Textron (TXT) 10-Q 29 Jul 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jul. 03, 2021	Jul. 16, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 3, 2021
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		224,137,963
Entity Central Index Key	0000217346
Current Fiscal Year End Date	--01-01
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020
Revenues
Total revenues	$ 3,191	$ 2,472	$ 6,070	$ 5,249
Costs, expenses and other
Cost of sales	2,660	2,251	5,060	4,638
Selling and administrative expense	314	239	612	502
Interest expense	36	42	76	82
Special charges	4	78	10	117
Non-service components of pension and post-retirement income, net	(39)	(20)	(79)	(41)
Gain on business disposition	(2)	0	(17)	0
Total costs, expenses and other	2,973	2,590	5,662	5,298
Income (loss) from continuing operations before income taxes	218	(118)	408	(49)
Income tax expense (benefit)	34	(26)	53	(7)
Income (loss) from continuing operations	184	(92)	355	(42)
Loss from discontinued operations	(1)	0	(1)	0
Net income (loss)	$ 183	$ (92)	$ 354	$ (42)
Basic Earnings (loss) per share
Continuing Operations (in dollars per share)	$ 0.82	$ (0.40)	$ 1.57	$ (0.18)
Discontinued Operations (in dollars per share)	(0.01)	0	(0.01)	0
Basic Earnings (loss) per share (in dollars per share)	0.81	(0.40)	1.56	(0.18)
Diluted Earnings (loss) per share
Continuing Operations (in dollars per share)	0.81	(0.40)	1.56	(0.18)
Discontinued Operations (in dollars per share)	(0.01)	0	(0.01)	0
Diluted Earnings (loss) per share (in dollars per share)	$ 0.80	$ (0.40)	$ 1.55	$ (0.18)
Manufacturing revenues
Revenues
Total revenues	$ 3,179	$ 2,457	$ 6,043	$ 5,220
Finance revenues
Revenues
Total revenues	$ 12	$ 15	$ 27	$ 29

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 183	$ (92)	$ 354	$ (42)
Other comprehensive income, net of tax
Pension and postretirement benefits adjustments, net of reclassifications	30	36	60	73
Foreign currency translation adjustments, net of reclassifications	15	30	(3)	(10)
Deferred gains (losses) on hedge contracts, net of reclassifications	2	2	6	(7)
Other comprehensive income	47	68	63	56
Comprehensive income (loss)	$ 230	$ (24)	$ 417	$ 14

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) shares in Thousands, $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Assets
Inventories	$ 3,664	$ 3,513
Finance receivables, net	652	744
Total assets	15,379	15,443
Liabilities
Total liabilities	9,278	9,598
Shareholders’ equity
Common stock	29	29
Capital surplus	1,920	1,785
Treasury stock	(490)	(203)
Retained earnings	6,318	5,973
Accumulated other comprehensive loss	(1,676)	(1,739)
Total shareholders’ equity	6,101	5,845
Total liabilities and shareholders’ equity	$ 15,379	$ 15,443
Common shares outstanding (in shares)	224,402	226,444
Manufacturing group
Assets
Cash and equivalents	$ 1,995	$ 2,146
Accounts receivable, net	822	787
Inventories	3,664	3,513
Other current assets	874	950
Total current assets	7,355	7,396
Property, plant and equipment, less accumulated depreciation and amortization of $4,813 and $4,696, respectively	2,488	2,516
Goodwill	2,155	2,157
Other assets	2,456	2,436
Total assets	14,454	14,505
Liabilities
Current portion of long-term debt	7	509
Accounts payable	965	776
Other current liabilities	2,035	1,985
Total current liabilities	3,007	3,270
Other liabilities	2,327	2,357
Long-term debt	3,182	3,198
Total liabilities	8,516	8,825
Finance group
Assets
Cash and equivalents	193	108
Finance receivables, net	652	744
Other assets	80	86
Total assets	925	938
Liabilities
Other liabilities	118	111
Debt	644	662
Total liabilities	$ 762	$ 773

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization	$ 4,813	$ 4,696

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020
Cash flows from operating activities
Income (loss) from continuing operations	$ 355	$ (42)
Non-cash items:
Depreciation and amortization	188	188
Gain on business disposition	(17)	0
Deferred income taxes	16	(41)
Asset impairments and TRU inventory charge	6	110
Other, net	58	58
Changes in assets and liabilities:
Accounts receivable, net	(38)	157
Inventories	(162)	(244)
Other assets	22	51
Accounts payable	188	(400)
Other liabilities	103	17
Income taxes, net	8	3
Pension, net	(42)	(8)
Captive finance receivables, net	89	(14)
Other operating activities, net	(1)	13
Net cash provided by (used in) operating activities of continuing operations	773	(152)
Net cash used in operating activities of discontinued operations	(1)	0
Net cash provided by (used in) operating activities	772	(152)
Cash flows from investing activities
Capital expenditures	(128)	(96)
Net proceeds from business disposition	38	0
Proceeds from the sale of property, plant and equipment	0	5
Net proceeds from corporate-owned life insurance policies	0	17
Net cash used in acquisitions	0	(11)
Finance receivables repaid	19	20
Other investing activities, net	6	1
Net cash provided by (used in) investing activities	(65)	(64)
Cash flows from financing activities
Increase in short-term debt	0	499
Net proceeds from long-term debt	0	642
Proceeds from borrowings against corporate-owned life insurance policies	0	377
Payment On Borrowings Against Corporate Owned Life Insurance	0	(15)
Principal payments on long-term debt and nonrecourse debt	(553)	(229)
Purchases of Textron common stock	(287)	(54)
Dividends paid	(9)	(9)
Other financing activities, net	75	4
Net cash provided by (used in) financing activities	(774)	1,215
Effect of exchange rate changes on cash and equivalents	1	(10)
Net increase (decrease) in cash and equivalents	(66)	989
Cash and equivalents at beginning of period	2,254	1,357
Cash and equivalents at end of period	2,188	2,346
Manufacturing group
Cash flows from operating activities
Income (loss) from continuing operations	358	(47)
Non-cash items:
Depreciation and amortization	183	186
Gain on business disposition	(17)	0
Deferred income taxes	18	(39)
Asset impairments and TRU inventory charge	6	110
Other, net	60	54
Changes in assets and liabilities:
Accounts receivable, net	(38)	157
Inventories	(162)	(244)
Other assets	23	50
Accounts payable	188	(400)
Other liabilities	103	21
Income taxes, net	0	(1)
Pension, net	(42)	(8)
Other operating activities, net	(1)	13
Net cash provided by (used in) operating activities of continuing operations	679	(148)
Net cash used in operating activities of discontinued operations	(1)	0
Net cash provided by (used in) operating activities	678	(148)
Cash flows from investing activities
Capital expenditures	(128)	(96)
Net proceeds from business disposition	38	0
Proceeds from the sale of property, plant and equipment	0	5
Net proceeds from corporate-owned life insurance policies	0	17
Net cash used in acquisitions	0	(11)
Finance receivables repaid	0	0
Finance receivables originated	0	0
Other investing activities, net	0	0
Net cash provided by (used in) investing activities	(90)	(85)
Cash flows from financing activities
Increase in short-term debt	0	499
Net proceeds from long-term debt	0	642
Proceeds from borrowings against corporate-owned life insurance policies	0	377
Payment On Borrowings Against Corporate Owned Life Insurance	0	(15)
Principal payments on long-term debt and nonrecourse debt	(519)	(194)
Purchases of Textron common stock	(287)	(54)
Dividends paid	(9)	(9)
Other financing activities, net	75	(8)
Net cash provided by (used in) financing activities	(740)	1,238
Effect of exchange rate changes on cash and equivalents	1	(10)
Net increase (decrease) in cash and equivalents	(151)	995
Cash and equivalents at beginning of period	2,146	1,181
Cash and equivalents at end of period	1,995	2,176
Finance group
Cash flows from operating activities
Income (loss) from continuing operations	(3)	5
Non-cash items:
Depreciation and amortization	5	2
Gain on business disposition	0	0
Deferred income taxes	(2)	(2)
Asset impairments and TRU inventory charge	0	0
Other, net	(2)	4
Changes in assets and liabilities:
Accounts receivable, net	0	0
Inventories		0
Other assets	(1)	1
Accounts payable	0	0
Other liabilities	0	(4)
Income taxes, net	8	4
Pension, net	0	0
Other operating activities, net	0	0
Net cash provided by (used in) operating activities of continuing operations	5	10
Net cash used in operating activities of discontinued operations	0	0
Net cash provided by (used in) operating activities	5	10
Cash flows from investing activities
Capital expenditures	0	0
Net proceeds from business disposition	0	0
Proceeds from the sale of property, plant and equipment	0	0
Net proceeds from corporate-owned life insurance policies	0	0
Net cash used in acquisitions	0	0
Finance receivables repaid	137	65
Finance receivables originated	(29)	(59)
Other investing activities, net	6	1
Net cash provided by (used in) investing activities	114	7
Cash flows from financing activities
Increase in short-term debt	0	0
Net proceeds from long-term debt		0
Proceeds from borrowings against corporate-owned life insurance policies	0	0
Payment On Borrowings Against Corporate Owned Life Insurance	0	0
Principal payments on long-term debt and nonrecourse debt	(34)	(35)
Purchases of Textron common stock	0	0
Dividends paid	0	0
Other financing activities, net	0	12
Net cash provided by (used in) financing activities	(34)	(23)
Effect of exchange rate changes on cash and equivalents	0	0
Net increase (decrease) in cash and equivalents	85	(6)
Cash and equivalents at beginning of period	108	176
Cash and equivalents at end of period	$ 193	$ 170

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 03, 2021
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 January 2, 2021. 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 and Industrial segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements. All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group. Use of Estimates We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined. Contract Estimates For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable. In the second quarter of 2021 and 2020, our cumulative catch-up adjustments increased segment profit by $15 million and $17 million, respectively. These adjustments increased net income in the second quarter of 2021 by $11 million ($0.05 per diluted share) and decreased the net loss in the second quarter of 2020 by $13 million ($0.06 per share). Gross favorable profit adjustments totaled $40 million and $46 million in the second quarter of 2021 and 2020, respectively, and the gross unfavorable profit adjustments totaled $25 million and $29 million, respectively. We recognized revenues of $20 million and $22 million in the second quarter of 2021 and 2020, respectively, from performance obligations satisfied in prior periods that related to changes in profit booking rates.

Business Dispositions

Business Dispositions	6 Months Ended
	Jul. 03, 2021
Business Combinations [Abstract]
Business Dispositions	Business DispositionOn January 25, 2021, we completed the sale of TRU Simulation + Training Canada Inc. within our Textron Systems segment for net cash proceeds of $38 million and recorded an after-tax gain of $17 million.

Accounts Receivable and Finance

Accounts Receivable and Finance Receivables	6 Months Ended
	Jul. 03, 2021
Receivables [Abstract]
Accounts Receivable and Finance Receivables	Accounts Receivable and Finance Receivables Accounts Receivable Accounts receivable is composed of the following: (In millions) July 3, January 2, Commercial $ 706 $ 668 U.S. Government contracts 147 155 853 823 Allowance for credit losses (31) (36) Total accounts receivable, net $ 822 $ 787 Finance Receivables Finance receivables are presented in the following table: (In millions) July 3, January 2, Finance receivables $ 682 $ 779 Allowance for credit losses (30) (35) Total finance receivables, net $ 652 $ 744 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. Since the first quarter of 2020, the Finance segment has worked with certain customers impacted by the pandemic to provide payment relief through loan modifications. The types of temporary payment relief we offered to these customers included delays in the timing of required principal payments, deferrals of interest payments and/or interest-only payments. The majority of these modified loans have returned to paying principal and interest. For loan modifications that cover payment-relief periods in excess of six months, even if the loan was previously current, the loan is deemed a troubled debt restructuring and considered impaired. These impaired loans are classified as either nonaccrual or watchlist based on a review of the credit quality indicators as discussed above. During the first half of 2021, we modified finance receivable contracts for 18 customers with an outstanding balance at July 3, 2021 totaling $71 million, which were all categorized as troubled debt restructurings. Due to the nature of these restructurings, the financial effects were not significant. We had one customer default related to finance receivables previously modified as a troubled debt restructuring that had an insignificant outstanding balance. We believe our allowance for credit losses adequately covers our exposure on these loans as our estimated collateral values largely exceed the outstanding loan amounts. Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) July 3, January 2, Performing $ 575 $ 612 Watchlist 1 74 Nonaccrual 106 93 Nonaccrual as a percentage of finance receivables 15.54% 11.94% Current and less than 31 days past due $ 655 $ 738 31-60 days past due 10 12 61-90 days past due — 11 Over 90 days past due 17 18 60+ days contractual delinquency as a percentage of finance receivables 2.49% 3.72% At July 3, 2021, 30% of our performing finance receivables were originated since the beginning of 2020 and 31% were originated from 2017 to 2019. For finance receivables categorized as nonaccrual, 69% were originated from 2017 to 2019. On a quarterly basis, we evaluate individual larger balance accounts for impairment. A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality indicators described above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of principal and interest remains probable, but the account’s original terms have been, or are expected to be, significantly modified. If the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification. A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles. (In millions) July 3, January 2, Finance receivables evaluated collectively $ 481 $ 521 Finance receivables evaluated individually 107 163 Allowance for credit losses based on collective evaluation 24 28 Allowance for credit losses based on individual evaluation 6 7 Impaired finance receivables with specific allowance for credit losses $ 38 $ 46 Impaired finance receivables with no specific allowance for credit losses 69 117 Unpaid principal balance of impaired finance receivables 117 175 Allowance for credit losses on impaired finance receivables 6 7 Average recorded investment of impaired finance receivables 128 126

Inventories

Inventories	6 Months Ended
	Jul. 03, 2021
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are composed of the following: (In millions) July 3, January 2, Finished goods $ 1,137 $ 1,228 Work in process 1,712 1,455 Raw materials and components 815 830 Total inventories $ 3,664 $ 3,513

Warranty Liability

Warranty Liability	6 Months Ended
	Jul. 03, 2021
Payables and Accruals [Abstract]
Warranty Liability	Warranty Liability Changes in our warranty liability are as follows: Six Months Ended (In millions) July 3, July 4, Beginning of period $ 119 $ 141 Provision 31 22 Settlements (35) (29) Adjustments* 1 (12) End of period $ 116 $ 122 * Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Leases

Leases	6 Months Ended
	Jul. 03, 2021
Leases [Abstract]
Leases	Leases We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide. Our operating leases have remaining lease terms up to 28 years, which include options to extend the lease term for periods up to 25 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $16 million and $15 million in the second quarter of 2021 and 2020, respectively, and $32 million and $30 million in the first half of 2021 and 2020, respectively. Cash paid for operating leases totaled $33 million and $30 million in the first half of 2021 and 2020, respectively, which is classified in cash flows from operating activities. Noncash transactions totaled $63 million and $11 million in the first half of 2021 and 2020, respectively, reflecting the recognition of operating lease assets and liabilities for new or extended leases. Variable and short-term lease costs were not significant. Balance sheet and other information related to our operating leases is as follows: (Dollars in millions) July 3, January 2, Other assets $ 383 $ 349 Other current liabilities 57 47 Other liabilities 332 306 Weighted-average remaining lease term (in years) 10.6 11.6 Weighted-average discount rate 3.40% 4.17% At July 3, 2021, maturities of our operating lease liabilities on an undiscounted basis totaled $36 million for the remainder of 2021, $67 million for 2022, $57 million for 2023, $48 million for 2024, $42 million for 2025 and $238 million thereafter.

Derivative Instruments and Fair

Derivative Instruments and Fair Value Measurements	6 Months Ended
	Jul. 03, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Fair Value Measurements	Derivative Instruments and Fair Value Measurements We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We prioritize the assumptions that market participants would use in pricing the asset or liability into a three-tier fair value hierarchy. This fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs in which little or no market data exist, requiring companies to develop their own assumptions. Observable inputs that do not meet the criteria of Level 1, which include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets and liabilities in markets that are not active, are categorized as Level 2. Level 3 inputs are those that reflect our estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Valuation techniques for assets and liabilities measured using Level 3 inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data. These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain. Assets and Liabilities Recorded at Fair Value on a Recurring Basis We manufacture and sell our products in a number of countries throughout the world, and, therefore, we are exposed to movements in foreign currency exchange rates. We primarily utilize foreign currency exchange contracts with maturities of no more than three years to manage this volatility. These contracts qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales, inventory purchases and overhead expenses. Net gains and losses recognized in earnings and Accumulated other comprehensive loss on cash flow hedges, including gains and losses related to hedge ineffectiveness, were not significant in the periods presented. Our foreign currency exchange contracts are measured at fair value using the market method valuation technique. The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers. These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2. At July 3, 2021 and January 2, 2021, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $410 million and $318 million, respectively. At July 3, 2021, the fair value amounts of our foreign currency exchange contracts were a $11 million asset and a $2 million liability. At January 2, 2021, the fair value amounts of our foreign currency exchange contracts were a $5 million asset and a $2 million liability. Our Finance group enters into interest rate swap agreements to mitigate certain exposures to fluctuations in interest rates. By using these contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. At July 3, 2021, we had a swap agreement for a notional amount of $289 million with a maturity of August 2023 and a fair value of a $3 million liability. At January 2, 2021, we had a swap agreement for a notional amount of $294 million with a maturity of February 2022 and a fair value of a $4 million liability. The fair value of these swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2. Assets and Liabilities Not Recorded at Fair Value The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows: July 3, 2021 January 2, 2021 Carrying Estimated Carrying Estimated (In millions) Value Fair Value Value Fair Value Manufacturing group Debt, excluding leases $ (3,186) $ (3,430) $ (3,690) $ (3,986) Finance group Finance receivables, excluding leases 455 504 549 599 Debt (644) (607) (662) (587) 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.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jul. 03, 2021
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity A reconciliation of Shareholders’ equity is presented below: (In millions) Common Capital Treasury Retained Accumulated Total Three months ended July 3, 2021 Beginning of period $ 29 $ 1,845 $ (294) $ 6,139 $ (1,723) $ 5,996 Net income — — — 183 — 183 Other comprehensive income — — — — 47 47 Share-based compensation activity — 75 — — — 75 Dividends declared — — — (4) — (4) Purchases of common stock — — (196) — — (196) End of period $ 29 $ 1,920 $ (490) $ 6,318 $ (1,676) $ 6,101 Three months ended July 4, 2020 Beginning of period $ 29 $ 1,711 $ (74) $ 5,727 $ (1,859) $ 5,534 Net loss — — — (92) — (92) Other comprehensive income — — — — 68 68 Share-based compensation activity — 21 — — — 21 Dividends declared — — — (4) — (4) End of period $ 29 $ 1,732 $ (74) $ 5,631 $ (1,791) $ 5,527 Six months ended July 3, 2021 Beginning of period $ 29 $ 1,785 $ (203) $ 5,973 $ (1,739) $ 5,845 Net income — — — 354 — 354 Other comprehensive income — — — — 63 63 Share-based compensation activity — 135 — — — 135 Dividends declared — — — (9) — (9) Purchases of common stock — — (287) — — (287) End of period $ 29 $ 1,920 $ (490) $ 6,318 $ (1,676) $ 6,101 Six months ended July 4, 2020 Beginning of period $ 29 $ 1,674 $ (20) $ 5,682 $ (1,847) $ 5,518 Net loss — — — (42) — (42) Other comprehensive income — — — — 56 56 Share-based compensation activity — 58 — — — 58 Dividends declared — — — (9) — (9) Purchases of common stock — — (54) — — (54) End of period $ 29 $ 1,732 $ (74) $ 5,631 $ (1,791) $ 5,527 Dividends per share of common stock were $0.02 for both the second quarter of 2021 and 2020 and $0.04 for both the first half of 2021 and 2020. Earnings Per Share We calculate basic and diluted earnings (loss) per share (EPS) based on net income (loss), which approximates income (loss) 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 Six Months Ended (In thousands) July 3, July 4, July 3, July 4, Basic weighted-average shares outstanding 225,963 228,247 226,486 228,279 Dilutive effect of stock options 2,483 — 1,810 — Diluted weighted-average shares outstanding 228,446 228,247 228,296 228,279 For the first half of 2021, stock options to purchase 2.1 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive. As a result of incurring a net loss for the second quarter and first half of 2020, potential common shares of 0.1 million and 0.3 million, respectively, were excluded from diluted loss per share because the effect would have been anti-dilutive. In addition, stock options to purchase 8.9 million and 8.2 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for the second quarter and first half of 2020, respectively, as their effect would have been anti-dilutive. Accumulated Other Comprehensive Loss and Other Comprehensive Income The components of Accumulated other comprehensive loss are presented below: (In millions) Pension and Foreign Deferred Accumulated Balance at January 2, 2021 $ (1,780) $ 42 $ (1) $ (1,739) Other comprehensive loss before reclassifications — (17) 6 (11) Reclassified from Accumulated other comprehensive loss 60 14 — 74 Balance at July 3, 2021 $ (1,720) $ 39 $ 5 $ (1,676) Balance at January 4, 2020 $ (1,811) $ (36) $ — $ (1,847) Other comprehensive loss before reclassifications — (10) (5) (15) Reclassified from Accumulated other comprehensive loss 73 — (2) 71 Balance at July 4, 2020 $ (1,738) $ (46) $ (7) $ (1,791) The before and after-tax components of Other comprehensive income are presented below: July 3, 2021 July 4, 2020 (In millions) Pre-Tax Tax After-tax Pre-Tax Tax After-tax Three Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial loss* $ 38 $ (9) $ 29 $ 46 $ (11) $ 35 Amortization of prior service cost* 2 (1) 1 1 — 1 Pension and postretirement benefits adjustments, net 40 (10) 30 47 (11) 36 Foreign currency translation adjustments 15 — 15 30 — 30 Deferred gains (losses) on hedge contracts: Current deferrals 2 — 2 4 (1) 3 Reclassification adjustments — — — (2) 1 (1) Deferred gains (losses) on hedge contracts, net 2 — 2 2 — 2 Total $ 57 $ (10) $ 47 $ 79 $ (11) $ 68 Six Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial loss* $ 76 $ (18) $ 58 $ 92 $ (21) $ 71 Amortization of prior service cost* 4 (2) 2 3 (1) 2 Pension and postretirement benefits adjustments, net 80 (20) 60 95 (22) 73 Foreign currency translation adjustments: Foreign currency translation adjustments (17) — (17) (7) (3) (10) Business disposition 14 — 14 — — — Foreign currency translation adjustments, net (3) — (3) (7) (3) (10) Deferred gains (losses) on hedge contracts: Current deferrals 7 (1) 6 (5) — (5) Reclassification adjustments — — — (3) 1 (2) Deferred gains (losses) on hedge contracts, net 7 (1) 6 (8) 1 (7) Total $ 84 $ (21) $ 63 $ 80 $ (24) $ 56 *These components of other comprehensive income are included in the computation of net periodic pension cost (credit). See Note 16 of our 2020 Annual Report on Form 10-K for additional information.

Segment Information

Segment Information	6 Months Ended
	Jul. 03, 2021
Segment Reporting [Abstract]
Segment Information	Segment Information We operate in, and report financial information for, the following five business segments: Textron Aviation, Bell, Textron Systems, Industrial and Finance. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes interest expense, 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 (loss) from continuing operations before income taxes, are included in the table below: Three Months Ended Six Months Ended (In millions) July 3, July 4, July 3, July 4, Revenues Textron Aviation $ 1,161 $ 747 $ 2,026 $ 1,619 Bell 891 822 1,737 1,645 Textron Systems 333 326 661 654 Industrial 794 562 1,619 1,302 Finance 12 15 27 29 Total revenues $ 3,191 $ 2,472 $ 6,070 $ 5,249 Segment Profit Textron Aviation $ 96 $ (66) $ 143 $ (63) Bell 110 118 215 233 Textron Systems 48 37 99 63 Industrial 32 (11) 79 (2) Finance 3 4 9 7 Segment profit 289 82 545 238 Corporate expenses and other, net (37) (30) (77) (44) Interest expense, net for Manufacturing group (32) (37) (67) (71) Special charges* (4) (78) (10) (117) Gain on business disposition 2 — 17 — Inventory charge* — (55) — (55) Income (loss) from continuing operations before income taxes $ 218 $ (118) $ 408 $ (49) * See Note 12 for additional information.

Revenues

Revenues	6 Months Ended
	Jul. 03, 2021
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Disaggregation of Revenues Our revenues disaggregated by major product type are presented below: Three Months Ended Six Months Ended (In millions) July 3, July 4, July 3, July 4, Aircraft $ 797 $ 478 $ 1,332 $ 993 Aftermarket parts and services 364 269 694 626 Textron Aviation 1,161 747 2,026 1,619 Military aircraft and support programs 572 602 1,149 1,222 Commercial helicopters, parts and services 319 220 588 423 Bell 891 822 1,737 1,645 Air systems* 117 149 240 285 Land and sea systems* 64 63 121 123 Other* 152 114 300 246 Textron Systems 333 326 661 654 Fuel systems and functional components 440 271 937 736 Specialized vehicles 354 291 682 566 Industrial 794 562 1,619 1,302 Finance 12 15 27 29 Total revenues $ 3,191 $ 2,472 $ 6,070 $ 5,249 * Due to a reorganization of certain products within Textron Systems, prior year amounts have been reclassified to conform to the current year presentation for Air Systems, formerly referred to as “Unmanned Systems”, and Land and Sea Systems, formerly referred to as “Marine and Land Systems”. Other includes the following operating units and businesses: Electronic Systems, Weapons Systems, Lycoming, Airborne Tactical Advantage Company and, prior to its disposition, TRU Simulation + Training Canada Inc. Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Bell Textron Industrial Finance Total Three months ended July 3, 2021 Customer type: Commercial $ 1,127 $ 350 $ 67 $ 787 $ 12 $ 2,343 U.S. Government 34 541 266 7 — 848 Total revenues $ 1,161 $ 891 $ 333 $ 794 $ 12 $ 3,191 Geographic location: United States $ 885 $ 677 $ 297 $ 406 $ 6 $ 2,271 Europe 122 47 9 192 1 371 Asia and Australia 75 107 20 85 1 288 Other international 79 60 7 111 4 261 Total revenues $ 1,161 $ 891 $ 333 $ 794 $ 12 $ 3,191 Three months ended July 4, 2020 Customer type: Commercial $ 716 $ 216 $ 57 $ 559 $ 15 $ 1,563 U.S. Government 31 606 269 3 — 909 Total revenues $ 747 $ 822 $ 326 $ 562 $ 15 $ 2,472 Geographic location: United States $ 518 $ 681 $ 276 $ 287 $ 8 $ 1,770 Europe 70 21 11 127 — 229 Asia and Australia 50 66 15 76 — 207 Other international 109 54 24 72 7 266 Total revenues $ 747 $ 822 $ 326 $ 562 $ 15 $ 2,472 Six months ended July 3, 2021 Customer type: Commercial $ 1,973 $ 616 $ 125 $ 1,607 $ 27 $ 4,348 U.S. Government 53 1,121 536 12 — 1,722 Total revenues $ 2,026 $ 1,737 $ 661 $ 1,619 $ 27 $ 6,070 Geographic location: United States $ 1,494 $ 1,293 $ 586 $ 784 $ 14 $ 4,171 Europe 206 83 19 428 1 737 Asia and Australia 151 186 36 179 3 555 Other international 175 175 20 228 9 607 Total revenues $ 2,026 $ 1,737 $ 661 $ 1,619 $ 27 $ 6,070 Six months ended July 4, 2020 Customer type: Commercial $ 1,564 $ 414 $ 128 $ 1,298 $ 29 $ 3,433 U.S. Government 55 1,231 526 4 — 1,816 Total revenues $ 1,619 $ 1,645 $ 654 $ 1,302 $ 29 $ 5,249 Geographic location: United States $ 1,115 $ 1,371 $ 562 $ 616 $ 14 $ 3,678 Europe 154 45 23 355 1 578 Asia and Australia 173 116 35 129 1 454 Other international 177 113 34 202 13 539 Total revenues $ 1,619 $ 1,645 $ 654 $ 1,302 $ 29 $ 5,249 Remaining Performance Obligations Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our contracts that we expect to recognize as revenues in future periods when we perform under the contracts. These remaining obligations exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At July 3, 2021, we had $9.8 billion in remaining performance obligations of which we expect to recognize revenues of approximately 73% through 2022, an additional 23% through 2024, and the balance thereafter. Contract Assets and Liabilities

Retirement Plans

Retirement Plans	6 Months Ended
	Jul. 03, 2021
Retirement Benefits [Abstract]
Retirement Plans	Retirement PlansWe provide defined benefit pension plans and other postretirement benefits to eligible employees. The components of net periodic benefit cost (credit) for these plans are as follows: Three Months Ended Six Months Ended (In millions) July 3, July 4, July 3, July 4, Pension Benefits Service cost $ 29 $ 26 $ 58 $ 52 Interest cost 63 74 126 147 Expected return on plan assets (144) (143) (288) (287) Amortization of net actuarial loss 38 46 77 92 Amortization of prior service cost 3 3 6 6 Net periodic benefit cost (credit)* $ (11) $ 6 $ (21) $ 10 Postretirement Benefits Other Than Pensions Service cost $ — $ 1 $ 1 $ 2 Interest cost 2 2 3 4 Amortization of net actuarial gain — — (1) — Amortization of prior service credit (1) (2) (2) (3) Net periodic benefit cost $ 1 $ 1 $ 1 $ 3

Special Charges

Special Charges	6 Months Ended
	Jul. 03, 2021
Special Charges [Abstract]
Special Charges	Special Charges Special charges recorded in the second quarter and first half of 2021 and 2020 by segment and type of cost are presented in the table below. (In millions) Severance Contract Asset Total 2020 Other Asset Total Three months ended July 3, 2021 Industrial $ — $ 1 $ 3 $ 4 $ — $ 4 Total special charges $ — $ 1 $ 3 $ 4 $ — $ 4 Three months ended July 4, 2020 Textron Systems $ 14 $ 12 $ 14 $ 40 $ — $ 40 Textron Aviation 27 — 1 28 — 28 Industrial 8 — — 8 — 8 Corporate 2 — — 2 — 2 Total special charges $ 51 $ 12 $ 15 $ 78 $ — $ 78 Six months ended July 3, 2021 Industrial $ — $ 5 $ 5 $ 10 $ — $ 10 Total special charges $ — $ 5 $ 5 $ 10 $ — $ 10 Six months ended July 4, 2020 Textron Systems $ 14 $ 12 $ 14 $ 40 $ — $ 40 Textron Aviation 27 — 1 28 32 60 Industrial 8 — — 8 7 15 Corporate 2 — — 2 — 2 Total special charges $ 51 $ 12 $ 15 $ 78 $ 39 $ 117 2020 COVID-19 Restructuring Plan In the second quarter of 2020, we initiated a restructuring plan to reduce operating expenses through headcount reductions, facility consolidations and other actions in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic. This plan was expanded in the third quarter of 2020 to include additional headcount reductions and facility consolidations. Since inception of the plan, we have incurred total charges of $118 million, which included severance costs of $73 million for the termination of approximately 2,700 employees, asset impairment charges of $27 million and contract terminations and other costs of $18 million. Of these amounts, $44 million was incurred at Industrial, $37 million at Textron Systems, $33 million at Textron Aviation, and $4 million at Corporate. We expect to incur additional contract termination costs and other charges in the range of $10 million to $20 million, primarily in the Industrial segment, and expect the plan to be substantially completed in the third quarter of 2021. In the second quarter of 2020 and in connection with the restructuring plan, we ceased manufacturing at TRU Simulation + Training Canada Inc.’s facility in Montreal, Canada, resulting in a production suspension of our commercial air transport simulators. As a result of this action and market conditions, we incurred an inventory charge of $55 million, which was recorded in Cost of Sales, to write-down the related inventory to its net realizable value. Other Asset Impairments In the first quarter of 2020, we recognized $39 million of intangible asset impairment charges at the Textron Aviation and Industrial segments. Due to the impact of the COVID-19 pandemic, we experienced decreased demand for our products and services as our customers delayed or ceased orders due to the environment of economic uncertainty. In light of these conditions, Textron Aviation had temporarily shut down most aircraft production, including the King Air turboprop and Beechcraft piston product lines, and had instituted employee furloughs. Based on these events, we performed an interim impairment test of the indefinite-lived Beechcraft and King Air trade name intangible assets and recorded an impairment charge of $32 million. Restructuring Reserve Our restructuring reserve activity is summarized below: (In millions) Severance Contract Total Balance at January 2, 2021 $ 43 $ 9 $ 52 Provision for 2020 COVID-19 restructuring plan — 5 5 Cash paid (16) (5) (21) Foreign currency translation (1) — (1) Balance at July 3, 2021 $ 26 $ 9 $ 35 The majority of the remaining cash outlays of $35 million is expected to be paid in 2021. Severance costs generally are paid on a lump-sum basis and include outplacement costs, which are paid in accordance with normal payment terms.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 03, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate for the second quarter and first half of 2021 was 15.6% and 13.0%, respectively. In the second quarter and first half of 2021, 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. In the first half of 2021, the effective tax rate also included a $12 million benefit recognized for additional research and development credits related to prior years. Our effective tax rate for the second quarter and first half of 2020 was (22.0)% and (14.3)%, respectively, compared with the statutory rate of (21)%. In the second quarter and first half of 2020, we incurred special charges and an inventory charge in a non-U.S. jurisdiction where tax benefits cannot be realized, which were partially offset by a $14 million benefit recognized upon the release of a valuation allowance in a non-U.S. jurisdiction. In the first half of 2020, these items had a more significant impact on the effective tax rate due to the lower loss from continuing operations before income taxes compared to the second quarter of 2020.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 03, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesWe are subject to 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; production partners; product liability; patent and trademark infringement; employment disputes; and environmental, safety and health 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.

Basis of Presenation (Policies)

Basis of Presenation (Policies)	6 Months Ended
	Jul. 03, 2021
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.

Accounts Receivable and Finan_2

Accounts Receivable and Finance Receivables (Tables)	6 Months Ended
	Jul. 03, 2021
Receivables [Abstract]
Accounts Receivable	Accounts receivable is composed of the following: (In millions) July 3, January 2, Commercial $ 706 $ 668 U.S. Government contracts 147 155 853 823 Allowance for credit losses (31) (36) Total accounts receivable, net $ 822 $ 787
Finance Receivables	Finance receivables are presented in the following table: (In millions) July 3, January 2, Finance receivables $ 682 $ 779 Allowance for credit losses (30) (35) Total finance receivables, net $ 652 $ 744
Financing Receivables Categorized Based On Credit Quality Indicators	Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) July 3, January 2, Performing $ 575 $ 612 Watchlist 1 74 Nonaccrual 106 93 Nonaccrual as a percentage of finance receivables 15.54% 11.94% Current and less than 31 days past due $ 655 $ 738 31-60 days past due 10 12 61-90 days past due — 11 Over 90 days past due 17 18 60+ days contractual delinquency as a percentage of finance receivables 2.49% 3.72%
Financing Receivable Credit Quality Indicators	Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) July 3, January 2, Performing $ 575 $ 612 Watchlist 1 74 Nonaccrual 106 93 Nonaccrual as a percentage of finance receivables 15.54% 11.94% Current and less than 31 days past due $ 655 $ 738 31-60 days past due 10 12 61-90 days past due — 11 Over 90 days past due 17 18 60+ days contractual delinquency as a percentage of finance receivables 2.49% 3.72%
Finance Receivables and Allowance For Credit Losses Based on Impairment Evaluation	A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles. (In millions) July 3, January 2, Finance receivables evaluated collectively $ 481 $ 521 Finance receivables evaluated individually 107 163 Allowance for credit losses based on collective evaluation 24 28 Allowance for credit losses based on individual evaluation 6 7 Impaired finance receivables with specific allowance for credit losses $ 38 $ 46 Impaired finance receivables with no specific allowance for credit losses 69 117 Unpaid principal balance of impaired finance receivables 117 175 Allowance for credit losses on impaired finance receivables 6 7 Average recorded investment of impaired finance receivables 128 126

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jul. 03, 2021
Inventory Disclosure [Abstract]
Inventories	Inventories are composed of the following: (In millions) July 3, January 2, Finished goods $ 1,137 $ 1,228 Work in process 1,712 1,455 Raw materials and components 815 830 Total inventories $ 3,664 $ 3,513

Warranty Liability (Tables)

Warranty Liability (Tables)	6 Months Ended
	Jul. 03, 2021
Payables and Accruals [Abstract]
Changes in warranty liability	Changes in our warranty liability are as follows: Six Months Ended (In millions) July 3, July 4, Beginning of period $ 119 $ 141 Provision 31 22 Settlements (35) (29) Adjustments* 1 (12) End of period $ 116 $ 122 * Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jul. 03, 2021
Leases [Abstract]
Schedule of Balance Sheet and Other Information	Balance sheet and other information related to our operating leases is as follows: (Dollars in millions) July 3, January 2, Other assets $ 383 $ 349 Other current liabilities 57 47 Other liabilities 332 306 Weighted-average remaining lease term (in years) 10.6 11.6 Weighted-average discount rate 3.40% 4.17%

Derivative Instruments and Fa_2

Derivative Instruments and Fair Value Measurements (Tables)	6 Months Ended
	Jul. 03, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Carrying Value and Estimated and Fair Value of Financial Instruments	The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows: July 3, 2021 January 2, 2021 Carrying Estimated Carrying Estimated (In millions) Value Fair Value Value Fair Value Manufacturing group Debt, excluding leases $ (3,186) $ (3,430) $ (3,690) $ (3,986) Finance group Finance receivables, excluding leases 455 504 549 599 Debt (644) (607) (662) (587)

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jul. 03, 2021
Equity [Abstract]
Schedule of Shareholder's equity	A reconciliation of Shareholders’ equity is presented below: (In millions) Common Capital Treasury Retained Accumulated Total Three months ended July 3, 2021 Beginning of period $ 29 $ 1,845 $ (294) $ 6,139 $ (1,723) $ 5,996 Net income — — — 183 — 183 Other comprehensive income — — — — 47 47 Share-based compensation activity — 75 — — — 75 Dividends declared — — — (4) — (4) Purchases of common stock — — (196) — — (196) End of period $ 29 $ 1,920 $ (490) $ 6,318 $ (1,676) $ 6,101 Three months ended July 4, 2020 Beginning of period $ 29 $ 1,711 $ (74) $ 5,727 $ (1,859) $ 5,534 Net loss — — — (92) — (92) Other comprehensive income — — — — 68 68 Share-based compensation activity — 21 — — — 21 Dividends declared — — — (4) — (4) End of period $ 29 $ 1,732 $ (74) $ 5,631 $ (1,791) $ 5,527 Six months ended July 3, 2021 Beginning of period $ 29 $ 1,785 $ (203) $ 5,973 $ (1,739) $ 5,845 Net income — — — 354 — 354 Other comprehensive income — — — — 63 63 Share-based compensation activity — 135 — — — 135 Dividends declared — — — (9) — (9) Purchases of common stock — — (287) — — (287) End of period $ 29 $ 1,920 $ (490) $ 6,318 $ (1,676) $ 6,101 Six months ended July 4, 2020 Beginning of period $ 29 $ 1,674 $ (20) $ 5,682 $ (1,847) $ 5,518 Net loss — — — (42) — (42) Other comprehensive income — — — — 56 56 Share-based compensation activity — 58 — — — 58 Dividends declared — — — (9) — (9) Purchases of common stock — — (54) — — (54) End of period $ 29 $ 1,732 $ (74) $ 5,631 $ (1,791) $ 5,527
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 Six Months Ended (In thousands) July 3, July 4, July 3, July 4, Basic weighted-average shares outstanding 225,963 228,247 226,486 228,279 Dilutive effect of stock options 2,483 — 1,810 — Diluted weighted-average shares outstanding 228,446 228,247 228,296 228,279
Schedule of Components of Accumulated Other Comprehensive Loss	The components of Accumulated other comprehensive loss are presented below: (In millions) Pension and Foreign Deferred Accumulated Balance at January 2, 2021 $ (1,780) $ 42 $ (1) $ (1,739) Other comprehensive loss before reclassifications — (17) 6 (11) Reclassified from Accumulated other comprehensive loss 60 14 — 74 Balance at July 3, 2021 $ (1,720) $ 39 $ 5 $ (1,676) Balance at January 4, 2020 $ (1,811) $ (36) $ — $ (1,847) Other comprehensive loss before reclassifications — (10) (5) (15) Reclassified from Accumulated other comprehensive loss 73 — (2) 71 Balance at July 4, 2020 $ (1,738) $ (46) $ (7) $ (1,791)
Schedule of Before and After-Tax Components of Other Comprehensive Income (Loss)	The before and after-tax components of Other comprehensive income are presented below: July 3, 2021 July 4, 2020 (In millions) Pre-Tax Tax After-tax Pre-Tax Tax After-tax Three Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial loss* $ 38 $ (9) $ 29 $ 46 $ (11) $ 35 Amortization of prior service cost* 2 (1) 1 1 — 1 Pension and postretirement benefits adjustments, net 40 (10) 30 47 (11) 36 Foreign currency translation adjustments 15 — 15 30 — 30 Deferred gains (losses) on hedge contracts: Current deferrals 2 — 2 4 (1) 3 Reclassification adjustments — — — (2) 1 (1) Deferred gains (losses) on hedge contracts, net 2 — 2 2 — 2 Total $ 57 $ (10) $ 47 $ 79 $ (11) $ 68 Six Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial loss* $ 76 $ (18) $ 58 $ 92 $ (21) $ 71 Amortization of prior service cost* 4 (2) 2 3 (1) 2 Pension and postretirement benefits adjustments, net 80 (20) 60 95 (22) 73 Foreign currency translation adjustments: Foreign currency translation adjustments (17) — (17) (7) (3) (10) Business disposition 14 — 14 — — — Foreign currency translation adjustments, net (3) — (3) (7) (3) (10) Deferred gains (losses) on hedge contracts: Current deferrals 7 (1) 6 (5) — (5) Reclassification adjustments — — — (3) 1 (2) Deferred gains (losses) on hedge contracts, net 7 (1) 6 (8) 1 (7) Total $ 84 $ (21) $ 63 $ 80 $ (24) $ 56

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jul. 03, 2021
Segment Reporting [Abstract]
Revenues by Segment and Reconciliation of Segment Profit Income (Loss) Before Income Taxes	Our revenues by segment, along with a reconciliation of segment profit to income (loss) from continuing operations before income taxes, are included in the table below: Three Months Ended Six Months Ended (In millions) July 3, July 4, July 3, July 4, Revenues Textron Aviation $ 1,161 $ 747 $ 2,026 $ 1,619 Bell 891 822 1,737 1,645 Textron Systems 333 326 661 654 Industrial 794 562 1,619 1,302 Finance 12 15 27 29 Total revenues $ 3,191 $ 2,472 $ 6,070 $ 5,249 Segment Profit Textron Aviation $ 96 $ (66) $ 143 $ (63) Bell 110 118 215 233 Textron Systems 48 37 99 63 Industrial 32 (11) 79 (2) Finance 3 4 9 7 Segment profit 289 82 545 238 Corporate expenses and other, net (37) (30) (77) (44) Interest expense, net for Manufacturing group (32) (37) (67) (71) Special charges* (4) (78) (10) (117) Gain on business disposition 2 — 17 — Inventory charge* — (55) — (55) Income (loss) from continuing operations before income taxes $ 218 $ (118) $ 408 $ (49) * See Note 12 for additional information.

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Jul. 03, 2021
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Our revenues disaggregated by major product type are presented below: Three Months Ended Six Months Ended (In millions) July 3, July 4, July 3, July 4, Aircraft $ 797 $ 478 $ 1,332 $ 993 Aftermarket parts and services 364 269 694 626 Textron Aviation 1,161 747 2,026 1,619 Military aircraft and support programs 572 602 1,149 1,222 Commercial helicopters, parts and services 319 220 588 423 Bell 891 822 1,737 1,645 Air systems* 117 149 240 285 Land and sea systems* 64 63 121 123 Other* 152 114 300 246 Textron Systems 333 326 661 654 Fuel systems and functional components 440 271 937 736 Specialized vehicles 354 291 682 566 Industrial 794 562 1,619 1,302 Finance 12 15 27 29 Total revenues $ 3,191 $ 2,472 $ 6,070 $ 5,249 * Due to a reorganization of certain products within Textron Systems, prior year amounts have been reclassified to conform to the current year presentation for Air Systems, formerly referred to as “Unmanned Systems”, and Land and Sea Systems, formerly referred to as “Marine and Land Systems”. Other includes the following operating units and businesses: Electronic Systems, Weapons Systems, Lycoming, Airborne Tactical Advantage Company and, prior to its disposition, TRU Simulation + Training Canada Inc. Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Bell Textron Industrial Finance Total Three months ended July 3, 2021 Customer type: Commercial $ 1,127 $ 350 $ 67 $ 787 $ 12 $ 2,343 U.S. Government 34 541 266 7 — 848 Total revenues $ 1,161 $ 891 $ 333 $ 794 $ 12 $ 3,191 Geographic location: United States $ 885 $ 677 $ 297 $ 406 $ 6 $ 2,271 Europe 122 47 9 192 1 371 Asia and Australia 75 107 20 85 1 288 Other international 79 60 7 111 4 261 Total revenues $ 1,161 $ 891 $ 333 $ 794 $ 12 $ 3,191 Three months ended July 4, 2020 Customer type: Commercial $ 716 $ 216 $ 57 $ 559 $ 15 $ 1,563 U.S. Government 31 606 269 3 — 909 Total revenues $ 747 $ 822 $ 326 $ 562 $ 15 $ 2,472 Geographic location: United States $ 518 $ 681 $ 276 $ 287 $ 8 $ 1,770 Europe 70 21 11 127 — 229 Asia and Australia 50 66 15 76 — 207 Other international 109 54 24 72 7 266 Total revenues $ 747 $ 822 $ 326 $ 562 $ 15 $ 2,472 Six months ended July 3, 2021 Customer type: Commercial $ 1,973 $ 616 $ 125 $ 1,607 $ 27 $ 4,348 U.S. Government 53 1,121 536 12 — 1,722 Total revenues $ 2,026 $ 1,737 $ 661 $ 1,619 $ 27 $ 6,070 Geographic location: United States $ 1,494 $ 1,293 $ 586 $ 784 $ 14 $ 4,171 Europe 206 83 19 428 1 737 Asia and Australia 151 186 36 179 3 555 Other international 175 175 20 228 9 607 Total revenues $ 2,026 $ 1,737 $ 661 $ 1,619 $ 27 $ 6,070 Six months ended July 4, 2020 Customer type: Commercial $ 1,564 $ 414 $ 128 $ 1,298 $ 29 $ 3,433 U.S. Government 55 1,231 526 4 — 1,816 Total revenues $ 1,619 $ 1,645 $ 654 $ 1,302 $ 29 $ 5,249 Geographic location: United States $ 1,115 $ 1,371 $ 562 $ 616 $ 14 $ 3,678 Europe 154 45 23 355 1 578 Asia and Australia 173 116 35 129 1 454 Other international 177 113 34 202 13 539 Total revenues $ 1,619 $ 1,645 $ 654 $ 1,302 $ 29 $ 5,249

Retirement Plans (Tables)

Retirement Plans (Tables)	6 Months Ended
	Jul. 03, 2021
Retirement Benefits [Abstract]
Schedule of Components of Net Periodic Benefit Cost (Credit)	The components of net periodic benefit cost (credit) for these plans are as follows: Three Months Ended Six Months Ended (In millions) July 3, July 4, July 3, July 4, Pension Benefits Service cost $ 29 $ 26 $ 58 $ 52 Interest cost 63 74 126 147 Expected return on plan assets (144) (143) (288) (287) Amortization of net actuarial loss 38 46 77 92 Amortization of prior service cost 3 3 6 6 Net periodic benefit cost (credit)* $ (11) $ 6 $ (21) $ 10 Postretirement Benefits Other Than Pensions Service cost $ — $ 1 $ 1 $ 2 Interest cost 2 2 3 4 Amortization of net actuarial gain — — (1) — Amortization of prior service credit (1) (2) (2) (3) Net periodic benefit cost $ 1 $ 1 $ 1 $ 3 * Excludes the cost associated with the defined contribution component, included in certain of our U.S.-based defined benefit pension plans, that totaled $3 million and $6 million for the second quarter and first half of 2021, respectively, and $3 million and $6 million for the second quarter and first half of 2020, respectively.

Special Charges (Tables)

Special Charges (Tables)	6 Months Ended
	Jul. 03, 2021
Special Charges [Abstract]
Schedule of Special Charges	Special charges recorded in the second quarter and first half of 2021 and 2020 by segment and type of cost are presented in the table below. (In millions) Severance Contract Asset Total 2020 Other Asset Total Three months ended July 3, 2021 Industrial $ — $ 1 $ 3 $ 4 $ — $ 4 Total special charges $ — $ 1 $ 3 $ 4 $ — $ 4 Three months ended July 4, 2020 Textron Systems $ 14 $ 12 $ 14 $ 40 $ — $ 40 Textron Aviation 27 — 1 28 — 28 Industrial 8 — — 8 — 8 Corporate 2 — — 2 — 2 Total special charges $ 51 $ 12 $ 15 $ 78 $ — $ 78 Six months ended July 3, 2021 Industrial $ — $ 5 $ 5 $ 10 $ — $ 10 Total special charges $ — $ 5 $ 5 $ 10 $ — $ 10 Six months ended July 4, 2020 Textron Systems $ 14 $ 12 $ 14 $ 40 $ — $ 40 Textron Aviation 27 — 1 28 32 60 Industrial 8 — — 8 7 15 Corporate 2 — — 2 — 2 Total special charges $ 51 $ 12 $ 15 $ 78 $ 39 $ 117
Schedule of Restructuring Reserve Activity	Our restructuring reserve activity is summarized below: (In millions) Severance Contract Total Balance at January 2, 2021 $ 43 $ 9 $ 52 Provision for 2020 COVID-19 restructuring plan — 5 5 Cash paid (16) (5) (21) Foreign currency translation (1) — (1) Balance at July 3, 2021 $ 26 $ 9 $ 35

Basis of Presentation (Details)

Basis of Presentation (Details) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021USD ($)$ / shares	Jul. 04, 2020USD ($)$ / shares	Jul. 03, 2021USD ($)borrowingGroup$ / shares	Jul. 04, 2020USD ($)$ / shares
Number of borrowing groups | borrowingGroup			2
Cumulative catch-up method
Cumulative catch up adjustments	$ 15	$ 17	$ 29	$ 19
Change in accounting estimate financial effect, increase in net income or decrease in net loss	$ 11	$ 13	$ 22	$ 14
Change in accounting estimate financial effect increase in earnings per share diluted or decrease in earnings per share diluted | $ / shares	$ 0.05	$ 0.06	$ 0.10	$ 0.06
Gross favorable adjustments	$ 40	$ 46	$ 76	$ 73
Gross unfavorable adjustments	25	29	47	54
Recognized revenue form performance obligations satisfied in prior periods	$ 20	$ 22	$ 38	$ 26

Business Dispositions (Details)

Business Dispositions (Details) - USD ($) $ in Millions	Jan. 25, 2021	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net proceeds from business disposition				$ 38	$ 0
After tax gain		$ 2	$ 0	$ 17	$ 0
Disposition of businesses | TRU Non-US
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net proceeds from business disposition	$ 38
After tax gain	$ 17

Accounts Receivable and Finan_3

Accounts Receivable and Finance Receivables - Accounts Receivable (Details) - Manufacturing group - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Accounts Receivable
Accounts receivable, gross	$ 853	$ 823
Allowance for credit losses	(31)	(36)
Total accounts receivable, net	822	787
Commercial
Accounts Receivable
Accounts receivable, gross	706	668
U.S. Government
Accounts Receivable
Accounts receivable, gross	$ 147	$ 155

Accounts Receivable and Finan_4

Accounts Receivable and Finance Receivables - Finance Receivables (Details) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Finance Receivables
Finance receivables	$ 682	$ 779
Allowance for credit losses	(30)	(35)
Total finance receivables, net	$ 652	$ 744

Accounts Receivable and Finan_5

Accounts Receivable and Finance Receivables - Finance Receivables Portfolio Quality (Details) $ in Millions	6 Months Ended
	Jul. 03, 2021USD ($)customer	Jan. 02, 2021USD ($)
Finance receivables categorized based on the internally assigned credit quality
Number of customers finance receivable contracts modified | customer	18
Finance receivables categorized as troubled debt restructurings	$ 71
Customer default related to finance receivables previously modified as a troubled debt restructuring that had an insignificant outstanding balance | customer	1
Finance receivables	$ 682	$ 779
60+ days contractual delinquency as a percentage of finance receivables	2.49%	3.72%
Performing
Finance receivables categorized based on the internally assigned credit quality
Finance receivables	$ 575	$ 612
Nonperforming
Finance receivables categorized based on the internally assigned credit quality
Payment relief period over which loan is considered impaired	6 months
Current and less than 31 days past due
Finance receivables categorized based on the internally assigned credit quality
Finance receivables	$ 655	738
31-60 days past due
Finance receivables categorized based on the internally assigned credit quality
Finance receivables	10	12
61-90 days past due
Finance receivables categorized based on the internally assigned credit quality
Finance receivables	0	11
Over 90 days past due
Finance receivables categorized based on the internally assigned credit quality
Finance receivables	$ 17	18
Performing
Finance receivables categorized based on the internally assigned credit quality
Financing receivable originating since the beginning 2020	30.00%
Financing receivable originating from 2017 to 2019	31.00%
Watchlist | Nonperforming
Finance receivables categorized based on the internally assigned credit quality
Finance receivables	$ 1	74
Nonaccrual | Nonperforming
Finance receivables categorized based on the internally assigned credit quality
Finance receivables	$ 106	$ 93
Financing receivable originating from 2017 to 2019	69.00%
Nonperforming
Finance receivables categorized based on the internally assigned credit quality
Nonaccrual as a percentage of finance receivables	15.54%	11.94%
Minimum | Nonperforming
Finance receivables categorized based on the internally assigned credit quality
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful	3 months

Accounts Receivable and Finan_6

Accounts Receivable and Finance Receivables - Finance Receivables and Allowance for Losses Based on the Results of Impairment Evaluation (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jul. 03, 2021	Jan. 02, 2021
Finance receivables
Finance receivables evaluated collectively	$ 481	$ 521
Finance receivables evaluated individually	107	163
Allowance for credit losses based on collective evaluation	24	28
Allowance for credit losses based on individual evaluation	6	7
Allowance for credit losses based on individual evaluation	38	46
Impaired finance receivables with no specific allowance for credit losses	69	117
Unpaid principal balance of impaired finance receivables	117	175
Allowance for credit losses on impaired finance receivables	6	7
Average recorded investment of impaired finance receivables	$ 128	$ 126

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Inventories
Finished goods	$ 1,137	$ 1,228
Work in process	1,712	1,455
Raw materials and components	815	830
Total inventories	$ 3,664	$ 3,513

Warranty Liability (Details)

Warranty Liability (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020
Changes in warranty liability
Beginning of period	$ 119	$ 141
Provision	31	22
Settlements	(35)	(29)
Adjustments	1	(12)
End of period	$ 116	$ 122

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020
Leases [Abstract]
Remaining lease terms	28 years		28 years
Operating lease - option to extend the lease, term	25 years		25 years
Operating lease - option to extend			true
Operating lease cost	$ 16	$ 15	$ 32	$ 30
Cash paid for operating lease liabilities			33	30
Noncash lease transactions			$ 63	$ 11

Leases - Balance Sheet and Othe

Leases - Balance Sheet and Other Information (Details) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Operating leases:
Other assets	$ 383	$ 349
Other current liabilities	57	47
Other liabilities	$ 332	$ 306
Weighted-average remaining lease term (in years)
Weighted-average remaining lease term (in years)	10 years 7 months 6 days	11 years 7 months 6 days
Weighted-average discount rate
Weighted-average discount rate	3.40%	4.17%
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other liabilities

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) $ in Millions	Jul. 03, 2021USD ($)
Operating Leases
Remainder of 2021	$ 36
2022	67
2023	57
2024	48
2025	42
Thereafter	$ 238

Derivative Instruments and Fa_3

Derivative Instruments and Fair Value Measurements - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($)	6 Months Ended
	Jul. 03, 2021	Jan. 02, 2021
Manufacturing group
Fair value of derivative instruments
Forward exchange contracts maximum maturity period	3 years
Manufacturing group | Foreign currency exchange contracts | Cash Flow Hedging
Fair value of derivative instruments
Notional amounts	$ 410,000,000	$ 318,000,000
Manufacturing group | Level 2 | Foreign currency exchange contracts | Cash Flow Hedging
Fair value of derivative instruments
Fair value of foreign currency exchange contracts, asset	11,000,000	5,000,000
Fair value of foreign currency exchange contracts, liability	2,000,000	2,000,000
Finance group | Interest Rate Swap | Cash Flow Hedging
Fair value of derivative instruments
Notional amounts	289,000,000	294,000,000
Fair value of foreign currency exchange contracts, liability	$ 3,000,000	$ 4,000,000

Derivative Instruments and Fa_4

Derivative Instruments and Fair Value Measurements - Assets and Liabilities not Recorded at Fair Value (Details) - USD ($) $ in Millions	Jul. 03, 2021	Jan. 02, 2021
Manufacturing group | Carrying Value
Financial instruments not reflected at fair value
Debt, excluding leases	$ (3,186)	$ (3,690)
Manufacturing group | Estimated Fair value
Financial instruments not reflected at fair value
Debt, excluding leases	(3,430)	(3,986)
Finance group | Carrying Value
Financial instruments not reflected at fair value
Finance receivables, excluding leases	455	549
Debt, carrying value	(644)	(662)
Finance group | Estimated Fair value
Financial instruments not reflected at fair value
Finance receivables, excluding leases	504	599
Debt, estimated fair value	$ (607)	$ (587)

Shareholders' Equity - Reconcil

Shareholders' Equity - Reconciliation of Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 5,996	$ 5,534	$ 5,845	$ 5,518
Net income (loss)	183	(92)	354	(42)
Other comprehensive income	47	68	63	56
Share-based compensation activity	75	21	135	58
Dividends declared	(4)	(4)	(9)	(9)
Purchases of common stock	(196)		(287)	(54)
Balance at end of period	$ 6,101	$ 5,527	$ 6,101	$ 5,527
Dividends per share of common stock (in dollars per share)	$ 0.02	$ 0.02	$ 0.04	$ 0.04
Common Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 29	$ 29	$ 29	$ 29
Balance at end of period	29	29	29	29
Capital Surplus
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	1,845	1,711	1,785	1,674
Share-based compensation activity	75	21	135	58
Balance at end of period	1,920	1,732	1,920	1,732
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(294)	(74)	(203)	(20)
Purchases of common stock	(196)		(287)	(54)
Balance at end of period	(490)	(74)	(490)	(74)
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	6,139	5,727	5,973	5,682
Net income (loss)	183	(92)	354	(42)
Dividends declared	(4)	(4)	(9)	(9)
Balance at end of period	6,318	5,631	6,318	5,631
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(1,723)	(1,859)	(1,739)	(1,847)
Other comprehensive income	47	68	63	56
Balance at end of period	$ (1,676)	$ (1,791)	$ (1,676)	$ (1,791)

Shareholders' Equity - Earnings

Shareholders' Equity - Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020
Weighted-average shares outstanding for basic and diluted EPS
Basic weighted-average shares outstanding (in shares)	225,963	228,247	226,486	228,279
Dilutive effect of stock options (in shares)	2,483	0	1,810	0
Diluted weighted-average shares outstanding (in shares)	228,446	228,247	228,296	228,279
Anti-dilutive effect of weighted average shares (in shares)		100		300
Stock options
Weighted-average shares outstanding for basic and diluted EPS
Anti-dilutive effect of weighted average shares (in shares)		8,900	2,100	8,200

Shareholders' Equity - Accumula

Shareholders' Equity - Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning of period	$ (1,739)
Other comprehensive loss before reclassifications	(11)	$ (15)
Reclassified from Accumulated other comprehensive loss	74	71
End of period	(1,676)
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning of period	(1,739)	(1,847)
End of period	(1,676)	(1,791)
Pension and Postretirement Benefits Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning of period	(1,780)	(1,811)
Other comprehensive loss before reclassifications	0	0
Reclassified from Accumulated other comprehensive loss	60	73
End of period	(1,720)	(1,738)
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning of period	42	(36)
Other comprehensive loss before reclassifications	(17)	(10)
Reclassified from Accumulated other comprehensive loss	14	0
End of period	39	(46)
Deferred Gains (Losses) on Hedge Contracts
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning of period	(1)	0
Other comprehensive loss before reclassifications	6	(5)
Reclassified from Accumulated other comprehensive loss	0	(2)
End of period	$ 5	$ (7)

Shareholders' Equity - Before a

Shareholders' Equity - Before and After Tax Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020
Pension and postretirement benefits adjustments, pre-tax:
Amortization of net actuarial loss, pre-tax	$ 38	$ 46	$ 76	$ 92
Amortization of prior service cost, pre-tax	2	1	4	3
Pension and postretirement benefits adjustments, net, pre-tax	40	47	80	95
Pension and postretirement benefits adjustments, tax:
Amortization of net actuarial loss, tax (expense) benefit	(9)	(11)	(18)	(21)
Amortization of prior service cost, tax (expense) benefit	(1)	0	(2)	(1)
Pension and postretirement benefits adjustments, net, tax (expense) benefit	(10)	(11)	(20)	(22)
Pension and postretirement benefits adjustments, after-tax:
Amortization of net actuarial loss, after tax	29	35	58	71
Amortization of prior period service cost, after tax	1	1	2	2
Pension and postretirement benefits adjustments, net, after-tax	30	36	60	73
Foreign currency translation adjustments, pre-tax:
Foreign currency translation adjustments			(17)	(7)
Business disposition, Pre-Tax Amount			14	0
Foreign currency translation adjustments, net, pre-tax	15	30	(3)	(7)
Foreign currency translation adjustments, tax:
Foreign currency translation adjustments, tax (expense) benefit			0	(3)
Business disposition, Tax (Expense) Benefit			0	0
Foreign currency translation adjustments, net, tax (expense) benefit	0	0	0	(3)
Foreign currency translation adjustments, after-tax:
Foreign currency translation adjustments, after tax			(17)	(10)
Business disposition, After Tax Amount			14	0
Foreign currency translation adjustments, net of reclassifications	15	30	(3)	(10)
Deferred gains (losses) on hedge contracts, pre-tax:
Current deferrals, pre-tax	2	4	7	(5)
Reclassification adjustments, pre-tax	0	(2)	0	(3)
Deferred gains (losses) on hedge contracts, net, pre-tax	2	2	7	(8)
Other comprehensive income (loss), pre-tax	57	79	84	80
Deferred gains (losses) on hedge contracts, tax:
Current deferrals, tax (expense) benefit	0	(1)	(1)	0
Reclassification adjustments, tax (expense) benefit	0	1	0	1
Deferred gains (losses) on hedge contracts, net, tax (expense) benefit	0	0	(1)	1
Other comprehensive income (loss), tax (expense) benefit	(10)	(11)	(21)	(24)
Deferred gains (losses) on hedge contracts, after-tax:
Current deferrals, after-tax	2	3	6	(5)
Reclassification adjustments, after-tax	0	1	0	2
Deferred gains (losses) on hedge contracts, net, after-tax	2	2	6	(7)
Other comprehensive income	$ 47	$ 68	$ 63	$ 56

Segment Information - Operating

Segment Information - Operating and Reportable Segments (Details)	6 Months Ended
	Jul. 03, 2021businessSegment
Operating and reportable business segments
Number of business operating segments	5
Number of reportable business segments	5

Segment Information - Revenue b

Segment Information - Revenue by Segment and Reconciliation of Segment Profit to Income Before Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020
Revenues
Total revenues	$ 3,191	$ 2,472	$ 6,070	$ 5,249
Reconciliation of segment profit to income from continuing operations before income taxes
Special charges	(4)	(78)	(10)	(117)
Gain on business disposition	2	0	17	0
Income (loss) from continuing operations before income taxes	218	(118)	408	(49)
Operating Segment
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	289	82	545	238
Reconciling Items
Reconciliation of segment profit to income from continuing operations before income taxes
Corporate expenses and other, net	37	30	(77)	(44)
Special charges	(4)	78	(10)	(117)
Gain on business disposition	2	0	17	0
Inventory charge	0	(55)	0	(55)
Textron Aviation
Revenues
Total revenues	1,161	747	2,026	1,619
Textron Aviation | Operating Segment
Reconciliation of segment profit to income from continuing operations before income taxes
Special charges		(28)		(60)
Bell
Revenues
Total revenues	891	822	1,737	1,645
Textron Systems
Revenues
Total revenues	333	326	661	654
Textron Systems | Operating Segment
Reconciliation of segment profit to income from continuing operations before income taxes
Special charges		(40)		(40)
Industrial
Revenues
Total revenues	794	562	1,619	1,302
Industrial | Operating Segment
Reconciliation of segment profit to income from continuing operations before income taxes
Special charges	(4)	(8)	(10)	(15)
Finance
Revenues
Total revenues	12	15	27	29
Finance | Operating Segment
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	3	4	9	7
Manufacturing group
Reconciliation of segment profit to income from continuing operations before income taxes
Gain on business disposition			17	0
Manufacturing group | Reconciling Items
Reconciliation of segment profit to income from continuing operations before income taxes
Interest expense, net for Manufacturing group	(32)	(37)	(67)	(71)
Manufacturing group | Textron Aviation | Operating Segment
Revenues
Total revenues	1,161	747	2,026	1,619
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	96	(66)	143	(63)
Manufacturing group | Bell | Operating Segment
Revenues
Total revenues	891	822	1,737	1,645
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	110	118	215	233
Manufacturing group | Textron Systems | Operating Segment
Revenues
Total revenues	333	326	661	654
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	48	37	99	63
Manufacturing group | Industrial | Operating Segment
Revenues
Total revenues	794	562	1,619	1,302
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	32	(11)	79	(2)
Finance group
Reconciliation of segment profit to income from continuing operations before income taxes
Gain on business disposition			0	0
Finance group | Finance | Operating Segment
Revenues
Total revenues	$ 12	$ 15	$ 27	$ 29

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020
Revenues
Revenues	$ 3,191	$ 2,472	$ 6,070	$ 5,249
United States
Revenues
Revenues	2,271	1,770	4,171	3,678
Europe
Revenues
Revenues	371	229	737	578
Asia and Australia
Revenues
Revenues	288	207	555	454
Other international
Revenues
Revenues	261	266	607	539
Commercial
Revenues
Revenues	2,343	1,563	4,348	3,433
U.S. Government
Revenues
Revenues	848	909	1,722	1,816
Textron Aviation
Revenues
Revenues	1,161	747	2,026	1,619
Textron Aviation | United States
Revenues
Revenues	885	518	1,494	1,115
Textron Aviation | Europe
Revenues
Revenues	122	70	206	154
Textron Aviation | Asia and Australia
Revenues
Revenues	75	50	151	173
Textron Aviation | Other international
Revenues
Revenues	79	109	175	177
Textron Aviation | Commercial
Revenues
Revenues	1,127	716	1,973	1,564
Textron Aviation | U.S. Government
Revenues
Revenues	34	31	53	55
Textron Aviation | Aircraft
Revenues
Revenues	797	478	1,332	993
Textron Aviation | Aftermarket parts and services
Revenues
Revenues	364	269	694	626
Bell
Revenues
Revenues	891	822	1,737	1,645
Bell | United States
Revenues
Revenues	677	681	1,293	1,371
Bell | Europe
Revenues
Revenues	47	21	83	45
Bell | Asia and Australia
Revenues
Revenues	107	66	186	116
Bell | Other international
Revenues
Revenues	60	54	175	113
Bell | Commercial
Revenues
Revenues	350	216	616	414
Bell | U.S. Government
Revenues
Revenues	541	606	1,121	1,231
Bell | Military aircraft and support programs
Revenues
Revenues	572	602	1,149	1,222
Bell | Commercial helicopters, parts and services
Revenues
Revenues	319	220	588	423
Textron Systems
Revenues
Revenues	333	326	661	654
Textron Systems | United States
Revenues
Revenues	297	276	586	562
Textron Systems | Europe
Revenues
Revenues	9	11	19	23
Textron Systems | Asia and Australia
Revenues
Revenues	20	15	36	35
Textron Systems | Other international
Revenues
Revenues	7	24	20	34
Textron Systems | Commercial
Revenues
Revenues	67	57	125	128
Textron Systems | U.S. Government
Revenues
Revenues	266	269	536	526
Textron Systems | Air systems
Revenues
Revenues	117	149	240	285
Textron Systems | Land and sea systems
Revenues
Revenues	64	63	121	123
Textron Systems | Other
Revenues
Revenues	152	114	300	246
Industrial
Revenues
Revenues	794	562	1,619	1,302
Industrial | United States
Revenues
Revenues	406	287	784	616
Industrial | Europe
Revenues
Revenues	192	127	428	355
Industrial | Asia and Australia
Revenues
Revenues	85	76	179	129
Industrial | Other international
Revenues
Revenues	111	72	228	202
Industrial | Commercial
Revenues
Revenues	787	559	1,607	1,298
Industrial | U.S. Government
Revenues
Revenues	7	3	12	4
Industrial | Fuel systems and functional components
Revenues
Revenues	440	271	937	736
Industrial | Specialized vehicles
Revenues
Revenues	354	291	682	566
Finance
Revenues
Revenues	12	15	27	29
Finance | United States
Revenues
Revenues	6	8	14	14
Finance | Europe
Revenues
Revenues	1	0	1	1
Finance | Asia and Australia
Revenues
Revenues	1	0	3	1
Finance | Other international
Revenues
Revenues	4	7	9	13
Finance | Commercial
Revenues
Revenues	12	15	27	29
Finance | U.S. Government
Revenues
Revenues	$ 0	$ 0	$ 0	$ 0

Revenues - Remaining Performanc

Revenues - Remaining Performance Obligations (Details) $ in Billions	Jul. 03, 2021USD ($)
Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligation	$ 9.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-04
Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligation, percent	73.00%
Expected timing of satisfaction	18 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligation, percent	23.00%
Expected timing of satisfaction	24 months

Revenues - Contract Assets and

Revenues - Contract Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020	Jan. 02, 2021
Contract Assets and Liabilities
Contract assets	$ 572		$ 572		$ 561
Contract liabilities	922		922		$ 842
Revenue recognized included in contract liabilities	$ 170	$ 121	$ 448	$ 352

Retirement Plans (Details)

Retirement Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020
Pension Benefits
Net periodic benefit cost (credit)
Service cost	$ 29	$ 26	$ 58	$ 52
Interest cost	63	74	126	147
Expected return on plan assets	(144)	(143)	(288)	(287)
Amortization of net actuarial loss	38	46	77	92
Amortization of prior service cost	3	3	6	6
Net periodic benefit cost (credit)	(11)	6	(21)	10
Pension Benefits | United States
Net periodic benefit cost (credit)
Defined contribution component	3	3	6	6
Postretirement Benefits Other Than Pensions
Net periodic benefit cost (credit)
Service cost	0	1	1	2
Interest cost	2	2	3	4
Amortization of net actuarial loss	0	0	(1)	0
Amortization of prior service cost	(1)	(2)	(2)	(3)
Net periodic benefit cost (credit)	$ 1	$ 1	$ 1	$ 3

Special Charges - Special Charg

Special Charges - Special Charges by Segment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		15 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021
Special Charges
Restructuring charges			$ 5
Asset and Other Asset Impairments	$ 0	$ 0	0	$ 39
Special charges	4	78	10	117
Severance Costs
Special Charges
Restructuring charges			0
Contract Termination and Other
Special Charges
Restructuring charges			5
2020 COVID-19 Restructuring Plan
Special Charges
Asset and Other Asset Impairments	3	15	5	15	$ 27
Special charges	4	78	10	78	118
2020 COVID-19 Restructuring Plan | Severance Costs
Special Charges
Restructuring charges	0	51	0	51
2020 COVID-19 Restructuring Plan | Contract Termination and Other
Special Charges
Restructuring charges	1	12	5	12
Corporate
Special Charges
Asset and Other Asset Impairments		0		0
Special charges		2		2
Corporate | 2020 COVID-19 Restructuring Plan
Special Charges
Asset and Other Asset Impairments		0		0
Special charges		2		2	4
Corporate | 2020 COVID-19 Restructuring Plan | Severance Costs
Special Charges
Restructuring charges		2		2
Corporate | 2020 COVID-19 Restructuring Plan | Contract Termination and Other
Special Charges
Restructuring charges		0		0
Industrial | Operating Segment
Special Charges
Asset and Other Asset Impairments	0	0	0	7
Special charges	4	8	10	15
Industrial | Operating Segment | 2020 COVID-19 Restructuring Plan
Special Charges
Asset and Other Asset Impairments	3	0	5	0
Special charges	4	8	10	8	44
Industrial | Operating Segment | 2020 COVID-19 Restructuring Plan | Severance Costs
Special Charges
Restructuring charges	0	8	0	8
Industrial | Operating Segment | 2020 COVID-19 Restructuring Plan | Contract Termination and Other
Special Charges
Restructuring charges	$ 1	0	$ 5	0
Textron Systems | Operating Segment
Special Charges
Asset and Other Asset Impairments		0		0
Special charges		40		40
Textron Systems | Operating Segment | 2020 COVID-19 Restructuring Plan
Special Charges
Asset and Other Asset Impairments		14		14
Special charges		40		40	37
Textron Systems | Operating Segment | 2020 COVID-19 Restructuring Plan | Severance Costs
Special Charges
Restructuring charges		14		14
Textron Systems | Operating Segment | 2020 COVID-19 Restructuring Plan | Contract Termination and Other
Special Charges
Restructuring charges		12		12
Textron Aviation | Operating Segment
Special Charges
Asset and Other Asset Impairments		0		32
Special charges		28		60
Textron Aviation | Operating Segment | 2020 COVID-19 Restructuring Plan
Special Charges
Asset and Other Asset Impairments		1		1
Special charges		28		28	$ 33
Textron Aviation | Operating Segment | 2020 COVID-19 Restructuring Plan | Severance Costs
Special Charges
Restructuring charges		27		27
Textron Aviation | Operating Segment | 2020 COVID-19 Restructuring Plan | Contract Termination and Other
Special Charges
Restructuring charges		$ 0		$ 0

Special Charges - 2020 Covid-19

Special Charges - 2020 Covid-19 Restructuring Plan (Details) $ in Millions	3 Months Ended		6 Months Ended		15 Months Ended
	Jul. 03, 2021USD ($)borrowingGroup	Jul. 04, 2020USD ($)	Jul. 03, 2021USD ($)	Jul. 04, 2020USD ($)	Jul. 03, 2021USD ($)
2020 Restructuring Plan
Special charges	$ 4	$ 78	$ 10	$ 117
Asset and Other Asset Impairments	0	0	0	39
Corporate
2020 Restructuring Plan
Special charges		2		2
Asset and Other Asset Impairments		0		0
Reconciling Items
2020 Restructuring Plan
Special charges	4	(78)	10	117
TRU inventory valuation charge	0	55	0	55
Textron Systems | Operating Segment
2020 Restructuring Plan
Special charges		40		40
Asset and Other Asset Impairments		0		0
Industrial | Operating Segment
2020 Restructuring Plan
Special charges	4	8	10	15
Asset and Other Asset Impairments	0	0	0	7
Textron Aviation | Operating Segment
2020 Restructuring Plan
Special charges		28		60
Asset and Other Asset Impairments		0		32
2020 COVID-19 Restructuring Plan
2020 Restructuring Plan
Special charges	$ 4	78	10	78	$ 118
Number of positions eliminated | borrowingGroup	2,700
Asset and Other Asset Impairments	$ 3	15	5	15	27
2020 COVID-19 Restructuring Plan | Corporate
2020 Restructuring Plan
Special charges		2		2	4
Asset and Other Asset Impairments		0		0
2020 COVID-19 Restructuring Plan | Textron Systems | Operating Segment
2020 Restructuring Plan
Special charges		40		40	37
Asset and Other Asset Impairments		14		14
2020 COVID-19 Restructuring Plan | Industrial | Operating Segment
2020 Restructuring Plan
Special charges	4	8	10	8	44
Asset and Other Asset Impairments	3	0	5	0
2020 COVID-19 Restructuring Plan | Textron Aviation | Operating Segment
2020 Restructuring Plan
Special charges		28		28	33
Asset and Other Asset Impairments		$ 1		$ 1
2020 COVID-19 Restructuring Plan | Severance Costs
2020 Restructuring Plan
Restructuring costs					73
2020 COVID-19 Restructuring Plan | Contract Termination and Other
2020 Restructuring Plan
Restructuring costs					18
Minimum | 2020 COVID-19 Restructuring Plan
2020 Restructuring Plan
Total expected restructuring plan cost	10		10		10
Maximum | 2020 COVID-19 Restructuring Plan
2020 Restructuring Plan
Total expected restructuring plan cost	$ 20		$ 20		$ 20

Special Charges - First Quarter

Special Charges - First Quarter 2020 (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020
Special Charges
Asset and Other Asset Impairments	$ 0	$ 0	$ 0	$ 39
Beechcraft and King Air trade name intangible assets
Special Charges
Impairment charge				32
Textron Aviation and Industrial segments
Special Charges
Asset and Other Asset Impairments				$ 39

Special Charges - Restructuring

Special Charges - Restructuring Reserve (Details) $ in Millions	6 Months Ended
	Jul. 03, 2021USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance	$ 52
Provision for 2020 COVID-19 restructuring plan	5
Cash paid	(21)
Foreign currency translation	(1)
Ending balance	35
Severance Costs
Restructuring Reserve [Roll Forward]
Beginning balance	43
Provision for 2020 COVID-19 restructuring plan	0
Cash paid	(16)
Foreign currency translation	(1)
Ending balance	26
Contract Termination and Other
Restructuring Reserve [Roll Forward]
Beginning balance	9
Provision for 2020 COVID-19 restructuring plan	5
Cash paid	(5)
Foreign currency translation	0
Ending balance	$ 9

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2021	Jul. 04, 2020	Jul. 03, 2021	Jul. 04, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate	15.60%	(22.00%)	13.00%	(14.30%)
U.S. federal statutory income tax rate			21.00%	21.00%
Tax benefit recognized for additional research and development credits			$ 12
Tax benefit recognized up release of valuation allowance				$ 14