Textron (TXT) 10-Q25 Apr 242024 Q1 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	3 Months Ended
Cover - shares	Mar. 30, 2024	Apr. 12, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 30, 2024
Document Transition Report	false
Entity File Number	1-5480
Entity Registrant Name	Textron Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	05-0315468
Entity Address, Address Line One	40 Westminster Street
Entity Address, City or Town	Providence
Entity Address, State or Province	RI
Entity Address, Postal Zip Code	02903
City Area Code	401
Local Phone Number	421-2800
Title of 12(b) Security	Common stock, $0.125 par value
Trading Symbol	TXT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		190,698,993
Entity Central Index Key	0000217346
Current Fiscal Year End Date	--12-28
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Revenues
Total revenues	$ 3,135	$ 3,024
Costs, expenses and other
Selling and administrative expense	316	305
Interest expense, net	20	20
Special charges	14	0
Non-service components of pension and postretirement income, net	(66)	(59)
Total costs, expenses and other	2,898	2,797
Income before income taxes	237	227
Income tax expense	36	36
Net income	$ 201	$ 191
Earnings per share
Basic (in dollars per share)	$ 1.04	$ 0.93
Diluted (in dollars per share)	$ 1.03	$ 0.92
Manufacturing group
Costs, expenses and other
Net income	$ 187	$ 185
Finance group
Revenues
Total revenues	15	12
Costs, expenses and other
Net income	14	6
Product
Costs, expenses and other
Cost of products/services sold	2,069	2,176
Product \| Manufacturing group
Revenues
Total revenues	2,432	2,550
Service
Costs, expenses and other
Cost of products/services sold	545	355
Service \| Manufacturing group
Revenues
Total revenues	$ 688	$ 462

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 201	$ 191
Other comprehensive income (loss), net of tax
Pension and postretirement benefits adjustments, net of reclassifications	1	0
Foreign currency translation adjustments	(33)	28
Deferred losses on hedge contracts, net of reclassifications	(5)	(2)
Other comprehensive income (loss)	(37)	26
Comprehensive income	$ 164	$ 217

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) shares in Thousands, $ in Millions	Mar. 30, 2024	Dec. 30, 2023
Assets
Inventories	$ 4,267	$ 3,914
Finance receivables, net	582	585
Total assets	16,414	16,856
Liabilities
Total liabilities	9,483	9,869
Shareholders’ equity
Common stock	25	24
Capital surplus	2,012	1,910
Treasury stock	(484)	(165)
Retained earnings	6,059	5,862
Accumulated other comprehensive loss	(681)	(644)
Total shareholders’ equity	6,931	6,987
Total liabilities and shareholders’ equity	$ 16,414	$ 16,856
Common shares outstanding (in shares)	191,101	192,898
Manufacturing group
Assets
Cash and equivalents	$ 1,388	$ 2,121
Accounts receivable, net	894	868
Inventories	4,267	3,914
Other current assets	755	857
Total current assets	7,304	7,760
Property, plant and equipment, less accumulated depreciation and amortization of $5,286 and $5,247, respectively	2,451	2,477
Goodwill	2,288	2,295
Other assets	3,692	3,663
Total assets	15,735	16,195
Liabilities
Current portion of long-term debt	357	357
Accounts payable	1,136	1,023
Other current liabilities	2,902	2,998
Total current liabilities	4,395	4,378
Other liabilities	1,850	1,904
Long-term debt	2,818	3,169
Total liabilities	9,063	9,451
Finance group
Assets
Cash and equivalents	78	60
Finance receivables, net	582	585
Other assets	19	16
Total assets	679	661
Liabilities
Other liabilities	78	70
Debt	342	348
Total liabilities	$ 420	$ 418

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 30, 2024	Dec. 30, 2023
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization	$ 5,286	$ 5,247

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Cash flows from operating activities
Net income	$ 201	$ 191
Non-cash items:
Depreciation and amortization	88	92
Deferred income taxes	(16)	(32)
Other, net	33	39
Changes in assets and liabilities:
Accounts receivable, net	(34)	(69)
Inventories	(350)	(380)
Other assets	100	128
Accounts payable	121	261
Other liabilities	(159)	(74)
Income taxes, net	39	50
Pension, net	(56)	(51)
Captive finance receivables, net	22	6
Other operating activities, net	4	2
Net cash provided by (used in) operating activities	(7)	163
Cash flows from investing activities
Capital expenditures	(66)	(62)
Net proceeds from corporate-owned life insurance policies	3	20
Proceeds from sale of property, plant and equipment	3	0
Finance receivables repaid	8	12
Finance receivables originated	(11)	0
Other investing activities, net	0	1
Net cash provided by (used in) investing activities	(63)	(29)
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	(365)	(17)
Purchases of Textron common stock	(317)	(377)
Dividends paid	(4)	(4)
Proceeds from options exercised	63	27
Other financing activities, net	(14)	(5)
Net cash used in financing activities	(637)	(376)
Effect of exchange rate changes on cash and equivalents	(8)	6
Net increase (decrease) in cash and equivalents	(715)	(236)
Cash and equivalents at beginning of period	2,181	2,035
Cash and equivalents at end of period	$ 1,466	$ 1,799

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Unaudited) - Manufacturing Group and Finance Group - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Cash flows from operating activities
Net income	$ 201	$ 191
Non-cash items:
Depreciation and amortization	88	92
Deferred income taxes	(16)	(32)
Other, net	33	39
Changes in assets and liabilities:
Accounts receivable, net	(34)	(69)
Inventories	(350)	(380)
Other assets	100	128
Accounts payable	121	261
Other liabilities	(159)	(74)
Income taxes, net	39	50
Pension, net	(56)	(51)
Other operating activities, net	4	2
Net cash provided by (used in) operating activities	(7)	163
Cash flows from investing activities
Capital expenditures	(66)	(62)
Net proceeds from corporate-owned life insurance policies	3	20
Proceeds from sale of property, plant and equipment	3	0
Finance receivables repaid	8	12
Finance receivables originated	(11)	0
Other investing activities, net	0	1
Net cash provided by (used in) investing activities	(63)	(29)
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	(365)	(17)
Purchases of Textron common stock	(317)	(377)
Dividends paid	(4)	(4)
Proceeds from options exercised	63	27
Other financing activities, net	(14)	(5)
Net cash used in financing activities	(637)	(376)
Effect of exchange rate changes on cash and equivalents	(8)	6
Net increase (decrease) in cash and equivalents	(715)	(236)
Cash and equivalents at beginning of period	2,181	2,035
Cash and equivalents at end of period	1,466	1,799
Manufacturing group
Cash flows from operating activities
Net income	187	185
Non-cash items:
Depreciation and amortization	88	92
Deferred income taxes	(16)	(32)
Other, net	44	41
Changes in assets and liabilities:
Accounts receivable, net	(34)	(69)
Inventories	(350)	(380)
Other assets	100	121
Accounts payable	121	261
Other liabilities	(153)	(65)
Income taxes, net	35	48
Pension, net	(56)	(51)
Other operating activities, net	4	2
Net cash provided by (used in) operating activities	(30)	153
Cash flows from investing activities
Capital expenditures	(66)	(62)
Net proceeds from corporate-owned life insurance policies	3	20
Proceeds from sale of property, plant and equipment	3	0
Finance receivables repaid	0	0
Finance receivables originated	0	0
Other investing activities, net	0	0
Net cash provided by (used in) investing activities	(60)	(42)
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	(352)	(2)
Purchases of Textron common stock	(317)	(377)
Dividends paid	(4)	(4)
Proceeds from options exercised	63	27
Other financing activities, net	(25)	(5)
Net cash used in financing activities	(635)	(361)
Effect of exchange rate changes on cash and equivalents	(8)	6
Net increase (decrease) in cash and equivalents	(733)	(244)
Cash and equivalents at beginning of period	2,121	1,963
Cash and equivalents at end of period	1,388	1,719
Finance group
Cash flows from operating activities
Net income	14	6
Non-cash items:
Depreciation and amortization	0	0
Deferred income taxes	0	0
Other, net	(11)	(2)
Changes in assets and liabilities:
Accounts receivable, net	0	0
Inventories	0	0
Other assets	0	7
Accounts payable	0	0
Other liabilities	(6)	(9)
Income taxes, net	4	2
Pension, net	0	0
Other operating activities, net	0	0
Net cash provided by (used in) operating activities	1	4
Cash flows from investing activities
Capital expenditures	0	0
Net proceeds from corporate-owned life insurance policies	0	0
Proceeds from sale of property, plant and equipment	0	0
Finance receivables repaid	47	35
Finance receivables originated	(28)	(17)
Other investing activities, net	0	1
Net cash provided by (used in) investing activities	19	19
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt	(13)	(15)
Purchases of Textron common stock	0	0
Dividends paid	0	0
Proceeds from options exercised	0	0
Other financing activities, net	11	0
Net cash used in financing activities	(2)	(15)
Effect of exchange rate changes on cash and equivalents	0	0
Net increase (decrease) in cash and equivalents	18	8
Cash and equivalents at beginning of period	60	72
Cash and equivalents at end of period	$ 78	$ 80

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Our Consolidated Financial Statements include the accounts of Textron Inc. (Textron) and its majority-owned subsidiaries. We have prepared these unaudited consolidated financial statements in accordance with accounting principles generally accepted in the U.S. for interim financial information. Accordingly, these interim financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. The consolidated interim financial statements included in this quarterly report should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 30, 2023. In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements. All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group. Use of Estimates We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined. Contract Estimates For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable.

Accounts Receivable and Finance

Accounts Receivable and Finance Receivables	3 Months Ended
Accounts Receivable and Finance Receivables	Mar. 30, 2024
Receivables [Abstract]
Accounts Receivable and Finance Receivables	Accounts Receivable and Finance Receivables Accounts Receivable Accounts receivable is composed of the following: (In millions) March 30, December 30, Commercial $ 816 $ 831 U.S. Government contracts 102 63 918 894 Allowance for credit losses (24) (26) Total accounts receivable, net $ 894 $ 868 Finance Receivables Finance receivables are presented in the following table: (In millions) March 30, December 30, Finance receivables $ 603 $ 609 Allowance for credit losses (21) (24) Total finance receivables, net $ 582 $ 585 Finance Receivable Portfolio Quality We internally assess the quality of our finance receivables based on a number of key credit quality indicators and statistics such as delinquency, loan balance to estimated collateral value and the financial strength of individual borrowers and guarantors. Because many of these indicators are difficult to apply across an entire class of receivables, we evaluate individual loans on a quarterly basis and classify these loans into three categories based on the key credit quality indicators for the individual loan. These three categories are performing, watchlist and nonaccrual. We classify finance receivables as nonaccrual if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically classify accounts as nonaccrual once they are contractually delinquent by more than three months unless collection of principal and interest is not doubtful. Accounts are classified as watchlist when credit quality indicators have deteriorated as compared with typical underwriting criteria, and we believe collection of full principal and interest is probable but not certain. All other finance receivables that do not meet the watchlist or nonaccrual categories are classified as performing. We measure delinquency based on the contractual payment terms of our finance receivables. In determining the delinquency aging category of an account, any/all principal and interest received is applied to the most past-due principal and/or interest amounts due. If a significant portion of the contractually due payment is delinquent, the entire finance receivable balance is reported in accordance with the most past-due delinquency aging category. Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) March 30, December 30, Performing $ 568 $ 571 Watchlist 22 23 Nonaccrual 13 15 Nonaccrual as a percentage of finance receivables 2.16% 2.46% Current and less than 31 days past due $ 582 $ 589 31-60 days past due 18 16 61-90 days past due — — Over 90 days past due 3 4 60+ days contractual delinquency as a percentage of finance receivables 0.50% 0.66% At March 30, 2024, 35% of our performing finance receivables were originated since the beginning of 2022 and 30% were originated from 2019 to 2021 with the remainder prior to 2019. For finance receivables categorized as watchlist, 100% were originated from 2020 to 2021, and for nonaccrual, 100% were originated prior to 2020. On a quarterly basis, we evaluate individual larger balance accounts for impairment. A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality indicators described above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of principal and interest remains probable, but the account’s original terms have been, or are expected to be, significantly modified. If the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification. A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles. (In millions) March 30, December 30, Finance receivables evaluated collectively $ 505 $ 508 Finance receivables evaluated individually 13 15 Allowance for credit losses based on collective evaluation 18 21 Allowance for credit losses based on individual evaluation 3 3 Impaired finance receivables with specific allowance for credit losses $ 9 $ 11 Impaired finance receivables with no specific allowance for credit losses 4 4 Unpaid principal balance of impaired finance receivables 20 25 Allowance for credit losses on impaired finance receivables 3 3 Average recorded investment of impaired finance receivables 14 27

Inventories

Inventories	3 Months Ended
Inventories	Mar. 30, 2024
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are composed of the following: (In millions) March 30, December 30, Finished goods $ 1,148 $ 1,072 Work in process 1,976 1,736 Raw materials and components 1,143 1,106 Total inventories $ 4,267 $ 3,914

Accounts Payable and Warranty L

Accounts Payable and Warranty Liability	3 Months Ended
Accounts Payable and Warranty Liability	Mar. 30, 2024
Payables and Accruals [Abstract]
Accounts Payable and Warranty Liability	Accounts Payable and Warranty Liability Accounts Payable Supplier Financing Arrangement We have a financing arrangement with one of our suppliers for a maximum amount of $175 million that extends payment terms for up to 190 days from the receipt of goods and provides for the supplier to be paid by a financial institution earlier than maturity. This financing arrangement expires in June 2024. As of March 30, 2024 and December 30, 2023, the amount due under this supplier financing arrangement was $135 million and $125 million, respectively. Warranty Liability Changes in our warranty liability are as follows: Three Months Ended (In millions) March 30, April 1, Beginning of period $ 172 $ 149 Provision 17 15 Settlements (18) (18) Adjustments* (1) 3 End of period $ 170 $ 149 * Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Leases

Leases	3 Months Ended
Leases	Mar. 30, 2024
Leases [Abstract]
Leases	Leases We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide through operating leases. Our operating leases have remaining lease terms up to 25 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $18 million and $17 million in the first quarter of 2024 and 2023, respectively. Variable and short-term lease costs were not significant. Cash paid for operating leases totaled $18 million and $17 million in the first quarter of 2024 and 2023, respectively, and is classified in cash flows from operating activities. Noncash transactions totaled $25 million and $15 million in the first quarter of 2024 and 2023, respectively, reflecting the recognition of operating lease assets and liabilities for new or extended leases. Balance sheet and other information related to our operating leases is as follows: (Dollars in millions) March 30, December 30, Other assets $ 382 $ 371 Other current liabilities 57 55 Other liabilities 334 326 Weighted-average remaining lease term (in years) 10.1 10.3 Weighted-average discount rate 4.69% 4.70% At March 30, 2024, maturities of our operating lease liabilities on an undiscounted basis totaled $55 million for the remainder of 2024, $66 million for 2025, $52 million for 2026, $44 million for 2027, $42 million for 2028 and $242 million thereafter.

Derivative Instruments and Fair

Derivative Instruments and Fair Value Measurements	3 Months Ended
Derivative Instruments and Fair Value Measurements	Mar. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Fair Value Measurements	Derivative Instruments and Fair Value Measurements We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We prioritize the assumptions that market participants would use in pricing the asset or liability into a three-tier fair value hierarchy. This fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs in which little or no market data exist, requiring companies to develop their own assumptions. Observable inputs that do not meet the criteria of Level 1, which include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets and liabilities in markets that are not active, are categorized as Level 2. Level 3 inputs are those that reflect our estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Valuation techniques for assets and liabilities measured using Level 3 inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data. These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain. Assets and Liabilities Recorded at Fair Value on a Recurring Basis We manufacture and sell our products in a number of countries throughout the world, and, therefore, we are exposed to movements in foreign currency exchange rates. We primarily utilize foreign currency exchange contracts with maturities of no more than three years to manage this volatility. These contracts qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales, inventory purchases and overhead expenses. Net gains and losses recognized in earnings and Accumulated other comprehensive loss on cash flow hedges, including gains and losses related to hedge ineffectiveness, were not significant in the periods presented. Our foreign currency exchange contracts are measured at fair value using the market method valuation technique. The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers. These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2. At March 30, 2024 and December 30, 2023, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $681 million and $478 million, respectively. At March 30, 2024, the fair value amounts of our foreign currency exchange contracts were a $2 million asset and a $10 million liability. At December 30, 2023, the fair value amount of our foreign currency exchange contracts were a $4 million asset and a $3 million liability. Our Finance group enters into interest rate swap agreements to mitigate certain exposures to fluctuations in interest rates. By using these contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. The fair value of our interest rate swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2. At March 30, 2024 and December 30, 2023, we had interest rate swap agreements related to our Floating Rate Junior Subordinated Notes for an aggregate notional amount of $185 million that effectively converts the variable-rate interest for these Notes to a weighted-average fixed rate of 5.17%; these agreements have maturities ranging from August 2025 to August 2028. At March 30, 2024 and December 30, 2023, we had an interest rate swap agreement with a notional amount of $25 million that matures in June 2025 and effectively converts variable-rate interest on a term loan to a fixed rate of 4.13%. The fair value of our outstanding interest rate swap agreements was a $6 million asset at March 30, 2024 and a $4 million asset at December 30, 2023. Assets and Liabilities Not Recorded at Fair Value The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows: March 30, 2024 December 30, 2023 Carrying Estimated Carrying Estimated (In millions) Value Fair Value Value Fair Value Manufacturing group Debt, excluding leases $ (3,168) $ (2,965) $ (3,520) $ (3,342) Finance group Finance receivables, excluding leases 416 422 417 423 Debt (342) (305) (348) (293) Fair value for the Manufacturing group debt is determined using market observable data for similar transactions (Level 2). The fair value for the Finance group debt was determined primarily based on discounted cash flow analyses using observable market inputs from debt with similar duration, subordination and credit default expectations (Level 2). Fair value estimates for finance receivables were determined based on internally developed discounted cash flow models primarily utilizing significant unobservable inputs (Level 3), which include estimates of the rate of return, financing cost, capital structure and/or discount rate expectations of current market participants combined with estimated loan cash flows based on credit losses, payment rates and expectations of borrowers’ ability to make payments on a timely basis.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
Shareholders' Equity	Mar. 30, 2024
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity A reconciliation of Shareholders’ equity is presented below: (In millions) Common Capital Treasury Retained Accumulated Total Three months ended March 30, 2024 Beginning of period $ 24 $ 1,910 $ (165) $ 5,862 $ (644) $ 6,987 Net income — — — 201 — 201 Other comprehensive loss — — — — (37) (37) Share-based compensation activity 1 102 — — — 103 Dividends declared — — — (4) — (4) Purchases of common stock, including excise tax* — — (319) — — (319) End of period $ 25 $ 2,012 $ (484) $ 6,059 $ (681) $ 6,931 Three months ended April 1, 2023 Beginning of period $ 26 $ 1,880 $ (84) $ 5,903 $ (612) $ 7,113 Net income — — — 191 — 191 Other comprehensive income — — — — 26 26 Share-based compensation activity — 62 — — — 62 Dividends declared — — — (4) — (4) Purchases of common stock, including excise tax* — — (380) — — (380) End of period $ 26 $ 1,942 $ (464) $ 6,090 $ (586) $ 7,008 Includes amounts accrued for excise tax imposed on common share repurchases of $2 million for the first quarter of 2024 and $3 million for the first quarter of 2023. Dividends per share of common stock were $0.02 for both the first quarter of 2024 and 2023. Earnings Per Share We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period. Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options. The weighted-average shares outstanding for basic and diluted EPS are as follows: Three Months Ended (In thousands) March 30, April 1, Basic weighted-average shares outstanding 192,800 204,835 Dilutive effect of stock options 2,060 2,176 Diluted weighted-average shares outstanding 194,860 207,011 Stock options to purchase 1.0 million and 2.0 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for the first quarter of 2024 and 2023, respectively, as their effect would have been anti-dilutive. Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) The components of Accumulated other comprehensive loss are presented below: (In millions) Pension and Foreign Deferred Accumulated Balance at December 30, 2023 $ (598) $ (49) $ 3 $ (644) Other comprehensive loss before reclassifications — (33) (5) (38) Reclassified from Accumulated other comprehensive loss 1 — — 1 Balance at March 30, 2024 $ (597) $ (82) $ (2) $ (681) Balance at December 31, 2022 $ (516) $ (94) $ (2) $ (612) Other comprehensive income before reclassifications — 28 (3) 25 Reclassified from Accumulated other comprehensive loss — — 1 1 Balance at April 1, 2023 $ (516) $ (66) $ (4) $ (586) The before and after-tax components of Other comprehensive income (loss) are presented below: March 30, 2024 April 1, 2023 (In millions) Pre-Tax Tax After-tax Pre-Tax Tax After-tax Three Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial gain $ (1) $ — $ (1) $ (2) $ 1 $ (1) Amortization of prior service cost* 2 — 2 2 (1) 1 Pension and postretirement benefits adjustments, net 1 — 1 — — — Foreign currency translation adjustments (33) — (33) 28 — 28 Deferred losses on hedge contracts: Current deferrals (7) 2 (5) (4) 1 (3) Reclassification adjustments (1) 1 — 2 (1) 1 Deferred losses on hedge contracts, net (8) 3 (5) (2) — (2) Total $ (40) $ 3 $ (37) $ 26 $ — $ 26 *These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2023 Annual Report on Form 10-K for additional information.

Segment Information

Segment Information	3 Months Ended
Segment Information	Mar. 30, 2024
Segment Reporting [Abstract]
Segment Information	Segment Information We operate in, and reported financial information for, the following six operating segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation and Finance. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes the non-service components of pension and postretirement income, net; LIFO inventory provision; intangible asset amortization; interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense. Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below: Three Months Ended (In millions) March 30, April 1, Revenues Textron Aviation $ 1,188 $ 1,149 Bell 727 621 Textron Systems 306 306 Industrial 892 932 Textron eAviation 7 4 Finance 15 12 Total revenues $ 3,135 $ 3,024 Segment Profit Textron Aviation $ 143 $ 125 Bell 80 60 Textron Systems 38 34 Industrial 29 41 Textron eAviation (18) (9) Finance 18 8 Segment profit 290 259 Corporate expenses and other, net (62) (39) Interest expense, net for Manufacturing group (15) (17) LIFO inventory provision (20) (25) Intangible asset amortization (8) (10) Special charges (14) — Non-service components of pension and postretirement income, net 66 59 Income before income taxes $ 237 $ 227

Revenues

Revenues	3 Months Ended
Revenues	Mar. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Disaggregation of Revenues Our revenues disaggregated by major product type are presented below: Three Months Ended (In millions) March 30, April 1, Aircraft $ 732 $ 718 Aftermarket parts and services 456 431 Textron Aviation $ 1,188 $ 1,149 Military aircraft and support programs 480 385 Commercial helicopters, parts and services 247 236 Bell $ 727 $ 621 Textron Systems $ 306 $ 306 Fuel systems and functional components 488 488 Specialized vehicles 404 444 Industrial $ 892 $ 932 Textron eAviation $ 7 $ 4 Finance $ 15 $ 12 Total revenues $ 3,135 $ 3,024 Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Bell Textron Industrial Textron eAviation Finance Total Three months ended March 30, 2024 Customer type: Commercial $ 1,155 $ 239 $ 72 $ 884 $ 7 $ 15 $ 2,372 U.S. Government 33 488 234 8 — — 763 Total revenues $ 1,188 $ 727 $ 306 $ 892 $ 7 $ 15 $ 3,135 Geographic location: United States $ 950 $ 559 $ 274 $ 460 $ 4 $ 4 $ 2,251 Europe 62 23 13 198 2 5 303 Other international 176 145 19 234 1 6 581 Total revenues $ 1,188 $ 727 $ 306 $ 892 $ 7 $ 15 $ 3,135 Three months ended April 1, 2023 Customer type: Commercial $ 1,107 $ 232 $ 74 $ 927 $ 4 $ 12 $ 2,356 U.S. Government 42 389 232 5 — — 668 Total revenues $ 1,149 $ 621 $ 306 $ 932 $ 4 $ 12 $ 3,024 Geographic location: United States $ 836 $ 460 $ 275 $ 494 $ 1 $ 4 $ 2,070 Europe 66 19 14 204 2 — 305 Other international 247 142 17 234 1 8 649 Total revenues $ 1,149 $ 621 $ 306 $ 932 $ 4 $ 12 $ 3,024 Remaining Performance Obligations Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our contracts that we expect to recognize as revenues in future periods when we perform under the contracts. These remaining obligations exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At March 30, 2024, we had $13.7 billion in remaining performance obligations of which we expect to recognize revenues of approximately 85% through 2025, an additional 14% through 2027, and the balance thereafter. Contract Assets and Liabilities

Share-Based Compensation

Share-Based Compensation	3 Months Ended
Share-Based Compensation	Mar. 30, 2024
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation Under our share-based compensation plan, we have authorization to provide awards to selected employees and non-employee directors in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, performance stock, performance share units and other awards. Compensation expense included in net income for our share-based compensation plan is as follows: Three Months Ended (In millions) March 30, April 1, Compensation expense $ 77 $ 45 Income tax benefit (19) (11) Total compensation expense included in net income $ 58 $ 34 Compensation expense included stock option expense of $15 million and $14 million in the first quarter of 2024 and 2023, respectively. We typically grant stock appreciation rights to selected non-U.S. employees. At March 30, 2024, outstanding stock appreciation rights totaled 409,232 with a weighted-average exercise price of $62.60 and a weighted-average remaining contractual life of 6.6 years; these units had an intrinsic value of $14 million, compared to $10 million at April 1, 2023. Stock Options Options to purchase our shares have a maximum term of ten years and generally vest ratably over a three-year period. Stock option compensation cost is calculated under the fair value approach using the Black-Scholes option-pricing model to determine the fair value of options granted on the date of grant. The expected volatility used in this model is based on historical volatilities and implied volatilities from traded options on our common stock. The expected term is based on historical option exercise data, which is adjusted to reflect any anticipated changes in expected behavior. We grant options annually on the first day of March. The assumptions used in our option-pricing model for these grants and the weighted-average fair value for these options are as follows: March 1, March 1, Fair value of options at grant date $ 27.69 $ 23.83 Dividend yield 0.1% 0.1% Expected volatility 27.2% 29.4% Risk-free interest rate 4.3% 4.2% Expected term (in years) 4.8 4.8 The stock option activity during the first quarter of 2024 is provided below: (Options in thousands) Number of Weighted- Outstanding at December 30, 2023 7,515 $ 54.25 Granted 956 88.68 Exercised (1,425) (44.98) Forfeited or expired (8) (71.23) Outstanding at March 30, 2024 7,038 $ 60.78 Exercisable at March 30, 2024 5,001 $ 53.19 At March 30, 2024, our outstanding options had an aggregate intrinsic value of $247 million and a weighted-average remaining contractual life of 6.4 years. Our exercisable options had an aggregate intrinsic value of $214 million and a weighted-average remaining contractual life of 5.3 years at March 30, 2024. The total intrinsic value of options exercised during the first quarter of 2024 and 2023 was $60 million and $19 million, respectively. Restricted Stock Units We issue restricted stock units that include the right to receive dividend equivalents and are settled in both cash and stock. Beginning in 2020, new grants of restricted stock units will vest in full on the third anniversary of the grant date. Restricted stock units granted prior to 2020 vest one-third each in the third, fourth and fifth year following the year of the grant. Compensation cost is determined using the fair value of these units based on the trading price of our common stock. For units payable in stock, we use the trading price on the grant date, while units payable in cash are remeasured using the price at each reporting period date. The activity for restricted stock units payable in both stock and cash during the first quarter of 2024 is provided below: Units Payable in Stock Units Payable in Cash (Shares/Units in thousands) Number of Weighted- Number of Weighted- Outstanding at December 30, 2023, nonvested 396 $ 61.73 810 $ 63.06 Granted 94 88.68 219 88.70 Vested (165) (52.40) (367) (52.26) Forfeited — — (7) (66.64) Outstanding at March 30, 2024, nonvested 325 $ 74.29 655 $ 77.66 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, April 1, Fair value of awards vested $ 41 $ 44 Cash paid 33 34 Performance Share Units The activity for our performance share units during the first quarter of 2024 is as follows: (Units in thousands) Number of Weighted- Outstanding at December 30, 2023, nonvested 366 $ 72.23 Granted 194 88.68 Outstanding at March 30, 2024, nonvested 560 $ 77.92 Cash paid under these awards totaled $35 million and $27 million in the first quarter of 2024 and 2023, respectively.

Retirement Plans

Retirement Plans	3 Months Ended
Retirement Plans	Mar. 30, 2024
Retirement Benefits [Abstract]
Retirement Plans	Retirement Plans We provide defined benefit pension plans and other postretirement benefits to eligible employees. The components of net periodic benefit income for these plans are as follows: Three Months Ended (In millions) March 30, April 1, Pension Benefits Service cost $ 17 $ 17 Interest cost 90 91 Expected return on plan assets (159) (152) Amortization of net actuarial loss 1 — Amortization of prior service cost 2 3 Net periodic benefit income* $ (49) $ (41) Postretirement Benefits Other Than Pensions Interest cost $ 2 $ 2 Amortization of net actuarial gain (2) (2) Amortization of prior service credit — (1) Net periodic benefit income $ — $ (1)

Special Charges

Special Charges	3 Months Ended
Special Charges	Mar. 30, 2024
Restructuring and Related Activities [Abstract]
Special Charges	Special Charges On April 24, 2024, the Board of Directors approved the expansion of Textron’s 2023 restructuring plan to further reduce operating expenses through headcount reductions. In the first quarter of 2024, both the Shadow and Future Attack Reconnaissance Aircraft programs were cancelled at the Textron Systems and Bell segments, resulting in additional severance costs under the restructuring plan. Additionally, we increased our planned headcount reduction within the Industrial segment due to lower anticipated consumer demand for certain products at the Specialized Vehicles product line and reduced demand for fuel systems from European automotive manufacturers at Kautex. We now expect to incur additional severance costs in the second quarter of 2024 in the range of $25 million to $30 million, largely related to headcount reductions within the Industrial segment. Since inception of the 2023 restructuring plan, we have incurred $140 million in special charges, including severance costs of $52 million, which included $22 million at the Industrial segment, $18 million at the Bell segment and $12 million at the Textron Systems segment; and asset impairment charges of $88 million at the Industrial segment. Special charges in the first quarter of 2024 totaled $14 million, which included $13 million in severance costs and $1 million in asset impairment charges in connection with this plan; we recorded $7 million of these charges at the Textron Systems segment, $5 million at the Bell segment and $2 million at the Industrial segment. Headcount reductions since inception of the plan are expected to total approximately 1,500 positions, representing 4% of our global workforce. We estimate that remaining future cash outlays under this plan will be in the range of $60 million to $65 million, most of which we expect to pay in 2024. We expect charges under this plan to be substantially completed by the end of the first half of 2024. Our restructuring reserve activity is summarized below: (In millions) Severance Contract Total Balance at December 30, 2023 $ 42 $ 5 $ 47 Provision for 2023 Restructuring Plan 13 — 13 Cash paid (18) — (18) Foreign currency translation (1) — (1) Balance at March 30, 2024 $ 36 $ 5 $ 41

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate for the first quarter of 2024 and 2023 was 15.2% and 15.9%, respectively. In the first quarter of 2024, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the recognition of excess tax benefits related to share-based compensation, the favorable impact of research and development credits, and tax deductions for foreign-derived intangible income. In the first quarter of 2023, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are subject to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; disputes with suppliers, production partners or other third parties; product liability; patent and trademark infringement; employment disputes; and environmental, health and safety matters. Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Mar. 30, 2024	Apr. 01, 2023
Pay vs Performance Disclosure
Net income	$ 201	$ 191

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Mar. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of Estimates	Use of Estimates We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined.

Accounts Receivable and Finan_2

Accounts Receivable and Finance Receivables (Tables)	3 Months Ended
Accounts Receivable and Finance Receivables (Tables)	Mar. 30, 2024
Receivables [Abstract]
Accounts Receivable	Accounts receivable is composed of the following: (In millions) March 30, December 30, Commercial $ 816 $ 831 U.S. Government contracts 102 63 918 894 Allowance for credit losses (24) (26) Total accounts receivable, net $ 894 $ 868
Finance Receivables	Finance receivables are presented in the following table: (In millions) March 30, December 30, Finance receivables $ 603 $ 609 Allowance for credit losses (21) (24) Total finance receivables, net $ 582 $ 585
Finance Receivables Categorized Based On Credit Quality Indicators	Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) March 30, December 30, Performing $ 568 $ 571 Watchlist 22 23 Nonaccrual 13 15 Nonaccrual as a percentage of finance receivables 2.16% 2.46% Current and less than 31 days past due $ 582 $ 589 31-60 days past due 18 16 61-90 days past due — — Over 90 days past due 3 4 60+ days contractual delinquency as a percentage of finance receivables 0.50% 0.66%
Finance Receivables By Delinquency Aging Category	Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows: (Dollars in millions) March 30, December 30, Performing $ 568 $ 571 Watchlist 22 23 Nonaccrual 13 15 Nonaccrual as a percentage of finance receivables 2.16% 2.46% Current and less than 31 days past due $ 582 $ 589 31-60 days past due 18 16 61-90 days past due — — Over 90 days past due 3 4 60+ days contractual delinquency as a percentage of finance receivables 0.50% 0.66%
Finance Receivables and Allowance For Credit Losses Based on Impairment Evaluation	A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles. (In millions) March 30, December 30, Finance receivables evaluated collectively $ 505 $ 508 Finance receivables evaluated individually 13 15 Allowance for credit losses based on collective evaluation 18 21 Allowance for credit losses based on individual evaluation 3 3 Impaired finance receivables with specific allowance for credit losses $ 9 $ 11 Impaired finance receivables with no specific allowance for credit losses 4 4 Unpaid principal balance of impaired finance receivables 20 25 Allowance for credit losses on impaired finance receivables 3 3 Average recorded investment of impaired finance receivables 14 27

Inventories (Tables)

Inventories (Tables)	3 Months Ended
Inventories (Tables)	Mar. 30, 2024
Inventory Disclosure [Abstract]
Inventories	Inventories are composed of the following: (In millions) March 30, December 30, Finished goods $ 1,148 $ 1,072 Work in process 1,976 1,736 Raw materials and components 1,143 1,106 Total inventories $ 4,267 $ 3,914

Accounts Payable and Warranty_2

Accounts Payable and Warranty Liability (Tables)	3 Months Ended
Accounts Payable and Warranty Liability (Tables)	Mar. 30, 2024
Payables and Accruals [Abstract]
Changes in Warranty Liability	Changes in our warranty liability are as follows: Three Months Ended (In millions) March 30, April 1, Beginning of period $ 172 $ 149 Provision 17 15 Settlements (18) (18) Adjustments* (1) 3 End of period $ 170 $ 149 * Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 30, 2024
Leases [Abstract]
Schedule of Balance Sheet and Other Information	Balance sheet and other information related to our operating leases is as follows: (Dollars in millions) March 30, December 30, Other assets $ 382 $ 371 Other current liabilities 57 55 Other liabilities 334 326 Weighted-average remaining lease term (in years) 10.1 10.3 Weighted-average discount rate 4.69% 4.70%

Derivative Instruments and Fa_2

Derivative Instruments and Fair Value Measurements (Tables)	3 Months Ended
Derivative Instruments and Fair Value Measurements (Tables)	Mar. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Carrying Value and Estimated and Fair Value of Financial Instruments	The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows: March 30, 2024 December 30, 2023 Carrying Estimated Carrying Estimated (In millions) Value Fair Value Value Fair Value Manufacturing group Debt, excluding leases $ (3,168) $ (2,965) $ (3,520) $ (3,342) Finance group Finance receivables, excluding leases 416 422 417 423 Debt (342) (305) (348) (293)

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
Shareholders' Equity (Tables)	Mar. 30, 2024
Equity [Abstract]
Schedule of Shareholder's Equity	A reconciliation of Shareholders’ equity is presented below: (In millions) Common Capital Treasury Retained Accumulated Total Three months ended March 30, 2024 Beginning of period $ 24 $ 1,910 $ (165) $ 5,862 $ (644) $ 6,987 Net income — — — 201 — 201 Other comprehensive loss — — — — (37) (37) Share-based compensation activity 1 102 — — — 103 Dividends declared — — — (4) — (4) Purchases of common stock, including excise tax* — — (319) — — (319) End of period $ 25 $ 2,012 $ (484) $ 6,059 $ (681) $ 6,931 Three months ended April 1, 2023 Beginning of period $ 26 $ 1,880 $ (84) $ 5,903 $ (612) $ 7,113 Net income — — — 191 — 191 Other comprehensive income — — — — 26 26 Share-based compensation activity — 62 — — — 62 Dividends declared — — — (4) — (4) Purchases of common stock, including excise tax* — — (380) — — (380) End of period $ 26 $ 1,942 $ (464) $ 6,090 $ (586) $ 7,008 *Includes amounts accrued for excise tax imposed on common share repurchases of $2 million for the first quarter of 2024 and $3 million for the first quarter of 2023.
Schedule of Weighted-Average Shares Outstanding for Basic and Diluted EPS	The weighted-average shares outstanding for basic and diluted EPS are as follows: Three Months Ended (In thousands) March 30, April 1, Basic weighted-average shares outstanding 192,800 204,835 Dilutive effect of stock options 2,060 2,176 Diluted weighted-average shares outstanding 194,860 207,011
Schedule of Components of Accumulated Other Comprehensive Income (Loss)	The components of Accumulated other comprehensive loss are presented below: (In millions) Pension and Foreign Deferred Accumulated Balance at December 30, 2023 $ (598) $ (49) $ 3 $ (644) Other comprehensive loss before reclassifications — (33) (5) (38) Reclassified from Accumulated other comprehensive loss 1 — — 1 Balance at March 30, 2024 $ (597) $ (82) $ (2) $ (681) Balance at December 31, 2022 $ (516) $ (94) $ (2) $ (612) Other comprehensive income before reclassifications — 28 (3) 25 Reclassified from Accumulated other comprehensive loss — — 1 1 Balance at April 1, 2023 $ (516) $ (66) $ (4) $ (586)
Schedule of Before and After-Tax Components of Other Comprehensive Income (Loss)	The before and after-tax components of Other comprehensive income (loss) are presented below: March 30, 2024 April 1, 2023 (In millions) Pre-Tax Tax After-tax Pre-Tax Tax After-tax Three Months Ended Pension and postretirement benefits adjustments: Amortization of net actuarial gain* $ (1) $ — $ (1) $ (2) $ 1 $ (1) Amortization of prior service cost* 2 — 2 2 (1) 1 Pension and postretirement benefits adjustments, net 1 — 1 — — — Foreign currency translation adjustments (33) — (33) 28 — 28 Deferred losses on hedge contracts: Current deferrals (7) 2 (5) (4) 1 (3) Reclassification adjustments (1) 1 — 2 (1) 1 Deferred losses on hedge contracts, net (8) 3 (5) (2) — (2) Total $ (40) $ 3 $ (37) $ 26 $ — $ 26 *These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2023 Annual Report on Form 10-K for additional information.

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
Segment Information (Tables)	Mar. 30, 2024
Segment Reporting [Abstract]
Reconciliation of Revenues by Segment	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, April 1, Revenues Textron Aviation $ 1,188 $ 1,149 Bell 727 621 Textron Systems 306 306 Industrial 892 932 Textron eAviation 7 4 Finance 15 12 Total revenues $ 3,135 $ 3,024 Segment Profit Textron Aviation $ 143 $ 125 Bell 80 60 Textron Systems 38 34 Industrial 29 41 Textron eAviation (18) (9) Finance 18 8 Segment profit 290 259 Corporate expenses and other, net (62) (39) Interest expense, net for Manufacturing group (15) (17) LIFO inventory provision (20) (25) Intangible asset amortization (8) (10) Special charges (14) — Non-service components of pension and postretirement income, net 66 59 Income before income taxes $ 237 $ 227
Reconciliation of Segment Profit to Income Before Income Taxes	Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below: Three Months Ended (In millions) March 30, April 1, Revenues Textron Aviation $ 1,188 $ 1,149 Bell 727 621 Textron Systems 306 306 Industrial 892 932 Textron eAviation 7 4 Finance 15 12 Total revenues $ 3,135 $ 3,024 Segment Profit Textron Aviation $ 143 $ 125 Bell 80 60 Textron Systems 38 34 Industrial 29 41 Textron eAviation (18) (9) Finance 18 8 Segment profit 290 259 Corporate expenses and other, net (62) (39) Interest expense, net for Manufacturing group (15) (17) LIFO inventory provision (20) (25) Intangible asset amortization (8) (10) Special charges (14) — Non-service components of pension and postretirement income, net 66 59 Income before income taxes $ 237 $ 227

Revenues (Tables)

Revenues (Tables)	3 Months Ended
Revenues (Tables)	Mar. 30, 2024
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Our revenues disaggregated by major product type are presented below: Three Months Ended (In millions) March 30, April 1, Aircraft $ 732 $ 718 Aftermarket parts and services 456 431 Textron Aviation $ 1,188 $ 1,149 Military aircraft and support programs 480 385 Commercial helicopters, parts and services 247 236 Bell $ 727 $ 621 Textron Systems $ 306 $ 306 Fuel systems and functional components 488 488 Specialized vehicles 404 444 Industrial $ 892 $ 932 Textron eAviation $ 7 $ 4 Finance $ 15 $ 12 Total revenues $ 3,135 $ 3,024 Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Bell Textron Industrial Textron eAviation Finance Total Three months ended March 30, 2024 Customer type: Commercial $ 1,155 $ 239 $ 72 $ 884 $ 7 $ 15 $ 2,372 U.S. Government 33 488 234 8 — — 763 Total revenues $ 1,188 $ 727 $ 306 $ 892 $ 7 $ 15 $ 3,135 Geographic location: United States $ 950 $ 559 $ 274 $ 460 $ 4 $ 4 $ 2,251 Europe 62 23 13 198 2 5 303 Other international 176 145 19 234 1 6 581 Total revenues $ 1,188 $ 727 $ 306 $ 892 $ 7 $ 15 $ 3,135 Three months ended April 1, 2023 Customer type: Commercial $ 1,107 $ 232 $ 74 $ 927 $ 4 $ 12 $ 2,356 U.S. Government 42 389 232 5 — — 668 Total revenues $ 1,149 $ 621 $ 306 $ 932 $ 4 $ 12 $ 3,024 Geographic location: United States $ 836 $ 460 $ 275 $ 494 $ 1 $ 4 $ 2,070 Europe 66 19 14 204 2 — 305 Other international 247 142 17 234 1 8 649 Total revenues $ 1,149 $ 621 $ 306 $ 932 $ 4 $ 12 $ 3,024

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
Share-Based Compensation (Tables)	Mar. 30, 2024
Share-Based Payment Arrangement [Abstract]
Compensation Expense Included in Net Income	Compensation expense included in net income for our share-based compensation plan is as follows: Three Months Ended (In millions) March 30, April 1, Compensation expense $ 77 $ 45 Income tax benefit (19) (11) Total compensation expense included in net income $ 58 $ 34
Weighted-Average Fair Value of Stock Options and Assumptions Used in Option-Pricing Model	The assumptions used in our option-pricing model for these grants and the weighted-average fair value for these options are as follows: March 1, March 1, Fair value of options at grant date $ 27.69 $ 23.83 Dividend yield 0.1% 0.1% Expected volatility 27.2% 29.4% Risk-free interest rate 4.3% 4.2% Expected term (in years) 4.8 4.8
Stock Option Activity	The stock option activity during the first quarter of 2024 is provided below: (Options in thousands) Number of Weighted- Outstanding at December 30, 2023 7,515 $ 54.25 Granted 956 88.68 Exercised (1,425) (44.98) Forfeited or expired (8) (71.23) Outstanding at March 30, 2024 7,038 $ 60.78 Exercisable at March 30, 2024 5,001 $ 53.19
Restricted Stock Units Activity	The activity for restricted stock units payable in both stock and cash during the first quarter of 2024 is provided below: Units Payable in Stock Units Payable in Cash (Shares/Units in thousands) Number of Weighted- Number of Weighted- Outstanding at December 30, 2023, nonvested 396 $ 61.73 810 $ 63.06 Granted 94 88.68 219 88.70 Vested (165) (52.40) (367) (52.26) Forfeited — — (7) (66.64) Outstanding at March 30, 2024, nonvested 325 $ 74.29 655 $ 77.66
Fair Value of Awards Vested and Cash Paid During Respective Periods	The fair value of the restricted stock unit awards that vested and/or amounts paid under these awards is as follows: Three Months Ended (In millions) March 30, April 1, Fair value of awards vested $ 41 $ 44 Cash paid 33 34
Performance Share Units Activity	The activity for our performance share units during the first quarter of 2024 is as follows: (Units in thousands) Number of Weighted- Outstanding at December 30, 2023, nonvested 366 $ 72.23 Granted 194 88.68 Outstanding at March 30, 2024, nonvested 560 $ 77.92

Retirement Plans (Tables)

Retirement Plans (Tables)	3 Months Ended
Retirement Plans (Tables)	Mar. 30, 2024
Retirement Benefits [Abstract]
Schedule of Components of Net Periodic Benefit Income	The components of net periodic benefit income for these plans are as follows: Three Months Ended (In millions) March 30, April 1, Pension Benefits Service cost $ 17 $ 17 Interest cost 90 91 Expected return on plan assets (159) (152) Amortization of net actuarial loss 1 — Amortization of prior service cost 2 3 Net periodic benefit income* $ (49) $ (41) Postretirement Benefits Other Than Pensions Interest cost $ 2 $ 2 Amortization of net actuarial gain (2) (2) Amortization of prior service credit — (1) Net periodic benefit income $ — $ (1)

Special Charges (Tables)

Special Charges (Tables)	3 Months Ended
Special Charges (Tables)	Mar. 30, 2024
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve Activity	Our restructuring reserve activity is summarized below: (In millions) Severance Contract Total Balance at December 30, 2023 $ 42 $ 5 $ 47 Provision for 2023 Restructuring Plan 13 — 13 Cash paid (18) — (18) Foreign currency translation (1) — (1) Balance at March 30, 2024 $ 36 $ 5 $ 41

Basis of Presentation (Details)

Basis of Presentation (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 30, 2024 USD ($) borrowing_group $ / shares	Apr. 01, 2023 USD ($) $ / shares
Change in Accounting Estimate [Line Items]
Number of borrowing groups \| borrowing_group	2
Cumulative catch-up method
Change in Accounting Estimate [Line Items]
Cumulative catch up adjustments, increase in segment profit	$ 13	$ 8
Change in accounting estimate financial effect, increase in net income	$ 10	$ 6
Change in accounting estimate financial effect increase in earnings per diluted share (in dollars per share) \| $ / shares	$ 0.05	$ 0.03

Accounts Receivable and Finan_3

Accounts Receivable and Finance Receivables - Accounts Receivable (Details) - Manufacturing group - USD ($) $ in Millions	Mar. 30, 2024	Dec. 30, 2023
Accounts Receivable
Accounts receivable, gross	$ 918	$ 894
Allowance for credit losses	(24)	(26)
Total accounts receivable, net	894	868
Commercial
Accounts Receivable
Accounts receivable, gross	816	831
U.S. Government
Accounts Receivable
Accounts receivable, gross	$ 102	$ 63

Accounts Receivable and Finan_4

Accounts Receivable and Finance Receivables - Finance Receivables (Details) - USD ($) $ in Millions	Mar. 30, 2024	Dec. 30, 2023
Finance Receivables
Finance receivables	$ 603	$ 609
Allowance for credit losses	(21)	(24)
Total finance receivables, net	$ 582	$ 585

Accounts Receivable and Finan_5

Accounts Receivable and Finance Receivables - Finance Receivable Portfolio Quality (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Dec. 30, 2023
Finance Receivable Portfolio Quality
Finance receivables	$ 603	$ 609
60+ days contractual delinquency as a percentage of finance receivables	0.50%	0.66%
Current and less than 31 days past due
Finance Receivable Portfolio Quality
Finance receivables	$ 582	$ 589
31-60 days past due
Finance Receivable Portfolio Quality
Finance receivables	18	16
61-90 days past due
Finance Receivable Portfolio Quality
Finance receivables	0	0
Over 90 days past due
Finance Receivable Portfolio Quality
Finance receivables	$ 3	$ 4
Performing
Finance Receivable Portfolio Quality
Financing percentage receivable originating since the beginning of 2022	35%
Financing receivable percentage originating from 2019 to 2021	30%
Nonperforming
Finance Receivable Portfolio Quality
Nonaccrual as a percentage of finance receivables	2.16%	2.46%
Nonperforming \| Watchlist
Finance Receivable Portfolio Quality
Finance receivables	$ 22	$ 23
Financing receivable percentage originating from 2020 to 2021	100%
Nonperforming \| Nonaccrual
Finance Receivable Portfolio Quality
Finance receivables	$ 13	15
Financing receivable percentage originating prior to 2020	100%
Nonperforming \| Minimum
Finance Receivable Portfolio Quality
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful	3 months
Performing
Finance Receivable Portfolio Quality
Finance receivables	$ 568	$ 571

Accounts Receivable and Finan_6

Accounts Receivable and Finance Receivables - Finance Receivables and Allowance for Losses Based on the Results of Impairment Evaluation (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 30, 2024	Dec. 30, 2023
Receivables [Abstract]
Finance receivables evaluated collectively	$ 505	$ 508
Finance receivables evaluated individually	13	15
Allowance for credit losses based on collective evaluation	18	21
Allowance for credit losses based on individual evaluation	3	3
Impaired finance receivables with specific allowance for credit losses	9	11
Impaired finance receivables with no specific allowance for credit losses	4	4
Unpaid principal balance of impaired finance receivables	20	25
Allowance for credit losses on impaired finance receivables	3	3
Average recorded investment of impaired finance receivables	$ 14	$ 27

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Mar. 30, 2024	Dec. 30, 2023
Inventories
Finished goods	$ 1,148	$ 1,072
Work in process	1,976	1,736
Raw materials and components	1,143	1,106
Total inventories	$ 4,267	$ 3,914

Accounts Payable and Warranty_3

Accounts Payable and Warranty Liability - Narrative (Details) - USD ($) $ in Millions	Mar. 30, 2024	Dec. 30, 2023
Supplier Finance Program [Line Items]
Supplier financing maximum commitment	$ 175
Payable under supplier financing arrangement	$ 135	$ 125
Maximum
Supplier Finance Program [Line Items]
Payment terms period under supplier financing arrangement	190 days

Accounts Payable and Warranty_4

Accounts Payable and Warranty Liability - Warranty Liability (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Changes in warranty liability
Beginning of period	$ 172	$ 149
Provision	17	15
Settlements	(18)	(18)
Adjustments	(1)	3
End of period	$ 170	$ 149

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Mar. 30, 2024	Apr. 01, 2023
Leases [Abstract]
Remaining lease terms	25 years
Operating lease - option to extend	true
Operating lease - option to extend the lease, term	20 years
Operating lease cost	$ 18	$ 17
Cash paid for operating lease liabilities	18	17
Noncash lease transactions	$ 25	$ 15

Leases - Balance Sheet and Othe

Leases - Balance Sheet and Other Information (Details) - USD ($) $ in Millions	Mar. 30, 2024	Dec. 30, 2023
Operating leases:
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Other assets	$ 382	$ 371
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Other current liabilities	$ 57	$ 55
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Other liabilities	$ 334	$ 326
Weighted-average remaining lease term (in years)
Weighted-average remaining lease term (in years)	10 years 1 month 6 days	10 years 3 months 18 days
Weighted-average discount rate
Weighted-average discount rate	4.69%	4.70%

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) $ in Millions	Mar. 30, 2024 USD ($)
Operating Leases
Remainder of 2024	$ 55
2025	66
2026	52
2027	44
2028	42
Thereafter	$ 242

Derivative Instruments and Fa_3

Derivative Instruments and Fair Value Measurements - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Dec. 30, 2023
Manufacturing group
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Forward exchange contracts maximum maturity period	3 years
Manufacturing group \| Foreign currency exchange contracts \| Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Notional amounts	$ 681	$ 478
Manufacturing group \| Foreign currency exchange contracts \| Cash Flow Hedging \| Level 2
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Derivative asset, fair value	2	4
Derivative liability, fair value	10	3
Finance group \| Interest rate swap \| Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Derivative asset, fair value	6	4
Finance group \| Interest rate swap, maturing August 2025 to August 2028 \| Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Notional amounts	$ 185	$ 185
Finance group \| Interest rate swap, maturing August 2025 to August 2028 \| Cash Flow Hedging \| Floating Rate Junior Subordinated Notes due 2067 \| Junior Subordinated Debt
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Net impact of debt and derivative, weighted-average fixed interest rate	5.17%	5.17%
Finance group \| Interest rate swap, maturing in June 2025 \| Cash Flow Hedging
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Notional amounts	$ 25	$ 25
Finance group \| Interest rate swap, maturing in June 2025 \| Cash Flow Hedging \| Floating Rate Junior Subordinated Notes due 2067 \| Junior Subordinated Debt
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Net impact of debt and derivative, fixed interest rate	4.13%	4.13%

Derivative Instruments and Fa_4

Derivative Instruments and Fair Value Measurements - Assets and Liabilities not Recorded at Fair Value (Details) - USD ($) $ in Millions	Mar. 30, 2024	Dec. 30, 2023
Manufacturing group \| Carrying Value
Financial instruments not reflected at fair value
Debt	$ (3,168)	$ (3,520)
Manufacturing group \| Estimated Fair value
Financial instruments not reflected at fair value
Debt	(2,965)	(3,342)
Finance group \| Carrying Value
Financial instruments not reflected at fair value
Debt	(342)	(348)
Finance receivables, excluding leases	416	417
Finance group \| Estimated Fair value
Financial instruments not reflected at fair value
Debt	(305)	(293)
Finance receivables, excluding leases	$ 422	$ 423

Shareholders' Equity - Reconcil

Shareholders' Equity - Reconciliation of Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 6,987	$ 7,113
Net income	201	191
Other comprehensive income (loss)	(37)	26
Share-based compensation activity	103	62
Dividends declared	(4)	(4)
Purchases of common stock, including excise tax	(319)	(380)
Balance at end of period	6,931	7,008
Excise taxes on common share repurchases	$ 2	$ 3
Dividends per share of common stock (in dollars per share)	$ 0.02	$ 0.02
Common Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 24	$ 26
Share-based compensation activity	1
Balance at end of period	25	26
Capital Surplus
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	1,910	1,880
Share-based compensation activity	102	62
Balance at end of period	2,012	1,942
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(165)	(84)
Purchases of common stock, including excise tax	(319)	(380)
Balance at end of period	(484)	(464)
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	5,862	5,903
Net income	201	191
Dividends declared	(4)	(4)
Balance at end of period	6,059	6,090
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(644)	(612)
Other comprehensive income (loss)	(37)	26
Balance at end of period	$ (681)	$ (586)

Shareholders' Equity - Earnings

Shareholders' Equity - Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Equity [Abstract]
Basic weighted-average shares outstanding (in shares)	192,800	204,835
Dilutive effect of stock options (in shares)	2,060	2,176
Diluted weighted-average shares outstanding (in shares)	194,860	207,011
Anti-dilutive effect of weighted average shares (in shares)	1,000	2,000

Shareholders' Equity - Accumula

Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 6,987	$ 7,113
Other comprehensive income (loss) before reclassifications	(38)	25
Reclassified from Accumulated other comprehensive loss	1	1
Balance at end of period	6,931	7,008
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(644)	(612)
Balance at end of period	(681)	(586)
Pension and Postretirement Benefits Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(598)	(516)
Other comprehensive income (loss) before reclassifications	0	0
Reclassified from Accumulated other comprehensive loss	1	0
Balance at end of period	(597)	(516)
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(49)	(94)
Other comprehensive income (loss) before reclassifications	(33)	28
Reclassified from Accumulated other comprehensive loss	0	0
Balance at end of period	(82)	(66)
Deferred Gains (Losses) on Hedge Contracts
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	3	(2)
Other comprehensive income (loss) before reclassifications	(5)	(3)
Reclassified from Accumulated other comprehensive loss	0	1
Balance at end of period	$ (2)	$ (4)

Shareholders' Equity - Before a

Shareholders' Equity - Before and After Tax Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Pension and postretirement benefits adjustments, pre-tax:
Amortization of net actuarial gain, pre-tax	$ (1)	$ (2)
Amortization of prior service cost, pre-tax	2	2
Pension and postretirement benefits adjustments, net, pre-tax	1	0
Pension and postretirement benefits adjustments, tax:
Amortization of net actuarial gain, tax (expense) benefit	0	1
Amortization of prior service cost, tax (expense) benefit	0	(1)
Pension and postretirement benefits adjustments, net, tax (expense) benefit	0	0
Pension and postretirement benefits adjustments, after-tax:
Amortization of net actuarial gain, after-tax	(1)	(1)
Amortization of prior period service cost, after-tax	2	1
Pension and postretirement benefits adjustments, net, after-tax	1	0
Foreign currency translation adjustments, pre-tax:
Foreign currency translation adjustments	(33)	28
Foreign currency translation adjustments, tax:
Foreign currency translation adjustments	0	0
Foreign currency translation adjustments, after-tax:
Foreign currency translation adjustments	(33)	28
Deferred losses on hedge contracts, pre-tax:
Current deferrals, pre-tax	(7)	(4)
Reclassification adjustments, pre-tax	(1)	2
Deferred losses on hedge contracts, net, pre-tax	(8)	(2)
Deferred losses on hedge contracts, tax:
Current deferrals, tax (expense) benefit	2	1
Reclassification adjustments, tax (expense) benefit	1	(1)
Deferred losses on hedge contracts, net, tax (expense) benefit	3	0
Deferred losses on hedge contracts, after-tax:
Current deferrals, after-tax	(5)	(3)
Reclassification adjustments, after tax	0	1
Deferred losses on hedge contracts, net, after-tax	(5)	(2)
Other comprehensive income (loss), pre-tax	(40)	26
Other comprehensive income (loss), tax (expense) benefit	3	0
Other comprehensive income (loss)	$ (37)	$ 26

Segment Information - Narrative

Segment Information - Narrative (Details)	3 Months Ended
Segment Information - Narrative (Details)	Mar. 30, 2024 segment
Operating and reportable business segments
Number of operating business segments	6
Number of reportable business segments	6

Segment Information - Revenue b

Segment Information - Revenue by Segment and Reconciliation of Segment Profit to Income Before Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Revenues
Total revenues	$ 3,135	$ 3,024
Reconciliation of segment profit to income from continuing operations before income taxes
Interest expense, net for Manufacturing group	(20)	(20)
Special Charges	(14)	0
Non-service components of pension and postretirement income, net	66	59
Income before income taxes	237	227
Operating Segment
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	290	259
Reconciling Items
Reconciliation of segment profit to income from continuing operations before income taxes
Corporate expenses and other, net	(62)	(39)
LIFO inventory provision	(20)	(25)
Intangible asset amortization	(8)	(10)
Special Charges	(14)	0
Non-service components of pension and postretirement income, net	66	59
Textron Aviation
Revenues
Total revenues	1,188	1,149
Bell
Revenues
Total revenues	727	621
Textron Systems
Revenues
Total revenues	306	306
Industrial
Revenues
Total revenues	892	932
Textron eAviation
Revenues
Total revenues	7	4
Finance
Revenues
Total revenues	15	12
Manufacturing group \| Reconciling Items
Reconciliation of segment profit to income from continuing operations before income taxes
Interest expense, net for Manufacturing group	(15)	(17)
Manufacturing group \| Textron Aviation \| Operating Segment
Revenues
Total revenues	1,188	1,149
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	143	125
Manufacturing group \| Bell \| Operating Segment
Revenues
Total revenues	727	621
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	80	60
Manufacturing group \| Textron Systems \| Operating Segment
Revenues
Total revenues	306	306
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	38	34
Manufacturing group \| Industrial \| Operating Segment
Revenues
Total revenues	892	932
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	29	41
Manufacturing group \| Textron eAviation \| Operating Segment
Revenues
Total revenues	7	4
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	(18)	(9)
Finance group
Revenues
Total revenues	15	12
Finance group \| Finance \| Operating Segment
Revenues
Total revenues	15	12
Reconciliation of segment profit to income from continuing operations before income taxes
Segment profit	$ 18	$ 8

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 3,135	$ 3,024
United States
Disaggregation of Revenue [Line Items]
Revenues	2,251	2,070
Europe
Disaggregation of Revenue [Line Items]
Revenues	303	305
Other international
Disaggregation of Revenue [Line Items]
Revenues	581	649
Commercial
Disaggregation of Revenue [Line Items]
Revenues	2,372	2,356
U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	763	668
Textron Aviation
Disaggregation of Revenue [Line Items]
Revenues	1,188	1,149
Textron Aviation \| United States
Disaggregation of Revenue [Line Items]
Revenues	950	836
Textron Aviation \| Europe
Disaggregation of Revenue [Line Items]
Revenues	62	66
Textron Aviation \| Other international
Disaggregation of Revenue [Line Items]
Revenues	176	247
Textron Aviation \| Commercial
Disaggregation of Revenue [Line Items]
Revenues	1,155	1,107
Textron Aviation \| U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	33	42
Textron Aviation \| Aircraft
Disaggregation of Revenue [Line Items]
Revenues	732	718
Textron Aviation \| Aftermarket parts and services
Disaggregation of Revenue [Line Items]
Revenues	456	431
Bell
Disaggregation of Revenue [Line Items]
Revenues	727	621
Bell \| United States
Disaggregation of Revenue [Line Items]
Revenues	559	460
Bell \| Europe
Disaggregation of Revenue [Line Items]
Revenues	23	19
Bell \| Other international
Disaggregation of Revenue [Line Items]
Revenues	145	142
Bell \| Commercial
Disaggregation of Revenue [Line Items]
Revenues	239	232
Bell \| U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	488	389
Bell \| Military aircraft and support programs
Disaggregation of Revenue [Line Items]
Revenues	480	385
Bell \| Commercial helicopters, parts and services
Disaggregation of Revenue [Line Items]
Revenues	247	236
Textron Systems
Disaggregation of Revenue [Line Items]
Revenues	306	306
Textron Systems \| United States
Disaggregation of Revenue [Line Items]
Revenues	274	275
Textron Systems \| Europe
Disaggregation of Revenue [Line Items]
Revenues	13	14
Textron Systems \| Other international
Disaggregation of Revenue [Line Items]
Revenues	19	17
Textron Systems \| Commercial
Disaggregation of Revenue [Line Items]
Revenues	72	74
Textron Systems \| U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	234	232
Industrial
Disaggregation of Revenue [Line Items]
Revenues	892	932
Industrial \| United States
Disaggregation of Revenue [Line Items]
Revenues	460	494
Industrial \| Europe
Disaggregation of Revenue [Line Items]
Revenues	198	204
Industrial \| Other international
Disaggregation of Revenue [Line Items]
Revenues	234	234
Industrial \| Commercial
Disaggregation of Revenue [Line Items]
Revenues	884	927
Industrial \| U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	8	5
Industrial \| Fuel systems and functional components
Disaggregation of Revenue [Line Items]
Revenues	488	488
Industrial \| Specialized vehicles
Disaggregation of Revenue [Line Items]
Revenues	404	444
Textron eAviation
Disaggregation of Revenue [Line Items]
Revenues	7	4
Textron eAviation \| United States
Disaggregation of Revenue [Line Items]
Revenues	4	1
Textron eAviation \| Europe
Disaggregation of Revenue [Line Items]
Revenues	2	2
Textron eAviation \| Other international
Disaggregation of Revenue [Line Items]
Revenues	1	1
Textron eAviation \| Commercial
Disaggregation of Revenue [Line Items]
Revenues	7	4
Textron eAviation \| U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	0	0
Finance
Disaggregation of Revenue [Line Items]
Revenues	15	12
Finance \| United States
Disaggregation of Revenue [Line Items]
Revenues	4	4
Finance \| Europe
Disaggregation of Revenue [Line Items]
Revenues	5	0
Finance \| Other international
Disaggregation of Revenue [Line Items]
Revenues	6	8
Finance \| Commercial
Disaggregation of Revenue [Line Items]
Revenues	15	12
Finance \| U.S. Government
Disaggregation of Revenue [Line Items]
Revenues	$ 0	$ 0

Revenues - Remaining Performanc

Revenues - Remaining Performance Obligations (Details) $ in Billions	Mar. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 13.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percent	85%
Remaining performance obligation, expected timing of satisfaction	21 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-04
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percent	14%
Remaining performance obligation, expected timing of satisfaction	24 months

Revenues - Contract Assets and

Revenues - Contract Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023	Dec. 30, 2023
Contract Assets and Liabilities
Contract assets	$ 426		$ 513
Contract liabilities	1,900		$ 1,800
Revenue recognized included in contract liabilities	$ 327	$ 316

Share-Based Compensation - Comp

Share-Based Compensation - Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense	$ 77	$ 45
Income tax benefit	(19)	(11)
Total compensation expense included in net income	58	34
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense	$ 15	$ 14

Share-Based Compensation - Stoc

Share-Based Compensation - Stock Appreciation Rights (Details) - Stock appreciation rights - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Awards outstanding (in shares)	409,232
Weighted-average exercise price (in dollars per share)	$ 62.60
Weighted-average remaining contractual life	6 years 7 months 6 days
Intrinsic value	$ 14	$ 10

Share-Based Compensation - St_2

Share-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions			3 Months Ended
	Mar. 01, 2024	Mar. 01, 2023	Mar. 30, 2024	Apr. 01, 2023
Additional general disclosures
Aggregate intrinsic value of outstanding options			$ 247
Weighted-average remaining contractual life of outstanding stock options			6 years 4 months 24 days
Aggregate intrinsic value of exercisable options			$ 214
Weighted-average remaining contractual life of exercisable options			5 years 3 months 18 days
Total intrinsic value of options exercised			$ 60	$ 19
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Maximum term of options			10 years
Performance share units vesting period			3 years
Weighted-average assumptions used in Black-Scholes option-pricing model
Fair value of options at grant date (in dollars per share)	$ 27.69	$ 23.83
Dividend yield	0.10%	0.10%
Expected volatility	27.20%	29.40%
Risk-free interest rate	4.30%	4.20%
Expected term (in years)	4 years 9 months 18 days	4 years 9 months 18 days
Number of Options
Outstanding at beginning of period (in shares)			7,515
Granted (in shares)			956
Exercised (in shares)			(1,425)
Forfeited or expired (in shares)			(8)
Outstanding at end of period (in shares)			7,038
Exercisable at end of period (in shares)			5,001
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share)			$ 54.25
Granted (in dollars per share)			88.68
Exercised (in dollars per share)			(44.98)
Forfeited or expired (in dollars per share)			(71.23)
Outstanding at end of period (in dollars per share)			60.78
Exercisable at end of period (in dollars per share)			$ 53.19

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Restricted Stock Units
Fair value
Fair value of awards vested	$ 41	$ 44
Cash paid	$ 33	$ 34
Units Payable in Stock
Number of Units
Outstanding at beginning of period, nonvested (in shares)	396
Granted (in shares)	94
Vested (in shares)	(165)
Forfeited (in shares)	0
Outstanding at end of period, nonvested (in shares)	325
Weighted- Average Grant Date Fair Value
Outstanding at beginning of period, nonvested (in dollars per share)	$ 61.73
Granted (in dollars per share)	88.68
Vested (in dollars per share)	(52.40)
Forfeited (in dollars per share)	0
Outstanding at end of period, nonvested (in dollars per share)	$ 74.29
Units Payable in Cash
Number of Units
Outstanding at beginning of period, nonvested (in shares)	810
Granted (in shares)	219
Vested (in shares)	(367)
Forfeited (in shares)	(7)
Outstanding at end of period, nonvested (in shares)	655
Weighted- Average Grant Date Fair Value
Outstanding at beginning of period, nonvested (in dollars per share)	$ 63.06
Granted (in dollars per share)	88.70
Vested (in dollars per share)	(52.26)
Forfeited (in dollars per share)	(66.64)
Outstanding at end of period, nonvested (in dollars per share)	$ 77.66

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, 2024	Apr. 01, 2023
Number of Units
Outstanding at beginning of period, nonvested (in shares)	366
Granted (in shares)	194
Outstanding at end of period, nonvested (in shares)	560
Weighted- Average Grant Date Fair Value
Outstanding at beginning of period, nonvested (in dollars per share)	$ 72.23
Granted (in dollars per share)	88.68
Outstanding at end of period, nonvested (in dollars per share)	$ 77.92
Fair value
Cash paid	$ 35	$ 27

Retirement Plans (Details)

Retirement Plans (Details) - USD ($) $ in Millions	3 Months Ended
Retirement Plans (Details) - USD ($) $ in Millions	Mar. 30, 2024	Apr. 01, 2023
Pension Benefits
Net periodic benefit income
Service cost	$ 17	$ 17
Interest cost	90	91
Expected return on plan assets	(159)	(152)
Amortization of net actuarial loss	1	0
Amortization of prior service cost	2	3
Net periodic benefit income	(49)	(41)
Pension Benefits \| United States
Net periodic benefit income
Cost associated with the defined contribution component	4	4
Postretirement Benefits Other Than Pensions
Net periodic benefit income
Interest cost	2	2
Amortization of net actuarial loss	(2)	(2)
Amortization of prior service cost	0	(1)
Net periodic benefit income	$ 0	$ (1)

Special Charges - Narrative (De

Special Charges - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended	9 Months Ended
Special Charges - Narrative (Details) $ in Millions	Mar. 30, 2024 USD ($)	Apr. 01, 2023 USD ($)	Mar. 30, 2024 USD ($)	Dec. 28, 2024 USD ($)	Jun. 29, 2024 position	Apr. 24, 2024 USD ($)
Special Charges [Line Items]
Special charges	$ 14	$ 0
Future cash outlays	18
2023 Restructuring Plan
Special Charges [Line Items]
Special charges	14		$ 140
Severance costs	13		52
Asset impairment charges	1
2023 Restructuring Plan \| Forecast
Special Charges [Line Items]
Number of positions expected to be eliminated \| position					1,500
Percentage of workforce reduction					4%
2023 Restructuring Plan \| Industrial
Special Charges [Line Items]
Special charges	2
Severance costs			22
Asset impairment charges			88
2023 Restructuring Plan \| Bell
Special Charges [Line Items]
Special charges	5
Severance costs			18
2023 Restructuring Plan \| Textron Systems
Special Charges [Line Items]
Special charges	$ 7
Severance costs			$ 12
2023 Restructuring Plan \| Minimum \| Forecast
Special Charges [Line Items]
Future cash outlays				$ 60
2023 Restructuring Plan \| Minimum \| Subsequent Event
Special Charges [Line Items]
Additional expected costs						$ 25
2023 Restructuring Plan \| Maximum \| Forecast
Special Charges [Line Items]
Future cash outlays				$ 65
2023 Restructuring Plan \| Maximum \| Subsequent Event
Special Charges [Line Items]
Additional expected costs						$ 30

Special Charges - Restructuring

Special Charges - Restructuring Reserve Activity (Details) $ in Millions	3 Months Ended
	Mar. 30, 2024 USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance	$ 47
Restructuring charges	13
Cash paid	(18)
Foreign currency translation	(1)
Ending balance	41
Severance Costs
Restructuring Reserve [Roll Forward]
Beginning balance	42
Restructuring charges	13
Cash paid	(18)
Foreign currency translation	(1)
Ending balance	36
Contract Terminations and Other
Restructuring Reserve [Roll Forward]
Beginning balance	5
Restructuring charges	0
Cash paid	0
Foreign currency translation	0
Ending balance	$ 5

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
Income Taxes (Details)	Mar. 30, 2024	Apr. 01, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	15.20%	15.90%
U.S. federal statutory income tax rate	21%	21%