Textron (TXT) 10-Q 30 Jul 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 29, 2024	Jul. 12, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 29, 2024
Document Transition Report	false
Entity File Number	1-5480
Entity Registrant Name	Textron Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	05-0315468
Entity Address, Address Line One	40 Westminster Street
Entity Address, City or Town	Providence
Entity Address, State or Province	RI
Entity Address, Postal Zip Code	02903
City Area Code	401
Local Phone Number	421-2800
Title of 12(b) Security	Common stock, $0.125 par value
Trading Symbol	TXT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		187,362,550
Entity Central Index Key	0000217346
Current Fiscal Year End Date	--12-28
Document Fiscal Year Focus	2024
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
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Revenues
Total revenues	$ 3,527	$ 3,424	$ 6,662	$ 6,448
Costs, expenses and other
Selling and administrative expense	293	289	609	594
Interest expense, net	25	19	45	39
Special charges	13	0	27	0
Non-service components of pension and postretirement income, net	(66)	(59)	(132)	(118)
Total costs, expenses and other	3,204	3,095	6,102	5,892
Income from continuing operations before income taxes	323	329	560	556
Income tax expense	63	66	99	102
Income from continuing operations	260	263	461	454
Loss from discontinued operations	(1)	0	(1)	0
Net income	$ 259	$ 263	$ 460	$ 454
Basic earnings per share
Continuing operations (in dollars per share)	$ 1.37	$ 1.31	$ 2.41	$ 2.24
Diluted Earnings per share
Continuing operations (in dollars per share)	$ 1.35	$ 1.30	$ 2.38	$ 2.22
Manufacturing group
Costs, expenses and other
Income from continuing operations			$ 441	$ 438
Finance group
Revenues
Total revenues	$ 12	$ 18	27	30
Costs, expenses and other
Income from continuing operations			20	16
Product
Costs, expenses and other
Cost of products/services sold	2,382	2,465	4,451	4,641
Product | Manufacturing group
Revenues
Total revenues	2,842	2,917	5,274	5,467
Service
Costs, expenses and other
Cost of products/services sold	557	381	1,102	736
Service | Manufacturing group
Revenues
Total revenues	$ 673	$ 489	$ 1,361	$ 951

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 259	$ 263	$ 460	$ 454
Other comprehensive income (loss), net of tax
Pension and postretirement benefits adjustments, net of reclassifications	1	0	2	0
Foreign currency translation adjustments	(14)	4	(47)	32
Deferred gains (losses) on hedge contracts, net of reclassifications	1	8	(4)	6
Other comprehensive income (loss)	(12)	12	(49)	38
Comprehensive income	$ 247	$ 275	$ 411	$ 492

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) shares in Thousands, $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Assets
Inventories	$ 4,381	$ 3,914
Finance receivables, net	585	585
Total assets	16,427	16,856
Liabilities
Total liabilities	9,575	9,869
Shareholders’ equity
Common stock	25	24
Capital surplus	2,050	1,910
Treasury stock	(844)	(165)
Retained earnings	6,314	5,862
Accumulated other comprehensive loss	(693)	(644)
Total shareholders’ equity	6,852	6,987
Total liabilities and shareholders’ equity	$ 16,427	$ 16,856
Common shares outstanding (in shares)	187,499	192,898
Manufacturing group
Assets
Cash and equivalents	$ 1,345	$ 2,121
Accounts receivable, net	847	868
Inventories	4,381	3,914
Other current assets	749	857
Total current assets	7,322	7,760
Property, plant and equipment, less accumulated depreciation and amortization of $5,356 and $5,247, respectively	2,500	2,477
Goodwill	2,295	2,295
Other assets	3,639	3,663
Cash and equivalents	1,345	2,121
Total assets	15,756	16,195
Liabilities
Current portion of long-term debt	357	357
Accounts payable	1,120	1,023
Other current liabilities	2,979	2,998
Total current liabilities	4,456	4,378
Other liabilities	1,828	1,904
Long-term debt	2,884	3,169
Total liabilities	9,168	9,451
Finance group
Assets
Cash and equivalents	66	60
Cash and equivalents	66	60
Finance receivables, net	585	585
Other assets	20	16
Total assets	671	661
Liabilities
Other liabilities	65	70
Debt	342	348
Total liabilities	$ 407	$ 418

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization	$ 5,356	$ 5,247

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023
Cash flows from operating activities
Income from continuing operations	$ 461	$ 454
Non-cash items:
Depreciation and amortization	178	193
Deferred income taxes	(34)	(77)
Other, net	61	66
Changes in assets and liabilities:
Accounts receivable, net	10	(97)
Inventories	(467)	(553)
Other assets	167	252
Accounts payable	107	207
Other liabilities	(46)	116
Income taxes, net	10	14
Pension, net	(112)	(102)
Captive finance receivables, net	7	(15)
Other operating activities, net	19	2
Net cash provided by operating activities of continuing operations	361	460
Net cash used in operating activities of discontinued operations	(1)	(1)
Net cash provided by operating activities	360	459
Cash flows from investing activities
Capital expenditures	(140)	(145)
Net cash used in business acquisitions	(13)	0
Net proceeds from corporate-owned life insurance policies	26	38
Proceeds from sale of property, plant and equipment	3	0
Finance receivables repaid	31	19
Finance receivables originated	(18)	0
Other investing activities, net	0	2
Net cash provided by (used in) investing activities	(111)	(86)
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	(374)	(34)
Purchases of Textron common stock	(675)	(650)
Dividends paid	(8)	(8)
Proceeds from options exercised	73	31
Other financing activities, net	(25)	(5)
Net cash used in financing activities	(1,009)	(666)
Effect of exchange rate changes on cash and equivalents	(10)	8
Net increase (decrease) in cash and equivalents	(770)	(285)
Cash and equivalents at beginning of period	2,181	2,035
Cash and equivalents at end of period	$ 1,411	$ 1,750

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Unaudited) - Manufacturing Group and Finance Group - USD ($) $ in Millions	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023
Cash flows from operating activities
Income from continuing operations	$ 461	$ 454
Non-cash items:
Depreciation and amortization	178	193
Deferred income taxes	(34)	(77)
Other, net	61	66
Changes in assets and liabilities:
Accounts receivable, net	10	(97)
Inventories	(467)	(553)
Other assets	167	252
Accounts payable	107	207
Other liabilities	(46)	116
Income taxes, net	10	14
Pension, net	(112)	(102)
Other operating activities, net	19	2
Net cash provided by operating activities of continuing operations	361	460
Net cash used in operating activities of discontinued operations	(1)	(1)
Net cash provided by operating activities	360	459
Cash flows from investing activities
Capital expenditures	(140)	(145)
Net cash used in business acquisitions	(13)	0
Net proceeds from corporate-owned life insurance policies	26	38
Proceeds from sale of property, plant and equipment	3	0
Finance receivables repaid	31	19
Finance receivables originated	(18)	0
Other investing activities, net	0	2
Net cash provided by (used in) investing activities	(111)	(86)
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	(374)	(34)
Purchases of Textron common stock	(675)	(650)
Dividends paid	(8)	(8)
Proceeds from options exercised	73	31
Other financing activities, net	(25)	(5)
Net cash used in financing activities	(1,009)	(666)
Effect of exchange rate changes on cash and equivalents	(10)	8
Net increase (decrease) in cash and equivalents	(770)	(285)
Cash and equivalents at beginning of period	2,181	2,035
Cash and equivalents at end of period	1,411	1,750
Manufacturing group
Cash flows from operating activities
Income from continuing operations	441	438
Non-cash items:
Depreciation and amortization	178	193
Deferred income taxes	(34)	(77)
Other, net	73	69
Changes in assets and liabilities:
Accounts receivable, net	10	(97)
Inventories	(467)	(553)
Other assets	168	246
Accounts payable	107	207
Other liabilities	(42)	125
Income taxes, net	12	16
Pension, net	(112)	(102)
Other operating activities, net	19	2
Net cash provided by operating activities of continuing operations	353	467
Net cash used in operating activities of discontinued operations	(1)	(1)
Net cash provided by operating activities	352	466
Cash flows from investing activities
Capital expenditures	(140)	(145)
Net cash used in business acquisitions	(13)	0
Net proceeds from corporate-owned life insurance policies	26	38
Proceeds from sale of property, plant and equipment	3	0
Finance receivables repaid	0	0
Finance receivables originated	0	0
Other investing activities, net	0	0
Net cash provided by (used in) investing activities	(124)	(107)
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	(359)	(3)
Purchases of Textron common stock	(675)	(650)
Dividends paid	(8)	(8)
Proceeds from options exercised	73	31
Other financing activities, net	(25)	(5)
Net cash used in financing activities	(994)	(635)
Effect of exchange rate changes on cash and equivalents	(10)	8
Net increase (decrease) in cash and equivalents	(776)	(268)
Cash and equivalents at beginning of period	2,121	1,963
Cash and equivalents at end of period	1,345	1,695
Finance group
Cash flows from operating activities
Income from continuing operations	20	16
Non-cash items:
Depreciation and amortization	0	0
Deferred income taxes	0	0
Other, net	(12)	(3)
Changes in assets and liabilities:
Accounts receivable, net	0	0
Inventories	0	0
Other assets	(1)	6
Accounts payable	0	0
Other liabilities	(4)	(9)
Income taxes, net	(2)	(2)
Pension, net	0	0
Other operating activities, net	0	0
Net cash provided by operating activities of continuing operations	1	8
Net cash used in operating activities of discontinued operations	0	0
Net cash provided by operating activities	1	8
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	78	67
Finance receivables originated	(58)	(63)
Other investing activities, net	0	2
Net cash provided by (used in) investing activities	20	6
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	(15)	(31)
Purchases of Textron common stock	0	0
Dividends paid	0	0
Proceeds from options exercised	0	0
Other financing activities, net	0	0
Net cash used in financing activities	(15)	(31)
Effect of exchange rate changes on cash and equivalents	0	0
Net increase (decrease) in cash and equivalents	6	(17)
Cash and equivalents at beginning of period	60	72
Cash and equivalents at end of period	$ 66	$ 55

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Our Consolidated Financial Statements include the accounts of Textron Inc. (Textron) and its majority-owned subsidiaries. We have prepared these unaudited consolidated financial statements in accordance with accounting principles generally accepted in the U.S. for interim financial information. Accordingly, these interim financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. The consolidated interim financial statements included in this quarterly report should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 30, 2023. In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements. All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group. Use of Estimates We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined. Contract Estimates For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable. In the second quarter of 2024 and 2023, our cumulative catch-up adjustments increased segment profit by $18 million and $10 million, respectively, and net income by $14 million and $8 million, respectively ($0.07 and $0.04 per diluted share, respectively).

Accounts Receivable and Finance

Accounts Receivable and Finance Receivables	6 Months Ended
	Jun. 29, 2024
Receivables [Abstract]
Accounts Receivable and Finance Receivables	Accounts Receivable and Finance Receivables Accounts Receivable Accounts receivable is composed of the following: (In millions) June 29, December 30, Commercial $ 767 $ 831 U.S. Government contracts 101 63 868 894 Allowance for credit losses (21) (26) Total accounts receivable, net $ 847 $ 868 Finance Receivables Finance receivables are presented in the following table: (In millions) June 29, December 30, Finance receivables $ 605 $ 609 Allowance for credit losses (20) (24) Total finance receivables, net $ 585 $ 585 Finance Receivable Portfolio Quality We internally assess the quality of our finance receivables based on a number of key credit quality indicators and statistics such as delinquency, loan balance to estimated collateral value and the financial strength of individual borrowers and guarantors. Because many of these indicators are difficult to apply across an entire class of receivables, we evaluate individual loans on a quarterly basis and classify these loans into three categories based on the key credit quality indicators for the individual loan. These three categories are performing, watchlist and nonaccrual. We classify finance receivables as nonaccrual if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically classify accounts as nonaccrual once they are contractually delinquent by more than three months unless collection of principal and interest is not doubtful. Accounts are classified as watchlist when credit quality indicators have deteriorated as compared with typical underwriting criteria, and we believe collection of full principal and interest is probable but not certain. All other finance receivables that do not meet the watchlist or nonaccrual categories are classified as performing. We measure delinquency based on the contractual payment terms of our finance receivables. In determining the delinquency aging category of an account, any/all principal and interest received is applied to the most past-due principal and/or interest amounts due. If a significant portion of the contractually due payment is delinquent, the entire finance receivable balance is reported in accordance with the most past-due delinquency aging category. Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) June 29, December 30, Performing $ 570 $ 571 Watchlist 21 23 Nonaccrual 14 15 Nonaccrual as a percentage of finance receivables 2.31% 2.46% Current and less than 31 days past due $ 587 $ 589 31-60 days past due 15 16 61-90 days past due 2 — Over 90 days past due 1 4 60+ days contractual delinquency as a percentage of finance receivables 0.50% 0.66% At June 29, 2024, 38% of our performing finance receivables were originated since the beginning of 2022 and 28% were originated from 2019 to 2021 with the remainder prior to 2019. For finance receivables categorized as watchlist, 100% were originated from 2020 to 2021, and for nonaccrual, 100% were originated prior to 2021. 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) June 29, December 30, Finance receivables evaluated collectively $ 511 $ 508 Finance receivables evaluated individually 14 15 Allowance for credit losses based on collective evaluation 19 21 Allowance for credit losses based on individual evaluation 1 3 Impaired finance receivables with specific allowance for credit losses $ 3 $ 11 Impaired finance receivables with no specific allowance for credit losses 11 4 Unpaid principal balance of impaired finance receivables 21 25 Allowance for credit losses on impaired finance receivables 1 3 Average recorded investment of impaired finance receivables 14 27

Inventories

Inventories	6 Months Ended
	Jun. 29, 2024
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are composed of the following: (In millions) June 29, December 30, Finished goods $ 1,211 $ 1,072 Work in process 1,996 1,736 Raw materials and components 1,174 1,106 Total inventories $ 4,381 $ 3,914

Accounts Payable and Warranty L

Accounts Payable and Warranty Liability	6 Months Ended
	Jun. 29, 2024
Payables and Accruals [Abstract]
Accounts Payable and Warranty Liability	Accounts Payable and Warranty Liability Accounts Payable Supplier Financing Arrangement We have a financing arrangement with one of our suppliers that extends payment terms for up to 190 days from the receipt of goods and provides for the supplier to be paid by a financial institution earlier than maturity. In June 2024, the maximum amount available under the financing arrangement was increased by $25 million to $200 million. This financing arrangement expires in April 2027. At June 29, 2024 and December 30, 2023, the amount due under the supplier financing arrangement was $118 million and $125 million, respectively. Warranty Liability Changes in our warranty liability are as follows: Six Months Ended (In millions) June 29, July 1, Beginning of period $ 172 $ 149 Provision 38 33 Settlements (36) (35) Adjustments* (2) 13 End of period $ 172 $ 160 * Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Leases

Leases	6 Months Ended
	Jun. 29, 2024
Leases [Abstract]
Leases	Leases We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 25 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $18 million and $17 million in the second quarter of 2024 and 2023, respectively, and $36 million and $34 million in the first half of 2024 and 2023, respectively. Finance lease, variable and short-term lease costs were not significant. Cash paid for operating leases totaled $36 million and $34 million in the first half of 2024 and 2023, respectively, and is classified in cash flows from operating activities. Noncash transaction related to operating leases totaled $28 million and $24 million in the first half of 2024 and 2023, respectively, reflecting new or extended leases. In the second quarter of 2024, non-cash transactions also reflected the recognition of a $72 million asset and liability related to a new finance lease. Cash paid for finance leases was not significant. Balance sheet and other information related to our leases is as follows: (Dollars in millions) June 29, December 30, Operating leases: Other assets $ 370 $ 371 Other current liabilities 57 55 Other liabilities 323 326 Weighted-average remaining lease term (in years) 10.0 10.3 Weighted-average discount rate 4.74% 4.70% Finance leases: Property, plant and equipment, less accumulated amortization of $7 million and $8 million, respectively $ 89 $ 20 Current portion of long-term debt 1 1 Long-term debt 88 22 Weighted-average remaining lease term (in years) 5.4 14.9 Weighted-average discount rate 6.45% 4.55%
Leases	Leases We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 25 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $18 million and $17 million in the second quarter of 2024 and 2023, respectively, and $36 million and $34 million in the first half of 2024 and 2023, respectively. Finance lease, variable and short-term lease costs were not significant. Cash paid for operating leases totaled $36 million and $34 million in the first half of 2024 and 2023, respectively, and is classified in cash flows from operating activities. Noncash transaction related to operating leases totaled $28 million and $24 million in the first half of 2024 and 2023, respectively, reflecting new or extended leases. In the second quarter of 2024, non-cash transactions also reflected the recognition of a $72 million asset and liability related to a new finance lease. Cash paid for finance leases was not significant. Balance sheet and other information related to our leases is as follows: (Dollars in millions) June 29, December 30, Operating leases: Other assets $ 370 $ 371 Other current liabilities 57 55 Other liabilities 323 326 Weighted-average remaining lease term (in years) 10.0 10.3 Weighted-average discount rate 4.74% 4.70% Finance leases: Property, plant and equipment, less accumulated amortization of $7 million and $8 million, respectively $ 89 $ 20 Current portion of long-term debt 1 1 Long-term debt 88 22 Weighted-average remaining lease term (in years) 5.4 14.9 Weighted-average discount rate 6.45% 4.55% Maturities of our lease liabilities at June 29, 2024 are as follows: (In millions) Operating Leases Finance Leases 2024 $ 37 $ 3 2025 67 7 2026 52 7 2027 45 6 2028 42 74 Thereafter 243 16 Total lease payments 486 113 Less: interest (106) (24) Total lease liabilities $ 380 $ 89

Derivative Instruments and Fair

Derivative Instruments and Fair Value Measurements	6 Months Ended
	Jun. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Fair Value Measurements	Derivative Instruments and Fair Value Measurements We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We prioritize the assumptions that market participants would use in pricing the asset or liability into a three-tier fair value hierarchy. This fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs in which little or no market data exist, requiring companies to develop their own assumptions. Observable inputs that do not meet the criteria of Level 1, which include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets and liabilities in markets that are not active, are categorized as Level 2. Level 3 inputs are those that reflect our estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Valuation techniques for assets and liabilities measured using Level 3 inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data. These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain. Assets and Liabilities Recorded at Fair Value on a Recurring Basis We manufacture and sell our products in a number of countries throughout the world, and, therefore, we are exposed to movements in foreign currency exchange rates. We primarily utilize foreign currency exchange contracts with maturities of no more than three years to manage this volatility. These contracts qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales, inventory purchases and overhead expenses. Net gains and losses recognized in earnings and Accumulated other comprehensive loss on cash flow hedges, including gains and losses related to hedge ineffectiveness, were not significant in the periods presented. Our foreign currency exchange contracts are measured at fair value using the market method valuation technique. The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers. These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2. At June 29, 2024 and December 30, 2023, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $631 million and $478 million, respectively. At June 29, 2024, the fair value amounts of our foreign currency exchange contracts were a $5 million asset and a $10 million liability. At December 30, 2023, the fair value amount of our foreign currency exchange contracts were a $4 million asset and a $3 million liability. Our Finance group enters into interest rate swap agreements to mitigate certain exposures to fluctuations in interest rates. By using these contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. The fair value of our interest rate swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2. At June 29, 2024 and December 30, 2023, we had interest rate swap agreements related to our Floating Rate Junior Subordinated Notes for an aggregate notional amount of $185 million that effectively converts the variable-rate interest for these Notes to a weighted-average fixed rate of 5.17%; these agreements have maturities ranging from August 2025 to August 2028. At June 29, 2024 and December 30, 2023, we had an interest rate swap agreement with a notional amount of $25 million that matures in June 2025 and effectively converts variable-rate interest on a term loan to a fixed rate of 4.13%. The fair value of our outstanding interest rate swap agreements was a $6 million asset at June 29, 2024 and a $4 million asset at December 30, 2023. Assets and Liabilities Not Recorded at Fair Value The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows: June 29, 2024 December 30, 2023 Carrying Estimated Carrying Estimated (In millions) Value Fair Value Value Fair Value Manufacturing group Debt, excluding leases $ (3,167) $ (2,956) $ (3,520) $ (3,342) Finance group Finance receivables, excluding leases 422 431 417 423 Debt (342) (310) (348) (293) Fair value for the Manufacturing group debt is determined using market observable data for similar transactions (Level 2). The fair value for the Finance group debt was determined primarily based on discounted cash flow analyses using observable market inputs from debt with similar duration, subordination and credit default expectations (Level 2). Fair value estimates for finance receivables were determined based on internally developed discounted cash flow models primarily utilizing significant unobservable inputs (Level 3), which include estimates of the rate of return, financing cost, capital structure and/or discount rate expectations of current market participants combined with estimated loan cash flows based on credit losses, payment rates and expectations of borrowers’ ability to make payments on a timely basis.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 29, 2024
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 June 29, 2024 Beginning of period $ 25 $ 2,012 $ (484) $ 6,059 $ (681) $ 6,931 Net income — — — 259 — 259 Other comprehensive loss — — — — (12) (12) Share-based compensation activity — 38 — — — 38 Dividends declared — — — (4) — (4) Purchases of common stock, including excise tax* — — (360) — — (360) End of period $ 25 $ 2,050 $ (844) $ 6,314 $ (693) $ 6,852 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, including excise tax* — — (276) — — (276) End of period $ 26 $ 1,973 $ (740) $ 6,349 $ (574) $ 7,034 Six months ended June 29, 2024 Beginning of period $ 24 $ 1,910 $ (165) $ 5,862 $ (644) $ 6,987 Net income — — — 460 — 460 Other comprehensive loss — — — — (49) (49) Share-based compensation activity 1 140 — — — 141 Dividends declared — — — (8) — (8) Purchases of common stock, including excise tax* — — (679) — — (679) End of period $ 25 $ 2,050 $ (844) $ 6,314 $ (693) $ 6,852 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, including excise tax* — — (656) — — (656) End of period $ 26 $ 1,973 $ (740) $ 6,349 $ (574) $ 7,034 *Includes amounts accrued for excise tax imposed on common share repurchases of $2 million and $4 million for the second quarter and first half of 2024, respectively, and $3 million and $6 million for the second quarter and first half of 2023, respectively. Dividends per share of common stock were $0.02 for both the second quarter of 2024 and 2023 and $0.04 for both the first half of 2024 and 2023. Earnings Per Share We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period. Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options. The weighted-average shares outstanding for basic and diluted EPS are as follows: Three Months Ended Six Months Ended (In thousands) June 29, July 1, June 29, July 1, Basic weighted-average shares outstanding 189,746 200,701 191,273 202,768 Dilutive effect of stock options 2,109 1,808 2,085 1,992 Diluted weighted-average shares outstanding 191,855 202,509 193,358 204,760 Stock options to purchase 1.0 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 2024 as their effect would have been anti-dilutive. For both the second quarter and first half of 2023, stock options to purchase 2.0 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 30, 2023 $ (598) $ (49) $ 3 $ (644) Other comprehensive loss before reclassifications — (47) (4) (51) Reclassified from Accumulated other comprehensive loss 2 — — 2 Balance at June 29, 2024 $ (596) $ (96) $ (1) $ (693) 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) The before and after-tax components of Other comprehensive income (loss) are presented below: June 29, 2024 July 1, 2023 (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* $ (1) $ — $ (1) $ (1) $ — $ (1) Amortization of prior service cost* 2 — 2 2 (1) 1 Pension and postretirement benefits adjustments, net 1 — 1 1 (1) — Foreign currency translation adjustments (14) — (14) 4 — 4 Deferred gains (losses) on hedge contracts: Current deferrals 1 — 1 7 (1) 6 Reclassification adjustments (1) 1 — 2 — 2 Deferred gains (losses) on hedge contracts, net — 1 1 9 (1) 8 Total $ (13) $ 1 $ (12) $ 14 $ (2) $ 12 Six Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial gain* $ (2) $ — $ (2) $ (3) $ 1 $ (2) Amortization of prior service cost* 4 — 4 4 (2) 2 Pension and postretirement benefits adjustments, net 2 — 2 1 (1) — Foreign currency translation adjustments (47) — (47) 32 — 32 Deferred gains (losses) on hedge contracts: Current deferrals (6) 2 (4) 3 — 3 Reclassification adjustments (2) 2 — 4 (1) 3 Deferred gains (losses) on hedge contracts, net (8) 4 (4) 7 (1) 6 Total $ (53) $ 4 $ (49) $ 40 $ (2) $ 38 *These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2023 Annual Report on Form 10-K for additional information.

Segment Information

Segment Information	6 Months Ended
	Jun. 29, 2024
Segment Reporting [Abstract]
Segment Information	Segment Information We operate in, and report financial information for, the following six operating segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation and Finance. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes the non-service components of pension and postretirement income, net; LIFO inventory provision; intangible asset amortization; interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense. Our revenues by segment, along with a reconciliation of segment profit to income from continuing operations before income taxes, are included in the table below: Three Months Ended Six Months Ended (In millions) June 29, July 1, June 29, July 1, Revenues Textron Aviation $ 1,475 $ 1,362 $ 2,663 $ 2,511 Bell 794 701 1,521 1,322 Textron Systems 323 306 629 612 Industrial 914 1,026 1,806 1,958 Textron eAviation 9 11 16 15 Finance 12 18 27 30 Total revenues $ 3,527 $ 3,424 $ 6,662 $ 6,448 Segment Profit Textron Aviation $ 195 $ 171 $ 338 $ 296 Bell 82 65 162 125 Textron Systems 35 37 73 71 Industrial 42 79 71 120 Textron eAviation (18) (12) (36) (21) Finance 7 12 25 20 Segment profit 343 352 633 611 Corporate expenses and other, net (17) (21) (79) (60) Interest expense, net for Manufacturing group (20) (16) (35) (33) LIFO inventory provision (27) (35) (47) (60) Intangible asset amortization (9) (10) (17) (20) Special charges (13) — (27) — Non-service components of pension and postretirement income, net 66 59 132 118 Income from continuing operations before income taxes $ 323 $ 329 $ 560 $ 556

Revenues

Revenues	6 Months Ended
	Jun. 29, 2024
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Disaggregation of Revenues Our revenues disaggregated by major product type are presented below: Three Months Ended Six Months Ended (In millions) June 29, July 1, June 29, July 1, Aircraft $ 975 $ 920 $ 1,707 $ 1,638 Aftermarket parts and services 500 442 956 873 Textron Aviation 1,475 1,362 $ 2,663 $ 2,511 Military aircraft and support programs 499 395 979 780 Commercial helicopters, parts and services 295 306 542 542 Bell 794 701 $ 1,521 $ 1,322 Textron Systems 323 306 $ 629 $ 612 Fuel systems and functional components 492 523 980 1,011 Specialized vehicles 422 503 826 947 Industrial 914 1,026 $ 1,806 $ 1,958 Textron eAviation 9 11 $ 16 $ 15 Finance 12 18 $ 27 $ 30 Total revenues $ 3,527 $ 3,424 $ 6,662 $ 6,448 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 June 29, 2024 Customer type: Commercial $ 1,343 $ 288 $ 79 $ 908 $ 9 $ 12 $ 2,639 U.S. Government 132 506 244 6 — — 888 Total revenues $ 1,475 $ 794 $ 323 $ 914 $ 9 $ 12 $ 3,527 Geographic location: United States $ 1,147 $ 639 $ 283 $ 497 $ 5 $ 4 $ 2,575 Europe 91 14 12 183 3 — 303 Other international 237 141 28 234 1 8 649 Total revenues $ 1,475 $ 794 $ 323 $ 914 $ 9 $ 12 $ 3,527 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 Six months ended June 29, 2024 Customer type: Commercial $ 2,498 $ 527 $ 151 $ 1,792 $ 16 $ 27 $ 5,011 U.S. Government 165 994 478 14 — — 1,651 Total revenues $ 2,663 $ 1,521 $ 629 $ 1,806 $ 16 $ 27 $ 6,662 Geographic location: United States $ 2,097 $ 1,198 $ 557 $ 957 $ 9 $ 8 $ 4,826 Europe 153 37 25 381 5 5 606 Other international 413 286 47 468 2 14 1,230 Total revenues $ 2,663 $ 1,521 $ 629 $ 1,806 $ 16 $ 27 $ 6,662 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 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 June 29, 2024, we had $13.4 billion in remaining performance obligations of which we expect to recognize revenues of approximately 82% through 2025, an additional 16% through 2027, and the balance thereafter. Contract Assets and Liabilities

Retirement Plans

Retirement Plans	6 Months Ended
	Jun. 29, 2024
Retirement Benefits [Abstract]
Retirement Plans	Retirement Plans We provide defined benefit pension plans and other postretirement benefits to eligible employees. The components of net periodic benefit income for these plans are as follows: Three Months Ended Six Months Ended (In millions) June 29, July 1, June 29, July 1, Pension Benefits Service cost $ 17 $ 16 $ 34 $ 33 Interest cost 91 91 181 182 Expected return on plan assets (159) (153) (318) (305) Amortization of net actuarial loss 1 1 2 1 Amortization of prior service cost 3 3 5 6 Net periodic benefit income* $ (47) $ (42) $ (96) $ (83) Postretirement Benefits Other Than Pensions Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 1 2 $ 3 $ 4 Amortization of net actuarial gain (2) (2) (4) (4) Amortization of prior service credit (1) (1) (1) (2) Net periodic benefit income $ (1) $ — $ (1) $ (1)

Special Charges

Special Charges	6 Months Ended
	Jun. 29, 2024
Restructuring and Related Activities [Abstract]
Special Charges	Special Charges On April 24, 2024, the Board of Directors approved the expansion of Textron’s 2023 restructuring plan to further reduce operating expenses through headcount reductions. In the first quarter of 2024, both the Shadow and Future Attack Reconnaissance Aircraft programs were cancelled at the Textron Systems and Bell segments, resulting in additional severance costs under the restructuring plan. Additionally, we increased our planned headcount reduction within the Industrial segment due to lower anticipated consumer demand for certain products at the Specialized Vehicles product line and reduced demand for fuel systems from European automotive manufacturers at Kautex. In connection with this plan, special charges totaled $13 million in the second quarter of 2024, related to headcount reductions at the Industrial segment. In the first half of 2024, special charges totaled $27 million, which included $26 million in severance costs and $1 million in asset impairment charges; we recorded $15 million of these charges at the Industrial segment, $7 million at the Textron Systems segment and $5 million at the Bell segment. We expect to incur additional special charges in the second half of 2024 in the range of $12 million to $17 million, largely related to headcount reductions at the Industrial segment. Since inception of the 2023 restructuring plan, we have incurred $153 million in special charges, including severance costs of $65 million, which included $35 million at the Industrial segment, $18 million at the Bell segment and $12 million at the Textron Systems segment; and asset impairment charges of $88 million at the Industrial segment. Headcount reductions since inception of the plan are expected to total approximately 1,500 positions, representing 4% of our global workforce. We estimate that remaining future cash outlays under this plan will be in the range of $50 million to $55 million, most of which we expect to pay in 2024. We expect charges under this plan to be substantially completed by the end of 2024. Our restructuring reserve activity is summarized below: (In millions) Severance Contract Total Balance at December 30, 2023 $ 42 $ 5 $ 47 Provision for 2023 Restructuring Plan 26 — 26 Cash paid (29) — (29) Foreign currency translation (1) — (1) Balance at June 29, 2024 $ 38 $ 5 $ 43

Income Taxes

Income Taxes	6 Months Ended
	Jun. 29, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate for the second quarter and first half of 2024 was 19.5% and 17.7%, respectively. In the second quarter and first half of 2024, 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.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 29, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are subject to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; disputes with suppliers, production partners or other third parties; product liability; patent and trademark infringement; employment disputes; and environmental, health and safety matters. Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Pay vs Performance Disclosure
Net income	$ 259	$ 263	$ 460	$ 454

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 29, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of Estimates	Use of Estimates We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined.

Accounts Receivable and Finan_2

Accounts Receivable and Finance Receivables (Tables)	6 Months Ended
	Jun. 29, 2024
Receivables [Abstract]
Accounts Receivable	Accounts receivable is composed of the following: (In millions) June 29, December 30, Commercial $ 767 $ 831 U.S. Government contracts 101 63 868 894 Allowance for credit losses (21) (26) Total accounts receivable, net $ 847 $ 868
Finance Receivables	Finance receivables are presented in the following table: (In millions) June 29, December 30, Finance receivables $ 605 $ 609 Allowance for credit losses (20) (24) Total finance receivables, net $ 585 $ 585
Finance Receivables Categorized Based On Credit Quality Indicators	Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) June 29, December 30, Performing $ 570 $ 571 Watchlist 21 23 Nonaccrual 14 15 Nonaccrual as a percentage of finance receivables 2.31% 2.46% Current and less than 31 days past due $ 587 $ 589 31-60 days past due 15 16 61-90 days past due 2 — Over 90 days past due 1 4 60+ days contractual delinquency as a percentage of finance receivables 0.50% 0.66%
Finance Receivables By Delinquency Aging Category	Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) June 29, December 30, Performing $ 570 $ 571 Watchlist 21 23 Nonaccrual 14 15 Nonaccrual as a percentage of finance receivables 2.31% 2.46% Current and less than 31 days past due $ 587 $ 589 31-60 days past due 15 16 61-90 days past due 2 — Over 90 days past due 1 4 60+ days contractual delinquency as a percentage of finance receivables 0.50% 0.66%
Finance Receivables and Allowance For Credit Losses Based on Impairment Evaluation	A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles. (In millions) June 29, December 30, Finance receivables evaluated collectively $ 511 $ 508 Finance receivables evaluated individually 14 15 Allowance for credit losses based on collective evaluation 19 21 Allowance for credit losses based on individual evaluation 1 3 Impaired finance receivables with specific allowance for credit losses $ 3 $ 11 Impaired finance receivables with no specific allowance for credit losses 11 4 Unpaid principal balance of impaired finance receivables 21 25 Allowance for credit losses on impaired finance receivables 1 3 Average recorded investment of impaired finance receivables 14 27

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 29, 2024
Inventory Disclosure [Abstract]
Inventories	Inventories are composed of the following: (In millions) June 29, December 30, Finished goods $ 1,211 $ 1,072 Work in process 1,996 1,736 Raw materials and components 1,174 1,106 Total inventories $ 4,381 $ 3,914

Accounts Payable and Warranty_2

Accounts Payable and Warranty Liability (Tables)	6 Months Ended
	Jun. 29, 2024
Payables and Accruals [Abstract]
Changes in Warranty Liability	Changes in our warranty liability are as follows: Six Months Ended (In millions) June 29, July 1, Beginning of period $ 172 $ 149 Provision 38 33 Settlements (36) (35) Adjustments* (2) 13 End of period $ 172 $ 160 * Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 29, 2024
Leases [Abstract]
Schedule of Balance Sheet and Other Information	Balance sheet and other information related to our leases is as follows: (Dollars in millions) June 29, December 30, Operating leases: Other assets $ 370 $ 371 Other current liabilities 57 55 Other liabilities 323 326 Weighted-average remaining lease term (in years) 10.0 10.3 Weighted-average discount rate 4.74% 4.70% Finance leases: Property, plant and equipment, less accumulated amortization of $7 million and $8 million, respectively $ 89 $ 20 Current portion of long-term debt 1 1 Long-term debt 88 22 Weighted-average remaining lease term (in years) 5.4 14.9 Weighted-average discount rate 6.45% 4.55%
Lessee, Operating Lease, Liability, to be Paid, Maturity	Maturities of our lease liabilities at June 29, 2024 are as follows: (In millions) Operating Leases Finance Leases 2024 $ 37 $ 3 2025 67 7 2026 52 7 2027 45 6 2028 42 74 Thereafter 243 16 Total lease payments 486 113 Less: interest (106) (24) Total lease liabilities $ 380 $ 89
Finance Lease, Liability, to be Paid, Maturity	Maturities of our lease liabilities at June 29, 2024 are as follows: (In millions) Operating Leases Finance Leases 2024 $ 37 $ 3 2025 67 7 2026 52 7 2027 45 6 2028 42 74 Thereafter 243 16 Total lease payments 486 113 Less: interest (106) (24) Total lease liabilities $ 380 $ 89

Derivative Instruments and Fa_2

Derivative Instruments and Fair Value Measurements (Tables)	6 Months Ended
	Jun. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Carrying Value and Estimated and Fair Value of Financial Instruments	The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows: June 29, 2024 December 30, 2023 Carrying Estimated Carrying Estimated (In millions) Value Fair Value Value Fair Value Manufacturing group Debt, excluding leases $ (3,167) $ (2,956) $ (3,520) $ (3,342) Finance group Finance receivables, excluding leases 422 431 417 423 Debt (342) (310) (348) (293)

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 29, 2024
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 June 29, 2024 Beginning of period $ 25 $ 2,012 $ (484) $ 6,059 $ (681) $ 6,931 Net income — — — 259 — 259 Other comprehensive loss — — — — (12) (12) Share-based compensation activity — 38 — — — 38 Dividends declared — — — (4) — (4) Purchases of common stock, including excise tax* — — (360) — — (360) End of period $ 25 $ 2,050 $ (844) $ 6,314 $ (693) $ 6,852 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, including excise tax* — — (276) — — (276) End of period $ 26 $ 1,973 $ (740) $ 6,349 $ (574) $ 7,034 Six months ended June 29, 2024 Beginning of period $ 24 $ 1,910 $ (165) $ 5,862 $ (644) $ 6,987 Net income — — — 460 — 460 Other comprehensive loss — — — — (49) (49) Share-based compensation activity 1 140 — — — 141 Dividends declared — — — (8) — (8) Purchases of common stock, including excise tax* — — (679) — — (679) End of period $ 25 $ 2,050 $ (844) $ 6,314 $ (693) $ 6,852 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, including excise tax* — — (656) — — (656) End of period $ 26 $ 1,973 $ (740) $ 6,349 $ (574) $ 7,034 *Includes amounts accrued for excise tax imposed on common share repurchases of $2 million and $4 million for the second quarter and first half of 2024, respectively, and $3 million and $6 million for the second quarter and first half of 2023, respectively.
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) June 29, July 1, June 29, July 1, Basic weighted-average shares outstanding 189,746 200,701 191,273 202,768 Dilutive effect of stock options 2,109 1,808 2,085 1,992 Diluted weighted-average shares outstanding 191,855 202,509 193,358 204,760
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 30, 2023 $ (598) $ (49) $ 3 $ (644) Other comprehensive loss before reclassifications — (47) (4) (51) Reclassified from Accumulated other comprehensive loss 2 — — 2 Balance at June 29, 2024 $ (596) $ (96) $ (1) $ (693) 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)
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: June 29, 2024 July 1, 2023 (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* $ (1) $ — $ (1) $ (1) $ — $ (1) Amortization of prior service cost* 2 — 2 2 (1) 1 Pension and postretirement benefits adjustments, net 1 — 1 1 (1) — Foreign currency translation adjustments (14) — (14) 4 — 4 Deferred gains (losses) on hedge contracts: Current deferrals 1 — 1 7 (1) 6 Reclassification adjustments (1) 1 — 2 — 2 Deferred gains (losses) on hedge contracts, net — 1 1 9 (1) 8 Total $ (13) $ 1 $ (12) $ 14 $ (2) $ 12 Six Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial gain* $ (2) $ — $ (2) $ (3) $ 1 $ (2) Amortization of prior service cost* 4 — 4 4 (2) 2 Pension and postretirement benefits adjustments, net 2 — 2 1 (1) — Foreign currency translation adjustments (47) — (47) 32 — 32 Deferred gains (losses) on hedge contracts: Current deferrals (6) 2 (4) 3 — 3 Reclassification adjustments (2) 2 — 4 (1) 3 Deferred gains (losses) on hedge contracts, net (8) 4 (4) 7 (1) 6 Total $ (53) $ 4 $ (49) $ 40 $ (2) $ 38 *These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2023 Annual Report on Form 10-K for additional information.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 29, 2024
Segment Reporting [Abstract]
Reconciliation of Revenues by Segment	Our revenues by segment, along with a reconciliation of segment profit to income from continuing operations before income taxes, are included in the table below: Three Months Ended Six Months Ended (In millions) June 29, July 1, June 29, July 1, Revenues Textron Aviation $ 1,475 $ 1,362 $ 2,663 $ 2,511 Bell 794 701 1,521 1,322 Textron Systems 323 306 629 612 Industrial 914 1,026 1,806 1,958 Textron eAviation 9 11 16 15 Finance 12 18 27 30 Total revenues $ 3,527 $ 3,424 $ 6,662 $ 6,448 Segment Profit Textron Aviation $ 195 $ 171 $ 338 $ 296 Bell 82 65 162 125 Textron Systems 35 37 73 71 Industrial 42 79 71 120 Textron eAviation (18) (12) (36) (21) Finance 7 12 25 20 Segment profit 343 352 633 611 Corporate expenses and other, net (17) (21) (79) (60) Interest expense, net for Manufacturing group (20) (16) (35) (33) LIFO inventory provision (27) (35) (47) (60) Intangible asset amortization (9) (10) (17) (20) Special charges (13) — (27) — Non-service components of pension and postretirement income, net 66 59 132 118 Income from continuing operations before income taxes $ 323 $ 329 $ 560 $ 556
Reconciliation of Segment Profit to Income Before Income Taxes	Our revenues by segment, along with a reconciliation of segment profit to income from continuing operations before income taxes, are included in the table below: Three Months Ended Six Months Ended (In millions) June 29, July 1, June 29, July 1, Revenues Textron Aviation $ 1,475 $ 1,362 $ 2,663 $ 2,511 Bell 794 701 1,521 1,322 Textron Systems 323 306 629 612 Industrial 914 1,026 1,806 1,958 Textron eAviation 9 11 16 15 Finance 12 18 27 30 Total revenues $ 3,527 $ 3,424 $ 6,662 $ 6,448 Segment Profit Textron Aviation $ 195 $ 171 $ 338 $ 296 Bell 82 65 162 125 Textron Systems 35 37 73 71 Industrial 42 79 71 120 Textron eAviation (18) (12) (36) (21) Finance 7 12 25 20 Segment profit 343 352 633 611 Corporate expenses and other, net (17) (21) (79) (60) Interest expense, net for Manufacturing group (20) (16) (35) (33) LIFO inventory provision (27) (35) (47) (60) Intangible asset amortization (9) (10) (17) (20) Special charges (13) — (27) — Non-service components of pension and postretirement income, net 66 59 132 118 Income from continuing operations before income taxes $ 323 $ 329 $ 560 $ 556

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Jun. 29, 2024
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Our revenues disaggregated by major product type are presented below: Three Months Ended Six Months Ended (In millions) June 29, July 1, June 29, July 1, Aircraft $ 975 $ 920 $ 1,707 $ 1,638 Aftermarket parts and services 500 442 956 873 Textron Aviation 1,475 1,362 $ 2,663 $ 2,511 Military aircraft and support programs 499 395 979 780 Commercial helicopters, parts and services 295 306 542 542 Bell 794 701 $ 1,521 $ 1,322 Textron Systems 323 306 $ 629 $ 612 Fuel systems and functional components 492 523 980 1,011 Specialized vehicles 422 503 826 947 Industrial 914 1,026 $ 1,806 $ 1,958 Textron eAviation 9 11 $ 16 $ 15 Finance 12 18 $ 27 $ 30 Total revenues $ 3,527 $ 3,424 $ 6,662 $ 6,448 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 June 29, 2024 Customer type: Commercial $ 1,343 $ 288 $ 79 $ 908 $ 9 $ 12 $ 2,639 U.S. Government 132 506 244 6 — — 888 Total revenues $ 1,475 $ 794 $ 323 $ 914 $ 9 $ 12 $ 3,527 Geographic location: United States $ 1,147 $ 639 $ 283 $ 497 $ 5 $ 4 $ 2,575 Europe 91 14 12 183 3 — 303 Other international 237 141 28 234 1 8 649 Total revenues $ 1,475 $ 794 $ 323 $ 914 $ 9 $ 12 $ 3,527 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 Six months ended June 29, 2024 Customer type: Commercial $ 2,498 $ 527 $ 151 $ 1,792 $ 16 $ 27 $ 5,011 U.S. Government 165 994 478 14 — — 1,651 Total revenues $ 2,663 $ 1,521 $ 629 $ 1,806 $ 16 $ 27 $ 6,662 Geographic location: United States $ 2,097 $ 1,198 $ 557 $ 957 $ 9 $ 8 $ 4,826 Europe 153 37 25 381 5 5 606 Other international 413 286 47 468 2 14 1,230 Total revenues $ 2,663 $ 1,521 $ 629 $ 1,806 $ 16 $ 27 $ 6,662 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

Retirement Plans (Tables)

Retirement Plans (Tables)	6 Months Ended
	Jun. 29, 2024
Retirement Benefits [Abstract]
Schedule of Components of Net Periodic Benefit Income	The components of net periodic benefit income for these plans are as follows: Three Months Ended Six Months Ended (In millions) June 29, July 1, June 29, July 1, Pension Benefits Service cost $ 17 $ 16 $ 34 $ 33 Interest cost 91 91 181 182 Expected return on plan assets (159) (153) (318) (305) Amortization of net actuarial loss 1 1 2 1 Amortization of prior service cost 3 3 5 6 Net periodic benefit income* $ (47) $ (42) $ (96) $ (83) Postretirement Benefits Other Than Pensions Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 1 2 $ 3 $ 4 Amortization of net actuarial gain (2) (2) (4) (4) Amortization of prior service credit (1) (1) (1) (2) Net periodic benefit income $ (1) $ — $ (1) $ (1)

Special Charges (Tables)

Special Charges (Tables)	6 Months Ended
	Jun. 29, 2024
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve Activity	Our restructuring reserve activity is summarized below: (In millions) Severance Contract Total Balance at December 30, 2023 $ 42 $ 5 $ 47 Provision for 2023 Restructuring Plan 26 — 26 Cash paid (29) — (29) Foreign currency translation (1) — (1) Balance at June 29, 2024 $ 38 $ 5 $ 43

Basis of Presentation (Details)

Basis of Presentation (Details) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024 USD ($) $ / shares	Jul. 01, 2023 USD ($) $ / shares	Jun. 29, 2024 USD ($) borrowing_group $ / shares	Jul. 01, 2023 USD ($) $ / shares
Change in Accounting Estimate [Line Items]
Number of borrowing groups | borrowing_group			2
Cumulative catch-up method
Change in Accounting Estimate [Line Items]
Cumulative catch up adjustments, increase in segment profit	$ 18	$ 10	$ 31	$ 18
Change in accounting estimate financial effect, increase in net income	$ 14	$ 8	$ 24	$ 14
Change in accounting estimate financial effect increase in earnings per diluted share (in dollars per share) | $ / shares	$ 0.07	$ 0.04	$ 0.12	$ 0.07

Accounts Receivable and Finan_3

Accounts Receivable and Finance Receivables - Accounts Receivable (Details) - Manufacturing group - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Accounts Receivable
Accounts receivable, gross	$ 868	$ 894
Allowance for credit losses	(21)	(26)
Total accounts receivable, net	847	868
Commercial
Accounts Receivable
Accounts receivable, gross	767	831
U.S. Government
Accounts Receivable
Accounts receivable, gross	$ 101	$ 63

Accounts Receivable and Finan_4

Accounts Receivable and Finance Receivables - Finance Receivables (Details) - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Finance Receivables
Finance receivables	$ 605	$ 609
Allowance for credit losses	(20)	(24)
Total finance receivables, net	$ 585	$ 585

Accounts Receivable and Finan_5

Accounts Receivable and Finance Receivables - Finance Receivable Portfolio Quality (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 29, 2024	Dec. 30, 2023
Finance Receivable Portfolio Quality
Finance receivables	$ 605	$ 609
60+ days contractual delinquency as a percentage of finance receivables	0.50%	0.66%
Current and less than 31 days past due
Finance Receivable Portfolio Quality
Finance receivables	$ 587	$ 589
31-60 days past due
Finance Receivable Portfolio Quality
Finance receivables	15	16
61-90 days past due
Finance Receivable Portfolio Quality
Finance receivables	2	0
Over 90 days past due
Finance Receivable Portfolio Quality
Finance receivables	$ 1	$ 4
Performing
Finance Receivable Portfolio Quality
Financing percentage receivable originating since the beginning of 2022	38%
Financing receivable percentage originating from 2019 to 2021	28%
Nonperforming
Finance Receivable Portfolio Quality
Nonaccrual as a percentage of finance receivables	2.31%	2.46%
Nonperforming | Watchlist
Finance Receivable Portfolio Quality
Finance receivables	$ 21	$ 23
Financing receivable percentage originating from 2020 to 2021	100%
Nonperforming | Nonaccrual
Finance Receivable Portfolio Quality
Finance receivables	$ 14	15
Financing receivable percentage originating prior to 2020	100%
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	$ 570	$ 571

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
	Jun. 29, 2024	Dec. 30, 2023
Receivables [Abstract]
Finance receivables evaluated collectively	$ 511	$ 508
Finance receivables evaluated individually	14	15
Allowance for credit losses based on collective evaluation	19	21
Allowance for credit losses based on individual evaluation	1	3
Impaired finance receivables with specific allowance for credit losses	3	11
Impaired finance receivables with no specific allowance for credit losses	11	4
Unpaid principal balance of impaired finance receivables	21	25
Allowance for credit losses on impaired finance receivables	1	3
Average recorded investment of impaired finance receivables	$ 14	$ 27

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Inventories
Finished goods	$ 1,211	$ 1,072
Work in process	1,996	1,736
Raw materials and components	1,174	1,106
Total inventories	$ 4,381	$ 3,914

Accounts Payable and Warranty_3

Accounts Payable and Warranty Liability - Narrative (Details) - USD ($) $ in Millions	1 Months Ended
	Jun. 29, 2024	Dec. 30, 2023
Supplier Finance Program [Line Items]
Increase in amount available under financing arrangement	$ 25
Supplier financing maximum commitment	200
Payable under supplier financing arrangement	$ 118	$ 125
Maximum
Supplier Finance Program [Line Items]
Payment terms period under supplier financing arrangement	190 days

Accounts Payable and Warranty_4

Accounts Payable and Warranty Liability - Warranty Liability (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023
Changes in warranty liability
Beginning of period	$ 172	$ 149
Provision	38	33
Settlements	(36)	(35)
Adjustments	(2)	13
End of period	$ 172	$ 160

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Leases [Abstract]
Remaining operating lease terms	25 years		25 years
Operating lease - option to extend			true
Operating lease - option to extend the lease, term	20 years		20 years
Operating lease cost	$ 18	$ 17	$ 36	$ 34
Cash paid for operating lease liabilities			36	34
Noncash lease transactions			$ 28	$ 24
Recognition of assets and liability related to finance lease	$ 72

Leases - Balance Sheet and Othe

Leases - Balance Sheet and Other Information (Details) - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Operating leases:
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Other assets	$ 370	$ 371
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Other current liabilities	$ 57	$ 55
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Other liabilities	$ 323	$ 326
Weighted-average remaining lease term (in years)	10 years	10 years 3 months 18 days
Weighted-average discount rate	4.74%	4.70%
Finance leases:
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, plant and equipment, less accumulated depreciation and amortization of $5,356 and $5,247, respectively	Property, plant and equipment, less accumulated depreciation and amortization of $5,356 and $5,247, respectively
Property, plant and equipment, less accumulated amortization of $7 million and $8 million, respectively	$ 89	$ 20
Finance leases, accumulated amortization	$ 7	$ 8
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of long-term debt	Current portion of long-term debt
Current portion of long-term debt	$ 1	$ 1
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term debt	Long-term debt
Long-term debt	$ 88	$ 22
Weighted-average remaining lease term (in years)	5 years 4 months 24 days	14 years 10 months 24 days
Weighted-average discount rate	6.45%	4.55%

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) $ in Millions	Jun. 29, 2024 USD ($)
Operating Leases
2024	$ 37
2025	67
2026	52
2027	45
2028	42
Thereafter	243
Total lease payments	486
Less: interest	(106)
Total lease liabilities	380
Finance Leases
2024	3
2025	7
2026	7
2027	6
2028	74
Thereafter	16
Total lease payments	113
Less: interest	(24)
Total lease liabilities	$ 89

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
	Jun. 29, 2024	Dec. 30, 2023
Manufacturing group
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Forward exchange contracts maximum maturity period	3 years
Manufacturing group | Foreign currency exchange contracts | Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Notional amounts	$ 631	$ 478
Manufacturing group | Foreign currency exchange contracts | Cash Flow Hedging | Level 2
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Derivative asset, fair value	5	4
Derivative liability, fair value	10	3
Finance group | Interest rate swap | Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Derivative asset, fair value	6	4
Finance group | Interest rate swap, maturing August 2025 to August 2028 | Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Notional amounts	$ 185	$ 185
Finance group | Interest rate swap, maturing August 2025 to August 2028 | Cash Flow Hedging | Floating Rate Junior Subordinated Notes due 2067 | Junior Subordinated Debt
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Net impact of debt and derivative, weighted-average fixed interest rate	5.17%	5.17%
Finance group | Interest rate swap, maturing in June 2025 | Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Notional amounts	$ 25	$ 25
Finance group | Interest rate swap, maturing in June 2025 | Cash Flow Hedging | Floating Rate Junior Subordinated Notes due 2067 | Junior Subordinated Debt
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Net impact of debt and derivative, fixed interest rate	4.13%	4.13%

Derivative Instruments and Fa_4

Derivative Instruments and Fair Value Measurements - Assets and Liabilities not Recorded at Fair Value (Details) - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Manufacturing group | Carrying Value
Financial instruments not reflected at fair value
Debt	$ (3,167)	$ (3,520)
Manufacturing group | Estimated Fair value
Financial instruments not reflected at fair value
Debt	(2,956)	(3,342)
Finance group | Carrying Value
Financial instruments not reflected at fair value
Debt	(342)	(348)
Finance receivables, excluding leases	422	417
Finance group | Estimated Fair value
Financial instruments not reflected at fair value
Debt	(310)	(293)
Finance receivables, excluding leases	$ 431	$ 423

Shareholders' Equity - Reconcil

Shareholders' Equity - Reconciliation of Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 6,931	$ 7,008	$ 6,987	$ 7,113
Net income	259	263	460	454
Other comprehensive income (loss)	(12)	12	(49)	38
Share-based compensation activity	38	31	141	93
Dividends declared	(4)	(4)	(8)	(8)
Purchases of common stock, including excise tax	(360)	(276)	(679)	(656)
Balance at end of period	6,852	7,034	6,852	7,034
Excise taxes on common share repurchases	$ 2	$ 3	$ 4	$ 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	$ 25	$ 26	$ 24	$ 26
Share-based compensation activity			1
Balance at end of period	25	26	25	26
Capital Surplus
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	2,012	1,942	1,910	1,880
Share-based compensation activity	38	31	140	93
Balance at end of period	2,050	1,973	2,050	1,973
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(484)	(464)	(165)	(84)
Purchases of common stock, including excise tax	(360)	(276)	(679)	(656)
Balance at end of period	(844)	(740)	(844)	(740)
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	6,059	6,090	5,862	5,903
Net income	259	263	460	454
Dividends declared	(4)	(4)	(8)	(8)
Balance at end of period	6,314	6,349	6,314	6,349
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(681)	(586)	(644)	(612)
Other comprehensive income (loss)	(12)	12	(49)	38
Balance at end of period	$ (693)	$ (574)	$ (693)	$ (574)

Shareholders' Equity - Earnings

Shareholders' Equity - Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Equity [Abstract]
Basic weighted-average shares outstanding (in shares)	189,746	200,701	191,273	202,768
Dilutive effect of stock options (in shares)	2,109	1,808	2,085	1,992
Diluted weighted-average shares outstanding (in shares)	191,855	202,509	193,358	204,760
Anti-dilutive effect of weighted average shares (in shares)	1,000	2,000	1,000	2,000

Shareholders' Equity - Accumula

Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 6,987	$ 7,113
Other comprehensive loss before reclassifications	(51)	35
Reclassified from Accumulated other comprehensive loss	2	3
Balance at end of period	6,852	7,034
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(644)	(612)
Balance at end of period	(693)	(574)
Pension and Postretirement Benefits Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(598)	(516)
Other comprehensive loss before reclassifications	0	0
Reclassified from Accumulated other comprehensive loss	2	0
Balance at end of period	(596)	(516)
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(49)	(94)
Other comprehensive loss before reclassifications	(47)	32
Reclassified from Accumulated other comprehensive loss	0	0
Balance at end of period	(96)	(62)
Deferred Gains (Losses) on Hedge Contracts
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	3	(2)
Other comprehensive loss before reclassifications	(4)	3
Reclassified from Accumulated other comprehensive loss	0	3
Balance at end of period	$ (1)	$ 4

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
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Pension and postretirement benefits adjustments, pre-tax:
Amortization of net actuarial gain, pre-tax	$ (1)	$ (1)	$ (2)	$ (3)
Amortization of prior service cost, pre-tax	2	2	4	4
Pension and postretirement benefits adjustments, net, pre-tax	1	1	2	1
Pension and postretirement benefits adjustments, tax:
Amortization of net actuarial gain, tax (expense) benefit	0	0	0	1
Amortization of prior service cost, tax (expense) benefit	0	(1)	0	(2)
Pension and postretirement benefits adjustments, net, tax (expense) benefit	0	(1)	0	(1)
Pension and postretirement benefits adjustments, after-tax:
Amortization of net actuarial gain, after-tax	(1)	(1)	(2)	(2)
Amortization of prior period service cost, after-tax	2	1	4	2
Pension and postretirement benefits adjustments, net, after-tax	1	0	2	0
Foreign currency translation adjustments, pre-tax:
Foreign currency translation adjustments	(14)	4	(47)	32
Foreign currency translation adjustments, tax:
Foreign currency translation adjustments	0	0	0	0
Foreign currency translation adjustments, after-tax:
Foreign currency translation adjustments	(14)	4	(47)	32
Deferred losses on hedge contracts, pre-tax:
Current deferrals, pre-tax	1	7	(6)	3
Reclassification adjustments, pre-tax	(1)	2	(2)	4
Deferred losses on hedge contracts, net, pre-tax	0	9	(8)	7
Deferred losses on hedge contracts, tax:
Current deferrals, tax (expense) benefit	0	(1)	2	0
Reclassification adjustments, tax (expense) benefit	1	0	2	(1)
Deferred losses on hedge contracts, net, tax (expense) benefit	1	(1)	4	(1)
Deferred losses on hedge contracts, after-tax:
Current deferrals, after-tax	1	6	(4)	3
Reclassification adjustments, after tax	0	2	0	3
Deferred losses on hedge contracts, net, after-tax	1	8	(4)	6
Other comprehensive income (loss), pre-tax	(13)	14	(53)	40
Other comprehensive income (loss), tax (expense) benefit	1	(2)	4	(2)
Other comprehensive income (loss)	$ (12)	$ 12	$ (49)	$ 38

Segment Information - Narrative

Segment Information - Narrative (Details)	6 Months Ended
	Jun. 29, 2024 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
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Revenues
Total revenues	$ 3,527	$ 3,424	$ 6,662	$ 6,448
Reconciliation of segment profit to income from continuing operations before income taxes
Interest expense, net for Manufacturing group	(25)	(19)	(45)	(39)
Special charges	(13)	0	(27)	0
Non-service components of pension and postretirement income, net	66	59	132	118
Income from continuing operations before income taxes	323	329	560	556
Operating Segment
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	343	352	633	611
Reconciling Items
Reconciliation of segment profit to income from continuing operations before income taxes
Corporate expenses and other, net	(17)	(21)	(79)	(60)
LIFO inventory provision	(27)	(35)	(47)	(60)
Intangible asset amortization	(9)	(10)	(17)	(20)
Special charges	(13)	0	(27)	0
Non-service components of pension and postretirement income, net	66	59	132	118
Textron Aviation
Revenues
Total revenues	1,475	1,362	2,663	2,511
Bell
Revenues
Total revenues	794	701	1,521	1,322
Textron Systems
Revenues
Total revenues	323	306	629	612
Industrial
Revenues
Total revenues	914	1,026	1,806	1,958
Textron eAviation
Revenues
Total revenues	9	11	16	15
Finance
Revenues
Total revenues	12	18	27	30
Manufacturing group | Reconciling Items
Reconciliation of segment profit to income from continuing operations before income taxes
Interest expense, net for Manufacturing group	(20)	(16)	(35)	(33)
Manufacturing group | Textron Aviation | Operating Segment
Revenues
Total revenues	1,475	1,362	2,663	2,511
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	195	171	338	296
Manufacturing group | Bell | Operating Segment
Revenues
Total revenues	794	701	1,521	1,322
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	82	65	162	125
Manufacturing group | Textron Systems | Operating Segment
Revenues
Total revenues	323	306	629	612
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	35	37	73	71
Manufacturing group | Industrial | Operating Segment
Revenues
Total revenues	914	1,026	1,806	1,958
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	42	79	71	120
Manufacturing group | Textron eAviation | Operating Segment
Revenues
Total revenues	9	11	16	15
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	(18)	(12)	(36)	(21)
Finance group
Revenues
Total revenues	12	18	27	30
Finance group | Finance | Operating Segment
Revenues
Total revenues	12	18	27	30
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	$ 7	$ 12	$ 25	$ 20

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 3,527	$ 3,424	$ 6,662	$ 6,448
United States
Disaggregation of Revenue [Line Items]
Revenues	2,575	2,318	4,826	4,388
Europe
Disaggregation of Revenue [Line Items]
Revenues	303	417	606	722
Other international
Disaggregation of Revenue [Line Items]
Revenues	649	689	1,230	1,338
Commercial
Disaggregation of Revenue [Line Items]
Revenues	2,639	2,745	5,011	5,101
U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	888	679	1,651	1,347
Textron Aviation
Disaggregation of Revenue [Line Items]
Revenues	1,475	1,362	2,663	2,511
Textron Aviation | United States
Disaggregation of Revenue [Line Items]
Revenues	1,147	933	2,097	1,769
Textron Aviation | Europe
Disaggregation of Revenue [Line Items]
Revenues	91	159	153	225
Textron Aviation | Other international
Disaggregation of Revenue [Line Items]
Revenues	237	270	413	517
Textron Aviation | Commercial
Disaggregation of Revenue [Line Items]
Revenues	1,343	1,321	2,498	2,428
Textron Aviation | U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	132	41	165	83
Textron Aviation | Aircraft
Disaggregation of Revenue [Line Items]
Revenues	975	920	1,707	1,638
Textron Aviation | Aftermarket parts and services
Disaggregation of Revenue [Line Items]
Revenues	500	442	956	873
Bell
Disaggregation of Revenue [Line Items]
Revenues	794	701	1,521	1,322
Bell | United States
Disaggregation of Revenue [Line Items]
Revenues	639	534	1,198	994
Bell | Europe
Disaggregation of Revenue [Line Items]
Revenues	14	35	37	54
Bell | Other international
Disaggregation of Revenue [Line Items]
Revenues	141	132	286	274
Bell | Commercial
Disaggregation of Revenue [Line Items]
Revenues	288	301	527	533
Bell | U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	506	400	994	789
Bell | Military aircraft and support programs
Disaggregation of Revenue [Line Items]
Revenues	499	395	979	780
Bell | Commercial helicopters, parts and services
Disaggregation of Revenue [Line Items]
Revenues	295	306	542	542
Textron Systems
Disaggregation of Revenue [Line Items]
Revenues	323	306	629	612
Textron Systems | United States
Disaggregation of Revenue [Line Items]
Revenues	283	274	557	549
Textron Systems | Europe
Disaggregation of Revenue [Line Items]
Revenues	12	17	25	31
Textron Systems | Other international
Disaggregation of Revenue [Line Items]
Revenues	28	15	47	32
Textron Systems | Commercial
Disaggregation of Revenue [Line Items]
Revenues	79	70	151	144
Textron Systems | U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	244	236	478	468
Industrial
Disaggregation of Revenue [Line Items]
Revenues	914	1,026	1,806	1,958
Industrial | United States
Disaggregation of Revenue [Line Items]
Revenues	497	566	957	1,060
Industrial | Europe
Disaggregation of Revenue [Line Items]
Revenues	183	201	381	405
Industrial | Other international
Disaggregation of Revenue [Line Items]
Revenues	234	259	468	493
Industrial | Commercial
Disaggregation of Revenue [Line Items]
Revenues	908	1,024	1,792	1,951
Industrial | U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	6	2	14	7
Industrial | Fuel systems and functional components
Disaggregation of Revenue [Line Items]
Revenues	492	523	980	1,011
Industrial | Specialized vehicles
Disaggregation of Revenue [Line Items]
Revenues	422	503	826	947
Textron eAviation
Disaggregation of Revenue [Line Items]
Revenues	9	11	16	15
Textron eAviation | United States
Disaggregation of Revenue [Line Items]
Revenues	5	7	9	8
Textron eAviation | Europe
Disaggregation of Revenue [Line Items]
Revenues	3	4	5	6
Textron eAviation | Other international
Disaggregation of Revenue [Line Items]
Revenues	1	0	2	1
Textron eAviation | Commercial
Disaggregation of Revenue [Line Items]
Revenues	9	11	16	15
Textron eAviation | U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Finance
Disaggregation of Revenue [Line Items]
Revenues	12	18	27	30
Finance | United States
Disaggregation of Revenue [Line Items]
Revenues	4	4	8	8
Finance | Europe
Disaggregation of Revenue [Line Items]
Revenues	0	1	5	1
Finance | Other international
Disaggregation of Revenue [Line Items]
Revenues	8	13	14	21
Finance | Commercial
Disaggregation of Revenue [Line Items]
Revenues	12	18	27	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	Jun. 29, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 13.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-06-30
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percent	82%
Remaining performance obligation, expected timing of satisfaction	18 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-04
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percent	16%
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
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023	Dec. 30, 2023
Contract Assets and Liabilities
Contract assets	$ 351		$ 351		$ 513
Contract liabilities	1,900		1,900		$ 1,800
Revenue recognized included in contract liabilities	$ 333	$ 380	$ 660	$ 696

Retirement Plans (Details)

Retirement Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Pension Benefits
Net periodic benefit income
Service cost	$ 17	$ 16	$ 34	$ 33
Interest cost	91	91	181	182
Expected return on plan assets	(159)	(153)	(318)	(305)
Amortization of net actuarial loss	1	1	2	1
Amortization of prior service cost	3	3	5	6
Net periodic benefit income	(47)	(42)	(96)	(83)
Pension Benefits | United States
Net periodic benefit income
Cost associated with the defined contribution component	2	2	6	6
Postretirement Benefits Other Than Pensions
Net periodic benefit income
Service cost	1	1	1	1
Interest cost	1	2	3	4
Amortization of net actuarial loss	(2)	(2)	(4)	(4)
Amortization of prior service cost	(1)	(1)	(1)	(2)
Net periodic benefit income	$ (1)	$ 0	$ (1)	$ (1)

Special Charges - Narrative (De

Special Charges - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended			9 Months Ended
	Jun. 29, 2024 USD ($)	Jul. 01, 2023 USD ($)	Dec. 28, 2024 USD ($) position	Jun. 29, 2024 USD ($)	Jul. 01, 2023 USD ($)	Jun. 29, 2024 USD ($)
Special Charges [Line Items]
Special charges	$ 13	$ 0		$ 27	$ 0
Future cash outlays				29
2023 Restructuring Plan
Special Charges [Line Items]
Special charges	13			27		$ 153
Severance costs				26		65
Asset impairment charges				1
2023 Restructuring Plan | Forecast
Special Charges [Line Items]
Number of positions expected to be eliminated | position			1,500
Percentage of workforce reduction			4%
2023 Restructuring Plan | Industrial
Special Charges [Line Items]
Special charges				15
Severance costs						35
Asset impairment charges						88
2023 Restructuring Plan | Textron Systems
Special Charges [Line Items]
Special charges				7
Severance costs						12
2023 Restructuring Plan | Bell
Special Charges [Line Items]
Special charges				5
Severance costs						18
2023 Restructuring Plan | Minimum
Special Charges [Line Items]
Additional expected costs	12			12		12
2023 Restructuring Plan | Minimum | Forecast
Special Charges [Line Items]
Future cash outlays			$ 50
2023 Restructuring Plan | Maximum
Special Charges [Line Items]
Additional expected costs	$ 17			$ 17		$ 17
2023 Restructuring Plan | Maximum | Forecast
Special Charges [Line Items]
Future cash outlays			$ 55

Special Charges - Restructuring

Special Charges - Restructuring Reserve Activity (Details) $ in Millions	6 Months Ended
	Jun. 29, 2024 USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance	$ 47
Restructuring charges	26
Cash paid	(29)
Foreign currency translation	(1)
Ending balance	43
Severance Costs
Restructuring Reserve [Roll Forward]
Beginning balance	42
Restructuring charges	26
Cash paid	(29)
Foreign currency translation	(1)
Ending balance	38
Contract Terminations and Other
Restructuring Reserve [Roll Forward]
Beginning balance	5
Restructuring charges	0
Cash paid	0
Foreign currency translation	0
Ending balance	$ 5

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	19.50%	20.10%	17.70%	18.30%
U.S. federal statutory income tax rate	21%		21%	21%
Tax provision related to withholding taxes due to planned repatriation of cash				$ 7