disaggregated by major product type are presented below:
Three Months Ended
(In millions)March 30,
2024		April 1,
2023
Aircraft$732 $718 
Aftermarket parts and services456 431 
Textron Aviation$1,188 $1,149 
Military aircraft and support programs480 385 
Commercial helicopters, parts and services247 236 
Bell$727 $621 
Textron Systems$306 $306 
Fuel systems and functional components488 488 
Specialized vehicles404 444 
Industrial$892 $932 
Textron eAviation$7 $4 
Finance$15 $12 
Total revenues$3,135 $3,024 
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 March 30, 2024
Customer type:
Commercial$1,155 $239 $72 $884 $7 $15 $2,372 
U.S. Government33 488 234 8 — — 763 
Total revenues$1,188 $727 $306 $892 $7 $15 $3,135 
Geographic location:
United States$950 $559 $274 $460 $4 $4 $2,251 
Europe62 23 13 198 2 5 303 
Other international176 145 19 234 1 6 581 
Total revenues$1,188 $727 $306 $892 $7 $15 $3,135 
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 
v3.24.1.u1
Share-Based Compensation (Tables)
 3 Months Ended
Mar. 30, 2024
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)March 30,
2024		April 1,
2023
Compensation expense$77 $45 
Income tax benefit(19)(11)
Total compensation expense included in net income$58 $34 
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,
2024		March 1,
2023
Fair value of options at grant date$27.69$23.83 
Dividend yield0.1%0.1%
Expected volatility27.2%29.4%
Risk-free interest rate4.3%4.2%
Expected term (in years)4.84.8
Stock Option Activity
The stock option activity during the first quarter of 2024 is provided below:
(Options in thousands)Number of
Options		Weighted-
Average
Exercise Price
Outstanding at December 30, 20237,515 $54.25 
Granted956 88.68 
Exercised(1,425)(44.98)
Forfeited or expired(8)(71.23)
Outstanding at March 30, 20247,038 $60.78 
Exercisable at March 30, 20245,001 $53.19 
Restricted Stock Units Activity
The activity for restricted stock units payable in both stock and cash during the first quarter of 2024 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 30, 2023, nonvested396 $61.73 810 $63.06 
Granted94 88.68 219 88.70 
Vested(165)(52.40)(367)(52.26)
Forfeited— — (7)(66.64)
Outstanding at March 30, 2024, nonvested325 $74.29 655 $77.66 
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)March 30,
2024		April 1,
2023
Fair value of awards vested$41 $44 
Cash paid33 34 
Performance Share Units Activity
The activity for our performance share units during the first quarter of 2024 is as follows:
(Units in thousands)Number of
Units		Weighted-
Average Grant
Date Fair Value
Outstanding at December 30, 2023, nonvested366 $72.23 
Granted194 88.68 
Outstanding at March 30, 2024, nonvested560 $77.92 
v3.24.1.u1
Retirement Plans (Tables)
 3 Months Ended
Mar. 30, 2024
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)March 30,
2024		April 1,
2023
Pension Benefits
Service cost$17 $17 
Interest cost90 91 
Expected return on plan assets(159)(152)
Amortization of net actuarial loss1 — 
Amortization of prior service cost2 3 
Net periodic benefit income*$(49)$(41)
Postretirement Benefits Other Than Pensions
Interest cost$2 $2 
Amortization of net actuarial gain(2)(2)
Amortization of prior service credit— (1)
Net periodic benefit income$— $(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 both the first quarter of 2024 and 2023.
v3.24.1.u1
Special Charges (Tables)
 3 Months Ended
Mar. 30, 2024
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Reserve Activity
Our restructuring reserve activity is summarized below:
(In millions)Severance
Costs		Contract
Terminations
and Other		Total
Balance at December 30, 2023$42 $5 $47 
Provision for 2023 Restructuring Plan13 — 13 
Cash paid(18)— (18)
Foreign currency translation(1)— (1)
Balance at March 30, 2024$36 $5 $41 
v3.24.1.u1
Basis of Presentation (Details)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 30, 2024
USD ($)
borrowing_group
$ / shares
Apr. 01, 2023
USD ($)
$ / shares
Change in Accounting Estimate [Line Items]    
Number of borrowing groups | borrowing_group 2  
Cumulative catch-up method    
Change in Accounting Estimate [Line Items]    
Cumulative catch up adjustments, increase in segment profit $ 13 $ 8
Change in accounting estimate financial effect, increase in net income $ 10 $ 6
Change in accounting estimate financial effect increase in earnings per diluted share (in dollars per share) | $ / shares $ 0.05 $ 0.03
v3.24.1.u1
Accounts Receivable and Finance Receivables - Accounts Receivable (Details) - Manufacturing group - USD ($)
$ in Millions
Mar. 30, 2024
Dec. 30, 2023
Accounts Receivable    
Accounts receivable, gross $ 918 $ 894
Allowance for credit losses (24) (26)
Total accounts receivable, net 894 868
Commercial    
Accounts Receivable    
Accounts receivable, gross 816 831
U.S. Government    
Accounts Receivable    
Accounts receivable, gross $ 102 $ 63
v3.24.1.u1
Accounts Receivable and Finance Receivables - Finance Receivables (Details) - USD ($)
$ in Millions
Mar. 30, 2024
Dec. 30, 2023
Finance Receivables    
Finance receivables $ 603 $ 609
Allowance for credit losses (21) (24)
Total finance receivables, net $ 582 $ 585
v3.24.1.u1
Accounts Receivable and Finance Receivables - Finance Receivable Portfolio Quality (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Dec. 30, 2023
Finance Receivable Portfolio Quality    
Finance receivables $ 603 $ 609
60+ days contractual delinquency as a percentage of finance receivables 0.50% 0.66%
Current and less than 31 days past due    
Finance Receivable Portfolio Quality    
Finance receivables $ 582 $ 589
31-60 days past due    
Finance Receivable Portfolio Quality    
Finance receivables 18 16
61-90 days past due    
Finance Receivable Portfolio Quality    
Finance receivables 0 0
Over 90 days past due    
Finance Receivable Portfolio Quality    
Finance receivables $ 3 $ 4
Performing    
Finance Receivable Portfolio Quality    
Financing percentage receivable originating since the beginning of 2022 35.00%  
Financing receivable percentage originating from 2019 to 2021 30.00%  
Nonperforming    
Finance Receivable Portfolio Quality    
Nonaccrual as a percentage of finance receivables 2.16% 2.46%
Nonperforming | Watchlist    
Finance Receivable Portfolio Quality    
Finance receivables $ 22 $ 23
Financing receivable percentage originating from 2020 to 2021 100.00%  
Nonperforming | Nonaccrual    
Finance Receivable Portfolio Quality    
Finance receivables $ 13 15
Financing receivable percentage originating prior to 2020 100.00%  
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 $ 568 $ 571
v3.24.1.u1
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
Mar. 30, 2024
Dec. 30, 2023
Receivables [Abstract]    
Finance receivables evaluated collectively $ 505 $ 508
Finance receivables evaluated individually 13 15
Allowance for credit losses based on collective evaluation 18 21
Allowance for credit losses based on individual evaluation 3 3
Impaired finance receivables with specific allowance for credit losses 9 11
Impaired finance receivables with no specific allowance for credit losses 4 4
Unpaid principal balance of impaired finance receivables 20 25
Allowance for credit losses on impaired finance receivables 3 3
Average recorded investment of impaired finance receivables $ 14 $ 27
v3.24.1.u1
Inventories (Details) - USD ($)
$ in Millions
Mar. 30, 2024
Dec. 30, 2023
Inventories    
Finished goods $ 1,148 $ 1,072
Work in process 1,976 1,736
Raw materials and components 1,143 1,106
Total inventories $ 4,267 $ 3,914
v3.24.1.u1
Accounts Payable and Warranty Liability - Narrative (Details) - USD ($)
$ in Millions
Mar. 30, 2024
Dec. 30, 2023
Supplier Finance Program [Line Items]    
Supplier financing maximum commitment $ 175  
Payable under supplier financing arrangement $ 135 $ 125
Maximum    
Supplier Finance Program [Line Items]    
Payment terms period under supplier financing arrangement 190 days  
v3.24.1.u1
Accounts Payable and Warranty Liability - Warranty Liability (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Changes in warranty liability    
Beginning of period $ 172 $ 149
Provision 17 15
Settlements (18) (18)
Adjustments (1) 3
End of period $ 170 $ 149
v3.24.1.u1
Leases - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Leases [Abstract]    
Remaining lease terms 25 years  
Operating lease - option to extend true  
Operating lease - option to extend the lease, term 20 years  
Operating lease cost $ 18 $ 17
Cash paid for operating lease liabilities 18 17
Noncash lease transactions $ 25 $ 15
v3.24.1.u1
Leases - Balance Sheet and Other Information (Details) - USD ($)
$ in Millions
Mar. 30, 2024
Dec. 30, 2023
Operating leases:    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets
Other assets $ 382 $ 371
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Other current liabilities $ 57 $ 55
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Other liabilities $ 334 $ 326
Weighted-average remaining lease term (in years)    
Weighted-average remaining lease term (in years) 10 years 1 month 6 days 10 years 3 months 18 days
Weighted-average discount rate    
Weighted-average discount rate 4.69% 4.70%
v3.24.1.u1
Leases - Maturity of Lease Liabilities (Details)
$ in Millions
Mar. 30, 2024
USD ($)
Operating Leases  
Remainder of 2024 $ 55
2025 66
2026 52
2027 44
2028 42
Thereafter $ 242
v3.24.1.u1
Derivative Instruments and Fair Value Measurements - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Dec. 30, 2023
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 $ 681 $ 478
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 4
Derivative liability, fair value 10 3
Finance group | Interest rate swap | Cash Flow Hedging    
Assets and Liabilities Recorded at Fair Value on a Recurring Basis    
Derivative asset, fair value 6 4
Finance group | Interest rate swap, maturing August 2025 to August 2028 | Cash Flow Hedging    
Assets and Liabilities Recorded at Fair Value on a Recurring Basis    
Notional amounts $ 185 $ 185
Finance group | Interest rate swap, maturing August 2025 to August 2028 | Cash Flow Hedging | Floating Rate Junior Subordinated Notes due 2067 | Junior Subordinated Debt    
Assets and Liabilities Recorded at Fair Value on a Recurring Basis    
Net impact of debt and derivative, weighted-average fixed interest rate 5.17% 5.17%
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
Finance group | Interest rate swap, maturing in June 2025 | Cash Flow Hedging | Floating Rate Junior Subordinated Notes due 2067 | Junior Subordinated Debt    
Assets and Liabilities Recorded at Fair Value on a Recurring Basis    
Net impact of debt and derivative, fixed interest rate 4.13% 4.13%
v3.24.1.u1
Derivative Instruments and Fair Value Measurements - Assets and Liabilities not Recorded at Fair Value (Details) - USD ($)
$ in Millions
Mar. 30, 2024
Dec. 30, 2023
Manufacturing group | Carrying Value    
Financial instruments not reflected at fair value    
Debt $ (3,168) $ (3,520)
Manufacturing group | Estimated Fair value    
Financial instruments not reflected at fair value    
Debt (2,965) (3,342)
Finance group | Carrying Value    
Financial instruments not reflected at fair value    
Debt (342) (348)
Finance receivables, excluding leases 416 417
Finance group | Estimated Fair value    
Financial instruments not reflected at fair value    
Debt (305) (293)
Finance receivables, excluding leases $ 422 $ 423
v3.24.1.u1
Shareholders' Equity - Reconciliation of Shareholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period $ 6,987 $ 7,113
Net income 201 191
Other comprehensive income (loss) (37) 26
Share-based compensation activity 103 62
Dividends declared (4) (4)
Purchases of common stock, including excise tax (319) (380)
Balance at end of period 6,931 7,008
Excise taxes on common share repurchases $ 2 $ 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 $ 24 $ 26
Share-based compensation activity 1  
Balance at end of period 25 26
Capital Surplus    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period 1,910 1,880
Share-based compensation activity 102 62
Balance at end of period 2,012 1,942
Treasury Stock    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period (165) (84)
Purchases of common stock, including excise tax (319) (380)
Balance at end of period (484) (464)
Retained Earnings    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period 5,862 5,903
Net income 201 191
Dividends declared (4) (4)
Balance at end of period 6,059 6,090
Accumulated Other Comprehensive Loss    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period (644) (612)
Other comprehensive income (loss) (37) 26
Balance at end of period $ (681) $ (586)
v3.24.1.u1
Shareholders' Equity - Earnings Per Share (Details) - shares
shares in Thousands
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Equity [Abstract]    
Basic weighted-average shares outstanding (in shares) 192,800 204,835
Dilutive effect of stock options (in shares) 2,060 2,176
Diluted weighted-average shares outstanding (in shares) 194,860 207,011
Anti-dilutive effect of weighted average shares (in shares) 1,000 2,000
v3.24.1.u1
Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period $ 6,987 $ 7,113
Other comprehensive income (loss) before reclassifications (38) 25
Reclassified from Accumulated other comprehensive loss 1 1
Balance at end of period 6,931 7,008
Accumulated Other Comprehensive Loss    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period (644) (612)
Balance at end of period (681) (586)
Pension and Postretirement Benefits Adjustments    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period (598) (516)
Other comprehensive income (loss) before reclassifications 0 0
Reclassified from Accumulated other comprehensive loss 1 0
Balance at end of period (597) (516)
Foreign Currency Translation Adjustments    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period (49) (94)
Other comprehensive income (loss) before reclassifications (33) 28
Reclassified from Accumulated other comprehensive loss 0 0
Balance at end of period (82) (66)
Deferred Gains (Losses) on Hedge Contracts    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period 3 (2)
Other comprehensive income (loss) before reclassifications (5) (3)
Reclassified from Accumulated other comprehensive loss 0 1
Balance at end of period $ (2) $ (4)
v3.24.1.u1
Shareholders' Equity - Before and After Tax Components of Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Pension and postretirement benefits adjustments, pre-tax:    
Amortization of net actuarial gain, pre-tax $ (1) $ (2)
Amortization of prior service cost, pre-tax 2 2
Pension and postretirement benefits adjustments, net, pre-tax 1 0
Pension and postretirement benefits adjustments, tax:    
Amortization of net actuarial gain, tax (expense) benefit 0 1
Amortization of prior service cost, tax (expense) benefit 0 (1)
Pension and postretirement benefits adjustments, net, tax (expense) benefit 0 0
Pension and postretirement benefits adjustments, after-tax:    
Amortization of net actuarial gain, after-tax (1) (1)
Amortization of prior period service cost, after-tax 2 1
Pension and postretirement benefits adjustments, net, after-tax 1 0
Foreign currency translation adjustments, pre-tax:    
Foreign currency translation adjustments (33) 28
Foreign currency translation adjustments, tax:    
Foreign currency translation adjustments 0 0
Foreign currency translation adjustments, after-tax:    
Foreign currency translation adjustments (33) 28
Deferred losses on hedge contracts, pre-tax:    
Current deferrals, pre-tax (7) (4)
Reclassification adjustments, pre-tax (1) 2
Deferred losses on hedge contracts, net, pre-tax (8) (2)
Deferred losses on hedge contracts, tax:    
Current deferrals, tax (expense) benefit 2 1
Reclassification adjustments, tax (expense) benefit 1 (1)
Deferred losses on hedge contracts, net, tax (expense) benefit 3 0
Deferred losses on hedge contracts, after-tax:    
Current deferrals, after-tax (5) (3)
Reclassification adjustments, after tax 0 1
Deferred losses on hedge contracts, net, after-tax (5) (2)
Other comprehensive income (loss), pre-tax (40) 26
Other comprehensive income (loss), tax (expense) benefit 3 0
Other comprehensive income (loss) $ (37) $ 26
v3.24.1.u1
Segment Information - Narrative (Details)
 3 Months Ended
Mar. 30, 2024
segment
Operating and reportable business segments  
Number of operating business segments 6
Number of reportable business segments 6
v3.24.1.u1
Segment Information - Revenue by Segment and Reconciliation of Segment Profit to Income Before Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Revenues    
Total revenues $ 3,135 $ 3,024
Reconciliation of segment profit to income from continuing operations before income taxes    
Interest expense, net for Manufacturing group (20) (20)
Special Charges (14) 0
Non-service components of pension and postretirement income, net 66 59
Income before income taxes 237 227
Operating Segment    
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 290 259
Reconciling Items    
Reconciliation of segment profit to income from continuing operations before income taxes    
Corporate expenses and other, net (62) (39)
LIFO inventory provision (20) (25)
Intangible asset amortization (8) (10)
Special Charges (14) 0
Non-service components of pension and postretirement income, net 66 59
Textron Aviation    
Revenues    
Total revenues 1,188 1,149
Bell    
Revenues    
Total revenues 727 621
Textron Systems    
Revenues    
Total revenues 306 306
Industrial    
Revenues    
Total revenues 892 932
Textron eAviation    
Revenues    
Total revenues 7 4
Finance    
Revenues    
Total revenues 15 12
Manufacturing group | Reconciling Items    
Reconciliation of segment profit to income from continuing operations before income taxes    
Interest expense, net for Manufacturing group (15) (17)
Manufacturing group | Textron Aviation | Operating Segment    
Revenues    
Total revenues 1,188 1,149
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 143 125
Manufacturing group | Bell | Operating Segment    
Revenues    
Total revenues 727 621
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 80 60
Manufacturing group | Textron Systems | Operating Segment    
Revenues    
Total revenues 306 306
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 38 34
Manufacturing group | Industrial | Operating Segment    
Revenues    
Total revenues 892 932
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 29 41
Manufacturing group | Textron eAviation | Operating Segment    
Revenues    
Total revenues 7 4
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit (18) (9)
Finance group    
Revenues    
Total revenues 15 12
Finance group | Finance | Operating Segment    
Revenues    
Total revenues 15 12
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit $ 18 $ 8
v3.24.1.u1
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Disaggregation of Revenue [Line Items]    
Revenues $ 3,135 $ 3,024
United States    
Disaggregation of Revenue [Line Items]    
Revenues 2,251 2,070
Europe    
Disaggregation of Revenue [Line Items]    
Revenues 303 305
Other international    
Disaggregation of Revenue [Line Items]    
Revenues 581 649
Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 2,372 2,356
U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues 763 668
Textron Aviation    
Disaggregation of Revenue [Line Items]    
Revenues 1,188 1,149
Textron Aviation | United States    
Disaggregation of Revenue [Line Items]    
Revenues 950 836
Textron Aviation | Europe    
Disaggregation of Revenue [Line Items]    
Revenues 62 66
Textron Aviation | Other international    
Disaggregation of Revenue [Line Items]    
Revenues 176 247
Textron Aviation | Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 1,155 1,107
Textron Aviation | U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues 33 42
Textron Aviation | Aircraft    
Disaggregation of Revenue [Line Items]    
Revenues 732 718
Textron Aviation | Aftermarket parts and services    
Disaggregation of Revenue [Line Items]    
Revenues 456 431
Bell    
Disaggregation of Revenue [Line Items]    
Revenues 727 621
Bell | United States    
Disaggregation of Revenue [Line Items]    
Revenues 559 460
Bell | Europe    
Disaggregation of Revenue [Line Items]    
Revenues 23 19
Bell | Other international    
Disaggregation of Revenue [Line Items]    
Revenues 145 142
Bell | Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 239 232
Bell | U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues 488 389
Bell | Military aircraft and support programs    
Disaggregation of Revenue [Line Items]    
Revenues 480 385
Bell | Commercial helicopters, parts and services    
Disaggregation of Revenue [Line Items]    
Revenues 247 236
Textron Systems    
Disaggregation of Revenue [Line Items]    
Revenues 306 306
Textron Systems | United States    
Disaggregation of Revenue [Line Items]    
Revenues 274 275
Textron Systems | Europe    
Disaggregation of Revenue [Line Items]    
Revenues 13 14
Textron Systems | Other international    
Disaggregation of Revenue [Line Items]    
Revenues 19 17
Textron Systems | Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 72 74
Textron Systems | U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues 234 232
Industrial    
Disaggregation of Revenue [Line Items]    
Revenues 892 932
Industrial | United States    
Disaggregation of Revenue [Line Items]    
Revenues 460 494
Industrial | Europe    
Disaggregation of Revenue [Line Items]    
Revenues 198 204
Industrial | Other international    
Disaggregation of Revenue [Line Items]    
Revenues 234 234
Industrial | Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 884 927
Industrial | U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues 8 5
Industrial | Fuel systems and functional components    
Disaggregation of Revenue [Line Items]    
Revenues 488 488
Industrial | Specialized vehicles    
Disaggregation of Revenue [Line Items]    
Revenues 404 444
Textron eAviation    
Disaggregation of Revenue [Line Items]    
Revenues 7 4
Textron eAviation | United States    
Disaggregation of Revenue [Line Items]    
Revenues 4 1
Textron eAviation | Europe    
Disaggregation of Revenue [Line Items]    
Revenues 2 2
Textron eAviation | Other international    
Disaggregation of Revenue [Line Items]    
Revenues 1 1
Textron eAviation | Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 7 4
Textron eAviation | U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues 0 0
Finance    
Disaggregation of Revenue [Line Items]    
Revenues 15 12
Finance | United States    
Disaggregation of Revenue [Line Items]    
Revenues 4 4
Finance | Europe    
Disaggregation of Revenue [Line Items]    
Revenues 5 0
Finance | Other international    
Disaggregation of Revenue [Line Items]    
Revenues 6 8
Finance | Commercial    
Disaggregation of Revenue [Line Items]    
Revenues 15 12
Finance | U.S. Government    
Disaggregation of Revenue [Line Items]    
Revenues $ 0 $ 0
v3.24.1.u1
Revenues - Remaining Performance Obligations (Details)
$ in Billions
Mar. 30, 2024
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 13.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-31  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
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]: 2026-01-04  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percent 14.00%
Remaining performance obligation, expected timing of satisfaction 24 months
v3.24.1.u1
Revenues - Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Dec. 30, 2023
Contract Assets and Liabilities      
Contract assets $ 426   $ 513
Contract liabilities 1,900   $ 1,800
Revenue recognized included in contract liabilities $ 327 $ 316  
v3.24.1.u1
Share-Based Compensation - Compensation Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Compensation expense $ 77 $ 45
Income tax benefit (19) (11)
Total compensation expense included in net income 58 34
Stock options    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Compensation expense $ 15 $ 14
v3.24.1.u1
Share-Based Compensation - Stock Appreciation Rights (Details) - Stock appreciation rights - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Awards outstanding (in shares) 409,232  
Weighted-average exercise price (in dollars per share) $ 62.60  
Weighted-average remaining contractual life 6 years 7 months 6 days  
Intrinsic value $ 14 $ 10
v3.24.1.u1
Share-Based Compensation - Stock Options (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended
Mar. 01, 2024
Mar. 01, 2023
Mar. 30, 2024
Apr. 01, 2023
Additional general disclosures        
Aggregate intrinsic value of outstanding options     $ 247  
Weighted-average remaining contractual life of outstanding stock options     6 years 4 months 24 days  
Aggregate intrinsic value of exercisable options     $ 214  
Weighted-average remaining contractual life of exercisable options     5 years 3 months 18 days  
Total intrinsic value of options exercised     $ 60 $ 19
Stock options        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
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) $ 27.69 $ 23.83    
Dividend yield 0.10% 0.10%    
Expected volatility 27.20% 29.40%    
Risk-free interest rate 4.30% 4.20%    
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)     7,515  
Granted (in shares)     956  
Exercised (in shares)     (1,425)  
Forfeited or expired (in shares)     (8)  
Outstanding at end of period (in shares)     7,038  
Exercisable at end of period (in shares)     5,001  
Weighted-Average Exercise Price        
Outstanding at beginning of period (in dollars per share)     $ 54.25  
Granted (in dollars per share)     88.68  
Exercised (in dollars per share)     (44.98)  
Forfeited or expired (in dollars per share)     (71.23)  
Outstanding at end of period (in dollars per share)     60.78  
Exercisable at end of period (in dollars per share)     $ 53.19  
v3.24.1.u1
Share-Based Compensation - Restricted Stock Units (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Restricted Stock Units    
Fair value    
Fair value of awards vested $ 41 $ 44
Cash paid $ 33 $ 34
Units Payable in Stock    
Number of Units    
Outstanding at beginning of period, nonvested (in shares) 396  
Granted (in shares) 94  
Vested (in shares) (165)  
Forfeited (in shares) 0  
Outstanding at end of period, nonvested (in shares) 325  
Weighted- Average Grant Date Fair Value    
Outstanding at beginning of period, nonvested (in dollars per share) $ 61.73  
Granted (in dollars per share) 88.68  
Vested (in dollars per share) (52.40)  
Forfeited (in dollars per share) 0  
Outstanding at end of period, nonvested (in dollars per share) $ 74.29  
Units Payable in Cash    
Number of Units    
Outstanding at beginning of period, nonvested (in shares) 810  
Granted (in shares) 219  
Vested (in shares) (367)  
Forfeited (in shares) (7)  
Outstanding at end of period, nonvested (in shares) 655  
Weighted- Average Grant Date Fair Value    
Outstanding at beginning of period, nonvested (in dollars per share) $ 63.06  
Granted (in dollars per share) 88.70  
Vested (in dollars per share) (52.26)  
Forfeited (in dollars per share) (66.64)  
Outstanding at end of period, nonvested (in dollars per share) $ 77.66  
v3.24.1.u1
Share-Based Compensation - Performance Share Units (Details) - Performance Share Units - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Number of Units    
Outstanding at beginning of period, nonvested (in shares) 366  
Granted (in shares) 194  
Outstanding at end of period, nonvested (in shares) 560  
Weighted- Average Grant Date Fair Value    
Outstanding at beginning of period, nonvested (in dollars per share) $ 72.23  
Granted (in dollars per share) 88.68  
Outstanding at end of period, nonvested (in dollars per share) $ 77.92  
Fair value    
Cash paid $ 35 $ 27
v3.24.1.u1
Retirement Plans (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Pension Benefits    
Net periodic benefit income    
Service cost $ 17 $ 17
Interest cost 90 91
Expected return on plan assets (159) (152)
Amortization of net actuarial loss 1 0
Amortization of prior service cost 2 3
Net periodic benefit income (49) (41)
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    
Interest cost 2 2
Amortization of net actuarial loss (2) (2)
Amortization of prior service cost 0 (1)
Net periodic benefit income $ 0 $ (1)
v3.24.1.u1
Special Charges - Narrative (Details)
$ in Millions
 3 Months Ended 6 Months Ended 9 Months Ended
Mar. 30, 2024
USD ($)
Apr. 01, 2023
USD ($)
Mar. 30, 2024
USD ($)
Dec. 28, 2024
USD ($)
Jun. 29, 2024
position
Apr. 24, 2024
USD ($)
Special Charges [Line Items]            
Special charges $ 14 $ 0        
Future cash outlays 18          
2023 Restructuring Plan            
Special Charges [Line Items]            
Special charges 14   $ 140      
Severance costs 13   52      
Asset impairment charges 1          
2023 Restructuring Plan | Forecast            
Special Charges [Line Items]            
Number of positions expected to be eliminated | position         1,500  
Percentage of workforce reduction         4.00%  
2023 Restructuring Plan | Industrial            
Special Charges [Line Items]            
Special charges 2          
Severance costs     22      
Asset impairment charges     88      
2023 Restructuring Plan | Bell            
Special Charges [Line Items]            
Special charges 5          
Severance costs     18      
2023 Restructuring Plan | Textron Systems            
Special Charges [Line Items]            
Special charges $ 7          
Severance costs     $ 12      
2023 Restructuring Plan | Minimum | Forecast            
Special Charges [Line Items]            
Future cash outlays       $ 60    
2023 Restructuring Plan | Minimum | Subsequent Event            
Special Charges [Line Items]            
Additional expected costs           $ 25
2023 Restructuring Plan | Maximum | Forecast            
Special Charges [Line Items]            
Future cash outlays       $ 65    
2023 Restructuring Plan | Maximum | Subsequent Event            
Special Charges [Line Items]            
Additional expected costs           $ 30
v3.24.1.u1
Special Charges - Restructuring Reserve Activity (Details)
$ in Millions
 3 Months Ended
Mar. 30, 2024
USD ($)
Restructuring Reserve [Roll Forward]  
Beginning balance $ 47
Restructuring charges 13
Cash paid (18)
Foreign currency translation (1)
Ending balance 41
Severance Costs  
Restructuring Reserve [Roll Forward]  
Beginning balance 42
Restructuring charges 13
Cash paid (18)
Foreign currency translation (1)
Ending balance 36
Contract Terminations and Other  
Restructuring Reserve [Roll Forward]  
Beginning balance 5
Restructuring charges 0
Cash paid 0
Foreign currency translation 0
Ending balance $ 5
v3.24.1.u1
Income Taxes (Details)
 3 Months Ended
Mar. 30, 2024
Apr. 01, 2023
Income Tax Disclosure [Abstract]    
Effective income tax rate 15.20% 15.90%
U.S. federal statutory income tax rate 21.00% 21.00%