Textron (TXT) 10-Q 29 Apr 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Apr. 04, 2015	Apr. 17, 2015
Document and Entity Information
Entity Registrant Name	TEXTRON INC
Entity Central Index Key	217346
Document Type	10-Q
Document Period End Date	4-Apr-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-1
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		277,644,419
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended
In Millions, except Per Share data, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014
Revenues
Manufacturing revenues	$3,051	$2,818
Finance revenues	22	29
Total revenues	3,073	2,847
Costs and expenses
Cost of sales	2,509	2,357
Selling and administrative expense	337	302
Interest expense	43	47
Acquisition and restructuring costs		16
Total costs and expenses	2,889	2,722
Income from continuing operations before income taxes	184	125
Income tax expense	56	38
Income from continuing operations	128	87
Loss from discontinued operations, net of income taxes		-2
Net income	$128	$85
Basic earnings per share
Continuing operations (in dollars per share)	$0.46	$0.31
Discontinued operations (in dollars per share)		($0.01)
Basic earnings per share (in dollars per share)	$0.46	$0.30
Diluted earnings per share
Continuing operations (in dollars per share)	$0.46	$0.31
Discontinued operations (in dollars per share)		($0.01)
Diluted earnings per share (in dollars per share)	$0.46	$0.30
Dividends per share
Common stock (in dollars per share)	$0.02	$0.02

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014
Consolidated Statements of Comprehensive Income
Net income	$128	$85
Other comprehensive (loss) income, net of tax:
Pension and postretirement benefits adjustments, net of reclassifications	24	18
Deferred gains/losses on hedge contracts, net of reclassifications	-12	-7
Foreign currency translation adjustments	-56	-6
Other comprehensive (loss) income	-44	5
Comprehensive income	$84	$90

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Apr. 04, 2015	Jan. 03, 2015
In Millions, except Share data in Thousands, unless otherwise specified
Assets
Cash and equivalents	$708	$822
Inventories	4,236	3,928
Finance receivables, net	1,203	1,238
Total assets	14,738	14,605
Liabilities
Total liabilities	10,348	10,333
Shareholders' equity
Common stock	36	36
Capital surplus	1,499	1,459
Treasury stock	-340	-340
Retained earnings	4,745	4,623
Accumulated other comprehensive loss	-1,550	-1,506
Total shareholders' equity	4,390	4,272
Total liabilities and shareholders' equity	14,738	14,605
Common shares outstanding	277,497	276,582
Manufacturing group
Assets
Cash and equivalents	561	731
Accounts receivable, net	1,133	1,035
Inventories	4,236	3,928
Other current assets	563	579
Total current assets	6,493	6,273
Property, plant and equipment, less accumulated depreciation and amortization of $3,720 and $3,685	2,460	2,497
Goodwill	2,013	2,027
Other assets	2,268	2,279
Total assets	13,234	13,076
Liabilities
Short-term debt and current portion of long-term debt	34	8
Accounts payable	1,130	1,014
Accrued liabilities	2,570	2,616
Total current liabilities	3,734	3,638
Other liabilities	2,548	2,587
Long-term debt	2,790	2,803
Total liabilities	9,072	9,028
Finance group
Assets
Cash and equivalents	147	91
Finance receivables, net	1,203	1,238
Other assets	154	200
Total assets	1,504	1,529
Liabilities
Other liabilities	255	242
Debt	1,021	1,063
Total liabilities	$1,276	$1,305

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Apr. 04, 2015	Jan. 03, 2015
In Millions, unless otherwise specified
Consolidated Balance Sheets
Accumulated depreciation and amortization	$3,720	$3,685

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014
Cash flows from operating activities
Net income	$128	$85
Less: Loss from discontinued operations		-2
Income from continuing operations	128	87
Non-cash items:
Depreciation and amortization	110	98
Deferred income taxes	-7	-8
Other, net	32	31
Changes in assets and liabilities:
Accounts receivable, net	-115	-49
Inventories	-327	-180
Other assets	-45	-11
Accounts payable	127	-99
Accrued and other liabilities	-63	25
Income taxes, net	95	31
Pension, net	17	13
Captive finance receivables, net	31	34
Other operating activities, net	-2	2
Net cash provided by (used in) operating activities of continuing operations	-19	-26
Net cash used in operating activities of discontinued operations	-2	-1
Net cash provided by (used in) operating activities	-21	-27
Cash flows from investing activities
Capital expenditures	-79	-66
Net cash used in acquisitions	-32	-1,489
Finance receivables repaid	31	33
Other investing activities, net	23	2
Net cash provided by (used in) investing activities	-57	-1,520
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	-70	-62
Increase in short-term debt	25	184
Proceeds from long-term debt	9	1,131
Purchases of Textron common stock		-150
Dividends paid	-6	-6
Other financing activities, net	11	19
Net cash provided by (used in) financing activities	-31	1,116
Effect of exchange rate changes on cash and equivalents	-5
Net increase (decrease) in cash and equivalents	-114	-431
Cash and equivalents at beginning of period	822	1,211
Cash and equivalents at end of period	708	780
Manufacturing group
Cash flows from operating activities
Net income	124	82
Less: Loss from discontinued operations		-2
Income from continuing operations	124	84
Non-cash items:
Depreciation and amortization	108	95
Deferred income taxes	-3	-4
Other, net	28	27
Changes in assets and liabilities:
Accounts receivable, net	-115	-49
Inventories	-327	-180
Other assets	-51	-11
Accounts payable	127	-99
Accrued and other liabilities	-54	34
Income taxes, net	81	26
Pension, net	17	13
Other operating activities, net	-2
Net cash provided by (used in) operating activities of continuing operations	-67	-64
Net cash used in operating activities of discontinued operations	-2	-1
Net cash provided by (used in) operating activities	-69	-65
Cash flows from investing activities
Capital expenditures	-79	-66
Net cash used in acquisitions	-32	-1,489
Other investing activities, net	-6	-1
Net cash provided by (used in) investing activities	-117	-1,556
Cash flows from financing activities
Increase in short-term debt	25	184
Proceeds from long-term debt		1,093
Purchases of Textron common stock		-150
Dividends paid	-6	-6
Other financing activities, net	2	19
Net cash provided by (used in) financing activities	21	1,140
Effect of exchange rate changes on cash and equivalents	-5
Net increase (decrease) in cash and equivalents	-170	-481
Cash and equivalents at beginning of period	731	1,163
Cash and equivalents at end of period	561	682
Finance group
Cash flows from operating activities
Net income	4	3
Income from continuing operations	4	3
Non-cash items:
Depreciation and amortization	2	3
Deferred income taxes	-4	-4
Other, net	4	4
Changes in assets and liabilities:
Other assets	6
Accrued and other liabilities	-9	-9
Income taxes, net	14	5
Other operating activities, net		2
Net cash provided by (used in) operating activities of continuing operations	17	4
Net cash provided by (used in) operating activities	17	4
Cash flows from investing activities
Finance receivables repaid	112	108
Finance receivables originated	-50	-41
Other investing activities, net	29	3
Net cash provided by (used in) investing activities	91	70
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	-70	-62
Proceeds from long-term debt	9	38
Other financing activities, net	9
Net cash provided by (used in) financing activities	-52	-24
Net increase (decrease) in cash and equivalents	56	50
Cash and equivalents at beginning of period	91	48
Cash and equivalents at end of period	$147	$98

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Apr. 04, 2015
Basis of Presentation
Basis of Presentation
	Note 1.  Basis of Presentation
	Our Consolidated Financial Statements include the accounts of Textron Inc. (Textron) and its majority-owned subsidiaries.  We have prepared these unaudited consolidated financial statements in accordance with accounting principles generally accepted in the U.S. for interim financial information.  Accordingly, these interim financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements.  The consolidated interim financial statements included in this quarterly report should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 3, 2015.  In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented.  The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.
	Our financings are conducted through two separate borrowing groups.  The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems and Industrial segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance.  To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.  All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail and wholesale 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.
	During 2015 and 2014, we changed our estimates of revenues and costs on certain long-term contracts that are accounted for under the percentage-of-completion method of accounting.  These changes in estimates increased income from continuing operations before income taxes in the first quarter of 2015 and 2014 by $18 million and $21 million, respectively, ($11 million and $13 million after tax, or $0.04 and $0.05 per diluted share, respectively).  For the first quarter of 2015 and 2014, the gross favorable program profit adjustments totaled $33 million and $24 million, respectively, and the gross unfavorable program profit adjustments totaled $15 million and $3 million, respectively.
	Recently Issued Accounting Standards
	In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” that outlines a comprehensive five-step revenue recognition model based on the principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.  Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption. This ASU is effective for our company at the beginning of fiscal 2017; early adoption is not permitted. We are currently evaluating the new guidance to determine the impact it is expected to have on our consolidated financial statements, along with the transition method we expect to utilize.

Business_Acquisitions

Business Acquisitions	3 Months Ended
	Apr. 04, 2015
Business Acquisitions
Business Acquisitions
	Note 2.  Business Acquisitions
	2014 Beechcraft Acquisition
	On March 14, 2014, we completed the acquisition of all of the outstanding equity interests in Beech Holdings, LLC, which included Beechcraft Corporation and other subsidiaries, (collectively “Beechcraft”), for an aggregate cash payment of $1.5 billion. The consideration paid for this business was allocated to the assets acquired and liabilities assumed based on their fair values at the acquisition date.  We finalized the purchase accounting for Beechcraft in the first quarter of 2015 and there were no adjustments to the purchase price allocation disclosed in Note 2 of our 2014 Annual Report on Form 10-K. The operating results of Beechcraft have been included in the Consolidated Statements of Operations since March 14, 2014. Beechcraft’s revenues totaled $101 million for the first quarter of 2014 and its earnings for this period were not significant.
	In connection with the integration of Beechcraft, we initiated a restructuring program in our Textron Aviation segment in the first quarter of 2014 to align the Cessna and Beechcraft businesses, reduce operating redundancies and maximize efficiencies. This restructuring program was substantially completed at the end of 2014.  During the first quarter of 2014, we recorded charges of $5 million related to these restructuring activities that were included in the Acquisition and restructuring costs line on the Consolidated Statements of Operations, along with $11 million of transaction costs.
	Pro-forma Results from 2014 Acquisitions
	During 2014, we made seven acquisitions in addition to the Beechcraft acquisition. The pro-forma results presented in the table below include consolidated information as if all of these 2014 acquisitions had been completed as of the beginning of the year prior to acquisition.
		Three Months Ended
	(In millions, except per share amounts)	April 4,		March 29,
		2015		2014
	Revenues	$	3,073	$	3,202
	Income from continuing operations, net of income taxes	131		112
	Diluted earnings per share from continuing operations	$	0.47	$	0.40
	Certain pro-forma adjustments were made to reflect the purchase price allocated to the acquired net assets of each business, including depreciation and intangible amortization expense resulting from the valuation of tangible and intangible assets, the amortization of inventory fair value step-up adjustments and the related tax effects.  In addition, the pro-forma results for the first quarter of 2014 exclude $16 million of Acquisition and restructuring costs related to the Beechcraft acquisition. The pro-forma data should not be considered indicative of the results that would have occurred if the acquisitions and related financing had been consummated at the beginning of the year prior to acquisition.

Retirement_Plans

Retirement Plans	3 Months Ended
	Apr. 04, 2015
Retirement Plans
Retirement Plans
	Note 3.  Retirement Plans
	We provide defined benefit pension plans and other postretirement benefits to eligible employees.  The components of net periodic benefit cost for these plans are as follows:
		Pension Benefits				Postretirement Benefits
						Other Than Pensions
	(In millions)	April 4,		March 29,		April 4,		March 29,
		2015		2014		2015		2014
	Three Months Ended
	Service cost	$	30	$	27	$	1	$	1
	Interest cost	81		79		4		5
	Expected return on plan assets	-121		-111		—		—
	Amortization of prior service cost (credit)	4		4		-6		-6
	Amortization of net actuarial loss	39		28		—		1
	Net periodic benefit cost (credit)	$	33	$	27	$	-1	$	1

ShareBased_Compensation

Share-Based Compensation	3 Months Ended
	Apr. 04, 2015
Share-Based Compensation
Share-Based Compensation
	Note 4.  Share-Based Compensation
	Our share-based compensation plans provide stock options, restricted stock, restricted stock units, stock appreciation rights, performance stock awards and other awards.  Compensation expense included in net income for these plans is as follows:
		Three Months Ended
	(In millions)	April 4,		March 29,
		2015		2014
	Compensation expense	$	31	$	34
	Income tax benefit	-11		-12
	Total net compensation expense included in net income	$	20	$	22
	Stock Options
	Options to purchase our shares have a maximum term of ten years and generally vest ratably over a three-year period. The stock option compensation cost calculated under the fair value approach is recognized over the vesting period of the stock options.  We estimate the fair value of options granted on the date of grant using the Black-Scholes option-pricing model.  Expected volatilities are based on implied volatilities from traded options on our common stock, historical volatilities and other factors.  The expected term is based on historical option exercise data, which is adjusted to reflect any anticipated changes in expected behavior.
	The weighted-average fair value of options granted during the respective periods and the assumptions used in our option-pricing model for such grants are as follows:
		Three Months Ended
		April 4,		March 29,
		2015		2014
	Fair value of options at grant date	$	14.03	$	12.72
	Dividend yield	0.2%		0.2%
	Expected volatility	34.9%		34.5%
	Risk-free interest rate	1.5%		1.5%
	Expected term (in years)	4.8		5.0
	The stock option activity during the first quarter of 2015 is provided below:
	(Options in thousands)	Number of	Weighted-
		Options	Average
			Exercise
			Price
	Outstanding at beginning of period	8,637	$	29.99
	Granted	1,492	44.31
	Exercised	-452	-27.2
	Forfeited or expired	-137	-45.95
	Outstanding at end of period	9,540	$	32.13
	Exercisable at end of period	6,213	$	28.16
	At April 4, 2015, our outstanding options had an aggregate intrinsic value of $123 million and a weighted-average remaining contractual life of seven years.  Our exercisable options had an aggregate intrinsic value of $105 million and a weighted-average remaining contractual life of six years at April 4, 2015.  The total intrinsic value of options exercised was $8 million in both the first quarter of 2015 and 2014.
	Restricted Stock Units
	The activity for restricted stock units payable in both stock and cash during the first quarter of 2015 is provided below:
		Units Payable in Stock				Units Payable in Cash
	(Shares/Units in thousands)	Number of	Weighted-			Number of	Weighted-
		Shares	Average Grant			Units	Average Grant
			Date Fair Value				Date Fair Value
	Outstanding at beginning of year, nonvested	906	$	30.59		1,666	$	29.84
	Granted	167	44.31			364	44.31
	Vested	-139	-27.02			-405	-24.42
	Forfeited	—	—			-21	-32.27
	Outstanding at end of period, nonvested	934	$	33.53		1,604	$	34.47
	The fair value of the restricted stock awards that vested and/or amounts paid under these awards during the respective periods is as follows:
		Three Months Ended
	(In millions)	April 4,		March 29,
		2015		2014
	Fair value of awards vested	$	22	$	20
	Cash paid	18		19
	Performance Share Units
	The activity for our performance share units during the first quarter of 2015 is provided below:
	(Units in thousands)	Number of	Weighted-
		Units	Average Grant
			Date Fair Value
	Outstanding at beginning of year, nonvested	677	$	33.38
	Granted	257	44.31
	Outstanding at end of period, nonvested	934	$	36.39
	Cash paid under these awards totaled $17 million and $12 million during the first quarter of 2015 and 2014, respectively.

Earnings_Per_Share

Earnings Per Share	3 Months Ended
	Apr. 04, 2015
Earnings Per Share
Earnings Per Share
	Note 5.  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.  In addition, diluted EPS for the three months ended March 29, 2014 includes the impact of the initial delivery of shares under an Accelerated Share Repurchase agreement (ASR), which was settled in December 2014 as disclosed in Note 9 of our 2014 Annual Report on Form 10-K.
	The weighted-average shares outstanding for basic and diluted EPS are as follows:
		Three Months Ended
	(In thousands)	April 4,	March 29,
		2015	2014
	Basic weighted-average shares outstanding	277,902	281,094
	Dilutive effect of:
	Stock options	2,175	2,049
	ASR	—	184
	Diluted weighted-average shares outstanding	280,077	283,327
	Stock options to purchase 1 million shares of common stock outstanding are excluded from our calculation of diluted weighted average shares outstanding for both the first quarter of 2015 and 2014, as their effect would have been anti-dilutive.

Accounts_Receivable_and_Financ

Accounts Receivable and Finance Receivables	3 Months Ended
	Apr. 04, 2015
Accounts Receivable and Finance Receivables
Accounts Receivable and Finance Receivables
	Note 6.  Accounts Receivable and Finance Receivables
	Accounts Receivable
	Accounts receivable is composed of the following:
	(In millions)	April 4,		January 3,
		2015		2015
	Commercial	$	861	$	765
	U.S. Government contracts	303		300
		1,164		1,065
	Allowance for doubtful accounts	-31		-30
	Total	$	1,133	$	1,035
	We have unbillable receivables, primarily on U.S. Government contracts, that arise when the revenues we have appropriately recognized based on performance cannot be billed yet under terms of the contract.  Unbillable receivables within accounts receivable totaled $147 million at April 4, 2015 and $151 million at January 3, 2015.
	Finance Receivables
	Finance receivables are presented in the following table:
	(In millions)	April 4,		January 3,
		2015		2015
	Finance receivables *	$	1,256	$	1,289
	Allowance for losses	-53		-51
	Total finance receivables, net	$	1,203	$	1,238
	* Includes finance receivables held for sale of $35 million for both periods.
	Credit Quality Indicators and Nonaccrual Finance Receivables
	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.  Recognition of interest income is suspended for these accounts and all cash collections are used to reduce the net investment balance.  We resume the accrual of interest when the loan becomes contractually current through payment according to the original terms of the loan or, if a loan has been modified, following a period of performance under the terms of the modification, provided we conclude that collection of all principal and interest is no longer doubtful.  Previously suspended interest income is recognized at that time.  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.
	Finance receivables categorized based on the credit quality indicators discussed above are summarized as follows:
	(In millions)	April 4,		January 3,
		2015		2015
	Performing	$	1,037	$	1,062
	Watchlist	92		111
	Nonaccrual	92		81
	Total	$	1,221	$	1,254
	Nonaccrual as a percentage of finance receivables	7.53%		6.46%
	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 by delinquency aging category are summarized in the table below:
	(In millions)	April 4,		January 3,
		2015		2015
	Less than 31 days past due	$	1,075	$	1,080
	31-60 days past due	63		117
	61-90 days past due	43		28
	Over 90 days past due	40		29
	Total	$	1,221	$		1,254
	60 + days contractual delinquency as a percentage of finance receivables	6.80%		4.55%
	Impaired Loans
	On a quarterly basis, we evaluate individual finance receivables for impairment in non-homogeneous portfolios and larger balance accounts in homogeneous loan portfolios. 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 discussed 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. Interest income recognized on impaired loans was not significant in the first quarter of 2015 or 2014.
	A summary of impaired finance receivables, excluding leveraged leases, and the average recorded investment is provided below:
	(In millions)	April 4,		January 3,
		2015		2015
	Recorded investment:
	Impaired loans with related allowance for losses	$	74	$	68
	Impaired loans with no related allowance for losses		22		42
	Total	$	96	$	110
	Unpaid principal balance	$	101	$	115
	Allowance for losses on impaired loans	22		20
	Average recorded investment	103		115
	A summary of the allowance for losses on finance receivables that are evaluated on an individual basis and on a collective basis is provided below. The finance receivables included in the table below specifically exclude leveraged leases in accordance with generally accepted accounting principles.
	(In millions)	April 4,		January 3,
		2015		2015
	Allowance based on collective evaluation	$	31	$	31
	Allowance based on individual evaluation	22		20
	Finance receivables evaluated collectively	$	1,006	$	1,023
	Finance receivables evaluated individually	96		110
	Allowance for Losses
	We maintain an allowance for losses on finance receivables at a level considered adequate to cover inherent losses in the portfolio based on management’s evaluation.  For larger balance accounts specifically identified as impaired, a reserve is established based on comparing the expected future cash flows, discounted at the finance receivable’s effective interest rate, or the fair value of the underlying collateral if the finance receivable is collateral dependent, to its carrying amount. The expected future cash flows consider collateral value; financial performance and liquidity of our borrower; existence and financial strength of guarantors; estimated recovery costs, including legal expenses; and costs associated with the repossession and eventual disposal of collateral.  When there is a range of potential outcomes, we perform multiple discounted cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence.  The evaluation of our portfolio is inherently subjective, as it requires estimates, including the amount and timing of future cash flows expected to be received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual results.  While our analysis is specific to each individual account, critical factors included in this analysis include industry valuation guides, age and physical condition of the collateral, payment history and existence and financial strength of guarantors.
	We also establish an allowance for losses to cover probable but specifically unknown losses existing in the portfolio. This allowance is established as a percentage of non-recourse finance receivables, which have not been identified as requiring specific reserves. The percentage is based on a combination of factors, including historical loss experience, current delinquency and default trends, collateral values and both general economic and specific industry trends. Finance receivables are charged off at the earlier of the date the collateral is repossessed or when no payment has been received for six months, unless management deems the receivable collectible.
	A rollforward of the allowance for losses on finance receivables is provided below:
	Three Months Ended
(In millions)	April 4,		March 29,
	2015		2014
Balance at the beginning of period	$	51	$	55
Provision for losses	1		4
Charge-offs	—		-6
Recoveries	1		1
Balance at the end of period	$	53	$	54

Inventories

Inventories	3 Months Ended
	Apr. 04, 2015
Inventories
Inventories
	Note 7.  Inventories
	Inventories are composed of the following:
	(In millions)	April 4,		January 3,
		2015		2015
	Finished goods	$	1,826	$	1,582
	Work in process	2,728		2,683
	Raw materials and components	553		546
		5,107		4,811
	Progress/milestone payments	-871		-883
	Total	$	4,236	$	3,928

Accrued_Liabilities

Accrued Liabilities	3 Months Ended
	Apr. 04, 2015
Accrued Liabilities
Accrued Liabilities
	Note 8.  Accrued Liabilities
	We provide limited warranty and product maintenance programs, including parts and labor, for certain products for periods ranging from one to five years.  Changes in our warranty and product maintenance contract liability are as follows:
		Three Months Ended
	(In millions)	April 4,		March 29,
		2015		2014
	Accrual at the beginning of period	$	281	$	223
	Provision	74		70
	Settlements	-82		-69
	Acquisitions	4		56
	Adjustments*	—		-4
	Accrual at the end of period	$	277	$	276
	* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Derivative_Instruments_and_Fai

Derivative Instruments and Fair Value Measurements	3 Months Ended
	Apr. 04, 2015
Derivative Instruments and Fair Value Measurements
Derivative Instruments and Fair Value Measurements
	Note 9.  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 utilize foreign currency exchange contracts to manage this volatility.  Our foreign currency exchange contracts are measured at fair value using the market method valuation technique.  The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers.  These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions so they are classified as Level 2.  At April 4, 2015 and January 3, 2015, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $558 million and $696 million, respectively.  At April 4, 2015, the fair value amounts of our foreign currency exchange contracts were a $25 million asset and a $48 million liability.  At January 3, 2015, the fair value amounts of our foreign currency exchange contracts were a $16 million asset and a $26 million liability.
	We primarily utilize forward exchange contracts which have maturities of no more than three years.  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.  At April 4, 2015, we had a net deferred loss of $25 million in Accumulated other comprehensive loss related to these cash flow hedges.  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.
	We hedge our net investment position in major currencies and generate foreign currency interest payments that offset other transactional exposures in these currencies. To accomplish this, we borrow directly in foreign currency and designate a portion of foreign currency debt as a hedge of a net investment. We record changes in the fair value of these contracts in other comprehensive income to the extent they are effective as cash flow hedges.  Currency effects on the effective portion of these hedges, which are reflected in the foreign currency translation adjustments within Accumulated other comprehensive loss, were not significant in the periods presented.
	Assets Recorded at Fair Value on a Nonrecurring Basis
	During the periods ended April 4, 2015 and January 3, 2015, the Finance group’s impaired nonaccrual finance receivables of $52 million and $49 million, respectively, were measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3). Impaired nonaccrual finance receivables represent assets recorded at fair value on a nonrecurring basis since the measurement of required reserves on our impaired finance receivables is significantly dependent on the fair value of the underlying collateral.  For impaired nonaccrual finance receivables secured by aviation assets, the fair values of collateral are determined primarily based on the use of industry pricing guides. Fair value measurements recorded on impaired finance receivables resulted in charges to provision for loan losses totaling $3 million and $5 million for the three months ended April 4, 2015 and March 29, 2014, respectively.
	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:
		4-Apr-15				3-Jan-15
	(In millions)	Carrying		Estimated		Carrying		Estimated
		Value		Fair Value		Value		Fair Value
	Manufacturing group
	Long-term debt, excluding leases	$	-2,731	$	-2,959	$	-2,742	$	-2,944
	Finance group
	Finance receivables, excluding leases	963		988		1,004		1,021
	Debt	-1,021		-1,013		-1,063		-1,051
	Fair value for the Manufacturing group debt is determined using market observable data for similar transactions (Level 2).  At April 4, 2015 and January 3, 2015, approximately 74% and 75%, respectively, of the fair value of term debt for the Finance group was determined based on discounted cash flow analyses using observable market inputs from debt with similar duration, subordination and credit default expectations (Level 2). The remaining Finance group debt was determined based on observable market transactions (Level 1). 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.

Accumulated_Other_Comprehensiv

Accumulated Other Comprehensive Loss and Other Comprehensive Income	3 Months Ended
	Apr. 04, 2015
Accumulated Other Comprehensive Loss and Other Comprehensive Income
Accumulated Other Comprehensive Loss and Other Comprehensive Income
	Note 10.  Accumulated Other Comprehensive Loss and Other Comprehensive Income
	The components of Accumulated Other Comprehensive Loss are presented below:
	(In millions)	Pension and		Deferred		Foreign		Accumulated
		Postretirement		Gains/Losses		Currency		Other
		Benefit		on Hedge		Translation		Comprehensive
		Adjustments		Contracts		Adjustments		Loss
	For the three months ended April 4, 2015
	Beginning balance	$	-1,511	$	-13	$	18	$	-1,506
	Other comprehensive loss before reclassifications	—		-16		-56		-72
	Reclassified from Accumulated other comprehensive loss	24		4		—		28
	Other comprehensive income (loss)	24		-12		-56		-44
	Ending balance	$	-1,487	$	-25	$	-38	$	-1,550
	For the three months ended March 29, 2014
	Beginning balance	$	-1,110	$	-10	$	93	$	-1,027
	Other comprehensive loss before reclassifications	—		-9		-6		-15
	Reclassified from Accumulated other comprehensive loss	18		2		—		20
	Other comprehensive income (loss)	18		-7		-6		5
	Ending balance	$	-1,092	$	-17	$	87	$	-1,022
	The before and after-tax components of other comprehensive income are presented below:
	(In millions)		Pre-Tax		Tax		After-Tax
			Amount		(Expense)		Amount
					Benefit
	For the three months ended April 4, 2015
	Pension and postretirement benefits adjustments:
	Amortization of net actuarial loss*		$	39	$	-14	$	25
	Amortization of prior service credit*		-2		1		-1
	Pension and postretirement benefits adjustments, net		37		-13		24
	Deferred gains/losses on hedge contracts:
	Current deferrals		-21		5		-16
	Reclassification adjustments		6		-2		4
	Deferred gains/losses on hedge contracts, net		-15		3		-12
	Foreign currency translation adjustments		-52		-4		-56
	Total		$	-30	$	-14	$	-44
	For the three months ended March 29, 2014
	Pension and postretirement benefits adjustments:
	Amortization of net actuarial loss*		$	29	$	-10	$	19
	Amortization of prior service credit*		-2		1		-1
	Pension and postretirement benefits adjustments, net		27		-9		18
	Deferred gains/losses on hedge contracts:
	Current deferrals		-11		2		-9
	Reclassification adjustments		2		—		2
	Deferred gains/losses on hedge contracts, net		-9		2		-7
	Foreign currency translation adjustments		-7		1		-6
	Total		$	11	$	-6	$	5
	*These components of other comprehensive income are included in the computation of net periodic pension cost.  See Note 11 of our 2014 Annual Report on Form 10-K for additional information.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 04, 2015
Commitments and Contingencies
Commitments and Contingencies
	Note 11.  Commitments and Contingencies
	We are subject to legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; production partners; product liability; patent and trademark infringement; employment disputes; and environmental, safety and health matters.  Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations.

Segment_Information

Segment Information	3 Months Ended
	Apr. 04, 2015
Segment Information
Segment Information
	Note 12.  Segment Information
	We operate in, and report financial information for, the following five business segments: Textron Aviation, Bell, Textron Systems, Industrial and Finance.  Segment profit is an important measure used for evaluating performance and for decision-making purposes.  Segment profit for the manufacturing segments excludes interest expense, certain corporate expenses and acquisition and restructuring costs related to the Beechcraft acquisition.  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 as follows:
		Three Months Ended
	(In millions)	April 4,		March 29,
		2015		2014
	Revenues
	Textron Aviation	$	1,051	$	785
	Bell	813		873
	Textron Systems	315		363
	Industrial	872		797
	Finance	22		29
	Total revenues	$	3,073	$	2,847
	Segment Profit
	Textron Aviation	$	67	$	14
	Bell	76		96
	Textron Systems	28		39
	Industrial	82		66
	Finance	6		4
	Segment profit	259		219
	Corporate expenses and other, net	-42		-43
	Interest expense, net for Manufacturing group	-33		-35
	Acquisition and restructuring costs	—		-16
	Income from continuing operations before income taxes	$	184	$	125

Basis_of_Presentation_Policies

Basis of Presentation (Policies)	3 Months Ended
	Apr. 04, 2015
Basis of Presentation
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.
	During 2015 and 2014, we changed our estimates of revenues and costs on certain long-term contracts that are accounted for under the percentage-of-completion method of accounting.  These changes in estimates increased income from continuing operations before income taxes in the first quarter of 2015 and 2014 by $18 million and $21 million, respectively, ($11 million and $13 million after tax, or $0.04 and $0.05 per diluted share, respectively).  For the first quarter of 2015 and 2014, the gross favorable program profit adjustments totaled $33 million and $24 million, respectively, and the gross unfavorable program profit adjustments totaled $15 million and $3 million, respectively.
Recently Issued Accounting Standards
	Recently Issued Accounting Standards
	In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” that outlines a comprehensive five-step revenue recognition model based on the principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.  Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption. This ASU is effective for our company at the beginning of fiscal 2017; early adoption is not permitted. We are currently evaluating the new guidance to determine the impact it is expected to have on our consolidated financial statements, along with the transition method we expect to utilize.

Business_Acquisitions_Tables

Business Acquisitions (Tables)	3 Months Ended
	Apr. 04, 2015
Business Acquisitions
Business acquisition pro-forma information
		Three Months Ended
	(In millions, except per share amounts)	April 4,		March 29,
		2015		2014
	Revenues	$	3,073	$	3,202
	Income from continuing operations, net of income taxes	131		112
	Diluted earnings per share from continuing operations	$	0.47	$	0.40

Retirement_Plans_Tables

Retirement Plans (Tables)	3 Months Ended
	Apr. 04, 2015
Retirement Plans
Components of net periodic benefit cost
		Pension Benefits				Postretirement Benefits
						Other Than Pensions
	(In millions)	April 4,		March 29,		April 4,		March 29,
		2015		2014		2015		2014
	Three Months Ended
	Service cost	$	30	$	27	$	1	$	1
	Interest cost	81		79		4		5
	Expected return on plan assets	-121		-111		—		—
	Amortization of prior service cost (credit)	4		4		-6		-6
	Amortization of net actuarial loss	39		28		—		1
	Net periodic benefit cost (credit)	$	33	$	27	$	-1	$	1

ShareBased_Compensation_Tables

Share-Based Compensation (Tables)	3 Months Ended
	Apr. 04, 2015
Share-Based Compensation
Compensation expense included in net income
		Three Months Ended
	(In millions)	April 4,		March 29,
		2015		2014
	Compensation expense	$	31	$	34
	Income tax benefit	-11		-12
	Total net compensation expense included in net income	$	20	$	22
Weighted-average fair value of stock options and assumptions used in option-pricing model
		Three Months Ended
		April 4,		March 29,
		2015		2014
	Fair value of options at grant date	$	14.03	$	12.72
	Dividend yield	0.2%		0.2%
	Expected volatility	34.9%		34.5%
	Risk-free interest rate	1.5%		1.5%
	Expected term (in years)	4.8		5.0
Stock option activity
	The stock option activity during the first quarter of 2015 is provided below:
	(Options in thousands)	Number of	Weighted-
		Options	Average
			Exercise
			Price
	Outstanding at beginning of period	8,637	$	29.99
	Granted	1,492	44.31
	Exercised	-452	-27.2
	Forfeited or expired	-137	-45.95
	Outstanding at end of period	9,540	$	32.13
	Exercisable at end of period	6,213	$	28.16
Restricted Stock Units
Share-Based Compensation
Unit period activity, Nonvested, Weighted average grant date fair value
	The activity for restricted stock units payable in both stock and cash during the first quarter of 2015 is provided below:
		Units Payable in Stock				Units Payable in Cash
	(Shares/Units in thousands)	Number of	Weighted-			Number of	Weighted-
		Shares	Average Grant			Units	Average Grant
			Date Fair Value				Date Fair Value
	Outstanding at beginning of year, nonvested	906	$	30.59		1,666	$	29.84
	Granted	167	44.31			364	44.31
	Vested	-139	-27.02			-405	-24.42
	Forfeited	—	—			-21	-32.27
	Outstanding at end of period, nonvested	934	$	33.53		1,604	$	34.47
Fair value of awards vested and cash paid during respective periods
		Three Months Ended
	(In millions)	April 4,		March 29,
		2015		2014
	Fair value of awards vested	$	22	$	20
	Cash paid	18		19
Performance Share Units
Share-Based Compensation
Unit period activity, Nonvested, Weighted average grant date fair value	The activity for our performance share units during the first quarter of 2015 is provided below:
	(Units in thousands)	Number of	Weighted-
		Units	Average Grant
			Date Fair Value
	Outstanding at beginning of year, nonvested	677	$	33.38
	Granted	257	44.31
	Outstanding at end of period, nonvested	934	$	36.39

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	3 Months Ended
	Apr. 04, 2015
Earnings Per Share
Weighted-average shares outstanding for basic and diluted EPS
		Three Months Ended
	(In thousands)	April 4,	March 29,
		2015	2014
	Basic weighted-average shares outstanding	277,902	281,094
	Dilutive effect of:
	Stock options	2,175	2,049
	ASR	—	184
	Diluted weighted-average shares outstanding	280,077	283,327

Accounts_Receivable_and_Financ1

Accounts Receivable and Finance Receivables (Tables)	3 Months Ended
	Apr. 04, 2015
Accounts Receivable and Finance Receivables
Accounts Receivable
	(In millions)	April 4,		January 3,
		2015		2015
	Commercial	$	861	$	765
	U.S. Government contracts	303		300
		1,164		1,065
	Allowance for doubtful accounts	-31		-30
	Total	$	1,133	$	1,035
Finance Receivables
	(In millions)	April 4,		January 3,
		2015		2015
	Finance receivables *	$	1,256	$	1,289
	Allowance for losses	-53		-51
	Total finance receivables, net	$	1,203	$	1,238
	* Includes finance receivables held for sale of $35 million for both periods.
Finance receivables categorized based on credit quality indicators
	(In millions)	April 4,		January 3,
		2015		2015
	Performing	$	1,037	$	1,062
	Watchlist	92		111
	Nonaccrual	92		81
	Total	$	1,221	$	1,254
	Nonaccrual as a percentage of finance receivables	7.53%		6.46%
Finance receivables by delinquency aging
	(In millions)	April 4,		January 3,
		2015		2015
	Less than 31 days past due	$	1,075	$	1,080
	31-60 days past due	63		117
	61-90 days past due	43		28
	Over 90 days past due	40		29
	Total	$	1,221	$		1,254
	60 + days contractual delinquency as a percentage of finance receivables	6.80%		4.55%
Summary of impaired finance receivables, excluding leveraged leases, and the average recorded investment
	(In millions)	April 4,		January 3,
		2015		2015
	Recorded investment:
	Impaired loans with related allowance for losses	$	74	$	68
	Impaired loans with no related allowance for losses		22		42
	Total	$	96	$	110
	Unpaid principal balance	$	101	$	115
	Allowance for losses on impaired loans	22		20
	Average recorded investment	103		115
Allowance for losses on finance receivables on an individual and on a collective basis
	(In millions)	April 4,		January 3,
		2015		2015
	Allowance based on collective evaluation	$	31	$	31
	Allowance based on individual evaluation	22		20
	Finance receivables evaluated collectively	$	1,006	$	1,023
	Finance receivables evaluated individually	96		110
Allowance for Losses
		Three Months Ended
	(In millions)	April 4,		March 29,
		2015		2014
	Balance at the beginning of period	$	51	$	55
	Provision for losses	1		4
	Charge-offs	—		-6
	Recoveries	1		1
	Balance at the end of period	$	53	$	54

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Apr. 04, 2015
Inventories
Inventories
	(In millions)	April 4,		January 3,
		2015		2015
	Finished goods	$	1,826	$	1,582
	Work in process	2,728		2,683
	Raw materials and components	553		546
		5,107		4,811
	Progress/milestone payments	-871		-883
	Total	$	4,236	$	3,928

Accrued_Liabilities_Tables

Accrued Liabilities (Tables)	3 Months Ended
	Apr. 04, 2015
Accrued Liabilities
Changes in warranty and product maintenance contract liability
		Three Months Ended
	(In millions)	April 4,		March 29,
		2015		2014
	Accrual at the beginning of period	$	281	$	223
	Provision	74		70
	Settlements	-82		-69
	Acquisitions	4		56
	Adjustments*	—		-4
	Accrual at the end of period	$	277	$	276
	* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Derivative_Instruments_and_Fai1

Derivative Instruments and Fair Value Measurements (Tables)	3 Months Ended
	Apr. 04, 2015
Derivative Instruments and Fair Value Measurements
Carrying value and estimated fair values of financial instruments
		4-Apr-15				3-Jan-15
	(In millions)	Carrying		Estimated		Carrying		Estimated
		Value		Fair Value		Value		Fair Value
	Manufacturing group
	Long-term debt, excluding leases	$	-2,731	$	-2,959	$	-2,742	$	-2,944
	Finance group
	Finance receivables, excluding leases	963		988		1,004		1,021
	Debt	-1,021		-1,013		-1,063		-1,051

Accumulated_Other_Comprehensiv1

Accumulated Other Comprehensive Loss and Other Comprehensive Income (Tables)	3 Months Ended
	Apr. 04, 2015
Accumulated Other Comprehensive Loss and Other Comprehensive Income
Schedule of components of Accumulated Other Comprehensive Loss
	(In millions)	Pension and		Deferred		Foreign		Accumulated
		Postretirement		Gains/Losses		Currency		Other
		Benefit		on Hedge		Translation		Comprehensive
		Adjustments		Contracts		Adjustments		Loss
	For the three months ended April 4, 2015
	Beginning balance	$	-1,511	$	-13	$	18	$	-1,506
	Other comprehensive loss before reclassifications	—		-16		-56		-72
	Reclassified from Accumulated other comprehensive loss	24		4		—		28
	Other comprehensive income (loss)	24		-12		-56		-44
	Ending balance	$	-1,487	$	-25	$	-38	$	-1,550
	For the three months ended March 29, 2014
	Beginning balance	$	-1,110	$	-10	$	93	$	-1,027
	Other comprehensive loss before reclassifications	—		-9		-6		-15
	Reclassified from Accumulated other comprehensive loss	18		2		—		20
	Other comprehensive income (loss)	18		-7		-6		5
	Ending balance	$	-1,092	$	-17	$	87	$	-1,022
Schedule of before and after-tax components of other comprehensive income
	(In millions)		Pre-Tax		Tax		After-Tax
			Amount		(Expense)		Amount
					Benefit
	For the three months ended April 4, 2015
	Pension and postretirement benefits adjustments:
	Amortization of net actuarial loss*		$	39	$	-14	$	25
	Amortization of prior service credit*		-2		1		-1
	Pension and postretirement benefits adjustments, net		37		-13		24
	Deferred gains/losses on hedge contracts:
	Current deferrals		-21		5		-16
	Reclassification adjustments		6		-2		4
	Deferred gains/losses on hedge contracts, net		-15		3		-12
	Foreign currency translation adjustments		-52		-4		-56
	Total		$	-30	$	-14	$	-44
	For the three months ended March 29, 2014
	Pension and postretirement benefits adjustments:
	Amortization of net actuarial loss*		$	29	$	-10	$	19
	Amortization of prior service credit*		-2		1		-1
	Pension and postretirement benefits adjustments, net		27		-9		18
	Deferred gains/losses on hedge contracts:
	Current deferrals		-11		2		-9
	Reclassification adjustments		2		—		2
	Deferred gains/losses on hedge contracts, net		-9		2		-7
	Foreign currency translation adjustments		-7		1		-6
	Total		$	11	$	-6	$	5
	*These components of other comprehensive income are included in the computation of net periodic pension cost.  See Note 11 of our 2014 Annual Report on Form 10-K for additional information.

Segment_Information_Tables

Segment Information (Tables)	3 Months Ended
	Apr. 04, 2015
Segment Information
Revenues by segment and reconciliation of segment profit to income from continuing operations before income taxes
		Three Months Ended
	(In millions)	April 4,		March 29,
		2015		2014
	Revenues
	Textron Aviation	$	1,051	$	785
	Bell	813		873
	Textron Systems	315		363
	Industrial	872		797
	Finance	22		29
	Total revenues	$	3,073	$	2,847
	Segment Profit
	Textron Aviation	$	67	$	14
	Bell	76		96
	Textron Systems	28		39
	Industrial	82		66
	Finance	6		4
	Segment profit	259		219
	Corporate expenses and other, net	-42		-43
	Interest expense, net for Manufacturing group	-33		-35
	Acquisition and restructuring costs	—		-16
	Income from continuing operations before income taxes	$	184	$	125

Basis_of_Presentation_Details

Basis of Presentation (Details)	3 Months Ended
	Apr. 04, 2015
	item
Basis of Presentation
Number of borrowing groups	2

Basis_of_Presentation_Details_

Basis of Presentation (Details 2) (Contracts accounted for under percentage of completion method, USD $)	3 Months Ended
In Millions, except Per Share data, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014
Contracts accounted for under percentage of completion method
Use of Estimates
Change in Accounting Estimate Financial Effect Increase in Income from Continuing Operations before Income Taxes	$18	$21
Change in Accounting Estimate Financial Effect Increase in Income from Continuing Operations after taxes	11	13
Change in Accounting Estimate Financial Effect Increase in Earnings Per Share Diluted	$0.04	$0.05
Gross Favorable Program Profit Adjustments	33	24
Gross Unfavorable Program Profit Adjustments	$15	$3

Business_Acquisitions_Details

Business Acquisitions (Details) (USD $)	3 Months Ended	12 Months Ended	3 Months Ended	0 Months Ended
	Mar. 29, 2014	Jan. 03, 2015	Apr. 04, 2015	Mar. 14, 2014
		item
Business Acquisition, Pro Forma Information
Number of Businesses acquired		7
Acquisition and restructuring costs	$16,000,000
Pro Forma
Business Acquisition, Pro Forma Information
Revenues	3,202,000,000		3,073,000,000
Income from continuing operations, net of income taxes	112,000,000		131,000,000
Diluted earnings per share from continuing operations (in dollars per share)	$0.40		$0.47
2014 Beechcraft Acquisition
Business Acquisitions
Aggregate cash payment				1,500,000,000
Revenues	101,000,000
2014 Beechcraft Acquisition | Pro Forma
Business Acquisition, Pro Forma Information
Acquisition and restructuring costs	16,000,000
2014 Beechcraft Acquisition | Textron Aviation
Business Acquisitions
Charges related to restructuring activities	5,000,000
Transaction costs	$11,000,000

Retirement_Plans_Details

Retirement Plans (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014
Pension Benefits
Net periodic benefit cost
Service cost	$30	$27
Interest cost	81	79
Expected return on plan assets	-121	-111
Amortization of prior service cost (credit)	4	4
Amortization of net actuarial loss	39	28
Net periodic benefit cost (credit)	33	27
Postretirement Benefits Other Than Pensions
Net periodic benefit cost
Service cost	1	1
Interest cost	4	5
Amortization of prior service cost (credit)	-6	-6
Amortization of net actuarial loss		1
Net periodic benefit cost (credit)	($1)	$1

ShareBased_Compensation_Detail

Share-Based Compensation (Details) (USD $)	3 Months Ended
In Millions, except Share data in Thousands, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014
Compensation expense included in net income
Compensation expense	$31	$34
Income tax benefit	-11	-12
Total net compensation expense included in net income	20	22
Stock Options
Share-Based Compensation
Maximum term of options	10 years
Vesting period	3 years
Weighted-average assumptions used in Black-Scholes option-pricing model
Fair value of options at grant date	$14.03	$12.72
Dividend yield (as a percent)	0.20%	0.20%
Expected volatility (as a percent)	34.90%	34.50%
Risk-free interest rate (as a percent)	1.50%	1.50%
Expected term (in years)	4 years 9 months 18 days	5 years
Number of Options
Outstanding at beginning of period (in shares)	8,637
Granted	1,492
Exercised	-452
Forfeited or expired	-137
Outstanding at end of period (in shares)	9,540
Exercisable at end of period (in shares)	6,213
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$29.99
Granted	$44.31
Exercised	($27.20)
Forfeited or expired	($45.95)
Outstanding at end of period (in dollars per share)	$32.13
Exercisable at end of period (in dollars per share)	$28.16
Additional information
Aggregate intrinsic value of outstanding options	123
Weighted-average remaining contractual life of outstanding stock options	7 years
Aggregate intrinsic value of exercisable options	105
Weighted-average remaining contractual life of exercisable options	6 years
Aggregate intrinsic value of options exercised	$8	$8

ShareBased_Compensation_Detail1

Share-Based Compensation (Details 2) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Apr. 04, 2015
Restricted Stock Units Payable in Stock
Number of Shares/Units
Outstanding at beginning of period, nonvested (in shares)	906
Granted	167
Vested	-139
Outstanding at end of period, nonvested (in shares)	934
Weighted-Average Grant Date Fair Value
Outstanding at beginning of period, nonvested (in dollars per share)	$30.59
Granted	$44.31
Vested	($27.02)
Outstanding at end of period, nonvested (in dollars per share)	$33.53
Restricted Stock Units Payable in Cash
Number of Shares/Units
Outstanding at beginning of period, nonvested (in shares)	1,666
Granted	364
Vested	-405
Forfeited	-21
Outstanding at end of period, nonvested (in shares)	1,604
Weighted-Average Grant Date Fair Value
Outstanding at beginning of period, nonvested (in dollars per share)	$29.84
Granted	$44.31
Vested	($24.42)
Forfeited	($32.27)
Outstanding at end of period, nonvested (in dollars per share)	$34.47

ShareBased_Compensation_Detail2

Share-Based Compensation (Details 3) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014
Restricted Stock Units
Share-Based Compensation
Fair value of awards vested	$22	$20
Cash paid	18	19
Performance Share Units
Share-Based Compensation
Cash paid	$17	$12

ShareBased_Compensation_Detail3

Share-Based Compensation (Details 4) (Performance Share Units, USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Apr. 04, 2015
Performance Share Units
Number of Units
Outstanding at beginning of period, nonvested (in shares)	677
Granted	257
Outstanding at end of period, nonvested (in shares)	934
Weighted-Average Grant Date Fair Value
Outstanding at beginning of period, nonvested (in dollars per share)	$33.38
Granted	$44.31
Outstanding at end of period, nonvested (in dollars per share)	$36.39

Earnings_Per_Share_Details

Earnings Per Share (Details)	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Weighted-average shares outstanding for basic and diluted
Basic weighted-average shares outstanding	277,902,000	281,094,000
Dilutive effect of:
Stock options	2,175,000	2,049,000
ASR		184,000
Diluted weighted-average shares outstanding	280,077,000	283,327,000
Anti-dilutive effect of weighted average shares	1,000,000	1,000,000

Accounts_Receivable_and_Financ2

Accounts Receivable and Finance Receivables (Details) (USD $)	Apr. 04, 2015	Jan. 03, 2015
In Millions, unless otherwise specified
Accounts Receivable
Unbillable receivables within accounts receivable	$147	$151
Manufacturing group
Accounts Receivable
Accounts Receivable, Gross	1,164	1,065
Allowance for doubtful accounts	-31	-30
Total	1,133	1,035
Commercial | Manufacturing group
Accounts Receivable
Accounts Receivable, Gross	861	765
U. S. Government Contracts | Manufacturing group
Accounts Receivable
Accounts Receivable, Gross	$303	$300

Accounts_Receivable_and_Financ3

Accounts Receivable and Finance Receivables (Details 2) (USD $)	Apr. 04, 2015	Jan. 03, 2015	Mar. 29, 2014	Dec. 28, 2013
In Millions, unless otherwise specified
Finance Receivables
Finance receivables, gross	$1,256	$1,289
Allowance for losses	-53	-51	-54	-55
Total finance receivables, net	1,203	1,238
Finance receivables held for sale	$35	$35

Accounts_Receivable_and_Financ4

Accounts Receivable and Finance Receivables (Details 3) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Jan. 03, 2015
	item
Accounts Receivable and Finance Receivables
Number of loan categories based on key credit quality indicators for individual loan	3
Finance receivables categorized based on the internally assigned credit quality
Total finance receivables	$1,221	$1,254
Performing
Finance receivables categorized based on the internally assigned credit quality
Total finance receivables	1,037	1,062
Watchlist
Finance receivables categorized based on the internally assigned credit quality
Total finance receivables	92	111
Nonaccrual
Finance receivables categorized based on the internally assigned credit quality
Total finance receivables	$92	$81
Nonaccrual as a percentage of finance receivables	7.53%	6.46%
Nonaccrual | Minimum
Finance receivables categorized based on the internally assigned credit quality
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful	3 months

Accounts_Receivable_and_Financ5

Accounts Receivable and Finance Receivables (Details 4) (USD $)	Apr. 04, 2015	Jan. 03, 2015
In Millions, unless otherwise specified
Finance receivables held for investment by delinquency aging
Less than 31 days past due	$1,075	$1,080
31-60 days past due	63	117
61-90 days past due	43	28
Over 90 days past due	40	29
Total	$1,221	$1,254
60+ days contractual delinquency as a percentage of finance receivables	6.80%	4.55%

Accounts_Receivable_and_Financ6

Accounts Receivable and Finance Receivables (Details 5) (USD $)	3 Months Ended	12 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Jan. 03, 2015
Recorded investment:
Recorded investment, impaired loans with related allowance for losses	$74	$68
Recorded investment, impaired loans with no related allowance for losses	22	42
Recorded investment, Total	96	110
Unpaid principal balance	101	115
Allowance for losses on impaired loans	22	20
Average recorded investment	$103	$115

Accounts_Receivable_and_Financ7

Accounts Receivable and Finance Receivables (Details 6) (USD $)	Apr. 04, 2015	Jan. 03, 2015
In Millions, unless otherwise specified
Finance receivables
Allowance based on collective evaluation	$31	$31
Allowance based on individual evaluation	22	20
Finance receivables evaluated collectively	1,006	1,023
Finance receivables evaluated individually	$96	$110

Accounts_Receivable_and_Financ8

Accounts Receivable and Finance Receivables (Details 7) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014
Allowance for losses
Balance at the beginning of period	$51	$55
Provision for losses	1	4
Charge-offs		-6
Recoveries	1	1
Balance at the end of period	$53	$54

Inventories_Details

Inventories (Details) (USD $)	Apr. 04, 2015	Jan. 03, 2015
In Millions, unless otherwise specified
Inventories
Finished goods	$1,826	$1,582
Work in process	2,728	2,683
Raw materials and components	553	546
Inventories, Gross	5,107	4,811
Progress/milestone payments	-871	-883
Total	$4,236	$3,928

Accrued_Liabilities_Details

Accrued Liabilities (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014
Changes in warranty and product maintenance contract liability
Accrual at the beginning of period	$281	$223
Provision	74	70
Settlements	-82	-69
Acquisitions	4	56
Adjustments		-4
Accrual at the end of period	$277	$276
Minimum
Accrued Liabilities
Term of limited warranty and maintenance programs	1 year
Maximum
Accrued Liabilities
Term of limited warranty and maintenance programs	5 years

Derivative_Instruments_and_Fai2

Derivative Instruments and Fair Value Measurements (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Jan. 03, 2015
Manufacturing group
Fair value of derivative instruments
Forward exchange contracts maximum maturity period	3 years
Foreign currency exchange contracts
Fair value of derivative instruments
Net deferred (gain)/loss in accumulated other comprehensive loss	25
Foreign currency exchange contracts | Manufacturing group
Fair value of derivative instruments
Notional amounts	558	696
Fair Value, Inputs, Level 2 | Foreign currency exchange contracts | Manufacturing group
Fair value of derivative instruments
Derivative Asset, Fair Value	25	16
Derivative Liability, Fair Value	48	$26

Derivative_Instruments_and_Fai3

Derivative Instruments and Fair Value Measurements (Details 2) (Fair Value, Measurements, Nonrecurring, Finance group, Unobservable Inputs (Level 3), USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014	Jan. 03, 2015
Fair Value, Measurements, Nonrecurring | Finance group | Unobservable Inputs (Level 3)
Assets measured at fair value on a nonrecurring basis
Impaired finance receivables, Balance	$52		$49
Impaired finance receivables, (gain) loss	$3	$5

Derivative_Instruments_and_Fai4

Derivative Instruments and Fair Value Measurements (Details 3) (USD $)	Apr. 04, 2015	Jan. 03, 2015
In Millions, unless otherwise specified
Manufacturing group | Carrying Value
Financial instruments not reflected at fair value
Long-term debt, excluding leases	($2,731)	($2,742)
Manufacturing group | Estimated Fair Value
Financial instruments not reflected at fair value
Long-term debt, excluding leases	-2,959	-2,944
Finance group
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Portion of fair value of term debt determined based on observable market transactions (as a percent)	74.00%	75.00%
Financial instruments not reflected at fair value
Debt	-1,021	-1,063
Finance group | Carrying Value
Financial instruments not reflected at fair value
Finance receivables, excluding leases	963	1,004
Debt	-1,021	-1,063
Finance group | Estimated Fair Value
Financial instruments not reflected at fair value
Finance receivables, excluding leases	988	1,021
Debt	($1,013)	($1,051)

Accumulated_Other_Comprehensiv2

Accumulated Other Comprehensive Loss and Other Comprehensive Income (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014
Components of Accumulated other comprehensive loss
Balance at the beginning of the period	($1,506)	($1,027)
Other comprehensive loss before reclassifications	-72	-15
Reclassified from Accumulated other comprehensive loss	28	20
Other comprehensive income (loss)	-44	5
Balance at the end of the period	-1,550	-1,022
Pension and Postretirement Benefit Adjustments
Components of Accumulated other comprehensive loss
Balance at the beginning of the period	-1,511	-1,110
Reclassified from Accumulated other comprehensive loss	24	18
Other comprehensive income (loss)	24	18
Balance at the end of the period	-1,487	-1,092
Deferred Gains/Losses on Hedge Contracts
Components of Accumulated other comprehensive loss
Balance at the beginning of the period	-13	-10
Other comprehensive loss before reclassifications	-16	-9
Reclassified from Accumulated other comprehensive loss	4	2
Other comprehensive income (loss)	-12	-7
Balance at the end of the period	-25	-17
Foreign Currency Translation Adjustments
Components of Accumulated other comprehensive loss
Balance at the beginning of the period	18	93
Other comprehensive loss before reclassifications	-56	-6
Other comprehensive income (loss)	-56	-6
Balance at the end of the period	($38)	$87

Accumulated_Other_Comprehensiv3

Accumulated Other Comprehensive Loss and Other Comprehensive Income (Details 2) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014
Pension and postretirement benefits adjustments, Pre-Tax:
Amortization of net actuarial loss included in net periodic pension cost, pre-tax	$39	$29
Amortization of prior service cost included in net periodic pension cost, pre-tax	-2	-2
Pension and postretirement benefits adjustments, net, Pre-Tax	37	27
Deferred gains/losses on hedge contracts, pre-tax:
Current deferrals, pre-tax	-21	-11
Reclassification adjustments included in net income, pre-tax	6	2
Deferred gains/losses on hedge contracts, net, pre-tax	-15	-9
Foreign currency translation adjustments, pre-tax	-52	-7
Other comprehensive income, pre-tax	-30	11
Pension and postretirement benefits adjustments, Tax (Expense) Benefit:
Amortization of net actuarial loss included in net periodic pension cost, tax	-14	-10
Amortization of prior service cost included in net periodic pension cost, tax	1	1
Pension and postretirement benefits adjustments, net, tax	-13	-9
Deferred gains/losses on hedge contracts, tax:
Current deferrals, tax	5	2
Reclassification adjustments included in net income, tax	-2
Deferred gains/losses on hedge contracts, net, tax	3	2
Foreign currency translation adjustments, Tax	-4	1
Other comprehensive income, Tax	-14	-6
Pension and postretirement benefits adjustments, After Tax Amount:
Amortization of net actuarial loss included in net periodic pension cost, after tax	25	19
Amortization of prior service cost included in net periodic pension cost, after tax	-1	-1
Pension and postretirement benefits adjustments net, After-Tax	24	18
Deferred gains/losses on hedge contracts, after tax:
Current deferrals, after tax	-16	-9
Reclassification adjustments included in net income, after tax	4	2
Deferred gains/losses on hedge contracts, net, after tax	-12	-7
Foreign currency translation adjustments, after Tax	-56	-6
Other comprehensive (loss) income	($44)	$5

Segment_Information_Details

Segment Information (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 04, 2015	Mar. 29, 2014
	segment
Operating and reportable business segments
Number of business operating segments	5
Number of reportable business segments	5
REVENUES
Manufacturing revenues	$3,051	$2,818
Finance revenues	22	29
Total revenues	3,073	2,847
SEGMENT PROFIT
Segment profit	259	219
Corporate expenses and other, net	-42	-43
Interest expense, net for Manufacturing group	-33	-35
Acquisition and restructuring costs		-16
Income from continuing operations before income taxes	184	125
Textron Aviation | Manufacturing group
REVENUES
Manufacturing revenues	1,051	785
SEGMENT PROFIT
Segment profit	67	14
Bell | Manufacturing group
REVENUES
Manufacturing revenues	813	873
SEGMENT PROFIT
Segment profit	76	96
Textron Systems | Manufacturing group
REVENUES
Manufacturing revenues	315	363
SEGMENT PROFIT
Segment profit	28	39
Industrial | Manufacturing group
REVENUES
Manufacturing revenues	872	797
SEGMENT PROFIT
Segment profit	82	66
Finance
REVENUES
Finance revenues	22	29
SEGMENT PROFIT
Segment profit	$6	$4