Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 30, 2023 | Feb. 03, 2024 | Jul. 01, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-30 | ||
Document Period End Date | Dec. 30, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 1-5480 | ||
Entity Registrant Name | Textron Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 05-0315468 | ||
Entity Address, Address Line One | 40 Westminster Street | ||
Entity Address, City or Town | Providence | ||
Entity Address, State or Province | RI | ||
Entity Address, Postal Zip Code | 02903 | ||
City Area Code | 401 | ||
Local Phone Number | 421-2800 | ||
Title of 12(b) Security | Common Stock — par value $0.125 | ||
Trading Symbol | TXT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 13.3 | ||
Entity Common Stock, Shares Outstanding | 192,853,981 | ||
Documents Incorporated by Reference | Part III of this Report incorporates information from certain portions of the registrant’s Definitive Proxy Statement for its Annual Meeting of Shareholders to be held on April 24, 2024. | ||
Entity Central Index Key | 0000217346 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Boston, Massachusetts |
Auditor Firm ID | 42 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Revenues | |||
Total revenues | $ 13,683 | $ 12,869 | $ 12,382 |
Costs, expenses and other | |||
Selling and administrative expense | 1,225 | 1,186 | 1,221 |
Interest expense, net | 77 | 107 | 142 |
Special charges | 126 | 0 | 25 |
Non-service components of pension and postretirement income, net | (237) | (240) | (159) |
Gain on business disposition | 0 | 0 | (17) |
Total costs, expenses and other | 12,596 | 11,853 | 11,509 |
Income from continuing operations before income taxes | 1,087 | 1,016 | 873 |
Income tax expense | 165 | 154 | 126 |
Income from continuing operations | 922 | 862 | 747 |
Loss from discontinued operations | (1) | (1) | (1) |
Net income | $ 921 | $ 861 | $ 746 |
Basic Earnings per share | |||
Continuing operations (in dollars per share) | $ 4.62 | $ 4.05 | $ 3.33 |
Discontinued operations (in dollars per share) | (0.01) | 0 | 0 |
Basic Earnings per share (in dollars per share) | 4.61 | 4.05 | 3.33 |
Diluted Earnings per share | |||
Continuing operations (in dollars per share) | 4.57 | 4.01 | 3.30 |
Discontinued operations (in dollars per share) | (0.01) | 0 | 0 |
Diluted Earnings per share (in dollars per share) | $ 4.56 | $ 4.01 | $ 3.30 |
Manufacturing group | |||
Costs, expenses and other | |||
Income from continuing operations | $ 884 | $ 835 | $ 740 |
Finance group | |||
Revenues | |||
Total revenues | 55 | 52 | 49 |
Costs, expenses and other | |||
Income from continuing operations | 38 | 27 | 7 |
Product | |||
Costs, expenses and other | |||
Total cost of sales | 9,770 | 9,380 | 8,955 |
Product | Manufacturing group | |||
Revenues | |||
Total revenues | 11,573 | 10,945 | 10,541 |
Service | |||
Costs, expenses and other | |||
Total cost of sales | 1,635 | 1,420 | 1,342 |
Service | Manufacturing group | |||
Revenues | |||
Total revenues | $ 2,055 | $ 1,872 | $ 1,792 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 921 | $ 861 | $ 746 |
Other comprehensive income (loss), net of tax | |||
Pension and postretirement benefits adjustments, net of reclassifications | (82) | 283 | 981 |
Foreign currency translation adjustments, net of reclassifications | 45 | (103) | (37) |
Deferred gains (losses) on hedge contracts, net of reclassifications | 5 | (3) | 2 |
Total other comprehensive income (loss), net of tax | (32) | 177 | 946 |
Comprehensive income | $ 889 | $ 1,038 | $ 1,692 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Inventories | $ 3,914 | $ 3,550 |
Property, plant and equipment, net | 2,477 | 2,523 |
Finance receivables, net | 585 | 563 |
Assets | 16,856 | 16,293 |
Liabilities | ||
Total liabilities | 9,869 | 9,180 |
Shareholders' equity | ||
Common stock (195.0 million and 207.4 million shares issued, respectively, and 192.9 million and 206.2 million shares outstanding, respectively) | 24 | 26 |
Capital surplus | 1,910 | 1,880 |
Treasury stock | (165) | (84) |
Retained earnings | 5,862 | 5,903 |
Accumulated other comprehensive loss | (644) | (612) |
Total shareholders’ equity | 6,987 | 7,113 |
Total liabilities and shareholders’ equity | 16,856 | 16,293 |
Manufacturing group | ||
Assets | ||
Cash and equivalents | 2,121 | 1,963 |
Accounts receivable, net | 868 | 855 |
Inventories | 3,914 | 3,550 |
Other current assets | 857 | 1,033 |
Total current assets | 7,760 | 7,401 |
Property, plant and equipment, net | 2,477 | 2,523 |
Goodwill | 2,295 | 2,283 |
Other assets | 3,663 | 3,422 |
Assets | 16,195 | 15,629 |
Liabilities | ||
Current portion of long-term debt | 357 | 7 |
Accounts payable | 1,023 | 1,018 |
Other current liabilities | 2,998 | 2,645 |
Total current liabilities | 4,378 | 3,670 |
Other liabilities | 1,904 | 1,879 |
Long-term debt | 3,169 | 3,175 |
Debt | 3,526 | 3,182 |
Total liabilities | 9,451 | 8,724 |
Finance group | ||
Assets | ||
Cash and equivalents | 60 | 72 |
Finance receivables, net | 585 | 563 |
Other assets | 16 | 29 |
Assets | 661 | 664 |
Liabilities | ||
Other liabilities | 70 | 81 |
Debt | 348 | 375 |
Total liabilities | $ 418 | $ 456 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, issued (in shares) | 195,000 | 207,400 |
Common stock, outstanding (in shares) | 192,898 | 206,161 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Capital Surplus | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Jan. 02, 2021 | $ 5,845 | $ 29 | $ 1,785 | $ (203) | $ 5,973 | $ (1,739) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 746 | 746 | ||||
Other comprehensive income (loss) | 946 | 946 | ||||
Dividends declared | (18) | (18) | ||||
Share-based compensation activity | 213 | 1 | 212 | |||
Purchases of common stock | (921) | (921) | ||||
Retirement of treasury stock | 0 | (2) | (134) | 967 | (831) | |
Other | 4 | 4 | ||||
Ending Balance at Jan. 01, 2022 | 6,815 | 28 | 1,863 | (157) | 5,870 | (789) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 861 | 861 | ||||
Other comprehensive income (loss) | 177 | 177 | ||||
Dividends declared | (17) | (17) | ||||
Share-based compensation activity | 144 | 144 | ||||
Purchases of common stock | (867) | (867) | ||||
Retirement of treasury stock | 0 | (2) | (127) | 940 | (811) | |
Ending Balance at Dec. 31, 2022 | 7,113 | 26 | 1,880 | (84) | 5,903 | (612) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 921 | 921 | ||||
Other comprehensive income (loss) | (32) | (32) | ||||
Dividends declared | (16) | (16) | ||||
Share-based compensation activity | 179 | 179 | ||||
Purchases of common stock | (1,178) | (1,178) | ||||
Retirement of treasury stock | 0 | (2) | (149) | 1,097 | (946) | |
Ending Balance at Dec. 30, 2023 | $ 6,987 | $ 24 | $ 1,910 | $ (165) | $ 5,862 | $ (644) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 0.08 | $ 0.08 | $ 0.08 |
Excise tax | $ 10 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash flows from operating activities | |||
Income from continuing operations | $ 922 | $ 862 | $ 747 |
Non-cash items: | |||
Depreciation and amortization | 395 | 397 | 390 |
Deferred income taxes | (192) | (220) | 23 |
Asset impairments | 88 | 2 | 13 |
Gain on business disposition | 0 | 0 | (17) |
Other, net | 90 | 94 | 88 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (9) | (26) | (58) |
Inventories | (359) | (55) | 45 |
Other assets | 267 | 35 | (112) |
Accounts payable | 2 | 235 | 13 |
Other liabilities | 276 | 270 | 405 |
Income taxes, net | 4 | 18 | 11 |
Pension, net | (202) | (165) | (82) |
Captive finance receivables, net | (17) | 35 | 131 |
Other operating activities, net | 2 | 8 | 2 |
Net cash provided by (used in) operating activities of continuing operations | 1,267 | 1,490 | 1,599 |
Net cash used in operating activities of discontinued operations | (1) | (2) | (1) |
Net cash provided by (used in) operating activities | 1,266 | 1,488 | 1,598 |
Cash flows from investing activities | |||
Capital expenditures | (402) | (354) | (375) |
Net cash used in acquisitions | (1) | (202) | 0 |
Net proceeds (payments) from corporate-owned life insurance policies | 40 | 23 | (2) |
Proceeds from sale of property, plant and equipment and an insurance recovery | 18 | 22 | 3 |
Net proceeds from business disposition | 0 | 0 | 38 |
Finance receivables repaid | 26 | 20 | 19 |
Other investing activities, net | 2 | 44 | 36 |
Net cash provided by (used in) investing activities | (317) | (447) | (281) |
Cash flows from financing activities | |||
Decrease in short-term debt | 0 | (14) | (1) |
Net proceeds from long-term debt | 348 | 0 | 0 |
Principal payments on long-term debt and nonrecourse debt | (44) | (234) | (621) |
Purchases of Textron common stock | (1,168) | (867) | (921) |
Proceeds from exercise of stock options | 73 | 44 | 116 |
Dividends paid | (16) | (17) | (18) |
Other financing activities, net | (6) | (3) | (1) |
Net cash used in financing activities | (813) | (1,091) | (1,446) |
Effect of exchange rate changes on cash and equivalents | 10 | (32) | (8) |
Net increase (decrease) in cash and equivalents | 146 | (82) | (137) |
Cash and equivalents at beginning of year | 2,035 | 2,117 | 2,254 |
Cash and equivalents at end of year | $ 2,181 | $ 2,035 | $ 2,117 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - Manufacturing Group and Finance Group - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash flows from operating activities | |||
Income from continuing operations | $ 922 | $ 862 | $ 747 |
Non-cash items: | |||
Depreciation and amortization | 395 | 397 | 390 |
Deferred income taxes | (192) | (220) | 23 |
Asset impairments | 88 | 2 | 13 |
Gain on business disposition | 0 | 0 | (17) |
Other, net | 90 | 94 | 88 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (9) | (26) | (58) |
Inventories | (359) | (55) | 45 |
Other assets | 267 | 35 | (112) |
Accounts payable | 2 | 235 | 13 |
Other liabilities | 276 | 270 | 405 |
Income taxes, net | 4 | 18 | 11 |
Pension, net | (202) | (165) | (82) |
Other operating activities, net | 2 | 8 | 2 |
Net cash provided by (used in) operating activities of continuing operations | 1,267 | 1,490 | 1,599 |
Net cash used in operating activities of discontinued operations | (1) | (2) | (1) |
Net cash provided by (used in) operating activities | 1,266 | 1,488 | 1,598 |
Cash flows from investing activities | |||
Capital expenditures | (402) | (354) | (375) |
Net cash used in acquisitions | (1) | (202) | 0 |
Net proceeds (payments) from corporate-owned life insurance policies | 40 | 23 | (2) |
Proceeds from sale of property, plant and equipment and an insurance recovery | 18 | 22 | 3 |
Net proceeds from business disposition | 0 | 0 | 38 |
Finance receivables repaid | 26 | 20 | 19 |
Other investing activities, net | 2 | 44 | 36 |
Net cash provided by (used in) investing activities | (317) | (447) | (281) |
Cash flows from financing activities | |||
Net proceeds from long-term debt | 348 | 0 | 0 |
Principal payments on long-term debt and nonrecourse debt | (44) | (234) | (621) |
Purchases of Textron common stock | (1,168) | (867) | (921) |
Proceeds from exercise of stock options | 73 | 44 | 116 |
Dividends paid | (16) | (17) | (18) |
Other financing activities, net | (6) | (3) | (1) |
Net cash used in financing activities | (813) | (1,091) | (1,446) |
Effect of exchange rate changes on cash and equivalents | 10 | (32) | (8) |
Net increase (decrease) in cash and equivalents | 146 | (82) | (137) |
Cash and equivalents at beginning of year | 2,035 | 2,117 | 2,254 |
Cash and equivalents at end of year | 2,181 | 2,035 | 2,117 |
Decrease in short-term debt | 0 | (14) | (1) |
Manufacturing group | |||
Cash flows from operating activities | |||
Income from continuing operations | 884 | 835 | 740 |
Non-cash items: | |||
Depreciation and amortization | 395 | 396 | 380 |
Deferred income taxes | (188) | (200) | 27 |
Asset impairments | 88 | 2 | 13 |
Gain on business disposition | 0 | 0 | (17) |
Other, net | 110 | 103 | 97 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (9) | (26) | (58) |
Inventories | (359) | (55) | 45 |
Other assets | 261 | 34 | (111) |
Accounts payable | 2 | 235 | 13 |
Other liabilities | 281 | 277 | 404 |
Income taxes, net | 5 | 18 | 16 |
Pension, net | (202) | (165) | (82) |
Other operating activities, net | 2 | 7 | 2 |
Net cash provided by (used in) operating activities of continuing operations | 1,270 | 1,461 | 1,469 |
Net cash used in operating activities of discontinued operations | (1) | (2) | (1) |
Net cash provided by (used in) operating activities | 1,269 | 1,459 | 1,468 |
Cash flows from investing activities | |||
Capital expenditures | (402) | (354) | (375) |
Net cash used in acquisitions | (1) | (202) | 0 |
Net proceeds (payments) from corporate-owned life insurance policies | 40 | 23 | (2) |
Proceeds from sale of property, plant and equipment and an insurance recovery | 18 | 22 | 3 |
Net proceeds from business disposition | 0 | 0 | 38 |
Finance receivables repaid | 0 | 0 | 0 |
Finance receivables originated | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | 1 |
Net cash provided by (used in) investing activities | (345) | (511) | (335) |
Cash flows from financing activities | |||
Net proceeds from long-term debt | 348 | 0 | 0 |
Principal payments on long-term debt and nonrecourse debt | (7) | (18) | (524) |
Purchases of Textron common stock | (1,168) | (867) | (921) |
Proceeds from exercise of stock options | 73 | 44 | 116 |
Dividends paid | (16) | (17) | (18) |
Other financing activities, net | (6) | (3) | (1) |
Net cash used in financing activities | (776) | (875) | (1,349) |
Effect of exchange rate changes on cash and equivalents | 10 | (32) | (8) |
Net increase (decrease) in cash and equivalents | 158 | 41 | (224) |
Cash and equivalents at beginning of year | 1,963 | 1,922 | 2,146 |
Cash and equivalents at end of year | 2,121 | 1,963 | 1,922 |
Decrease in short-term debt | 0 | (14) | (1) |
Finance group | |||
Cash flows from operating activities | |||
Income from continuing operations | 38 | 27 | 7 |
Non-cash items: | |||
Depreciation and amortization | 0 | 1 | 10 |
Deferred income taxes | (4) | (20) | (4) |
Asset impairments | 0 | 0 | 0 |
Gain on business disposition | 0 | 0 | 0 |
Other, net | (20) | (9) | (9) |
Changes in assets and liabilities: | |||
Accounts receivable, net | 0 | 0 | 0 |
Inventories | 0 | 0 | 0 |
Other assets | 6 | 1 | (1) |
Accounts payable | 0 | 0 | 0 |
Other liabilities | (5) | (7) | 1 |
Income taxes, net | (1) | 0 | (5) |
Pension, net | 0 | 0 | 0 |
Other operating activities, net | 0 | 0 | 0 |
Net cash provided by (used in) operating activities of continuing operations | 14 | (7) | (1) |
Net cash used in operating activities of discontinued operations | 0 | 0 | 0 |
Net cash provided by (used in) operating activities | 14 | (7) | (1) |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | 0 |
Net cash used in acquisitions | 0 | 0 | 0 |
Net proceeds (payments) from corporate-owned life insurance policies | 0 | 0 | 0 |
Proceeds from sale of property, plant and equipment and an insurance recovery | 0 | 0 | 0 |
Net proceeds from business disposition | 0 | 0 | 0 |
Finance receivables repaid | 169 | 147 | 250 |
Finance receivables originated | (160) | (92) | (100) |
Other investing activities, net | 2 | 45 | 35 |
Net cash provided by (used in) investing activities | 11 | 100 | 185 |
Cash flows from financing activities | |||
Net proceeds from long-term debt | 0 | 0 | 0 |
Principal payments on long-term debt and nonrecourse debt | (37) | (216) | (97) |
Purchases of Textron common stock | 0 | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Other financing activities, net | 0 | 0 | 0 |
Net cash used in financing activities | (37) | (216) | (97) |
Effect of exchange rate changes on cash and equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and equivalents | (12) | (123) | 87 |
Cash and equivalents at beginning of year | 72 | 195 | 108 |
Cash and equivalents at end of year | 60 | 72 | 195 |
Decrease in short-term debt | $ 0 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Financial Statement Presentation Our Consolidated Financial Statements include the accounts of Textron Inc. and its majority-owned subsidiaries. Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron Inc. 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 (TFC) 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. Our Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of Cash Flows, cash received from customers is reflected as operating activities when received from third parties. However, in the cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in the Finance group’s statement of cash flows. Meanwhile, in the Manufacturing group’s statement of cash flows, the cash received from the Finance group on the customer’s behalf is recorded within operating cash flows as a cash inflow. Although cash is transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or eliminated in consolidation. Collaborative Arrangements Our Bell segment has a strategic alliance agreement with a third-party company to provide engineering, development and test services related to the V-22 aircraft, as well as to produce the V-22 aircraft, under a number of separate contracts with the U.S. Government (V-22 Contracts). The alliance created by this agreement is not a legal entity and has no employees, no assets and no true operations. This agreement creates contractual rights and does not represent an entity in which we have an equity interest. We account for this alliance as a collaborative arrangement with Bell and the third-party company reporting costs incurred and revenues generated from transactions with the U.S. Government in each company’s respective income statement. Neither Bell nor the third-party company is considered to be the principal participant for the transactions recorded under this agreement. Profits on cost-plus contracts are allocated between Bell and the third-party company on a 50%-50% basis. Negotiated profits on fixed-price contracts are also allocated 50%-50%; however, Bell and the third-party company are each responsible for their own cost overruns and are entitled to retain any cost underruns. Based on the contractual arrangement established under the alliance, Bell accounts for its rights and obligations under the specific requirements of the V-22 Contracts allocated to Bell under the work breakdown structure. We account for all of our rights and obligations, including warranty, product and any contingent liabilities, under the specific requirements of the V-22 Contracts allocated to us under the agreement. Revenues and cost of sales reflect our performance under the V-22 Contracts with revenues recognized using the cost-to-cost method. We include all assets used in performance of the V-22 Contracts that we own and all liabilities arising from our obligations under the V-22 Contracts in our Consolidated Balance Sheets. 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. Revenue Recognition Revenue is recognized when control of the product or service promised under the contract is transferred to the customer either at a point in time (e.g., upon delivery) or over time (e.g., as we perform under the contract). We account for a contract when it has approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has commercial substance and collectability of consideration is probable. Contracts are reviewed to determine whether there is one or multiple performance obligations. A performance obligation is a promise to transfer a distinct product or service to a customer and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected consideration, or the transaction price, is allocated to each performance obligation identified in the contract based on the relative standalone selling price of each performance obligation. Revenue is then recognized for the transaction price allocated to the performance obligation when control of the promised product or service underlying the performance obligation is transferred. Contract consideration is not adjusted for the effects of a significant financing component when, at contract inception, the period between when control transfers and when the customer will pay for that good or service is one year or less. Revenue is classified as product or service revenue based on the predominant attributes of each performance obligation. Commercial Contracts The majority of our contracts with commercial customers have a single performance obligation as there is only one product or service promised or the promise to transfer the product or service is not distinct or separately identifiable from other promises in the contract. Revenue is primarily recognized at a point in time, which is generally when the customer obtains control of the asset upon delivery and customer acceptance. Contract modifications that provide for additional distinct products or services at the standalone selling price are treated as separate contracts. For commercial aircraft, we contract with our customers to sell fully outfitted fixed-wing aircraft, which may include configuration options. The aircraft typically represents a single performance obligation and revenue is recognized upon customer acceptance and delivery. For commercial helicopters, our customers generally contract with us for fully functional basic configuration aircraft and control is transferred upon customer acceptance and delivery. At times, customers may separately contract with us for the installation of accessories and customization to the basic aircraft. If these contracts are entered into at or near the same time of the basic aircraft contract, we assess whether the contracts meet the criteria to be combined. For contracts that are combined, the basic aircraft and the accessories and customization are typically considered to be distinct, and therefore, are separate performance obligations. For these contracts, revenue is recognized on the basic aircraft upon customer acceptance and transfer of title and risk of loss, and on the accessories and customization, upon delivery and customer acceptance. We utilize observable prices to determine the standalone selling prices when allocating the transaction price to these performance obligations. The transaction price for our commercial contracts reflects our estimate of returns, rebates and discounts, which are based on historical, current and forecasted information. Amounts billed to customers for shipping and handling are included in the transaction price and generally are not treated as separate performance obligations as these costs fulfill a promise to transfer the product to the customer. Taxes collected from customers and remitted to government authorities are recorded on a net basis. We primarily provide standard warranty programs for products in our commercial businesses for periods that typically range from one year to five years. These assurance-type programs typically cannot be purchased separately and do not meet the criteria to be considered a performance obligation. U.S. Government Contracts Our contracts with the U.S. Government generally include the design, development, manufacture or modification of aerospace and defense products, as well as related services. These contracts, which also include those under the U.S. Government-sponsored foreign military sales program, accounted for approximately 21% of total revenues in 2023. The customer typically contracts with us to provide a significant service of integrating a complex set of tasks and components into a single project or capability, which often results in the delivery of multiple units. Accordingly, the entire contract is accounted for as one performance obligation. In certain circumstances, a contract may include both production and support services, such as logistics and parts plans, which are considered to be distinct in the context of the contract and represent separate performance obligations. When a contract is separated into more than one performance obligation, we generally utilize the expected cost plus a margin approach to determine the standalone selling prices when allocating the transaction price. Our contracts are frequently modified for changes in contract specifications and requirements. Most of our contract modifications with the U.S. Government are for products and services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as part of that existing contract. The effect of these contract modifications on our estimates is recognized using the cumulative catch-up method of accounting. Contracts with the U.S. Government generally contain clauses that provide lien rights to work-in-process along with clauses that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work-in-process. Due to the continuous transfer of control to the U.S. Government, we recognize revenue over the time that we perform under the contract. Selecting the method to measure progress towards completion requires judgment and is based on the nature of the products or service to be provided. We generally use the cost-to-cost method to measure progress for our contracts because it best depicts the transfer of control to the customer that occurs as we incur costs on our contracts. Under this measure, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the estimated costs at completion of the performance obligation, and revenue is recorded proportionally as costs are incurred. The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees or other provisions that can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and can be based upon customer discretion. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance, historical performance, and all other information that is reasonably available to us. Total contract cost is estimated utilizing current contract specifications and expected engineering requirements. Contract costs typically are incurred over a period of several years, and the estimation of these costs requires substantial judgment. Our cost estimation process is based on the professional knowledge and experience of engineers and program managers along with finance professionals. We review and update our projections of costs quarterly or more frequently when circumstances significantly change. Approximately 73% of our 2023 revenues with the U.S. Government were under fixed-price and fixed-price incentive contracts. Under the typical payment terms of these contracts, the customer pays us either performance-based or progress payments. Performance-based payments represent interim payments of up to 90% of the contract price based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments of up to 80% of costs incurred as the work progresses. Because the customer retains a small portion of the contract price until completion of the contract, these contracts generally result in revenue recognized in excess of billings, which we present as contract assets in the Consolidated Balance Sheets. Amounts billed and due from our customers are classified in Accounts receivable, net. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer. For cost-type contracts, we are generally paid for our actual costs incurred within a short period of time. Finance Revenues Finance revenues primarily include interest on finance receivables, finance lease earnings and portfolio gains/losses. Portfolio gains/losses include impairment charges related to repossessed assets and properties and gains/losses on the sale or early termination of finance assets. We recognize interest using the interest method, which provides a constant rate of return over the terms of the receivables. Accrual of interest income is suspended if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically suspend the accrual of interest income for accounts that are contractually delinquent by more than three months unless collection is not doubtful. Cash payments on nonaccrual accounts, including finance charges, generally are applied to reduce the net investment balance. Once we conclude that the collection of all principal and interest is no longer doubtful, we resume the accrual of interest and recognize previously suspended interest income at the time either a) the loan becomes contractually current through payment according to the original terms of the loan, or b) if the loan has been modified, following a period of performance under the terms of the modification. Contract Estimates For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable. In 2023, our cumulative catch-up adjustments increased segment profit by $44 million and net income by $34 million, ($0.17 per diluted share). In 2022, our cumulative catch-up adjustments decreased segment profit by $16 million and net income by $12 million ($0.06 per diluted share). In 2021, our cumulative catch-up adjustments increased segment profit by $81 million and net income by $62 million ($0.27 per diluted share). Revenue was increased by $42 million in 2023, reduced by $25 million in 2022 and increased by $93 million in 2021, related to changes in profit booking rates for performance obligations satisfied in prior periods. Contract Assets and Liabilities Contract assets arise from contracts when revenue is recognized over time and the amount of revenue recognized exceeds the amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on events other than the passage of time and are included in Other current assets in the Consolidated Balance Sheets. Contract liabilities, which are primarily included in Other current liabilities, include deposits, largely from our commercial aviation customers, and billings in excess of revenue recognized. The incremental costs of obtaining a contract with a customer that is expected to be recovered is expensed as incurred when the period to be benefitted is one year or less. Accounts Receivable, Net Accounts receivable, net includes amounts billed to customers where the right to payment is unconditional. We maintain an allowance for credit losses for our commercial accounts receivable to provide for the estimated amount that will not be collected, even when the risk of loss is remote. The allowance is measured on a collective pool basis when similar risk characteristics exist and is established as a percentage of accounts receivable. We have identified pools with similar risk characteristics, based on customer and industry type and geographic location. The percentage is based on all available and relevant information including age of outstanding receivables and collateral value, if any, historical payment experience and loss history, current economic conditions, and, when reasonable and supportable factors exist, management’s expectation of future economic conditions. For amounts due from the U.S. Government, we have not established an allowance for credit losses as we have zero loss expectation based on a long history of no credit losses and the explicit guarantee of a sovereign entity. Cash and Equivalents Cash and equivalents consist of cash and short-term, highly liquid investments with original maturities of three months or less. Inventories Inventories are stated at the lower of cost or estimated realizable value. The majority of our inventories are valued using the last-in, first-out (LIFO) method, while the remaining inventories are generally valued using the first-in, first-out (FIFO) method. Property, Plant and Equipment Property, plant and equipment are recorded at cost and are depreciated primarily using the straight-line method. We capitalize expenditures for improvements that increase asset values and extend useful lives. Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the carrying value of the asset exceeds the sum of the undiscounted expected future cash flows, the asset is written down to fair value. Goodwill and Intangible Assets Goodwill represents the excess of the consideration paid for the acquisition of a business over the fair values assigned to intangible and other net assets of the acquired business. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to an annual impairment test. We evaluate the recoverability of these assets in the fourth quarter of each year or more frequently if events or changes in circumstances, such as declines in sales, earnings or cash flows, or material adverse changes in the business climate, indicate a potential impairment. For our goodwill impairment test, we calculate the fair value of each reporting unit using discounted cash flows. A reporting unit represents the operating segment unless discrete financial information is prepared and reviewed by segment management for businesses one level below that operating segment, in which case such component is the reporting unit. In certain instances, we have aggregated components of an operating segment into a single reporting unit based on similar economic characteristics. The discounted cash flows incorporate assumptions for revenue growth rates, operating margins and discount rates that represent our best estimates of current and forecasted market conditions, cost structure, anticipated net cost reductions, and the implied rate of return that we believe a market participant would require for an investment in a business having similar risks and characteristics to the reporting unit being assessed. The fair value of our indefinite-lived intangible assets is primarily determined using the relief of royalty method based on forecasted revenues and royalty rates. If the estimated fair value of the reporting unit or indefinite-lived intangible asset exceeds the carrying value, there is no impairment. Otherwise, an impairment loss is recognized for the amount by which the carrying value exceeds the estimated fair value. Acquired intangible assets with finite lives are subject to amortization. These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Amortization of these intangible assets is recognized over their estimated useful lives using a method that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. Approximately 82% of our gross intangible assets are amortized based on the cash flow streams used to value the assets, with the remaining assets amortized using the straight-line method. Finance Receivables Finance receivables primarily include loans provided to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters. Finance receivables are generally recorded at the amount of outstanding principal less allowance for credit losses. We establish an allowance for credit losses to cover probable but specifically unknown losses existing in the portfolio. This allowance is established as a percentage of finance receivables categorized by pools with similar risk characteristics, such as collateral or customer type and geographic location. The percentage is based on a combination of factors, including historical loss experience, current delinquency and default trends, collateral values, current economic conditions, and, when reasonable and supportable factors exist, management’s expectation of future economic conditions. For those finance receivables that do not have similar risk characteristics, including larger balance accounts specifically identified as impaired, a reserve is established based on comparing the expected future cash flows, discounted at the finance receivable's effective interest rate, or the fair value of the underlying collateral if the finance receivable is collateral dependent, to its carrying amount. The expected future cash flows consider collateral value; financial performance and liquidity of our borrower; existence and financial strength of guarantors; estimated recovery costs, including legal expenses; and costs associated with the repossession and eventual disposal of collateral. When there is a range of potential outcomes, we perform multiple discounted cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence. The evaluation of our portfolio is inherently subjective, as it requires estimates, including the amount and timing of future cash flows expected to be received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual results. While our analysis is specific to each individual account, critical factors included in this analysis include industry valuation guides, age and physical condition of the collateral, payment history, and existence and financial strength of guarantors. Finance receivables are charged off at the earlier of the date the collateral is repossessed or when management no longer deems the receivable collectible. Repossessed assets are recorded at their fair value, less estimated cost to sell. Pension and Postretirement Benefit Obligations We maintain various pension and postretirement plans for our employees globally. Our pension plans include significant benefit obligations, which are calculated based on actuarial valuations. Key assumptions used in determining these obligations and related expenses include expected long-term rates of return on plan assets, discount rates and healthcare cost projections. We evaluate and update these assumptions annually in consultation with third-party actuaries and investment advisors. We also make assumptions regarding employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation increases. For our year-end measurement, our defined benefit plan assets and obligations are measured as of the month-end date closest to our fiscal year-end. We recognize the overfunded or underfunded status of our pension and postretirement plans in the Consolidated Balance Sheets and recognize changes in the funded status of our defined benefit plans in comprehensive income (loss) in the year in which they occur. To the extent actuarial gains and losses exceed 10% of the higher of the market-related value of assets or the benefit obligation in a year, the excess is recognized as a component of accumulated other comprehensive income (loss) and is amortized into net periodic pension cost over the remaining service period of the active participants. For plans in which all or almost all of the plan’s participants are inactive, the amortization period is the remaining life expectancy of the inactive participants. This determination is made on a plan-by-plan basis. Derivatives and Hedging Activities We are exposed to market risk primarily from changes in currency exchange rates and interest rates. We do not hold or issue derivative financial instruments for trading or speculative purposes. To manage the volatility relating to our exposures, we net these exposures on a consolidated basis to take advantage of natural offsets. For the residual portion, we enter into various derivative transactions pursuant to our policies in areas such as counterparty exposure and hedging practices. Credit risk related to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and through periodic settlements of positions. All derivative instruments are reported at fair value in the Consolidated Balance Sheets. Designation to support hedge accounting is performed on a specific exposure basis. For financial instruments qualifying as cash flow hedges, we record changes in the fair value of derivatives (to the extent they are effective as hedges) in other comprehensive income (loss), net of deferred taxes. Changes in fair value of derivatives not qualifying as hedges are recorded in earnings. Foreign currency denominated assets and liabilities are translated into U.S. dollars. Adjustments from currency rate changes are recorded in the cumulative translation adjustment account in shareholders’ equity until the related foreign entity is sold or substantially liquidated. Leases We identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. For our contracts that contain both lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs or other goods/services), we allocate the consideration in the contract to each component based on its standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the commencement date. For these leases, we capitalize the lesser of a) the present value of the minimum lease payments over the lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option. Operating leases are recognized as a single lease cost on a straight-line basis over the lease term, while finance lease cost is recognized separately as amortization and interest expense. Product Liabilities We accrue for product liability claims and related defense costs when a loss is probable and reasonably estimable. Our estimates are generally based on the specifics of each claim or incident and our best estimate of the probable loss using historical experience. Environmental Liabilities and Asset Retirement Obligations Liabilities for environmental matters are recorded on a site-by-site basis when it is probable that an obligation has been incurred and the cost can be reasonably estimated. We estimate our accrued environmental liabilities using currently available facts, existing technology, and presently enacted laws and regulations, all of which are subject to a number of factors and uncertainties. Our environmental liabilities are not discounted and do not take into consideration possible future insurance proceeds or significant amounts from claims against other third parties. We have incurred asset retirement obligations primarily related to costs to remove and dispose of underground storage tanks and asbestos materials used in insulation, adhesive fillers and floor tiles. Currently, there is no legal requirement to remove these items and there is no plan to remodel the related facilities or otherwise cause the impacted items to require disposal. Since these asset retirement obligations are not probable, there is no related liability recorded in the Consolidated Balance Sheets. Warranty Liabilities For our assurance-type warranty programs, we estimate the costs that may be incurred and record a liability in the amount of such costs at the time product revenues are recognized. Factors that affect this liability include the number of products sold, historical costs per claim, length of warranty period, contractual recoveries from vendors and historical and anticipated rates of warranty claims, including production and warranty patterns for new models. We assess the adequacy of our recorded warranty liability periodically and adjust the amounts as necessary. Additionally, we may establish a warranty liability related to the issuance of aircraft service bulletins for aircraft no longer covered under the limited warranty programs. Research and Development Costs Our customer-funded research and development costs are charged directly to the related contracts, which primarily consist of U.S. Government contracts. In accordance with government regulations, we recover a portion of company-funded research and development costs through overhead rate charges on our U.S. Government contracts. Research and development costs that are not reimbursable under a contract with the U.S. Government or another customer are charged to expense as incurred. Company-funded research and development costs were $570 million, $601 million and $619 million in 2023, 2022 and 2021, respectively, and are included in cost of sales. Income Taxes The provision for income tax expense is calculated on reported income before income taxes based on current tax law and includes, in the current period, the cumulative effect of any changes in tax rates from those used previously in det |
Business Acquisition and Dispos
Business Acquisition and Disposition | 12 Months Ended |
Dec. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisition and Disposition | Business Acquisition and Disposition On April 15, 2022, we acquired Pipistrel for a cash purchase price of $239 million, which included the assumption of $35 million of debt and other contractual obligations under the agreement and a final fixed payment of $21 million due in 2024. Pipistrel is a manufacturer of light aircraft and gliders with both electric and combustion engines and is included in the Textron eAviation segment. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill by segment are as follows: (In millions) Textron Bell Textron Industrial Textron eAviation Total Balance at January 1, 2022 $ 631 $ 35 $ 1,010 $ 473 $ — $ 2,149 Acquisitions 3 2 — — 141 146 Foreign currency translation (1) — — (8) (3) (12) Balance at December 31, 2022 633 37 1,010 465 138 2,283 Foreign currency translation — — — 5 7 12 Balance at December 30, 2023 $ 633 $ 37 $ 1,010 $ 470 $ 145 $ 2,295 Intangible Assets Our intangible assets are summarized below: December 30, 2023 December 31, 2022 (Dollars in millions) Weighted-Average Gross Accumulated Net Gross Accumulated Net Trade names and trademarks 18 $ 200 $ (9) $ 191 $ 199 $ (8) $ 191 Patents and technology 15 510 (333) 177 527 (319) 208 Customer relationships and 15 357 (326) 31 392 (330) 62 Total $ 1,067 $ (668) $ 399 $ 1,118 $ (657) $ 461 Trade names and trademarks in the table above include $169 million of indefinite-lived intangible assets at both December 30, 2023 and December 31, 2022. In 2023, we recognized $27 million of intangible asset impairment charges |
Accounts Receivable and Finance
Accounts Receivable and Finance Receivables | 12 Months Ended |
Dec. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable and Finance Receivables | Accounts Receivable and Finance Receivables Accounts Receivable Accounts receivable is composed of the following: (In millions) December 30, December 31, Commercial $ 831 $ 755 U.S. Government contracts 63 124 894 879 Allowance for credit losses (26) (24) Total $ 868 $ 855 Finance Receivables Finance receivables are presented in the following table: (In millions) December 30, December 31, Finance receivables $ 609 $ 587 Allowance for credit losses (24) (24) Total finance receivables, net $ 585 $ 563 Finance receivables primarily includes loans provided to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters. These loans generally have initial terms ranging from five years to twelve years, amortization terms ranging from eight years to fifteen years and an average balance of $1.9 million at December 30, 2023. Loans generally require the customer to pay a significant down payment, along with periodic scheduled principal payments that reduce the outstanding balance through the term of the loan. Our finance receivables are diversified across geographic region and borrower industry. At December 30, 2023, 57% of our finance receivables were distributed internationally and 43% throughout the U.S., compared with 58% and 42%, respectively, at December 31, 2022. 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 delinquency aging category are summarized as follows: (Dollars in millions) December 30, December 31, Performing $ 571 $ 515 Watchlist 23 26 Nonaccrual 15 46 Nonaccrual as a percentage of finance receivables 2.46% 7.84% Current and less than 31 days past due $ 589 $ 579 31-60 days past due 16 7 61-90 days past due — — Over 90 days past due 4 1 60+ days contractual delinquency as a percentage of finance receivables 0.66% 0.17% At December 30, 2023, 44% of our performing finance receivables were originated since the beginning of 2021 and 26% were originated from 2018 to 2020 with the remainder prior to 2018. For finance receivables categorized as watchlist, 100% were originated since the beginning of 2020 and for nonaccrual, 43% were originated from 2018 to 2020 with the remainder prior to 2018. On a quarterly basis, we evaluate individual larger balance accounts for impairment. A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality indicators described above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of principal and interest remains probable, but the account’s original terms have been, or are expected to be, significantly modified. If the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification. A summary of impaired finance receivables, excluding leveraged leases, and the average recorded investment is provided below: (In millions) December 30, December 31, Recorded investment: Impaired finance receivables with specific allowance for credit losses $ 11 $ 15 Impaired finance receivables with no specific allowance for credit losses 4 31 Total $ 15 $ 46 Unpaid principal balance $ 25 $ 60 Allowance for credit losses on impaired finance receivables 3 3 Average recorded investment of impaired finance receivables 27 67 A summary of the allowance for credit losses on finance receivables based on how the underlying finance receivables are evaluated for impairment is provided below. The finance receivables reported in this table exclude $86 million and $91 million of leveraged leases at December 30, 2023 and December 31, 2022, respectively, in accordance with U.S. generally accepted accounting principles. (In millions) December 30, December 31, Allowance for credit losses based on collective evaluation $ 21 $ 21 Allowance for credit losses based on individual evaluation 3 3 Finance receivables evaluated collectively 508 450 Finance receivables evaluated individually 15 46 |
Inventories
Inventories | 12 Months Ended |
Dec. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are composed of the following: (In millions) December 30, December 31, Finished goods $ 1,072 $ 991 Work in process 1,736 1,540 Raw materials and components 1,106 1,019 Total $ 3,914 $ 3,550 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Our Manufacturing group’s property, plant and equipment, net is composed of the following: (Dollars in millions) Useful Lives December 30, December 31, Land, buildings and improvements 2 - 40 $ 2,229 $ 2,140 Machinery and equipment 1 - 20 5,495 5,467 7,724 7,607 Accumulated depreciation and amortization (5,247) (5,084) Total $ 2,477 $ 2,523 The Manufacturing group’s depreciation expense totaled $353 million, $340 million and $325 million in 2023, 2022 and 2021, respectively. |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 12 Months Ended |
Dec. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Accounts Payable and Other Current Liabilities | Accounts Payable and Other Current Liabilities 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 April 2024. As of December 30, 2023 and December 31, 2022, the amount due under this supplier financing arrangement was $125 million and $110 million, respectively. Other Current Liabilities The other current liabilities of our Manufacturing group are summarized below: (In millions) December 30, December 31, Contract liabilities $ 1,595 $ 1,416 Salaries, wages and employer taxes 466 414 Current portion of warranty and product maintenance liabilities 215 171 Other 722 644 Total $ 2,998 $ 2,645 Changes in our warranty liability are as follows: (In millions) 2023 2022 2021 Balance at beginning of year $ 149 $ 127 $ 119 Provision 76 73 70 Settlements (69) (60) (66) Adjustments* 16 9 4 Balance at end of year $ 172 $ 149 $ 127 * Adjustments include changes to prior year estimates, new issues on prior year sales, business acquisitions and dispositions, and currency translation adjustments. |
Leases
Leases | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide through operating leases. Our operating leases have remaining lease terms up to 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 $69 million, $69 million and $66 million in 2023, 2022 and 2021, respectively. Variable and short-term lease costs were not significant. In 2023, 2022 and 2021, cash paid for operating lease liabilities totaled $69 million, $68 million and $66 million, respectively, and is classified in cash flows from operating activities. Noncash transactions totaled $54 million, $58 million and $86 million in 2023, 2022 and 2021, 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) December 30, December 31, Other assets $ 371 $ 372 Other current liabilities 55 54 Other liabilities 326 326 Weighted-average remaining lease term (in years) 10.3 10.4 Weighted-average discount rate 4.70% 4.14% At December 30, 2023, maturities of our operating lease liabilities on an undiscounted basis totaled $69 million for 2024, $62 million for 2025, $47 million for 2026, $41 million for 2027, $39 million for 2028 and $231 million thereafter. |
Debt and Credit Facilities
Debt and Credit Facilities | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Debt and Credit Facilities Our debt is summarized in the table below: (In millions) December 30, December 31, Manufacturing group 4.30% due 2024 $ 350 $ 350 3.875% due 2025 350 350 4.00% due 2026 350 350 3.65% due 2027 350 350 3.375% due 2028 300 300 3.90% due 2029 300 300 3.00% due 2030 650 650 2.45% due 2031 500 500 6.10% due 2033 350 — Other (weighted-average rate of 2.44% and 2.20%, respectively) 26 32 Total Manufacturing group debt $ 3,526 $ 3,182 Less: Current portion of long-term debt (357) (7) Total Long-term debt $ 3,169 $ 3,175 Finance group Variable-rate note due 2025 (weighted-average rate of 6.72% and 5.86%, respectively) $ 25 $ 25 Fixed-rate note due 2027 (4.40%) 50 50 Floating Rate Junior Subordinated Notes due 2067 (7.38% and 6.34%, respectively) 264 272 Other 9 28 Total Finance group debt $ 348 $ 375 The following table shows required principal payments during the next five years on debt outstanding at December 30, 2023: (In millions) 2024 2025 2026 2027 2028 Manufacturing group $ 357 $ 356 $ 355 $ 355 $ 303 Finance group 8 26 — 50 — Total $ 365 $ 382 $ 355 $ 405 $ 303 Textron has a senior unsecured revolving credit facility for an aggregate principal amount of $1.0 billion, of which $100 million is available for the issuance of letters of credit. We may elect to increase the aggregate amount of commitments under the facility to up to $1.3 billion by designating an additional lender or by an existing lender agreeing to increase its commitment. The facility expires in October 2027 and provides for two one-year extensions at our option with the consent of lenders representing a majority of the commitments under the facility. At December 30, 2023 and December 31, 2022, there were no amounts borrowed against the facility and there were $9 million of outstanding letters of credit issued under the facility. Floating Rate Junior Subordinated Notes The Finance group’s $264 million of Floating Rate Junior Subordinated Notes are unsecured and rank junior to all of its existing and future senior debt. The notes mature on February 15, 2067; however, we have the right to redeem the notes at par at any time and we are obligated to redeem the notes beginning on February 15, 2042. In 2023 and 2022, TFC repurchased $8 million and $17 million, respectively, of these notes. Interest is variable at the three-month CME Term Secured Overnight Financing Rate + 1.99661%. Support Agreement Under a Support Agreement between Textron and TFC, Textron is required to maintain a controlling interest in TFC. The agreement, as amended in December 2015, also requires Textron to ensure that TFC maintains fixed charge coverage of no less than 125% and consolidated shareholders' equity of no less than $125 million. There were no cash contributions required to be paid to TFC in 2023, 2022 and 2021 to maintain compliance with the support agreement. |
Derivative Instruments and Fair
Derivative Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Fair Value Measurements | Derivative Instruments and Fair Value Measurements We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We prioritize the assumptions that market participants would use in pricing the asset or liability into a three-tier fair value hierarchy. This fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs in which little or no market data exist, requiring companies to develop their own assumptions. Observable inputs that do not meet the criteria of Level 1, which include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets and liabilities in markets that are not active, are categorized as Level 2. Level 3 inputs are those that reflect our estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Valuation techniques for assets and liabilities measured using Level 3 inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data. These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain. Assets and Liabilities Recorded at Fair Value on a Recurring Basis We manufacture and sell our products in a number of countries throughout the world, and, therefore, we are exposed to movements in foreign currency exchange rates. We primarily utilize foreign currency exchange contracts with maturities of no more than three years to manage this volatility. These contracts qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales, inventory purchases and overhead expenses. Net gains and losses recognized in earnings and Accumulated other comprehensive loss on cash flow hedges, including gains and losses related to hedge ineffectiveness, were not significant in the periods presented. Our foreign currency exchange contracts are measured at fair value using the market method valuation technique. The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers. These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2. At December 30, 2023 and December 31, 2022, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $478 million and $354 million, respectively. At December 30, 2023, the fair value amounts of our foreign currency exchange contracts were a $4 million asset and a $3 million liability. At December 31, 2022, the fair value amount of our foreign currency exchange contracts was an $11 million liability. Our Finance group enters into interest rate swap agreements to mitigate exposure 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. In 2023, we entered into 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 December 31, 2022, we had an interest rate swap agreement related to these Notes with a notional amount of $272 million that matured in August 2023. We also entered into an interest rate swap agreement in May 2022 with a notional amount of $25 million that matures in June 2025 and effectively converts variable-rate interest on a term loan to a fixed rate of 4.13%. At December 30, 2023 and December 31, 2022, the fair value of our outstanding interest rate swap agreements was a $4 million asset and an $8 million asset, respectively. The fair value of these 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. 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: December 30, 2023 December 31, 2022 (In millions) Carrying Estimated Carrying Estimated Manufacturing group Debt, excluding leases $ (3,520) $ (3,342) $ (3,175) $ (2,872) Finance group Finance receivables, excluding leases 417 423 390 369 Debt (348) (293) (375) (294) Fair value for the Manufacturing group debt is determined using market observable data for similar transactions (Level 2). The fair value for the Finance group debt was determined primarily based on discounted cash flow analyses using observable market inputs from debt with similar duration, subordination and credit default expectations (Level 2). Fair value estimates for finance receivables were determined based on internally developed discounted cash flow models primarily utilizing significant unobservable inputs (Level 3), which include estimates of the rate of return, financing cost, capital structure and/or discount rate expectations of current market participants combined with estimated loan cash flows based on credit losses, payment rates and expectations of borrowers’ ability to make payments on a timely basis. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Capital Stock We have authorization for 15 million shares of preferred stock with a par value of $0.01 and 500 million shares of common stock with a par value of $0.125. Outstanding common stock activity is presented below: (In thousands) 2023 2022 2021 Balance at beginning of year 206,161 216,935 226,444 Share repurchases (16,169) (13,075) (13,533) Share-based compensation activity 2,906 2,301 4,024 Balance at end of year 192,898 206,161 216,935 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: (In thousands) 2023 2022 2021 Basic weighted-average shares outstanding 199,719 212,809 224,106 Dilutive effect of stock options 2,055 2,164 2,414 Diluted weighted-average shares outstanding 201,774 214,973 226,520 In 2023, 2022 and 2021, stock options to purchase 1.5 million, 1.0 million and 1.1 million shares, respectively, of common stock were excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive. Accumulated Other Comprehensive Loss The components of Accumulated other comprehensive loss are presented below: (In millions) Pension and Foreign Deferred Accumulated Balance at January 1, 2022 $ (799) $ 9 $ 1 $ (789) Other comprehensive income before reclassifications 214 (103) (3) 108 Reclassified from Accumulated other comprehensive loss 69 — — 69 Balance at December 31, 2022 $ (516) $ (94) $ (2) $ (612) Other comprehensive loss before reclassifications (82) 45 (1) (38) Reclassified from Accumulated other comprehensive loss — — 6 6 Balance at December 30, 2023 $ (598) $ (49) $ 3 $ (644) Other Comprehensive Income (Loss) The before and after-tax components of other comprehensive income (loss) are presented below: 2023 2022 2021 (In millions) Pre-Tax Tax After- Pre-Tax Tax After- Pre-Tax Tax After- Pension and postretirement benefits Unrealized gains (losses) $ (102) $ 25 $ (77) $ 285 $ (67) $ 218 $ 1,148 $ (271) $ 877 Amortization of net actuarial (gain) loss* (7) 2 (5) 83 (20) 63 150 (34) 116 Amortization of prior service cost* 8 (3) 5 8 (2) 6 7 (3) 4 Recognition of prior service cost (7) 2 (5) (4) — (4) (20) 4 (16) Pension and postretirement benefits (108) 26 (82) 372 (89) 283 1,285 (304) 981 Foreign currency translation adjustments: Foreign currency translation adjustments 45 — 45 (103) — (103) (51) — (51) Business disposition — — — — — — 14 — 14 Foreign currency translation adjustments, net 45 — 45 (103) — (103) (37) — (37) Deferred gains (losses) on hedge contracts: Current deferrals (2) 1 (1) (7) 4 (3) 3 — 3 Reclassification adjustments 8 (2) 6 — — — (1) — (1) Deferred gains (losses) on hedge 6 (1) 5 (7) 4 (3) 2 — 2 Total $ (57) $ 25 $ (32) $ 262 $ (85) $ 177 $ 1,250 $ (304) $ 946 * These components of other comprehensive income (loss) are included in the computation of net periodic pension cost. See Note 15 for additional information. |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment and Geographic Data | Segment and Geographic Data We operate in, and report financial information for, the following six operating segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation and Finance. The accounting policies of the segments are the same as those described in Note 1. Textron Aviation products include Cessna Citation jets, Beechcraft King Air and Cessna Caravan turboprop aircraft, military trainer and defense aircraft, piston engine aircraft, and aftermarket part sales and services sold to a diverse customer base including fractional aircraft businesses, charter and fleet operators, corporate aviation, individual buyers, training schools, airlines, and special mission, military and government operators. Bell products include military and commercial helicopters, tiltrotor aircraft and related spare parts and services. Bell supplies advanced military helicopters, tiltrotor aircraft, and aftermarket services to the U.S. and non-U.S. governments. Bell also supplies commercial helicopters and aftermarket services to corporate, private, law enforcement, utility, public safety and emergency medical helicopter operators, and U.S. and foreign governments. Textron Systems products and services include electronic systems and solutions, advanced marine craft, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, unmanned aircraft systems, and both manned and unmanned armored and specialty vehicles for U.S. and international military, government and commercial customers. Industrial products and markets include the following: • Kautex products include blow-molded plastic fuel systems, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, plastic tanks for selective catalytic reduction systems and battery systems for use in electric vehicles, from hybrid to full battery-powered, that are sold to automobile OEMs; and • Specialized Vehicles products include golf cars, off-road utility vehicles, powersports products, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment and specialized turf-care vehicles that are marketed primarily to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The Textron eAviation segment manufactures a family of light aircraft and gliders with both electric and combustion engines, and also performs other research and development initiatives related to sustainable aviation solutions. The Finance segment provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Beginning in 2023, we changed how we measure our segment profit for the manufacturing segments to exclude the non-service components of pension and postretirement income, net; LIFO inventory provision; and intangible asset amortization. This measure also continues to exclude interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. The prior periods have been recast to conform to this presentation. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense. Our revenues by segment, along with a reconciliation of segment profit to income from continuing operations before income taxes, are as follows: Revenues Segment Profit (Loss) (In millions) 2023 2022 2021 2023 2022 2021 Textron Aviation $ 5,373 $ 5,073 $ 4,566 $ 649 $ 560 $ 349 Bell 3,147 3,091 3,364 320 282 399 Textron Systems 1,235 1,172 1,273 147 132 178 Industrial 3,841 3,465 3,130 228 155 120 Textron eAviation 32 16 — (63) (24) — Finance 55 52 49 46 31 18 Total $ 13,683 $ 12,869 $ 12,382 $ 1,327 $ 1,136 $ 1,064 Corporate expenses and other, net (143) (143) (150) Interest expense, net for Manufacturing group (62) (94) (124) LIFO inventory provision (107) (71) (17) Intangible asset amortization (39) (52) (51) Special charges* (126) — (25) Non-service components of pension and 237 240 159 Gain on business disposition — — 17 Income from continuing operations before income taxes $ 1,087 $ 1,016 $ 873 * See Note 16 for additional information. Other information by segment is provided below: Assets Capital Expenditures Depreciation and Amortization (In millions) December 30, December 31, 2023 2022 2021 2023 2022 2021 Textron Aviation $ 4,542 $ 4,496 $ 138 $ 138 $ 115 $ 160 $ 152 $ 139 Bell 2,869 2,857 119 80 92 89 90 87 Textron Systems 2,008 1,989 48 57 80 41 49 45 Industrial 2,520 2,555 91 78 82 89 93 99 Textron eAviation 287 278 4 1 — 7 2 — Finance 661 664 — — — — 1 10 Corporate 3,969 3,454 2 — 6 9 10 10 Total $ 16,856 $ 16,293 $ 402 $ 354 $ 375 $ 395 $ 397 $ 390 Geographic Data Presented below is selected financial information by geographic area: Revenues* Property, Plant (In millions) 2023 2022 2021 December 30, December 31, United States $ 9,305 $ 8,702 $ 8,572 $ 2,104 $ 2,137 Europe 1,414 1,468 1,369 182 188 Other international 2,964 2,699 2,441 191 198 Total $ 13,683 $ 12,869 $ 12,382 $ 2,477 $ 2,523 * Revenues are attributed to countries based on the location of the customer. ** Property, plant and equipment, net is based on the location of the asset. |
Revenues
Revenues | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregation of Revenues Our revenues disaggregated by major product type are presented below: (In millions) 2023 2022 2021 Aircraft $ 3,577 $ 3,387 $ 3,116 Aftermarket parts and services 1,796 1,686 1,450 Textron Aviation $ 5,373 $ 5,073 $ 4,566 Military aircraft and support programs 1,701 1,740 2,073 Commercial helicopters, parts and services 1,446 1,351 1,291 Bell $ 3,147 $ 3,091 $ 3,364 Textron Systems $ 1,235 $ 1,172 $ 1,273 Fuel systems and functional components 1,954 1,771 1,735 Specialized vehicles 1,887 1,694 1,395 Industrial $ 3,841 $ 3,465 $ 3,130 Textron eAviation $ 32 $ 16 $ — Finance $ 55 $ 52 $ 49 Total revenues $ 13,683 $ 12,869 $ 12,382 Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Bell Textron Industrial Textron eAviation Finance Total 2023 Customer type: Commercial $ 5,155 $ 1,407 $ 282 $ 3,819 $ 32 $ 55 $ 10,750 U.S. Government 218 1,740 953 22 — — 2,933 Total revenues $ 5,373 $ 3,147 $ 1,235 $ 3,841 $ 32 $ 55 $ 13,683 Geographic location: United States $ 3,873 $ 2,228 $ 1,103 $ 2,067 $ 17 $ 17 $ 9,305 Europe 432 149 54 766 11 2 1,414 Other international 1,068 770 78 1,008 4 36 2,964 Total revenues $ 5,373 $ 3,147 $ 1,235 $ 3,841 $ 32 $ 55 $ 13,683 2022 Customer type: Commercial $ 4,959 $ 1,284 $ 274 $ 3,450 $ 16 $ 52 $ 10,035 U.S. Government 114 1,807 898 15 — — 2,834 Total revenues $ 5,073 $ 3,091 $ 1,172 $ 3,465 $ 16 $ 52 $ 12,869 Geographic location: United States $ 3,520 $ 2,242 $ 1,054 $ 1,862 $ 7 $ 17 $ 8,702 Europe 579 139 42 699 6 3 1,468 Other international 974 710 76 904 3 32 2,699 Total revenues $ 5,073 $ 3,091 $ 1,172 $ 3,465 $ 16 $ 52 $ 12,869 2021 Customer type: Commercial $ 4,435 $ 1,328 $ 257 $ 3,113 $ — $ 49 $ 9,182 U.S. Government 131 2,036 1,016 17 — — 3,200 Total revenues $ 4,566 $ 3,364 $ 1,273 $ 3,130 $ — $ 49 $ 12,382 Geographic location: United States $ 3,424 $ 2,425 $ 1,126 $ 1,570 $ — $ 27 $ 8,572 Europe 396 171 44 757 — 1 1,369 Other international 746 768 103 803 — 21 2,441 Total revenues $ 4,566 $ 3,364 $ 1,273 $ 3,130 $ — $ 49 $ 12,382 Remaining Performance Obligations Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our contracts that we expect to recognize as revenue in future periods when we perform under the contracts. These remaining obligations exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At December 30, 2023, we had $13.9 billion in remaining performance obligations of which we expect to recognize revenues of approximately 86% through 2025, an additional 12% through 2027, and the balance thereafter. Contract Assets and Liabilities |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Under our 2015 Long-Term Incentive Plan (Plan), which replaced our 2007 Long-Term Incentive Plan in April 2015, 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. A maximum of 17 million shares is authorized for issuance for all purposes under the Plan plus any shares that become available upon cancellation, forfeiture or expiration of awards granted under the 2007 Long-Term Incentive Plan. No more than 17 million shares may be awarded pursuant to incentive stock options, and no more than 4.25 million shares may be issued pursuant to awards of restricted stock, restricted stock units, performance stock, performance share units or other awards that are payable in shares. For 2023, 2022 and 2021, the awards granted under this Plan primarily included stock options, restricted stock units and performance share units. Share-based compensation costs are reflected primarily in selling and administrative expense. Compensation expense included in net income for our share-based compensation plans is as follows: (In millions) 2023 2022 2021 Compensation expense $ 94 $ 66 $ 138 Income tax benefit (23) (16) (33) Total compensation expense included in net income $ 71 $ 50 $ 105 Compensation cost for awards subject only to service conditions that vest ratably is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award utilizing an estimated forfeiture rate. Our awards include continued vesting provisions for retirement eligible employees. Upon reaching retirement eligibility, the service requirement for these individuals is considered to have been satisfied and compensation expense for future awards is recognized on the date of the grant. As of December 30, 2023, we had not recognized $25 million of total compensation costs associated with unvested awards subject only to service conditions. We expect to recognize compensation expense for these awards over a weighted-average period of approximately two years. We typically grant stock appreciation rights to selected non-U.S. employees. At December 30, 2023, outstanding stock appreciation rights totaled 491,331 with a weighted-average exercise price of $56.09 and a weighted-average remaining contractual life of 5.9 years; these units had an intrinsic value of $12 million, compared to $11 million at December 31, 2022. Stock Options Stock option compensation expense was $23 million, $22 million and $21 million in 2023, 2022 and 2021, respectively. 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: 2023 2022 2021 Fair value of options at grant date $ 23.83 $ 19.95 $ 15.05 Dividend yield 0.1% 0.1% 0.2% Expected volatility 29.4% 29.2% 33.6% Risk-free interest rate 4.2% 1.9% 0.7% Expected term (in years) 4.8 4.8 4.7 The stock option activity during 2023 is provided below: (Options in thousands) Number of Weighted- Outstanding at beginning of year 8,310 $ 50.25 Granted 1,026 73.19 Exercised (1,659) (45.14) Forfeited or expired (162) (62.11) Outstanding at end of year 7,515 $ 54.25 Exercisable at end of year 5,347 $ 48.85 At December 30, 2023, our outstanding options had an aggregate intrinsic value of $197 million and a weighted-average remaining contractual life of 5.5 years. Our exercisable options had an aggregate intrinsic value of $169 million and a weighted-average remaining contractual life of 4.5 years at December 30, 2023. The total intrinsic value of options exercised during 2023, 2022 and 2021 was $50 million, $32 million and $63 million, respectively. Restricted Stock Units We issue restricted stock units that include the right to receive dividend equivalents and are settled in either cash or stock. Beginning in 2020, new grants of restricted stock units 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 2023 activity for restricted stock units is provided below: Units Payable in Stock Units Payable in Cash (Shares/Units in thousands) Number of Weighted- Number of Weighted- Outstanding at beginning of year, nonvested 525 $ 52.99 1,086 $ 53.26 Granted 125 71.86 247 73.21 Vested (235) (47.73) (467) (45.95) Forfeited (19) (60.09) (56) (60.24) Outstanding at end of year, nonvested 396 $ 61.73 810 $ 63.06 The fair value of the restricted stock unit awards that vested and/or amounts paid under these awards is as follows: (In millions) 2023 2022 2021 Fair value of awards vested $ 45 $ 25 $ 20 Cash paid 34 17 13 Performance Share Units The fair value of share-based compensation awards accounted for as liabilities includes performance share units, which are generally paid in cash in the first quarter of the year following vesting. Performance share units are subject to performance goals set at the beginning of the three-year performance period and vest at the end of the performance period. These units are remeasured to fair value at the end of each reporting period based on the trading price of our common stock and the number of units, as adjusted based on assumptions with respect to performance on the relevant metrics. The 2023 activity for our performance share units is as follows: (Units in thousands) Number of Weighted- Outstanding at beginning of year, nonvested 427 $ 59.51 Granted 209 73.19 Vested (242) (51.56) Forfeited (28) (63.72) Outstanding at end of year, nonvested 366 $ 72.23 The fair value of the performance share units that vested and/or amounts paid under these awards is as follows: (In millions) 2023 2022 2021 Fair value of awards vested $ 19 $ 19 $ 18 Cash paid 27 15 6 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 30, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans We provide defined-contribution benefits to eligible employees, as well as some remaining defined-benefit pension and other post-retirement benefits covering certain of our U.S. and Non-U.S. employees. Substantially all of our employees are covered by defined contribution plans. The largest of these plans, the Textron Savings Plan, is a qualified 401(k) plan subject to the Employee Retirement Income Security Act of 1974 (ERISA). Our defined contribution plans cost $154 million, $140 million and $131 million in 2023, 2022 and 2021, respectively. We also provide postretirement benefits other than pensions for certain retired employees in the U.S. that include healthcare, dental care, Medicare Part B reimbursement and life insurance. A portion of our U.S. employees participate in the legacy defined benefit pension plans which were closed to new participants beginning on January 1, 2010. These legacy plans include the Textron Master Retirement Plan (TMRP), the Bell Helicopter Textron Master Retirement Plan, and the CWC Castings Division of Textron Inc. Hourly-Rated Employees' Pension Plan, which are each subject to the provisions of ERISA and provide a minimum guaranteed benefit to participants. The primary factors affecting the benefits earned by participants in our pension plans are employees’ years of service and compensation levels. Employees hired subsequent to the closure of these plans receive an additional annual cash contribution to their Textron Savings Plan account based on their eligible compensation of up to 4%. Periodic Benefit Cost (Income) The components of net periodic benefit cost (income) and other amounts recognized in other comprehensive income (loss) (OCI) are as follows: Pension Benefits Postretirement Benefits (In millions) 2023 2022 2021 2023 2022 2021 Net periodic benefit cost (income) Service cost $ 67 $ 108 $ 116 $ 2 $ 2 $ 3 Interest cost 364 272 252 8 6 5 Expected return on plan assets (610) (609) (573) — — — Amortization of prior service cost (credit) 11 13 12 (3) (5) (5) Amortization of net actuarial loss (gain) 1 87 152 (8) (4) (2) Net periodic benefit cost (income)* $ (167) $ (129) $ (41) $ (1) $ (1) $ 1 Other changes in plan assets and benefit obligations recognized in OCI Current year actuarial loss (gain) $ 109 $ (246) $ (1,135) $ (7) $ (39) $ (13) Current year prior service cost 7 4 20 — — — Amortization of net actuarial gain (loss) (1) (87) (152) 8 4 2 Amortization of prior service credit (cost) (11) (13) (12) 3 5 5 Total recognized in OCI, before taxes $ 104 $ (342) $ (1,279) $ 4 $ (30) $ (6) Total recognized in net periodic benefit cost (income) and OCI $ (63) $ (471) $ (1,320) $ 3 $ (31) $ (5) * Excludes the cost associated with the defined contribution component that is included in certain of our U.S.-based defined benefit pension plans, of $11 million in 2023, 2022, and 2021. Obligations and Funded Status All of our plans are measured as of our fiscal year-end. The changes in the projected benefit obligation and in the fair value of plan assets, along with our funded status, are as follows: Pension Benefits Postretirement Benefits (In millions) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 6,848 $ 9,339 $ 150 $ 202 Service cost 67 108 2 2 Interest cost 364 272 8 6 Plan participants’ contributions — — 3 4 Actuarial losses (gains) 330 (2,373) (7) (40) Benefits paid (444) (448) (20) (24) Plan amendment 7 1 — — Foreign exchange rate changes and other 33 (51) — — Projected benefit obligation at end of year $ 7,205 $ 6,848 $ 136 $ 150 Change in fair value of plan assets Fair value of plan assets at beginning of year $ 7,943 $ 9,947 Actual return on plan assets 832 (1,520) Employer contributions 36 37 Benefits paid (444) (448) Foreign exchange rate changes and other 46 (73) Fair value of plan assets at end of year $ 8,413 $ 7,943 Funded status at end of year $ 1,208 $ 1,095 $ (136) $ (150) Actuarial losses (gains) for 2023 and 2022 were largely the result of changes in the discount rate utilized. Amounts recognized in our balance sheets are as follows: Pension Benefits Postretirement Benefits (In millions) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Non-current assets $ 1,569 $ 1,440 $ — $ — Current liabilities (28) (28) (17) (19) Non-current liabilities (333) (317) (119) (131) Recognized in Accumulated other comprehensive loss, pre-tax: Net loss (gain) 730 623 (69) (70) Prior service cost (credit) 42 46 (3) (6) The accumulated benefit obligation for all defined benefit pension plans was $6.9 billion and $6.6 billion at December 30, 2023 and December 31, 2022, respectively, which included $336 million and $326 million, respectively, in accumulated benefit obligations for unfunded plans where funding is not permitted or in foreign environments where funding is not feasible. Pension plans with accumulated benefit obligation exceeding the fair value of plan assets are as follows: (In millions) December 30, 2023 December 31, 2022 Accumulated benefit obligation $ 336 $ 326 Fair value of plan assets — — Pension plans with projected benefit obligation exceeding the fair value of plan assets are as follows: (In millions) December 30, 2023 December 31, 2022 Projected benefit obligation $ 652 $ 597 Fair value of plan assets 292 252 Assumptions The weighted-average assumptions we use for our pension and postretirement plans are as follows: Pension Benefits Postretirement Benefits 2023 2022 2021 2023 2022 2021 Net periodic benefit cost Discount rate 5.51% 2.99% 2.62% 5.70% 2.80% 2.35% Expected long-term rate of return on assets 7.14% 7.10% 7.10% Rate of compensation increase 3.97% 3.95% 3.49% Benefit obligations at year-end Discount rate 5.19% 5.51% 2.99% 5.40% 5.70% 2.80% Rate of compensation increase 3.97% 3.97% 3.95% Interest crediting rate for cash balance plans 5.25% 5.25% 5.25% Our assumed healthcare cost trend rate for both the medical and prescription drug cost was 6.5% in both 2023 and 2022. We expect this rate to gradually decline to 4.75% by 2030 where we assume it will remain. Pension Assets The expected long-term rate of return on plan assets is determined based on a variety of considerations, including the established asset allocation targets and expectations for those asset classes, historical returns of the plans’ assets and other market considerations. We invest our pension assets with the objective of achieving a total rate of return over the long term that will be sufficient to fund future pension obligations and to minimize future pension contributions. We are willing to tolerate a commensurate level of risk to achieve this objective based on the funded status of the plans and the long-term nature of our pension liability. Risk is controlled by maintaining a portfolio of assets that is diversified across a variety of asset classes, investment styles and investment managers. Where possible, investment managers are prohibited from owning our securities in the portfolios that they manage on our behalf. For U.S. plan assets, which represent the majority of our plan assets, asset allocation target ranges are established consistent with our investment objectives, and the assets are rebalanced periodically. For Non-U.S. plan assets, allocations are based on expected cash flow needs and assessments of the local practices and markets. Our target allocation ranges are as follows: U.S. Plan Assets Domestic equity securities 17 % to 33% International equity securities 6 % to 17% Global equities 5 % to 17% Debt securities 27 % to 38% Real estate 7 % to 13% Private investment partnerships 7 % to 13% Non-U.S. Plan Assets Equity securities 55 % to 75% Debt securities 25 % to 45% Real estate 0% to 13% The fair value of our pension plan assets by major category and valuation method is as follows: December 30, 2023 December 31, 2022 (In millions) Level 1 Level 2 Level 3 Not Level 1 Level 2 Level 3 Not Cash and equivalents $ 231 $ 1 $ — $ — $ 378 $ 3 $ — $ — Equity securities: Domestic 2,754 — — 299 2,304 — — 225 International 1,061 — — 281 1,171 — — 230 Mutual funds 117 — — — 150 — — — Debt securities: National, state and local governments 679 142 — 88 332 239 — 27 Corporate debt 164 610 — 90 58 663 — 129 Private investment partnerships — — — 1,000 — — — 1,070 Real estate — — 508 388 — — 569 395 Total $ 5,006 $ 753 $ 508 $ 2,146 $ 4,393 $ 905 $ 569 $ 2,076 Cash and equivalents, equity securities and debt securities include commingled funds, which represent investments in funds offered to institutional investors that are similar to mutual funds in that they provide diversification by holding various equity and debt securities. The fair value of the commingled funds is determined and published by the fund's investment managers and is the basis for current transactions, therefore, they are categorized as Level 1 in the table above. Debt securities are valued based on same day actual trading prices, if available. If such prices are not available, we use a matrix pricing model with historical prices, trends and other factors. Private investment partnerships represents interests in funds which invest in equity, debt and other financial assets. These funds are generally not publicly traded so the interests therein are valued using income and market methods that include cash flow projections and market multiples for various comparable investments. Real estate includes owned properties and limited partnership interests in real estate partnerships. Owned properties are valued using certified appraisals at least every three years that are updated at least annually by the real estate investment manager based on current market trends and other available information. These appraisals generally use the standard methods for valuing real estate, including forecasting income and identifying current transactions for comparable real estate to arrive at a fair value. Limited partnership interests in real estate partnerships are valued similarly to private investment partnerships, with the general partner using standard real estate valuation methods to value the real estate properties and securities held within their portfolios. Neither private investment nor real estate partnerships are subject to leveling within the fair value hierarchy. The table below presents a reconciliation of the fair value measurements for owned real estate properties, which use significant unobservable inputs (Level 3): (In millions) 2023 2022 Balance at beginning of year $ 569 $ 599 Unrealized losses, net (60) (10) Realized gains, net 10 11 Purchases, sales and settlements, net (11) (31) Balance at end of year $ 508 $ 569 Estimated Future Cash Flow Impact Defined benefits under salaried plans are based on salary and years of service. Hourly plans generally provide benefits based on stated amounts for each year of service. Our funding policy is consistent with applicable laws and regulations. In 2024, we expect to contribute approximately $50 million to our pension plans. Benefit payments provided below reflect expected future employee service, as appropriate, and are expected to be paid, net of estimated participant contributions. These payments are based on the same assumptions used to measure our benefit obligation at the end of 2023. While pension benefit payments primarily will be paid out of qualified pension trusts, we will pay postretirement benefits other than pensions out of our general corporate assets. Benefit payments that we expect to pay on an undiscounted basis are as follows: (In millions) 2024 2025 2026 2027 2028 2029-2033 Pension benefits $ 455 $ 463 $ 471 $ 480 $ 487 $ 2,501 Postretirement benefits other than pensions 17 17 16 15 14 56 |
Special Charges
Special Charges | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Special Charges | Special Charges Special charges recorded in 2023 and 2021 by segment and type of cost are as follows: (In millions) Severance Contract Asset Total Restructuring Charges 2023 Industrial $ 21 $ — $ 87 $ 108 Bell 13 — — 13 Textron Systems 5 — — 5 Total special charges $ 39 $ — $ 87 $ 126 2021 Industrial $ 4 $ 9 $ 12 $ 25 Total special charges $ 4 $ 9 $ 12 $ 25 2023 Special Charges In the fourth quarter of 2023, our Board of Directors approved a restructuring plan developed by management in connection with the Company’s annual operating plan process. The plan will reduce operating expenses through headcount reductions at the Industrial, Bell and Textron Systems segments. In the Industrial segment, the plan included headcount reductions at Textron Specialized Vehicles, resulting from lower demand for certain of our powersports products which we anticipate will continue, and at Kautex, due to reduced demand for fuel systems from European automotive manufacturers. In both the Bell and Textron Systems segments, the plan included targeted headcount reductions to improve the segments’ cost structures and realign their workforces as these segments transition from legacy production contracts to more development, engineering focused contracts. We recorded severance cost of $39 million related to this plan and expect a reduction of approximately 725 positions, representing 2% of our global workforce. We anticipate that this plan will be substantially completed in the first half of 2024. As a result of lower demand described above, we recognized asset impairment charges of $75 million at Textron Specialized Vehicles related to both fixed and intangible assets and $12 million of fixed asset impairment charges at Kautex. The fair value of these assets was determined utilizing a discounted cash flow methodology that reflected the impact of lower anticipated demand for the powersports and fuel systems products on future revenues and profit. 2021 Special Charges In 2020, we initiated a restructuring plan to reduce operating expenses through headcount reductions, facility consolidations and other actions in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic. Upon completion of this plan, we recorded total charges of $133 million, of which $25 million was incurred in 2021 at the Industrial segment. Restructuring Reserve Our restructuring reserve activity is summarized below: (In millions) Severance Contract Total Balance at January 1, 2022 $ 19 $ 9 $ 28 Cash paid (13) (2) (15) Foreign currency translation (1) — (1) Balance at December 31, 2022 $ 5 $ 7 $ 12 Provision for 2023 restructuring plan 39 — 39 Cash paid (3) (2) (5) Foreign currency translation 1 — 1 Balance at December 30, 2023 $ 42 $ 5 $ 47 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We conduct business globally and, as a result, file numerous consolidated and separate income tax returns within and outside the U.S. For all of our U.S. subsidiaries, we file a consolidated federal income tax return. Income from continuing operations before income taxes is as follows: (In millions) 2023 2022 2021 U.S. $ 905 $ 810 $ 699 Non-U.S. 182 206 174 Income from continuing operations before income taxes $ 1,087 $ 1,016 $ 873 Income tax expense is summarized as follows: (In millions) 2023 2022 2021 Current expense: Federal $ 267 $ 272 $ 41 State 18 33 15 Non-U.S. 72 69 47 357 374 103 Deferred expense (benefit): Federal (181) (182) 35 State 1 (29) (10) Non-U.S. (12) (9) (2) (192) (220) 23 Income tax expense $ 165 $ 154 $ 126 The following table reconciles the federal statutory income tax rate to our effective income tax rate: 2023 2022 2021 U.S. Federal statutory income tax rate 21.0% 21.0% 21.0% Increase (decrease) resulting from: Research and development tax credits (4.7) (5.0) (7.0) Foreign-derived intangible income deduction (a) (3.2) (2.5) — Non-U.S. tax rate differential and foreign tax credits 1.5 1.8 1.3 State income taxes (net of federal impact) 1.4 0.3 0.5 Other, net (0.8) (0.4) (1.4) Effective income tax rate 15.2% 15.2% 14.4% (a) In 2023 and 2022, the foreign-derived intangible income deduction is primarily due to the impact of capitalizing research and development expenditures for tax-purposes effective on January 1, 2022 as part of the Tax Cuts and Jobs Act of 2017. Unrecognized Tax Benefits Our unrecognized tax benefits represent tax positions for which reserves have been established, with unrecognized state tax benefits reflected net of applicable federal tax benefits. At the end of 2023, 2022 and 2021, if our unrecognized tax benefits were recognized in future periods, they would favorably impact our effective tax rate. A reconciliation of these unrecognized tax benefits is as follows: (In millions) 2023 2022 2021 Balance at beginning of year $ 231 $ 207 $ 183 Additions for tax positions related to current year 16 24 21 Additions for tax positions of prior years 3 — 10 Reductions for tax positions of prior years (28) — (4) Reductions for settlements and expiration of statute of limitations — — (3) Balance at end of year $ 222 $ 231 $ 207 In the normal course of business, we are subject to examination by tax authorities throughout the world. We are generally no longer subject to U.S. federal tax examinations for years before 2014, except for additional 2012 and 2013 research and development tax credits generated through amended returns filed in 2019. We are generally no longer subject to state and local income tax examinations for years before 2018 and non-U.S. income tax examinations for years before 2011. Deferred Taxes The significant components of our net deferred tax assets/(liabilities) are provided below: (In millions) December 30, December 31, Capitalized research and development expenditures $ 520 $ 319 Accrued liabilities (a) 228 209 U.S. operating loss and tax credit carryforwards (b) 216 257 Obligation for pension and postretirement benefits 123 117 Deferred compensation 103 108 Operating lease liabilities 102 102 Non-U.S. operating loss and tax credit carryforwards (c) 73 53 Prepaid pension benefits (387) (348) Property, plant and equipment, principally depreciation (211) (222) Amortization of goodwill and other intangibles (185) (194) Operating lease right-of-use assets (99) (99) Valuation allowance on deferred tax assets (82) (99) Other leasing transactions, principally leveraged leases (47) (53) Other, net (5) (22) Deferred taxes, net $ 349 $ 128 (a) Accrued liabilities include warranty reserves, self-insured liabilities and interest. (b) At December 30, 2023, U.S. operating loss and tax credit carryforward benefits of $179 million expire through 2043 if not utilized and $37 million may be carried forward indefinitely. (c) At December 30, 2023, non-U.S. operating loss and tax credit carryforward benefits of $68 million may be carried forward indefinitely. We believe earnings during the period when the temporary differences become deductible will be sufficient to realize the related future income tax benefits. For those jurisdictions where the expiration date of tax carryforwards or the projected operating results indicate that realization is not more than likely, a valuation allowance is provided. The following table presents the breakdown of our deferred taxes: (In millions) December 30, December 31, Manufacturing group: Deferred tax assets, net of valuation allowance $ 443 $ 223 Deferred tax liabilities (56) (52) Finance group – Deferred tax liabilities (38) (43) Net deferred tax asset $ 349 $ 128 Non-U.S. and U.S. state income taxes have not been provided for on basis differences in certain investments, primarily as a result of unremitted earnings in foreign subsidiaries that are indefinitely reinvested, totaling $1.6 billion at both December 30, 2023 and December 31, 2022. Should these earnings be distributed in the future in the form of dividends or otherwise, we would be subject to withholding and local taxes to various non-U.S. jurisdictions and U.S. states. Determination of the deferred tax liability associated with indefinitely reinvested earnings is not practicable due to multiple factors, including the complexity of non-U.S. tax laws and tax treaty interpretations, exchange rate fluctuations, and the uncertainty of available credits or exemptions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2023 | |
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. In the ordinary course of business, we enter into standby letter of credit agreements and surety bonds with financial institutions to meet various performance and other obligations. These outstanding letter of credit arrangements and surety bonds aggregated to approximately $338 million and $285 million at December 30, 2023 and December 31, 2022, respectively. Environmental Remediation As with other industrial enterprises engaged in similar businesses, we are involved in a number of remedial actions under various federal and state laws and regulations relating to the environment that impose liability on companies to clean up, or contribute to the cost of cleaning up, sites on which hazardous wastes or materials were disposed or released. Our accrued environmental liabilities relate to installation of remediation systems, disposal costs, U.S. Environmental Protection Agency oversight costs, legal fees, and operating and maintenance costs for both currently and formerly owned or operated facilities. Circumstances that can affect the reliability and precision of the accruals include the identification of additional sites, environmental regulations, level of cleanup required, technologies available, number and financial condition of other contributors to remediation and the time period over which remediation may occur. We believe that any changes to the accruals that may result from these factors and uncertainties will not have a material effect on our financial position or results of operations. Based upon information currently available, we estimate that our potential environmental liabilities are within the range of $40 million to $145 million. At December 30, 2023, environmental reserves of $74 million have been established to address these specific estimated liabilities. We estimate that we will likely pay our accrued environmental remediation liabilities over the next ten years and have classified $16 million as current liabilities. In 2023, 2022 and 2021, to evaluate and remediate contaminated sites, we incurred expense, net of recoveries received, of $8 million, $9 million and $6 million, respectively. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Our cash payments and receipts are as follows: (In millions) 2023 2022 2021 Interest paid: Manufacturing group $ 110 $ 110 $ 128 Finance group 12 13 17 Net income taxes paid: Manufacturing group 338 332 72 Finance group 14 24 21 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 30, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts (In millions) 2023 2022 2021 Allowance for credit losses on accounts receivable Balance at beginning of year $ 24 $ 24 $ 36 Provision (reversal) for credit losses 7 2 (1) Deductions from reserves* (5) (2) (11) Balance at end of year $ 26 $ 24 $ 24 Allowance for credit losses on finance receivables Balance at beginning of year $ 24 $ 25 $ 35 Reversal for credit losses (18) (4) (9) Charge-offs — — (3) Recoveries 18 3 2 Balance at end of year $ 24 $ 24 $ 25 Inventory FIFO reserves Balance at beginning of year $ 350 $ 370 $ 357 Charged to costs and expenses 63 21 40 Deductions from reserves* (23) (41) (27) Balance at end of year $ 390 $ 350 $ 370 * Deductions primarily include amounts written off on uncollectible accounts (less recoveries), inventory disposals, changes to prior year estimates, business dispositions and currency translation adjustments. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Pay vs Performance Disclosure | |||
Net income | $ 921 | $ 861 | $ 746 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 30, 2023 | |
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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Financial Statement Presentation | Principles of Consolidation and Financial Statement Presentation Our Consolidated Financial Statements include the accounts of Textron Inc. and its majority-owned subsidiaries. Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron Inc. 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 (TFC) 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. Our Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of Cash Flows, cash received from customers is reflected as operating activities when received from third parties. However, in the cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in the Finance group’s statement of cash flows. Meanwhile, in the Manufacturing group’s statement of cash flows, the cash received from the Finance group on the customer’s behalf is recorded within operating cash flows as a cash inflow. Although cash is transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or eliminated in consolidation. |
Collaborative Arrangements | Collaborative Arrangements Our Bell segment has a strategic alliance agreement with a third-party company to provide engineering, development and test services related to the V-22 aircraft, as well as to produce the V-22 aircraft, under a number of separate contracts with the U.S. Government (V-22 Contracts). The alliance created by this agreement is not a legal entity and has no employees, no assets and no true operations. This agreement creates contractual rights and does not represent an entity in which we have an equity interest. We account for this alliance as a collaborative arrangement with Bell and the third-party company reporting costs incurred and revenues generated from transactions with the U.S. Government in each company’s respective income statement. Neither Bell nor the third-party company is considered to be the principal participant for the transactions recorded under this agreement. Profits on cost-plus contracts are allocated between Bell and the third-party company on a 50%-50% basis. Negotiated profits on fixed-price contracts are also allocated 50%-50%; however, Bell and the third-party company are each responsible for their own cost overruns and are entitled to retain any cost underruns. Based on the contractual arrangement established under the alliance, Bell accounts for its rights and obligations under the specific requirements of the V-22 Contracts allocated to Bell under the work breakdown structure. We account for all of our rights and obligations, including warranty, product and any contingent liabilities, under the specific requirements of the V-22 Contracts allocated to us under the agreement. Revenues and cost of sales reflect our performance under the V-22 Contracts with revenues recognized using the cost-to-cost method. We include all assets used in performance of the V-22 Contracts that we own and all liabilities arising from our obligations under the V-22 Contracts in our Consolidated Balance Sheets. |
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. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the product or service promised under the contract is transferred to the customer either at a point in time (e.g., upon delivery) or over time (e.g., as we perform under the contract). We account for a contract when it has approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has commercial substance and collectability of consideration is probable. Contracts are reviewed to determine whether there is one or multiple performance obligations. A performance obligation is a promise to transfer a distinct product or service to a customer and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected consideration, or the transaction price, is allocated to each performance obligation identified in the contract based on the relative standalone selling price of each performance obligation. Revenue is then recognized for the transaction price allocated to the performance obligation when control of the promised product or service underlying the performance obligation is transferred. Contract consideration is not adjusted for the effects of a significant financing component when, at contract inception, the period between when control transfers and when the customer will pay for that good or service is one year or less. Revenue is classified as product or service revenue based on the predominant attributes of each performance obligation. Commercial Contracts The majority of our contracts with commercial customers have a single performance obligation as there is only one product or service promised or the promise to transfer the product or service is not distinct or separately identifiable from other promises in the contract. Revenue is primarily recognized at a point in time, which is generally when the customer obtains control of the asset upon delivery and customer acceptance. Contract modifications that provide for additional distinct products or services at the standalone selling price are treated as separate contracts. For commercial aircraft, we contract with our customers to sell fully outfitted fixed-wing aircraft, which may include configuration options. The aircraft typically represents a single performance obligation and revenue is recognized upon customer acceptance and delivery. For commercial helicopters, our customers generally contract with us for fully functional basic configuration aircraft and control is transferred upon customer acceptance and delivery. At times, customers may separately contract with us for the installation of accessories and customization to the basic aircraft. If these contracts are entered into at or near the same time of the basic aircraft contract, we assess whether the contracts meet the criteria to be combined. For contracts that are combined, the basic aircraft and the accessories and customization are typically considered to be distinct, and therefore, are separate performance obligations. For these contracts, revenue is recognized on the basic aircraft upon customer acceptance and transfer of title and risk of loss, and on the accessories and customization, upon delivery and customer acceptance. We utilize observable prices to determine the standalone selling prices when allocating the transaction price to these performance obligations. The transaction price for our commercial contracts reflects our estimate of returns, rebates and discounts, which are based on historical, current and forecasted information. Amounts billed to customers for shipping and handling are included in the transaction price and generally are not treated as separate performance obligations as these costs fulfill a promise to transfer the product to the customer. Taxes collected from customers and remitted to government authorities are recorded on a net basis. We primarily provide standard warranty programs for products in our commercial businesses for periods that typically range from one year to five years. These assurance-type programs typically cannot be purchased separately and do not meet the criteria to be considered a performance obligation. U.S. Government Contracts Our contracts with the U.S. Government generally include the design, development, manufacture or modification of aerospace and defense products, as well as related services. These contracts, which also include those under the U.S. Government-sponsored foreign military sales program, accounted for approximately 21% of total revenues in 2023. The customer typically contracts with us to provide a significant service of integrating a complex set of tasks and components into a single project or capability, which often results in the delivery of multiple units. Accordingly, the entire contract is accounted for as one performance obligation. In certain circumstances, a contract may include both production and support services, such as logistics and parts plans, which are considered to be distinct in the context of the contract and represent separate performance obligations. When a contract is separated into more than one performance obligation, we generally utilize the expected cost plus a margin approach to determine the standalone selling prices when allocating the transaction price. Our contracts are frequently modified for changes in contract specifications and requirements. Most of our contract modifications with the U.S. Government are for products and services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as part of that existing contract. The effect of these contract modifications on our estimates is recognized using the cumulative catch-up method of accounting. Contracts with the U.S. Government generally contain clauses that provide lien rights to work-in-process along with clauses that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work-in-process. Due to the continuous transfer of control to the U.S. Government, we recognize revenue over the time that we perform under the contract. Selecting the method to measure progress towards completion requires judgment and is based on the nature of the products or service to be provided. We generally use the cost-to-cost method to measure progress for our contracts because it best depicts the transfer of control to the customer that occurs as we incur costs on our contracts. Under this measure, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the estimated costs at completion of the performance obligation, and revenue is recorded proportionally as costs are incurred. The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees or other provisions that can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and can be based upon customer discretion. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance, historical performance, and all other information that is reasonably available to us. Total contract cost is estimated utilizing current contract specifications and expected engineering requirements. Contract costs typically are incurred over a period of several years, and the estimation of these costs requires substantial judgment. Our cost estimation process is based on the professional knowledge and experience of engineers and program managers along with finance professionals. We review and update our projections of costs quarterly or more frequently when circumstances significantly change. Approximately 73% of our 2023 revenues with the U.S. Government were under fixed-price and fixed-price incentive contracts. Under the typical payment terms of these contracts, the customer pays us either performance-based or progress payments. Performance-based payments represent interim payments of up to 90% of the contract price based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments of up to 80% of costs incurred as the work progresses. Because the customer retains a small portion of the contract price until completion of the contract, these contracts generally result in revenue recognized in excess of billings, which we present as contract assets in the Consolidated Balance Sheets. Amounts billed and due from our customers are classified in Accounts receivable, net. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer. For cost-type contracts, we are generally paid for our actual costs incurred within a short period of time. Finance Revenues Finance revenues primarily include interest on finance receivables, finance lease earnings and portfolio gains/losses. Portfolio gains/losses include impairment charges related to repossessed assets and properties and gains/losses on the sale or early termination of finance assets. We recognize interest using the interest method, which provides a constant rate of return over the terms of the receivables. Accrual of interest income is suspended if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically suspend the accrual of interest income for accounts that are contractually delinquent by more than three months unless collection is not doubtful. Cash payments on nonaccrual accounts, including finance charges, generally are applied to reduce the net investment balance. Once we conclude that the collection of all principal and interest is no longer doubtful, we resume the accrual of interest and recognize previously suspended interest income at the time either a) the loan becomes contractually current through payment according to the original terms of the loan, or b) if the loan has been modified, following a period of performance under the terms of the modification. |
Contract Assets and Liabilities | Contract Assets and Liabilities Contract assets arise from contracts when revenue is recognized over time and the amount of revenue recognized exceeds the amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on events other than the passage of time and are included in Other current assets in the Consolidated Balance Sheets. Contract liabilities, which are primarily included in Other current liabilities, include deposits, largely from our commercial aviation customers, and billings in excess of revenue recognized. The incremental costs of obtaining a contract with a customer that is expected to be recovered is expensed as incurred when the period to be benefitted is one year or less. |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable, net includes amounts billed to customers where the right to payment is unconditional. We maintain an allowance for credit losses for our commercial accounts receivable to provide for the estimated amount that will not be collected, even when the risk of loss is remote. The allowance is measured on a collective pool basis when similar risk characteristics exist and is established as a percentage of accounts receivable. We have identified pools with similar risk characteristics, based on customer and industry type and geographic location. The percentage is based on all available and relevant information including age of outstanding receivables and collateral value, if any, historical payment experience and loss history, current economic conditions, and, when reasonable and supportable factors exist, management’s expectation of future economic conditions. For amounts due from the U.S. Government, we have not established an allowance for credit losses as we have zero loss expectation based on a long history of no credit losses and the explicit guarantee of a sovereign entity. |
Cash and Equivalents | Cash and Equivalents Cash and equivalents consist of cash and short-term, highly liquid investments with original maturities of three months or less. |
Inventories | Inventories Inventories are stated at the lower of cost or estimated realizable value. The majority of our inventories are valued using the last-in, first-out (LIFO) method, while the remaining inventories are generally valued using the first-in, first-out (FIFO) method. |
Property, Plant and Equipment | Property, Plant and Equipment |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the consideration paid for the acquisition of a business over the fair values assigned to intangible and other net assets of the acquired business. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to an annual impairment test. We evaluate the recoverability of these assets in the fourth quarter of each year or more frequently if events or changes in circumstances, such as declines in sales, earnings or cash flows, or material adverse changes in the business climate, indicate a potential impairment. For our goodwill impairment test, we calculate the fair value of each reporting unit using discounted cash flows. A reporting unit represents the operating segment unless discrete financial information is prepared and reviewed by segment management for businesses one level below that operating segment, in which case such component is the reporting unit. In certain instances, we have aggregated components of an operating segment into a single reporting unit based on similar economic characteristics. The discounted cash flows incorporate assumptions for revenue growth rates, operating margins and discount rates that represent our best estimates of current and forecasted market conditions, cost structure, anticipated net cost reductions, and the implied rate of return that we believe a market participant would require for an investment in a business having similar risks and characteristics to the reporting unit being assessed. The fair value of our indefinite-lived intangible assets is primarily determined using the relief of royalty method based on forecasted revenues and royalty rates. If the estimated fair value of the reporting unit or indefinite-lived intangible asset exceeds the carrying value, there is no impairment. Otherwise, an impairment loss is recognized for the amount by which the carrying value exceeds the estimated fair value. Acquired intangible assets with finite lives are subject to amortization. These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Amortization of these intangible assets is recognized over their estimated useful lives using a method that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. Approximately 82% of our gross intangible assets are amortized based on the cash flow streams used to value the assets, with the remaining assets amortized using the straight-line method. |
Finance Receivables | Finance Receivables Finance receivables primarily include loans provided to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters. Finance receivables are generally recorded at the amount of outstanding principal less allowance for credit losses. We establish an allowance for credit losses to cover probable but specifically unknown losses existing in the portfolio. This allowance is established as a percentage of finance receivables categorized by pools with similar risk characteristics, such as collateral or customer type and geographic location. The percentage is based on a combination of factors, including historical loss experience, current delinquency and default trends, collateral values, current economic conditions, and, when reasonable and supportable factors exist, management’s expectation of future economic conditions. For those finance receivables that do not have similar risk characteristics, including larger balance accounts specifically identified as impaired, a reserve is established based on comparing the expected future cash flows, discounted at the finance receivable's effective interest rate, or the fair value of the underlying collateral if the finance receivable is collateral dependent, to its carrying amount. The expected future cash flows consider collateral value; financial performance and liquidity of our borrower; existence and financial strength of guarantors; estimated recovery costs, including legal expenses; and costs associated with the repossession and eventual disposal of collateral. When there is a range of potential outcomes, we perform multiple discounted cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence. The evaluation of our portfolio is inherently subjective, as it requires estimates, including the amount and timing of future cash flows expected to be received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual results. While our analysis is specific to each individual account, critical factors included in this analysis include industry valuation guides, age and physical condition of the collateral, payment history, and existence and financial strength of guarantors. Finance receivables are charged off at the earlier of the date the collateral is repossessed or when management no longer deems the receivable collectible. Repossessed assets are recorded at their fair value, less estimated cost to sell. |
Pension and Postretirement Benefit Obligations | Pension and Postretirement Benefit Obligations We maintain various pension and postretirement plans for our employees globally. Our pension plans include significant benefit obligations, which are calculated based on actuarial valuations. Key assumptions used in determining these obligations and related expenses include expected long-term rates of return on plan assets, discount rates and healthcare cost projections. We evaluate and update these assumptions annually in consultation with third-party actuaries and investment advisors. We also make assumptions regarding employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation increases. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities We are exposed to market risk primarily from changes in currency exchange rates and interest rates. We do not hold or issue derivative financial instruments for trading or speculative purposes. To manage the volatility relating to our exposures, we net these exposures on a consolidated basis to take advantage of natural offsets. For the residual portion, we enter into various derivative transactions pursuant to our policies in areas such as counterparty exposure and hedging practices. Credit risk related to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and through periodic settlements of positions. All derivative instruments are reported at fair value in the Consolidated Balance Sheets. Designation to support hedge accounting is performed on a specific exposure basis. For financial instruments qualifying as cash flow hedges, we record changes in the fair value of derivatives (to the extent they are effective as hedges) in other comprehensive income (loss), net of deferred taxes. Changes in fair value of derivatives not qualifying as hedges are recorded in earnings. |
Leases | Leases We identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. For our contracts that contain both lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs or other goods/services), we allocate the consideration in the contract to each component based on its standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the commencement date. For these leases, we capitalize the lesser of a) the present value of the minimum lease payments over the lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the |
Product Liabilities | Product Liabilities We accrue for product liability claims and related defense costs when a loss is probable and reasonably estimable. Our estimates are generally based on the specifics of each claim or incident and our best estimate of the probable loss using historical experience. |
Environmental Liabilities and Asset Retirement Obligations | Environmental Liabilities and Asset Retirement Obligations Liabilities for environmental matters are recorded on a site-by-site basis when it is probable that an obligation has been incurred and the cost can be reasonably estimated. We estimate our accrued environmental liabilities using currently available facts, existing technology, and presently enacted laws and regulations, all of which are subject to a number of factors and uncertainties. Our environmental liabilities are not discounted and do not take into consideration possible future insurance proceeds or significant amounts from claims against other third parties. We have incurred asset retirement obligations primarily related to costs to remove and dispose of underground storage tanks and asbestos materials used in insulation, adhesive fillers and floor tiles. Currently, there is no legal requirement to remove these items and there is no plan to remodel the related facilities or otherwise cause the impacted items to require disposal. Since these asset retirement obligations are not probable, there is no related liability recorded in the Consolidated Balance Sheets. |
Warranty Liabilities | Warranty Liabilities For our assurance-type warranty programs, we estimate the costs that may be incurred and record a liability in the amount of such costs at the time product revenues are recognized. Factors that affect this liability include the number of products sold, historical costs per claim, length of warranty period, contractual recoveries from vendors and historical and anticipated rates of warranty claims, including production and warranty patterns for new models. We assess the adequacy of our recorded warranty liability periodically and adjust the amounts as necessary. Additionally, we may establish a warranty liability related to the issuance of aircraft service bulletins for aircraft no longer covered under the limited warranty programs. |
Research and Development Costs | Research and Development Costs Our customer-funded research and development costs are charged directly to the related contracts, which primarily consist of U.S. Government contracts. In accordance with government regulations, we recover a portion of company-funded research and development costs through overhead rate charges on our U.S. Government contracts. Research and development costs that are not reimbursable under a contract with the U.S. Government or another customer are charged to expense as incurred. Company-funded research and development costs were $570 million, $601 million and $619 million in 2023, 2022 and 2021, respectively, and are included in cost of sales. |
Income Taxes | Income Taxes The provision for income tax expense is calculated on reported income before income taxes based on current tax law and includes, in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Tax laws may require items to be included in the determination of taxable income at different times from when the items are reflected in the financial statements. Deferred tax balances reflect the effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and their tax bases, as well as from net operating losses and tax credit carryforwards, and are stated at enacted tax rates in effect for the year taxes are expected to be paid or recovered. Deferred tax assets represent tax benefits for tax deductions or credits available in future years and require certain estimates and assumptions to determine whether it is more likely than not that all or a portion of the benefit will not be realized. The recoverability of these future tax deductions and credits is determined by assessing the adequacy of future expected taxable income from all sources, including the future reversal of existing taxable temporary differences, taxable income in carryback years, estimated future taxable income and available tax planning strategies. Should a change in facts or circumstances lead to a change in judgment about the ultimate recoverability of a deferred tax asset, we record or adjust the related valuation allowance in the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in income tax expense. We record tax benefits for uncertain tax positions based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, the tax position must meet the more-likely-than-not threshold that the position will be sustained upon examination by the tax authority based on technical merits assuming the tax authority has full knowledge of all relevant information. For positions meeting this recognition threshold, the benefit is measured as the largest amount of benefit that meets the more-likely-than-not threshold to be sustained. We periodically evaluate these tax positions based on the latest available information. For tax positions that do not meet the threshold requirement, we recognize net tax-related interest and penalties for continuing operations in income tax expense. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by segment are as follows: (In millions) Textron Bell Textron Industrial Textron eAviation Total Balance at January 1, 2022 $ 631 $ 35 $ 1,010 $ 473 $ — $ 2,149 Acquisitions 3 2 — — 141 146 Foreign currency translation (1) — — (8) (3) (12) Balance at December 31, 2022 633 37 1,010 465 138 2,283 Foreign currency translation — — — 5 7 12 Balance at December 30, 2023 $ 633 $ 37 $ 1,010 $ 470 $ 145 $ 2,295 |
Schedule of Intangible Assets | Our intangible assets are summarized below: December 30, 2023 December 31, 2022 (Dollars in millions) Weighted-Average Gross Accumulated Net Gross Accumulated Net Trade names and trademarks 18 $ 200 $ (9) $ 191 $ 199 $ (8) $ 191 Patents and technology 15 510 (333) 177 527 (319) 208 Customer relationships and 15 357 (326) 31 392 (330) 62 Total $ 1,067 $ (668) $ 399 $ 1,118 $ (657) $ 461 |
Schedule of Intangible Assets | Our intangible assets are summarized below: December 30, 2023 December 31, 2022 (Dollars in millions) Weighted-Average Gross Accumulated Net Gross Accumulated Net Trade names and trademarks 18 $ 200 $ (9) $ 191 $ 199 $ (8) $ 191 Patents and technology 15 510 (333) 177 527 (319) 208 Customer relationships and 15 357 (326) 31 392 (330) 62 Total $ 1,067 $ (668) $ 399 $ 1,118 $ (657) $ 461 |
Accounts Receivable and Finan_2
Accounts Receivable and Finance Receivables (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts receivable is composed of the following: (In millions) December 30, December 31, Commercial $ 831 $ 755 U.S. Government contracts 63 124 894 879 Allowance for credit losses (26) (24) Total $ 868 $ 855 |
Finance Receivables | Finance receivables are presented in the following table: (In millions) December 30, December 31, Finance receivables $ 609 $ 587 Allowance for credit losses (24) (24) Total finance receivables, net $ 585 $ 563 |
Financing Receivables Categorized Based on Credit Quality Indicators | Finance receivables categorized based on the credit quality indicators and by delinquency aging category are summarized as follows: (Dollars in millions) December 30, December 31, Performing $ 571 $ 515 Watchlist 23 26 Nonaccrual 15 46 Nonaccrual as a percentage of finance receivables 2.46% 7.84% Current and less than 31 days past due $ 589 $ 579 31-60 days past due 16 7 61-90 days past due — — Over 90 days past due 4 1 60+ days contractual delinquency as a percentage of finance receivables 0.66% 0.17% |
Finance Receivables By Delinquency Aging Category | Finance receivables categorized based on the credit quality indicators and by delinquency aging category are summarized as follows: (Dollars in millions) December 30, December 31, Performing $ 571 $ 515 Watchlist 23 26 Nonaccrual 15 46 Nonaccrual as a percentage of finance receivables 2.46% 7.84% Current and less than 31 days past due $ 589 $ 579 31-60 days past due 16 7 61-90 days past due — — Over 90 days past due 4 1 60+ days contractual delinquency as a percentage of finance receivables 0.66% 0.17% |
Summary of Impaired Finance Receivables, Excluding Leveraged Leases, and the Average Recorded Investment | A summary of impaired finance receivables, excluding leveraged leases, and the average recorded investment is provided below: (In millions) December 30, December 31, Recorded investment: Impaired finance receivables with specific allowance for credit losses $ 11 $ 15 Impaired finance receivables with no specific allowance for credit losses 4 31 Total $ 15 $ 46 Unpaid principal balance $ 25 $ 60 Allowance for credit losses on impaired finance receivables 3 3 Average recorded investment of impaired finance receivables 27 67 |
Finance Receivables and Allowance For Credit Losses Based on Impairment Evaluation | A summary of the allowance for credit losses on finance receivables based on how the underlying finance receivables are evaluated for impairment is provided below. The finance receivables reported in this table exclude $86 million and $91 million of leveraged leases at December 30, 2023 and December 31, 2022, respectively, in accordance with U.S. generally accepted accounting principles. (In millions) December 30, December 31, Allowance for credit losses based on collective evaluation $ 21 $ 21 Allowance for credit losses based on individual evaluation 3 3 Finance receivables evaluated collectively 508 450 Finance receivables evaluated individually 15 46 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories are composed of the following: (In millions) December 30, December 31, Finished goods $ 1,072 $ 991 Work in process 1,736 1,540 Raw materials and components 1,106 1,019 Total $ 3,914 $ 3,550 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Manufacturing group's property, plant and equipment, net | Our Manufacturing group’s property, plant and equipment, net is composed of the following: (Dollars in millions) Useful Lives December 30, December 31, Land, buildings and improvements 2 - 40 $ 2,229 $ 2,140 Machinery and equipment 1 - 20 5,495 5,467 7,724 7,607 Accumulated depreciation and amortization (5,247) (5,084) Total $ 2,477 $ 2,523 |
Accounts Payable and Other Cu_2
Accounts Payable and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities of Manufacturing Group | The other current liabilities of our Manufacturing group are summarized below: (In millions) December 30, December 31, Contract liabilities $ 1,595 $ 1,416 Salaries, wages and employer taxes 466 414 Current portion of warranty and product maintenance liabilities 215 171 Other 722 644 Total $ 2,998 $ 2,645 |
Changes in Warranty Liability | Changes in our warranty liability are as follows: (In millions) 2023 2022 2021 Balance at beginning of year $ 149 $ 127 $ 119 Provision 76 73 70 Settlements (69) (60) (66) Adjustments* 16 9 4 Balance at end of year $ 172 $ 149 $ 127 * Adjustments include changes to prior year estimates, new issues on prior year sales, business acquisitions and dispositions, and currency translation adjustments. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Schedule of Balance Sheet and Other Information | Balance sheet and other information related to our operating leases is as follows: (Dollars in millions) December 30, December 31, Other assets $ 371 $ 372 Other current liabilities 55 54 Other liabilities 326 326 Weighted-average remaining lease term (in years) 10.3 10.4 Weighted-average discount rate 4.70% 4.14% |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt Summary | Our debt is summarized in the table below: (In millions) December 30, December 31, Manufacturing group 4.30% due 2024 $ 350 $ 350 3.875% due 2025 350 350 4.00% due 2026 350 350 3.65% due 2027 350 350 3.375% due 2028 300 300 3.90% due 2029 300 300 3.00% due 2030 650 650 2.45% due 2031 500 500 6.10% due 2033 350 — Other (weighted-average rate of 2.44% and 2.20%, respectively) 26 32 Total Manufacturing group debt $ 3,526 $ 3,182 Less: Current portion of long-term debt (357) (7) Total Long-term debt $ 3,169 $ 3,175 Finance group Variable-rate note due 2025 (weighted-average rate of 6.72% and 5.86%, respectively) $ 25 $ 25 Fixed-rate note due 2027 (4.40%) 50 50 Floating Rate Junior Subordinated Notes due 2067 (7.38% and 6.34%, respectively) 264 272 Other 9 28 Total Finance group debt $ 348 $ 375 |
Schedule of Required Principal Payments | The following table shows required principal payments during the next five years on debt outstanding at December 30, 2023: (In millions) 2024 2025 2026 2027 2028 Manufacturing group $ 357 $ 356 $ 355 $ 355 $ 303 Finance group 8 26 — 50 — Total $ 365 $ 382 $ 355 $ 405 $ 303 |
Derivative Instruments and Fa_2
Derivative Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Carrying Value and Estimated Fair Value of Financial Instruments Not Reflected in The Financial Statements 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: December 30, 2023 December 31, 2022 (In millions) Carrying Estimated Carrying Estimated Manufacturing group Debt, excluding leases $ (3,520) $ (3,342) $ (3,175) $ (2,872) Finance group Finance receivables, excluding leases 417 423 390 369 Debt (348) (293) (375) (294) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Schedule of Capital Stock | Outstanding common stock activity is presented below: (In thousands) 2023 2022 2021 Balance at beginning of year 206,161 216,935 226,444 Share repurchases (16,169) (13,075) (13,533) Share-based compensation activity 2,906 2,301 4,024 Balance at end of year 192,898 206,161 216,935 |
Schedule of Weighted-Average Shares Outstanding for Basic and Diluted EPS | The weighted-average shares outstanding for basic and diluted EPS are as follows: (In thousands) 2023 2022 2021 Basic weighted-average shares outstanding 199,719 212,809 224,106 Dilutive effect of stock options 2,055 2,164 2,414 Diluted weighted-average shares outstanding 201,774 214,973 226,520 |
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 January 1, 2022 $ (799) $ 9 $ 1 $ (789) Other comprehensive income before reclassifications 214 (103) (3) 108 Reclassified from Accumulated other comprehensive loss 69 — — 69 Balance at December 31, 2022 $ (516) $ (94) $ (2) $ (612) Other comprehensive loss before reclassifications (82) 45 (1) (38) Reclassified from Accumulated other comprehensive loss — — 6 6 Balance at December 30, 2023 $ (598) $ (49) $ 3 $ (644) |
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: 2023 2022 2021 (In millions) Pre-Tax Tax After- Pre-Tax Tax After- Pre-Tax Tax After- Pension and postretirement benefits Unrealized gains (losses) $ (102) $ 25 $ (77) $ 285 $ (67) $ 218 $ 1,148 $ (271) $ 877 Amortization of net actuarial (gain) loss* (7) 2 (5) 83 (20) 63 150 (34) 116 Amortization of prior service cost* 8 (3) 5 8 (2) 6 7 (3) 4 Recognition of prior service cost (7) 2 (5) (4) — (4) (20) 4 (16) Pension and postretirement benefits (108) 26 (82) 372 (89) 283 1,285 (304) 981 Foreign currency translation adjustments: Foreign currency translation adjustments 45 — 45 (103) — (103) (51) — (51) Business disposition — — — — — — 14 — 14 Foreign currency translation adjustments, net 45 — 45 (103) — (103) (37) — (37) Deferred gains (losses) on hedge contracts: Current deferrals (2) 1 (1) (7) 4 (3) 3 — 3 Reclassification adjustments 8 (2) 6 — — — (1) — (1) Deferred gains (losses) on hedge 6 (1) 5 (7) 4 (3) 2 — 2 Total $ (57) $ 25 $ (32) $ 262 $ (85) $ 177 $ 1,250 $ (304) $ 946 * These components of other comprehensive income (loss) are included in the computation of net periodic pension cost. See Note 15 for additional information. |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenues by Segment | Our revenues by segment, along with a reconciliation of segment profit to income from continuing operations before income taxes, are as follows: Revenues Segment Profit (Loss) (In millions) 2023 2022 2021 2023 2022 2021 Textron Aviation $ 5,373 $ 5,073 $ 4,566 $ 649 $ 560 $ 349 Bell 3,147 3,091 3,364 320 282 399 Textron Systems 1,235 1,172 1,273 147 132 178 Industrial 3,841 3,465 3,130 228 155 120 Textron eAviation 32 16 — (63) (24) — Finance 55 52 49 46 31 18 Total $ 13,683 $ 12,869 $ 12,382 $ 1,327 $ 1,136 $ 1,064 Corporate expenses and other, net (143) (143) (150) Interest expense, net for Manufacturing group (62) (94) (124) LIFO inventory provision (107) (71) (17) Intangible asset amortization (39) (52) (51) Special charges* (126) — (25) Non-service components of pension and 237 240 159 Gain on business disposition — — 17 Income from continuing operations before income taxes $ 1,087 $ 1,016 $ 873 * See Note 16 for additional information. |
Reconciliation of Segment Profit to Income From Continuing Operations Before Income Taxes | Our revenues by segment, along with a reconciliation of segment profit to income from continuing operations before income taxes, are as follows: Revenues Segment Profit (Loss) (In millions) 2023 2022 2021 2023 2022 2021 Textron Aviation $ 5,373 $ 5,073 $ 4,566 $ 649 $ 560 $ 349 Bell 3,147 3,091 3,364 320 282 399 Textron Systems 1,235 1,172 1,273 147 132 178 Industrial 3,841 3,465 3,130 228 155 120 Textron eAviation 32 16 — (63) (24) — Finance 55 52 49 46 31 18 Total $ 13,683 $ 12,869 $ 12,382 $ 1,327 $ 1,136 $ 1,064 Corporate expenses and other, net (143) (143) (150) Interest expense, net for Manufacturing group (62) (94) (124) LIFO inventory provision (107) (71) (17) Intangible asset amortization (39) (52) (51) Special charges* (126) — (25) Non-service components of pension and 237 240 159 Gain on business disposition — — 17 Income from continuing operations before income taxes $ 1,087 $ 1,016 $ 873 * See Note 16 for additional information. |
Other Information by Segment | Other information by segment is provided below: Assets Capital Expenditures Depreciation and Amortization (In millions) December 30, December 31, 2023 2022 2021 2023 2022 2021 Textron Aviation $ 4,542 $ 4,496 $ 138 $ 138 $ 115 $ 160 $ 152 $ 139 Bell 2,869 2,857 119 80 92 89 90 87 Textron Systems 2,008 1,989 48 57 80 41 49 45 Industrial 2,520 2,555 91 78 82 89 93 99 Textron eAviation 287 278 4 1 — 7 2 — Finance 661 664 — — — — 1 10 Corporate 3,969 3,454 2 — 6 9 10 10 Total $ 16,856 $ 16,293 $ 402 $ 354 $ 375 $ 395 $ 397 $ 390 |
Selected Financial Information of by Geographic Area | Presented below is selected financial information by geographic area: Revenues* Property, Plant (In millions) 2023 2022 2021 December 30, December 31, United States $ 9,305 $ 8,702 $ 8,572 $ 2,104 $ 2,137 Europe 1,414 1,468 1,369 182 188 Other international 2,964 2,699 2,441 191 198 Total $ 13,683 $ 12,869 $ 12,382 $ 2,477 $ 2,523 * Revenues are attributed to countries based on the location of the customer. ** Property, plant and equipment, net is based on the location of the asset. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Major Product Type, Customer type and Geographic Location | Our revenues disaggregated by major product type are presented below: (In millions) 2023 2022 2021 Aircraft $ 3,577 $ 3,387 $ 3,116 Aftermarket parts and services 1,796 1,686 1,450 Textron Aviation $ 5,373 $ 5,073 $ 4,566 Military aircraft and support programs 1,701 1,740 2,073 Commercial helicopters, parts and services 1,446 1,351 1,291 Bell $ 3,147 $ 3,091 $ 3,364 Textron Systems $ 1,235 $ 1,172 $ 1,273 Fuel systems and functional components 1,954 1,771 1,735 Specialized vehicles 1,887 1,694 1,395 Industrial $ 3,841 $ 3,465 $ 3,130 Textron eAviation $ 32 $ 16 $ — Finance $ 55 $ 52 $ 49 Total revenues $ 13,683 $ 12,869 $ 12,382 Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Bell Textron Industrial Textron eAviation Finance Total 2023 Customer type: Commercial $ 5,155 $ 1,407 $ 282 $ 3,819 $ 32 $ 55 $ 10,750 U.S. Government 218 1,740 953 22 — — 2,933 Total revenues $ 5,373 $ 3,147 $ 1,235 $ 3,841 $ 32 $ 55 $ 13,683 Geographic location: United States $ 3,873 $ 2,228 $ 1,103 $ 2,067 $ 17 $ 17 $ 9,305 Europe 432 149 54 766 11 2 1,414 Other international 1,068 770 78 1,008 4 36 2,964 Total revenues $ 5,373 $ 3,147 $ 1,235 $ 3,841 $ 32 $ 55 $ 13,683 2022 Customer type: Commercial $ 4,959 $ 1,284 $ 274 $ 3,450 $ 16 $ 52 $ 10,035 U.S. Government 114 1,807 898 15 — — 2,834 Total revenues $ 5,073 $ 3,091 $ 1,172 $ 3,465 $ 16 $ 52 $ 12,869 Geographic location: United States $ 3,520 $ 2,242 $ 1,054 $ 1,862 $ 7 $ 17 $ 8,702 Europe 579 139 42 699 6 3 1,468 Other international 974 710 76 904 3 32 2,699 Total revenues $ 5,073 $ 3,091 $ 1,172 $ 3,465 $ 16 $ 52 $ 12,869 2021 Customer type: Commercial $ 4,435 $ 1,328 $ 257 $ 3,113 $ — $ 49 $ 9,182 U.S. Government 131 2,036 1,016 17 — — 3,200 Total revenues $ 4,566 $ 3,364 $ 1,273 $ 3,130 $ — $ 49 $ 12,382 Geographic location: United States $ 3,424 $ 2,425 $ 1,126 $ 1,570 $ — $ 27 $ 8,572 Europe 396 171 44 757 — 1 1,369 Other international 746 768 103 803 — 21 2,441 Total revenues $ 4,566 $ 3,364 $ 1,273 $ 3,130 $ — $ 49 $ 12,382 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Compensation expense included in net income | Compensation expense included in net income for our share-based compensation plans is as follows: (In millions) 2023 2022 2021 Compensation expense $ 94 $ 66 $ 138 Income tax benefit (23) (16) (33) Total compensation expense included in net income $ 71 $ 50 $ 105 |
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: 2023 2022 2021 Fair value of options at grant date $ 23.83 $ 19.95 $ 15.05 Dividend yield 0.1% 0.1% 0.2% Expected volatility 29.4% 29.2% 33.6% Risk-free interest rate 4.2% 1.9% 0.7% Expected term (in years) 4.8 4.8 4.7 |
Stock option activity | The stock option activity during 2023 is provided below: (Options in thousands) Number of Weighted- Outstanding at beginning of year 8,310 $ 50.25 Granted 1,026 73.19 Exercised (1,659) (45.14) Forfeited or expired (162) (62.11) Outstanding at end of year 7,515 $ 54.25 Exercisable at end of year 5,347 $ 48.85 |
Activity for Restricted Stock Units | The 2023 activity for restricted stock units is provided below: Units Payable in Stock Units Payable in Cash (Shares/Units in thousands) Number of Weighted- Number of Weighted- Outstanding at beginning of year, nonvested 525 $ 52.99 1,086 $ 53.26 Granted 125 71.86 247 73.21 Vested (235) (47.73) (467) (45.95) Forfeited (19) (60.09) (56) (60.24) Outstanding at end of year, nonvested 396 $ 61.73 810 $ 63.06 |
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: (In millions) 2023 2022 2021 Fair value of awards vested $ 45 $ 25 $ 20 Cash paid 34 17 13 The fair value of the performance share units that vested and/or amounts paid under these awards is as follows: (In millions) 2023 2022 2021 Fair value of awards vested $ 19 $ 19 $ 18 Cash paid 27 15 6 |
Activity for Performance Share Units | The 2023 activity for our performance share units is as follows: (Units in thousands) Number of Weighted- Outstanding at beginning of year, nonvested 427 $ 59.51 Granted 209 73.19 Vested (242) (51.56) Forfeited (28) (63.72) Outstanding at end of year, nonvested 366 $ 72.23 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost (Income) | The components of net periodic benefit cost (income) and other amounts recognized in other comprehensive income (loss) (OCI) are as follows: Pension Benefits Postretirement Benefits (In millions) 2023 2022 2021 2023 2022 2021 Net periodic benefit cost (income) Service cost $ 67 $ 108 $ 116 $ 2 $ 2 $ 3 Interest cost 364 272 252 8 6 5 Expected return on plan assets (610) (609) (573) — — — Amortization of prior service cost (credit) 11 13 12 (3) (5) (5) Amortization of net actuarial loss (gain) 1 87 152 (8) (4) (2) Net periodic benefit cost (income)* $ (167) $ (129) $ (41) $ (1) $ (1) $ 1 Other changes in plan assets and benefit obligations recognized in OCI Current year actuarial loss (gain) $ 109 $ (246) $ (1,135) $ (7) $ (39) $ (13) Current year prior service cost 7 4 20 — — — Amortization of net actuarial gain (loss) (1) (87) (152) 8 4 2 Amortization of prior service credit (cost) (11) (13) (12) 3 5 5 Total recognized in OCI, before taxes $ 104 $ (342) $ (1,279) $ 4 $ (30) $ (6) Total recognized in net periodic benefit cost (income) and OCI $ (63) $ (471) $ (1,320) $ 3 $ (31) $ (5) * Excludes the cost associated with the defined contribution component that is included in certain of our U.S.-based defined benefit pension plans, of $11 million in 2023, 2022, and 2021. |
Changes In The Projected Benefit Obligation And In The Fair Value of Plan Assets | The changes in the projected benefit obligation and in the fair value of plan assets, along with our funded status, are as follows: Pension Benefits Postretirement Benefits (In millions) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 6,848 $ 9,339 $ 150 $ 202 Service cost 67 108 2 2 Interest cost 364 272 8 6 Plan participants’ contributions — — 3 4 Actuarial losses (gains) 330 (2,373) (7) (40) Benefits paid (444) (448) (20) (24) Plan amendment 7 1 — — Foreign exchange rate changes and other 33 (51) — — Projected benefit obligation at end of year $ 7,205 $ 6,848 $ 136 $ 150 Change in fair value of plan assets Fair value of plan assets at beginning of year $ 7,943 $ 9,947 Actual return on plan assets 832 (1,520) Employer contributions 36 37 Benefits paid (444) (448) Foreign exchange rate changes and other 46 (73) Fair value of plan assets at end of year $ 8,413 $ 7,943 Funded status at end of year $ 1,208 $ 1,095 $ (136) $ (150) |
Amounts Recognized In Our Balance Sheets | Amounts recognized in our balance sheets are as follows: Pension Benefits Postretirement Benefits (In millions) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Non-current assets $ 1,569 $ 1,440 $ — $ — Current liabilities (28) (28) (17) (19) Non-current liabilities (333) (317) (119) (131) Recognized in Accumulated other comprehensive loss, pre-tax: Net loss (gain) 730 623 (69) (70) Prior service cost (credit) 42 46 (3) (6) |
Pension Plans With Accumulated Benefit Obligations Exceeding The Fair Value Of Plan Assets | Pension plans with accumulated benefit obligation exceeding the fair value of plan assets are as follows: (In millions) December 30, 2023 December 31, 2022 Accumulated benefit obligation $ 336 $ 326 Fair value of plan assets — — |
Pension Plans With Projected Benefit Obligations Exceeding The Fair Value of Plan Assets | Pension plans with projected benefit obligation exceeding the fair value of plan assets are as follows: (In millions) December 30, 2023 December 31, 2022 Projected benefit obligation $ 652 $ 597 Fair value of plan assets 292 252 |
Weighted-average Assumptions Used For Pension and Postretirement Plans | The weighted-average assumptions we use for our pension and postretirement plans are as follows: Pension Benefits Postretirement Benefits 2023 2022 2021 2023 2022 2021 Net periodic benefit cost Discount rate 5.51% 2.99% 2.62% 5.70% 2.80% 2.35% Expected long-term rate of return on assets 7.14% 7.10% 7.10% Rate of compensation increase 3.97% 3.95% 3.49% Benefit obligations at year-end Discount rate 5.19% 5.51% 2.99% 5.40% 5.70% 2.80% Rate of compensation increase 3.97% 3.97% 3.95% Interest crediting rate for cash balance plans 5.25% 5.25% 5.25% |
Target Allocation Ranges | Our target allocation ranges are as follows: U.S. Plan Assets Domestic equity securities 17 % to 33% International equity securities 6 % to 17% Global equities 5 % to 17% Debt securities 27 % to 38% Real estate 7 % to 13% Private investment partnerships 7 % to 13% Non-U.S. Plan Assets Equity securities 55 % to 75% Debt securities 25 % to 45% Real estate 0% to 13% |
Fair Value of Total Pension Plan Assets | The fair value of our pension plan assets by major category and valuation method is as follows: December 30, 2023 December 31, 2022 (In millions) Level 1 Level 2 Level 3 Not Level 1 Level 2 Level 3 Not Cash and equivalents $ 231 $ 1 $ — $ — $ 378 $ 3 $ — $ — Equity securities: Domestic 2,754 — — 299 2,304 — — 225 International 1,061 — — 281 1,171 — — 230 Mutual funds 117 — — — 150 — — — Debt securities: National, state and local governments 679 142 — 88 332 239 — 27 Corporate debt 164 610 — 90 58 663 — 129 Private investment partnerships — — — 1,000 — — — 1,070 Real estate — — 508 388 — — 569 395 Total $ 5,006 $ 753 $ 508 $ 2,146 $ 4,393 $ 905 $ 569 $ 2,076 |
Reconciliation for Fair Value Measurements That Use Significant Unobservable Inputs | The table below presents a reconciliation of the fair value measurements for owned real estate properties, which use significant unobservable inputs (Level 3): (In millions) 2023 2022 Balance at beginning of year $ 569 $ 599 Unrealized losses, net (60) (10) Realized gains, net 10 11 Purchases, sales and settlements, net (11) (31) Balance at end of year $ 508 $ 569 |
Estimated Future Benefit Payments Which Reflect Expected Future Service To Be Paid By The Plans | Benefit payments that we expect to pay on an undiscounted basis are as follows: (In millions) 2024 2025 2026 2027 2028 2029-2033 Pension benefits $ 455 $ 463 $ 471 $ 480 $ 487 $ 2,501 Postretirement benefits other than pensions 17 17 16 15 14 56 |
Special Charges (Tables)
Special Charges (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Special Charges | Special charges recorded in 2023 and 2021 by segment and type of cost are as follows: (In millions) Severance Contract Asset Total Restructuring Charges 2023 Industrial $ 21 $ — $ 87 $ 108 Bell 13 — — 13 Textron Systems 5 — — 5 Total special charges $ 39 $ — $ 87 $ 126 2021 Industrial $ 4 $ 9 $ 12 $ 25 Total special charges $ 4 $ 9 $ 12 $ 25 |
Schedule of Restructuring Reserve Activity | Our restructuring reserve activity is summarized below: (In millions) Severance Contract Total Balance at January 1, 2022 $ 19 $ 9 $ 28 Cash paid (13) (2) (15) Foreign currency translation (1) — (1) Balance at December 31, 2022 $ 5 $ 7 $ 12 Provision for 2023 restructuring plan 39 — 39 Cash paid (3) (2) (5) Foreign currency translation 1 — 1 Balance at December 30, 2023 $ 42 $ 5 $ 47 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes | Income from continuing operations before income taxes is as follows: (In millions) 2023 2022 2021 U.S. $ 905 $ 810 $ 699 Non-U.S. 182 206 174 Income from continuing operations before income taxes $ 1,087 $ 1,016 $ 873 |
Income Tax Expense (Benefit) | Income tax expense is summarized as follows: (In millions) 2023 2022 2021 Current expense: Federal $ 267 $ 272 $ 41 State 18 33 15 Non-U.S. 72 69 47 357 374 103 Deferred expense (benefit): Federal (181) (182) 35 State 1 (29) (10) Non-U.S. (12) (9) (2) (192) (220) 23 Income tax expense $ 165 $ 154 $ 126 |
Effective Income Tax Rate Reconciliation | The following table reconciles the federal statutory income tax rate to our effective income tax rate: 2023 2022 2021 U.S. Federal statutory income tax rate 21.0% 21.0% 21.0% Increase (decrease) resulting from: Research and development tax credits (4.7) (5.0) (7.0) Foreign-derived intangible income deduction (a) (3.2) (2.5) — Non-U.S. tax rate differential and foreign tax credits 1.5 1.8 1.3 State income taxes (net of federal impact) 1.4 0.3 0.5 Other, net (0.8) (0.4) (1.4) Effective income tax rate 15.2% 15.2% 14.4% (a) In 2023 and 2022, the foreign-derived intangible income deduction is primarily due to the impact of capitalizing research and development expenditures for tax-purposes effective on January 1, 2022 as part of the Tax Cuts and Jobs Act of 2017. |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of these unrecognized tax benefits is as follows: (In millions) 2023 2022 2021 Balance at beginning of year $ 231 $ 207 $ 183 Additions for tax positions related to current year 16 24 21 Additions for tax positions of prior years 3 — 10 Reductions for tax positions of prior years (28) — (4) Reductions for settlements and expiration of statute of limitations — — (3) Balance at end of year $ 222 $ 231 $ 207 |
Deferred Taxes | The significant components of our net deferred tax assets/(liabilities) are provided below: (In millions) December 30, December 31, Capitalized research and development expenditures $ 520 $ 319 Accrued liabilities (a) 228 209 U.S. operating loss and tax credit carryforwards (b) 216 257 Obligation for pension and postretirement benefits 123 117 Deferred compensation 103 108 Operating lease liabilities 102 102 Non-U.S. operating loss and tax credit carryforwards (c) 73 53 Prepaid pension benefits (387) (348) Property, plant and equipment, principally depreciation (211) (222) Amortization of goodwill and other intangibles (185) (194) Operating lease right-of-use assets (99) (99) Valuation allowance on deferred tax assets (82) (99) Other leasing transactions, principally leveraged leases (47) (53) Other, net (5) (22) Deferred taxes, net $ 349 $ 128 (a) Accrued liabilities include warranty reserves, self-insured liabilities and interest. (b) At December 30, 2023, U.S. operating loss and tax credit carryforward benefits of $179 million expire through 2043 if not utilized and $37 million may be carried forward indefinitely. (c) At December 30, 2023, non-U.S. operating loss and tax credit carryforward benefits of $68 million may be carried forward indefinitely. The following table presents the breakdown of our deferred taxes: (In millions) December 30, December 31, Manufacturing group: Deferred tax assets, net of valuation allowance $ 443 $ 223 Deferred tax liabilities (56) (52) Finance group – Deferred tax liabilities (38) (43) Net deferred tax asset $ 349 $ 128 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash payments and receipts | Our cash payments and receipts are as follows: (In millions) 2023 2022 2021 Interest paid: Manufacturing group $ 110 $ 110 $ 128 Finance group 12 13 17 Net income taxes paid: Manufacturing group 338 332 72 Finance group 14 24 21 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Principle of Consolidation and Financial Statement Presentation (Details) | 12 Months Ended |
Dec. 30, 2023 borrowing_group | |
Accounting Policies [Abstract] | |
Number of borrowing groups | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Collaborative Arrangements (Details) - Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | 12 Months Ended |
Dec. 30, 2023 | |
Cost -plus contract | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Profit allocation percentage | 50% |
Fixed-price contract | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Profit allocation percentage | 50% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Dec. 30, 2023 | |
U. S. Government | |
Revenues | |
Contract with U.S. Government, percent of total revenues | 21% |
U. S. Government | Fixed-price and fixed-price incentive contracts | |
Revenues | |
Percentage of revenue under fixed-price and fixed-price incentive contracts | 73% |
Maximum | U. S. Government | Performance-based | |
Revenues | |
Percentage of contract price received for performance based payments on US Government Contracts | 90% |
Maximum | U. S. Government | Progress payments | |
Revenues | |
Percentage of costs incurred representing progress payments on US Government Contracts | 80% |
Commercial Contract | Minimum | |
Revenues | |
Period of warranty programs | 1 year |
Commercial Contract | Maximum | |
Revenues | |
Period of warranty programs | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Finance Revenues (Details) | 12 Months Ended |
Dec. 30, 2023 | |
Minimum | Nonperforming | |
Revenues | |
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful | 3 months |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Contracts Estimates (Details) - Cumulative catch-up method - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Use of Estimates | |||
Cumulative catch-up adjustments increase (decrease) | $ 44 | $ (16) | $ 81 |
Change in accounting estimate financial effect increase (decrease) in net income | $ 34 | $ (12) | $ 62 |
Change in accounting estimate financial effect increase (decrease) in income, per share (in dollars per share) | $ 0.17 | $ (0.06) | $ 0.27 |
Revenue increased (reduced) from performance obligations satisfied in prior periods | $ 42 | $ (25) | $ 93 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets | |
Gross intangible assets amortized based on the cash flow streams | 82% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Environmental Liabilities and Asset Retirement Obligations (Details) | Dec. 30, 2023 USD ($) |
Environmental Liabilities and Asset Retirement Obligations | |
Asset retirement obligations | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Research and Development Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Research and Development Costs | |||
Research and development costs | $ 570 | $ 601 | $ 619 |
Business Acquisition and Disp_2
Business Acquisition and Disposition (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 15, 2022 | Jan. 25, 2021 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net proceeds from business disposition | $ 0 | $ 0 | $ 38 | ||
After tax gain | $ 0 | $ 0 | $ 17 | ||
Disposition of businesses | TRU Simulation + Training Canada, Inc. | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net proceeds from business disposition | $ 38 | ||||
After tax gain | $ 17 | ||||
Pipistrel | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 239 | ||||
Assumption of debt and other contractual obligations | 35 | ||||
Final fixed purchase price payment | $ 21 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - Manufacturing group - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Changes in the carrying amount of goodwill | ||
Beginning Balance | $ 2,283 | $ 2,149 |
Acquisitions | 146 | |
Foreign currency translation | 12 | (12) |
Ending Balance | 2,295 | 2,283 |
Textron Aviation | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 633 | 631 |
Acquisitions | 3 | |
Foreign currency translation | 0 | (1) |
Ending Balance | 633 | 633 |
Bell | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 37 | 35 |
Acquisitions | 2 | |
Foreign currency translation | 0 | 0 |
Ending Balance | 37 | 37 |
Textron Systems | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 1,010 | 1,010 |
Acquisitions | 0 | |
Foreign currency translation | 0 | 0 |
Ending Balance | 1,010 | 1,010 |
Industrial | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 465 | 473 |
Acquisitions | 0 | |
Foreign currency translation | 5 | (8) |
Ending Balance | 470 | 465 |
Textron eAviation | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 138 | 0 |
Acquisitions | 141 | |
Foreign currency translation | 7 | (3) |
Ending Balance | $ 145 | $ 138 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Gross Carrying Amount | $ 1,067 | $ 1,118 |
Accumulated Amortization | (668) | (657) |
Net | $ 399 | 461 |
Trade names and trademarks | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Weighted-Average Amortization Period (in years) | 18 years | |
Gross Carrying Amount | $ 200 | 199 |
Accumulated Amortization | (9) | (8) |
Net | $ 191 | 191 |
Patents and technology | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Weighted-Average Amortization Period (in years) | 15 years | |
Gross Carrying Amount | $ 510 | 527 |
Accumulated Amortization | (333) | (319) |
Net | $ 177 | 208 |
Customer relationships and contractual agreements | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Weighted-Average Amortization Period (in years) | 15 years | |
Gross Carrying Amount | $ 357 | 392 |
Accumulated Amortization | (326) | (330) |
Net | $ 31 | $ 62 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible asset impairment charges | $ 27 | ||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Special charges | ||
Total amortization expense | $ 39 | $ 52 | $ 51 |
2024 | 34 | ||
2025 | 32 | ||
2026 | 29 | ||
2027 | 27 | ||
2028 | 26 | ||
Trade names and trademarks | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Indefinite-lived intangible assets | $ 169 | $ 169 |
Accounts Receivable and Finan_3
Accounts Receivable and Finance Receivables - Accounts Receivable (Details) - Manufacturing group - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Accounts Receivable | ||
Accounts receivable, gross | $ 894 | $ 879 |
Allowance for credit losses | (26) | (24) |
Total | 868 | 855 |
Commercial | ||
Accounts Receivable | ||
Accounts receivable, gross | 831 | 755 |
U. S. Government | ||
Accounts Receivable | ||
Accounts receivable, gross | $ 63 | $ 124 |
Accounts Receivable and Finan_4
Accounts Receivable and Finance Receivables - Finance Receivables (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Finance Receivables | ||
Finance receivables | $ 609 | $ 587 |
Allowance for credit losses | (24) | (24) |
Total finance receivables, net | $ 585 | $ 563 |
Accounts Receivable and Finan_5
Accounts Receivable and Finance Receivables - Finance Receivables, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Financing receivable, credit quality indicator | ||
Average balance of finance receivables | $ 1.9 | |
Percentage of internationally based finance receivables | 57% | 58% |
Percentage of US based finance receivables | 43% | 42% |
Performing | ||
Financing receivable, credit quality indicator | ||
Financing receivables percentage originated since the beginning of 2021 | 44% | |
Financing receivables percentage originated from 2018 to 2020 | 26% | |
Nonperforming | Watchlist | ||
Financing receivable, credit quality indicator | ||
Financing receivable percentage originating since the beginning of 2020 | 100% | |
Nonperforming | Nonaccrual | ||
Financing receivable, credit quality indicator | ||
Financing receivables percentage originated from 2018 to 2020 | 43% | |
Minimum | ||
Financing receivable, credit quality indicator | ||
Contractual terms | 5 years | |
Amortization period | 8 years | |
Minimum | Nonperforming | ||
Financing receivable, credit quality indicator | ||
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful | 3 months | |
Maximum | ||
Financing receivable, credit quality indicator | ||
Contractual terms | 12 years | |
Amortization period | 15 years |
Accounts Receivable and Finan_6
Accounts Receivable and Finance Receivables - Finance Receivables By Delinquency Aging Category (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | $ 609 | $ 587 |
60+ days contractual delinquency as a percentage of finance receivables | 0.66% | 0.17% |
Current and less than 31 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | $ 589 | $ 579 |
31-60 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 16 | 7 |
61-90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 0 | 0 |
Over 90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 4 | 1 |
Performing | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | $ 571 | $ 515 |
Nonperforming | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual as a percentage of finance receivables | 2.46% | 7.84% |
Nonperforming | Watchlist | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | $ 23 | $ 26 |
Nonperforming | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | $ 15 | $ 46 |
Accounts Receivable and Finan_7
Accounts Receivable and Finance Receivables - Summary of Impaired Finance Receivables, Excluding Leveraged Leases, and The Average Recorded investment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Summary of impaired finance receivables, excluding leveraged leases, and the average recorded investment | ||
Impaired finance receivables with specific allowance for credit losses | $ 11 | $ 15 |
Impaired finance receivables with no specific allowance for credit losses | 4 | 31 |
Total | 15 | 46 |
Unpaid principal balance | 25 | 60 |
Allowance for credit losses on impaired finance receivables | 3 | 3 |
Average recorded investment of impaired finance receivables | $ 27 | $ 67 |
Accounts Receivable and Finan_8
Accounts Receivable and Finance Receivables - Allowance for Losses On Finance Receivables Based on How The Finance Receivables are Evaluated For Impairment (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Finance receivables | ||
Leveraged leases | $ 86 | $ 91 |
Allowance for credit losses | ||
Allowance for credit losses based on collective evaluation | 21 | 21 |
Allowance for credit losses based on individual evaluation | 3 | 3 |
Finance receivables evaluated collectively | 508 | 450 |
Finance receivables evaluated individually | $ 15 | $ 46 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Inventories | ||
Finished goods | $ 1,072 | $ 991 |
Work in process | 1,736 | 1,540 |
Raw materials and components | 1,106 | 1,019 |
Total | $ 3,914 | $ 3,550 |
Percentage of inventories valued using LIFO | 68% | 71% |
Amount LIFO inventory would be higher by had it been valued using the FIFO method | $ 701 | $ 594 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Total | $ 2,477 | $ 2,523 | |
Manufacturing group | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 7,724 | 7,607 | |
Accumulated depreciation and amortization | (5,247) | (5,084) | |
Total | 2,477 | 2,523 | |
Depreciation expense | 353 | 340 | $ 325 |
Manufacturing group | Land, buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 2,229 | 2,140 | |
Manufacturing group | Land, buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (in years) | 2 years | ||
Manufacturing group | Land, buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (in years) | 40 years | ||
Manufacturing group | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 5,495 | $ 5,467 | |
Manufacturing group | Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (in years) | 1 year | ||
Manufacturing group | Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (in years) | 20 years |
Accounts Payable and Other Cu_3
Accounts Payable and Other Current Liabilities - Narrative (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Supplier Finance Program [Line Items] | ||
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable |
Supplier financing maximum commitment | $ 175 | |
Payable under supplier financing arrangement | $ 125 | $ 110 |
Maximum | ||
Supplier Finance Program [Line Items] | ||
Payment terms period under supplier financing arrangement | 190 days |
Accounts Payable and Other Cu_4
Accounts Payable and Other Current Liabilities - Other current liabilities of Manufacturing group (Details) - Manufacturing group - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Other Liabilities [Line Items] | ||
Contract liabilities | $ 1,595 | $ 1,416 |
Salaries, wages and employer taxes | 466 | 414 |
Current portion of warranty and product maintenance liabilities | 215 | 171 |
Other | 722 | 644 |
Total | $ 2,998 | $ 2,645 |
Accounts Payable and Other Cu_5
Accounts Payable and Other Current Liabilities - Changes in warranty liability (Details) - Manufacturing group - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Changes in warranty liability | |||
Balance at beginning of year | $ 149 | $ 127 | $ 119 |
Provision | 76 | 73 | 70 |
Settlements | (69) | (60) | (66) |
Adjustments | 16 | 9 | 4 |
Balance at end of year | $ 172 | $ 149 | $ 127 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Leases [Abstract] | |||
Remaining lease term | 25 years | ||
Option to extend the lease | true | ||
Option to extend the lease, term | 20 years | ||
Operating lease cost | $ 69 | $ 69 | $ 66 |
Cash paid for operating lease liabilities | 69 | 68 | 66 |
Operating lease assets and liabilities recognized for new or extended leases | $ 54 | $ 58 | $ 86 |
Leases - Balance Sheet and Othe
Leases - Balance Sheet and Other Information (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Operating Leases: | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Other assets | $ 371 | $ 372 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Other current liabilities | $ 55 | $ 54 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Other liabilities | $ 326 | $ 326 |
Weighted-average remaining lease term (in years) | ||
Weighted-average remaining lease term (in years) | 10 years 3 months 18 days | 10 years 4 months 24 days |
Weighted-average discount rate | ||
Weighted-average discount rate | 4.70% | 4.14% |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Millions | Dec. 30, 2023 USD ($) |
Operating leases | |
2024 | $ 69 |
2025 | 62 |
2026 | 47 |
2027 | 41 |
2028 | 39 |
Thereafter | $ 231 |
Debt and Credit Facilities - Su
Debt and Credit Facilities - Summary of Debt (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Manufacturing group | ||
Debt Instrument [Line Items] | ||
Total debt | $ 3,526 | $ 3,182 |
Less: Current portion of long-term debt | (357) | (7) |
Total Long-term debt | $ 3,169 | 3,175 |
Manufacturing group | 4.30% due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.30% | |
Manufacturing group | 3.875% due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.875% | |
Manufacturing group | 4.00% due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4% | |
Manufacturing group | 3.65% due 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.65% | |
Manufacturing group | 3.375% due 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.375% | |
Manufacturing group | 3.90% due 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.90% | |
Manufacturing group | 3.00% due 2030 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3% | |
Manufacturing group | 2.45% due 2031 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.45% | |
Manufacturing group | 6.10% due 2033 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.10% | |
Manufacturing group | Other (weighted-average rate of 2.44% and 2.20%, respectively) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 26 | $ 32 |
Weighted-average interest rate | 2.44% | 2.20% |
Manufacturing group | Medium-term Notes | 4.30% due 2024 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 350 | $ 350 |
Manufacturing group | Medium-term Notes | 3.875% due 2025 | ||
Debt Instrument [Line Items] | ||
Total debt | 350 | 350 |
Manufacturing group | Medium-term Notes | 4.00% due 2026 | ||
Debt Instrument [Line Items] | ||
Total debt | 350 | 350 |
Manufacturing group | Medium-term Notes | 3.65% due 2027 | ||
Debt Instrument [Line Items] | ||
Total debt | 350 | 350 |
Manufacturing group | Medium-term Notes | 3.375% due 2028 | ||
Debt Instrument [Line Items] | ||
Total debt | 300 | 300 |
Manufacturing group | Medium-term Notes | 3.90% due 2029 | ||
Debt Instrument [Line Items] | ||
Total debt | 300 | 300 |
Manufacturing group | Medium-term Notes | 3.00% due 2030 | ||
Debt Instrument [Line Items] | ||
Total debt | 650 | 650 |
Manufacturing group | Medium-term Notes | 2.45% due 2031 | ||
Debt Instrument [Line Items] | ||
Total debt | 500 | 500 |
Manufacturing group | Medium-term Notes | 6.10% due 2033 | ||
Debt Instrument [Line Items] | ||
Total debt | 350 | 0 |
Finance group | ||
Debt Instrument [Line Items] | ||
Total debt | 348 | 375 |
Finance group | Variable-rate note due 2025 (weighted-average rate of 6.72% and 5.86%, respectively) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 25 | $ 25 |
Weighted-average interest rate | 6.72% | 5.86% |
Finance group | Fixed-rate note due 2027 (4.40%) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 50 | $ 50 |
Interest rate | 4.40% | 4.40% |
Finance group | Floating Rate Junior Subordinated Notes due 2067 (7.38% and 6.34%, respectively) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 264 | $ 272 |
Weighted-average interest rate | 7.38% | 6.34% |
Finance group | Other | ||
Debt Instrument [Line Items] | ||
Total debt | $ 9 | $ 28 |
Debt and Credit Facilities - Fu
Debt and Credit Facilities - Future Required Principal Payments on Debt (Details) $ in Millions | Dec. 30, 2023 USD ($) |
Required payments during the next five years on debt outstanding | |
2024 | $ 365 |
2025 | 382 |
2026 | 355 |
2027 | 405 |
2028 | 303 |
Manufacturing group | |
Required payments during the next five years on debt outstanding | |
2024 | 357 |
2025 | 356 |
2026 | 355 |
2027 | 355 |
2028 | 303 |
Finance group | |
Required payments during the next five years on debt outstanding | |
2024 | 8 |
2025 | 26 |
2026 | 0 |
2027 | 50 |
2028 | $ 0 |
Debt and Credit Facilities - Na
Debt and Credit Facilities - Narrative (Details) | 12 Months Ended | ||
Dec. 30, 2023 USD ($) extension_option | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Minimum fixed charge coverage required to be maintained by subsidiary | 125% | ||
Minimum shareholders equity required to be maintained by subsidiary | $ 125,000,000 | ||
Cash paid to TFC to maintain compliance with covenants | 0 | $ 0 | $ 0 |
Floating Rate Junior Subordinated Notes | Finance group | Floating Rate Junior Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 264,000,000 | ||
Debt instrument, maturity date | Feb. 15, 2067 | ||
Debt Instrument call date latest | Feb. 15, 2042 | ||
Repurchase amount | $ 8,000,000 | 17,000,000 | |
Floating Rate Junior Subordinated Notes | Finance group | Floating Rate Junior Subordinated Notes | CME Term Secured Overnight Financing Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument description of variable rate basis after specified term at fixed rate | three-month CME Term Secured Overnight Financing Rate | ||
Interest rate spread | 1.99661% | ||
Senior Unsecured Revolving Credit Facility Expires October2027 | Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Portion available for issuance of letters of credit against facility | 100,000,000 | ||
Borrowing capacity Textron may elect to increase to | $ 1,300,000,000 | ||
Number of one-year extensions | extension_option | 2 | ||
Extension period (in years) | 1 year | ||
Amount borrowed against facility | $ 0 | 0 | |
Letter of Credit | Line of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding letters of credit | $ 9,000,000 | $ 9,000,000 |
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 | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | May 31, 2022 | |
Manufacturing group | |||
Derivatives, Fair Value [Line Items] | |||
Forward exchange contracts maximum maturity period | 3 years | ||
Manufacturing group | Foreign currency exchange contracts | Cash flow hedge | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts | $ 478 | $ 354 | |
Manufacturing group | Foreign currency exchange contracts | Cash flow hedge | Level 2 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset, fair value | 4 | ||
Derivative liability, fair value | 3 | 11 | |
Finance group | Interest rate swap | Cash flow hedge | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset, fair value | 4 | 8 | |
Finance group | Interest rate swap, maturing August 2025 to August 2028 | Cash flow hedge | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts | $ 185 | ||
Finance group | Interest rate swap, maturing August 2025 to August 2028 | Cash flow hedge | Floating Rate Junior Subordinated Notes due 2067 (7.38% and 6.34%, respectively) | Floating Rate Junior Subordinated Notes | |||
Derivatives, Fair Value [Line Items] | |||
Net impact of debt and derivative, weighted-average fixed interest rate | 5.17% | ||
Finance group | Interest rate swap, maturing in August 2023 | Cash flow hedge | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts | $ 272 | ||
Finance group | Interest rate swap, maturing in June 2025 | Cash flow hedge | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts | $ 25 | ||
Finance group | Interest rate swap, maturing in June 2025 | Cash flow hedge | Floating Rate Junior Subordinated Notes due 2067 (7.38% and 6.34%, respectively) | Floating Rate Junior Subordinated Notes | |||
Derivatives, Fair Value [Line Items] | |||
Net impact of debt and derivative, fixed interest rate | 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 | Dec. 30, 2023 | Dec. 31, 2022 |
Manufacturing group | Carrying Value | ||
Financial instruments not reflected at fair value | ||
Debt | $ (3,520) | $ (3,175) |
Manufacturing group | Estimated Fair Value | ||
Financial instruments not reflected at fair value | ||
Debt | (3,342) | (2,872) |
Finance group | Carrying Value | ||
Financial instruments not reflected at fair value | ||
Debt | (348) | (375) |
Finance receivables, excluding leases | 417 | 390 |
Finance group | Estimated Fair Value | ||
Financial instruments not reflected at fair value | ||
Debt | (293) | (294) |
Finance receivables, excluding leases | $ 423 | $ 369 |
Shareholders' Equity - Capital
Shareholders' Equity - Capital Stock (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Equity [Abstract] | |||
Preferred stock shares authorized (in shares) | 15,000 | ||
Preferred stock par value (in dollars per share) | $ 0.01 | ||
Common stock (in shares) | 500,000 | ||
Common stock par value (in dollars per share) | $ 0.125 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year (in shares) | 206,161 | 216,935 | 226,444 |
Share repurchases (in shares) | (16,169) | (13,075) | (13,533) |
Share-based compensation activity (in shares) | 2,906 | 2,301 | 4,024 |
Balance at end of year (in shares) | 192,898 | 206,161 | 216,935 |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Equity [Abstract] | |||
Basic weighted-average shares outstanding (in shares) | 199,719 | 212,809 | 224,106 |
Dilutive effect of stock options (in shares) | 2,055 | 2,164 | 2,414 |
Diluted weighted-average shares outstanding (in shares) | 201,774 | 214,973 | 226,520 |
Anti-dilutive effect of weighted average shares (in shares) | 1,500 | 1,000 | 1,100 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Components of Accumulated Other Comprehensive Income (Loss) | ||
Beginning Balance | $ 7,113 | $ 6,815 |
Ending Balance | 6,987 | 7,113 |
Accumulated Other Comprehensive Loss | ||
Components of Accumulated Other Comprehensive Income (Loss) | ||
Beginning Balance | (612) | (789) |
Other comprehensive income (loss) before reclassifications | (38) | 108 |
Reclassified from Accumulated other comprehensive loss | 6 | 69 |
Ending Balance | (644) | (612) |
Pension and Postretirement Benefits Adjustments | ||
Components of Accumulated Other Comprehensive Income (Loss) | ||
Beginning Balance | (516) | (799) |
Other comprehensive income (loss) before reclassifications | (82) | 214 |
Reclassified from Accumulated other comprehensive loss | 0 | 69 |
Ending Balance | (598) | (516) |
Foreign Currency Translation Adjustments | ||
Components of Accumulated Other Comprehensive Income (Loss) | ||
Beginning Balance | (94) | 9 |
Other comprehensive income (loss) before reclassifications | 45 | (103) |
Reclassified from Accumulated other comprehensive loss | 0 | 0 |
Ending Balance | (49) | (94) |
Deferred Gains (Losses) on Hedge Contracts | ||
Components of Accumulated Other Comprehensive Income (Loss) | ||
Beginning Balance | (2) | 1 |
Other comprehensive income (loss) before reclassifications | (1) | (3) |
Reclassified from Accumulated other comprehensive loss | 6 | 0 |
Ending Balance | $ 3 | $ (2) |
Shareholders' Equity - Before a
Shareholders' Equity - Before and After Tax Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Pension and postretirement benefits adjustments, pre-tax: | |||
Unrealized gains (losses), pre-tax | $ (102) | $ 285 | $ 1,148 |
Amortization of net actuarial (gain) loss, pre-tax | (7) | 83 | 150 |
Amortization of prior service cost, pre-tax | 8 | 8 | 7 |
Recognition of prior service credit cost, pre-tax | (7) | (4) | (20) |
Pension and postretirement benefits adjustments, net, pre-tax | (108) | 372 | 1,285 |
Pension and postretirement benefits adjustments, tax: | |||
Unrealized gains (losses), tax (expense) benefit | 25 | (67) | (271) |
Amortization of net actuarial (gain) loss, tax (expense) benefit | 2 | (20) | (34) |
Amortization of prior service cost, tax (expense) benefit | (3) | (2) | (3) |
Recognition of prior service credit, tax (expense) benefit | 2 | 0 | 4 |
Pension and postretirement benefits adjustments, net, tax (expense) benefit | 26 | (89) | (304) |
Pension and postretirement benefits adjustments, after-tax: | |||
Unrealized gains (losses), after-tax | (77) | 218 | 877 |
Amortization of net actuarial (gain) loss, after-tax | (5) | 63 | 116 |
Amortization of prior service cost, after-tax | 5 | 6 | 4 |
Recognition of prior service credit, after-tax | (5) | (4) | (16) |
Pension and postretirement benefits adjustments, net, after-tax | (82) | 283 | 981 |
Foreign currency translation adjustments, pre-tax: | |||
Foreign currency translation adjustments, pre-tax | 45 | (103) | (51) |
Business disposition, pre-tax | 0 | 0 | 14 |
Foreign currency translation adjustments, net, pre-tax | 45 | (103) | (37) |
Foreign currency translation adjustments, tax: | |||
Foreign currency translation adjustments, tax (expense) benefit | 0 | 0 | 0 |
Business disposition, tax (expense) benefit | 0 | 0 | 0 |
Foreign currency translation adjustments, net, tax (expense) benefit | 0 | 0 | 0 |
Foreign currency translation adjustments, after-tax: | |||
Foreign currency translation adjustments, after-tax | 45 | (103) | (51) |
Business disposition, after-tax | 0 | 0 | 14 |
Foreign currency translation adjustments, net, after-tax | 45 | (103) | (37) |
Deferred gains (losses) on hedge contracts, pre-tax: | |||
Current deferrals, pre-tax | (2) | (7) | 3 |
Reclassification adjustments, pre-tax | 8 | 0 | (1) |
Deferred gains (losses) on hedge contracts, net, pre-tax | 6 | (7) | 2 |
Deferred gains (losses) on hedge contracts, tax: | |||
Current deferrals, tax (expense) benefit | 1 | 4 | 0 |
Reclassification adjustments, tax (expense) benefit | (2) | 0 | 0 |
Deferred gains (losses) on hedge contracts, net, tax (expense) benefit | (1) | 4 | 0 |
Deferred gains (losses) on hedge contracts, after-tax: | |||
Current deferrals, after-tax | (1) | (3) | 3 |
Reclassification adjustments, after-tax | 6 | 0 | (1) |
Deferred gains (losses) on hedge contracts, net, after-tax | 5 | (3) | 2 |
Other comprehensive income (loss), pre-tax | (57) | 262 | 1,250 |
Other comprehensive income (loss), tax (expense) benefit | 25 | (85) | (304) |
Total other comprehensive income (loss), net of tax | $ (32) | $ 177 | $ 946 |
Segment and Geographic Data - N
Segment and Geographic Data - Narrative (Details) | 12 Months Ended |
Dec. 30, 2023 segment | |
Operating and reportable business segments | |
Number of operating segments | 6 |
Number of reportable segments | 6 |
Segment and Geographic Data - R
Segment and Geographic Data - Revenue by Segments And Reconciliation Of Segment Profit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Revenues | |||
Revenues | $ 13,683 | $ 12,869 | $ 12,382 |
Reconciliation of segment profit to income from continuing operations before income taxes | |||
Interest expense, net for Manufacturing group | (77) | (107) | (142) |
Intangible asset amortization | (39) | (52) | (51) |
Special charges | (126) | 0 | (25) |
Non-service components of pension and postretirement income, net | 237 | 240 | 159 |
Gain on business disposition | 0 | 0 | 17 |
Income from continuing operations before income taxes | 1,087 | 1,016 | 873 |
Operating Segment | |||
Revenues | |||
Revenues | 13,683 | 12,869 | 12,382 |
Segment Profit | |||
Segment Profit (Loss) | 1,327 | 1,136 | 1,064 |
Reconciling Items | |||
Reconciliation of segment profit to income from continuing operations before income taxes | |||
Corporate expenses and other, net | (143) | (143) | (150) |
LIFO inventory provision | (107) | (71) | (17) |
Intangible asset amortization | (39) | (52) | (51) |
Special charges | (126) | 0 | (25) |
Non-service components of pension and postretirement income, net | 237 | 240 | 159 |
Gain on business disposition | 0 | 0 | 17 |
Textron Aviation | |||
Revenues | |||
Revenues | 5,373 | 5,073 | 4,566 |
Bell | |||
Revenues | |||
Revenues | 3,147 | 3,091 | 3,364 |
Textron Systems | |||
Revenues | |||
Revenues | 1,235 | 1,172 | 1,273 |
Industrial | |||
Revenues | |||
Revenues | 3,841 | 3,465 | 3,130 |
Textron eAviation | |||
Revenues | |||
Revenues | 32 | 16 | 0 |
Finance | |||
Revenues | |||
Revenues | 55 | 52 | 49 |
Manufacturing group | Reconciling Items | |||
Reconciliation of segment profit to income from continuing operations before income taxes | |||
Interest expense, net for Manufacturing group | (62) | (94) | (124) |
Manufacturing group | Textron Aviation | Operating Segment | |||
Revenues | |||
Revenues | 5,373 | 5,073 | 4,566 |
Segment Profit | |||
Segment Profit (Loss) | 649 | 560 | 349 |
Manufacturing group | Bell | Operating Segment | |||
Revenues | |||
Revenues | 3,147 | 3,091 | 3,364 |
Segment Profit | |||
Segment Profit (Loss) | 320 | 282 | 399 |
Manufacturing group | Textron Systems | Operating Segment | |||
Revenues | |||
Revenues | 1,235 | 1,172 | 1,273 |
Segment Profit | |||
Segment Profit (Loss) | 147 | 132 | 178 |
Manufacturing group | Industrial | Operating Segment | |||
Revenues | |||
Revenues | 3,841 | 3,465 | 3,130 |
Segment Profit | |||
Segment Profit (Loss) | 228 | 155 | 120 |
Manufacturing group | Textron eAviation | Operating Segment | |||
Revenues | |||
Revenues | 32 | 16 | 0 |
Segment Profit | |||
Segment Profit (Loss) | (63) | (24) | 0 |
Finance group | |||
Revenues | |||
Revenues | 55 | 52 | 49 |
Finance group | Finance | Operating Segment | |||
Revenues | |||
Revenues | 55 | 52 | 49 |
Segment Profit | |||
Segment Profit (Loss) | $ 46 | $ 31 | $ 18 |
Segment and Geographic Data - A
Segment and Geographic Data - Assets, Capital Expenditures and Depreciation and Amortization by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Other Information by Segment | |||
Assets | $ 16,856 | $ 16,293 | |
Capital Expenditures | 402 | 354 | $ 375 |
Depreciation and Amortization | 395 | 397 | 390 |
Manufacturing group | |||
Other Information by Segment | |||
Assets | 16,195 | 15,629 | |
Depreciation and Amortization | 395 | 396 | 380 |
Corporate | |||
Other Information by Segment | |||
Assets | 3,969 | 3,454 | |
Capital Expenditures | 2 | 0 | 6 |
Depreciation and Amortization | 9 | 10 | 10 |
Textron Aviation | Operating Segment | Manufacturing group | |||
Other Information by Segment | |||
Assets | 4,542 | 4,496 | |
Capital Expenditures | 138 | 138 | 115 |
Depreciation and Amortization | 160 | 152 | 139 |
Bell | Operating Segment | Manufacturing group | |||
Other Information by Segment | |||
Assets | 2,869 | 2,857 | |
Capital Expenditures | 119 | 80 | 92 |
Depreciation and Amortization | 89 | 90 | 87 |
Textron Systems | Operating Segment | Manufacturing group | |||
Other Information by Segment | |||
Assets | 2,008 | 1,989 | |
Capital Expenditures | 48 | 57 | 80 |
Depreciation and Amortization | 41 | 49 | 45 |
Industrial | Operating Segment | Manufacturing group | |||
Other Information by Segment | |||
Assets | 2,520 | 2,555 | |
Capital Expenditures | 91 | 78 | 82 |
Depreciation and Amortization | 89 | 93 | 99 |
Textron eAviation | Operating Segment | Manufacturing group | |||
Other Information by Segment | |||
Assets | 287 | 278 | |
Capital Expenditures | 4 | 1 | 0 |
Depreciation and Amortization | 7 | 2 | 0 |
Finance | Operating Segment | |||
Other Information by Segment | |||
Assets | 661 | 664 | |
Capital Expenditures | 0 | 0 | 0 |
Depreciation and Amortization | $ 0 | $ 1 | $ 10 |
Segment and Geographic Data - S
Segment and Geographic Data - Selected Financial Information by Geographic Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Revenues from External Customers and Long-Lived Assets | |||
Revenues | $ 13,683 | $ 12,869 | $ 12,382 |
Property, plant and equipment, net | 2,477 | 2,523 | |
United States | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenues | 9,305 | 8,702 | 8,572 |
Property, plant and equipment, net | 2,104 | 2,137 | |
Europe | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenues | 1,414 | 1,468 | 1,369 |
Property, plant and equipment, net | 182 | 188 | |
Other international | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenues | 2,964 | 2,699 | $ 2,441 |
Property, plant and equipment, net | $ 191 | $ 198 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 13,683 | $ 12,869 | $ 12,382 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 9,305 | 8,702 | 8,572 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,414 | 1,468 | 1,369 |
Other international | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,964 | 2,699 | 2,441 |
Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 10,750 | 10,035 | 9,182 |
U. S. Government | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,933 | 2,834 | 3,200 |
Textron Aviation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 5,373 | 5,073 | 4,566 |
Textron Aviation | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,873 | 3,520 | 3,424 |
Textron Aviation | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 432 | 579 | 396 |
Textron Aviation | Other international | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,068 | 974 | 746 |
Textron Aviation | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 5,155 | 4,959 | 4,435 |
Textron Aviation | U. S. Government | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 218 | 114 | 131 |
Textron Aviation | Aircraft | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,577 | 3,387 | 3,116 |
Textron Aviation | Aftermarket parts and services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,796 | 1,686 | 1,450 |
Bell | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,147 | 3,091 | 3,364 |
Bell | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,228 | 2,242 | 2,425 |
Bell | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 149 | 139 | 171 |
Bell | Other international | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 770 | 710 | 768 |
Bell | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,407 | 1,284 | 1,328 |
Bell | U. S. Government | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,740 | 1,807 | 2,036 |
Bell | Military aircraft and support programs | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,701 | 1,740 | 2,073 |
Bell | Commercial helicopters, parts and services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,446 | 1,351 | 1,291 |
Textron Systems | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,235 | 1,172 | 1,273 |
Textron Systems | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,103 | 1,054 | 1,126 |
Textron Systems | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 54 | 42 | 44 |
Textron Systems | Other international | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 78 | 76 | 103 |
Textron Systems | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 282 | 274 | 257 |
Textron Systems | U. S. Government | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 953 | 898 | 1,016 |
Industrial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,841 | 3,465 | 3,130 |
Industrial | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,067 | 1,862 | 1,570 |
Industrial | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 766 | 699 | 757 |
Industrial | Other international | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,008 | 904 | 803 |
Industrial | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,819 | 3,450 | 3,113 |
Industrial | U. S. Government | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 22 | 15 | 17 |
Industrial | Fuel systems and functional components | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,954 | 1,771 | 1,735 |
Industrial | Specialized vehicles | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,887 | 1,694 | 1,395 |
Textron eAviation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 32 | 16 | 0 |
Textron eAviation | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 17 | 7 | 0 |
Textron eAviation | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 11 | 6 | 0 |
Textron eAviation | Other international | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4 | 3 | 0 |
Textron eAviation | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 32 | 16 | 0 |
Textron eAviation | U. S. Government | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Finance | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 55 | 52 | 49 |
Finance | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 17 | 17 | 27 |
Finance | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2 | 3 | 1 |
Finance | Other international | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 36 | 32 | 21 |
Finance | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 55 | 52 | 49 |
Finance | U. S. Government | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligations (Details) $ in Billions | Dec. 30, 2023 USD ($) |
Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 13.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31 | |
Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation percent | 86% |
Remaining performance obligation, expected timing of satisfaction, period | 24 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-04 | |
Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation percent | 12% |
Remaining performance obligation, expected timing of satisfaction, period | 24 months |
Revenues - Contract Assets and
Revenues - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Contract Assets and Liabilities | |||
Contract assets | $ 513 | $ 680 | |
Contract liabilities | 1,800 | 1,500 | |
Revenue recognized included in contract liabilities | $ 953 | $ 873 | $ 600 |
Share-Based Compensation - Gene
Share-Based Compensation - General Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Share-Based Compensation | ||
Compensation costs associated with unvested awards not recognized | $ 25 | |
Recognize compensation expense for unvested awards subject only to service conditions over a weighted average period | 2 years | |
Stock appreciation rights | ||
Share-Based Compensation | ||
Awards outstanding (in shares) | 491,331 | |
Weighted-average exercise price (in dollars per share) | $ 56.09 | |
Weighted-average remaining contractual life | 5 years 10 months 24 days | |
Intrinsic value | $ 12 | $ 11 |
2015 Long Term Incentive Plan | ||
Share-Based Compensation | ||
Maximum shares awarded for issuance | 17,000,000 | |
2015 Long Term Incentive Plan | Stock options | ||
Share-Based Compensation | ||
Maximum shares awarded for issuance | 17,000,000 | |
2015 Long Term Incentive Plan | Restricted stock, restricted stock units, performance stock, performance share units and other awards | ||
Share-Based Compensation | ||
Maximum shares awarded for issuance | 4,250,000 |
Share-Based Compensation - Comp
Share-Based Compensation - Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Compensation expense | $ 94 | $ 66 | $ 138 |
Income tax benefit | (23) | (16) | (33) |
Total compensation expense included in net income | $ 71 | $ 50 | $ 105 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Compensation | |||
Compensation expense | $ 94 | $ 66 | $ 138 |
Stock options | |||
Share-Based Compensation | |||
Compensation expense | $ 23 | $ 22 | $ 21 |
Maximum term of options | 10 years | ||
Vesting period | 3 years | ||
Weighted-average assumptions used in Black-Scholes option-pricing model | |||
Fair value of options at grant date (in dollars per share) | $ 23.83 | $ 19.95 | $ 15.05 |
Dividend yield | 0.10% | 0.10% | 0.20% |
Expected volatility | 29.40% | 29.20% | 33.60% |
Risk-free interest rate | 4.20% | 1.90% | 0.70% |
Expected term (in years) | 4 years 9 months 18 days | 4 years 9 months 18 days | 4 years 8 months 12 days |
Number of Options | |||
Outstanding at beginning of period (in shares) | 8,310 | ||
Granted (in shares) | 1,026 | ||
Exercised (in shares) | (1,659) | ||
Forfeited or expired (in shares) | (162) | ||
Outstanding at end of period (in shares) | 7,515 | 8,310 | |
Exercisable at end of period (in shares) | 5,347 | ||
Weighted-Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 50.25 | ||
Granted (in dollars per share) | 73.19 | ||
Exercised (in dollars per share) | (45.14) | ||
Forfeited or expired (in dollars per share) | (62.11) | ||
Outstanding at end of period (in dollars per share) | 54.25 | $ 50.25 | |
Exercisable at end of period (in dollars per share) | $ 48.85 | ||
Additional general disclosures | |||
Aggregate intrinsic value of outstanding options | $ 197 | ||
Weighted-average remaining contractual life of outstanding options | 5 years 6 months | ||
Aggregate intrinsic value of exercisable options | $ 169 | ||
Weighted-average remaining contractual life of exercisable options | 4 years 6 months | ||
Total intrinsic value of options exercised | $ 50 | $ 32 | $ 63 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Units Payable in Stock | |||
Number of Shares/Units | |||
Outstanding at beginning of period, nonvested (in shares) | 525 | ||
Granted (in shares) | 125 | ||
Vested (in shares) | (235) | ||
Forfeited (in shares) | (19) | ||
Outstanding at end of period, nonvested (in shares) | 396 | 525 | |
Weighted- Average Grant Date Fair Value | |||
Outstanding at beginning of period, nonvested (in dollars per share) | $ 52.99 | ||
Granted (in dollars per share) | 71.86 | ||
Vested (in dollars per share) | (47.73) | ||
Forfeited (in dollars per share) | (60.09) | ||
Outstanding at end of period, nonvested (in dollars per share) | $ 61.73 | $ 52.99 | |
Units Payable in Cash | |||
Number of Shares/Units | |||
Outstanding at beginning of period, nonvested (in shares) | 1,086 | ||
Granted (in shares) | 247 | ||
Vested (in shares) | (467) | ||
Forfeited (in shares) | (56) | ||
Outstanding at end of period, nonvested (in shares) | 810 | 1,086 | |
Weighted- Average Grant Date Fair Value | |||
Outstanding at beginning of period, nonvested (in dollars per share) | $ 53.26 | ||
Granted (in dollars per share) | 73.21 | ||
Vested (in dollars per share) | (45.95) | ||
Forfeited (in dollars per share) | (60.24) | ||
Outstanding at end of period, nonvested (in dollars per share) | $ 63.06 | $ 53.26 | |
Restricted Stock Units | |||
Fair value | |||
Fair value of awards vested | $ 45 | $ 25 | $ 20 |
Cash paid | $ 34 | $ 17 | $ 13 |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Share Units (Details) - Performance Share Units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Compensation | |||
Performance share units performance period | 3 years | ||
Number of Units | |||
Outstanding at beginning of period, nonvested (in shares) | 427 | ||
Granted (in shares) | 209 | ||
Vested (in shares) | (242) | ||
Forfeited (in shares) | (28) | ||
Outstanding at end of period, nonvested (in shares) | 366 | 427 | |
Weighted- Average Grant Date Fair Value | |||
Outstanding at beginning of period, nonvested (in dollars per share) | $ 59.51 | ||
Granted (in dollars per share) | 73.19 | ||
Vested (in dollars per share) | (51.56) | ||
Forfeited (in dollars per share) | (63.72) | ||
Outstanding at end of period, nonvested (in dollars per share) | $ 72.23 | $ 59.51 | |
Fair value | |||
Fair value of awards vested | $ 19 | $ 19 | $ 18 |
Cash paid | $ 27 | $ 15 | $ 6 |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Retirement Plans | |||
Cost recognized for defined contribution plans | $ 154 | $ 140 | $ 131 |
Additional percentage of eligible compensation contributed annually by employer to defined contribution plan for employees hired after January 1, 2010 | 4% | ||
Accumulated benefit obligation | $ 6,900 | $ 6,600 | |
Trend rate for medical and prescription drug cost | 6.50% | 6.50% | |
Rate to which medical and prescription drug cost trend rates will gradually decline | 4.75% | ||
Year that the rates reach the rate where we assume they will remain | 2030 | ||
Unfunded | |||
Retirement Plans | |||
Accumulated benefit obligation | $ 336 | $ 326 |
Retirement Plans - Net Periodic
Retirement Plans - Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Other changes in plan assets and benefit obligations recognized in OCI | |||
Current year actuarial loss (gain) | $ 102 | $ (285) | $ (1,148) |
Amortization of net actuarial gain (loss) | 7 | (83) | (150) |
Amortization of prior service credit (cost) | (8) | (8) | (7) |
Cost associated with defined the defined contribution component | 154 | 140 | 131 |
Pension Benefits | |||
Net periodic benefit cost (income) | |||
Service cost | 67 | 108 | 116 |
Interest cost | 364 | 272 | 252 |
Expected return on plan assets | (610) | (609) | (573) |
Amortization of prior service cost (credit) | 11 | 13 | 12 |
Amortization of net actuarial loss (gain) | 1 | 87 | 152 |
Net periodic benefit cost (income) | (167) | (129) | (41) |
Other changes in plan assets and benefit obligations recognized in OCI | |||
Current year actuarial loss (gain) | 109 | (246) | (1,135) |
Current year prior service cost | 7 | 4 | 20 |
Amortization of net actuarial gain (loss) | (1) | (87) | (152) |
Amortization of prior service credit (cost) | (11) | (13) | (12) |
Total recognized in OCI, before taxes | 104 | (342) | (1,279) |
Total recognized in net periodic benefit cost (income) and OCI | (63) | (471) | (1,320) |
Pension Benefits | United States | |||
Other changes in plan assets and benefit obligations recognized in OCI | |||
Cost associated with defined the defined contribution component | 11 | 11 | 11 |
Postretirement Benefits Other than Pensions | |||
Net periodic benefit cost (income) | |||
Service cost | 2 | 2 | 3 |
Interest cost | 8 | 6 | 5 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (3) | (5) | (5) |
Amortization of net actuarial loss (gain) | (8) | (4) | (2) |
Net periodic benefit cost (income) | (1) | (1) | 1 |
Other changes in plan assets and benefit obligations recognized in OCI | |||
Current year actuarial loss (gain) | (7) | (39) | (13) |
Current year prior service cost | 0 | 0 | 0 |
Amortization of net actuarial gain (loss) | 8 | 4 | 2 |
Amortization of prior service credit (cost) | 3 | 5 | 5 |
Total recognized in OCI, before taxes | 4 | (30) | (6) |
Total recognized in net periodic benefit cost (income) and OCI | $ 3 | $ (31) | $ (5) |
Retirement Plans - Obligations
Retirement Plans - Obligations and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Pension Benefits | |||
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | $ 6,848 | $ 9,339 | |
Service cost | 67 | 108 | $ 116 |
Interest cost | 364 | 272 | 252 |
Plan participants’ contributions | 0 | 0 | |
Actuarial losses (gains) | 330 | (2,373) | |
Benefits paid | (444) | (448) | |
Plan amendment | 7 | 1 | |
Foreign exchange rate changes and other | 33 | (51) | |
Projected benefit obligation at end of year | 7,205 | 6,848 | 9,339 |
Change in fair value of plan assets | |||
Balance at beginning of year | 7,943 | 9,947 | |
Actual return on plan assets | 832 | (1,520) | |
Employer contributions | 36 | 37 | |
Benefits paid | (444) | (448) | |
Foreign exchange rate changes and other | 46 | (73) | |
Balance at end of year | 8,413 | 7,943 | 9,947 |
Funded status at end of year | 1,208 | 1,095 | |
Postretirement Benefits Other than Pensions | |||
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 150 | 202 | |
Service cost | 2 | 2 | 3 |
Interest cost | 8 | 6 | 5 |
Plan participants’ contributions | 3 | 4 | |
Actuarial losses (gains) | (7) | (40) | |
Benefits paid | (20) | (24) | |
Plan amendment | 0 | 0 | |
Foreign exchange rate changes and other | 0 | 0 | |
Projected benefit obligation at end of year | 136 | 150 | $ 202 |
Change in fair value of plan assets | |||
Funded status at end of year | $ (136) | $ (150) |
Retirement Plans - Amounts Reco
Retirement Plans - Amounts Recognized in the Balance Sheets (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Pension Benefits | ||
Amounts recognized in our balance sheets | ||
Non-current assets | $ 1,569 | $ 1,440 |
Current liabilities | (28) | (28) |
Non-current liabilities | (333) | (317) |
Recognized in Accumulated other comprehensive loss, pre-tax: | ||
Net loss (gain) | 730 | 623 |
Prior service cost (credit) | 42 | 46 |
Postretirement Benefits Other than Pensions | ||
Amounts recognized in our balance sheets | ||
Non-current assets | 0 | 0 |
Current liabilities | (17) | (19) |
Non-current liabilities | (119) | (131) |
Recognized in Accumulated other comprehensive loss, pre-tax: | ||
Net loss (gain) | (69) | (70) |
Prior service cost (credit) | $ (3) | $ (6) |
Retirement Plans - Plans with A
Retirement Plans - Plans with Accumulated/Projected Benefit Obligations Exceeding Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Pension plans with accumulated benefit obligations exceeding the fair value of plan assets | ||
Accumulated benefit obligation | $ 336 | $ 326 |
Fair value of plan assets | 0 | 0 |
Pension plans with projected benefit obligation exceeding the fair value of plan assets | ||
Projected benefit obligation | 652 | 597 |
Fair value of plan assets | $ 292 | $ 252 |
Retirement Plans - Weighted-ave
Retirement Plans - Weighted-average Assumptions (Details) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Pension Benefits | |||
Net periodic benefit cost | |||
Discount rate | 5.51% | 2.99% | 2.62% |
Expected long-term rate of return on assets | 7.14% | 7.10% | 7.10% |
Rate of compensation increase | 3.97% | 3.95% | 3.49% |
Benefit obligations at year-end | |||
Discount rate | 5.19% | 5.51% | 2.99% |
Rate of compensation increase | 3.97% | 3.97% | 3.95% |
Interest crediting rate for cash balance plans | 0.0525 | 0.0525 | 0.0525 |
Postretirement Benefits Other than Pensions | |||
Net periodic benefit cost | |||
Discount rate | 5.70% | 2.80% | 2.35% |
Benefit obligations at year-end | |||
Discount rate | 5.40% | 5.70% | 2.80% |
Retirement Plans - Target Alloc
Retirement Plans - Target Allocation Ranges (Details) - Pension Benefits | Dec. 30, 2023 |
Minimum | Domestic equity securities | U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 17% |
Minimum | International equity securities | U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 6% |
Minimum | Global equities | U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 5% |
Minimum | Debt securities | U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 27% |
Minimum | Debt securities | Non-U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 25% |
Minimum | Real estate | U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 7% |
Minimum | Real estate | Non-U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 0% |
Minimum | Private investment partnerships | U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 7% |
Minimum | Equity securities | Non-U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 55% |
Maximum | Domestic equity securities | U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 33% |
Maximum | International equity securities | U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 17% |
Maximum | Global equities | U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 17% |
Maximum | Debt securities | U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 38% |
Maximum | Debt securities | Non-U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 45% |
Maximum | Real estate | U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 13% |
Maximum | Real estate | Non-U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 13% |
Maximum | Private investment partnerships | U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 13% |
Maximum | Equity securities | Non-U.S. Plan Assets | |
Target allocation ranges | |
Target plan asset allocations | 75% |
Retirement Plans - Fair Value o
Retirement Plans - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Change in fair value of plan assets | |||
Valuation of owned properties period | 3 years | ||
Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | $ 8,413 | $ 7,943 | $ 9,947 |
Level 1 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 5,006 | 4,393 | |
Level 2 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 753 | 905 | |
Level 3 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 508 | 569 | |
Not Subject to Leveling | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 2,146 | 2,076 | |
Cash and equivalents | Level 1 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 231 | 378 | |
Cash and equivalents | Level 2 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 1 | 3 | |
Cash and equivalents | Level 3 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
Cash and equivalents | Not Subject to Leveling | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
Domestic equity securities | Level 1 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 2,754 | 2,304 | |
Domestic equity securities | Level 2 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
Domestic equity securities | Level 3 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
Domestic equity securities | Not Subject to Leveling | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 299 | 225 | |
International equity securities | Level 1 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 1,061 | 1,171 | |
International equity securities | Level 2 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
International equity securities | Level 3 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
International equity securities | Not Subject to Leveling | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 281 | 230 | |
Mutual funds | Level 1 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 117 | 150 | |
Mutual funds | Level 2 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
Mutual funds | Level 3 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
National, state and local governments | Level 1 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 679 | 332 | |
National, state and local governments | Level 2 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 142 | 239 | |
National, state and local governments | Level 3 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
National, state and local governments | Not Subject to Leveling | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 88 | 27 | |
Corporate debt | Level 1 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 164 | 58 | |
Corporate debt | Level 2 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 610 | 663 | |
Corporate debt | Level 3 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
Corporate debt | Not Subject to Leveling | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 90 | 129 | |
Private investment partnerships | Level 1 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
Private investment partnerships | Level 2 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
Private investment partnerships | Level 3 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
Private investment partnerships | Not Subject to Leveling | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 1,000 | 1,070 | |
Real estate | Level 1 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
Real estate | Level 2 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 0 | 0 | |
Real estate | Level 3 | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 508 | 569 | $ 599 |
Real estate | Level 3 | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | 508 | 569 | |
Real estate | Not Subject to Leveling | Pension Benefits | |||
Change in fair value of plan assets | |||
Fair value of total pension plan assets | $ 388 | $ 395 |
Retirement Plans - Reconciliati
Retirement Plans - Reconciliation of Fair Value Measurements of Level 3 Valuation (Details) - Real estate - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Reconciliation for fair value measurements that use significant unobservable inputs (Level 3) | ||
Balance at beginning of year | $ 569 | $ 599 |
Unrealized losses, net | (60) | (10) |
Realized gains, net | 10 | 11 |
Purchases, sales and settlements, net | (11) | (31) |
Balance at end of year | $ 508 | $ 569 |
Retirement Plans - Estimated Fu
Retirement Plans - Estimated Future Cash Flow Impact (Details) $ in Millions | Dec. 30, 2023 USD ($) |
Retirement Plans | |
Expected contributions to our non-qualified plans and foreign plans | $ 50 |
Pension Benefits | |
Estimated future benefit payments | |
2024 | 455 |
2025 | 463 |
2026 | 471 |
2027 | 480 |
2028 | 487 |
2029-2033 | 2,501 |
Postretirement Benefits Other than Pensions | |
Estimated future benefit payments | |
2024 | 17 |
2025 | 17 |
2026 | 16 |
2027 | 15 |
2028 | 14 |
2029-2033 | $ 56 |
Special Charges - Special Charg
Special Charges - Special Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 21 Months Ended | ||
Dec. 30, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 01, 2022 | |
Special Charges [Line Items] | |||||
Restructuring charges | $ 39 | ||||
Asset Impairments | 88 | $ 2 | $ 13 | ||
Special charges | 126 | $ 0 | 25 | ||
Severance Costs | |||||
Special Charges [Line Items] | |||||
Restructuring charges | 39 | ||||
2023 Restructuring Plan | |||||
Special Charges [Line Items] | |||||
Asset Impairments | 87 | ||||
Special charges | 126 | ||||
2023 Restructuring Plan | Severance Costs | |||||
Special Charges [Line Items] | |||||
Restructuring charges | $ 39 | 39 | |||
2023 Restructuring Plan | Contract Terminations and Other | |||||
Special Charges [Line Items] | |||||
Restructuring charges | 0 | ||||
2023 Restructuring Plan | Industrial | |||||
Special Charges [Line Items] | |||||
Asset Impairments | 87 | ||||
Special charges | 108 | ||||
2023 Restructuring Plan | Industrial | Severance Costs | |||||
Special Charges [Line Items] | |||||
Restructuring charges | 21 | ||||
2023 Restructuring Plan | Industrial | Contract Terminations and Other | |||||
Special Charges [Line Items] | |||||
Restructuring charges | 0 | ||||
2023 Restructuring Plan | Bell | |||||
Special Charges [Line Items] | |||||
Asset Impairments | 0 | ||||
Special charges | 13 | ||||
2023 Restructuring Plan | Bell | Severance Costs | |||||
Special Charges [Line Items] | |||||
Restructuring charges | 13 | ||||
2023 Restructuring Plan | Bell | Contract Terminations and Other | |||||
Special Charges [Line Items] | |||||
Restructuring charges | 0 | ||||
2023 Restructuring Plan | Textron Systems | |||||
Special Charges [Line Items] | |||||
Asset Impairments | 0 | ||||
Special charges | 5 | ||||
2023 Restructuring Plan | Textron Systems | Severance Costs | |||||
Special Charges [Line Items] | |||||
Restructuring charges | 5 | ||||
2023 Restructuring Plan | Textron Systems | Contract Terminations and Other | |||||
Special Charges [Line Items] | |||||
Restructuring charges | $ 0 | ||||
COVID-19 Restructuring Plan | |||||
Special Charges [Line Items] | |||||
Asset Impairments | 12 | ||||
Special charges | 25 | $ 133 | |||
COVID-19 Restructuring Plan | Severance Costs | |||||
Special Charges [Line Items] | |||||
Restructuring charges | 4 | ||||
COVID-19 Restructuring Plan | Contract Terminations and Other | |||||
Special Charges [Line Items] | |||||
Restructuring charges | 9 | ||||
COVID-19 Restructuring Plan | Industrial | |||||
Special Charges [Line Items] | |||||
Asset Impairments | 12 | ||||
Special charges | 25 | ||||
COVID-19 Restructuring Plan | Industrial | Severance Costs | |||||
Special Charges [Line Items] | |||||
Restructuring charges | 4 | ||||
COVID-19 Restructuring Plan | Industrial | Contract Terminations and Other | |||||
Special Charges [Line Items] | |||||
Restructuring charges | $ 9 |
Special Charges - Narrative (De
Special Charges - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | ||
Dec. 30, 2023 USD ($) position | Jun. 29, 2024 | Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Special Charges [Line Items] | ||||||
Restructuring charges | $ 39 | |||||
Fixed and intangible asset impairment charges | 88 | $ 2 | $ 13 | |||
Special charges | 126 | $ 0 | 25 | |||
Specialized vehicles | ||||||
Special Charges [Line Items] | ||||||
Fixed and intangible asset impairment charges | $ 75 | |||||
Kautex | ||||||
Special Charges [Line Items] | ||||||
Fixed asset impairment charges | $ 12 | |||||
Severance Costs | ||||||
Special Charges [Line Items] | ||||||
Restructuring charges | 39 | |||||
2023 Restructuring Plan | ||||||
Special Charges [Line Items] | ||||||
Number of positions expected to be eliminated | position | 725 | |||||
Fixed and intangible asset impairment charges | 87 | |||||
Special charges | 126 | |||||
2023 Restructuring Plan | Industrial | ||||||
Special Charges [Line Items] | ||||||
Fixed and intangible asset impairment charges | 87 | |||||
Special charges | 108 | |||||
2023 Restructuring Plan | Forecast | ||||||
Special Charges [Line Items] | ||||||
Percentage of workforce reduction | 2% | |||||
2023 Restructuring Plan | Severance Costs | ||||||
Special Charges [Line Items] | ||||||
Restructuring charges | $ 39 | 39 | ||||
2023 Restructuring Plan | Severance Costs | Industrial | ||||||
Special Charges [Line Items] | ||||||
Restructuring charges | $ 21 | |||||
COVID-19 Restructuring Plan | ||||||
Special Charges [Line Items] | ||||||
Fixed and intangible asset impairment charges | 12 | |||||
Special charges | 25 | $ 133 | ||||
COVID-19 Restructuring Plan | Industrial | ||||||
Special Charges [Line Items] | ||||||
Fixed and intangible asset impairment charges | 12 | |||||
Special charges | 25 | |||||
COVID-19 Restructuring Plan | Severance Costs | ||||||
Special Charges [Line Items] | ||||||
Restructuring charges | 4 | |||||
COVID-19 Restructuring Plan | Severance Costs | Industrial | ||||||
Special Charges [Line Items] | ||||||
Restructuring charges | $ 4 |
Special Charges - Restructuring
Special Charges - Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Restructuring reserve activity | ||
Balance at beginning of period | $ 12 | $ 28 |
Provision for plan | 39 | |
Cash paid | (5) | (15) |
Foreign currency translation | 1 | (1) |
Balance at end of period | 47 | 12 |
Severance Costs | ||
Restructuring reserve activity | ||
Balance at beginning of period | 5 | 19 |
Provision for plan | 39 | |
Cash paid | (3) | (13) |
Foreign currency translation | 1 | (1) |
Balance at end of period | 42 | 5 |
Contract Terminations and Other | ||
Restructuring reserve activity | ||
Balance at beginning of period | 7 | 9 |
Provision for plan | 0 | |
Cash paid | (2) | (2) |
Foreign currency translation | 0 | 0 |
Balance at end of period | $ 5 | $ 7 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 905 | $ 810 | $ 699 |
Non-U.S. | 182 | 206 | 174 |
Income from continuing operations before income taxes | $ 1,087 | $ 1,016 | $ 873 |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Current expense: | |||
Federal | $ 267 | $ 272 | $ 41 |
State | 18 | 33 | 15 |
Non-U.S. | 72 | 69 | 47 |
Current income tax expense, total | 357 | 374 | 103 |
Deferred expense (benefit): | |||
Federal | (181) | (182) | 35 |
State | 1 | (29) | (10) |
Non-U.S. | (12) | (9) | (2) |
Deferred income tax expense, total | (192) | (220) | 23 |
Income tax expense | $ 165 | $ 154 | $ 126 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Federal statutory income tax rate to effective income tax rate for continuing operations | |||
U.S. Federal statutory income tax rate | 21% | 21% | 21% |
Increase (decrease) resulting from: | |||
Research and developments tax credits | (4.70%) | (5.00%) | (7.00%) |
Foreign-derived intangible income deduction | (3.20%) | (2.50%) | 0% |
Non-U.S. tax rate differential and foreign tax credits | 1.50% | 1.80% | 1.30% |
State income taxes (net of federal impact) | 1.40% | 0.30% | 0.50% |
Other, net | (0.80%) | (0.40%) | (1.40%) |
Effective income tax rate | 15.20% | 15.20% | 14.40% |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 231 | $ 207 | $ 183 |
Additions for tax positions related to current year | 16 | 24 | 21 |
Additions for tax positions of prior years | 3 | 0 | 10 |
Reductions for settlements and expiration of statute of limitations | 0 | 0 | (3) |
Reductions for tax positions of prior years | (28) | 0 | (4) |
Balance at end of year | $ 222 | $ 231 | $ 207 |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Income Tax Examination [Line Items] | ||
Capitalized research and development expenditures | $ 520 | $ 319 |
Accrued liabilities | 228 | 209 |
U.S. operating loss and tax credit carryforwards | 216 | 257 |
Obligation for pension and postretirement benefits | 123 | 117 |
Deferred compensation | 103 | 108 |
Operating lease liabilities | 102 | 102 |
Non-U.S. operating loss and tax credit carryforwards | 73 | 53 |
Prepaid pension benefits | (387) | (348) |
Property, plant and equipment, principally depreciation | (211) | (222) |
Amortization of goodwill and other intangibles | (185) | (194) |
Operating lease right-of-use assets | (99) | (99) |
Valuation allowance on deferred tax assets | (82) | (99) |
Other leasing transactions, principally leveraged leases | (47) | (53) |
Other, net | (5) | (22) |
Deferred taxes, net | 349 | $ 128 |
U.S. | ||
Income Tax Examination [Line Items] | ||
Operating loss and tax credit carryforward benefits subject to expiration | 179 | |
Operating loss and tax credit carryforward benefits that may be carried forward indefinitely | 37 | |
Non-U.S. | ||
Income Tax Examination [Line Items] | ||
Operating loss and tax credit carryforward benefits that may be carried forward indefinitely | $ 68 |
Income Taxes - Breakdown of Def
Income Taxes - Breakdown of Deferred Taxes (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Breakdown of deferred taxes | ||
Deferred taxes, net | $ 349 | $ 128 |
Manufacturing group | ||
Breakdown of deferred taxes | ||
Deferred tax assets, net of valuation allowance | 443 | 223 |
Deferred tax liabilities | (56) | (52) |
Finance group | ||
Breakdown of deferred taxes | ||
Deferred tax liabilities | $ (38) | $ (43) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Billions | Dec. 30, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Unremitted earnings in foreign subsidiaries | $ 1.6 | $ 1.6 |
Commitments and Contingencies -
Commitments and Contingencies - Letter of Credit (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Aggregate amount of outstanding letter of credit arrangements and surety bonds | $ 338 | $ 285 |
Commitments and Contingencies_2
Commitments and Contingencies - Environmental Remediation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Environmental Remediation | |||
Environmental Loss Contingency, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag | environmental reserves | ||
Environmental liabilities | |||
Environmental Remediation | |||
Environmental reserves | $ 74 | ||
Estimated period over which accrued environmental remediation liabilities are likely to be paid | 10 years | ||
Accrued environmental remediation liabilities classified as current liabilities | $ 16 | ||
Expense, net of recoveries received, to evaluate and remediate contaminated sites | 8 | $ 9 | $ 6 |
Environmental liabilities | Minimum | |||
Environmental Remediation | |||
Potential environmental liabilities | 40 | ||
Environmental liabilities | Maximum | |||
Environmental Remediation | |||
Potential environmental liabilities | $ 145 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Manufacturing group | |||
Supplemental Cash Flow Information [Line Items] | |||
Interest paid | $ 110 | $ 110 | $ 128 |
Net income taxes paid | 338 | 332 | 72 |
Finance group | |||
Supplemental Cash Flow Information [Line Items] | |||
Interest paid | 12 | 13 | 17 |
Net income taxes paid | $ 14 | $ 24 | $ 21 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Allowance for credit losses on accounts receivable | |||
Valuation and Qualifying Accounts | |||
Balance at beginning of year | $ 24 | $ 24 | $ 36 |
Provision (reversal) for credit losses | 7 | 2 | (1) |
Deductions from reserves | (5) | (2) | (11) |
Balance at end of year | 26 | 24 | 24 |
Allowance for credit losses on finance receivables | |||
Valuation and Qualifying Accounts | |||
Balance at beginning of year | 24 | 25 | 35 |
Provision (reversal) for credit losses | (18) | (4) | (9) |
Charge-offs | 0 | 0 | (3) |
Recoveries | 18 | 3 | 2 |
Balance at end of year | 24 | 24 | 25 |
Inventory FIFO reserves | |||
Valuation and Qualifying Accounts | |||
Balance at beginning of year | 350 | 370 | 357 |
Charged to costs and expenses | 63 | 21 | 40 |
Deductions from reserves | (23) | (41) | (27) |
Balance at end of year | $ 390 | $ 350 | $ 370 |