Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 30, 2019 | Apr. 12, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | TEXTRON INC | |
Entity Central Index Key | 0000217346 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-04 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 232,762,261 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Revenues | ||
Total revenues | $ 3,109 | $ 3,296 |
Costs, expenses and other | ||
Cost of sales | 2,577 | 2,729 |
Selling and administrative expense | 307 | 327 |
Interest expense | 42 | 41 |
Non-service components of pension and post-retirement income, net | (29) | (19) |
Total costs, expenses and other | 2,897 | 3,078 |
Income before income taxes | 212 | 218 |
Income tax expense | 33 | 29 |
Net income | $ 179 | $ 189 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.76 | $ 0.73 |
Diluted (in dollars per share) | $ 0.76 | $ 0.72 |
Manufacturing | ||
Revenues | ||
Total revenues | $ 3,092 | $ 3,280 |
Finance. | ||
Revenues | ||
Finance Revenue | $ 17 | $ 16 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Consolidated Statements of Comprehensive Income | ||
Net income | $ 179 | $ 189 |
Other comprehensive income (loss), net of tax: | ||
Pension and postretirement benefits adjustments, net of reclassifications | 21 | 31 |
Foreign currency translation adjustments | 3 | 42 |
Deferred gains on hedge contracts, net of reclassifications | 2 | 1 |
Other comprehensive income | 26 | 74 |
Comprehensive income | $ 205 | $ 263 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 |
Assets | ||
Inventories | $ 4,047 | $ 3,818 |
Finance receivables, net | 756 | 760 |
Total assets | 14,480 | 14,264 |
Liabilities | ||
Total liabilities | 9,247 | 9,072 |
Shareholders' equity | ||
Common stock | 30 | 30 |
Capital surplus | 1,689 | 1,646 |
Treasury stock | (331) | (129) |
Retained earnings | 5,581 | 5,407 |
Accumulated other comprehensive loss | (1,736) | (1,762) |
Total shareholders' equity | 5,233 | 5,192 |
Total liabilities and shareholders' equity | $ 14,480 | $ 14,264 |
Common shares outstanding | 232,699 | 235,621 |
Manufacturing group | ||
Assets | ||
Cash and equivalents | $ 646 | $ 987 |
Accounts receivable, net | 1,059 | 1,024 |
Inventories | 4,047 | 3,818 |
Other current assets | 835 | 785 |
Total current assets | 6,587 | 6,614 |
Property, plant and equipment, less accumulated depreciation and amortization of $4,256 and $4,203, respectively | 2,523 | 2,615 |
Goodwill | 2,141 | 2,218 |
Other assets | 2,267 | 1,800 |
Total assets | 13,518 | 13,247 |
Liabilities | ||
Short-term debt and current portion of long-term debt | 363 | 258 |
Accounts payable | 1,147 | 1,099 |
Other current liabilities | 1,922 | 2,149 |
Total current liabilities | 3,432 | 3,506 |
Other liabilities | 2,186 | 1,932 |
Long-term debt | 2,812 | 2,808 |
Total liabilities | 8,430 | 8,246 |
Finance group | ||
Assets | ||
Cash and equivalents | 96 | 120 |
Finance receivables, net | 756 | 760 |
Other assets | 110 | 137 |
Total assets | 962 | 1,017 |
Liabilities | ||
Other liabilities | 106 | 108 |
Debt | 711 | 718 |
Total liabilities | $ 817 | $ 826 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 |
Consolidated Balance Sheets | ||
Accumulated depreciation and amortization | $ 4,256 | $ 4,203 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 179 | $ 189 |
Non-cash items: | ||
Depreciation and amortization | 102 | 105 |
Deferred income taxes | 15 | 2 |
Other, net | 33 | 32 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (33) | 63 |
Inventories | (215) | (128) |
Other assets | (31) | (119) |
Accounts payable | 47 | 15 |
Other liabilities | (288) | (263) |
Income taxes, net | (7) | 9 |
Pension, net | (14) | (2) |
Captive finance receivables, net | (1) | 15 |
Other operating activities, net | (3) | (3) |
Net cash provided by (used in) operating activities | (216) | (85) |
Cash flows from investing activities | ||
Capital expenditures | (59) | (77) |
Net proceeds from corporate-owned life insurance policies | 2 | 58 |
Finance receivables repaid | 12 | 16 |
Other investing activities, net | 3 | 9 |
Net cash provided by (used in) investing activities | (42) | 6 |
Cash flows from financing activities | ||
Increase in short-term debt | 100 | 2 |
Principal payments on long-term debt and nonrecourse debt | (19) | (19) |
Purchases of Textron common stock | (202) | (344) |
Dividends paid | (5) | (5) |
Other financing activities, net | 10 | 8 |
Net cash used in financing activities | (116) | (358) |
Effect of exchange rate changes on cash and equivalents | 9 | 11 |
Net decrease in cash and equivalents | (365) | (426) |
Cash and equivalents at beginning of period | 1,107 | 1,262 |
Cash and equivalents at end of period | 742 | 836 |
Manufacturing group | ||
Cash flows from operating activities | ||
Net income | 175 | 179 |
Non-cash items: | ||
Depreciation and amortization | 100 | 103 |
Deferred income taxes | 15 | 2 |
Other, net | 33 | 32 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (33) | 63 |
Inventories | (241) | (128) |
Other assets | (30) | (118) |
Accounts payable | 47 | 15 |
Other liabilities | (286) | (259) |
Income taxes, net | (9) | 13 |
Pension, net | (14) | (2) |
Dividends received from Finance group | 50 | 50 |
Other operating activities, net | (3) | (3) |
Net cash provided by (used in) operating activities | (196) | (53) |
Cash flows from investing activities | ||
Capital expenditures | (59) | (77) |
Net proceeds from corporate-owned life insurance policies | 2 | 58 |
Other investing activities, net | 1 | 9 |
Net cash provided by (used in) investing activities | (56) | (10) |
Cash flows from financing activities | ||
Increase in short-term debt | 100 | 2 |
Purchases of Textron common stock | (202) | (344) |
Dividends paid | (5) | (5) |
Other financing activities, net | 9 | 8 |
Net cash used in financing activities | (98) | (339) |
Effect of exchange rate changes on cash and equivalents | 9 | 11 |
Net decrease in cash and equivalents | (341) | (391) |
Cash and equivalents at beginning of period | 987 | 1,079 |
Cash and equivalents at end of period | 646 | 688 |
Finance group | ||
Cash flows from operating activities | ||
Net income | 4 | 10 |
Non-cash items: | ||
Depreciation and amortization | 2 | 2 |
Changes in assets and liabilities: | ||
Other assets | (1) | (1) |
Other liabilities | (2) | (4) |
Income taxes, net | 2 | (4) |
Net cash provided by (used in) operating activities | 5 | 3 |
Cash flows from investing activities | ||
Finance receivables repaid | 40 | 65 |
Finance receivables originated | (29) | (34) |
Other investing activities, net | 28 | |
Net cash provided by (used in) investing activities | 39 | 31 |
Cash flows from financing activities | ||
Principal payments on long-term debt and nonrecourse debt | (18) | (19) |
Dividends paid | (50) | (50) |
Net cash used in financing activities | (68) | (69) |
Net decrease in cash and equivalents | (24) | (35) |
Cash and equivalents at beginning of period | 120 | 183 |
Cash and equivalents at end of period | $ 96 | $ 148 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 30, 2019 | |
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 December 29, 2018. In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems and Industrial segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements. All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group. Use of Estimates We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined. Contract Estimates For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable. In the first quarter of 2019 and 2018, our cumulative catch-up adjustments increased revenue and segment profit by $31 million and $40 million, respectively, and net income by $23 million and $30 million, respectively ($0.10 and $0.12 per diluted share, respectively). In the first quarter of 2019 and 2018, gross favorable adjustments totaled $53 million and $56 million, respectively, and the gross unfavorable adjustments totaled $22 million and $16 million, respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies Update | 3 Months Ended |
Mar. 30, 2019 | |
Summary of Significant Accounting Policies Update | |
Summary of Significant Accounting Policies Update | Note 2. Summary of Significant Accounting Policies Update At the beginning of 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (ASC 842), which requires lessees to recognize all leases with a term greater than 12 months on the balance sheet as right-of-use assets and lease liabilities . Upon adoption, the most significant impact was the recognition of $307 million in right-of-use assets and lease liabilities for operating leases, while our accounting for finance leases remained unchanged. We applied the provisions of this standard to our existing leases at the adoption date using a retrospective transition method and have not adjusted comparative periods. The cumulative transition adjustment to retained earnings was not significant and the adoption had no impact on our earnings or cash flows. We elected the practical expedients permitted under the transition guidance, which allowed us to carryforward the historical lease classification and to apply hindsight when evaluating options within a contract, resulting in the extension of the lease term for certain of our existing leases. Our significant accounting policies are included in Note 1 of our Annual Report on Form 10-K for the year ended December 29, 2018. Significant changes to our policies resulting from the adoption of ASC 842 are provided below. Leases We identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. For our contracts that contain both lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs, other goods/services), we allocate the consideration in the contract to each component based on its standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the commencement date. For these leases, we capitalize the lesser of a) the present value of the minimum lease payments over the lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option. Operating leases are recognized as a single lease cost on a straight-line basis over the lease term, while finance lease cost is recognized separately as amortization and interest expense. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses. For most financial assets, such as trade and other receivables, loans and other instruments, this standard changes the current incurred loss model to a forward-looking expected credit loss model, which generally will result in the earlier recognition of allowances for losses. The new standard is effective for our company at the beginning of 2020. Entities are required to apply the provisions of the standard through a cumulative-effect adjustment to retained earnings as of the effective date. We are currently evaluating the impact of the standard on our consolidated financial statements. |
Accounts Receivable and Finance
Accounts Receivable and Finance Receivables | 3 Months Ended |
Mar. 30, 2019 | |
Accounts Receivable and Finance Receivables | |
Accounts Receivable and Finance Receivables | Note 3. Accounts Receivable and Finance Receivables Accounts Receivable Accounts receivable is composed of the following: (In millions) March 30, December 29, Commercial $ $ U.S. Government contracts Allowance for doubtful accounts Total $ $ Finance Receivables Finance receivables are presented in the following table: (In millions) March 30, 2019 December 29, 2018 Finance receivables $ $ Allowance for losses Total finance receivables, net $ $ 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) March 30, 2019 December 29, 2018 Performing $ $ Watchlist Nonaccrual Nonaccrual as a percentage of finance receivables Less than 31 days past due $ $ 31-60 days past due 61-90 days past due Over 90 days past due 60+ days contractual delinquency as a percentage of finance receivables 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 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) March 30, 2019 December 29, 2018 Finance receivables evaluated collectively $ $ Finance receivables evaluated individually Allowance for losses based on collective evaluation Allowance for losses based on individual evaluation Impaired finance receivables with no related allowance for losses $ $ Impaired finance receivables with related allowance for losses Unpaid principal balance on impaired finance receivables Average recorded investment of impaired finance receivables |
Inventories
Inventories | 3 Months Ended |
Mar. 30, 2019 | |
Inventories | |
Inventories | Note 4. Inventories Inventories are composed of the following: (In millions) March 30, 2019 December 29, Finished goods $ $ Work in process Raw materials and components Total $ $ |
Other Assets
Other Assets | 3 Months Ended |
Mar. 30, 2019 | |
Other Assets | |
Other Assets | Note 5. Other Assets On April 1, 2019, Textron Systems’ TRU Simulation + Training Inc. contributed assets associated with its training business into FlightSafety Textron Aviation Training LLC, a company formed by FlightSafety International Inc. and TRU to provide training solutions for Textron Aviation’s business and general aviation aircraft. Our 30% investment in this newly formed company will be accounted for under the equity method of accounting. The assets of the training business met the criteria to be classified as held for sale at March 30, 2019 and were reclassified to Other assets in the Consolidated Balance Sheets at their net carrying value of $145 million, primarily property, plant and equipment of $64 million and allocated goodwill of $77 million. |
Warranty Liability
Warranty Liability | 3 Months Ended |
Mar. 30, 2019 | |
Warranty Liability | |
Warranty Liability | Note 6. Warranty Liability Changes in our warranty liability are as follows: Three Months Ended (In millions) March 30, March 31, Beginning of period $ $ Provision Settlements Adjustments* End of period $ $ * Adjustments include changes to prior year estimates, new issues on prior year sales, acquisitions and currency translation adjustments. |
Leases
Leases | 3 Months Ended |
Mar. 30, 2019 | |
Leases | |
Leases | Note 7. 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 30 years, which include options to extend the lease term for periods up to 25 years when it is reasonably certain the option will be exercised. In the first quarter of 2019, our operating lease cost totaled $16 million. Our finance lease cost and our variable and short-term lease costs were not significant. In the first quarter of 2019, cash paid for operating lease liabilities totaled $16 million, which is classified in cash flows from operating activities. Balance sheet and other information related to our leases is as follows: (Dollars in millions) March 30, Operating leases: Other assets $ Other current liabilities Other liabilities Finance leases: Property, plant and equipment, less accumulated amortization of $50 million $ Short-term and current portion of long-term debt Long-term debt Weighted-average remaining lease term (in years) Finance leases Operating leases Weighted-average discount rate Finance leases Operating leases Maturities of our lease liabilities at March 30, 2019 are as follows: (In millions) Operating Finance Leases 2019 $ $ 2020 2021 2022 2023 Thereafter Total lease payments Less: interest Total lease liabilities $ $ |
Derivative Instruments and Fair
Derivative Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 30, 2019 | |
Derivative Instruments and Fair Value Measurements | |
Derivative Instruments and Fair Value Measurements | Note 8. 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 March 30, 2019 and December 29, 2018, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $489 million and $379 million, respectively. At March 30, 2019, the fair value amounts of our foreign currency exchange contracts were a $4 million asset and a $7 million liability. At December 29, 2018, the fair value amounts of our foreign currency exchange contracts were a $2 million asset and a $10 million liability. We hedge our net investment position in certain major currencies and generate foreign currency interest payments that offset other transactional exposures in these currencies. To accomplish this, we borrow directly in the foreign currency and designate a portion of the debt as a hedge of the 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 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: March 30, 2019 December 29, 2018 (In millions) Carrying Estimated Carrying Estimated Fair Value Manufacturing group Debt, excluding leases $ $ $ $ Finance group Finance receivables, excluding leases Debt Fair value for the Manufacturing group debt is determined using market observable data for similar transactions (Level 2). The fair value for the Finance group debt was determined primarily based on discounted cash flow analyses using observable market inputs from debt with similar duration, subordination and credit default expectations (Level 2). Fair value estimates for finance receivables were determined based on internally developed discounted cash flow models primarily utilizing significant unobservable inputs (Level 3), which include estimates of the rate of return, financing cost, capital structure and/or discount rate expectations of current market participants combined with estimated loan cash flows based on credit losses, payment rates and expectations of borrowers’ ability to make payments on a timely basis. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 30, 2019 | |
Shareholders' Equity | |
Shareholders' Equity | Note 9. Shareholders’ Equity A reconciliation of Shareholder’s equity is presented below: (In millions) Common Capital Treasury Stock Retained Accumulated Comprehensive Loss Total Balance at December 29, 2018 $ $ $ $ $ $ Net income — — — — Other comprehensive income — — — — Share-based compensation activity — — — — Dividends declared — — — — Purchases of common stock — — — — Balance at March 30, 2019 $ $ $ $ $ $ Balance at December 30, 2017 $ $ $ $ $ $ Adoption of ASC 606 — — — — Net income — — — — Other comprehensive income — — — — Share-based compensation activity — — — — Dividends declared — — — — Purchases of common stock — — — — Balance at March 31, 2018 $ $ $ $ $ $ Dividends per share of common stock were $0.02 for both the three months ended March 30, 2019 and March 31, 2018. Earnings Per Share We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period. Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options. The weighted-average shares outstanding for basic and diluted EPS are as follows: Three Months Ended (In thousands) March 30, 2019 March 31, 2018 Basic weighted-average shares outstanding Dilutive effect of stock options Diluted weighted-average shares outstanding Stock options to purchase 3.1 million and 1.3 million shares of common stock are excluded from the calculation of diluted weighted-average shares outstanding for the first quarter of 2019 and 2018, respectively, as their effect would have been anti-dilutive. Accumulated Other Comprehensive Loss and Other Comprehensive Income The components of Accumulated other comprehensive loss are presented below: (In millions) Pension and Foreign Deferred Gains (Losses) Accumulated Balance at December 29, 2018 $ $ $ $ Other comprehensive income before reclassifications — Reclassified from Accumulated other comprehensive loss — Balance at March 30, 2019 $ $ $ $ Balance at December 30, 2017 $ $ $ $ Other comprehensive income before reclassifications — Reclassified from Accumulated other comprehensive loss — — Balance at March 31, 2018 $ $ $ $ The before and after-tax components of Other comprehensive income are presented below: March 30, 2019 March 31, 2018 (In millions) Pre-Tax Tax (Expense) After-Tax Pre-Tax Tax (Expense) After-Tax Three Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial loss* $ $ $ $ $ $ Amortization of prior service cost* — — Pension and postretirement benefits adjustments, net Deferred gains on hedge contracts: Current deferrals Reclassification adjustments — — — — Deferred gains on hedge contracts, net Foreign currency translation adjustments Total $ $ $ $ $ $ *These components of other comprehensive income are included in the computation of net periodic pension cost. See Note 14 of our 2018 Annual Report on Form 10-K for additional information. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 30, 2019 | |
Segment Information | |
Segment Information | Note 10. Segment Information We operate in, and report financial information for, the following five business segments: Textron Aviation, Bell, Textron Systems, Industrial and Finance. On July 2, 2018, we sold our Tools and Test Equipment businesses that were previously included in the Industrial segment as discussed in Note 2 of our 2018 Annual Report on Form 10-K. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes interest expense, certain corporate expenses, gains/losses on major business dispositions and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense. Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below: Three Months Ended (In millions) March 30, 2019 March 31, 2018 Revenues Textron Aviation $ $ Bell Textron Systems Industrial Finance Total revenues $ $ Segment Profit Textron Aviation $ $ Bell Textron Systems Industrial Finance Segment profit Corporate expenses and other, net Interest expense, net for Manufacturing group Income before income taxes $ $ |
Revenues
Revenues | 3 Months Ended |
Mar. 30, 2019 | |
Revenues | |
Revenues | Note 11. Revenues Disaggregation of Revenues Our revenues disaggregated by major product type are presented below: Three Months Ended (In millions) March 30, 2019 March 31, 2018 Aircraft $ $ Aftermarket parts and services Textron Aviation Military aircraft and support programs Commercial helicopters, parts and services Bell Unmanned systems Marine and land systems Simulation, training and other Textron Systems Fuel systems and functional components Specialized vehicles Tools and test equipment — Industrial Finance Total revenues $ $ Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Bell Textron Industrial Finance Total Three months ended March 30, 2019 Customer type: Commercial $ $ $ $ $ $ U.S. Government — Total revenues $ $ $ $ $ $ Geographic location: United States $ $ $ $ $ $ Europe Asia and Australia Other international Total revenues $ $ $ $ $ $ Three months ended March 31, 2018 Customer type: Commercial $ $ $ $ $ $ U.S. Government — Total revenues $ $ $ $ $ $ Geographic location: United States $ $ $ $ $ $ Europe Asia and Australia Other international Total revenues $ $ $ $ $ $ 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 revenue 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 March 30, 2019, we had $9.7 billion in remaining performance obligations of which we expect to recognize revenues of approximately 70% through 2020, an additional 23% through 2022, and the balance thereafter. Contract Assets and Liabilities Assets and liabilities related to our contracts with customers are reported on a contract-by-contract basis at the end of each reporting period. At March 30, 2019, contract assets and contract liabilities totaled $477 million and $927 million, respectively. At December 29, 2018, contract assets and contract liabilities totaled $461 million and $974 million, respectively. During the first quarter of 2019, we recognized $311 million in revenues that were included in the contract liability balance at December 29, 2018. We recognized $322 million in revenues in the first quarter of 2018 that were included in the contract liability balance at the adoption date. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 30, 2019 | |
Share-Based Compensation | |
Share-Based Compensation | Note 12. Share-Based Compensation Under our share-based compensation plans, we have authorization to provide awards to selected employees in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, performance stock, performance share units and other awards. Share-based compensation expense for awards subject only to service conditions vest ratably and is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award. For e mployees eligible for early retirement under the plans, the service requirement of the award is satisfied at the date of grant and the expense is recognized in the period the award is granted. Compensation expense included in net income for these plans is as follows: Three Months Ended (In millions) March 30, March 31, Compensation expense $ $ Income tax benefit Total net compensation expense included in net income $ $ Stock Options Options to purchase our shares have a maximum term of ten years and vest ratably over a three-year period. Stock option compensation cost is calculated under the fair value approach using the Black-Scholes option-pricing model to determine the fair value of options granted on the date of grant. The expected volatility used in this model is based on 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 and the assumptions used in our option-pricing model for such grants are as follows: Three Months Ended March 30, March 31, Fair value of options at grant date $ $ Dividend yield Expected volatility Risk-free interest rate Expected term (in years) The stock option activity during the first quarter of 2019 is provided below: (Options in thousands) Number of Weighted- Outstanding at beginning of period $ Granted Exercised Forfeited or expired Outstanding at end of period $ Exercisable at end of period $ At March 30, 2019 , our outstanding options had an aggregate intrinsic value of $80 million and a weighted-average remaining contractual life of six years. Our exercisable options had an aggregate intrinsic value of $79 million and a weighted-average remaining contractual life of five years at March 30, 2019 . The total intrinsic value of options exercised was $16 million and $8 million during the first quarter of 2019 and 2018, respectively. Restricted Stock Units The activity for restricted stock units payable in both stock and cash during the first quarter of 2019 is provided below: Units Payable in Stock Units Payable in Cash (Shares/Units in thousands) Number of Weighted- Number of Weighted- Outstanding at beginning of period, nonvested $ $ Granted Vested Forfeited — — Outstanding at end of period, nonvested $ $ The fair value of the restricted stock unit awards that vested and/or amounts paid under these awards is as follows: Three Months Ended (In millions) March 30, March 31, Fair value of awards vested $ $ Cash paid Performance Share Units The activity for our performance share units during the first quarter of 2019 is provided below: (Units in thousands) Number of Weighted- Outstanding at beginning of period, nonvested $ Granted Outstanding at end of period, nonvested $ Cash paid under these awards totaled $10 million and $11 million during the first quarter of 2019 and 2018, respectively. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 30, 2019 | |
Retirement Plans | |
Retirement Plans | Note 13. Retirement Plans We provide defined benefit pension plans and other postretirement benefits to eligible employees. The components of net periodic benefit cost (credit) for these plans are as follows: Pension Benefits Postretirement Benefits (In millions) March 30, March 31, March 30, March 31, Three Months Ended Service cost $ $ $ $ Interest cost Expected return on plan assets — — Amortization of prior service cost (credit) Amortization of net actuarial loss — — Net periodic benefit cost (credit) $ $ 7 $ $ |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2019 | |
Income Taxes | |
Income Taxes | Note 14. Income Taxes Our effective tax rate for the first quarter of 2019 and 2018 was 15.6% and 13.3%, respectively. In the first quarter of 2019, the effective tax rate was lower than the U.S. federal statutory tax rate of 21%, primarily due to a $12 million benefit recognized for additional research credits related to prior years. In the first quarter of 2018, the effective tax rate was lower than the U.S. federal statutory tax rate of 21%, primarily due to benefits recognized from audit settlements. Our reserve for unrecognized tax benefits totaled $175 million and $141 million at March 30, 2019 and December 29, 2018, respectively. The increase in this reserve largely reflects a claim filed in the first quarter of 2019 for tax credits related to prior years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 30, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 15. 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies Update (Policies) | 3 Months Ended |
Mar. 30, 2019 | |
Summary of Significant Accounting Policies Update | |
Leases | Leases We identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. For our contracts that contain both lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs, other goods/services), we allocate the consideration in the contract to each component based on its standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the commencement date. For these leases, we capitalize the lesser of a) the present value of the minimum lease payments over the lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option. Operating leases are recognized as a single lease cost on a straight-line basis over the lease term, while finance lease cost is recognized separately as amortization and interest expense. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses. For most financial assets, such as trade and other receivables, loans and other instruments, this standard changes the current incurred loss model to a forward-looking expected credit loss model, which generally will result in the earlier recognition of allowances for losses. The new standard is effective for our company at the beginning of 2020. Entities are required to apply the provisions of the standard through a cumulative-effect adjustment to retained earnings as of the effective date. We are currently evaluating the impact of the standard on our consolidated financial statements. |
Accounts Receivable and Finan_2
Accounts Receivable and Finance Receivables (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Accounts Receivable and Finance Receivables | |
Accounts receivable | (In millions) March 30, December 29, Commercial $ $ U.S. Government contracts Allowance for doubtful accounts Total $ $ |
Finance receivables | (In millions) March 30, 2019 December 29, 2018 Finance receivables $ $ Allowance for losses Total finance receivables, net $ $ |
Finance receivables by credit quality indicator and by delinquency aging category | (Dollars in millions) March 30, 2019 December 29, 2018 Performing $ $ Watchlist Nonaccrual Nonaccrual as a percentage of finance receivables Less than 31 days past due $ $ 31-60 days past due 61-90 days past due Over 90 days past due 60+ days contractual delinquency as a percentage of finance receivables |
Summary of finance receivables and allowance for loan losses based on impairment evaluation, excluding leveraged leases | (In millions) March 30, 2019 December 29, 2018 Finance receivables evaluated collectively $ $ Finance receivables evaluated individually Allowance for losses based on collective evaluation Allowance for losses based on individual evaluation Impaired finance receivables with no related allowance for losses $ $ Impaired finance receivables with related allowance for losses Unpaid principal balance on impaired finance receivables Average recorded investment of impaired finance receivables |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Inventories | |
Inventories | (In millions) March 30, 2019 December 29, Finished goods $ $ Work in process Raw materials and components Total $ $ |
Warranty Liability (Tables)
Warranty Liability (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Warranty Liability | |
Changes in warranty liability | Three Months Ended (In millions) March 30, March 31, Beginning of period $ $ Provision Settlements Adjustments* End of period $ $ * Adjustments include changes to prior year estimates, new issues on prior year sales, acquisitions and currency translation adjustments. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Leases | |
Schedule of balance sheet and other information | (Dollars in millions) March 30, Operating leases: Other assets $ Other current liabilities Other liabilities Finance leases: Property, plant and equipment, less accumulated amortization of $50 million $ Short-term and current portion of long-term debt Long-term debt Weighted-average remaining lease term (in years) Finance leases Operating leases Weighted-average discount rate Finance leases Operating leases |
Summary of maturities of operating lease liabilities | (In millions) Operating Finance Leases 2019 $ $ 2020 2021 2022 2023 Thereafter Total lease payments Less: interest Total lease liabilities $ $ |
Summary of maturities of finance lease liabilities | (In millions) Operating Finance Leases 2019 $ $ 2020 2021 2022 2023 Thereafter Total lease payments Less: interest Total lease liabilities $ $ |
Derivative Instruments and Fa_2
Derivative Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Derivative Instruments and Fair Value Measurements | |
Carrying value and estimated fair value of financial instruments | March 30, 2019 December 29, 2018 (In millions) Carrying Estimated Carrying Estimated Fair Value Manufacturing group Debt, excluding leases $ $ $ $ Finance group Finance receivables, excluding leases Debt |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Shareholders' Equity | |
Schedule of Shareholder's equity | (In millions) Common Capital Treasury Stock Retained Accumulated Comprehensive Loss Total Shareholders’ Equity Balance at December 29, 2018 $ $ $ $ $ $ Net income — — — — Other comprehensive income — — — — Share-based compensation activity — — — — Dividends declared — — — — Purchases of common stock — — — — Balance at March 30, 2019 $ $ $ $ $ $ Balance at December 30, 2017 $ $ $ $ $ $ Adoption of ASC 606 — — — — Net income — — — — Other comprehensive income — — — — Share-based compensation activity — — — — Dividends declared — — — — Purchases of common stock — — — — Balance at March 31, 2018 $ $ $ $ $ $ |
Schedule of weighted-average shares outstanding for basic and diluted EPS | Three Months Ended (In thousands) March 30, 2019 March 31, 2018 Basic weighted-average shares outstanding Dilutive effect of stock options Diluted weighted-average shares outstanding |
Schedule of components of Accumulated Other Comprehensive Loss | (In millions) Pension and Foreign Deferred Gains (Losses) Accumulated Balance at December 29, 2018 $ $ $ $ Other comprehensive income before reclassifications — Reclassified from Accumulated other comprehensive loss — Balance at March 30, 2019 $ $ $ $ Balance at December 30, 2017 $ $ $ $ Other comprehensive income before reclassifications — Reclassified from Accumulated other comprehensive loss — — Balance at March 31, 2018 $ $ $ $ |
Schedule of before and after-tax components of other comprehensive income (loss) | March 30, 2019 March 31, 2018 (In millions) Pre-Tax Tax (Expense) After-Tax Pre-Tax Tax (Expense) After-Tax Three Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial loss* $ $ $ $ $ $ Amortization of prior service cost* — — Pension and postretirement benefits adjustments, net Deferred gains on hedge contracts: Current deferrals Reclassification adjustments — — — — Deferred gains on hedge contracts, net Foreign currency translation adjustments Total $ $ $ $ $ $ *These components of other comprehensive income are included in the computation of net periodic pension cost. See Note 14 of our 2018 Annual Report on Form 10-K for additional information. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Segment Information | |
Revenues by segment and reconciliation of segment profit to income before income taxes | Three Months Ended (In millions) March 30, 2019 March 31, 2018 Revenues Textron Aviation $ $ Bell Textron Systems Industrial Finance Total revenues $ $ Segment Profit Textron Aviation $ $ Bell Textron Systems Industrial Finance Segment profit Corporate expenses and other, net Interest expense, net for Manufacturing group Income before income taxes $ $ |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Revenues | |
Schedule of revenue by major product type, customer type and geographic location | Our revenues disaggregated by major product type are presented below: Three Months Ended (In millions) March 30, 2019 March 31, 2018 Aircraft $ $ Aftermarket parts and services Textron Aviation Military aircraft and support programs Commercial helicopters, parts and services Bell Unmanned systems Marine and land systems Simulation, training and other Textron Systems Fuel systems and functional components Specialized vehicles Tools and test equipment — Industrial Finance Total revenues $ $ Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Bell Textron Industrial Finance Total Three months ended March 30, 2019 Customer type: Commercial $ $ $ $ $ $ U.S. Government — Total revenues $ $ $ $ $ $ Geographic location: United States $ $ $ $ $ $ Europe Asia and Australia Other international Total revenues $ $ $ $ $ $ Three months ended March 31, 2018 Customer type: Commercial $ $ $ $ $ $ U.S. Government — Total revenues $ $ $ $ $ $ Geographic location: United States $ $ $ $ $ $ Europe Asia and Australia Other international Total revenues $ $ $ $ $ $ |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Share-Based Compensation | |
Compensation expense included in net income | Three Months Ended (In millions) March 30, March 31, Compensation expense $ $ Income tax benefit Total net compensation expense included in net income $ $ |
Weighted-average fair value of stock options and assumptions used in option-pricing model | Three Months Ended March 30, March 31, Fair value of options at grant date $ $ Dividend yield Expected volatility Risk-free interest rate Expected term (in years) |
Stock option activity | (Options in thousands) Number of Weighted- Outstanding at beginning of period $ Granted Exercised Forfeited or expired Outstanding at end of period $ Exercisable at end of period $ |
Restricted Stock Units | |
Share-Based Compensation | |
Unit period activity, Nonvested, Weighted average grant date fair value | Units Payable in Stock Units Payable in Cash (Shares/Units in thousands) Number of Weighted- Number of Weighted- Outstanding at beginning of period, nonvested $ $ Granted Vested Forfeited — — Outstanding at end of period, nonvested $ $ |
Fair value of awards vested and cash paid during respective periods | Three Months Ended (In millions) March 30, March 31, Fair value of awards vested $ $ Cash paid |
Performance Share Units | |
Share-Based Compensation | |
Unit period activity, Nonvested, Weighted average grant date fair value | (Units in thousands) Number of Weighted- Outstanding at beginning of period, nonvested $ Granted Outstanding at end of period, nonvested $ |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Retirement Plans | |
Components of net periodic benefit cost (credit) | Pension Benefits Postretirement Benefits (In millions) March 30, March 31, March 30, March 31, Three Months Ended Service cost $ $ $ $ Interest cost Expected return on plan assets — — Amortization of prior service cost (credit) Amortization of net actuarial loss — — Net periodic benefit cost (credit) $ $ 7 $ $ |
Basis of Presentation (Details)
Basis of Presentation (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 30, 2019USD ($)item$ / shares | Mar. 31, 2018USD ($)$ / shares | |
Number of borrowing groups | item | 2 | |
Cumulative catch-up method | ||
Cumulative catch-up adjustments | $ 31 | $ 40 |
Change in accounting estimate financial effect increase in net income | $ 23 | $ 30 |
Change in accounting estimate financial effect increase in earnings per share diluted | $ / shares | $ 0.10 | $ 0.12 |
Gross favorable adjustments | $ 53 | $ 56 |
Gross unfavorable adjustments | $ 22 | $ 16 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Update (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Jan. 01, 2019 |
Summary of Significant Accounting Policies Update | ||
Operating right-of-use assets | $ 301 | |
Operating lease liabilities | $ 304 | |
ASU 2016-02 | ||
Summary of Significant Accounting Policies Update | ||
Operating right-of-use assets | $ 307 | |
Operating lease liabilities | $ 307 |
Accounts Receivable and Finan_3
Accounts Receivable and Finance Receivables - Accounts receivable (Details) - Manufacturing group - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 |
Accounts Receivable | ||
Accounts Receivable, Gross | $ 1,088 | $ 1,051 |
Allowance for doubtful accounts | (29) | (27) |
Total | 1,059 | 1,024 |
Commercial | ||
Accounts Receivable | ||
Accounts Receivable, Gross | 946 | 885 |
U.S. Government contracts | ||
Accounts Receivable | ||
Accounts Receivable, Gross | $ 142 | $ 166 |
Accounts Receivable and Finan_4
Accounts Receivable and Finance Receivables - Finance receivables (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 |
Finance Receivables | ||
Finance receivables, gross | $ 782 | $ 789 |
Allowance for losses | (26) | (29) |
Total finance receivables, net | $ 756 | $ 760 |
Accounts Receivable and Finan_5
Accounts Receivable and Finance Receivables - Finance receivables by delinquency aging category (Details) $ in Millions | 3 Months Ended | |
Mar. 30, 2019USD ($)item | Dec. 29, 2018USD ($) | |
Finance receivables categorized based on the internally assigned credit quality | ||
Number of loan categories based on key credit quality indicators for individual loan | item | 3 | |
60 + days contractual delinquency as a percentage of finance receivables | 2.69% | 1.77% |
Less than 31 days past due | ||
Finance receivables categorized based on the internally assigned credit quality | ||
Total finance receivables | $ 691 | $ 719 |
31-60 days past due | ||
Finance receivables categorized based on the internally assigned credit quality | ||
Total finance receivables | 70 | 56 |
61- 90 days past due | ||
Finance receivables categorized based on the internally assigned credit quality | ||
Total finance receivables | 17 | 5 |
Over 90 days past due | ||
Finance receivables categorized based on the internally assigned credit quality | ||
Total finance receivables | 4 | 9 |
Performing | ||
Finance receivables categorized based on the internally assigned credit quality | ||
Total finance receivables | 708 | 704 |
Watchlist | ||
Finance receivables categorized based on the internally assigned credit quality | ||
Total finance receivables | 43 | 45 |
Nonaccrual | ||
Finance receivables categorized based on the internally assigned credit quality | ||
Total finance receivables | $ 31 | $ 40 |
Nonaccrual as a percentage of finance receivables | 3.96% | 5.07% |
Minimum | Nonaccrual | ||
Finance receivables categorized based on the internally assigned credit quality | ||
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful | 3 months |
Accounts Receivable and Finan_6
Accounts Receivable and Finance Receivables - Finance receivables and allowance for losses based on the results of impairment evaluation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 30, 2019 | Dec. 29, 2018 | |
Finance receivables | ||
Finance receivables evaluated collectively | $ 650 | $ 630 |
Finance receivables evaluated individually | 31 | 58 |
Allowance for losses based on collective evaluation | 24 | 24 |
Allowance for losses based on individual evaluation | 2 | 5 |
Impaired finance receivables with no related allowance for losses | 21 | 43 |
Impaired finance receivables with related allowance for losses | 10 | 15 |
Unpaid principal balance on impaired finance receivables | 40 | 67 |
Average recorded investment of impaired finance receivables | $ 44 | $ 61 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 |
Inventories | ||
Finished goods | $ 1,739 | $ 1,662 |
Work in process | 1,518 | 1,356 |
Raw materials and components | 790 | 800 |
Total | $ 4,047 | $ 3,818 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Apr. 01, 2019 | Mar. 30, 2019 |
Equity method investment | ||
Amount of assets held for sale reclassified to other assets | $ 145 | |
Property, plant and equipment | 64 | |
Allocated goodwill | $ 77 | |
FlightSafety Textron Aviation Training LLC | ||
Equity method investment | ||
Investment (in percentage) | 30.00% |
Warranty Liability (Details)
Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Changes in warranty liability | ||
Balance at beginning of period | $ 149 | $ 164 |
Provision | 14 | 16 |
Settlements | (22) | (22) |
Adjustments | 4 | 10 |
Balance at end of period | $ 145 | $ 168 |
Leases (Details)
Leases (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Leases | |
Operating lease - Option to extend | true |
Operating lease cost | $ 16 |
Cash paid for operating lease liabilities | $ 16 |
Maximum | |
Leases | |
Operating lease and finance lease - Remaining lease term | 30 years |
Operating lease - Option to extend the lease, term | 25 years |
Leases - Balance sheet and othe
Leases - Balance sheet and other information (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 |
Operating leases: | ||
Other assets | $ 301 | |
Other assets | us-gaap:OtherAssets | |
Other current liabilities | $ 54 | |
Other current liabilities | us-gaap:OtherLiabilitiesCurrent | |
Other liabilities | $ 250 | |
Other liabilities | us-gaap:OtherLiabilities | |
Finance leases: | ||
Property, plant and equipment, less accumulated amortization of $50 million | $ 117 | |
Property, plant and equipment, less accumulated amortization of $50 million | us-gaap:PropertyPlantAndEquipmentNet | |
Accumulated amortization | $ 4,256 | $ 4,203 |
Short-term and current portion of long-term debt | $ 7 | |
Short-term and current portion of long-term debt | us-gaap:DebtCurrent | |
Long-term debt | $ 78 | |
Long-term debt | us-gaap:LongTermDebtAndCapitalLeaseObligations | |
Weighted-average remaining lease term (in years) | ||
Finance leases | 14 years 2 months 12 days | |
Operating leases | 10 years 4 months 24 days | |
Weighted-average discount rate | ||
Finance leases | 2.72% | |
Operating leases | 4.47% | |
Finance leased assets | ||
Finance leases: | ||
Accumulated amortization | $ 50 |
Leases - Maturity of lease liab
Leases - Maturity of lease liabilities (Details) $ in Millions | Mar. 30, 2019USD ($) |
Operating Leases | |
2019 | $ 48 |
2020 | 55 |
2021 | 42 |
2022 | 35 |
2023 | 30 |
Thereafter | 177 |
Total lease payments | 387 |
Less: interest | (83) |
Total lease liabilities | 304 |
Finance Leases | |
2019 | 7 |
2020 | 9 |
2021 | 9 |
2022 | 9 |
2023 | 9 |
Thereafter | 69 |
Total lease payments | 112 |
Less: interest | (27) |
Total lease liabilities | $ 85 |
Derivative Instruments and Fa_3
Derivative Instruments and Fair Value Measurements - Assets and liabilities recorded at fair value on a recurring basis (Details) - Manufacturing group - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Dec. 29, 2018 | |
Fair value of derivative instruments | ||
Forward exchange contracts maximum maturity period | 3 years | |
Foreign currency exchange contracts | ||
Fair value of derivative instruments | ||
Notional amounts | $ 489 | $ 379 |
Level 2 | Foreign currency exchange contracts | ||
Fair value of derivative instruments | ||
Derivative Asset, Fair Value | 4 | 2 |
Derivative Liability, Fair Value | $ 7 | $ 10 |
Derivative Instruments and Fa_4
Derivative Instruments and Fair Value Measurements - Assets and liabilities not recorded at fair value (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 |
Manufacturing group | Carrying Value | ||
Financial instruments not reflected at fair value | ||
Debt, excluding leases | $ (3,105) | $ (2,996) |
Manufacturing group | Estimated Fair Value | ||
Financial instruments not reflected at fair value | ||
Debt, excluding leases | (3,135) | (2,971) |
Finance group | ||
Financial instruments not reflected at fair value | ||
Debt | (711) | (718) |
Finance group | Carrying Value | ||
Financial instruments not reflected at fair value | ||
Finance receivables, excluding leases | 579 | 582 |
Debt | (711) | (718) |
Finance group | Estimated Fair Value | ||
Financial instruments not reflected at fair value | ||
Finance receivables, excluding leases | 610 | 584 |
Debt | $ (645) | $ (640) |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity | ||
Beginning Balance | $ 5,192 | $ 5,647 |
Net income | 179 | 189 |
Other comprehensive income (loss) | 26 | 74 |
Share-based compensation activity | 43 | 41 |
Dividends declared | (5) | (5) |
Purchases of common stock | (202) | (344) |
Ending Balance | $ 5,233 | $ 5,692 |
Dividends per share of common stock | $ 0.02 | $ 0.02 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning Balance | $ 30 | $ 33 |
Ending Balance | 30 | 33 |
Capital Surplus | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning Balance | 1,646 | 1,669 |
Share-based compensation activity | 43 | 41 |
Ending Balance | 1,689 | 1,710 |
Treasury Stock | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning Balance | (129) | (48) |
Purchases of common stock | (202) | (344) |
Ending Balance | (331) | (392) |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning Balance | 5,407 | 5,368 |
Net income | 179 | 189 |
Dividends declared | (5) | (5) |
Ending Balance | 5,581 | 5,642 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning Balance | (1,762) | (1,375) |
Other comprehensive income (loss) | 26 | 74 |
Ending Balance | $ (1,736) | (1,301) |
ASC 606 | ||
Increase (Decrease) in Stockholders' Equity | ||
Adoption of ASC 606 | 90 | |
ASC 606 | Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity | ||
Adoption of ASC 606 | $ 90 |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Weighted-average shares outstanding for basic and diluted EPS | ||
Basic weighted-average shares outstanding | 234,839 | 260,497 |
Dilutive effect of stock options | 1,598 | 3,175 |
Diluted weighted-average shares outstanding | 236,437 | 263,672 |
Anti-dilutive effect of weighted average shares | 3,100 | 1,300 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of accumulated other comprehensive loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Components of Accumulated Other Comprehensive Loss | ||
Beginning of period | $ (1,762) | |
End of period | (1,736) | |
Accumulated Other Comprehensive Loss | ||
Components of Accumulated Other Comprehensive Loss | ||
Beginning of period | (1,762) | $ (1,375) |
Other comprehensive income before reclassifications | 6 | 43 |
Reclassified from Accumulated other comprehensive loss | 20 | 31 |
End of period | (1,736) | (1,301) |
Pension and Postretirement Benefits Adjustments | ||
Components of Accumulated Other Comprehensive Loss | ||
Beginning of period | (1,727) | (1,396) |
Reclassified from Accumulated other comprehensive loss | 21 | 31 |
End of period | (1,706) | (1,365) |
Foreign Currency Translation Adjustments | ||
Components of Accumulated Other Comprehensive Loss | ||
Beginning of period | (32) | 11 |
Other comprehensive income before reclassifications | 3 | 42 |
End of period | (29) | 53 |
Deferred Gains (Losses) on Hedge Contracts | ||
Components of Accumulated Other Comprehensive Loss | ||
Beginning of period | (3) | 10 |
Other comprehensive income before reclassifications | 3 | 1 |
Reclassified from Accumulated other comprehensive loss | (1) | |
End of period | $ (1) | $ 11 |
Shareholders' Equity - Before a
Shareholders' Equity - Before and after-tax components of other comprehensive income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Pension and postretirement benefits adjustments, pre-tax: | ||
Amortization of net actuarial loss, pre-tax | $ 25 | $ 38 |
Amortization of prior service cost, pre-tax | 1 | 2 |
Pension and postretirement benefits adjustments, net, pre-tax | 26 | 40 |
Deferred gains on hedge contracts, pre-tax: | ||
Current deferrals, pre-tax | 4 | 2 |
Reclassification adjustments, pre-tax | (1) | |
Deferred gains on hedge contracts, net, pre-tax | 3 | 2 |
Foreign currency translation adjustments, pre-tax: | ||
Foreign currency translation adjustments, pre-tax | 1 | 40 |
Other comprehensive income (loss), pre-tax | 30 | 82 |
Pension and postretirement benefits adjustments, tax: | ||
Amortization of net actuarial loss, tax | (5) | (9) |
Pension and postretirement benefits adjustments, net, tax | (5) | (9) |
Deferred gains on hedge contracts, tax: | ||
Current deferrals, tax | (1) | (1) |
Deferred gains on hedge contracts, net, tax | (1) | (1) |
Foreign currency translation adjustments, tax: | ||
Foreign currency translation adjustments, tax | 2 | 2 |
Other comprehensive income (loss), tax | (4) | (8) |
Pension and postretirement benefits adjustments, after-tax: | ||
Amortization of net actuarial loss, after-tax | 20 | 29 |
Amortization of prior service cost, after-tax | 1 | 2 |
Pension and postretirement benefits adjustments, net, after-tax | 21 | 31 |
Deferred gains on hedge contracts, after-tax: | ||
Current deferrals, after-tax | 3 | 1 |
Reclassification adjustments, after-tax | (1) | |
Deferred gains on hedge contracts, net, after-tax | 2 | 1 |
Foreign currency translation adjustments, after-tax: | ||
Foreign currency translation adjustments, after-tax | 3 | 42 |
Other comprehensive income | $ 26 | $ 74 |
Segment Information - Operating
Segment Information - Operating and reportable segments (Details) | 3 Months Ended |
Mar. 30, 2019segment | |
Operating and reportable business segments | |
Number of business operating segments | 5 |
Number of reportable business segments | 5 |
Segment Information - Reconcili
Segment Information - Reconciliation of segment profit to income from continuing operations before income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Revenues | ||
Total revenues | $ 3,109 | $ 3,296 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ||
Income before income taxes | 212 | 218 |
Operating Segment | ||
Segment Profit | ||
Segment Profit | 294 | 279 |
Corporate | ||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ||
Corporate expenses and other, net | (47) | (27) |
Finance | ||
Revenues | ||
Finance Revenues | 17 | 16 |
Finance | Operating Segment | ||
Segment Profit | ||
Segment Profit | 6 | 6 |
Manufacturing group | Reconciling Items | ||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ||
Interest expense, net for Manufacturing group | (35) | (34) |
Manufacturing group | Textron Aviation | ||
Revenues | ||
Total revenues | 1,134 | 1,010 |
Manufacturing group | Textron Aviation | Operating Segment | ||
Segment Profit | ||
Segment Profit | 106 | 72 |
Manufacturing group | Bell | ||
Revenues | ||
Total revenues | 739 | 752 |
Manufacturing group | Bell | Operating Segment | ||
Segment Profit | ||
Segment Profit | 104 | 87 |
Manufacturing group | Textron Systems | ||
Revenues | ||
Total revenues | 307 | 387 |
Manufacturing group | Textron Systems | Operating Segment | ||
Segment Profit | ||
Segment Profit | 28 | 50 |
Manufacturing group | Industrial | ||
Revenues | ||
Total revenues | 912 | 1,131 |
Manufacturing group | Industrial | Operating Segment | ||
Segment Profit | ||
Segment Profit | 50 | 64 |
Finance group | Finance | ||
Revenues | ||
Finance Revenues | $ 17 | $ 16 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Revenues | ||
Total revenues | $ 3,109 | $ 3,296 |
United States | ||
Revenues | ||
Total revenues | 2,021 | 1,964 |
Europe | ||
Revenues | ||
Total revenues | 538 | 569 |
Asia and Australia | ||
Revenues | ||
Total revenues | 199 | 330 |
Other international | ||
Revenues | ||
Total revenues | 351 | 433 |
Commercial | ||
Revenues | ||
Total revenues | 2,318 | 2,492 |
U.S. Government | ||
Revenues | ||
Total revenues | 791 | 804 |
Textron Aviation | ||
Revenues | ||
Total revenues | 1,134 | 1,010 |
Textron Aviation | United States | ||
Revenues | ||
Total revenues | 789 | 665 |
Textron Aviation | Europe | ||
Revenues | ||
Total revenues | 183 | 146 |
Textron Aviation | Asia and Australia | ||
Revenues | ||
Total revenues | 23 | 81 |
Textron Aviation | Other international | ||
Revenues | ||
Total revenues | 139 | 118 |
Textron Aviation | Commercial | ||
Revenues | ||
Total revenues | 1,092 | 973 |
Textron Aviation | U.S. Government | ||
Revenues | ||
Total revenues | 42 | 37 |
Textron Aviation | Aircraft | ||
Revenues | ||
Total revenues | 766 | 634 |
Textron Aviation | Aftermarket parts and services | ||
Revenues | ||
Total revenues | 368 | 376 |
Bell | ||
Revenues | ||
Total revenues | 739 | 752 |
Bell | United States | ||
Revenues | ||
Total revenues | 578 | 509 |
Bell | Europe | ||
Revenues | ||
Total revenues | 20 | 27 |
Bell | Asia and Australia | ||
Revenues | ||
Total revenues | 82 | 127 |
Bell | Other international | ||
Revenues | ||
Total revenues | 59 | 89 |
Bell | Commercial | ||
Revenues | ||
Total revenues | 230 | 252 |
Bell | U.S. Government | ||
Revenues | ||
Total revenues | 509 | 500 |
Bell | Military aircraft and support programs | ||
Revenues | ||
Total revenues | 508 | 487 |
Bell | Commercial helicopters, parts and services | ||
Revenues | ||
Total revenues | 231 | 265 |
Textron Systems | ||
Revenues | ||
Total revenues | 307 | 387 |
Textron Systems | United States | ||
Revenues | ||
Total revenues | 257 | 287 |
Textron Systems | Europe | ||
Revenues | ||
Total revenues | 23 | 12 |
Textron Systems | Asia and Australia | ||
Revenues | ||
Total revenues | 16 | 28 |
Textron Systems | Other international | ||
Revenues | ||
Total revenues | 11 | 60 |
Textron Systems | Commercial | ||
Revenues | ||
Total revenues | 74 | 127 |
Textron Systems | U.S. Government | ||
Revenues | ||
Total revenues | 233 | 260 |
Textron Systems | Unmanned systems | ||
Revenues | ||
Total revenues | 134 | 170 |
Textron Systems | Marine and land systems | ||
Revenues | ||
Total revenues | 48 | 92 |
Textron Systems | Simulation, training and other | ||
Revenues | ||
Total revenues | 125 | 125 |
Industrial | ||
Revenues | ||
Total revenues | 912 | 1,131 |
Industrial | United States | ||
Revenues | ||
Total revenues | 389 | 496 |
Industrial | Europe | ||
Revenues | ||
Total revenues | 311 | 383 |
Industrial | Asia and Australia | ||
Revenues | ||
Total revenues | 77 | 92 |
Industrial | Other international | ||
Revenues | ||
Total revenues | 135 | 160 |
Industrial | Commercial | ||
Revenues | ||
Total revenues | 905 | 1,124 |
Industrial | U.S. Government | ||
Revenues | ||
Total revenues | 7 | 7 |
Industrial | Fuel systems and functional components | ||
Revenues | ||
Total revenues | 594 | 655 |
Industrial | Specialized vehicles | ||
Revenues | ||
Total revenues | 318 | 348 |
Industrial | Tools and test equipment | ||
Revenues | ||
Total revenues | 128 | |
Finance | ||
Revenues | ||
Finance Revenue | 17 | 16 |
Finance | United States | ||
Revenues | ||
Finance Revenue | 8 | 7 |
Finance | Europe | ||
Revenues | ||
Finance Revenue | 1 | 1 |
Finance | Asia and Australia | ||
Revenues | ||
Finance Revenue | 1 | 2 |
Finance | Other international | ||
Revenues | ||
Finance Revenue | 7 | 6 |
Finance | Commercial | ||
Revenues | ||
Finance Revenue | $ 17 | $ 16 |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligations (Details) $ in Billions | Mar. 30, 2019USD ($) |
Revenues | |
Remaining performance obligations | $ 9.7 |
Revenues - Remaining Performa_2
Revenues - Remaining Performance Obligations & Revenue Expected to be recognized (Details) | Mar. 30, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-02 | |
Remaining Performance Obligation, Expected Timing of Satisfaction | |
Percentage of remaining performance obligation expected to be recognized in period | 70.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-31 | |
Remaining Performance Obligation, Expected Timing of Satisfaction | |
Percentage of remaining performance obligation expected to be recognized in period | 23.00% |
Revenues - Contract Assets and
Revenues - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Dec. 29, 2018 | |
Contract Assets and Liabilities | |||
Contract assets | $ 477 | $ 461 | |
Contract liabilities | 927 | $ 974 | |
Revenue recognized included in contract liabilities | $ 311 | $ 322 |
Share-Based Compensation - Comp
Share-Based Compensation - Compensation expense and stock options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Compensation expense included in net income | ||
Compensation expense | $ 44 | $ 33 |
Income tax benefit | (11) | (7) |
Total net compensation expense included in net income | $ 33 | $ 26 |
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 | $ 14.62 | $ 15.83 |
Dividend yield (as a percent) | 0.20% | 0.10% |
Expected volatility (as a percent) | 26.60% | 26.60% |
Risk-free interest rate (as a percent) | 2.50% | 2.60% |
Expected term (in years) | 4 years 8 months 12 days | 4 years 8 months 12 days |
Number of Options | ||
Outstanding at beginning of period (in shares) | 8,284 | |
Granted | 1,583 | |
Exercised | (558) | |
Forfeited or expired | (75) | |
Outstanding at end of period (in shares) | 9,234 | |
Exercisable at end of period (in shares) | 6,182 | |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 40.58 | |
Granted | 54.43 | |
Exercised | (25.06) | |
Forfeited or expired | (47.43) | |
Outstanding at end of period (in dollars per share) | 43.84 | |
Exercisable at end of period (in dollars per share) | $ 38.45 | |
Additional information | ||
Aggregate intrinsic value of outstanding options | $ 80 | |
Weighted-average remaining contractual life of outstanding stock options | 6 years | |
Aggregate intrinsic value of exercisable options | $ 79 | |
Weighted-average remaining contractual life of exercisable options | 5 years | |
Aggregate intrinsic value of options exercised | $ 16 | $ 8 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted stock units payable in stock and cash (Details) shares in Thousands | 3 Months Ended |
Mar. 30, 2019$ / sharesshares | |
Restricted Stock Units Payable in Stock | |
Number of Shares/Units | |
Outstanding at beginning of period, nonvested (in shares) | shares | 598 |
Granted | shares | 168 |
Vested | shares | (164) |
Outstanding at end of period, nonvested (in shares) | shares | 602 |
Weighted-Average Grant Date Fair Value | |
Outstanding at beginning of period, nonvested (in dollars per share) | $ / shares | $ 45.22 |
Granted | $ / shares | 54.43 |
Vested | $ / shares | (39.34) |
Outstanding at end of period, nonvested (in dollars per share) | $ / shares | $ 49.40 |
Restricted Stock Units Payable in Cash | |
Number of Shares/Units | |
Outstanding at beginning of period, nonvested (in shares) | shares | 1,143 |
Granted | shares | 327 |
Vested | shares | (294) |
Forfeited | shares | (30) |
Outstanding at end of period, nonvested (in shares) | shares | 1,146 |
Weighted-Average Grant Date Fair Value | |
Outstanding at beginning of period, nonvested (in dollars per share) | $ / shares | $ 45.48 |
Granted | $ / shares | 54.43 |
Vested | $ / shares | (39.27) |
Forfeited | $ / shares | (46.76) |
Outstanding at end of period, nonvested (in dollars per share) | $ / shares | $ 49.59 |
Share-Based Compensation - Fair
Share-Based Compensation - Fair value of restricted stock awards vested and cash paid for restricted stock awards (Details) - Restricted Stock Units - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Share-Based Compensation | ||
Fair value of awards vested | $ 22 | $ 24 |
Cash paid | $ 16 | $ 18 |
Share-Based Compensation - Perf
Share-Based Compensation - Performance share units (Details) - Performance Share Units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Share-Based Compensation | ||
Cash paid | $ 10 | $ 11 |
Number of Units | ||
Outstanding at beginning of period, nonvested (in shares) | 404 | |
Granted | 262 | |
Outstanding at end of period, nonvested (in shares) | 666 | |
Weighted-Average Grant Date Fair Value | ||
Outstanding at beginning of period, nonvested (in dollars per share) | $ 53.63 | |
Granted | 54.43 | |
Outstanding at end of period, nonvested (in dollars per share) | $ 53.95 |
Retirement Plans - Net periodic
Retirement Plans - Net periodic benefit cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Pension Benefits | ||
Net periodic benefit cost | ||
Service cost | $ 23 | $ 26 |
Interest cost | 82 | 77 |
Expected return on plan assets | (139) | (138) |
Amortization of prior service cost (credit) | 3 | 4 |
Amortization of net actuarial loss | 25 | 38 |
Net periodic benefit cost (credit) | (6) | 7 |
Postretirement Benefits Other Than Pensions | ||
Net periodic benefit cost | ||
Service cost | 1 | 1 |
Interest cost | 2 | 2 |
Amortization of prior service cost (credit) | (2) | (2) |
Net periodic benefit cost (credit) | $ 1 | $ 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Dec. 29, 2018 | |
Income Taxes | |||
Effective income tax rate (as a percent) | 15.60% | 13.30% | |
U.S. federal statutory income tax rate (as a percent) | 21.00% | 21.00% | |
Discrete tax benefit | $ 12 | ||
Unrecognized tax benefits | $ 175 | $ 141 |