Textron (TXT) 10-Q 28 Apr 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Apr. 02, 2022	Apr. 15, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 2, 2022
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		215,083,317
Entity Central Index Key	0000217346
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Revenues
Total revenues	$ 3,001,000,000	$ 2,879,000,000
Costs, expenses and other
Selling and administrative expense	305,000,000	298,000,000
Interest expense	33,000,000	40,000,000
Non-service components of pension and postretirement income, net	(61,000,000)	(40,000,000)
Special charges	0	6,000,000
Gain on business disposition	0	(15,000,000)
Total costs, expenses and other	2,769,000,000	2,689,000,000
Income before income taxes	232,000,000	190,000,000
Income tax expense	39,000,000	19,000,000
Net income	$ 193,000,000	$ 171,000,000
Earnings per share
Basic (in dollars per share)	$ 0.89	$ 0.75
Diluted (in dollars per share)	$ 0.88	$ 0.75
Manufacturing group
Costs, expenses and other
Gain on business disposition	$ 0	$ (15,000,000)
Net income	185,000,000	177,000,000
Finance group
Revenues
Total revenues	16,000,000	15,000,000
Costs, expenses and other
Gain on business disposition	0	0
Net income	8,000,000	(6,000,000)
Product
Costs, expenses and other
Cost of products/services sold	2,069,000,000	2,061,000,000
Product | Manufacturing group
Revenues
Total revenues	2,448,000,000	2,403,000,000
Service
Costs, expenses and other
Cost of products/services sold	423,000,000	339,000,000
Service | Manufacturing group
Revenues
Total revenues	$ 537,000,000	$ 461,000,000

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 193	$ 171
Other comprehensive income, net of tax
Pension and postretirement benefits adjustments, net of reclassifications	17	30
Foreign currency translation adjustments, net of reclassifications	(14)	(18)
Deferred gains on hedge contracts, net of reclassifications	7	4
Other comprehensive income	10	16
Comprehensive income	$ 203	$ 187

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) shares in Thousands, $ in Millions	Apr. 02, 2022	Jan. 01, 2022
Assets
Inventories	$ 3,663	$ 3,468
Finance receivables, net	578	605
Total assets	15,911	15,827
Liabilities
Total liabilities	8,994	9,012
Shareholders’ equity
Common stock	28	28
Capital surplus	1,924	1,863
Treasury stock	(314)	(157)
Retained earnings	6,058	5,870
Accumulated other comprehensive loss	(779)	(789)
Total shareholders’ equity	6,917	6,815
Total liabilities and shareholders’ equity	$ 15,911	$ 15,827
Common shares outstanding (in shares)	215,751	216,935
Manufacturing group
Assets
Cash and equivalents	$ 1,978	$ 1,922
Accounts receivable, net	800	838
Inventories	3,663	3,468
Other current assets	1,055	1,018
Total current assets	7,496	7,246
Property, plant and equipment, less accumulated depreciation and amortization of $4,914 and $4,888, respectively	2,488	2,538
Goodwill	2,147	2,149
Other assets	3,025	3,027
Total assets	15,156	14,960
Liabilities
Current portion of long-term debt	7	6
Accounts payable	823	786
Other current liabilities	2,507	2,344
Total current liabilities	3,337	3,136
Other liabilities	1,912	2,005
Long-term debt	3,178	3,179
Total liabilities	8,427	8,320
Finance group
Assets
Cash and equivalents	148	195
Finance receivables, net	578	605
Other assets	29	67
Total assets	755	867
Liabilities
Other liabilities	97	110
Debt	470	582
Total liabilities	$ 567	$ 692

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Apr. 02, 2022	Jan. 01, 2022
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization	$ 4,914	$ 4,888

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Cash flows from operating activities
Net income	$ 193	$ 171
Non-cash items:
Depreciation and amortization	93	90
Deferred income taxes	(52)	11
Gain on business disposition	0	(15)
Other, net	36	38
Changes in assets and liabilities:
Accounts receivable, net	37	(103)
Inventories	(176)	(178)
Other assets	(4)	(17)
Accounts payable	38	259
Other liabilities	26	(105)
Income taxes, net	71	(11)
Pension, net	(41)	(23)
Captive finance receivables, net	18	69
Other operating activities, net	2	(5)
Net cash provided by (used in) operating activities	241	181
Cash flows from investing activities
Capital expenditures	(48)	(53)
Proceeds from sale of property, plant and equipment	18	0
Net proceeds from business disposition	0	39
Finance receivables repaid	13	13
Other investing activities, net	45	6
Net cash provided by (used in) investing activities	28	5
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	(121)	(287)
Purchases of Textron common stock	(157)	(91)
Dividends paid	(5)	(5)
Proceeds from options exercised	28	27
Other financing activities, net	(3)	(3)
Net cash used in financing activities	(258)	(359)
Effect of exchange rate changes on cash and equivalents	(2)	(3)
Net increase (decrease) in cash and equivalents	9	(176)
Cash and equivalents at beginning of period	2,117	2,254
Cash and equivalents at end of period	$ 2,126	$ 2,078

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Unaudited) - Manufacturing Group and Finance Group - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Cash flows from operating activities
Net income	$ 193	$ 171
Non-cash items:
Depreciation and amortization	93	90
Deferred income taxes	(52)	11
Gain on business disposition	0	(15)
Other, net	36	38
Changes in assets and liabilities:
Accounts receivable, net	37	(103)
Inventories	(176)	(178)
Other assets	(4)	(17)
Accounts payable	38	259
Other liabilities	26	(105)
Income taxes, net	71	(11)
Pension, net	(41)	(23)
Other operating activities, net	2	(5)
Net cash provided by (used in) operating activities	241	181
Cash flows from investing activities
Capital expenditures	(48)	(53)
Proceeds from sale of property, plant and equipment	18	0
Net proceeds from business disposition	0	39
Finance receivables repaid	13	13
Other investing activities, net	45	6
Net cash provided by (used in) investing activities	28	5
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	(121)	(287)
Purchases of Textron common stock	(157)	(91)
Dividends paid	(5)	(5)
Proceeds from options exercised	28	27
Other financing activities, net	(3)	(3)
Net cash used in financing activities	(258)	(359)
Effect of exchange rate changes on cash and equivalents	(2)	(3)
Net increase (decrease) in cash and equivalents	9	(176)
Cash and equivalents at beginning of period	2,117	2,254
Cash and equivalents at end of period	2,126	2,078
Manufacturing group
Cash flows from operating activities
Net income	185	177
Non-cash items:
Depreciation and amortization	93	88
Deferred income taxes	(45)	11
Gain on business disposition	0	(15)
Other, net	37	39
Changes in assets and liabilities:
Accounts receivable, net	37	(103)
Inventories	(176)	(178)
Other assets	(4)	(17)
Accounts payable	38	259
Other liabilities	37	(103)
Income taxes, net	62	(23)
Pension, net	(41)	(23)
Other operating activities, net	2	(5)
Net cash provided by (used in) operating activities	225	107
Cash flows from investing activities
Capital expenditures	(48)	(53)
Proceeds from sale of property, plant and equipment	18	0
Net proceeds from business disposition	0	39
Finance receivables repaid	0	0
Finance receivables originated	0	0
Other investing activities, net	2	0
Net cash provided by (used in) investing activities	(28)	(14)
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	(2)	(267)
Purchases of Textron common stock	(157)	(91)
Dividends paid	(5)	(5)
Proceeds from options exercised	28	27
Other financing activities, net	(3)	(3)
Net cash used in financing activities	(139)	(339)
Effect of exchange rate changes on cash and equivalents	(2)	(3)
Net increase (decrease) in cash and equivalents	56	(249)
Cash and equivalents at beginning of period	1,922	2,146
Cash and equivalents at end of period	1,978	1,897
Finance group
Cash flows from operating activities
Net income	8	(6)
Non-cash items:
Depreciation and amortization	0	2
Deferred income taxes	(7)	0
Gain on business disposition	0	0
Other, net	(1)	(1)
Changes in assets and liabilities:
Accounts receivable, net	0	0
Inventories	0	0
Other assets	0	0
Accounts payable	0	0
Other liabilities	(11)	(2)
Income taxes, net	9	12
Pension, net	0	0
Other operating activities, net	0	0
Net cash provided by (used in) operating activities	(2)	5
Cash flows from investing activities
Capital expenditures	0	0
Proceeds from sale of property, plant and equipment	0	0
Net proceeds from business disposition	0	0
Finance receivables repaid	40	89
Finance receivables originated	(9)	(7)
Other investing activities, net	43	6
Net cash provided by (used in) investing activities	74	88
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	(119)	(20)
Purchases of Textron common stock	0	0
Dividends paid	0	0
Proceeds from options exercised	0	0
Other financing activities, net	0	0
Net cash used in financing activities	(119)	(20)
Effect of exchange rate changes on cash and equivalents	0	0
Net increase (decrease) in cash and equivalents	(47)	73
Cash and equivalents at beginning of period	195	108
Cash and equivalents at end of period	$ 148	$ 181

Basis of Presentation

Basis of Presentation	3 Months Ended
	Apr. 02, 2022
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 1, 2022. In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems 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.

Business Acquisition

Business Acquisition	3 Months Ended
	Apr. 02, 2022
Business Combination and Asset Acquisition [Abstract]
Business Acquisition	Business AcquisitionOn April 15, 2022, we acquired Pipistrel, a manufacturer of electrically powered aircraft, for a cash purchase price of approximately $240 million. Beginning with the second quarter of 2022, this business will be included in a new reporting segment, Textron eAviation, which will be focused on the development of sustainable aircraft.

Accounts Receivable and Finance

Accounts Receivable and Finance Receivables	3 Months Ended
	Apr. 02, 2022
Receivables [Abstract]
Accounts Receivable and Finance Receivables	Accounts Receivable and Finance Receivables Accounts Receivable Accounts receivable is composed of the following: (In millions) April 2, January 1, Commercial $ 711 $ 704 U.S. Government contracts 115 158 826 862 Allowance for credit losses (26) (24) Total accounts receivable, net $ 800 $ 838 Finance Receivables Finance receivables are presented in the following table: (In millions) April 2, January 1, Finance receivables $ 603 $ 630 Allowance for credit losses (25) (25) Total finance receivables, net $ 578 $ 605 Finance Receivable Portfolio Quality We internally assess the quality of our finance receivables based on a number of key credit quality indicators and statistics such as delinquency, loan balance to estimated collateral value and the financial strength of individual borrowers and guarantors. Because many of these indicators are difficult to apply across an entire class of receivables, we evaluate individual loans on a quarterly basis and classify these loans into three categories based on the key credit quality indicators for the individual loan. These three categories are performing, watchlist and nonaccrual. We classify finance receivables as nonaccrual if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically classify accounts as nonaccrual once they are contractually delinquent by more than three months unless collection of principal and interest is not doubtful. Accounts are classified as watchlist when credit quality indicators have deteriorated as compared with typical underwriting criteria, and we believe collection of full principal and interest is probable but not certain. All other finance receivables that do not meet the watchlist or nonaccrual categories are classified as performing. We measure delinquency based on the contractual payment terms of our finance receivables. In determining the delinquency aging category of an account, any/all principal and interest received is applied to the most past-due principal and/or interest amounts due. If a significant portion of the contractually due payment is delinquent, the entire finance receivable balance is reported in accordance with the most past-due delinquency aging category. Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) April 2, January 1, Performing $ 526 $ 536 Nonaccrual 77 94 Nonaccrual as a percentage of finance receivables 12.77% 14.92% Current and less than 31 days past due $ 599 $ 624 31-60 days past due 2 5 61-90 days past due 2 — Over 90 days past due — 1 60+ days contractual delinquency as a percentage of finance receivables 0.33% 0.16% At April 2, 2022, 39% of our performing finance receivables were originated since the beginning of 2020 and 27% were originated from 2017 to 2019. For finance receivables categorized as nonaccrual, 71% 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) April 2, January 1, Finance receivables evaluated collectively $ 436 $ 441 Finance receivables evaluated individually 77 94 Allowance for credit losses based on collective evaluation 21 21 Allowance for credit losses based on individual evaluation 4 4 Impaired finance receivables with specific allowance for credit losses $ 27 $ 33 Impaired finance receivables with no specific allowance for credit losses 50 61 Unpaid principal balance of impaired finance receivables 92 109 Allowance for credit losses on impaired finance receivables 4 4 Average recorded investment of impaired finance receivables 85 117

Inventories

Inventories	3 Months Ended
	Apr. 02, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are composed of the following: (In millions) April 2, January 1, Finished goods $ 1,100 $ 1,071 Work in process 1,686 1,548 Raw materials and components 877 849 Total inventories $ 3,663 $ 3,468

Warranty Liability

Warranty Liability	3 Months Ended
	Apr. 02, 2022
Payables and Accruals [Abstract]
Warranty Liability	Warranty Liability Changes in our warranty liability are as follows: Three Months Ended (In millions) April 2, April 3, Beginning of period $ 127 $ 119 Provision 16 14 Settlements (19) (20) Adjustments* 6 3 End of period $ 130 $ 116 * Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Leases

Leases	3 Months Ended
	Apr. 02, 2022
Leases [Abstract]
Leases	LeasesWe primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide through operating leases. Our operating leases have remaining lease terms up to 27 years, which include options to extend the lease term for periods up to 25 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $17 million and $16 million in the first quarter of 2022 and 2021, respectively. Variable and short-term lease costs were not significant. Cash paid for operating leases totaled $17 million and $16 million in the first quarter of 2022 and 2021, respectively, and is classified in cash flows from operating activities. Noncash transactions totaled $7 million and $45 million in the first quarter of 2022 and 2021, respectively, reflecting the recognition of operating lease assets and liabilities for new or extended leases. Balance sheet and other information related to our operating leases is as follows: (Dollars in millions) April 2, January 1, Other assets $ 367 $ 374 Other current liabilities 56 56 Other liabilities 317 325 Weighted-average remaining lease term (in years) 10.3 10.5 Weighted-average discount rate 3.18% 3.19% At April 2, 2022, maturities of our operating lease liabilities on an undiscounted basis totaled $52 million for the remainder of 2022, $62 million for 2023, $53 million for 2024, $46 million for 2025, $35 million for 2026 and $216 million thereafter.

Derivative Instruments and Fair

Derivative Instruments and Fair Value Measurements	3 Months Ended
	Apr. 02, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Fair Value Measurements	Derivative Instruments and Fair Value Measurements We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We prioritize the assumptions that market participants would use in pricing the asset or liability into a three-tier fair value hierarchy. This fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs in which little or no market data exist, requiring companies to develop their own assumptions. Observable inputs that do not meet the criteria of Level 1, which include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets and liabilities in markets that are not active, are categorized as Level 2. Level 3 inputs are those that reflect our estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Valuation techniques for assets and liabilities measured using Level 3 inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data. These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain. Assets and Liabilities Recorded at Fair Value on a Recurring Basis We manufacture and sell our products in a number of countries throughout the world, and, therefore, we are exposed to movements in foreign currency exchange rates. We primarily utilize foreign currency exchange contracts with maturities of no more than three years to manage this volatility. These contracts qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales, inventory purchases and overhead expenses. Net gains and losses recognized in earnings and Accumulated other comprehensive loss on cash flow hedges, including gains and losses related to hedge ineffectiveness, were not significant in the periods presented. Our foreign currency exchange contracts are measured at fair value using the market method valuation technique. The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers. These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2. At April 2, 2022 and January 1, 2022, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $345 million and $272 million, respectively. At April 2, 2022, the fair value amounts of our foreign currency exchange contracts were a $7 million asset and a $2 million liability. At January 1, 2022, the fair value amounts of our foreign currency exchange contracts were a $4 million asset and a $3 million liability. Our Finance group enters into interest rate swap agreements to mitigate certain exposures to fluctuations in interest rates. By using these contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. At April 2, 2022, we had a swap agreement for a notional amount of $280 million with a maturity of August 2023 and a fair value of a $5 million asset. At January 1, 2022, we had a swap agreement for a notional amount of $289 million with a maturity of August 2023 and an insignificant fair value. The fair value of these swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2. Assets and Liabilities Not Recorded at Fair Value The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows: April 2, 2022 January 1, 2022 Carrying Estimated Carrying Estimated (In millions) Value Fair Value Value Fair Value Manufacturing group Debt, excluding leases $ (3,180) $ (3,118) $ (3,181) $ (3,346) Finance group Finance receivables, excluding leases 394 400 413 444 Debt (470) (414) (582) (546) 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	3 Months Ended
	Apr. 02, 2022
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 April 2, 2022 Beginning of period $ 28 $ 1,863 $ (157) $ 5,870 $ (789) $ 6,815 Net income — — — 193 — 193 Other comprehensive income — — — — 10 10 Share-based compensation activity — 61 — — — 61 Dividends declared — — — (5) — (5) Purchases of common stock — — (157) — — (157) End of period $ 28 $ 1,924 $ (314) $ 6,058 $ (779) $ 6,917 Three months ended April 3, 2021 Beginning of period $ 29 $ 1,785 $ (203) $ 5,973 $ (1,739) $ 5,845 Net income — — — 171 — 171 Other comprehensive income — — — — 16 16 Share-based compensation activity — 60 — — — 60 Dividends declared — — — (5) — (5) Purchases of common stock — — (91) — — (91) End of period $ 29 $ 1,845 $ (294) $ 6,139 $ (1,723) $ 5,996 Dividends per share of common stock were $0.02 for both the first quarter of 2022 and 2021. Earnings Per Share We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period. Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options. The weighted-average shares outstanding for basic and diluted EPS are as follows: Three Months Ended (In thousands) April 2, April 3, Basic weighted-average shares outstanding 217,010 227,009 Dilutive effect of stock options 2,597 1,275 Diluted weighted-average shares outstanding 219,607 228,284 Stock options to purchase 1.0 million and 4.3 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for the first quarter of 2022 and 2021, 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 1, 2022 $ (799) $ 9 $ 1 $ (789) Other comprehensive loss before reclassifications — (14) 7 (7) Reclassified from Accumulated other comprehensive loss 17 — — 17 Balance at April 2, 2022 $ (782) $ (5) $ 8 $ (779) Balance at January 2, 2021 $ (1,780) $ 42 $ (1) $ (1,739) Other comprehensive loss before reclassifications — (32) 4 (28) Reclassified from Accumulated other comprehensive loss 30 14 — 44 Balance at April 3, 2021 $ (1,750) $ 24 $ 3 $ (1,723) The before and after-tax components of Other comprehensive income are presented below: April 2, 2022 April 3, 2021 (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* $ 21 $ (5) $ 16 $ 38 $ (9) $ 29 Amortization of prior service cost* 2 (1) 1 2 (1) 1 Pension and postretirement benefits adjustments, net 23 (6) 17 40 (10) 30 Foreign currency translation adjustments: Foreign currency translation adjustments (14) — (14) (32) — (32) Business disposition — — — 14 — 14 Foreign currency translation adjustments, net (14) — (14) (18) — (18) Deferred gains on hedge contracts: Current deferrals 10 (3) 7 5 (1) 4 Deferred gains on hedge contracts, net 10 (3) 7 5 (1) 4 Total $ 19 $ (9) $ 10 $ 27 $ (11) $ 16 *These components of other comprehensive income are included in the computation of net periodic pension cost (income). See Note 15 of our 2021 Annual Report on Form 10-K for additional information.

Segment Information

Segment Information	3 Months Ended
	Apr. 02, 2022
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 before income taxes, are included in the table below: Three Months Ended (In millions) April 2, April 3, Revenues Textron Aviation $ 1,040 $ 865 Bell 834 846 Textron Systems 273 328 Industrial 838 825 Finance 16 15 Total revenues $ 3,001 $ 2,879 Segment Profit Textron Aviation $ 121 $ 47 Bell 98 105 Textron Systems 33 51 Industrial 43 47 Finance 9 6 Segment profit 304 256 Corporate expenses and other, net (44) (40) Interest expense, net for Manufacturing group (28) (35) Special charges — (6) Gain on business disposition — 15 Income before income taxes $ 232 $ 190

Revenues

Revenues	3 Months Ended
	Apr. 02, 2022
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Disaggregation of Revenues Our revenues disaggregated by major product type are presented below: Three Months Ended (In millions) April 2, April 3, Aircraft $ 646 $ 535 Aftermarket parts and services 394 330 Textron Aviation 1,040 865 Military aircraft and support programs 597 577 Commercial helicopters, parts and services 237 269 Bell 834 846 Textron Systems 273 328 Fuel systems and functional components 464 497 Specialized vehicles 374 328 Industrial 838 825 Finance 16 15 Total revenues $ 3,001 $ 2,879 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 April 2, 2022 Customer type: Commercial $ 1,021 $ 234 $ 19 $ 835 $ 16 $ 2,125 U.S. Government 19 600 254 3 — 876 Total revenues $ 1,040 $ 834 $ 273 $ 838 $ 16 $ 3,001 Geographic location: United States $ 732 $ 670 $ 246 $ 426 $ 5 $ 2,079 Europe 119 28 8 190 1 346 Other international 189 136 19 222 10 576 Total revenues $ 1,040 $ 834 $ 273 $ 838 $ 16 $ 3,001 Three months ended April 3, 2021 Customer type: Commercial $ 846 $ 266 $ 58 $ 820 $ 15 $ 2,005 U.S. Government 19 580 270 5 — 874 Total revenues $ 865 $ 846 $ 328 $ 825 $ 15 $ 2,879 Geographic location: United States $ 609 $ 616 $ 289 $ 378 $ 8 $ 1,900 Europe 84 36 10 236 — 366 Other international 172 194 29 211 7 613 Total revenues $ 865 $ 846 $ 328 $ 825 $ 15 $ 2,879 Remaining Performance Obligations Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our contracts that we expect to recognize as revenues in future periods when we perform under the contracts. These remaining obligations exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At April 2, 2022, we had $12.1 billion in remaining performance obligations of which we expect to recognize revenues of approximately 78% through 2023, an additional 19% through 2025, and the balance thereafter. Contract Assets and Liabilities

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Apr. 02, 2022
Share-based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation Under our share-based compensation plan, we have authorization to provide awards to selected employees and non-employee directors in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, performance stock, performance share units and other awards. Compensation expense included in net income for our share-based compensation plan is as follows: Three Months Ended (In millions) April 2, April 3, Compensation expense $ 34 $ 55 Income tax expense (8) (13) Total compensation expense included in net income $ 26 $ 42 Compensation expense included stock option expense of $12 million in both the first quarter of 2022 and 2021. Stock Options Options to purchase our shares have a maximum term of ten years and generally vest ratably over a three-year period. Stock option compensation cost is calculated under the fair value approach using the Black-Scholes option-pricing model to determine the fair value of options granted on the date of grant. The expected volatility used in this model is based on historical volatilities and implied volatilities from traded options on our common stock. The expected term is based on historical option exercise data, which is adjusted to reflect any anticipated changes in expected behavior. We grant options annually on the first day of March. The assumptions used in our option-pricing model for these grants and the weighted-average fair value for these options are as follows: March 1, 2022 March 1, 2021 Fair value of options at grant date $ 19.95 $ 15.05 Dividend yield 0.1% 0.2% Expected volatility 29.2% 33.6% Risk-free interest rate 1.9% 0.7% Expected term (in years) 4.8 4.7 The stock option activity during the first quarter of 2022 is provided below: (Options in thousands) Number of Weighted- Outstanding at January 1, 2022 8,289 $ 46.18 Granted 1,049 71.07 Exercised (705) (38.35) Forfeited or expired (28) (45.34) Outstanding at April 2, 2022 8,605 $ 49.86 Exercisable at April 2, 2022 5,902 $ 47.13 At April 2, 2022, our outstanding options had an aggregate intrinsic value of $199 million and a weighted-average remaining contractual life of 6.5 years. Our exercisable options had an aggregate intrinsic value of $153 million and a weighted-average remaining contractual life of 5.3 years at April 2, 2022. The total intrinsic value of options exercised during the first quarter of 2022 and 2021 was $23 million and $15 million, respectively. Restricted Stock Units We issue restricted stock units that include the right to receive dividend equivalents and are settled in both cash and stock. Beginning in 2020, new grants of restricted stock units will vest in full on the third anniversary of the grant date. Restricted stock units granted prior to 2020 vest one-third each in the third, fourth and fifth year following the year of the grant. The fair value of these units is based on the trading price of our common stock. For units payable in stock, we use the trading price on the grant date, while units payable in cash are remeasured using the price at each reporting period date. The activity for restricted stock units payable in both stock and cash during the first quarter of 2022 is provided below: Units Payable in Stock Units Payable in Cash (Shares/Units in thousands) Number of Weighted- Number of Weighted- Outstanding at January 1, 2022, nonvested 569 $ 50.01 1,158 $ 49.92 Granted 84 71.07 223 71.07 Vested (126) (53.95) (246) (54.02) Forfeited — — (10) (49.55) Outstanding at April 2, 2022, nonvested 527 $ 52.44 1,125 $ 53.23 The fair value of the restricted stock unit awards that vested and/or amounts paid under these awards is as follows: Three Months Ended (In millions) April 2, April 3, Fair value of awards vested $ 24 $ 19 Cash paid 17 13 Performance Share Units The activity for our performance share units during the first quarter of 2022 is as follows: (Units in thousands) Number of Weighted- Outstanding at January 1, 2022, nonvested 526 $ 45.87 Granted 174 71.07 Outstanding at April 2, 2022, nonvested 700 $ 52.14 Cash paid under these awards totaled $15 million and $6 million in the first quarter of 2022 and 2021, respectively.

Retirement Plans

Retirement Plans	3 Months Ended
	Apr. 02, 2022
Retirement Benefits [Abstract]
Retirement Plans	Retirement PlansWe provide defined benefit pension plans and other postretirement benefits to eligible employees. The components of net periodic benefit income for these plans are as follows: Three Months Ended (In millions) April 2, April 3, Pension Benefits Service cost $ 27 $ 29 Interest cost 68 63 Expected return on plan assets (153) (144) Amortization of net actuarial loss 22 39 Amortization of prior service cost 3 3 Net periodic benefit income* $ (33) $ (10) Postretirement Benefits Other Than Pensions Service cost $ 1 $ 1 Interest cost 1 1 Amortization of net actuarial gain (1) (1) Amortization of prior service credit (1) (1) Net periodic benefit income $ — $ —

Special Charges

Special Charges	3 Months Ended
	Apr. 02, 2022
Special Charges [Abstract]
Special Charges	Special Charges In the first quarter of 2021, we recognized special charges of $6 million related to a restructuring plan initiated in 2020 in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic. There were no special charges recorded in the first quarter of 2022. Our restructuring reserve activity is summarized below: (In millions) Severance Contract Total Balance at January 1, 2022 $ 19 $ 9 $ 28 Cash paid (6) — (6) Balance at April 2, 2022 $ 13 $ 9 $ 22

Income Taxes

Income Taxes	3 Months Ended
	Apr. 02, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesOur effective tax rate for the first quarter of 2022 and 2021 was 16.8% and 10.0%, respectively. In the first quarter of 2022, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the favorable impact of research and development credits. In the first quarter of 2021, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to a $12 million benefit recognized for additional research and development credits related to prior years.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 02, 2022
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 Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Apr. 02, 2022
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)	3 Months Ended
	Apr. 02, 2022
Receivables [Abstract]
Accounts Receivable	Accounts receivable is composed of the following: (In millions) April 2, January 1, Commercial $ 711 $ 704 U.S. Government contracts 115 158 826 862 Allowance for credit losses (26) (24) Total accounts receivable, net $ 800 $ 838
Finance Receivables	Finance receivables are presented in the following table: (In millions) April 2, January 1, Finance receivables $ 603 $ 630 Allowance for credit losses (25) (25) Total finance receivables, net $ 578 $ 605
Finance Receivables Categorized Based On Credit Quality Indicators	Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) April 2, January 1, Performing $ 526 $ 536 Nonaccrual 77 94 Nonaccrual as a percentage of finance receivables 12.77% 14.92% Current and less than 31 days past due $ 599 $ 624 31-60 days past due 2 5 61-90 days past due 2 — Over 90 days past due — 1 60+ days contractual delinquency as a percentage of finance receivables 0.33% 0.16%
Finance Receivables By Delinquency Aging Category	Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) April 2, January 1, Performing $ 526 $ 536 Nonaccrual 77 94 Nonaccrual as a percentage of finance receivables 12.77% 14.92% Current and less than 31 days past due $ 599 $ 624 31-60 days past due 2 5 61-90 days past due 2 — Over 90 days past due — 1 60+ days contractual delinquency as a percentage of finance receivables 0.33% 0.16%
Finance Receivables and Allowance For Credit Losses Based on Impairment Evaluation	A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles. (In millions) April 2, January 1, Finance receivables evaluated collectively $ 436 $ 441 Finance receivables evaluated individually 77 94 Allowance for credit losses based on collective evaluation 21 21 Allowance for credit losses based on individual evaluation 4 4 Impaired finance receivables with specific allowance for credit losses $ 27 $ 33 Impaired finance receivables with no specific allowance for credit losses 50 61 Unpaid principal balance of impaired finance receivables 92 109 Allowance for credit losses on impaired finance receivables 4 4 Average recorded investment of impaired finance receivables 85 117

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Apr. 02, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories are composed of the following: (In millions) April 2, January 1, Finished goods $ 1,100 $ 1,071 Work in process 1,686 1,548 Raw materials and components 877 849 Total inventories $ 3,663 $ 3,468

Warranty Liability (Tables)

Warranty Liability (Tables)	3 Months Ended
	Apr. 02, 2022
Payables and Accruals [Abstract]
Changes in Warranty Liability	Changes in our warranty liability are as follows: Three Months Ended (In millions) April 2, April 3, Beginning of period $ 127 $ 119 Provision 16 14 Settlements (19) (20) Adjustments* 6 3 End of period $ 130 $ 116 * Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Leases (Tables)

Leases (Tables)	3 Months Ended
	Apr. 02, 2022
Leases [Abstract]
Schedule of Balance Sheet and Other Information	Balance sheet and other information related to our operating leases is as follows: (Dollars in millions) April 2, January 1, Other assets $ 367 $ 374 Other current liabilities 56 56 Other liabilities 317 325 Weighted-average remaining lease term (in years) 10.3 10.5 Weighted-average discount rate 3.18% 3.19%

Derivative Instruments and Fa_2

Derivative Instruments and Fair Value Measurements (Tables)	3 Months Ended
	Apr. 02, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Carrying Value and Estimated and Fair Value of Financial Instruments	The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows: April 2, 2022 January 1, 2022 Carrying Estimated Carrying Estimated (In millions) Value Fair Value Value Fair Value Manufacturing group Debt, excluding leases $ (3,180) $ (3,118) $ (3,181) $ (3,346) Finance group Finance receivables, excluding leases 394 400 413 444 Debt (470) (414) (582) (546)

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Apr. 02, 2022
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 April 2, 2022 Beginning of period $ 28 $ 1,863 $ (157) $ 5,870 $ (789) $ 6,815 Net income — — — 193 — 193 Other comprehensive income — — — — 10 10 Share-based compensation activity — 61 — — — 61 Dividends declared — — — (5) — (5) Purchases of common stock — — (157) — — (157) End of period $ 28 $ 1,924 $ (314) $ 6,058 $ (779) $ 6,917 Three months ended April 3, 2021 Beginning of period $ 29 $ 1,785 $ (203) $ 5,973 $ (1,739) $ 5,845 Net income — — — 171 — 171 Other comprehensive income — — — — 16 16 Share-based compensation activity — 60 — — — 60 Dividends declared — — — (5) — (5) Purchases of common stock — — (91) — — (91) End of period $ 29 $ 1,845 $ (294) $ 6,139 $ (1,723) $ 5,996
Schedule of Weighted-Average Shares Outstanding for Basic and Diluted EPS	The weighted-average shares outstanding for basic and diluted EPS are as follows: Three Months Ended (In thousands) April 2, April 3, Basic weighted-average shares outstanding 217,010 227,009 Dilutive effect of stock options 2,597 1,275 Diluted weighted-average shares outstanding 219,607 228,284
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 1, 2022 $ (799) $ 9 $ 1 $ (789) Other comprehensive loss before reclassifications — (14) 7 (7) Reclassified from Accumulated other comprehensive loss 17 — — 17 Balance at April 2, 2022 $ (782) $ (5) $ 8 $ (779) Balance at January 2, 2021 $ (1,780) $ 42 $ (1) $ (1,739) Other comprehensive loss before reclassifications — (32) 4 (28) Reclassified from Accumulated other comprehensive loss 30 14 — 44 Balance at April 3, 2021 $ (1,750) $ 24 $ 3 $ (1,723)
Schedule of Before and After-Tax Components of Other Comprehensive Income (Loss)	The before and after-tax components of Other comprehensive income are presented below: April 2, 2022 April 3, 2021 (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* $ 21 $ (5) $ 16 $ 38 $ (9) $ 29 Amortization of prior service cost* 2 (1) 1 2 (1) 1 Pension and postretirement benefits adjustments, net 23 (6) 17 40 (10) 30 Foreign currency translation adjustments: Foreign currency translation adjustments (14) — (14) (32) — (32) Business disposition — — — 14 — 14 Foreign currency translation adjustments, net (14) — (14) (18) — (18) Deferred gains on hedge contracts: Current deferrals 10 (3) 7 5 (1) 4 Deferred gains on hedge contracts, net 10 (3) 7 5 (1) 4 Total $ 19 $ (9) $ 10 $ 27 $ (11) $ 16

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Apr. 02, 2022
Segment Reporting [Abstract]
Revenues by Segment and Reconciliation of Segment Profit Income (Loss) Before Income Taxes	Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below: Three Months Ended (In millions) April 2, April 3, Revenues Textron Aviation $ 1,040 $ 865 Bell 834 846 Textron Systems 273 328 Industrial 838 825 Finance 16 15 Total revenues $ 3,001 $ 2,879 Segment Profit Textron Aviation $ 121 $ 47 Bell 98 105 Textron Systems 33 51 Industrial 43 47 Finance 9 6 Segment profit 304 256 Corporate expenses and other, net (44) (40) Interest expense, net for Manufacturing group (28) (35) Special charges — (6) Gain on business disposition — 15 Income before income taxes $ 232 $ 190

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Apr. 02, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Our revenues disaggregated by major product type are presented below: Three Months Ended (In millions) April 2, April 3, Aircraft $ 646 $ 535 Aftermarket parts and services 394 330 Textron Aviation 1,040 865 Military aircraft and support programs 597 577 Commercial helicopters, parts and services 237 269 Bell 834 846 Textron Systems 273 328 Fuel systems and functional components 464 497 Specialized vehicles 374 328 Industrial 838 825 Finance 16 15 Total revenues $ 3,001 $ 2,879 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 April 2, 2022 Customer type: Commercial $ 1,021 $ 234 $ 19 $ 835 $ 16 $ 2,125 U.S. Government 19 600 254 3 — 876 Total revenues $ 1,040 $ 834 $ 273 $ 838 $ 16 $ 3,001 Geographic location: United States $ 732 $ 670 $ 246 $ 426 $ 5 $ 2,079 Europe 119 28 8 190 1 346 Other international 189 136 19 222 10 576 Total revenues $ 1,040 $ 834 $ 273 $ 838 $ 16 $ 3,001 Three months ended April 3, 2021 Customer type: Commercial $ 846 $ 266 $ 58 $ 820 $ 15 $ 2,005 U.S. Government 19 580 270 5 — 874 Total revenues $ 865 $ 846 $ 328 $ 825 $ 15 $ 2,879 Geographic location: United States $ 609 $ 616 $ 289 $ 378 $ 8 $ 1,900 Europe 84 36 10 236 — 366 Other international 172 194 29 211 7 613 Total revenues $ 865 $ 846 $ 328 $ 825 $ 15 $ 2,879

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Apr. 02, 2022
Share-based Payment Arrangement [Abstract]
Compensation Expense Included in Net Income	Compensation expense included in net income for our share-based compensation plan is as follows: Three Months Ended (In millions) April 2, April 3, Compensation expense $ 34 $ 55 Income tax expense (8) (13) Total compensation expense included in net income $ 26 $ 42
Weighted-Average Fair Value of Stock Options and Assumptions Used in Option-Pricing Model	The assumptions used in our option-pricing model for these grants and the weighted-average fair value for these options are as follows: March 1, 2022 March 1, 2021 Fair value of options at grant date $ 19.95 $ 15.05 Dividend yield 0.1% 0.2% Expected volatility 29.2% 33.6% Risk-free interest rate 1.9% 0.7% Expected term (in years) 4.8 4.7
Stock Option Activity	The stock option activity during the first quarter of 2022 is provided below: (Options in thousands) Number of Weighted- Outstanding at January 1, 2022 8,289 $ 46.18 Granted 1,049 71.07 Exercised (705) (38.35) Forfeited or expired (28) (45.34) Outstanding at April 2, 2022 8,605 $ 49.86 Exercisable at April 2, 2022 5,902 $ 47.13
Restricted Stock Units Activity	The activity for restricted stock units payable in both stock and cash during the first quarter of 2022 is provided below: Units Payable in Stock Units Payable in Cash (Shares/Units in thousands) Number of Weighted- Number of Weighted- Outstanding at January 1, 2022, nonvested 569 $ 50.01 1,158 $ 49.92 Granted 84 71.07 223 71.07 Vested (126) (53.95) (246) (54.02) Forfeited — — (10) (49.55) Outstanding at April 2, 2022, nonvested 527 $ 52.44 1,125 $ 53.23
Fair Value of Awards Vested and Cash Paid During Respective Periods	The fair value of the restricted stock unit awards that vested and/or amounts paid under these awards is as follows: Three Months Ended (In millions) April 2, April 3, Fair value of awards vested $ 24 $ 19 Cash paid 17 13
Performance Share Units Activity	The activity for our performance share units during the first quarter of 2022 is as follows: (Units in thousands) Number of Weighted- Outstanding at January 1, 2022, nonvested 526 $ 45.87 Granted 174 71.07 Outstanding at April 2, 2022, nonvested 700 $ 52.14

Retirement Plans (Tables)

Retirement Plans (Tables)	3 Months Ended
	Apr. 02, 2022
Retirement Benefits [Abstract]
Schedule of Components of Net Periodic Benefit Income	The components of net periodic benefit income for these plans are as follows: Three Months Ended (In millions) April 2, April 3, Pension Benefits Service cost $ 27 $ 29 Interest cost 68 63 Expected return on plan assets (153) (144) Amortization of net actuarial loss 22 39 Amortization of prior service cost 3 3 Net periodic benefit income* $ (33) $ (10) Postretirement Benefits Other Than Pensions Service cost $ 1 $ 1 Interest cost 1 1 Amortization of net actuarial gain (1) (1) Amortization of prior service credit (1) (1) Net periodic benefit income $ — $ —

Special Charges (Tables)

Special Charges (Tables)	3 Months Ended
	Apr. 02, 2022
Special Charges [Abstract]
Schedule of Restructuring Reserve Activity	Our restructuring reserve activity is summarized below: (In millions) Severance Contract Total Balance at January 1, 2022 $ 19 $ 9 $ 28 Cash paid (6) — (6) Balance at April 2, 2022 $ 13 $ 9 $ 22

Basis of Presentation (Details)

Basis of Presentation (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Apr. 02, 2022USD ($)borrowingGroup$ / shares	Apr. 03, 2021USD ($)$ / shares
Basis of Presentation
Number of borrowing groups | borrowingGroup	2
Cumulative catch-up method
Basis of Presentation
Cumulative catch up adjustments, increase (decease) in segment profit	$ (17)	$ 14
Change in accounting estimate financial effect, increase (decrease) in net income	$ (13)	$ 11
Change in accounting estimate financial effect increase (decrease) in earnings per diluted share (in dollars per share) | $ / shares	$ (0.06)	$ 0.05
Gross favorable adjustments	$ 16	$ 36
Gross unfavorable adjustments	33	22
Revenue (reduced) recognized from performance obligations satisfied in prior periods	$ (12)	$ 18

Business Acquisition (Details)

Business Acquisition (Details) $ in Millions	Apr. 15, 2022USD ($)
Pipistrel | Subsequent Event
Business Acquisition [Line Items]
Cash purchase price	$ 240

Accounts Receivable and Finan_3

Accounts Receivable and Finance Receivables - Accounts Receivable (Details) - Manufacturing group - USD ($) $ in Millions	Apr. 02, 2022	Jan. 01, 2022
Accounts Receivable
Accounts receivable, gross	$ 826	$ 862
Allowance for credit losses	(26)	(24)
Total accounts receivable, net	800	838
Commercial
Accounts Receivable
Accounts receivable, gross	711	704
U.S. Government
Accounts Receivable
Accounts receivable, gross	$ 115	$ 158

Accounts Receivable and Finan_4

Accounts Receivable and Finance Receivables - Finance Receivables (Details) - USD ($) $ in Millions	Apr. 02, 2022	Jan. 01, 2022
Finance Receivables
Finance receivables	$ 603	$ 630
Allowance for credit losses	(25)	(25)
Total finance receivables, net	$ 578	$ 605

Accounts Receivable and Finan_5

Accounts Receivable and Finance Receivables - Finance Receivable Portfolio Quality (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Jan. 01, 2022
Finance Receivable Portfolio Quality
Finance receivables	$ 603	$ 630
60+ days contractual delinquency as a percentage of finance receivables	0.33%	0.16%
Current and less than 31 days past due
Finance Receivable Portfolio Quality
Finance receivables	$ 599	$ 624
31-60 days past due
Finance Receivable Portfolio Quality
Finance receivables	2	5
61-90 days past due
Finance Receivable Portfolio Quality
Finance receivables	2	0
Over 90 days past due
Finance Receivable Portfolio Quality
Finance receivables	$ 0	$ 1
Performing
Finance Receivable Portfolio Quality
Financing receivable originating since the beginning of 2020	39.00%
Financing receivable originating from 2017 to 2019	27.00%
Nonperforming
Finance Receivable Portfolio Quality
Nonaccrual as a percentage of finance receivables	12.77%	14.92%
Nonperforming | Nonaccrual
Finance Receivable Portfolio Quality
Finance receivables	$ 77	$ 94
Financing receivable originating from 2017 to 2019	71.00%
Nonperforming | Minimum
Finance Receivable Portfolio Quality
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful	3 months
Performing
Finance Receivable Portfolio Quality
Finance receivables	$ 526	$ 536

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	3 Months Ended	12 Months Ended
	Apr. 02, 2022	Jan. 01, 2022
Finance receivables
Finance receivables evaluated collectively	$ 436	$ 441
Finance receivables evaluated individually	77	94
Allowance for credit losses based on collective evaluation	21	21
Allowance for credit losses based on individual evaluation	4	4
Impaired finance receivables with specific allowance for credit losses	27	33
Impaired finance receivables with no specific allowance for credit losses	50	61
Unpaid principal balance of impaired finance receivables	92	109
Allowance for credit losses on impaired finance receivables	4	4
Average recorded investment of impaired finance receivables	$ 85	$ 117

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Apr. 02, 2022	Jan. 01, 2022
Inventories
Finished goods	$ 1,100	$ 1,071
Work in process	1,686	1,548
Raw materials and components	877	849
Total inventories	$ 3,663	$ 3,468

Warranty Liability (Details)

Warranty Liability (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Changes in warranty liability
Beginning of period	$ 127	$ 119
Provision	16	14
Settlements	(19)	(20)
Adjustments	6	3
End of period	$ 130	$ 116

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Leases [Abstract]
Remaining lease terms	27 years
Operating lease - option to extend	true
Operating lease - option to extend the lease, term	25 years
Operating lease cost	$ 17	$ 16
Cash paid for operating lease liabilities	17	16
Noncash lease transactions	$ 7	$ 45

Leases - Balance Sheet and Othe

Leases - Balance Sheet and Other Information (Details) - USD ($) $ in Millions	Apr. 02, 2022	Jan. 01, 2022
Operating leases:
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Other assets	$ 367	$ 374
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Other current liabilities	$ 56	$ 56
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Other liabilities	$ 317	$ 325
Weighted-average remaining lease term (in years)
Weighted-average remaining lease term (in years)	10 years 3 months 18 days	10 years 6 months
Weighted-average discount rate
Weighted-average discount rate	3.18%	3.19%

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) $ in Millions	Apr. 02, 2022USD ($)
Operating Leases
Remainder of 2022	$ 52
2023	62
2024	53
2025	46
2026	35
Thereafter	$ 216

Derivative Instruments and Fa_3

Derivative Instruments and Fair Value Measurements - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Jan. 01, 2022
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	$ 345	$ 272
Manufacturing group | Foreign currency exchange contracts | Cash Flow Hedging | Level 2
Fair value of derivative instruments
Derivative asset, fair value	7	4
Derivative liability, fair value	2	3
Finance group | Interest Rate Swap | Cash Flow Hedging
Fair value of derivative instruments
Notional amounts	280	$ 289
Derivative asset, fair value	$ 5

Derivative Instruments and Fa_4

Derivative Instruments and Fair Value Measurements - Assets and Liabilities not Recorded at Fair Value (Details) - USD ($) $ in Millions	Apr. 02, 2022	Jan. 01, 2022
Manufacturing group | Carrying Value
Financial instruments not reflected at fair value
Debt	$ (3,180)	$ (3,181)
Manufacturing group | Estimated Fair value
Financial instruments not reflected at fair value
Debt	(3,118)	(3,346)
Finance group | Carrying Value
Financial instruments not reflected at fair value
Debt	(470)	(582)
Finance receivables, excluding leases	394	413
Finance group | Estimated Fair value
Financial instruments not reflected at fair value
Debt	(414)	(546)
Finance receivables, excluding leases	$ 400	$ 444

Shareholders' Equity - Reconcil

Shareholders' Equity - Reconciliation of Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 6,815	$ 5,845
Net income	193	171
Other comprehensive income	10	16
Share-based compensation activity	61	60
Dividends declared	(5)	(5)
Purchases of common stock	(157)	(91)
Balance at end of period	$ 6,917	$ 5,996
Dividends per share of common stock (in dollars per share)	$ 0.02	$ 0.02
Common Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 28	$ 29
Balance at end of period	28	29
Capital Surplus
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	1,863	1,785
Share-based compensation activity	61	60
Balance at end of period	1,924	1,845
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(157)	(203)
Purchases of common stock	(157)	(91)
Balance at end of period	(314)	(294)
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	5,870	5,973
Net income	193	171
Dividends declared	(5)	(5)
Balance at end of period	6,058	6,139
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(789)	(1,739)
Other comprehensive income	10	16
Balance at end of period	$ (779)	$ (1,723)

Shareholders' Equity - Earnings

Shareholders' Equity - Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Weighted-average shares outstanding for basic and diluted EPS
Basic weighted-average shares outstanding (in shares)	217,010	227,009
Dilutive effect of stock options (in shares)	2,597	1,275
Diluted weighted-average shares outstanding (in shares)	219,607	228,284
Stock options
Weighted-average shares outstanding for basic and diluted EPS
Anti-dilutive effect of weighted average shares (in shares)	1,000	4,300

Shareholders' Equity - Accumula

Shareholders' Equity - Accumulated Other Comprehensive Loss and Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 6,815	$ 5,845
Other comprehensive loss before reclassifications	(7)	(28)
Reclassified from Accumulated other comprehensive loss	17	44
Balance at end of period	6,917	5,996
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(789)	(1,739)
Balance at end of period	(779)	(1,723)
Pension and Postretirement Benefits Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(799)	(1,780)
Other comprehensive loss before reclassifications	0	0
Reclassified from Accumulated other comprehensive loss	17	30
Balance at end of period	(782)	(1,750)
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	9	42
Other comprehensive loss before reclassifications	(14)	(32)
Reclassified from Accumulated other comprehensive loss	0	14
Balance at end of period	(5)	24
Deferred Gains (Losses) on Hedge Contracts
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	1	(1)
Other comprehensive loss before reclassifications	7	4
Reclassified from Accumulated other comprehensive loss	0	0
Balance at end of period	$ 8	$ 3

Shareholders' Equity - Before a

Shareholders' Equity - Before and After Tax Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Pension and postretirement benefits adjustments, pre-tax:
Amortization of net actuarial loss, pre-tax	$ 21	$ 38
Amortization of prior service cost, pre-tax	2	2
Pension and postretirement benefits adjustments, net, pre-tax	23	40
Pension and postretirement benefits adjustments, tax:
Amortization of net actuarial loss, tax (expense) benefit	(5)	(9)
Amortization of prior service cost, tax (expense) benefit	(1)	(1)
Pension and postretirement benefits adjustments, net, tax (expense) benefit	(6)	(10)
Pension and postretirement benefits adjustments, after-tax:
Amortization of net actuarial loss, after-tax	16	29
Amortization of prior period service cost, after-tax	1	1
Pension and postretirement benefits adjustments, net, after-tax	17	30
Foreign currency translation adjustments, pre-tax:
Foreign currency translation adjustments, pre-tax	(14)	(32)
Business disposition, pre-tax	0	14
Foreign currency translation adjustments, net, pre-tax	(14)	(18)
Foreign currency translation adjustments, tax:
Foreign currency translation adjustments, tax (expense) benefit	0	0
Business disposition, tax (expense) benefit	0	0
Foreign currency translation adjustments, net, tax (expense) benefit	0	0
Foreign currency translation adjustments, after-tax:
Foreign currency translation adjustments, after-tax	(14)	(32)
Business disposition, after-tax	0	14
Foreign currency translation adjustments, net, after-tax	(14)	(18)
Deferred gains (losses) on hedge contracts, pre-tax:
Current deferrals, pre-tax	10	5
Deferred gains on hedge contracts, net, pre-tax	10	5
Deferred gains (losses) on hedge contracts, tax:
Current deferrals, tax (expense) benefit	(3)	(1)
Deferred gains on hedge contracts, net, tax (expense) benefit	(3)	(1)
Deferred gains (losses) on hedge contracts, after-tax:
Current deferrals, after-tax	7	4
Deferred gains on hedge contracts, net, after-tax	7	4
Other comprehensive income (loss), pre-tax	19	27
Other comprehensive income (loss), tax (expense) benefit	(9)	(11)
Other comprehensive income	$ 10	$ 16

Segment Information - Operating

Segment Information - Operating and Reportable Segments (Details)	3 Months Ended
	Apr. 02, 2022businessSegment
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 ($)	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Revenues
Total revenues	$ 3,001,000,000	$ 2,879,000,000
Reconciliation of segment profit to income from continuing operations before income taxes
Special charges	0	(6,000,000)
Gain on business disposition	0	15,000,000
Income before income taxes	232,000,000	190,000,000
Operating Segment
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	304,000,000	256,000,000
Reconciling Items
Reconciliation of segment profit to income from continuing operations before income taxes
Corporate expenses and other, net	(44,000,000)	(40,000,000)
Special charges	0	(6,000,000)
Gain on business disposition	0	15,000,000
Textron Aviation
Revenues
Total revenues	1,040,000,000	865,000,000
Bell
Revenues
Total revenues	834,000,000	846,000,000
Textron Systems
Revenues
Total revenues	273,000,000	328,000,000
Industrial
Revenues
Total revenues	838,000,000	825,000,000
Finance
Revenues
Total revenues	16,000,000	15,000,000
Manufacturing group
Reconciliation of segment profit to income from continuing operations before income taxes
Gain on business disposition	0	15,000,000
Manufacturing group | Reconciling Items
Reconciliation of segment profit to income from continuing operations before income taxes
Interest expense, net for Manufacturing group	(28,000,000)	(35,000,000)
Manufacturing group | Textron Aviation | Operating Segment
Revenues
Total revenues	1,040,000,000	865,000,000
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	121,000,000	47,000,000
Manufacturing group | Bell | Operating Segment
Revenues
Total revenues	834,000,000	846,000,000
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	98,000,000	105,000,000
Manufacturing group | Textron Systems | Operating Segment
Revenues
Total revenues	273,000,000	328,000,000
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	33,000,000	51,000,000
Manufacturing group | Industrial | Operating Segment
Revenues
Total revenues	838,000,000	825,000,000
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	43,000,000	47,000,000
Finance group
Revenues
Total revenues	16,000,000	15,000,000
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	16,000,000	15,000,000
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	$ 9,000,000	$ 6,000,000

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Revenues
Revenues	$ 3,001	$ 2,879
United States
Revenues
Revenues	2,079	1,900
Europe
Revenues
Revenues	346	366
Other international
Revenues
Revenues	576	613
Commercial
Revenues
Revenues	2,125	2,005
U.S. Government
Revenues
Revenues	876	874
Textron Aviation
Revenues
Revenues	1,040	865
Textron Aviation | United States
Revenues
Revenues	732	609
Textron Aviation | Europe
Revenues
Revenues	119	84
Textron Aviation | Other international
Revenues
Revenues	189	172
Textron Aviation | Commercial
Revenues
Revenues	1,021	846
Textron Aviation | U.S. Government
Revenues
Revenues	19	19
Textron Aviation | Aircraft
Revenues
Revenues	646	535
Textron Aviation | Aftermarket parts and services
Revenues
Revenues	394	330
Bell
Revenues
Revenues	834	846
Bell | United States
Revenues
Revenues	670	616
Bell | Europe
Revenues
Revenues	28	36
Bell | Other international
Revenues
Revenues	136	194
Bell | Commercial
Revenues
Revenues	234	266
Bell | U.S. Government
Revenues
Revenues	600	580
Bell | Military aircraft and support programs
Revenues
Revenues	597	577
Bell | Commercial helicopters, parts and services
Revenues
Revenues	237	269
Textron Systems
Revenues
Revenues	273	328
Textron Systems | United States
Revenues
Revenues	246	289
Textron Systems | Europe
Revenues
Revenues	8	10
Textron Systems | Other international
Revenues
Revenues	19	29
Textron Systems | Commercial
Revenues
Revenues	19	58
Textron Systems | U.S. Government
Revenues
Revenues	254	270
Industrial
Revenues
Revenues	838	825
Industrial | United States
Revenues
Revenues	426	378
Industrial | Europe
Revenues
Revenues	190	236
Industrial | Other international
Revenues
Revenues	222	211
Industrial | Commercial
Revenues
Revenues	835	820
Industrial | U.S. Government
Revenues
Revenues	3	5
Industrial | Fuel systems and functional components
Revenues
Revenues	464	497
Industrial | Specialized vehicles
Revenues
Revenues	374	328
Finance
Revenues
Revenues	16	15
Finance | United States
Revenues
Revenues	5	8
Finance | Europe
Revenues
Revenues	1	0
Finance | Other international
Revenues
Revenues	10	7
Finance | Commercial
Revenues
Revenues	16	15
Finance | U.S. Government
Revenues
Revenues	$ 0	$ 0

Revenues - Remaining Performanc

Revenues - Remaining Performance Obligations (Details) $ in Billions	Apr. 02, 2022USD ($)
Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligation	$ 12.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-03
Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligation, percent	78.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	21 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31
Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligation, percent	19.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	24 months

Revenues - Contract Assets and

Revenues - Contract Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Jan. 01, 2022
Contract Assets and Liabilities
Contract assets	$ 754		$ 717
Contract liabilities	1,500		$ 1,200
Revenue recognized included in contract liabilities	$ 206	$ 278

Share-Based Compensation - Comp

Share-Based Compensation - Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 34	$ 55
Income tax expense	(8)	(13)
Total compensation expense included in net income	26	42
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 12	$ 12

Share-Based Compensation - Stoc

Share-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	Mar. 01, 2022	Mar. 01, 2021	Apr. 02, 2022	Apr. 03, 2021
Additional general disclosures
Aggregate intrinsic value of outstanding options			$ 199
Weighted-average remaining contractual life of outstanding stock options			6 years 6 months
Aggregate intrinsic value of exercisable options			$ 153
Weighted-average remaining contractual life of exercisable options			5 years 3 months 18 days
Total intrinsic value of options exercised			$ 23	$ 15
Stock options
Share-Based Compensation
Maximum term of options			10 years
Performance share units vesting period			3 years
Weighted-average assumptions used in Black-Scholes option-pricing model
Fair value of options at grant date (in dollars per share)	$ 19.95	$ 15.05
Dividend yield	0.10%	0.20%
Expected volatility	29.20%	33.60%
Risk-free interest rate	1.90%	0.70%
Expected term (in years)	4 years 9 months 18 days	4 years 8 months 12 days
Number of Options
Outstanding at beginning of period (in shares)			8,289
Granted (in shares)			1,049
Exercised (in shares)			(705)
Forfeited or expired (in shares)			(28)
Outstanding at end of period (in shares)			8,605
Exercisable at end of period (in shares)			5,902
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share)			$ 46.18
Granted (in dollars per share)			71.07
Exercised (in dollars per share)			(38.35)
Forfeited or expired (in dollars per share)			(45.34)
Outstanding at end of period (in dollars per share)			49.86
Exercisable at end of period (in dollars per share)			$ 47.13

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Units Payable in Stock
Number of Units
Outstanding at beginning of period, nonvested (in shares)	569
Granted (in shares)	84
Vested (in shares)	(126)
Forfeited (in shares)	0
Outstanding at end of period, nonvested (in shares)	527
Weighted- Average Grant Date Fair Value
Outstanding at beginning of period, nonvested (in dollars per share)	$ 50.01
Granted (in dollars per share)	71.07
Vested (in dollars per share)	(53.95)
Forfeited (in dollars per share)	0
Outstanding at end of period, nonvested (in dollars per share)	$ 52.44
Units Payable in Cash
Number of Units
Outstanding at beginning of period, nonvested (in shares)	1,158
Granted (in shares)	223
Vested (in shares)	(246)
Forfeited (in shares)	(10)
Outstanding at end of period, nonvested (in shares)	1,125
Weighted- Average Grant Date Fair Value
Outstanding at beginning of period, nonvested (in dollars per share)	$ 49.92
Granted (in dollars per share)	71.07
Vested (in dollars per share)	(54.02)
Forfeited (in dollars per share)	(49.55)
Outstanding at end of period, nonvested (in dollars per share)	$ 53.23
Restricted Stock Units
Fair value
Fair value of awards vested	$ 24	$ 19
Cash paid	$ 17	$ 13

Share-Based Compensation - Perf

Share-Based Compensation - Performance Share Units (Details) - Performance Share Units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Number of Units
Outstanding at beginning of period, nonvested (in shares)	526
Granted (in shares)	174
Outstanding at end of period, nonvested (in shares)	700
Weighted- Average Grant Date Fair Value
Outstanding at beginning of period, nonvested (in dollars per share)	$ 45.87
Granted (in dollars per share)	71.07
Outstanding at end of period, nonvested (in dollars per share)	$ 52.14
Fair value
Cash paid	$ 15	$ 6

Retirement Plans (Details)

Retirement Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Pension Benefits
Net periodic benefit cost (credit)
Service cost	$ 27	$ 29
Interest cost	68	63
Expected return on plan assets	(153)	(144)
Amortization of net actuarial loss	22	39
Amortization of prior service cost	3	3
Net periodic benefit income	(33)	(10)
Pension Benefits | United States
Net periodic benefit cost (credit)
Defined contribution component	4	3
Postretirement Benefits Other Than Pensions
Net periodic benefit cost (credit)
Service cost	1	1
Interest cost	1	1
Amortization of net actuarial loss	(1)	(1)
Amortization of prior service cost	(1)	(1)
Net periodic benefit income	$ 0	$ 0

Special Charges (Details)

Special Charges (Details) - USD ($)	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Special Charges [Abstract]
Special charges	$ 0	$ 6,000,000
Restructuring Reserve [Roll Forward]
Beginning balance	28,000,000
Cash paid	(6,000,000)
Ending balance	22,000,000
Severance Costs
Restructuring Reserve [Roll Forward]
Beginning balance	19,000,000
Cash paid	(6,000,000)
Ending balance	13,000,000
Contract Terminations and Other
Restructuring Reserve [Roll Forward]
Beginning balance	9,000,000
Cash paid	0
Ending balance	$ 9,000,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	16.80%	10.00%
U.S. federal statutory income tax rate	21.00%	21.00%
Tax benefit recognized for additional research and development credits		$ 12