Textron (TXT) 10-Q 27 Jul 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jul. 01, 2023	Jul. 14, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 01, 2023
Document Transition Report	false
Entity File Number	1-5480
Entity Registrant Name	Textron Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	05-0315468
Entity Address, Address Line One	40 Westminster Street
Entity Address, City or Town	Providence
Entity Address, State or Province	RI
Entity Address, Postal Zip Code	02903
City Area Code	401
Local Phone Number	421-2800
Title of 12(b) Security	Common stock, $0.125 par value
Trading Symbol	TXT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		198,070,588
Entity Central Index Key	0000217346
Current Fiscal Year End Date	--12-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Revenues
Total revenues	$ 3,424	$ 3,154	$ 6,448	$ 6,155
Costs, expenses and other
Selling and administrative expense	289	279	594	584
Interest expense, net	19	31	39	63
Non-service components of pension and postretirement income, net	(59)	(60)	(118)	(120)
Total costs, expenses and other	3,095	2,891	5,892	5,660
Income before income taxes	329	263	556	495
Income tax expense	66	45	102	84
Income from continuing operations	263	218	454	411
Loss from discontinued operations	0	(1)	0	(1)
Net income	$ 263	$ 217	$ 454	$ 410
Basic earnings per share
Continuing operations (in dollars per share)	$ 1.31	$ 1.01	$ 2.24	$ 1.90
Diluted earnings per share
Continuing operations (in dollars per share)	$ 1.30	$ 1	$ 2.22	$ 1.88
Manufacturing group
Costs, expenses and other
Income from continuing operations			$ 438	$ 395
Finance group
Revenues
Total revenues	$ 18	$ 14	30	30
Costs, expenses and other
Income from continuing operations			16	16
Product
Costs, expenses and other
Cost of products/services sold	2,465	2,304	4,641	4,373
Product | Manufacturing group
Revenues
Total revenues	2,917	2,689	5,467	5,137
Service
Costs, expenses and other
Cost of products/services sold	381	337	736	760
Service | Manufacturing group
Revenues
Total revenues	$ 489	$ 451	$ 951	$ 988

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 263	$ 217	$ 454	$ 410
Other comprehensive income (loss), net of tax
Pension and postretirement benefits adjustments, net of reclassifications	0	17	0	34
Foreign currency translation adjustments	4	(90)	32	(104)
Deferred gains (losses) on hedge contracts, net of reclassifications	8	(3)	6	4
Other comprehensive income (loss)	12	(76)	38	(66)
Comprehensive income	$ 275	$ 141	$ 492	$ 344

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) shares in Thousands, $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Assets
Inventories	$ 4,108	$ 3,550
Finance receivables, net	574	563
Total assets	16,485	16,293
Liabilities
Total liabilities	9,451	9,180
Shareholders’ equity
Common stock	26	26
Capital surplus	1,973	1,880
Treasury stock	(740)	(84)
Retained earnings	6,349	5,903
Accumulated other comprehensive loss	(574)	(612)
Total shareholders’ equity	7,034	7,113
Total liabilities and shareholders’ equity	$ 16,485	$ 16,293
Common shares outstanding (in shares)	198,230	206,161
Manufacturing group
Assets
Cash and equivalents	$ 1,695	$ 1,963
Accounts receivable, net	953	855
Inventories	4,108	3,550
Other current assets	829	1,033
Total current assets	7,585	7,401
Property, plant and equipment, less accumulated depreciation and amortization of $5,212 and $5,084, respectively	2,487	2,523
Goodwill	2,291	2,283
Other assets	3,472	3,422
Total assets	15,835	15,629
Liabilities
Current portion of long-term debt	357	7
Accounts payable	1,227	1,018
Other current liabilities	2,820	2,645
Total current liabilities	4,404	3,670
Other liabilities	1,797	1,879
Long-term debt	2,825	3,175
Total liabilities	9,026	8,724
Finance group
Assets
Cash and equivalents	55	72
Finance receivables, net	574	563
Other assets	21	29
Total assets	650	664
Liabilities
Other liabilities	71	81
Debt	354	375
Total liabilities	$ 425	$ 456

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization	$ 5,212	$ 5,084

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Cash flows from operating activities
Income from continuing operations	$ 454	$ 411
Non-cash items:
Depreciation and amortization	193	191
Deferred income taxes	(77)	(118)
Other, net	66	55
Changes in assets and liabilities:
Accounts receivable, net	(97)	(48)
Inventories	(553)	(246)
Other assets	252	85
Accounts payable	207	24
Other liabilities	116	269
Income taxes, net	14	32
Pension, net	(102)	(83)
Captive finance receivables, net	(15)	35
Other operating activities, net	2	8
Net cash provided by (used in) operating activities of continuing operations	460	615
Net cash used in operating activities of discontinued operations	(1)	(2)
Net cash provided by (used in) operating activities	459	613
Cash flows from investing activities
Capital expenditures	(145)	(114)
Net cash used in business acquisitions	0	(198)
Net proceeds from corporate-owned life insurance policies	38	25
Proceeds from sale of property, plant and equipment	0	18
Finance receivables repaid	19	21
Other investing activities, net	2	44
Net cash provided by (used in) investing activities	(86)	(204)
Cash flows from financing activities
Decrease in short-term debt	0	(15)
Principal payments on long-term debt and nonrecourse debt	(34)	(223)
Purchases of Textron common stock	(650)	(439)
Dividends paid	(8)	(9)
Proceeds from options exercised	31	32
Other financing activities, net	(5)	(4)
Net cash used in financing activities	(666)	(658)
Effect of exchange rate changes on cash and equivalents	8	(27)
Net decrease in cash and equivalents	(285)	(276)
Cash and equivalents at beginning of period	2,035	2,117
Cash and equivalents at end of period	$ 1,750	$ 1,841

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Unaudited) - Manufacturing Group and Finance Group - USD ($) $ in Millions	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Cash flows from operating activities
Income from continuing operations	$ 454	$ 411
Non-cash items:
Depreciation and amortization	193	191
Deferred income taxes	(77)	(118)
Other, net	66	55
Changes in assets and liabilities:
Accounts receivable, net	(97)	(48)
Inventories	(553)	(246)
Other assets	252	85
Accounts payable	207	24
Other liabilities	116	269
Income taxes, net	14	32
Pension, net	(102)	(83)
Other operating activities, net	2	8
Net cash provided by (used in) operating activities of continuing operations	460	615
Net cash used in operating activities of discontinued operations	(1)	(2)
Net cash provided by (used in) operating activities	459	613
Cash flows from investing activities
Capital expenditures	(145)	(114)
Net cash used in business acquisitions	0	(198)
Net proceeds from corporate-owned life insurance policies	38	25
Proceeds from sale of property, plant and equipment	0	18
Finance receivables repaid	19	21
Other investing activities, net	2	44
Net cash provided by (used in) investing activities	(86)	(204)
Cash flows from financing activities
Decrease in short-term debt	0	(15)
Principal payments on long-term debt and nonrecourse debt	(34)	(223)
Purchases of Textron common stock	(650)	(439)
Dividends paid	(8)	(9)
Proceeds from options exercised	31	32
Other financing activities, net	(5)	(4)
Net cash used in financing activities	(666)	(658)
Effect of exchange rate changes on cash and equivalents	8	(27)
Net decrease in cash and equivalents	(285)	(276)
Cash and equivalents at beginning of period	2,035	2,117
Cash and equivalents at end of period	1,750	1,841
Manufacturing group
Cash flows from operating activities
Income from continuing operations	438	395
Non-cash items:
Depreciation and amortization	193	191
Deferred income taxes	(77)	(106)
Other, net	69	62
Changes in assets and liabilities:
Accounts receivable, net	(97)	(48)
Inventories	(553)	(246)
Other assets	246	85
Accounts payable	207	24
Other liabilities	125	279
Income taxes, net	16	28
Pension, net	(102)	(83)
Other operating activities, net	2	8
Net cash provided by (used in) operating activities of continuing operations	467	589
Net cash used in operating activities of discontinued operations	(1)	(2)
Net cash provided by (used in) operating activities	466	587
Cash flows from investing activities
Capital expenditures	(145)	(114)
Net cash used in business acquisitions	0	(198)
Net proceeds from corporate-owned life insurance policies	38	25
Proceeds from sale of property, plant and equipment	0	18
Finance receivables repaid	0	0
Finance receivables originated	0	0
Other investing activities, net	0	0
Net cash provided by (used in) investing activities	(107)	(269)
Cash flows from financing activities
Decrease in short-term debt	0	(15)
Principal payments on long-term debt and nonrecourse debt	(3)	(14)
Purchases of Textron common stock	(650)	(439)
Dividends paid	(8)	(9)
Proceeds from options exercised	31	32
Other financing activities, net	(5)	(4)
Net cash used in financing activities	(635)	(449)
Effect of exchange rate changes on cash and equivalents	8	(27)
Net decrease in cash and equivalents	(268)	(158)
Cash and equivalents at beginning of period	1,963	1,922
Cash and equivalents at end of period	1,695	1,764
Finance group
Cash flows from operating activities
Income from continuing operations	16	16
Non-cash items:
Depreciation and amortization	0	0
Deferred income taxes	0	(12)
Other, net	(3)	(7)
Changes in assets and liabilities:
Accounts receivable, net	0	0
Inventories	0	0
Other assets	6	0
Accounts payable	0	0
Other liabilities	(9)	(10)
Income taxes, net	(2)	4
Pension, net	0	0
Other operating activities, net	0	0
Net cash provided by (used in) operating activities of continuing operations	8	(9)
Net cash used in operating activities of discontinued operations	0	0
Net cash provided by (used in) operating activities	8	(9)
Cash flows from investing activities
Capital expenditures	0	0
Net cash used in business acquisitions	0	0
Net proceeds from corporate-owned life insurance policies	0	0
Proceeds from sale of property, plant and equipment	0	0
Finance receivables repaid	67	79
Finance receivables originated	(63)	(23)
Other investing activities, net	2	44
Net cash provided by (used in) investing activities	6	100
Cash flows from financing activities
Decrease in short-term debt	0	0
Principal payments on long-term debt and nonrecourse debt	(31)	(209)
Purchases of Textron common stock	0	0
Dividends paid	0	0
Proceeds from options exercised	0	0
Other financing activities, net	0	0
Net cash used in financing activities	(31)	(209)
Effect of exchange rate changes on cash and equivalents	0	0
Net decrease in cash and equivalents	(17)	(118)
Cash and equivalents at beginning of period	72	195
Cash and equivalents at end of period	$ 55	$ 77

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Our Consolidated Financial Statements include the accounts of Textron Inc. (Textron) and its majority-owned subsidiaries. We have prepared these unaudited consolidated financial statements in accordance with accounting principles generally accepted in the U.S. for interim financial information. Accordingly, these interim financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. The consolidated interim financial statements included in this quarterly report should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements. All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group. Use of Estimates We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined. Contract Estimates For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable. In the second quarter of 2023, our cumulative catch-up adjustments increased segment profit by $10 million and net income by $8 million, $0.04 per diluted share. In the second quarter of 2022, our cumulative catch-up adjustments decreased segment profit by $4 million and net income by $3 million, $0.01 per diluted share.

Accounts Receivable and Finance

Accounts Receivable and Finance Receivables	6 Months Ended
	Jul. 01, 2023
Receivables [Abstract]
Accounts Receivable and Finance Receivables	Accounts Receivable and Finance Receivables Accounts Receivable Accounts receivable is composed of the following: (In millions) July 1, December 31, Commercial $ 855 $ 755 U.S. Government contracts 118 124 973 879 Allowance for credit losses (20) (24) Total accounts receivable, net $ 953 $ 855 Finance Receivables Finance receivables are presented in the following table: (In millions) July 1, December 31, Finance receivables $ 597 $ 587 Allowance for credit losses (23) (24) Total finance receivables, net $ 574 $ 563 Finance Receivable Portfolio Quality We internally assess the quality of our finance receivables based on a number of key credit quality indicators and statistics such as delinquency, loan balance to estimated collateral value and the financial strength of individual borrowers and guarantors. Because many of these indicators are difficult to apply across an entire class of receivables, we evaluate individual loans on a quarterly basis and classify these loans into three categories based on the key credit quality indicators for the individual loan. These three categories are performing, watchlist and nonaccrual. We classify finance receivables as nonaccrual if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically classify accounts as nonaccrual once they are contractually delinquent by more than three months unless collection of principal and interest is not doubtful. Accounts are classified as watchlist when credit quality indicators have deteriorated as compared with typical underwriting criteria, and we believe collection of full principal and interest is probable but not certain. All other finance receivables that do not meet the watchlist or nonaccrual categories are classified as performing. We measure delinquency based on the contractual payment terms of our finance receivables. In determining the delinquency aging category of an account, any/all principal and interest received is applied to the most past-due principal and/or interest amounts due. If a significant portion of the contractually due payment is delinquent, the entire finance receivable balance is reported in accordance with the most past-due delinquency aging category. Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) July 1, December 31, Performing $ 554 $ 515 Watchlist 26 26 Nonaccrual 17 46 Nonaccrual as a percentage of finance receivables 2.85% 7.84% Current and less than 31 days past due $ 589 $ 579 31-60 days past due 2 7 61-90 days past due 6 — Over 90 days past due — 1 60+ days contractual delinquency as a percentage of finance receivables 1.01% 0.17% At July 1, 2023, 36% of our performing finance receivables were originated since the beginning of 2021 and 30% were originated from 2018 to 2020. For finance receivables categorized as watchlist 94% were originated since the beginning of 2020 and for nonaccrual, 40% were originated from 2018 to 2020 with the remainder prior to 2018. On a quarterly basis, we evaluate individual larger balance accounts for impairment. A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality indicators described above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of principal and interest remains probable, but the account’s original terms have been, or are expected to be, significantly modified. If the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification. A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles. (In millions) July 1, December 31, Finance receivables evaluated collectively $ 494 $ 450 Finance receivables evaluated individually 17 46 Allowance for credit losses based on collective evaluation 20 21 Allowance for credit losses based on individual evaluation 3 3 Impaired finance receivables with specific allowance for credit losses $ 11 $ 15 Impaired finance receivables with no specific allowance for credit losses 6 31 Unpaid principal balance of impaired finance receivables 27 60 Allowance for credit losses on impaired finance receivables 3 3 Average recorded investment of impaired finance receivables 34 67

Inventories

Inventories	6 Months Ended
	Jul. 01, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are composed of the following: (In millions) July 1, December 31, Finished goods $ 1,133 $ 991 Work in process 1,820 1,540 Raw materials and components 1,155 1,019 Total inventories $ 4,108 $ 3,550

Warranty Liability

Warranty Liability	6 Months Ended
	Jul. 01, 2023
Payables and Accruals [Abstract]
Warranty Liability	Warranty Liability Changes in our warranty liability are as follows: Six Months Ended (In millions) July 1, July 2, Beginning of period $ 149 $ 127 Provision 33 34 Settlements (35) (34) Adjustments* 13 10 End of period $ 160 $ 137 * Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Leases

Leases	6 Months Ended
	Jul. 01, 2023
Leases [Abstract]
Leases	Leases We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide through operating leases. Our operating leases have remaining lease terms up to 26 years, which include options to extend the lease term for periods up to 25 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $17 million in both the second quarter of 2023 and 2022, and $34 million in both the first half of 2023 and 2022. Variable and short-term lease costs were not significant. Cash paid for operating leases totaled $34 million and $35 million in the first half of 2023 and 2022, respectively, and is classified in cash flows from operating activities. Noncash transactions totaled $24 million and $17 million in the first half of 2023 and 2022, respectively, reflecting the recognition of operating lease assets and liabilities for new or extended leases. Balance sheet and other information related to our operating leases is as follows: (Dollars in millions) July 1, December 31, Other assets $ 369 $ 372 Other current liabilities 53 54 Other liabilities 325 326 Weighted-average remaining lease term (in years) 10.3 10.4 Weighted-average discount rate 4.33% 4.14% At July 1, 2023, maturities of our operating lease liabilities on an undiscounted basis totaled $36 million for the remainder of 2023, $64 million for 2024, $56 million for 2025, $43 million for 2026, $38 million for 2027 and $244 million thereafter.

Derivative Instruments and Fair

Derivative Instruments and Fair Value Measurements	6 Months Ended
	Jul. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Fair Value Measurements	Derivative Instruments and Fair Value Measurements We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We prioritize the assumptions that market participants would use in pricing the asset or liability into a three-tier fair value hierarchy. This fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs in which little or no market data exist, requiring companies to develop their own assumptions. Observable inputs that do not meet the criteria of Level 1, which include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets and liabilities in markets that are not active, are categorized as Level 2. Level 3 inputs are those that reflect our estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Valuation techniques for assets and liabilities measured using Level 3 inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data. These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain. Assets and Liabilities Recorded at Fair Value on a Recurring Basis We manufacture and sell our products in a number of countries throughout the world, and, therefore, we are exposed to movements in foreign currency exchange rates. We primarily utilize foreign currency exchange contracts with maturities of no more than three years to manage this volatility. These contracts qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales, inventory purchases and overhead expenses. Net gains and losses recognized in earnings and Accumulated other comprehensive loss on cash flow hedges, including gains and losses related to hedge ineffectiveness, were not significant in the periods presented. Our foreign currency exchange contracts are measured at fair value using the market method valuation technique. The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers. These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2. At July 1, 2023 and December 31, 2022, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $567 million and $354 million, respectively. At July 1, 2023, the fair value amounts of our foreign currency exchange contracts were a $5 million asset and a $9 million liability. At December 31, 2022, the fair value amount of our foreign currency exchange contracts was an $11 million liability. Our Finance group enters into interest rate swap agreements to mitigate certain exposures to fluctuations in interest rates. By using these contracts, we are able to convert the floating-rate cash flows to fixed-rate cash flows on certain debt. These agreements are designated as cash flow hedges. In the second quarter of 2023, we entered into swap agreements related to our Floating Rate Junior Subordinated Notes for an aggregate notional amount of $185 million and a weighted-average fixed rate of 5.17%; these agreements have a forward start date of August 15, 2023 and maturities ranging from August 15, 2025 to August 15, 2028. Subsequent to August 15, 2023, in compliance with the Adjustable Interest Rate (LIBOR) Act of 2022, the benchmark interest rate on the Notes will change to the three-month CME Term Secured Overnight Funding Rate + 1.99661%. At December 31, 2022, we had a swap agreement with a notional amount of $272 million that matures on August 15, 2023. We also entered into an interest rate swap agreement in May 2022 with a notional amount of $25 million that matures in June 2025 and effectively converts variable-rate interest on a term loan to a fixed rate of 2.75%. At July 1, 2023 and December 31, 2022, the fair value of our outstanding swap agreements was an $8 million asset. The fair value of these swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2. Assets and Liabilities Not Recorded at Fair Value The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows: July 1, 2023 December 31, 2022 Carrying Estimated Carrying Estimated (In millions) Value Fair Value Value Fair Value Manufacturing group Debt, excluding leases $ (3,174) $ (2,904) $ (3,175) $ (2,872) Finance group Finance receivables, excluding leases 405 396 390 369 Debt (354) (281) (375) (294) Fair value for the Manufacturing group debt is determined using market observable data for similar transactions (Level 2). The fair value for the Finance group debt was determined primarily based on discounted cash flow analyses using observable market inputs from debt with similar duration, subordination and credit default expectations (Level 2). Fair value estimates for finance receivables were determined based on internally developed discounted cash flow models primarily utilizing significant unobservable inputs (Level 3), which include estimates of the rate of return, financing cost, capital structure and/or discount rate expectations of current market participants combined with estimated loan cash flows based on credit losses, payment rates and expectations of borrowers’ ability to make payments on a timely basis.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jul. 01, 2023
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity A reconciliation of Shareholders’ equity is presented below: (In millions) Common Capital Treasury Retained Accumulated Total Three months ended July 1, 2023 Beginning of period $ 26 $ 1,942 $ (464) $ 6,090 $ (586) $ 7,008 Net income — — — 263 — 263 Other comprehensive income — — — — 12 12 Share-based compensation activity — 31 — — — 31 Dividends declared — — — (4) — (4) Purchases of common stock, — — (276) — — (276) End of period $ 26 $ 1,973 $ (740) $ 6,349 $ (574) $ 7,034 Three months ended July 2, 2022 Beginning of period $ 28 $ 1,924 $ (314) $ 6,058 $ (779) $ 6,917 Net income — — — 217 — 217 Other comprehensive loss — — — — (76) (76) Share-based compensation activity — 29 — — — 29 Dividends declared — — — (4) — (4) Purchases of common stock — — (282) — — (282) End of period $ 28 $ 1,953 $ (596) $ 6,271 $ (855) $ 6,801 Six months ended July 1, 2023 Beginning of period $ 26 $ 1,880 $ (84) $ 5,903 $ (612) $ 7,113 Net income — — — 454 — 454 Other comprehensive income — — — — 38 38 Share-based compensation activity — 93 — — — 93 Dividends declared — — — (8) — (8) Purchases of common stock, — — (656) — — (656) End of period $ 26 $ 1,973 $ (740) $ 6,349 $ (574) $ 7,034 Six months ended July 2, 2022 Beginning of period $ 28 $ 1,863 $ (157) $ 5,870 $ (789) $ 6,815 Net income — — — 410 — 410 Other comprehensive loss — — — — (66) (66) Share-based compensation activity — 90 — — — 90 Dividends declared — — — (9) — (9) Purchases of common stock — — (439) — — (439) End of period $ 28 $ 1,953 $ (596) $ 6,271 $ (855) $ 6,801 *Includes amounts accrued for excise tax imposed on common share repurchases beginning on January 1, 2023 as part of the Inflation Reduction Act that totaled $3 million for the second quarter of 2023 and $6 million for first half of 2023. Dividends per share of common stock were $0.02 for both the second quarter of 2023 and 2022 and $0.04 for both the first half of 2023 and 2022. Earnings Per Share We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period. Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options. The weighted-average shares outstanding for basic and diluted EPS are as follows: Three Months Ended Six Months Ended (In thousands) July 1, July 2, July 1, July 2, Basic weighted-average shares outstanding 200,701 214,587 202,768 215,799 Dilutive effect of stock options 1,808 2,071 1,992 2,334 Diluted weighted-average shares outstanding 202,509 216,658 204,760 218,133 Stock options to purchase 2.0 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for both the second quarter and first half of 2023 as their effect would have been anti-dilutive. For both the second quarter and first half of 2022, stock options to purchase 1.0 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive. Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) The components of Accumulated other comprehensive loss are presented below: (In millions) Pension and Foreign Deferred Accumulated Balance at December 31, 2022 $ (516) $ (94) $ (2) $ (612) Other comprehensive income before reclassifications — 32 3 35 Reclassified from Accumulated other comprehensive loss — — 3 3 Balance at July 1, 2023 $ (516) $ (62) $ 4 $ (574) Balance at January 1, 2022 $ (799) $ 9 $ 1 $ (789) Other comprehensive loss before reclassifications — (104) 4 (100) Reclassified from Accumulated other comprehensive loss 34 — — 34 Balance at July 2, 2022 $ (765) $ (95) $ 5 $ (855) The before and after-tax components of Other comprehensive income (loss) are presented below: July 1, 2023 July 2, 2022 (In millions) Pre-Tax Tax After-tax Pre-Tax Tax After-tax Three Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial (gain) loss* $ (1) $ — $ (1) $ 21 $ (6) $ 15 Amortization of prior service cost* 2 (1) 1 2 — 2 Pension and postretirement benefits adjustments, net 1 (1) — 23 (6) 17 Foreign currency translation adjustments 4 — 4 (90) — (90) Deferred gains (losses) on hedge contracts: Current deferrals 7 (1) 6 (5) 2 (3) Reclassification adjustments 2 — 2 — — — Deferred gains (losses) on hedge contracts, net 9 (1) 8 (5) 2 (3) Total $ 14 $ (2) $ 12 $ (72) $ (4) $ (76) Six Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial (gain) loss* $ (3) $ 1 $ (2) $ 42 $ (11) $ 31 Amortization of prior service cost* 4 (2) 2 4 (1) 3 Pension and postretirement benefits adjustments, net 1 (1) — 46 (12) 34 Foreign currency translation adjustments 32 — 32 (104) — (104) Deferred gains on hedge contracts: Current deferrals 3 — 3 5 (1) 4 Reclassification adjustments 4 (1) 3 — — — Deferred gains on hedge contracts, net 7 (1) 6 5 (1) 4 Total $ 40 $ (2) $ 38 $ (53) $ (13) $ (66) *These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2022 Annual Report on Form 10-K for additional information.

Segment Information

Segment Information	6 Months Ended
	Jul. 01, 2023
Segment Reporting [Abstract]
Segment Information	Segment Information We operate in, and reported financial information for, the following six business segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation and Finance. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Beginning in 2023, we changed how we measure our manufacturing segment operating results to exclude the non-service components of pension and postretirement income, net; LIFO inventory provision; and intangible asset amortization. This measure also continues to exclude interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. The prior period has been recast to conform to this presentation. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense. Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below: Three Months Ended Six Months Ended (In millions) July 1, July 2, July 1, July 2, Revenues Textron Aviation $ 1,362 $ 1,284 $ 2,511 $ 2,324 Bell 701 687 1,322 1,521 Textron Systems 306 293 612 566 Industrial 1,026 871 1,958 1,709 Textron eAviation 11 5 15 5 Finance 18 14 30 30 Total revenues $ 3,424 $ 3,154 $ 6,448 $ 6,155 Segment Profit Textron Aviation $ 171 $ 149 $ 296 $ 259 Bell 65 54 125 145 Textron Systems 37 38 71 66 Industrial 79 37 120 76 Textron eAviation (12) (7) (21) (7) Finance 12 10 20 19 Segment profit 352 281 611 558 Corporate expenses and other, net (21) (20) (60) (72) Interest expense, net for Manufacturing group (16) (28) (33) (56) LIFO inventory provision (35) (17) (60) (29) Intangible asset amortization (10) (13) (20) (26) Non-service components of pension and postretirement income, net 59 60 118 120 Income before income taxes $ 329 $ 263 $ 556 $ 495

Revenues

Revenues	6 Months Ended
	Jul. 01, 2023
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Disaggregation of Revenues Our revenues for our segments disaggregated by major product type are presented below: Three Months Ended Six Months Ended (In millions) July 1, July 2, July 1, July 2, Aircraft $ 920 $ 856 $ 1,638 $ 1,502 Aftermarket parts and services 442 428 873 822 Textron Aviation 1,362 1,284 2,511 2,324 Military aircraft and support programs 395 402 780 999 Commercial helicopters, parts and services 306 285 542 522 Bell 701 687 1,322 1,521 Textron Systems 306 293 612 566 Fuel systems and functional components 523 435 1,011 899 Specialized vehicles 503 436 947 810 Industrial 1,026 871 1,958 1,709 Textron eAviation 11 5 15 5 Finance 18 14 30 30 Total revenues $ 3,424 $ 3,154 $ 6,448 $ 6,155 Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Bell Textron Industrial Textron eAviation Finance Total Three months ended July 1, 2023 Customer type: Commercial $ 1,321 $ 301 $ 70 $ 1,024 $ 11 $ 18 $ 2,745 U.S. Government 41 400 236 2 — — 679 Total revenues $ 1,362 $ 701 $ 306 $ 1,026 $ 11 $ 18 $ 3,424 Geographic location: United States $ 933 $ 534 $ 274 $ 566 $ 7 $ 4 $ 2,318 Europe 159 35 17 201 4 1 417 Other international 270 132 15 259 — 13 689 Total revenues $ 1,362 $ 701 $ 306 $ 1,026 $ 11 $ 18 $ 3,424 Three months ended July 2, 2022 Customer type: Commercial $ 1,253 $ 279 $ 65 $ 862 $ 5 $ 14 $ 2,478 U.S. Government 31 408 228 9 — — 676 Total revenues $ 1,284 $ 687 $ 293 $ 871 $ 5 $ 14 $ 3,154 Geographic location: United States $ 776 $ 504 $ 268 $ 466 $ 1 $ 5 $ 2,020 Europe 239 43 10 185 3 — 480 Other international 269 140 15 220 1 9 654 Total revenues $ 1,284 $ 687 $ 293 $ 871 $ 5 $ 14 $ 3,154 Six months ended July 1, 2023 Customer type: Commercial $ 2,428 $ 533 $ 144 $ 1,951 $ 15 $ 30 $ 5,101 U.S. Government 83 789 468 7 — — 1,347 Total revenues $ 2,511 $ 1,322 $ 612 $ 1,958 $ 15 $ 30 $ 6,448 Geographic location: United States $ 1,769 $ 994 $ 549 $ 1,060 $ 8 $ 8 $ 4,388 Europe 225 54 31 405 6 1 722 Other international 517 274 32 493 1 21 1,338 Total revenues $ 2,511 $ 1,322 $ 612 $ 1,958 $ 15 $ 30 $ 6,448 Six months ended July 2, 2022 Customer type: Commercial $ 2,274 $ 513 $ 130 $ 1,697 $ 5 $ 30 $ 4,649 U.S. Government 50 1,008 436 12 — — 1,506 Total revenues $ 2,324 $ 1,521 $ 566 $ 1,709 $ 5 $ 30 $ 6,155 Geographic location: United States $ 1,508 $ 1,174 $ 514 $ 892 $ 1 $ 10 $ 4,099 Europe 358 71 18 375 3 1 826 Other international 458 276 34 442 1 19 1,230 Total revenues $ 2,324 $ 1,521 $ 566 $ 1,709 $ 5 $ 30 $ 6,155 Remaining Performance Obligations Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our contracts that we expect to recognize as revenues in future periods when we perform under the contracts. These remaining obligations exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At July 1, 2023, we had $14.3 billion in remaining performance obligations of which we expect to recognize revenues of approximately 80% through 2024, an additional 17% through 2026, and the balance thereafter. Contract Assets and Liabilities

Retirement Plans

Retirement Plans	6 Months Ended
	Jul. 01, 2023
Retirement Benefits [Abstract]
Retirement Plans	Retirement PlansWe provide defined benefit pension plans and other postretirement benefits to eligible employees. The components of net periodic benefit income for these plans are as follows: Three Months Ended Six Months Ended (In millions) July 1, July 2, July 1, July 2, Pension Benefits Service cost $ 16 $ 27 $ 33 $ 53 Interest cost 91 68 182 137 Expected return on plan assets (153) (153) (305) (306) Amortization of net actuarial loss 1 22 1 44 Amortization of prior service cost 3 3 6 6 Net periodic benefit income* $ (42) $ (33) $ (83) $ (66) Postretirement Benefits Other Than Pensions Service cost $ 1 $ — $ 1 $ 1 Interest cost 2 2 4 3 Amortization of net actuarial gain (2) (1) (4) (2) Amortization of prior service credit (1) (1) (2) (2) Net periodic benefit income $ — $ — $ (1) $ —

Income Taxes

Income Taxes	6 Months Ended
	Jul. 01, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate for the second quarter and first half of 2023 was 20.1% and 18.3%, respectively. In the first half of 2023, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income, partially offset by $7 million in withholding taxes due to the repatriation of cash related to a non-US jurisdiction. Our effective tax rate for the second quarter and first half of 2022 was 17.1% and 17.0%, respectively. In the second quarter and first half of 2022, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the favorable impact of research and development credits.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 01, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesWe are subject to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; disputes with suppliers, production partners or other third parties; product liability; patent and trademark infringement; employment disputes; and environmental, health and safety matters. Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jul. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of Estimates	Use of Estimates We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined.

Accounts Receivable and Finan_2

Accounts Receivable and Finance Receivables (Tables)	6 Months Ended
	Jul. 01, 2023
Receivables [Abstract]
Accounts Receivable	Accounts receivable is composed of the following: (In millions) July 1, December 31, Commercial $ 855 $ 755 U.S. Government contracts 118 124 973 879 Allowance for credit losses (20) (24) Total accounts receivable, net $ 953 $ 855
Finance Receivables	Finance receivables are presented in the following table: (In millions) July 1, December 31, Finance receivables $ 597 $ 587 Allowance for credit losses (23) (24) Total finance receivables, net $ 574 $ 563
Finance Receivables Categorized Based On Credit Quality Indicators	Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) July 1, December 31, Performing $ 554 $ 515 Watchlist 26 26 Nonaccrual 17 46 Nonaccrual as a percentage of finance receivables 2.85% 7.84% Current and less than 31 days past due $ 589 $ 579 31-60 days past due 2 7 61-90 days past due 6 — Over 90 days past due — 1 60+ days contractual delinquency as a percentage of finance receivables 1.01% 0.17%
Finance Receivables By Delinquency Aging Category	Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) July 1, December 31, Performing $ 554 $ 515 Watchlist 26 26 Nonaccrual 17 46 Nonaccrual as a percentage of finance receivables 2.85% 7.84% Current and less than 31 days past due $ 589 $ 579 31-60 days past due 2 7 61-90 days past due 6 — Over 90 days past due — 1 60+ days contractual delinquency as a percentage of finance receivables 1.01% 0.17%
Finance Receivables and Allowance For Credit Losses Based on Impairment Evaluation	A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles. (In millions) July 1, December 31, Finance receivables evaluated collectively $ 494 $ 450 Finance receivables evaluated individually 17 46 Allowance for credit losses based on collective evaluation 20 21 Allowance for credit losses based on individual evaluation 3 3 Impaired finance receivables with specific allowance for credit losses $ 11 $ 15 Impaired finance receivables with no specific allowance for credit losses 6 31 Unpaid principal balance of impaired finance receivables 27 60 Allowance for credit losses on impaired finance receivables 3 3 Average recorded investment of impaired finance receivables 34 67

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jul. 01, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories are composed of the following: (In millions) July 1, December 31, Finished goods $ 1,133 $ 991 Work in process 1,820 1,540 Raw materials and components 1,155 1,019 Total inventories $ 4,108 $ 3,550

Warranty Liability (Tables)

Warranty Liability (Tables)	6 Months Ended
	Jul. 01, 2023
Payables and Accruals [Abstract]
Changes in Warranty Liability	Changes in our warranty liability are as follows: Six Months Ended (In millions) July 1, July 2, Beginning of period $ 149 $ 127 Provision 33 34 Settlements (35) (34) Adjustments* 13 10 End of period $ 160 $ 137 * Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jul. 01, 2023
Leases [Abstract]
Schedule of Balance Sheet and Other Information	Balance sheet and other information related to our operating leases is as follows: (Dollars in millions) July 1, December 31, Other assets $ 369 $ 372 Other current liabilities 53 54 Other liabilities 325 326 Weighted-average remaining lease term (in years) 10.3 10.4 Weighted-average discount rate 4.33% 4.14%

Derivative Instruments and Fa_2

Derivative Instruments and Fair Value Measurements (Tables)	6 Months Ended
	Jul. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Carrying Value and Estimated and Fair Value of Financial Instruments	The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows: July 1, 2023 December 31, 2022 Carrying Estimated Carrying Estimated (In millions) Value Fair Value Value Fair Value Manufacturing group Debt, excluding leases $ (3,174) $ (2,904) $ (3,175) $ (2,872) Finance group Finance receivables, excluding leases 405 396 390 369 Debt (354) (281) (375) (294)

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jul. 01, 2023
Equity [Abstract]
Schedule of Shareholder's Equity	A reconciliation of Shareholders’ equity is presented below: (In millions) Common Capital Treasury Retained Accumulated Total Three months ended July 1, 2023 Beginning of period $ 26 $ 1,942 $ (464) $ 6,090 $ (586) $ 7,008 Net income — — — 263 — 263 Other comprehensive income — — — — 12 12 Share-based compensation activity — 31 — — — 31 Dividends declared — — — (4) — (4) Purchases of common stock, — — (276) — — (276) End of period $ 26 $ 1,973 $ (740) $ 6,349 $ (574) $ 7,034 Three months ended July 2, 2022 Beginning of period $ 28 $ 1,924 $ (314) $ 6,058 $ (779) $ 6,917 Net income — — — 217 — 217 Other comprehensive loss — — — — (76) (76) Share-based compensation activity — 29 — — — 29 Dividends declared — — — (4) — (4) Purchases of common stock — — (282) — — (282) End of period $ 28 $ 1,953 $ (596) $ 6,271 $ (855) $ 6,801 Six months ended July 1, 2023 Beginning of period $ 26 $ 1,880 $ (84) $ 5,903 $ (612) $ 7,113 Net income — — — 454 — 454 Other comprehensive income — — — — 38 38 Share-based compensation activity — 93 — — — 93 Dividends declared — — — (8) — (8) Purchases of common stock, — — (656) — — (656) End of period $ 26 $ 1,973 $ (740) $ 6,349 $ (574) $ 7,034 Six months ended July 2, 2022 Beginning of period $ 28 $ 1,863 $ (157) $ 5,870 $ (789) $ 6,815 Net income — — — 410 — 410 Other comprehensive loss — — — — (66) (66) Share-based compensation activity — 90 — — — 90 Dividends declared — — — (9) — (9) Purchases of common stock — — (439) — — (439) End of period $ 28 $ 1,953 $ (596) $ 6,271 $ (855) $ 6,801
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 1, July 2, July 1, July 2, Basic weighted-average shares outstanding 200,701 214,587 202,768 215,799 Dilutive effect of stock options 1,808 2,071 1,992 2,334 Diluted weighted-average shares outstanding 202,509 216,658 204,760 218,133
Schedule of Components of Accumulated Other Comprehensive Income (Loss)	The components of Accumulated other comprehensive loss are presented below: (In millions) Pension and Foreign Deferred Accumulated Balance at December 31, 2022 $ (516) $ (94) $ (2) $ (612) Other comprehensive income before reclassifications — 32 3 35 Reclassified from Accumulated other comprehensive loss — — 3 3 Balance at July 1, 2023 $ (516) $ (62) $ 4 $ (574) Balance at January 1, 2022 $ (799) $ 9 $ 1 $ (789) Other comprehensive loss before reclassifications — (104) 4 (100) Reclassified from Accumulated other comprehensive loss 34 — — 34 Balance at July 2, 2022 $ (765) $ (95) $ 5 $ (855)
Schedule of Before and After-Tax Components of Other Comprehensive Income (Loss)	The before and after-tax components of Other comprehensive income (loss) are presented below: July 1, 2023 July 2, 2022 (In millions) Pre-Tax Tax After-tax Pre-Tax Tax After-tax Three Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial (gain) loss* $ (1) $ — $ (1) $ 21 $ (6) $ 15 Amortization of prior service cost* 2 (1) 1 2 — 2 Pension and postretirement benefits adjustments, net 1 (1) — 23 (6) 17 Foreign currency translation adjustments 4 — 4 (90) — (90) Deferred gains (losses) on hedge contracts: Current deferrals 7 (1) 6 (5) 2 (3) Reclassification adjustments 2 — 2 — — — Deferred gains (losses) on hedge contracts, net 9 (1) 8 (5) 2 (3) Total $ 14 $ (2) $ 12 $ (72) $ (4) $ (76) Six Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial (gain) loss* $ (3) $ 1 $ (2) $ 42 $ (11) $ 31 Amortization of prior service cost* 4 (2) 2 4 (1) 3 Pension and postretirement benefits adjustments, net 1 (1) — 46 (12) 34 Foreign currency translation adjustments 32 — 32 (104) — (104) Deferred gains on hedge contracts: Current deferrals 3 — 3 5 (1) 4 Reclassification adjustments 4 (1) 3 — — — Deferred gains on hedge contracts, net 7 (1) 6 5 (1) 4 Total $ 40 $ (2) $ 38 $ (53) $ (13) $ (66) *These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2022 Annual Report on Form 10-K for additional information.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jul. 01, 2023
Segment Reporting [Abstract]
Revenues by Segment and Reconciliation of Segment Profit Income (Loss) Before Income Taxes	Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below: Three Months Ended Six Months Ended (In millions) July 1, July 2, July 1, July 2, Revenues Textron Aviation $ 1,362 $ 1,284 $ 2,511 $ 2,324 Bell 701 687 1,322 1,521 Textron Systems 306 293 612 566 Industrial 1,026 871 1,958 1,709 Textron eAviation 11 5 15 5 Finance 18 14 30 30 Total revenues $ 3,424 $ 3,154 $ 6,448 $ 6,155 Segment Profit Textron Aviation $ 171 $ 149 $ 296 $ 259 Bell 65 54 125 145 Textron Systems 37 38 71 66 Industrial 79 37 120 76 Textron eAviation (12) (7) (21) (7) Finance 12 10 20 19 Segment profit 352 281 611 558 Corporate expenses and other, net (21) (20) (60) (72) Interest expense, net for Manufacturing group (16) (28) (33) (56) LIFO inventory provision (35) (17) (60) (29) Intangible asset amortization (10) (13) (20) (26) Non-service components of pension and postretirement income, net 59 60 118 120 Income before income taxes $ 329 $ 263 $ 556 $ 495

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Jul. 01, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Our revenues for our segments disaggregated by major product type are presented below: Three Months Ended Six Months Ended (In millions) July 1, July 2, July 1, July 2, Aircraft $ 920 $ 856 $ 1,638 $ 1,502 Aftermarket parts and services 442 428 873 822 Textron Aviation 1,362 1,284 2,511 2,324 Military aircraft and support programs 395 402 780 999 Commercial helicopters, parts and services 306 285 542 522 Bell 701 687 1,322 1,521 Textron Systems 306 293 612 566 Fuel systems and functional components 523 435 1,011 899 Specialized vehicles 503 436 947 810 Industrial 1,026 871 1,958 1,709 Textron eAviation 11 5 15 5 Finance 18 14 30 30 Total revenues $ 3,424 $ 3,154 $ 6,448 $ 6,155 Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Bell Textron Industrial Textron eAviation Finance Total Three months ended July 1, 2023 Customer type: Commercial $ 1,321 $ 301 $ 70 $ 1,024 $ 11 $ 18 $ 2,745 U.S. Government 41 400 236 2 — — 679 Total revenues $ 1,362 $ 701 $ 306 $ 1,026 $ 11 $ 18 $ 3,424 Geographic location: United States $ 933 $ 534 $ 274 $ 566 $ 7 $ 4 $ 2,318 Europe 159 35 17 201 4 1 417 Other international 270 132 15 259 — 13 689 Total revenues $ 1,362 $ 701 $ 306 $ 1,026 $ 11 $ 18 $ 3,424 Three months ended July 2, 2022 Customer type: Commercial $ 1,253 $ 279 $ 65 $ 862 $ 5 $ 14 $ 2,478 U.S. Government 31 408 228 9 — — 676 Total revenues $ 1,284 $ 687 $ 293 $ 871 $ 5 $ 14 $ 3,154 Geographic location: United States $ 776 $ 504 $ 268 $ 466 $ 1 $ 5 $ 2,020 Europe 239 43 10 185 3 — 480 Other international 269 140 15 220 1 9 654 Total revenues $ 1,284 $ 687 $ 293 $ 871 $ 5 $ 14 $ 3,154 Six months ended July 1, 2023 Customer type: Commercial $ 2,428 $ 533 $ 144 $ 1,951 $ 15 $ 30 $ 5,101 U.S. Government 83 789 468 7 — — 1,347 Total revenues $ 2,511 $ 1,322 $ 612 $ 1,958 $ 15 $ 30 $ 6,448 Geographic location: United States $ 1,769 $ 994 $ 549 $ 1,060 $ 8 $ 8 $ 4,388 Europe 225 54 31 405 6 1 722 Other international 517 274 32 493 1 21 1,338 Total revenues $ 2,511 $ 1,322 $ 612 $ 1,958 $ 15 $ 30 $ 6,448 Six months ended July 2, 2022 Customer type: Commercial $ 2,274 $ 513 $ 130 $ 1,697 $ 5 $ 30 $ 4,649 U.S. Government 50 1,008 436 12 — — 1,506 Total revenues $ 2,324 $ 1,521 $ 566 $ 1,709 $ 5 $ 30 $ 6,155 Geographic location: United States $ 1,508 $ 1,174 $ 514 $ 892 $ 1 $ 10 $ 4,099 Europe 358 71 18 375 3 1 826 Other international 458 276 34 442 1 19 1,230 Total revenues $ 2,324 $ 1,521 $ 566 $ 1,709 $ 5 $ 30 $ 6,155

Retirement Plans (Tables)

Retirement Plans (Tables)	6 Months Ended
	Jul. 01, 2023
Retirement Benefits [Abstract]
Schedule of Components of Net Periodic Benefit Income	The components of net periodic benefit income for these plans are as follows: Three Months Ended Six Months Ended (In millions) July 1, July 2, July 1, July 2, Pension Benefits Service cost $ 16 $ 27 $ 33 $ 53 Interest cost 91 68 182 137 Expected return on plan assets (153) (153) (305) (306) Amortization of net actuarial loss 1 22 1 44 Amortization of prior service cost 3 3 6 6 Net periodic benefit income* $ (42) $ (33) $ (83) $ (66) Postretirement Benefits Other Than Pensions Service cost $ 1 $ — $ 1 $ 1 Interest cost 2 2 4 3 Amortization of net actuarial gain (2) (1) (4) (2) Amortization of prior service credit (1) (1) (2) (2) Net periodic benefit income $ — $ — $ (1) $ —

Basis of Presentation (Details)

Basis of Presentation (Details) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023 USD ($) $ / shares	Jul. 02, 2022 USD ($) $ / shares	Jul. 01, 2023 USD ($) borrowing_group $ / shares	Jul. 02, 2022 USD ($) $ / shares
Basis of Presentation
Number of borrowing groups | borrowing_group			2
Cumulative catch-up method
Basis of Presentation
Cumulative catch up adjustments, increase (decrease) in segment profit	$ 10	$ (4)	$ 18	$ (21)
Change in accounting estimate financial effect, increase (decrease) in net income	$ 8	$ (3)	$ 14	$ (16)
Change in accounting estimate financial effect increase (decrease) in earnings per diluted share (in dollars per share) | $ / shares	$ 0.04	$ (0.01)	$ 0.07	$ (0.07)

Accounts Receivable and Finan_3

Accounts Receivable and Finance Receivables - Accounts Receivable (Details) - Manufacturing group - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Accounts Receivable
Accounts receivable, gross	$ 973	$ 879
Allowance for credit losses	(20)	(24)
Total accounts receivable, net	953	855
Commercial
Accounts Receivable
Accounts receivable, gross	855	755
U.S. Government
Accounts Receivable
Accounts receivable, gross	$ 118	$ 124

Accounts Receivable and Finan_4

Accounts Receivable and Finance Receivables - Finance Receivables (Details) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Finance Receivables
Finance receivables	$ 597	$ 587
Allowance for credit losses	(23)	(24)
Total finance receivables, net	$ 574	$ 563

Accounts Receivable and Finan_5

Accounts Receivable and Finance Receivables - Finance Receivable Portfolio Quality (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 01, 2023	Dec. 31, 2022
Finance Receivable Portfolio Quality
Finance receivables	$ 597	$ 587
60+ days contractual delinquency as a percentage of finance receivables	1.01%	0.17%
Current and less than 31 days past due
Finance Receivable Portfolio Quality
Finance receivables	$ 589	$ 579
31-60 days past due
Finance Receivable Portfolio Quality
Finance receivables	2	7
61-90 days past due
Finance Receivable Portfolio Quality
Finance receivables	6	0
Over 90 days past due
Finance Receivable Portfolio Quality
Finance receivables	$ 0	$ 1
Performing
Finance Receivable Portfolio Quality
Financing percentage receivable originating since the beginning of 2021	36%
Financing receivable percentage originating from 2018 to 2020	30%
Nonperforming
Finance Receivable Portfolio Quality
Nonaccrual as a percentage of finance receivables	2.85%	7.84%
Nonperforming | Watchlist
Finance Receivable Portfolio Quality
Finance receivables	$ 26	$ 26
Financing receivable percentage originating since the beginning of 2020	94%
Nonperforming | Nonaccrual
Finance Receivable Portfolio Quality
Finance receivables	$ 17	46
Financing receivable percentage originating from 2018 to 2020	40%
Nonperforming | Minimum
Finance Receivable Portfolio Quality
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful	3 months
Performing
Finance Receivable Portfolio Quality
Finance receivables	$ 554	$ 515

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. 01, 2023	Dec. 31, 2022
Receivables [Abstract]
Finance receivables evaluated collectively	$ 494	$ 450
Finance receivables evaluated individually	17	46
Allowance for credit losses based on collective evaluation	20	21
Allowance for credit losses based on individual evaluation	3	3
Impaired finance receivables with specific allowance for credit losses	11	15
Impaired finance receivables with no specific allowance for credit losses	6	31
Unpaid principal balance of impaired finance receivables	27	60
Allowance for credit losses on impaired finance receivables	3	3
Average recorded investment of impaired finance receivables	$ 34	$ 67

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Inventories
Finished goods	$ 1,133	$ 991
Work in process	1,820	1,540
Raw materials and components	1,155	1,019
Total inventories	$ 4,108	$ 3,550

Warranty Liability (Details)

Warranty Liability (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Changes in warranty liability
Beginning of period	$ 149	$ 127
Provision	33	34
Settlements	(35)	(34)
Adjustments	13	10
End of period	$ 160	$ 137

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Leases [Abstract]
Remaining lease terms	26 years		26 years
Operating lease - option to extend			true
Operating lease - option to extend the lease, term	25 years		25 years
Operating lease cost	$ 17	$ 17	$ 34	$ 34
Cash paid for operating lease liabilities			34	35
Noncash lease transactions			$ 24	$ 17

Leases - Balance Sheet and Othe

Leases - Balance Sheet and Other Information (Details) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Operating leases:
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Other assets	$ 369	$ 372
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Other current liabilities	$ 53	$ 54
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Other liabilities	$ 325	$ 326
Weighted-average remaining lease term (in years)
Weighted-average remaining lease term (in years)	10 years 3 months 18 days	10 years 4 months 24 days
Weighted-average discount rate
Weighted-average discount rate	4.33%	4.14%

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) $ in Millions	Jul. 01, 2023 USD ($)
Operating Leases
Remainder of 2023	$ 36
2024	64
2025	56
2026	43
2027	38
Thereafter	$ 244

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		6 Months Ended
	Aug. 16, 2023	Jul. 01, 2023	Dec. 31, 2022	May 31, 2022
Manufacturing group
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Forward exchange contracts maximum maturity period		3 years
Manufacturing group | Foreign currency exchange contracts | Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Notional amounts		$ 567	$ 354
Manufacturing group | Foreign currency exchange contracts | Cash Flow Hedging | Level 2
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Derivative asset, fair value		5
Derivative liability, fair value		9	11
Finance group | CME Term Secured Overnight Funding Rate | Floating Rate Junior Subordinated Notes | Junior Subordinated Debt | Subsequent Event
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Debt instrument description of variable rate basis after specified term at fixed rate	three-month CME Term Secured Overnight Funding Rate
Interest rate spread	1.99661%
Finance group | Interest rate swap | Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Derivative asset, fair value		8	8
Finance group | Interest Rate Swap, Maturing in August 2025 to August 2028 | Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Notional amounts		$ 185
Derivative, weighted-average fixed interest rate		5.17%
Finance group | Interest rate swap, maturing in August 2023 | Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Notional amounts			$ 272
Finance group | Interest rate swap, maturing in June 2025 | Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Notional amounts				$ 25
Derivative, fixed interest rate				2.75%

Derivative Instruments and Fa_4

Derivative Instruments and Fair Value Measurements - Assets and Liabilities not Recorded at Fair Value (Details) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Manufacturing group | Carrying Value
Financial instruments not reflected at fair value
Debt	$ (3,174)	$ (3,175)
Manufacturing group | Estimated Fair value
Financial instruments not reflected at fair value
Debt	(2,904)	(2,872)
Finance group | Carrying Value
Financial instruments not reflected at fair value
Debt	(354)	(375)
Finance receivables, excluding leases	405	390
Finance group | Estimated Fair value
Financial instruments not reflected at fair value
Debt	(281)	(294)
Finance receivables, excluding leases	$ 396	$ 369

Shareholders' Equity - Reconcil

Shareholders' Equity - Reconciliation of Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 7,008	$ 6,917	$ 7,113	$ 6,815
Net income	263	217	454	410
Other comprehensive income (loss)	12	(76)	38	(66)
Share-based compensation activity	31	29	93	90
Dividends declared	(4)	(4)	(8)	(9)
Purchases of common stock, including excise tax	(276)	(282)	(656)	(439)
Balance at end of period	7,034	$ 6,801	7,034	$ 6,801
Excise taxes on common share repurchases	$ 3		$ 6
Dividends per share of common stock (in dollars per share)	$ 0.02	$ 0.02	$ 0.04	$ 0.04
Common Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 26	$ 28	$ 26	$ 28
Balance at end of period	26	28	26	28
Capital Surplus
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	1,942	1,924	1,880	1,863
Share-based compensation activity	31	29	93	90
Balance at end of period	1,973	1,953	1,973	1,953
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(464)	(314)	(84)	(157)
Purchases of common stock, including excise tax	(276)	(282)	(656)	(439)
Balance at end of period	(740)	(596)	(740)	(596)
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	6,090	6,058	5,903	5,870
Net income	263	217	454	410
Dividends declared	(4)	(4)	(8)	(9)
Balance at end of period	6,349	6,271	6,349	6,271
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(586)	(779)	(612)	(789)
Other comprehensive income (loss)	12	(76)	38	(66)
Balance at end of period	$ (574)	$ (855)	$ (574)	$ (855)

Shareholders' Equity - Earnings

Shareholders' Equity - Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Weighted-average shares outstanding for basic and diluted EPS
Basic weighted-average shares outstanding (in shares)	200,701	214,587	202,768	215,799
Dilutive effect of stock options (in shares)	1,808	2,071	1,992	2,334
Diluted weighted-average shares outstanding (in shares)	202,509	216,658	204,760	218,133
Stock options
Weighted-average shares outstanding for basic and diluted EPS
Anti-dilutive effect of weighted average shares (in shares)	2,000	1,000	2,000	1,000

Shareholders' Equity - Accumula

Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 7,113	$ 6,815
Other comprehensive income (loss) before reclassifications	35	(100)
Reclassified from Accumulated other comprehensive loss	3	34
Balance at end of period	7,034	6,801
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(612)	(789)
Balance at end of period	(574)	(855)
Pension and Postretirement Benefits Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(516)	(799)
Other comprehensive income (loss) before reclassifications	0	0
Reclassified from Accumulated other comprehensive loss	0	34
Balance at end of period	(516)	(765)
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(94)	9
Other comprehensive income (loss) before reclassifications	32	(104)
Reclassified from Accumulated other comprehensive loss	0	0
Balance at end of period	(62)	(95)
Deferred Gains (Losses) on Hedge Contracts
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(2)	1
Other comprehensive income (loss) before reclassifications	3	4
Reclassified from Accumulated other comprehensive loss	3	0
Balance at end of period	$ 4	$ 5

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. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Pension and postretirement benefits adjustments, pre-tax:
Amortization of net actuarial (gain) loss, pre-tax	$ (1)	$ 21	$ (3)	$ 42
Amortization of prior service cost, pre-tax	2	2	4	4
Pension and postretirement benefits adjustments, net, pre-tax	1	23	1	46
Pension and postretirement benefits adjustments, tax:
Amortization of net actuarial (gain) loss, tax (expense) benefit	0	(6)	1	(11)
Amortization of prior service cost, tax (expense) benefit	(1)	0	(2)	(1)
Pension and postretirement benefits adjustments, net, tax (expense) benefit	(1)	(6)	(1)	(12)
Pension and postretirement benefits adjustments, after-tax:
Amortization of net actuarial (gain) loss, after-tax	(1)	15	(2)	31
Amortization of prior period service cost, after-tax	1	2	2	3
Pension and postretirement benefits adjustments, net, after-tax	0	17	0	34
Foreign currency translation adjustments, pre-tax:
Foreign currency translation adjustments, pre-tax	4	(90)	32	(104)
Foreign currency translation adjustments, tax:
Foreign currency translation adjustments, tax (expense) benefit	0	0	0	0
Foreign currency translation adjustments, after-tax:
Foreign currency translation adjustments, after-tax	4	(90)	32	(104)
Deferred gains (losses) on hedge contracts, pre-tax:
Current deferrals, pre-tax	7	(5)	3	5
Reclassification adjustments, pre-tax	2	0	4	0
Deferred gains (losses) on hedge contracts, net, pre-tax	9	(5)	7	5
Deferred gains (losses) on hedge contracts, tax:
Current deferrals, tax (expense) benefit	(1)	2	0	(1)
Reclassification adjustments, tax (expense) benefit	0	0	(1)	0
Deferred gains (losses) on hedge contracts, net, tax (expense) benefit	(1)	2	(1)	(1)
Deferred gains (losses) on hedge contracts, after-tax:
Current deferrals, after-tax	6	(3)	3	4
Reclassification adjustments, after-tax	2	0	3	0
Deferred gains (losses) on hedge contracts, net, after-tax	8	(3)	6	4
Other comprehensive income (loss), pre-tax	14	(72)	40	(53)
Other comprehensive income (loss), tax (expense) benefit	(2)	(4)	(2)	(13)
Other comprehensive income (loss)	$ 12	$ (76)	$ 38	$ (66)

Segment Information - Narrative

Segment Information - Narrative (Details)	6 Months Ended
	Jul. 01, 2023 segment
Operating and reportable business segments
Number of operating business segments	6
Number of reportable business segments	6

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. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Revenues
Total revenues	$ 3,424	$ 3,154	$ 6,448	$ 6,155
Reconciliation of segment profit to income from continuing operations before income taxes
Interest expense, net for Manufacturing group	(19)	(31)	(39)	(63)
Non-service components of pension and postretirement income, net	59	60	118	120
Income before income taxes	329	263	556	495
Operating Segment
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	352	281	611	558
Reconciling Items
Reconciliation of segment profit to income from continuing operations before income taxes
Corporate expenses and other, net	(21)	(20)	(60)	(72)
LIFO inventory provision	(35)	(17)	(60)	(29)
Intangible asset amortization	(10)	(13)	(20)	(26)
Non-service components of pension and postretirement income, net	59	60	118	120
Textron Aviation
Revenues
Total revenues	1,362	1,284	2,511	2,324
Bell
Revenues
Total revenues	701	687	1,322	1,521
Textron Systems
Revenues
Total revenues	306	293	612	566
Industrial
Revenues
Total revenues	1,026	871	1,958	1,709
Textron eAviation
Revenues
Total revenues	11	5	15	5
Finance
Revenues
Total revenues	18	14	30	30
Finance | Operating Segment
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	12	10
Manufacturing group | Reconciling Items
Reconciliation of segment profit to income from continuing operations before income taxes
Interest expense, net for Manufacturing group	(16)	(28)	(33)	(56)
Manufacturing group | Textron Aviation | Operating Segment
Revenues
Total revenues	1,362	1,284	2,511	2,324
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	171	149	296	259
Manufacturing group | Bell | Operating Segment
Revenues
Total revenues	701	687	1,322	1,521
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	65	54	125	145
Manufacturing group | Textron Systems | Operating Segment
Revenues
Total revenues	306	293	612	566
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	37	38	71	66
Manufacturing group | Industrial | Operating Segment
Revenues
Total revenues	1,026	871	1,958	1,709
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	79	37	120	76
Manufacturing group | Textron eAviation | Operating Segment
Revenues
Total revenues	11	5	15	5
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	(12)	(7)	(21)	(7)
Finance group
Revenues
Total revenues	18	14	30	30
Finance group | Finance | Operating Segment
Revenues
Total revenues	$ 18	$ 14	30	30
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit			$ 20	$ 19

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 3,424	$ 3,154	$ 6,448	$ 6,155
United States
Disaggregation of Revenue [Line Items]
Revenues	2,318	2,020	4,388	4,099
Europe
Disaggregation of Revenue [Line Items]
Revenues	417	480	722	826
Other international
Disaggregation of Revenue [Line Items]
Revenues	689	654	1,338	1,230
Commercial
Disaggregation of Revenue [Line Items]
Revenues	2,745	2,478	5,101	4,649
U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	679	676	1,347	1,506
Textron Aviation
Disaggregation of Revenue [Line Items]
Revenues	1,362	1,284	2,511	2,324
Textron Aviation | United States
Disaggregation of Revenue [Line Items]
Revenues	933	776	1,769	1,508
Textron Aviation | Europe
Disaggregation of Revenue [Line Items]
Revenues	159	239	225	358
Textron Aviation | Other international
Disaggregation of Revenue [Line Items]
Revenues	270	269	517	458
Textron Aviation | Commercial
Disaggregation of Revenue [Line Items]
Revenues	1,321	1,253	2,428	2,274
Textron Aviation | U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	41	31	83	50
Textron Aviation | Aircraft
Disaggregation of Revenue [Line Items]
Revenues	920	856	1,638	1,502
Textron Aviation | Aftermarket parts and services
Disaggregation of Revenue [Line Items]
Revenues	442	428	873	822
Bell
Disaggregation of Revenue [Line Items]
Revenues	701	687	1,322	1,521
Bell | United States
Disaggregation of Revenue [Line Items]
Revenues	534	504	994	1,174
Bell | Europe
Disaggregation of Revenue [Line Items]
Revenues	35	43	54	71
Bell | Other international
Disaggregation of Revenue [Line Items]
Revenues	132	140	274	276
Bell | Commercial
Disaggregation of Revenue [Line Items]
Revenues	301	279	533	513
Bell | U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	400	408	789	1,008
Bell | Military aircraft and support programs
Disaggregation of Revenue [Line Items]
Revenues	395	402	780	999
Bell | Commercial helicopters, parts and services
Disaggregation of Revenue [Line Items]
Revenues	306	285	542	522
Textron Systems
Disaggregation of Revenue [Line Items]
Revenues	306	293	612	566
Textron Systems | United States
Disaggregation of Revenue [Line Items]
Revenues	274	268	549	514
Textron Systems | Europe
Disaggregation of Revenue [Line Items]
Revenues	17	10	31	18
Textron Systems | Other international
Disaggregation of Revenue [Line Items]
Revenues	15	15	32	34
Textron Systems | Commercial
Disaggregation of Revenue [Line Items]
Revenues	70	65	144	130
Textron Systems | U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	236	228	468	436
Industrial
Disaggregation of Revenue [Line Items]
Revenues	1,026	871	1,958	1,709
Industrial | United States
Disaggregation of Revenue [Line Items]
Revenues	566	466	1,060	892
Industrial | Europe
Disaggregation of Revenue [Line Items]
Revenues	201	185	405	375
Industrial | Other international
Disaggregation of Revenue [Line Items]
Revenues	259	220	493	442
Industrial | Commercial
Disaggregation of Revenue [Line Items]
Revenues	1,024	862	1,951	1,697
Industrial | U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	2	9	7	12
Industrial | Fuel systems and functional components
Disaggregation of Revenue [Line Items]
Revenues	523	435	1,011	899
Industrial | Specialized vehicles
Disaggregation of Revenue [Line Items]
Revenues	503	436	947	810
Textron eAviation
Disaggregation of Revenue [Line Items]
Revenues	11	5	15	5
Textron eAviation | United States
Disaggregation of Revenue [Line Items]
Revenues	7	1	8	1
Textron eAviation | Europe
Disaggregation of Revenue [Line Items]
Revenues	4	3	6	3
Textron eAviation | Other international
Disaggregation of Revenue [Line Items]
Revenues	0	1	1	1
Textron eAviation | Commercial
Disaggregation of Revenue [Line Items]
Revenues	11	5	15	5
Textron eAviation | U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Finance
Disaggregation of Revenue [Line Items]
Revenues	18	14	30	30
Finance | United States
Disaggregation of Revenue [Line Items]
Revenues	4	5	8	10
Finance | Europe
Disaggregation of Revenue [Line Items]
Revenues	1	0	1	1
Finance | Other international
Disaggregation of Revenue [Line Items]
Revenues	13	9	21	19
Finance | Commercial
Disaggregation of Revenue [Line Items]
Revenues	18	14	30	30
Finance | U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	$ 0	$ 0	$ 0	$ 0

Revenues - Remaining Performanc

Revenues - Remaining Performance Obligations (Details) $ in Billions	Jul. 01, 2023 USD ($)
Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligation	$ 14.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-02
Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligation, percent	80%
Remaining performance obligation, expected timing of satisfaction	18 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-29
Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligation, percent	17%
Remaining performance obligation, 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. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022	Dec. 31, 2022
Contract Assets and Liabilities
Contract assets	$ 501		$ 501		$ 680
Contract liabilities	1,700		1,700		$ 1,500
Revenue recognized included in contract liabilities	$ 380	$ 293	$ 696	$ 499

Retirement Plans (Details)

Retirement Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Pension Benefits
Net periodic benefit income
Service cost	$ 16	$ 27	$ 33	$ 53
Interest cost	91	68	182	137
Expected return on plan assets	(153)	(153)	(305)	(306)
Amortization of net actuarial loss	1	22	1	44
Amortization of prior service cost	3	3	6	6
Net periodic benefit income	(42)	(33)	(83)	(66)
Pension Benefits | United States
Net periodic benefit income
Cost associated with the defined contribution component	2	3	6	7
Postretirement Benefits Other Than Pensions
Net periodic benefit income
Service cost	1	0	1	1
Interest cost	2	2	4	3
Amortization of net actuarial loss	(2)	(1)	(4)	(2)
Amortization of prior service cost	(1)	(1)	(2)	(2)
Net periodic benefit income	$ 0	$ 0	$ (1)	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	20.10%	17.10%	18.30%	17%
U.S. federal statutory income tax rate	21%	21%	21%	21%
Impact of withholding taxes due to the repatriation of cash related to a non-US jurisdiction.			$ 7