Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 29, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______.

Commission File Number 1-5480

Textron Inc.

(Exact name of registrant as specified in its charter)


Delaware						05-0315468
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

40 Westminster Street, Providence, RI						02903
(Address of principal executive offices)						(Zip code)

(401) 421-2800

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol (s)	Name of each exchange on which registered
Common stock, $0.125 par value	TXT	New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

As of July 12, 2024, there were 187,362,550 shares of common stock outstanding.

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TEXTRON INC.

Index to Form 10-Q

For the Quarterly Period Ended June 29, 2024


		Page
PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Statements of Operations (Unaudited)	3

	Consolidated Statements of Comprehensive Income (Unaudited)	4

	Consolidated Balance Sheets (Unaudited)	5

	Consolidated Statements of Cash Flows (Unaudited)	6

	Notes to the Consolidated Financial Statements (Unaudited)	8

	Note 1. Basis of Presentation	8
	Note 2. Accounts Receivable and Finance Receivables	8
	Note 3. Inventories	10
	Note 4. Accounts Payable and Warranty Liability	10
	Note 5. Leases	11
	Note 6. Derivative Instruments and Fair Value Measurements	12
	Note 7. Shareholders’ Equity	13
	Note 8. Segment Information	16
	Note 9. Revenues	16

	Note 1 0 . Retirement Plans	18
	Note 1 1 . Special Charges	18
	Note 1 2 . Income Taxes	19
	Note 1 3 . Commitments and Contingencies	19

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30

Item 4.	Controls and Procedures	30

PART II.	OTHER INFORMATION



Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31

Item 5.	Other Information	31

Item 6.	Exhibits	31

	Signatures	32

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

TEXTRON INC.

Consolidated Statements of Operations (Unaudited)


	Three Months Ended				Six Months Ended
(In millions, except per share amounts)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Revenues
Manufacturing product revenues	$	2,842	$	2,917	$	5,274	$	5,467
Manufacturing service revenues	673		489		1,361		951
Finance revenues	12		18		27		30
Total revenues	3,527		3,424		6,662		6,448
Costs, expenses and other
Cost of products sold	2,382		2,465		4,451		4,641
Cost of services sold	557		381		1,102		736
Selling and administrative expense	293		289		609		594
Interest expense, net	25		19		45		39
Special charges	13		—		27		—
Non-service components of pension and postretirement income, net	(66)		(59)		(132)		(118)

Total costs, expenses and other	3,204		3,095		6,102		5,892
Income from continuing operations before income taxes	323		329		560		556
Income tax expense	63		66		99		102
Income from continuing operations	260		263		461		454
Loss from discontinued operations	(1)		—		(1)		—
Net income	$	259	$	263	$	460	$	454
Basic earnings per share
Continuing operations	$	1.37	$	1.31	$	2.41	$	2.24


Diluted Earnings per share
Continuing operations	$	1.35	$	1.30	$	2.38	$	2.22

See Notes to the Consolidated Financial Statements.

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TEXTRON INC.

Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Net income	$	259	$	263	$	460	$	454
Other comprehensive income (loss), net of tax
Pension and postretirement benefits adjustments, net of reclassifications	1		—		2		—
Foreign currency translation adjustments	(14)		4		(47)		32
Deferred gains (losses) on hedge contracts, net of reclassifications	1		8		(4)		6
Other comprehensive income (loss)	(12)		12		(49)		38
Comprehensive income	$	247	$	275	$	411	$	492

See Notes to the Consolidated Financial Statements.

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TEXTRON INC.

Consolidated Balance Sheets (Unaudited)


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

See Notes to the Consolidated Financial Statements.

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TEXTRON INC.

Consolidated Statements of Cash Flows (Unaudited)

For the Six Months Ended June 29, 2024 and July 1, 2023, respectively


	Consolidated
(In millions)	2024		2023
Cash flows from operating activities
Income from continuing operations	$	461	$	454
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Non-cash items:
Depreciation and amortization	178		193
Deferred income taxes	(34)		(77)


Other, net	61		66
Changes in assets and liabilities:
Accounts receivable, net	10		(97)
Inventories	(467)		(553)
Other assets	167		252
Accounts payable	107		207
Other liabilities	(46)		116
Income taxes, net	10		14
Pension, net	(112)		(102)
Captive finance receivables, net	7		(15)
Other operating activities, net	19		2
Net cash provided by operating activities of continuing operations	361		460
Net cash used in operating activities of discontinued operations	(1)		(1)
Net cash provided by operating activities	360		459
Cash flows from investing activities
Capital expenditures	(140)		(145)
Net cash used in business acquisitions	(13)		—
Net proceeds from corporate-owned life insurance policies	26		38
Proceeds from sale of property, plant and equipment	3		—

Finance receivables repaid	31		19
Finance receivables originated	(18)		—
Other investing activities, net	—		2
Net cash used in investing activities	(111)		(86)
Cash flows from financing activities




Principal payments on long-term debt and nonrecourse debt	(374)		(34)
Purchases of Textron common stock	(675)		(650)
Dividends paid	(8)		(8)
Proceeds from options exercised	73		31
Other financing activities, net	(25)		(5)
Net cash used in financing activities	(1,009)		(666)
Effect of exchange rate changes on cash and equivalents	(10)		8
Net decrease in cash and equivalents	(770)		(285)
Cash and equivalents at beginning of period	2,181		2,035
Cash and equivalents at end of period	$	1,411	$	1,750

See Notes to the Consolidated Financial Statements.

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TEXTRON INC.

Consolidated Statements of Cash Flows (Unaudited) (Continued)

For the Six Months Ended June 29, 2024 and July 1, 2023, respectively


	Manufacturing Group				Finance Group
(In millions)	2024		2023		2024		2023
Cash flows from operating activities
Income from continuing operations	$	441	$	438	$	20	$	16
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Non-cash items:
Depreciation and amortization	178		193		—		—
Deferred income taxes	(34)		(77)		—		—


Other, net	73		69		(12)		(3)
Changes in assets and liabilities:
Accounts receivable, net	10		(97)		—		—
Inventories	(467)		(553)		—		—
Other assets	168		246		(1)		6
Accounts payable	107		207		—		—
Other liabilities	(42)		125		(4)		(9)
Income taxes, net	12		16		(2)		(2)
Pension, net	(112)		(102)		—		—

Other operating activities, net	19		2		—		—
Net cash provided by operating activities of continuing operations	353		467		1		8
Net cash used in operating activities of discontinued operations	(1)		(1)		—		—
Net cash provided by operating activities	352		466		1		8
Cash flows from investing activities
Capital expenditures	(140)		(145)		—		—
Net cash used in business acquisitions	(13)		—		—		—
Net proceeds from corporate-owned life insurance policies	26		38		—		—
Proceeds from sale of property, plant and equipment	3		—		—		—

Finance receivables repaid	—		—		78		67
Finance receivables originated	—		—		(58)		(63)
Other investing activities, net	—		—		—		2
Net cash provided by (used in) investing activities	(124)		(107)		20		6
Cash flows from financing activities




Principal payments on long-term debt and nonrecourse debt	(359)		(3)		(15)		(31)
Purchases of Textron common stock	(675)		(650)		—		—
Dividends paid	(8)		(8)		—		—
Proceeds from options exercised	73		31		—		—
Other financing activities, net	(25)		(5)		—		—
Net cash used in financing activities	(994)		(635)		(15)		(31)
Effect of exchange rate changes on cash and equivalents	(10)		8		—		—
Net increase (decrease) in cash and equivalents	(776)		(268)		6		(17)
Cash and equivalents at beginning of period	2,121		1,963		60		72
Cash and equivalents at end of period	$	1,345	$	1,695	$	66	$	55

See Notes to the Consolidated Financial Statements.

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TEXTRON INC.

Notes to the Consolidated Financial Statements (Unaudited)

Note 1. Basis of Presentation

Our Consolidated Financial Statements include the accounts of Textron Inc. (Textron) and its majority-owned subsidiaries. We have prepared these unaudited consolidated financial statements in accordance with accounting principles generally accepted in the U.S. for interim financial information. Accordingly, these interim financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. The consolidated interim financial statements included in this quarterly report should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 30, 2023. In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.

Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements. All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group.

Use of Estimates

We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined.

Contract Estimates

For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable.

In the second quarter of 2024 and 2023, our cumulative catch-up adjustments increased segment profit by $18 million and $10 million, respectively, and net income by $14 million and $8 million, respectively ($0.07 and $0.04 per diluted share, respectively).

In the first half of 2024 and 2023, our cumulative catch-up adjustments increased segment profit by $31 million and $18 million, respectively, and net income by $24 million and $14 million, respectively ($0.12 and $0.07 per diluted share, respectively).

Note 2. Accounts Receivable and Finance Receivables

Accounts Receivable

Accounts receivable is composed of the following:


(In millions)	June 29, 2024		December 30, 2023
Commercial	$	767	$	831
U.S. Government contracts	101		63
	868		894
Allowance for credit losses	(21)		(26)
Total accounts receivable, net	$	847	$	868

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Finance Receivables

Finance receivables are presented in the following table:


(In millions)	June 29, 2024		December 30, 2023
Finance receivables	$	605	$	609
Allowance for credit losses	(20)		(24)
Total finance receivables, net	$	585	$	585

Finance Receivable Portfolio Quality

We internally assess the quality of our finance receivables based on a number of key credit quality indicators and statistics such as delinquency, loan balance to estimated collateral value and the financial strength of individual borrowers and guarantors. Because many of these indicators are difficult to apply across an entire class of receivables, we evaluate individual loans on a quarterly basis and classify these loans into three categories based on the key credit quality indicators for the individual loan. These three categories are performing, watchlist and nonaccrual.

We classify finance receivables as nonaccrual if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically classify accounts as nonaccrual once they are contractually delinquent by more than three months unless collection of principal and interest is not doubtful. Accounts are classified as watchlist when credit quality indicators have deteriorated as compared with typical underwriting criteria, and we believe collection of full principal and interest is probable but not certain. All other finance receivables that do not meet the watchlist or nonaccrual categories are classified as performing.

We measure delinquency based on the contractual payment terms of our finance receivables. In determining the delinquency aging category of an account, any/all principal and interest received is applied to the most past-due principal and/or interest amounts due. If a significant portion of the contractually due payment is delinquent, the entire finance receivable balance is reported in accordance with the most past-due delinquency aging category.

Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:


(Dollars in millions)	June 29, 2024		December 30, 2023
Performing	$	570	$	571
Watchlist	21		23
Nonaccrual	14		15
Nonaccrual as a percentage of finance receivables	2.31%		2.46%
Current and less than 31 days past due	$	587	$	589
31-60 days past due	15		16
61-90 days past due	2		—
Over 90 days past due	1		4
60+ days contractual delinquency as a percentage of finance receivables	0.50%		0.66%

At June 29, 2024, 38% of our performing finance receivables were originated since the beginning of 2022 and 28% were originated from 2019 to 2021 with the remainder prior to 2019. For finance receivables categorized as watchlist, 100% were originated from 2020 to 2021, and for nonaccrual, 100% were originated prior to 2021.

On a quarterly basis, we evaluate individual larger balance accounts for impairment. A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality indicators described above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of principal and interest remains probable, but the account’s original terms have been, or are expected to be, significantly modified. If the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification.

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A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles.


(In millions)	June 29, 2024		December 30, 2023
Finance receivables evaluated collectively	$	511	$	508
Finance receivables evaluated individually	14		15
Allowance for credit losses based on collective evaluation	19		21
Allowance for credit losses based on individual evaluation	1		3
Impaired finance receivables with specific allowance for credit losses	$	3	$	11
Impaired finance receivables with no specific allowance for credit losses	11		4
Unpaid principal balance of impaired finance receivables	21		25
Allowance for credit losses on impaired finance receivables	1		3
Average recorded investment of impaired finance receivables	14		27

Note 3. Inventories

Inventories are composed of the following:


(In millions)	June 29, 2024		December 30, 2023
Finished goods	$	1,211	$	1,072
Work in process	1,996		1,736
Raw materials and components	1,174		1,106
Total inventories	$	4,381	$	3,914

Note 4. Accounts Payable and Warranty Liability

Accounts Payable

Supplier Financing Arrangement

We have a financing arrangement with one of our suppliers that extends payment terms for up to 190 days from the receipt of goods and provides for the supplier to be paid by a financial institution earlier than maturity. In June 2024, the maximum amount available under the financing arrangement was increased by $25 million to $200 million. This financing arrangement expires in April 2027. At June 29, 2024 and December 30, 2023, the amount due under the supplier financing arrangement was $118 million and $125 million, respectively.

Warranty Liability

Changes in our warranty liability are as follows:


	Six Months Ended
(In millions)	June 29, 2024		July 1, 2023
Beginning of period	$	172	$	149
Provision	38		33
Settlements	(36)		(35)
Adjustments*	(2)		13
End of period	$	172	$	160

* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

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Note 5. Leases

We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 25 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised.

Operating lease cost totaled $18 million and $17 million in the second quarter of 2024 and 2023, respectively, and $36 million and $34 million in the first half of 2024 and 2023, respectively. Finance lease, variable and short-term lease costs were not significant.

Cash paid for operating leases totaled $36 million and $34 million in the first half of 2024 and 2023, respectively, and is classified in cash flows from operating activities. Noncash transaction related to operating leases totaled $28 million and $24 million in the first half of 2024 and 2023, respectively, reflecting new or extended leases. In the second quarter of 2024, non-cash transactions also reflected the recognition of a $72 million asset and liability related to a new finance lease. Cash paid for finance leases was not significant.

Balance sheet and other information related to our leases is as follows:


(Dollars in millions)	June 29, 2024		December 30, 2023
Operating leases:
Other assets	$	370	$	371
Other current liabilities	57		55
Other liabilities	323		326
Weighted-average remaining lease term (in years)	10.0		10.3
Weighted-average discount rate	4.74%		4.70%
Finance leases:
Property, plant and equipment, less accumulated amortization of $7 million and $8 million, respectively	$	89	$	20
Current portion of long-term debt	1		1
Long-term debt	88		22
Weighted-average remaining lease term (in years)	5.4		14.9
Weighted-average discount rate	6.45%		4.55%

Maturities of our lease liabilities at June 29, 2024 are as follows:


(In millions)	Operating Leases		Finance Leases
2024	$	37	$	3
2025	67		7
2026	52		7
2027	45		6
2028	42		74
Thereafter	243		16
Total lease payments	486		113
Less: interest	(106)		(24)
Total lease liabilities	$	380	$	89

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Note 6. Derivative Instruments and Fair Value Measurements

We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We prioritize the assumptions that market participants would use in pricing the asset or liability into a three-tier fair value hierarchy. This fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs in which little or no market data exist, requiring companies to develop their own assumptions. Observable inputs that do not meet the criteria of Level 1, which include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets and liabilities in markets that are not active, are categorized as Level 2. Level 3 inputs are those that reflect our estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Valuation techniques for assets and liabilities measured using Level 3 inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data. These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

We manufacture and sell our products in a number of countries throughout the world, and, therefore, we are exposed to movements in foreign currency exchange rates. We primarily utilize foreign currency exchange contracts with maturities of no more than three years to manage this volatility. These contracts qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales, inventory purchases and overhead expenses. Net gains and losses recognized in earnings and Accumulated other comprehensive loss on cash flow hedges, including gains and losses related to hedge ineffectiveness, were not significant in the periods presented.

Our foreign currency exchange contracts are measured at fair value using the market method valuation technique. The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers. These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2. At June 29, 2024 and December 30, 2023, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $631 million and $478 million, respectively. At June 29, 2024, the fair value amounts of our foreign currency exchange contracts were a $5 million asset and a $10 million liability. At December 30, 2023, the fair value amount of our foreign currency exchange contracts were a $4 million asset and a $3 million liability.

Our Finance group enters into interest rate swap agreements to mitigate certain exposures to fluctuations in interest rates. By using these contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. The fair value of our interest rate swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2.

At June 29, 2024 and December 30, 2023, we had interest rate swap agreements related to our Floating Rate Junior Subordinated Notes for an aggregate notional amount of $185 million that effectively converts the variable-rate interest for these Notes to a weighted-average fixed rate of 5.17%; these agreements have maturities ranging from August 2025 to August 2028. At June 29, 2024 and December 30, 2023, we had an interest rate swap agreement with a notional amount of $25 million that matures in June 2025 and effectively converts variable-rate interest on a term loan to a fixed rate of 4.13%. The fair value of our outstanding interest rate swap agreements was a $6 million asset at June 29, 2024 and a $4 million asset at December 30, 2023.

Assets and Liabilities Not Recorded at Fair Value

The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:


	June 29, 2024				December 30, 2023
	Carrying		Estimated		Carrying		Estimated
(In millions)	Value		Fair Value		Value		Fair Value
Manufacturing group
Debt, excluding leases	$	(3,167)	$	(2,956)	$	(3,520)	$	(3,342)
Finance group
Finance receivables, excluding leases	422		431		417		423
Debt	(342)		(310)		(348)		(293)

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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.

Note 7. Shareholders’ Equity

A reconciliation of Shareholders’ equity is presented below:


(In millions)	Common Stock		Capital Surplus		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders' Equity
Three months ended June 29, 2024
Beginning of period	$	25	$	2,012	$	(484)	$	6,059	$	(681)	$	6,931
Net income	—		—		—		259		—		259
Other comprehensive loss	—		—		—		—		(12)		(12)
Share-based compensation activity	—		38		—		—		—		38
Dividends declared	—		—		—		(4)		—		(4)
Purchases of common stock, including excise tax*	—		—		(360)		—		—		(360)

End of period	$	25	$	2,050	$	(844)	$	6,314	$	(693)	$	6,852
Three months ended July 1, 2023
Beginning of period	$	26	$	1,942	$	(464)	$	6,090	$	(586)	$	7,008
Net income	—		—		—		263		—		263
Other comprehensive income	—		—		—		—		12		12
Share-based compensation activity	—		31		—		—		—		31
Dividends declared	—		—		—		(4)		—		(4)
Purchases of common stock, including excise tax*	—		—		(276)		—		—		(276)
End of period	$	26	$	1,973	$	(740)	$	6,349	$	(574)	$	7,034
Six months ended June 29, 2024
Beginning of period	$	24	$	1,910	$	(165)	$	5,862	$	(644)	$	6,987
Net income	—		—		—		460		—		460
Other comprehensive loss	—		—		—		—		(49)		(49)
Share-based compensation activity	1		140		—		—		—		141
Dividends declared	—		—		—		(8)		—		(8)
Purchases of common stock, including excise tax*	—		—		(679)		—		—		(679)

End of period	$	25	$	2,050	$	(844)	$	6,314	$	(693)	$	6,852
Six months ended July 1, 2023
Beginning of period	$	26	$	1,880	$	(84)	$	5,903	$	(612)	$	7,113
Net income	—		—		—		454		—		454
Other comprehensive income	—		—		—		—		38		38
Share-based compensation activity	—		93		—		—		—		93
Dividends declared	—		—		—		(8)		—		(8)
Purchases of common stock, including excise tax*	—		—		(656)		—		—		(656)
End of period	$	26	$	1,973	$	(740)	$	6,349	$	(574)	$	7,034

*Includes amounts accrued for excise tax imposed on common share repurchases of $2 million and $4 million for the second quarter and first half of 2024, respectively, and $3 million and $6 million for the second quarter and first half of 2023, respectively.

Dividends per share of common stock were $0.02 for both the second quarter of 2024 and 2023 and $0.04 for both the first half of 2024 and 2023.

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Earnings Per Share

We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period. Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options.

The weighted-average shares outstanding for basic and diluted EPS are as follows:


	Three Months Ended		Six Months Ended
(In thousands)	June 29, 2024	July 1, 2023	June 29, 2024	July 1, 2023
Basic weighted-average shares outstanding	189,746	200,701	191,273	202,768
Dilutive effect of stock options	2,109	1,808	2,085	1,992
Diluted weighted-average shares outstanding	191,855	202,509	193,358	204,760

Stock options to purchase 1.0 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for both the second quarter and first half of 2024 as their effect would have been anti-dilutive. For both the second quarter and first half of 2023, stock options to purchase 2.0 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive.

Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss)

The components of Accumulated other comprehensive loss are presented below:


(In millions)	Pension and Postretirement Benefits Adjustments		Foreign Currency Translation Adjustments		Deferred Gains (Losses) on Hedge Contracts		Accumulated Other Comprehensive Loss
Balance at December 30, 2023	$	(598)	$	(49)	$	3	$	(644)
Other comprehensive loss before reclassifications	—		(47)		(4)		(51)
Reclassified from Accumulated other comprehensive loss	2		—		—		2
Balance at June 29, 2024	$	(596)	$	(96)	$	(1)	$	(693)
Balance at December 31, 2022	$	(516)	$	(94)	$	(2)	$	(612)
Other comprehensive income before reclassifications	—		32		3		35
Reclassified from Accumulated other comprehensive loss	—		—		3		3
Balance at July 1, 2023	$	(516)	$	(62)	$	4	$	(574)

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The before and after-tax components of Other comprehensive income (loss) are presented below:


	June 29, 2024						July 1, 2023
(In millions)	Pre-Tax Amount		Tax (Expense) Benefit		After-tax Amount		Pre-Tax Amount		Tax (Expense) Benefit		After-tax Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial gain*	$	(1)	$	—	$	(1)	$	(1)	$	—	$	(1)
Amortization of prior service cost*	2		—		2		2		(1)		1
Pension and postretirement benefits adjustments, net	1		—		1		1		(1)		—
Foreign currency translation adjustments	(14)		—		(14)		4		—		4
Deferred gains (losses) on hedge contracts:
Current deferrals	1		—		1		7		(1)		6
Reclassification adjustments	(1)		1		—		2		—		2
Deferred gains (losses) on hedge contracts, net	—		1		1		9		(1)		8
Total	$	(13)	$	1	$	(12)	$	14	$	(2)	$	12
Six Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial gain*	$	(2)	$	—	$	(2)	$	(3)	$	1	$	(2)
Amortization of prior service cost*	4		—		4		4		(2)		2
Pension and postretirement benefits adjustments, net	2		—		2		1		(1)		—

Foreign currency translation adjustments	(47)		—		(47)		32		—		32


Deferred gains (losses) on hedge contracts:
Current deferrals	(6)		2		(4)		3		—		3
Reclassification adjustments	(2)		2		—		4		(1)		3
Deferred gains (losses) on hedge contracts, net	(8)		4		(4)		7		(1)		6
Total	$	(53)	$	4	$	(49)	$	40	$	(2)	$	38

*These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2023 Annual Report on Form 10-K for additional information.

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Note 8. Segment Information

We operate in, and report financial information for, the following six operating segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation and Finance. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes the non-service components of pension and postretirement income, net; LIFO inventory provision; intangible asset amortization; interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.

Our revenues by segment, along with a reconciliation of segment profit to income from continuing operations before income taxes, are included in the table below:


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Revenues
Textron Aviation	$	1,475	$	1,362	$	2,663	$	2,511
Bell	794		701		1,521		1,322
Textron Systems	323		306		629		612
Industrial	914		1,026		1,806		1,958
Textron eAviation	9		11		16		15
Finance	12		18		27		30
Total revenues	$	3,527	$	3,424	$	6,662	$	6,448
Segment Profit
Textron Aviation	$	195	$	171	$	338	$	296
Bell	82		65		162		125
Textron Systems	35		37		73		71
Industrial	42		79		71		120
Textron eAviation	(18)		(12)		(36)		(21)
Finance	7		12		25		20
Segment profit	343		352		633		611
Corporate expenses and other, net	(17)		(21)		(79)		(60)
Interest expense, net for Manufacturing group	(20)		(16)		(35)		(33)
LIFO inventory provision	(27)		(35)		(47)		(60)
Intangible asset amortization	(9)		(10)		(17)		(20)
Special charges	(13)		—		(27)		—
Non-service components of pension and postretirement income, net	66		59		132		118

Income from continuing operations before income taxes	$	323	$	329	$	560	$	556

Note 9. Revenues

Disaggregation of Revenues

Our revenues disaggregated by major product type are presented below:


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Aircraft	$	975	$	920	$	1,707	$	1,638
Aftermarket parts and services	500		442		956		873
Textron Aviation	1,475		1,362		$	2,663	$	2,511
Military aircraft and support programs	499		395		979		780
Commercial helicopters, parts and services	295		306		542		542
Bell	794		701		$	1,521	$	1,322
Textron Systems	323		306		$	629	$	612
Fuel systems and functional components	492		523		980		1,011
Specialized vehicles	422		503		826		947
Industrial	914		1,026		$	1,806	$	1,958
Textron eAviation	9		11		$	16	$	15
Finance	12		18		$	27	$	30
Total revenues	$	3,527	$	3,424	$	6,662	$	6,448

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Our revenues for our segments by customer type and geographic location are presented below:


(In millions)	Textron Aviation		Bell		Textron Systems		Industrial		Textron eAviation		Finance		Total
Three months ended June 29, 2024
Customer type:
Commercial	$	1,343	$	288	$	79	$	908	$	9	$	12	$	2,639
U.S. Government	132		506		244		6		—		—		888
Total revenues	$	1,475	$	794	$	323	$	914	$	9	$	12	$	3,527
Geographic location:
United States	$	1,147	$	639	$	283	$	497	$	5	$	4	$	2,575
Europe	91		14		12		183		3		—		303

Other international	237		141		28		234		1		8		649
Total revenues	$	1,475	$	794	$	323	$	914	$	9	$	12	$	3,527
Three months ended July 1, 2023
Customer type:
Commercial	$	1,321	$	301	$	70	$	1,024	$	11	$	18	$	2,745
U.S. Government	41		400		236		2		—		—		679
Total revenues	$	1,362	$	701	$	306	$	1,026	$	11	$	18	$	3,424
Geographic location:
United States	$	933	$	534	$	274	$	566	$	7	$	4	$	2,318
Europe	159		35		17		201		4		1		417

Other international	270		132		15		259		—		13		689
Total revenues	$	1,362	$	701	$	306	$	1,026	$	11	$	18	$	3,424
Six months ended June 29, 2024
Customer type:
Commercial	$	2,498	$	527	$	151	$	1,792	$	16	$	27	$	5,011
U.S. Government	165		994		478		14		—		—		1,651
Total revenues	$	2,663	$	1,521	$	629	$	1,806	$	16	$	27	$	6,662
Geographic location:
United States	$	2,097	$	1,198	$	557	$	957	$	9	$	8	$	4,826
Europe	153		37		25		381		5		5		606

Other international	413		286		47		468		2		14		1,230
Total revenues	$	2,663	$	1,521	$	629	$	1,806	$	16	$	27	$	6,662
Six months ended July 1, 2023
Customer type:
Commercial	$	2,428	$	533	$	144	$	1,951	$	15	$	30	$	5,101
U.S. Government	83		789		468		7		—		—		1,347
Total revenues	$	2,511	$	1,322	$	612	$	1,958	$	15	$	30	$	6,448
Geographic location:
United States	$	1,769	$	994	$	549	$	1,060	$	8	$	8	$	4,388
Europe	225		54		31		405		6		1		722

Other international	517		274		32		493		1		21		1,338
Total revenues	$	2,511	$	1,322	$	612	$	1,958	$	15	$	30	$	6,448

Remaining Performance Obligations

Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our contracts that we expect to recognize as revenues in future periods when we perform under the contracts. These remaining obligations exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At June 29, 2024, we had $13.4 billion in remaining performance obligations of which we expect to recognize revenues of approximately 82% through 2025, an additional 16% through 2027, and the balance thereafter.

Contract Assets and Liabilities

Assets and liabilities related to our contracts with customers are reported on a contract-by-contract basis at the end of each reporting period. At June 29, 2024 and December 30, 2023, contract assets totaled $351 million and $513 million, respectively, and contract liabilities totaled $1.9 billion and $1.8 billion, respectively, reflecting timing differences between revenues recognized, billings and payments from customers. We recognized revenues of $333 million and $380 million in the second quarter of 2024 and 2023, respectively, and $660 million and $696 million in the first half of 2024 and 2023, respectively, that were included in the contract liability balance at the beginning of each year.

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Note 10. Retirement Plans

We provide defined benefit pension plans and other postretirement benefits to eligible employees. The components of net periodic benefit income for these plans are as follows:


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Pension Benefits
Service cost	$	17	$	16	$	34	$	33
Interest cost	91		91		181		182
Expected return on plan assets	(159)		(153)		(318)		(305)
Amortization of net actuarial loss	1		1		2		1
Amortization of prior service cost	3		3		5		6
Net periodic benefit income*	$	(47)	$	(42)	$	(96)	$	(83)
Postretirement Benefits Other Than Pensions
Service cost	$	1	$	1	$	1	$	1
Interest cost	1		2		$	3	$	4
Amortization of net actuarial gain	(2)		(2)		(4)		(4)
Amortization of prior service credit	(1)		(1)		(1)		(2)
Net periodic benefit income	$	(1)	$	—	$	(1)	$	(1)

* Excludes the cost associated with the defined contribution component, included in certain of our U.S.-based defined benefit pension plans, that totaled $2 million for both the second quarter of 2024 and 2023 and $6 million for both the first half of 2024 and 2023.

Note 11. Special Charges

On April 24, 2024, the Board of Directors approved the expansion of Textron’s 2023 restructuring plan to further reduce operating expenses through headcount reductions. In the first quarter of 2024, both the Shadow and Future Attack Reconnaissance Aircraft programs were cancelled at the Textron Systems and Bell segments, resulting in additional severance costs under the restructuring plan. Additionally, we increased our planned headcount reduction within the Industrial segment due to lower anticipated consumer demand for certain products at the Specialized Vehicles product line and reduced demand for fuel systems from European automotive manufacturers at Kautex.

In connection with this plan, special charges totaled $13 million in the second quarter of 2024, related to headcount reductions at the Industrial segment. In the first half of 2024, special charges totaled $27 million, which included $26 million in severance costs and $1 million in asset impairment charges; we recorded $15 million of these charges at the Industrial segment, $7 million at the Textron Systems segment and $5 million at the Bell segment. We expect to incur additional special charges in the second half of 2024 in the range of $12 million to $17 million, largely related to headcount reductions at the Industrial segment.

Since inception of the 2023 restructuring plan, we have incurred $153 million in special charges, including severance costs of $65 million, which included $35 million at the Industrial segment, $18 million at the Bell segment and $12 million at the Textron Systems segment; and asset impairment charges of $88 million at the Industrial segment.

Headcount reductions since inception of the plan are expected to total approximately 1,500 positions, representing 4% of our global workforce. We estimate that remaining future cash outlays under this plan will be in the range of $50 million to $55 million, most of which we expect to pay in 2024. We expect charges under this plan to be substantially completed by the end of 2024.

Our restructuring reserve activity is summarized below:


(In millions)	Severance Costs		Contract Terminations and Other		Total
Balance at December 30, 2023	$	42	$	5	$	47
Provision for 2023 Restructuring Plan	26		—		26
Cash paid	(29)		—		(29)

Foreign currency translation	(1)		—		(1)
Balance at June 29, 2024	$	38	$	5	$	43

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Note 12. Income Taxes

Our effective tax rate for the second quarter and first half of 2024 was 19.5% and 17.7%, respectively. In the second quarter and first half of 2024, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income.

Our effective tax rate for the second quarter and first half of 2023 was 20.1% and 18.3%, respectively. In the first half of 2023, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income, partially offset by a $7 million provision for withholding taxes due to the planned repatriation of cash related to a non-U.S. jurisdiction.

Note 13. 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.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Consolidated Results of Operations


	Three Months Ended					Six Months Ended
(Dollars in millions)	June 29, 2024		July 1, 2023		% Change	June 29, 2024		July 1, 2023		% Change
Revenues	$	3,527	$	3,424	3%	$	6,662	$	6,448	3%
Cost of sales	2,939		2,846		3%	5,553		5,377		3%
Gross margin as a % of Manufacturing revenues	16.4%		16.4%			16.3%		16.2%
Selling and administrative expense	293		289		1%	609		594		3%
Interest expense, net	25		19		32%	45		39		15%
Special charges	13		—		100%	27		—		100%
Non-service components of pension and postretirement income, net	66		59		12%	132		118		12%

An analysis of our consolidated operating results is set forth below. A more detailed analysis of our segments’ operating results is provided in the Segment Analysis section on pages 21 to 26.

Revenues

Revenues increased $103 million, 3%, in the second quarter of 2024, compared with the second quarter of 2023. The revenue increase primarily included the following factors:

•Higher Textron Aviation revenues of $113 million, reflecting higher pricing of $57 million and higher volume and mix of $56 million.

•Higher Bell revenues of $93 million, largely due to higher military volume of $104 million, primarily related to the FLRAA program, partially offset by lower volume on the V-22 program.

•Higher Textron Systems revenues of $17 million, largely due to higher volume.

•Lower Industrial revenues of $112 million, largely due to lower volume and mix of $119 million, principally in the Specialized Vehicles product line.

Revenues increased $214 million, 3%, in the first half of 2024, compared with the first half of 2023. The revenue increase primarily included the following factors:

•Higher Bell revenues of $199 million, reflecting higher military volume of $199 million, primarily related to the FLRAA program, partially offset by lower volume on the V-22 program.

•Higher Textron Aviation revenues of $152 million, reflecting higher pricing of $105 million and higher volume and mix of $47 million.

•Higher Textron Systems revenues of $17 million, largely due to higher volume.

•Lower Industrial revenues of $152 million, largely due to lower volume and mix of $170 million, principally in the Specialized Vehicles product line, partially offset by higher pricing of $29 million.

Cost of Sales and Selling and Administrative Expense

Cost of sales includes cost of products and services sold for the Manufacturing group. Cost of sales increased $93 million, 3%, and $176 million, 3% in the second quarter and first half of 2024, respectively, compared with the corresponding periods of 2023. The increase in both periods included the impact from inflation of $62 million and $116 million, respectively, and higher net volume and mix of $43 million and $105 million, respectively.

Selling and administrative expense increased $4 million, 1%, and $15 million, 3%, in the second quarter and first half of 2024, respectively, compared with the corresponding periods of 2023. The increase in the first half of 2024, was primarily due to higher share-based compensation expense, partially offset by a gain on a legal settlement.

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Interest Expense

Interest expense, net includes interest expense for both the Finance and Manufacturing borrowing groups, with interest on intercompany borrowings eliminated, and interest income earned on cash and equivalents for the Manufacturing borrowing group.

In the second quarter of 2024, interest expense, net increased $6 million, 32%, compared with the second quarter of 2023, primarily due to an increase in the weighted-average interest rate. In the first half of 2024, interest expense, net increased $6 million, 15%, compared with the first half of 2023, due to an increase in the weighted-average interest rate and higher average debt outstanding, partially offset by higher interest income of $5 million. For the second quarter and first half of 2024, gross interest expense totaled $36 million and $74 million, respectively. Gross interest expense for the second quarter and first half of 2023 totaled $31 million and $63 million, respectively.

Special Charges

Special charges include restructuring activities and asset impairment charges as described in Note 11 to the Consolidated Financial Statements in Item 1. Financial Statements.

Income Taxes

Backlog

Our backlog is summarized below:


(In millions)	June 29, 2024		December 30, 2023
Textron Aviation	$	7,464	$	7,169
Bell	4,242		4,780
Textron Systems	1,712		1,950
Total backlog	$	13,418	$	13,899

Segment Analysis

In our discussion of comparative results for the Manufacturing group, changes in revenues and segment profit for our commercial businesses typically are expressed in terms of volume and mix, pricing, foreign exchange, acquisitions and dispositions, inflation and performance. For revenues, volume and mix represents changes in revenues from increases or decreases in the number of units delivered or services provided and the composition of products and/or services sold. For segment profit, volume and mix represents a change due to the number of units delivered or services provided and the composition of products and/or services sold at different profit margins. Pricing represents changes in unit pricing. Foreign exchange is the change resulting from translating foreign-denominated amounts into U.S. dollars at exchange rates that are different from the prior period. Revenues generated by acquired businesses are reflected in Acquisitions for a twelve-month period, while reductions in revenues and segment profit from the sale of businesses are reflected as Dispositions. Inflation represents higher material, wages, benefits, pension service cost or other costs. Performance reflects an increase or decrease in research and development, depreciation, selling and administrative costs, warranty, product liability, quality/scrap, labor efficiency, overhead, product line profitability, start-up, ramp up and cost-reduction initiatives or other manufacturing inputs.

Approximately 21% of our 2023 revenues were derived from contracts with the U.S. Government, including those under the U.S. Government-sponsored foreign military sales program. For our segments that contract with the U.S. Government, changes in revenues related to these contracts are expressed in terms of volume. Changes in segment profit for these contracts are typically

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expressed in terms of volume and mix and performance; these include cumulative catch-up adjustments associated with a) revisions to the transaction price that may reflect contract modifications or changes in assumptions related to award fees and other variable consideration or b) changes in the total estimated costs at completion due to improved or deteriorated operating performance.

Textron Aviation


	Three Months Ended					Six Months Ended
(Dollars in millions)	June 29, 2024		July 1, 2023		% Change	June 29, 2024		July 1, 2023		% Change
Revenues:
Aircraft	$	975	$	920	6%	$	1,707	$	1,638	4%
Aftermarket parts and services	500		442		13%	956		873		10%
Total revenues	1,475		1,362		8%	2,663		2,511		6%
Operating expenses	1,280		1,191		7%	2,325		2,215		5%
Segment profit	$	195	$	171	14%	$	338	$	296	14%
Profit margin	13.2%		12.6%			12.7%		11.8%

Textron Aviation Revenues and Operating Expenses

The following factors contributed to the change in Textron Aviation’s revenues for the periods:


(In millions)	Q2 2024 versus Q2 2023		YTD 2024 versus YTD 2023
Pricing	$	57	$	105
Volume and mix	56		47
Total change	$	113	$	152

Textron Aviation’s revenues increased $113 million, 8%, in the second quarter of 2024, compared with the second quarter of 2023, reflecting higher pricing of $57 million and higher volume and mix of $56 million. The increase in volume and mix includes higher commercial turboprop and aftermarket volume, partially offset by lower defense volume. We delivered 42 Citation jets and 44 commercial turboprops in the second quarter of 2024, compared with 44 Citation jets and 37 commercial turboprops in the second quarter of 2023.

Textron Aviation’s revenues increased $152 million, 6%, in the first half of 2024, compared with the first half of 2023, reflecting higher pricing of $105 million and higher volume and mix of $47 million. The increase in volume and mix includes higher aftermarket volume and a favorable mix of Citation jets, partially offset by lower defense volume. We delivered 78 Citation jets and 64 commercial turboprops in the first half of 2024, compared with 79 Citation jets and 71 commercial turboprops in the first half of 2023.

Textron Aviation’s operating expenses increased $89 million, 7%, in the second quarter of 2024, compared with the second quarter of 2023, largely due to inflation of $35 million and higher volume and mix described above.

Textron Aviation’s operating expenses increased $110 million, 5%, in the first half of 2024, compared with the first half of 2023, largely due to inflation of $69 million and higher volume and mix described above.

Textron Aviation Segment Profit

The following factors contributed to the change in Textron Aviation’s segment profit for the periods:


(In millions)	Q2 2024 versus Q2 2023		YTD 2024 versus YTD 2023
Pricing, net of inflation	$	22	$	36
Volume and mix	35		33
Performance	(33)		(27)
Total change	$	24	$	42

Segment profit at Textron Aviation increased $24 million, 14%, in the second quarter of 2024, compared with the second quarter of 2023, reflecting higher volume and mix described above and $22 million of favorable pricing, net of inflation, partially offset by an unfavorable impact from performance of $33 million.

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Segment profit at Textron Aviation increased $42 million, 14%, in the first half of 2024, compared with the first half of 2023, reflecting favorable pricing, net of inflation of $36 million and higher volume and mix, partially offset by an unfavorable impact from performance of $27 million.

Bell


	Three Months Ended					Six Months Ended
(Dollars in millions)	June 29, 2024		July 1, 2023		% Change	June 29, 2024		July 1, 2023		% Change
Revenues:
Military aircraft and support programs	$	499	$	395	26%	$	979	$	780	26%
Commercial helicopters, parts and services	295		306		(4)%	542		542		—%
Total revenues	794		701		13%	1,521		1,322		15%
Operating expenses	712		636		12%	1,359		1,197		14%
Segment profit	$	82	$	65	26%	$	162	$	125	30%
Profit margin	10.3%		9.3%			10.7%		9.5%

Bell’s military aircraft and support programs include a development contract for the U.S. Army's FLRAA program, as well as production, upgrade, and support contracts for the V-22 tiltrotor aircraft and H-1 helicopters. The FLRAA program has begun to represent an increasing portion of Bell’s revenues as development activities have ramped. We continue to receive production, upgrade and support orders for the V-22 and H-1 programs, however, these programs are expected to represent a lower portion of Bell’s military revenue in the future. In the first quarter of 2024, Bell received a foreign military sale award for the production and delivery of 12 AH-1Z helicopters.

Bell Revenues and Operating Expenses

The following factors contributed to the change in Bell’s revenues for the periods:


(In millions)	Q2 2024 versus Q2 2023		YTD 2024 versus YTD 2023
Volume and mix	$	75	$	164
Pricing	18		35

Total change	$	93	$	199

Bell’s revenues increased $93 million, 13%, in the second quarter of 2024, compared with the second quarter of 2023, reflecting higher volume and mix of $75 million and higher pricing of $18 million. Volume and mix included higher military volume of $104 million, primarily related to the FLRAA program, partially offset by lower volume on the V-22 program. Commercial volume and mix decreased $29 million, as we delivered 32 commercial helicopters in the second quarter of 2024, compared with 35 commercial helicopters in the second quarter of 2023.

Bell’s revenues increased $199 million, 15%, in the first half of 2024, compared with the first half of 2023, reflecting higher volume and mix of $164 million and higher pricing of $35 million. Volume and mix included higher military volume of $199 million, primarily related to the FLRAA program, partially offset by lower volume on the V-22 program. Commercial volume and mix decreased $35 million, as we delivered 50 commercial helicopters in the first half of 2024, compared with 57 commercial helicopters in the first half of 2023.

Bell’s operating expenses increased $76 million, 12%, and $162 million, 14% in the second quarter and first half of 2024, respectively, compared with the corresponding periods of 2023, primarily due to higher volume and mix described above.

Bell Segment Profit

The following factors contributed to the change in Bell’s segment profit for the periods:


(In millions)	Q2 2024 versus Q2 2023		YTD 2024 versus YTD 2023
Performance	$	39	$	69
Pricing, net of inflation	1		5
Volume and mix	(23)		(37)
Total change	$	17	$	37

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Bell’s segment profit increased $17 million, 26%, in the second quarter of 2024, compared with the second quarter of 2023, largely due to a favorable impact from performance of $39 million, partially offset by lower volume and mix, reflecting the mix of products and services sold in the period.

Bell’s segment profit increased $37 million, 30%, in the first half of 2024, compared with the first half of 2023, largely due to a favorable impact from performance of $69 million, partially offset by lower volume and mix, reflecting the mix of products and services sold in the period.

In the second quarter and first half of 2024, lower research and development costs of $45 million and $55 million, respectively, had a favorable impact on performance and was largely due to the winddown of the Future Attack Reconnaissance Aircraft Program.

Textron Systems


	Three Months Ended					Six Months Ended
(Dollars in millions)	June 29, 2024		July 1, 2023		% Change	June 29, 2024		July 1, 2023		% Change
Revenues	$	323	$	306	6%	$	629	$	612	3%
Operating expenses	288		269		7%	556		541		3%
Segment profit	$	35	$	37	(5)%	$	73	$	71	3%
Profit margin	10.8%		12.1%			11.6%		11.6%

Textron Systems Revenues and Operating Expenses

The following factors contributed to the change in Textron Systems’ revenues for the periods:


(In millions)	Q2 2024 versus Q2 2023		YTD 2024 versus YTD 2023

Volume	$	14	$	10
Pricing	3		7
Total change	$	17	$	17

Textron Systems' revenues increased $17 million, 6%, and $17 million, 3%, in the second quarter and first half of 2024, respectively, compared with the corresponding periods of 2023, primarily due to higher volume.

Textron Systems’ operating expenses increased $19 million, 7%, and $15 million, 3%, in the in the second quarter and first half of 2024, respectively, compared with the corresponding periods of 2023, primarily due to higher volume.

Textron Systems Segment Profit

The following factors contributed to the change in Textron Systems’ segment profit for the periods:


(In millions)	Q2 2024 versus Q2 2023		YTD 2024 versus YTD 2023
Pricing, net of inflation	$	1	$	3
Volume and mix	—		1
Performance	(3)		(2)
Total change	$	(2)	$	2

Textron Systems’ segment profit decreased $2 million, 5%, in the second quarter of 2024, compared with the second quarter of 2023, primarily due to an unfavorable impact from performance.

Textron Systems’ segment profit increased $2 million, 3%, in the first half of 2024, compared with the first half of 2023, largely reflecting higher pricing, net of inflation.

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Industrial


	Three Months Ended					Six Months Ended
(Dollars in millions)	June 29, 2024		July 1, 2023		% Change	June 29, 2024		July 1, 2023		% Change
Revenues:
Kautex	$	492	$	523	(6)%	$	980	$	1,011	(3)%
Specialized vehicles	422		503		(16)%	826		947		(13)%
Total revenues	914		1,026		(11)%	1,806		1,958		(8)%
Operating expenses	872		947		(8)%	1,735		1,838		(6)%
Segment profit	$	42	$	79	(47)%	$	71	$	120	(41)%
Profit margin	4.6%		7.7%			3.9%		6.1%

Industrial Revenues and Operating Expenses

The following factors contributed to the change in Industrial’s revenues for the periods:


(In millions)	Q2 2024 versus Q2 2023		YTD 2024 versus YTD 2023
Volume and mix	$	(119)	$	(170)
Foreign exchange	(6)		(11)
Pricing	13		29
Total change	$	(112)	$	(152)

Industrial segment revenues decreased $112 million, 11%, in the second quarter of 2024, compared with the second quarter of 2023, largely due to lower volume and mix of $119 million, principally in the Specialized Vehicles product line.

Industrial segment revenues decreased $152 million, 8%, in the first half of 2024, compared with the first half of 2023, largely due to lower volume and mix of $170 million, principally in the Specialized Vehicles product line, partially offset by higher pricing of $29 million in the segment.

Industrial's operating expenses decreased $75 million, 8%, and $103 million, 6%, in the second quarter and first half of 2024, respectively, compared with the corresponding periods in 2023, principally reflecting the impact of lower volume and mix described above.

Industrial Segment Profit

The following factors contributed to the change in Industrial’s segment profit for the periods:


(In millions)	Q2 2024 versus Q2 2023		YTD 2024 versus YTD 2023
Volume and mix	$	(30)	$	(44)
Performance	(5)		(5)
Foreign exchange	—		(1)
Pricing, net of inflation	(2)		1
Total change	$	(37)	$	(49)

Segment profit for the Industrial segment decreased $37 million, 47%, and $49 million, 41%, in the second quarter and first half of 2024, compared with the corresponding periods of 2023, largely due to lower volume and mix described above.

Textron eAviation


	Three Months Ended					Six Months Ended
(Dollars in millions)	June 29, 2024		July 1, 2023		% Change	June 29, 2024		July 1, 2023		% Change
Revenues	$	9	$	11	(18)%	$	16	$	15	7%
Operating expenses	27		23		17%	52		36		44%
Segment loss	$	(18)	$	(12)	50%	$	(36)	$	(21)	71%

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Textron eAviation Revenues and Operating Expenses

The following factors contributed to the change in Textron eAviation’s revenues for the periods:


(In millions)	Q2 2024 versus Q2 2023		YTD 2024 versus YTD 2023
Volume and mix	$	(4)	$	(2)

Other	2		3
Total change	$	(2)	$	1

Textron eAviation segment revenues decreased $2 million, 18% in the second quarter of 2024, compared with the second quarter of 2023, primarily reflecting lower volume and mix.

Textron eAviation's operating expenses increased $4 million and $16 million, in the second quarter and first half of 2024, respectively, compared with the corresponding periods of 2023, primarily related to higher research and development costs.

Textron eAviation Segment Loss

The following factors contributed to the change in Textron eAviation’s segment loss for the periods:


(In millions)	Q2 2024 versus Q2 2023		YTD 2024 versus YTD 2023
Performance and other	$	(4)	$	(14)
Volume and mix	(2)		(1)
Total change	$	(6)	$	(15)

Textron eAviation's segment loss increased $6 million and $15 million in the second quarter and first half of 2024, respectively, compared with the corresponding periods of 2023. The increase in the first half of 2024 was largely due to an unfavorable impact from performance and other, primarily reflecting higher research and development costs.

Finance


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Revenues	$	12	$	18	$	27	$	30
Segment profit	7		12		25		20

Finance segment revenues decreased $6 million and $3 million in the second quarter and first half of 2024, respectively, compared with the corresponding periods of 2023. Segment profit decreased $5 million in the second quarter of 2024 and increased $5 million in the first half of 2024, compared with the corresponding periods of 2023. The increase in segment profit in the first half of 2024 was largely due to an $8 million recovery of amounts that were previously written off related to one customer relationship. The following table reflects information about the Finance segment’s credit performance related to finance receivables.


(Dollars in millions)	June 29, 2024		December 30, 2023
Finance receivables	$	605	$	609
Allowance for credit losses	20		24
Ratio of allowance for credit losses to finance receivables	3.31%		3.94%
Nonaccrual finance receivables	14		15
Ratio of nonaccrual finance receivables to finance receivables	2.31%		2.46%
60+ days contractual delinquency	3		4
60+ days contractual delinquency as a percentage of finance receivables	0.50%		0.66%

We believe our allowance for credit losses adequately covers our exposure on these loans as our estimated collateral values largely exceed the outstanding loan amounts. Key portfolio quality indicators are discussed in Note 2 to the Consolidated Financial Statements.

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Liquidity and Capital Resources

Key information that is utilized in assessing our liquidity is summarized below:


(Dollars in millions)	June 29, 2024		December 30, 2023
Manufacturing group
Cash and equivalents	$	1,345	$	2,121
Debt	3,241		3,526
Shareholders’ equity	6,852		6,987
Capital (debt plus shareholders’ equity)	10,093		10,513
Net debt (net of cash and equivalents) to capital	22%		17%
Debt to capital	32%		34%
Finance group
Cash and equivalents	$	66	$	60
Debt	342		348

We believe that our calculations of debt to capital and net debt to capital are useful measures as they provide a summary indication of the level of debt financing (i.e., leverage) that is in place to support our capital structure, as well as to provide an indication of the capacity to add further leverage. We expect to have sufficient cash to meet our needs based on our existing cash balances, the cash we expect to generate from our manufacturing operations and the availability of our existing credit facility.

Credit Facilities and Other Sources of Capital

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 June 29, 2024 and December 30, 2023, there were no amounts borrowed against the facility and there were $9 million of outstanding letters of credit issued under the facility.

We also maintain an effective shelf registration statement filed with the Securities and Exchange Commission that allows us to issue an unlimited amount of public debt and other securities. On March 1, 2024, we repaid our $350 million 4.30% Notes due March 2024.

Manufacturing Group Cash Flows

Cash flows for the Manufacturing group as presented in our Consolidated Statements of Cash Flows are summarized below:


	Six Months Ended
(In millions)	June 29, 2024		July 1, 2023
Operating activities	$	353	$	467
Investing activities	(124)		(107)
Financing activities	(994)		(635)

In the first half of 2024, cash flows from operating activities of continuing operations decreased $114 million to $353 million, compared with $467 million in the first half of 2023, largely due to changes in working capital.

Cash flows used in investing activities included $140 million and $145 million of capital expenditures in the first half of 2024 and 2023, respectively, partially offset by $26 million and $38 million of net proceeds from corporate-owned life insurance policies, respectively.

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Cash flows used in financing activities in the first half of 2024 included $675 million of cash paid to repurchase an aggregate of 7.7 million shares of our common stock and $359 million of payments on long-term debt. In the first half of 2023, cash flows used in financing activities included $650 million of cash paid to repurchase an aggregate of 9.4 million shares of our common stock.

Finance Group Cash Flows

Cash flows for the Finance group as presented in our Consolidated Statements of Cash Flows are summarized below:


	Six Months Ended
(In millions)	June 29, 2024		July 1, 2023
Operating activities	$	1	$	8
Investing activities	20		6
Financing activities	(15)		(31)

The Finance group’s cash flows from investing activities included collections on finance receivables totaling $78 million and $67 million in the first half of 2024 and 2023, respectively, partially offset by finance receivable originations of $58 million and $63 million, respectively. In the first half of 2024 and 2023, financing activities included payments on long-term and nonrecourse debt of $15 million and $31 million, respectively.

Consolidated Cash Flows

The consolidated cash flows after elimination of activity between the borrowing groups, are summarized below:


	Six Months Ended
(In millions)	June 29, 2024		July 1, 2023
Operating activities	$	361	$	460
Investing activities	(111)		(86)
Financing activities	(1,009)		(666)

In the first half of 2024, cash flows from operating activities of continuing operations decreased $99 million to $361 million, compared with $460 million in the first half of 2023, largely due to changes in working capital, partially offset by a net cash inflow from captive financing activities of $22 million.

Cash flows used in financing activities in the first half of 2024 included $675 million of cash paid to repurchase shares of our outstanding common stock and $374 million of payments on long-term debt. In the first half of 2023, cash flows used in financing activities included $650 million of cash paid to repurchase shares of our outstanding common stock.

Captive Financing and Other Intercompany Transactions

The 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

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financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or eliminated from the Consolidated Statements of Cash Flows.

Reclassification adjustments included in the Consolidated Statements of Cash Flows are summarized below:


	Six Months Ended
(In millions)	June 29, 2024		July 1, 2023
Reclassification adjustments from investing activities to operating activities:
Cash received from customers	$	47	$	48
Finance receivable originations for Manufacturing group inventory sales	(40)		(63)




Total reclassification adjustments from investing activities to operating activities	$	7	$	(15)

Critical Accounting Estimates Update

Our Consolidated Financial Statements are prepared in conformity with U.S. generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. The accounting estimates that we believe are most critical to the portrayal of our financial condition and results of operations are reported in Item 7 of our Annual Report on Form 10-K for the year ended December 30, 2023. The following section provides an update of the year-end disclosure.

Revenue Recognition

A substantial portion of our revenues is related to long-term contracts with the U.S. Government, including those under the U.S. Government-sponsored foreign military sales program, for the design, development, manufacture or modification of aerospace and defense products as well as related services. We generally use the cost-to-cost method to measure progress for these 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.

Changes in our estimate of the total expected cost or in the transaction price for a contract typically impact our profit booking rate. We utilize the cumulative catch-up method of accounting to recognize the impact of these changes on our profit booking rate for a contract. Under this method, the inception-to-date impact of a profit adjustment on a contract is recognized in the period the adjustment is identified. The impact of our cumulative catch-up adjustments on segment profit recognized in prior periods is presented below:


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Gross favorable	$	29	$	24	$	72	$	49
Gross unfavorable	(11)		(14)		(41)		(31)
Net adjustments	$	18	$	10	$	31	$	18

Forward-Looking Information

Certain statements in this Quarterly Report on Form 10-Q and other oral and written statements made by us from time to time are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which may describe strategies, goals, outlook or other non-historical matters, or project revenues, income, returns or other financial measures, often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “guidance,” “project,” “target,” “potential,” “will,” “should,” “could,” “likely” or “may” and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In addition to those factors described in our 2023 Annual Report on Form 10-K under “Risk Factors,” among the factors that could cause actual results to differ materially from past and projected future results are the following:

•Interruptions in the U.S. Government’s ability to fund its activities and/or pay its obligations;

•Changing priorities or reductions in the U.S. Government defense budget, including those related to military operations in foreign countries;

•Our ability to perform as anticipated and to control costs under contracts with the U.S. Government;

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•The U.S. Government’s ability to unilaterally modify or terminate its contracts with us for the U.S. Government’s convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain circumstances, to withhold payment or suspend or debar us as a contractor eligible to receive future contract awards;

•Changes in foreign military funding priorities or budget constraints and determinations, or changes in government regulations or policies on the export and import of military and commercial products;

•Volatility in the global economy or changes in worldwide political conditions that adversely impact demand for our products;

•Volatility in interest rates or foreign exchange rates and inflationary pressures;

•Risks related to our international business, including establishing and maintaining facilities in locations around the world and relying on joint venture partners, subcontractors, suppliers, representatives, consultants and other business partners in connection with international business, including in emerging market countries;

•Our Finance segment’s ability to maintain portfolio credit quality or to realize full value of receivables;

•Performance issues with key suppliers or subcontractors;

•Legislative or regulatory actions, both domestic and foreign, impacting our operations or demand for our products;

•Our ability to control costs and successfully implement various cost-reduction activities;

•The efficacy of research and development investments to develop new products or unanticipated expenses in connection with the launching of significant new products or programs;

•The timing of our new product launches or certifications of our new aircraft products;

•Our ability to keep pace with our competitors in the introduction of new products and upgrades with features and technologies desired by our customers;

•Pension plan assumptions and future contributions;

•Demand softness or volatility in the markets in which we do business;

•Cybersecurity threats, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption;

•Difficulty or unanticipated expenses in connection with integrating acquired businesses;

•The risk that acquisitions do not perform as planned, including, for example, the risk that acquired businesses will not achieve revenue and profit projections;

•The impact of changes in tax legislation;

•The risk of disruptions to our business and the business of our suppliers, customers and other business partners due to unexpected events, such as pandemics, natural disasters, acts of war, strikes, terrorism, social unrest or other societal or political conditions; and

•The ability of our businesses to hire and retain the highly skilled personnel necessary for our businesses to succeed.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There has been no significant change in our exposure to market risk during the fiscal quarter ended June 29, 2024. For discussion of our exposure to market risk, refer to Item 7A. Quantitative and Qualitative Disclosures about Market Risk contained in Textron’s 2023 Annual Report on Form 10-K.

Item 4. Controls and Procedures

We performed an evaluation of the effectiveness of our disclosure controls and procedures as of June 29, 2024. The evaluation was performed with the participation of senior management of each business segment and key Corporate functions, under the supervision of our Chairman, President and Chief Executive Officer (CEO) and our Executive Vice President and Chief Financial Officer (CFO). Based on this evaluation, the CEO and CFO concluded that our disclosure controls and procedures were operating and effective as of June 29, 2024.

There were no changes in our internal control over financial reporting during the fiscal quarter ended June 29, 2024 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following provides information about our second quarter of 2024 repurchases of equity securities that are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended:


Period (shares in thousands)	Total Number of Shares Purchased *	Average Price Paid per Share (excluding commissions)		Total Number of Shares Purchased as part of Publicly Announced Plan *	Maximum Number of Shares that may yet be Purchased under the Plan
March 31, 2024 – May 4, 2024	1,225	$	89.76	1,225	23,676
May 5, 2024 – June 1, 2024	1,625	87.37		1,625	22,051
June 2, 2024 – June 29, 2024	1,225	86.09		1,225	20,826
Total	4,075	$	87.70	4,075

* These shares were purchased pursuant to a plan authorizing the repurchase of up to 35 million shares of Textron common stock that was approved on July 24, 2023 by our Board of Directors. This share repurchase plan has no expiration date.

Item 5. Other Information

(c) None of our directors or executive officers adopted or terminated a “Rule 10b5-1 trading arrangement” or adopted or terminated a “non-Rule 10b5-1 trading arrangement” (as such terms are defined in Item 408 of Regulation S-K) during the quarter ended June 29, 2024.

Item 6. Exhibits


10.1			Textron Inc. 2024 Long-Term Incentive Plan

10.2			Form of Stock-Settled Restricted Stock Unit (with Dividend Equivalents) Grant Agreement for Non-Employee Directors under 2024 Long-Term Incentive Plan

31.1			Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2			Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1			Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2			Certification of Chief Financial Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101			The following materials from Textron Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 29, 2024, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to the Consolidated Financial Statements.

104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		TEXTRON INC.

Date:	July 30, 2024	/s/ Mark S. Bamford
		Mark S. Bamford Vice President and Corporate Controller (principal accounting officer)

TEXTRON INC.
2024 LONG-TERM INCENTIVE PLAN

1. Purposes of the Plan

The purposes of the Plan are to (a) promote the long-term success of the Company and its Subsidiaries and to increase shareholder value by providing Eligible Individuals with incentives to contribute to the long-term growth and profitability of the Company and (b) assist the Company in attracting, retaining and motivating highly qualified individuals who are in a position to make significant contributions to the Company and its Subsidiaries.

After the Effective Date, no further Awards will be granted under the Prior Plan.

2. Definitions and Rules of Construction

(a) Definitions. For purposes of the Plan, the following capitalized words shall have the meanings set forth below:

“Affiliate” means any Parent or Subsidiary and any person that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the Company.

“Annual Meeting” means the Company’s Annual Meeting of Shareholders.

“Award” means an Option, Restricted Stock, Restricted Stock Unit, Stock Appreciation Right, Performance Stock, Performance Share Unit or Other Award granted by the Committee pursuant to the terms of the Plan.

“Award Document” means an agreement, certificate or other type or form of document or documentation approved by the Committee that sets forth the terms and conditions of an Award. An Award Document may be in paper, electronic or other media, may be limited to a notation on the books and records of the Company and, unless the Committee requires otherwise, need not be signed by a representative of the Company or a Participant.

“Beneficial Owner” and “Beneficially Owned” have the meaning set forth in Rule 13d-3 under the Exchange Act.

“Board” means the Board of Directors of the Company, as constituted from time to time.

“Cause” shall have the meaning set forth in the applicable Award Document.

“Change of Control” means:

(i) Any “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act other than the Company, any “person” who on the Effective Date was a director or officer of the Company, any trustee or other fiduciary holding Common Stock under an employee benefit plan of the Company or a Subsidiary, or any corporation which is owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of Common Stock, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Act) of more than thirty percent (30%) of the then outstanding voting stock of the Company, or

(ii) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board and any new director whose election by the Board or nomination

for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the two-year period (or whose election or nomination was previously so approved) cease for any reason to constitute a majority of the Board, or

(iii) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or

(iv) the consummation of the complete liquidation of the Company or the sale or disposition by the Company of all or substantially all of the Company’s assets.

For the avoidance of doubt, no change in ownership or control of a Subsidiary or business, whether through a sale of stock or assets or merger, consolidation, spin-off or otherwise, shall be a Change of Control hereunder unless the transaction triggers any of (i) through (iv) above with respect to the Company.

If an Award is subject to Section 409A of the Code, the payment or settlement of the Award shall accelerate upon a Change of Control only if the event also constitutes a “change in ownership,” “change in effective control,” or “change in the ownership of a substantial portion of the Company’s assets” as defined under Section 409A of the Code. Any adjustment to the Award that does not affect the time or form of payment of an Award that is subject to Section 409A or an Award’s exemption from the requirements of Section 409A (including accelerated vesting or adjustment of the amount of the Award) may occur upon a Change of Control as defined in the Plan, regardless of whether the event also constitutes a change in control under Section 409A.

“Code” means the Internal Revenue Code of 1986, as amended.

“Committee” means the Organization and Compensation Committee of the Board, except that, with respect to grants to Non-Employee Directors, “Committee” means the Nominating and Corporate Governance Committee of the Board, and, in each case, any successor committee thereto or any other committee appointed from time to time by the Board to administer the Plan, which committee shall meet the requirements of Section 16(b) of the Exchange Act and the applicable rules of the NYSE; provided, however, that, if any Committee member is found not to have met the qualification requirements of Section 16(b) of the Exchange Act, any actions taken or Awards granted by the Committee shall not be invalidated by such failure to so qualify.

“Common Stock” means the common stock of the Company, par value $0.125 per share, or such other class of share or other securities as may be applicable under Section 14 of the Plan.

“Company” means Textron Inc., a Delaware corporation, or any successor to all or substantially all of the Company’s business that adopts the Plan.

“Effective Date” means the date on which the Plan is approved by the shareholders of the Company.

“Eligible Individuals” means the individuals described in Section 4(a) of the Plan who are eligible for Awards under the Plan.

“Exchange Act” means the Securities Exchange Act of 1934.

“Fair Market Value” means, with respect to a share of Common Stock, the closing selling price of a share of Common Stock on the relevant date of determination as reported on the composite tape for securities listed on the NYSE, or such national securities exchange as may be designated by the Committee. If there were no sales on the relevant date, the fair market value shall equal the closing share price on the most recent day preceding the relevant date during which a sale occurred.

“Incentive Stock Option” means an Option that is intended to comply with the requirements of Section 422 of the Code.

“Non-Employee Director” means any member of the Board who is not an officer or employee of the Company or any Subsidiary.

“Nonqualified Stock Option” means an Option that is not an Incentive Stock Option.

“NYSE” means the New York Stock Exchange or any successor thereto.

“Option” means an Incentive Stock Option or Nonqualified Stock Option granted pursuant to Section 7 of the Plan.

“Other Award” means any form of Award other than an Option, Restricted Stock, Restricted Stock Unit, Performance Stock, Performance Share Unit, or Stock Appreciation Right, granted pursuant to Section 12 of the Plan.

“Parent” means a corporation which owns or beneficially owns a majority of the outstanding voting stock or voting power of the Company. Notwithstanding the above, with respect to an Incentive Stock Option, Parent shall have the same meaning as “parent corporation” set forth in Section 424(e) of the Code.

“Participant” means an Eligible Individual who has been granted an Award under the Plan.

“Performance Period” means the period established by the Committee and set forth in the applicable Award Document over which Performance Targets are measured.

“Performance Stock” means an Award of Shares, the grant, issuance, retention, vesting and/or settlement of which is based in whole or in part on achievement of Performance Targets, granted pursuant to Section 10(b) of the Plan.

“Performance Target” means the performance objectives (which may be objective or subjective) established by the Committee in its sole discretion for an Award with respect to a particular Performance Period. A Performance Target may be based on individual performance, performance of the Company (as a whole or with respect to one or more business segments, business units, divisions, departments, regions, functions or other organization units within the Company or its Subsidiaries), and/or other performance criteria established by the Committee. Performance Targets and underlying performance criteria may be stated in absolute or relative terms, and may be established or adjusted to include or exclude any components of any performance measure, including, but not limited to, special charges such as restructuring or impairment charges, debt refinancing costs, extraordinary or noncash items, unusual, nonrecurring, infrequently occurring or one-time events affecting the Company or its financial statements, the effects of acquisitions or divestitures or other items deemed not reflective of the Company’s core performance, or changes in law or accounting principles.

“Performance Share Unit” means an Award that grants a right to receive Shares or cash in the future based on achievement of Performance Targets, granted pursuant to Section 10(c) of the Plan.

“Plan” means this Textron Inc. 2024 Long-Term Incentive Plan, as set forth herein and amended or restated from time to time.

“Plan Limit” means the maximum aggregate number of Shares that may be issued for all purposes under the Plan as set forth in Section 5(a) of the Plan.

“Prior Plan” means the Textron Inc. 2015 Long-Term Incentive Plan, as amended from time to time.

“Restricted Stock” means one or more Shares granted pursuant to Section 8(b) of the Plan.

“Restricted Stock Unit” means a right to receive one or more Shares (or cash, if applicable) in the future granted pursuant to Section 8(c) of the Plan.

“Shares” means shares of Common Stock, as may be adjusted pursuant to Section 14(b).

“Stock Appreciation Right” means a right to receive all or some portion of the appreciation on Shares granted pursuant to Section 9 of the Plan.

“Subsidiary” means (i) a corporation or other entity with respect to which the Company, directly or indirectly, has the power, whether through the ownership of voting securities, by contract or otherwise, to elect at least a majority of the members of such corporation’s board of directors or analogous governing body, or (ii) any other corporation or other entity in which the Company, directly or indirectly, has an equity or similar interest greater than 50% and which the Committee designates as a Subsidiary for purposes of the Plan. For purposes of determining eligibility for the grant of Incentive Stock Options under the Plan, the term “Subsidiary” shall be defined in the manner required by Section 424(f) of the Code.

“Substitute Award” means any Award granted upon assumption of, or in substitution or exchange for, outstanding employee equity awards previously granted by a company or other entity acquired by the Company or with which the Company combines pursuant to the terms of an equity compensation plan that was approved by the shareholders of such company or other entity.

“Target Number” means, if applicable, the target number of Shares or cash value established by the Committee and set forth in the applicable Award Document.

(b) Rules of Construction. Whenever used in the Plan, (i) the masculine pronoun shall be deemed to include the feminine pronoun; (ii) the singular form of a word shall be deemed to include the plural form, unless the context requires otherwise; (iii) the word “include” shall mean “including but not limited to”; (iv) references to a statute or regulation or statutory or regulatory provision shall include the provision (or a successor provision of similar import) as currently in effect, as amended, or as reenacted, and to any regulations and other formal guidance of general applicability issued thereunder; (v) references to a law shall include any statute, regulation, rule, court case, or other requirement established by an exchange or an agency or other governmental authority, and (vi) applicable law shall include any tax law that imposes requirements in order to avoid adverse tax consequences. Unless the text indicates otherwise, references to sections are to sections of the Plan.

3. Administration

(a) Committee. The Plan shall be administered by the Committee, which shall have full power and authority, subject to the express provisions hereof, to:

(i) select the Participants from the Eligible Individuals who are employees;

(ii) grant Awards in accordance with the Plan;

(iii) determine the number of Shares subject to each Award or the cash amount payable in connection with an Award;

(iv) determine the terms and conditions of each Award, including those related to term, permissible methods of exercise, vesting, cancellation, payment, settlement, exercisability, Performance Periods, Performance Targets, and the effect, if any, of a Participant’s termination of employment with the Company or any of its Subsidiaries or, subject to Section 6(d), a Change of Control of the Company;

(v) subject to Sections 6 (Awards in General), 16 (restrictions on amendment and termination) and 17(e) (Section 409A of the Code), amend the terms and conditions of an Award after the granting thereof;

(vi) specify and approve the provisions of the Award Documents delivered to Participants in connection with their Awards;

(vii) construe and interpret any Award Document delivered under the Plan;

(viii) make factual determinations in connection with the administration or interpretation of the Plan;

(ix) adopt, prescribe, amend, waive and rescind administrative regulations, rules and procedures relating to the Plan;

(x) employ such legal counsel, independent auditors and consultants as it deems desirable for the administration of the Plan and to rely upon any advice, opinion or computation received therefrom;

(xi) vary the terms of Awards to Participants in non-US jurisdictions to take account of local tax and securities law and other regulatory requirements or to procure favorable tax treatment for Participants;

(xii) correct any defects, supply any omission or reconcile any ambiguity or inconsistency in any Award Document or the Plan; and

(xiii) make all other determinations and take any other action desirable or necessary to interpret, construe, administer or implement properly the provisions of the Plan or any Award Document. so as to avoid unanticipated consequences or address unanticipated events (including any temporary closure of the stock exchange, disruption of communications or natural catastrophe) deemed by the Committee to be inconsistent with the purposes of the Plan or any Award Document, provided that no such action shall be taken absent stockholder approval to the extent required under Section 17.

(b) Plan Construction and Interpretation. The Committee shall have full power and authority, subject to the express provisions hereof, to construe and interpret the Plan.

(c) Determinations of Committee Final and Binding. All determinations by the Committee in carrying out and administering the Plan and in construing and interpreting the Plan shall be made in the Committee’s sole discretion and shall be final, binding and conclusive for all purposes and upon all persons interested herein.

(d) Delegation of Authority. To the extent not prohibited by applicable laws, rules and regulations, the Committee may, from time to time, delegate some or all of its authority under the Plan to a subcommittee or subcommittees thereof, or to one or more officers or employees of the Company, as it deems necessary, appropriate or advisable under such conditions or limitations as it may set at the

time of such delegation or thereafter; provided, however, that the Committee may not delegate its authority (i) with respect to Awards granted to or held by Non-Employee Directors or employees who (at the time of any action) are subject to the reporting rules under Section 16(a) of the Exchange Act or (ii) to a person or body to make Awards to themselves or (iii) pursuant to Section 17 of the Plan. For purposes of the Plan, reference to the Committee shall be deemed to refer to any subcommittee, subcommittees, officer, officers, or employee or employees to whom the Committee delegates authority as permitted by this Section 3(d).

(e) Liability of Committee. Subject to applicable laws, rules and regulations: (i) no member of the Board or Committee (or its delegates) shall be liable for any good faith action or determination made in connection with the operation, administration or interpretation of the Plan and (ii) the members of the Board or the Committee (and its delegates) shall be entitled to indemnification and reimbursement in the manner provided in the Company’s Restated Certificate of Incorporation as it may be amended from time to time. In the performance of its responsibilities with respect to the Plan, the Committee shall be entitled to rely upon information and/or advice furnished by the Company’s officers or employees, the Company’s accountants, the Company’s counsel and any other party the Committee deems necessary, and no member of the Committee shall be liable for any action taken or not taken in reliance upon any such information and/or advice.

(f) Action by the Board. Anything in the Plan to the contrary notwithstanding, subject to applicable laws, rules and regulations, any authority or responsibility that, under the terms of the Plan, may be exercised by the Committee may alternatively be exercised by the Board.

4. Eligibility

(a) Eligible Individuals. Awards may be granted to employees and Non-Employee Directors of the Company or any of its Subsidiaries; provided, however, that only employees of the Company or a Parent or Subsidiary may be granted Incentive Stock Options. The Committee shall have the authority to select the Eligible Individuals to whom Awards may be granted and to determine the type, number and terms of Awards to be granted to each such Participant. Under the Plan, references to “employment” or “employed” include service of Participants who are Non-Employee Directors, except for purposes of determining eligibility to be granted Incentive Stock Options.

(b) Grants to Participants. No obligation to grant any Eligible Individual an Award or to designate an Eligible Individual as a Participant shall arise solely by reason of such Eligible Individual having received a prior Award or having been previously designated as a Participant. A Participant may be granted more than one Award, and an Eligible Individual may be designated as a Participant for overlapping periods of time.

5. Shares Subject to the Plan

(a) Plan Limit. Subject to adjustment in accordance with Section 14 of the Plan, the maximum aggregate number of Shares that may be issued for all purposes under the Plan shall be 10,000,000, plus any Shares subject to awards granted under the Prior Plan that after the Effective Date cease to be subject to such awards due to cancellation, forfeiture, or expiration of such awards. Notwithstanding anything to the contrary herein, the maximum number of Shares that may be issued for all purposes under the Plan shall be reduced by one share for every share subject to an award granted under the Prior Plan after March 2, 2024 and prior to the Effective Date. Shares to be issued under the Plan may be authorized and unissued shares, issued shares that have been reacquired by the Company (in the open-market or in private transactions) and that are being held in treasury, or a combination thereof. No more than 10,000,000 Shares may be issued pursuant to Incentive Stock Options.

(b) Rules Applicable to Determining Shares Available for Issuance. The number of Shares remaining available for issuance will be reduced by the number of Shares subject to outstanding Awards that are both denominated and intended to be settled in Shares and, for all other awards, by the number of Shares, if any, actually delivered upon settlement or payment of the Award. For purposes of determining the number of Shares that remain available for issuance under the Plan, the following Shares will not be added back to the Plan Limit: (i) the number of Shares that are tendered by a Participant or withheld by the Company to pay the exercise price of an Option or Stock Appreciation Right or to satisfy the Participant’s tax withholding obligations in connection with the exercise or settlement of an Award, (ii) Shares that are purchased on the open market using the proceeds from exercise of an Option, and (iii) all of the Shares covered by a stock-settled Stock Appreciation Right (to the extent exercised). For purposes of determining the number of Shares that remain available for issuance under the Plan, the number of Shares corresponding to Awards that are both denominated and intended to be settled in Shares under the Plan that are forfeited or canceled or otherwise expire for any reason without having been exercised or settled, or that are settled through issuance of consideration other than Shares (including cash), shall be added back to the Plan Limit and again be available for the grant of Awards; provided, however, that this provision shall not be applicable with respect to (i) the cancellation of a Stock Appreciation Right granted in tandem with an Option upon the exercise of the Option or (ii) the cancellation of an Option granted in tandem with a Stock Appreciation Right upon the exercise of the Stock Appreciation Right.

(c) Special Limits. Anything to the contrary in Section 5(a) above notwithstanding, but subject to adjustment under Sections 5(b) and 13 of the Plan, the following special limits shall apply to Shares available for Awards under the Plan:

(i) the maximum number of Shares that may be issued pursuant to awards of Restricted Stock, Restricted Stock Units, Performance Stock, Performance Share Units and Other Awards that are payable in Shares granted under the Plan shall equal 3,127,000 Shares in the aggregate, plus any Shares subject to awards of Restricted Stock, Restricted Stock Units, Performance Stock, Performance Share Units and Other Awards that are payable in Shares granted under the Prior Plan that after the Effective Date cease to be subject to such awards on account of cancellation, forfeiture, or expiration of such awards.

(ii) the value of Awards (measured as of the date of grant based on the grant date fair value for financial reporting purposes) granted to a Non-Employee Director in any one calendar year shall not exceed $500,000; and

(iii) Except with respect to a maximum of five percent (5%) of the aggregate number of Shares authorized for issuance under the Plan, Awards of Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Stock, Performance Share Units, and any other stock-based Awards shall provide for a minimum vesting period of at least one year from the grant date of the Award; provided that (i) the Committee may permit, or an Award Document may provide for, acceleration of vesting as described in Section 6 or in the event of a Participant’s termination of employment due to death or disability; and (ii) the foregoing limit shall not apply to substitute awards.

(d) Any Shares underlying Substitute Awards shall not be counted against the number of Shares remaining for issuance and shall not be subject to Section 5(c).

6. Awards in General

(a) Types of Awards. Awards under the Plan may consist of Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Stock, Performance Share Units and Other Awards.

Any Award described in Sections 7 through 11 of the Plan may be granted singly or in combination or tandem with any other Award, as the Committee may determine. Awards under the Plan may be made in combination with, in replacement of, or as alternatives to awards or rights under any other compensation or benefit plan of the Company, including the plan of any acquired entity.

(b) Terms Set Forth in Award Document. The terms and conditions of each Award shall be set forth in an Award Document in a form approved by the Committee for such Award, which Award Document shall contain terms and conditions consistent with the Plan. The terms of Awards may vary among Participants, and the Plan does not impose upon the Committee any requirement to make Awards subject to uniform terms. Accordingly, the terms of individual Award Documents may vary.

(c) Termination of Employment. The Committee shall specify at or after the time of grant of an Award the provisions governing the disposition of an Award in the event of a Participant’s termination of employment with the Company or any of its Subsidiaries (including in connection with a divestiture of a Subsidiary). Subject to applicable laws, rules and regulations, in connection with a Participant’s termination of employment, the Committee shall have the discretion to accelerate the vesting, exercisability or settlement of, eliminate the restrictions and conditions applicable to, alter the form of payment, or extend the post-termination exercise period of an outstanding Award. Such provisions may be specified in the applicable Award Document or determined at a subsequent time.

(d) Change of Control. (i) The Committee shall have full authority to determine the effect, if any, of a Change of Control on the vesting, exercisability, settlement, payment or lapse of restrictions applicable to an Award, which effect may be specified in the applicable Award Document or determined at a subsequent time. Subject to applicable laws, rules and regulations, the Board or the Committee shall, at any time prior to, coincident with, or after the effective time of a Change of Control, take such actions as it may consider appropriate, including: (A) providing for the acceleration of any vesting conditions relating to the exercise or settlement of an Award or that an Award shall terminate or expire unless exercised or settled in full on or before a date fixed by the Committee; (B) making such adjustments to the Awards then outstanding as the Committee deems appropriate to reflect such Change of Control; (C) causing the Awards then outstanding to be assumed, or new rights substituted therefor, by the surviving corporation in such Change of Control; or (D) permitting or requiring Participants to surrender outstanding Options and Stock Appreciation Rights in exchange for a cash payment equal to the difference, if any, between the highest price paid for a Share in the Change of Control transaction and the exercise price of the Award. If an Award is subject to Section 409A of the Code, the Committee shall have discretion to alter the terms of the Award only to the extent that the alteration would not cause the Award to fail to satisfy the requirements of Section 409A. In addition, except as otherwise specified in an Award Document (or a Participant’s written employment agreement with the Company or any Subsidiary) if a Participant’s employment with the Company and Subsidiaries is terminated involuntarily without Cause, within two years after a Change of Control:

(1) any and all Options and Stock Appreciation Rights outstanding as of the effective date of the Participant’s termination shall become immediately exercisable;

(2) any restrictions imposed on Restricted Stock and Restricted Stock Units outstanding as of the effective date of the Participant’s termination shall lapse;

(3) the Performance Targets with respect to all Performance Share Units, Performance Stock and other performance-based Awards granted pursuant to Sections 6(g) or 10 outstanding as of the effective date of the Participant’s termination shall be deemed to have been attained at the specified target level of performance;

(4) all Awards denominated in Shares outstanding as of the effective date of the Participant’s termination shall be immediately vested; and

(5) any Award that became earned or vested as a result of the Participant’s termination or the Change of Control shall be paid in full within 30 days after the vesting date (unless the payment would constitute an impermissible acceleration under Section 409A of the Code, in which case the payment shall be made on the original distribution date).

To the extent provided under the applicable Award Document, resignation by a Participant for “good reason” (as defined in the Award Document) shall be treated as an involuntary termination of the Participant’s employment without Cause.

(ii) Notwithstanding any other provision of the Plan or any Award Document, the provisions of this Section 6(d) may not be terminated, amended, or modified upon or after a Change of Control in a manner that would adversely affect a Participant’s rights with respect to an outstanding Award without the prior written consent of the Participant. Subject to Section 17 and the requirements of Section 409A of the Code, the Board, upon recommendation of the Committee, may terminate, amend or modify this Section 6(d) at any time and from time to time prior to the approval by the shareholders of the Company of a transaction which would result in a Change of Control (or, if earlier, the occurrence of a Change of Control).

(e) Dividends and Dividend Equivalents. Participants holding Awards may, if the Committee so determines, be credited with dividends or dividend equivalents in respect of the Shares underlying Awards, in a manner determined by the Committee in its sole discretion. Such dividends or dividend equivalents may be subject to such restrictions as the Committee deems appropriate and the Committee, in its sole discretion, may determine the form of payment of dividends or dividend equivalents, including by cash or issuance of Shares, Restricted Stock, Restricted Stock Units or other Awards. Notwithstanding the foregoing, (i) in no event will dividends or dividend equivalents be credited or paid in respect of Options or SARs, (ii) in no event will dividends or dividend equivalents be paid in respect of any Award that is not yet vested and (iii) dividends or dividend equivalents credited in respect of an Award that is not yet vested shall be subject to the same restrictions and risk of forfeiture as the underlying Award, and shall be paid or settled at the same time as Shares on which they were credited are paid or settled under the Award.

(f) Rights of a Shareholder. A Participant shall have no rights as a shareholder with respect to Shares covered by an Award (including voting rights) until the date the Participant or his or her nominee becomes the holder of record of such Shares. No adjustment shall be made for dividends or other rights for which the record date is prior to such date, except as provided in Section 14.

(g) Performance-Based Awards. The Committee may determine whether the grant, issuance, retention, vesting and/or settlement of any Award (or portion of an Award) under the Plan will be conditioned in whole or in part on the achievement of one or more Performance Targets. A Performance Target may include a threshold level of performance below which no payout or vesting will occur, target levels of performance at which a full payout or full vesting will occur, and/or a maximum payout amount for exemplary performance.

(h) Deferrals. No Option or Stock Appreciation Right shall include a right to defer gain upon exercise or any other deferral feature. Deferrals of other Awards shall be subject to provisions of the Award Document or another plan document that satisfies the requirements of Section 409A of the Code.

(i) Repricing of Options and Stock Appreciation Rights. Notwithstanding any other provision of the Plan, except as may be specifically authorized by the Company’s shareholders, at any time when the exercise price of an Option or Stock Appreciation Right is above the Fair Market Value of a Share, the Company shall not reduce the exercise price of such Option or Stock Appreciation Right and shall not exchange such Option or Stock Appreciation Right for a new Award with a lower (or no) exercise price or for cash. The foregoing shall not (i) prevent adjustments pursuant to Section 14 or (ii) apply to grants of Substitute Awards.

(j) Clawback Provision. This Section 6(j) sets forth the Company’s recovery policy in respect of Erroneously Awarded Compensation (as defined below) and shall be interpreted consistently with the intent to comply with the requirements of Section 303A.14 of NYSE’s Listed Company Manual (the “Listed Company Manual”).

(i) Definitions. Unless the context otherwise requires, the following terms have the meanings set forth in the Listed Company Manual, which is as follows:

“Executive Officer” means the Company’s principal executive officer (referred to in the Listed Company Manual as “president”), principal financial officer, principal accounting officer (or if there is no such accounting officer, the controller), any vice-president of the Company in charge of a principal business unit, division, or function, any other officer who performs a policy-making function, or any other person who performs similar policy-making functions for the Company.

“Financial Reporting Measures” are measures that are determined and presented in accordance with the accounting principles used in preparing the Company’s financial statements, and any measures that are derived wholly or in part from such measures. Stock price and total shareholder return are also financial reporting measures.

“Incentive-Based Compensation” is any Award that is granted, earned, or vested based wholly or in part upon the attainment of a Financial Reporting Measure.

“Received” Incentive-Based Compensation is deemed Received in the Company’s fiscal period during which the Financial Reporting Measure specified in the Incentive-Based Compensation award is attained, even if the payment or grant of the Incentive-Based Compensation occurs after the end of that period.

(ii) Recovery Policy

It is the policy of the Company that, if the Company is required to prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under the securities laws, including any required accounting restatement to correct an error in previously issued financial statements that is material to the previously issued financial statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period, the Company shall recover reasonably promptly from each Executive Officer the amount, if any, of Incentive-Based Compensation Received by an Executive Officer that exceeds the amount of Incentive-Based Compensation that otherwise would have been Received had it been determined based on the restated amounts (“Erroneously Awarded Compensation”), computed without regard to any

taxes paid. For Incentive-Based Compensation based on stock price or total shareholder return, where the amount of Erroneously Awarded Compensation is not subject to mathematical recalculation directly from the information in an accounting restatement, the amount of Erroneously Awarded Compensation shall be based on a reasonable estimate of the effect of the accounting restatement on the stock price or total shareholder return upon which the Incentive-Based Compensation was Received.

This Recovery Policy applies to all Incentive-Based Compensation Received by a person: (A) after beginning service as an Executive Officer; (B) who served as an Executive Officer at any time during the performance period for that Incentive-Based Compensation; (C) while the Company has a class of securities listed on a national securities exchange or a national securities association; (D) during the three completed fiscal years immediately preceding the date that the Company is required to prepare an accounting restatement as described in this Section 6.1(j) and, if applicable, to any transition period as set forth in Section 303A.14.

(iii) Additional Rules

(A) For purposes of this Section 6(j), the Company shall be deemed to be required to prepare an accounting restatement as of the earlier of (I) the date the Board or a committee thereof, or an officer of the Company authorized to take such action if board action is not required, concludes or reasonably should have concluded that a restatement is required or (II) the date a court, regulator, or other legally authorized body directs the Company to prepare a restatement.

(B) Notwithstanding any other provision of this Section 6(j), the Company shall not be required to recover Erroneously Awarded Compensation to the extent that an exception set forth in Section 303A.14 (c)(1)(iv) of the Listed Company Manual (relating to impracticability by reason of expense to recover, violations of certain laws, or anti-alienation rules for tax-qualified plans) applies.

(C) The Company shall not indemnify any Executive Officer or former Executive Officer against the loss of Erroneously Awarded Compensation.

(D) The Committee shall maintain documentation related to enforcement of this Recovery Policy in accordance with the requirements of the Listed Company Manual.

(E) The Company’s recovery obligation under this Section 6(j) shall not be affected by if or when restated financial statements are filed.

(iv) Other Policies

In addition to the Recovery Policy set forth above, all Awards under the Plan are subject to all other recovery policies and clawback procedures of the Company, each as in effect and as amended from time to time.

7. Options

(a) General. The Committee, in its discretion, may grant Options to Eligible Individuals and, with respect to Option grants to employees, shall determine whether such Options shall be Incentive Stock Options or Nonqualified Stock Options. Each Option shall be evidenced by an Award Document that shall expressly identify the Option as an Incentive Stock Option or Nonqualified Stock Option and be in such form and contain such provisions as the Committee shall from time to time deem appropriate.

(b) Exercise Price. The exercise price per Share of an Option shall be fixed by the Committee at the time of grant or shall be determined by a method specified by the Committee at the time of grant. In no event shall the exercise price per Share of an Option be less than one hundred percent (100%) of the Fair Market Value of a Share on the date of grant; provided, however that the exercise price of a Substitute Award granted as an Option shall be determined in accordance with Section 409A of the Code and, with respect to Incentive Stock Options, Section 424 of the Code, and may be less than one hundred percent (100%) of the Fair Market Value.

(c) Term. An Option shall be effective for such term as shall be determined by the Committee and as set forth in the Award Document relating to such Option, and the Committee may extend the term of an Option after the time of grant; provided, however, that the term of an Option may in no event extend beyond the tenth (10th) anniversary of the date of grant of such Option.

(d) Exercise; Payment of Exercise Price. Options shall be exercised by delivery of a notice of exercise in a form approved by the Company. Subject to the provisions of the applicable Award Document, the exercise price of an Option may be paid (i) in cash or cash equivalents, (ii) by actual delivery or attestation to ownership of freely transferable Shares already owned by the person exercising the Option, (iii) by a combination of cash and Shares equal in value to the exercise price, (iv) through net share settlement or similar procedure involving the withholding of Shares subject to the Option with a value equal to the exercise price or (v) by such other means as the Committee may authorize. In accordance with the rules and procedures authorized by the Committee for this purpose, the Option may also be exercised through a “cashless exercise” procedure authorized by the Committee from time to time that permits Participants to exercise Options by delivering irrevocable instructions to a broker to deliver promptly to the Company the amount necessary to pay the exercise price and the amount of any required tax or other withholding obligations or such other procedures determined by the Company from time to time.

(e) Incentive Stock Options. The exercise price per Share of an Incentive Stock Option shall be fixed by the Committee at the time of grant or shall be determined by a method specified by the Committee at the time of grant, but in no event shall the exercise price per Share of an Incentive Stock Option be less than one hundred percent (100%) of the Fair Market Value of a Share on the date of grant. No Incentive Stock Option may be issued pursuant to the Plan to any individual who, at the time the Incentive Stock Option is granted, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries, unless (i) the exercise price per Share determined as of the date of grant is at least one hundred ten percent (110%) of the Fair Market Value on the date of grant of a Share and (ii) the Incentive Stock Option is not exercisable more than five (5) years from the date of grant thereof. No Participant shall be granted any

Incentive Stock Option which would result in such Participant receiving a grant of Incentive Stock Options that would have an aggregate Fair Market Value in excess of one hundred thousand dollars ($100,000), determined as of the time of grant, that would be exercisable for the first time by such Participant during any calendar year. The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code.

8. Restricted Stock and Restricted Stock Units

(a) Restricted Stock. The Committee, in its discretion, may grant Restricted Stock to Eligible Individuals. An Award of Restricted Stock shall consist of one or more Shares granted to an Eligible Individual, and shall be subject to the terms, conditions and restrictions set forth in the Plan and established by the Committee in connection with the Award and specified in the applicable Award Document. Restricted Stock may, among other things, be subject to restrictions on transferability, vesting requirements or other specified circumstances under which it may be canceled.

(b) Restricted Stock Units. The Committee, in its discretion, may grant Restricted Stock Units to Eligible Individuals. A Restricted Stock Unit shall entitle a Participant to receive, subject to the terms, conditions and restrictions set forth in the Plan and the applicable Award Document, one or more Shares or cash in the amount of the Fair Market Value of the Shares. Restricted Stock Units may, among other things, be subject to restrictions on transferability, vesting requirements or other specified circumstances under which they may be canceled. If and when the cancellation provisions lapse, the Participant shall become entitled to receive at the time prescribed by the applicable Award Document (and subject to such additional conditions, if any, as prescribed herein) Shares or, if provided in the Award Document or at the sole discretion of the Committee, cash, or a combination of cash and Shares, with a value equal to the Fair Market Value of the Shares on the vesting date.

9. Stock Appreciation Rights

(a) General. The Committee, in its discretion, may grant Stock Appreciation Rights to Eligible Individuals. A Stock Appreciation Right shall entitle a Participant to receive, upon satisfaction of the conditions to payment specified in the applicable Award Document, an amount equal to the excess, if any, of the Fair Market Value on the exercise date of the number of Shares for which the Stock Appreciation Right is exercised over the grant price for such Stock Appreciation Right specified in the applicable Award Document. The grant price per share of Shares covered by a Stock Appreciation Right shall be fixed by the Committee at the time of grant or, alternatively, shall be determined by a method specified by the Committee at the time of grant, but in no event shall the grant price of a Stock Appreciation Right be less than one hundred percent (100%) of the Fair Market Value of a Share on the date of grant; provided, however, that the grant price of a Substitute Award granted as a Stock Appreciation Rights shall be in accordance with Section 409A of the Code and may be less than one hundred percent (100%) of the Fair Market Value. Payments to a Participant upon exercise of a Stock Appreciation Right may be made in cash or Shares, or a combination of cash and Shares having an aggregate Fair Market Value as of the date of exercise equal to the excess, if any, of the Fair Market Value on the exercise date of the number of Shares for which the Stock Appreciation Right is exercised over the grant price for such Stock Appreciation Right. The term of a Stock Appreciation Right settled in Shares shall not exceed ten (10) years.

(b) Stock Appreciation Rights in Tandem with Options. A Stock Appreciation Right granted in tandem with an Option may be granted either at the same time as such Option or subsequent thereto. If granted in tandem with an Option, a Stock Appreciation Right shall cover the same number of Shares as covered by the Option (or such lesser number of Shares as the Committee may determine) and shall be exercisable only at such time or times and to the extent the related Option shall be exercisable and shall

have the same term as the related Option. The grant price of a Stock Appreciation Right granted in tandem with an Option shall equal the per-share exercise price of the Option to which it relates. Upon exercise of a Stock Appreciation Right granted in tandem with an Option, the related Option shall be canceled automatically to the extent of the number of Shares covered by such exercise; conversely, if the related Option is exercised as to some or all of the Shares covered by the tandem grant, the tandem Stock Appreciation Right shall be canceled automatically to the extent of the number of Shares covered by the Option exercise.

10. Performance Stock and Performance Share Units

(a) Performance Stock. The Committee may grant Performance Stock to Eligible Individuals. An Award of Performance Stock shall consist of a Target Number of Shares granted to an Eligible Individual based on the achievement of Performance Targets over the applicable Performance Period, and shall be subject to the terms, conditions and restrictions set forth in the Plan and established by the Committee in connection with the Award and specified in the applicable Award Document.

(b) Performance Share Units. The Committee, in its discretion, may grant Performance Share Units to Eligible Individuals. A Performance Share Unit shall entitle a Participant to receive, subject to the terms, conditions and restrictions set forth in the Plan and established by the Committee in connection with the Award and specified in the applicable Award Document, a Target Number of Shares or cash based upon the achievement of Performance Targets over the applicable Performance Period. At the sole discretion of the Committee, Performance Share Units shall be settled through the delivery of Shares or cash, or a combination of Shares and cash.

11. Non-Employee Director Awards

(a) Annual Grant of RSUs to Non-Employee Directors. On December 3, 2019, the Board approved a program (the “Program”) under the Prior Plan for annual grants of Restricted Stock Units to Non-Employee Directors which Program will continue in effect and be implemented under this Plan. Pursuant to the Program, as of the date of the Annual Meeting for each year beginning after the Effective Date, each Non-Employee Director (each an “Eligible Director”) shall be granted Restricted Stock Units (the “Program RSUs”). The number of Program RSUs to be granted shall be established by resolution of the full Board from time to time, subject to the Plan’s limits. The terms of each Eligible Director’s Program RSUs shall be set forth in an Award Document.

(b) Off-Cycle Appointment. If an individual become an Eligible Director on a date other than the date of an Annual Meeting, such Eligible Director shall be granted a pro rata number of Program RSUs for the Eligible Director’s service until the next Annual Meeting.

(c) Vesting and Forfeiture of Unvested Program RSUs. The vesting date for each Program RSU granted at an Annual Meeting shall be the first anniversary of the date of the grant, and the vesting date for each Program RSU granted in respect of an off-cycle appointment shall be the first anniversary of the Annual Meeting immediately preceding the grant date. If an Eligible Director ceases to serve as a director of the Company before the vesting date of his or her Program RSUs, such unvested Program RSUs shall be immediately forfeited, and all rights of the former director with respect to such Program RSUs shall immediately terminate without any payment of consideration therefor; provided that the Program RSUs shall be fully vested if the Eligible Director’s term ends due to death or disability.

(d) Payment. Unless otherwise provided in an Award Document, Program RSUs shall be settled in Shares as soon as practicable after the applicable vesting date, unless deferred in accordance with subsection (e) below.

(e) Election to Defer Settlement of Program RSUs. Except as otherwise provided in an applicable Award Document, an Eligible Director may elect to defer settlement of his or her Program RSUs until a date determined by the Company that is within 60 days after the Eligible Director’s “separation from service”. Such deferral election shall be filed with the Company and irrevocable before the first day of the calendar year in which the affected RSUs are granted; provided that, for the year in which an individual first becomes eligible to defer compensation under a deferral arrangement involving the Company or any of its Affiliates, the election deadline shall be extended to the earlier of (i) the 30th day after the individual first becomes an Eligible Director or (ii) the day immediately preceding the grant date. For purposes of the Program, “separation from service” shall have the meaning prescribed by the Textron Inc. Deferred Income Plan for Non-Employee Directors, as amended.

12. Other Awards

The Committee shall have the authority to specify the terms and provisions of other forms of equity- or cash-based Awards not described above that the Committee determines to be consistent with the purpose of the Plan and the interests of the Company, which Awards may provide for cash payments or settlement in Shares.

13. Certain Restrictions

(a) Transfers. No Award shall be transferable other than pursuant to a beneficiary designation under Section 13(c), by last will and testament or by the laws of descent and distribution or, except in the case of an Incentive Stock Option, pursuant to a domestic relations order; provided, however, that the Committee may, subject to applicable laws, rules and regulations and such terms and conditions as it shall specify, permit the transfer of an Award, other than an Incentive Stock Option, for no consideration, to a member of the Participant’s family or household or to a trust, partnership, corporation, or similar vehicle the parties in interest in which are limited to the Participant and members of the Participant’s family or household, in each case, with respect to whom such Award or the exercise thereof (as applicable) is covered by an effective registration statement under the Securities Act of 1933 (collectively, the “Permitted Transferees”). Any Award transferred to a Permitted Transferee shall be further transferable only by last will and testament or the laws of descent and distribution or, for no consideration, to another Permitted Transferee of the Participant.

(b) Award Exercisable Only by Participant. During the lifetime of a Participant, an Award shall be exercisable only by the Participant or by a Permitted Transferee to whom such Award has been transferred in accordance with Section 13(a) above. The grant of an Award shall impose no obligation on a Participant to exercise or settle the Award.

(c) Beneficiary Designation. Subject to restrictions and procedures established by the Company, a Participant may, from time to time, name a beneficiary or beneficiaries to receive any benefit under the Plan in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, including any default designation, and will be effective only when filed by the Participant (in such form or manner as may be prescribed by the Company) and received by the Company. No beneficiary designation shall be effective if received by the Company after the Participant’s death. In the absence of a valid designation by the Participant under the Plan, the Participant’s beneficiary shall be his beneficiary under the Company’s group life insurance plan or, if none, the Participant’s estate. If a beneficiary determined under this paragraph does not survive the Participant, or such designated beneficiary is legally impaired or prohibited from receiving the benefits under an Award, the Participant’s beneficiary shall be determined as if such deceased or disqualified beneficiary were never designated.

14. Recapitalization or Reorganization

(a) Authority of the Company and Shareholders. The existence of the Plan, the Award Documents and the Awards granted hereunder shall not affect or restrict in any way the right or power of the Company or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or business, any merger or consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Shares or the rights thereof or which are convertible into or exchangeable for Shares, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

(b) Change in Capitalization. Notwithstanding any provision of the Plan or any Award Document, the number and kind of Shares authorized for issuance under Section 5 of the Plan, including the maximum number of Shares available under the special limits provided for in Section 5(c), shall be equitably adjusted as determined by the Committee in the event of a stock split, reverse stock split, stock dividend, recapitalization, reorganization, partial or complete liquidation, reclassification, merger, consolidation, separation, extraordinary cash dividend, split-up, spin-off, combination, exchange of Shares, warrants or rights offering to purchase Shares at a price substantially below Fair Market Value, or any other corporate event or distribution of stock or property of the Company affecting the Shares in order to preserve, but not increase, the benefits or potential benefits intended to be made available under the Plan. In addition, upon the occurrence of any of the foregoing events, the number and kind of Shares subject to any outstanding Award and the exercise price per Share (or the grant price per Share, as the case may be), if any, under any outstanding Award shall be equitably adjusted as determined by the Committee in order to preserve the benefits or potential benefits intended to be made available to Participants. Unless otherwise determined by the Committee, such adjusted Awards shall be subject to the same restrictions and vesting or settlement schedule to which the underlying Award is subject.

15. Term of the Plan

Unless earlier terminated pursuant to Section 17, the Plan shall terminate on the tenth (10th) anniversary of the Effective Date, except with respect to Awards then outstanding. No Awards may be granted under the Plan after the tenth (10th) anniversary of the Effective Date, and no Incentive Stock Option may be granted under the Plan after the tenth (10th) anniversary of the date on which the Plan was adopted by the Board.

16. Effective Date

The Plan shall become effective on the Effective Date.

17. Amendment and Termination

Subject to applicable laws, rules and regulations, the Board may at any time terminate or, from time to time, amend, modify or suspend the Plan; provided, however, that no termination, amendment, modification or suspension shall (a) be effective without the approval of the shareholders of the Company if such approval is required under applicable laws, rules and regulations, including the rules of NYSE, or (b) materially and adversely alter or impair the rights of a Participant in any Award previously made under the Plan without the consent of the holder thereof. Notwithstanding the foregoing, the Board shall have broad authority to amend the Plan or any Award under the Plan without the consent of a Participant to the extent it deems necessary or desirable (i) to comply with, take into account changes in, or interpretations of, applicable tax laws, securities laws, employment laws, accounting rules and other applicable laws, rules and regulations, (ii) to take into account unusual or nonrecurring events or market conditions (including the events described in Section 14(b)), or (iii) to take into account

significant acquisitions or dispositions of assets or other property by the Company. To the extent permitted by applicable law, the Board may (I) make a non-exclusive written delegation of its authority to amend the Plan to the Committee or to one or more officers of the Company and (II) authorize the Committee or delegated officers to make a further delegation of their authority to amend the Plan.

18. Miscellaneous

(a) Tax Withholding. The Company or a Subsidiary, as appropriate, may require any individual entitled to receive a payment of an Award to remit to the Company, prior to payment, an amount sufficient to satisfy any applicable tax withholding requirements. In the case of an Award payable in Shares, the Company or a Subsidiary, as appropriate, may permit or require a Participant to satisfy, in whole or in part, such obligation to remit taxes by the Company withholding Shares that would otherwise be received by such individual or repurchasing Shares that were issued to the Participant to satisfy the (i) minimum statutory withholding rates within the United States, or (ii) in accordance with local tax jurisdictions outside the United States, as applicable, for any applicable tax withholding purposes, in accordance with all applicable laws and pursuant to such rules as the Committee may establish from time to time. The Company or a Subsidiary, as appropriate, shall also have the right to deduct from all cash payments made to a Participant (whether or not such payment is made in connection with an Award) any applicable taxes required to be withheld with respect to such payments. Regardless of the amount withheld or reported, the Participant or beneficiary shall be solely responsible for all taxes in respect of Awards (including taxes on imputed income), except the employer’s share of employment taxes.

(b) No Right to Awards or Employment. No person shall have any claim or right to receive Awards under the Plan. Neither the Plan, the grant of Awards under the Plan nor any action taken or omitted to be taken under the Plan shall be deemed to create or confer on any Eligible Individual any right to be retained in the employ or other service of the Company or any Subsidiary or other affiliate thereof, or to interfere with or to limit in any way the right of the Company or any Subsidiary or other affiliate thereof to terminate the employment or other service of such Eligible Individual at any time. No Award shall constitute salary or contractual compensation for the year of grant, any later year or any other period of time. Payments received by a Participant under any Award made pursuant to the Plan shall not be included in, nor have any effect on, the determination of employment-related rights or benefits under any other employee benefit plan or similar arrangement provided by the Company and the Subsidiaries, unless otherwise specifically provided for under the terms of such plan or arrangement or by the Committee.

(c) Securities Law Restrictions. An Award may not be exercised or settled, and no Shares may be issued in connection with an Award, unless the issuance of such Shares (i) has been registered under the Securities Act of 1933, (ii) has qualified under applicable state “blue sky” laws (or the Company has determined that an exemption from registration and from qualification under such state “blue sky” laws is available) and (iii) complies with all applicable foreign securities laws. All certificates for Shares delivered under the Plan shall be subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any exchange upon which the Shares are then listed, and any applicable securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

(d) Section 409A of the Code. The Plan is intended, and shall be interpreted, to provide compensation that is exempt from Section 409A, or that complies with the applicable requirements of Section 409A. If any provision of the Plan or an Award Document contravenes any regulations or guidance promulgated under Section 409A of the Code or would cause an Award to be subject to

additional taxes, accelerated taxation, interest and/or penalties under Section 409A of the Code, such provision of the Plan or Award Document may be modified by the Committee without the consent of the Participant in any manner the Committee deems reasonable or necessary. In making such modifications the Committee shall attempt, but shall not be obligated, to maintain, to the maximum extent practicable, the original intent of the applicable provision without contravening the provisions of Section 409A of the Code. Moreover, any discretionary authority that the Committee may have pursuant to the Plan shall not be applicable to an Award that is subject to Section 409A of the Code to the extent such discretionary authority would contravene Section 409A of the Code or the guidance promulgated thereunder.

(e) Awards to Individuals Subject to Laws of a Jurisdiction Outside of the United States. To the extent that Awards under the Plan are awarded to Eligible Individuals who are domiciled or reside outside of the United States or to persons who are domiciled or reside in the United States but who are subject to the tax laws of a jurisdiction outside of the United States, the Committee may adjust the terms of the Awards granted hereunder to such person (i) to comply with the laws, rules and regulations of such jurisdiction and (ii) to permit the grant of the Award not to be a taxable event to the Participant. The authority granted under the previous sentence shall include the discretion for the Committee to adopt, on behalf of the Company, one or more sub-plans applicable to separate classes of Eligible Individuals who are subject to the laws of jurisdictions outside of the United States.

(f) Satisfaction of Obligations. Subject to applicable law, the Company may apply any cash, Shares, securities or other consideration received upon exercise or settlement of an Award to any obligations a Participant owes to the Company and the Subsidiaries in connection with the Plan or otherwise, including any tax obligations or obligations under a currency facility established in connection with the Plan.

(g) No Limitation on Corporate Actions. Nothing contained in the Plan shall be construed to prevent the Company or any Subsidiary from taking any corporate action, whether or not such action would have an adverse effect on any Awards made under the Plan. No Participant, beneficiary or other person shall have any claim against the Company or any Subsidiary as a result of any such action.

(h) Unfunded Plan. The Plan is intended to constitute an unfunded plan for incentive compensation. Prior to the issuance of Shares, cash or other form of payment in connection with an Award, nothing contained herein shall give any Participant any rights that are greater than those of a general unsecured creditor of the Company. The Committee may, but is not obligated to, authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Shares with respect to awards hereunder.

(i) Successors. All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

(j) Application of Funds. The proceeds received by the Company from the sale of Shares pursuant to Awards will be used for general corporate purposes.

(k) Award Document. In the event of any conflict or inconsistency between the Plan and any Award Document, the Plan shall govern and the Award Document shall be interpreted to minimize or eliminate any such conflict or inconsistency.

(l) Headings. The headings of Sections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Plan.

(m) Severability. If any provision of this Plan is held unenforceable, the remainder of the Plan shall continue in full force and effect without regard to such unenforceable provision and shall be applied as though the unenforceable provision were not contained in the Plan.

(n) Expenses. The costs and expenses of administering the Plan shall be borne by the Company.

(o) Governing Law. Except as to matters of federal law, the Plan and all actions taken thereunder shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to any conflict of law provisions that might otherwise point to a different jurisdiction.

(p) Compliance with Individual Tax Requirements. The Company does not warrant that the Plan will comply with Section 409A or any other provision of the Code with respect to any Participant or with respect to any payment. In no event shall the Company; any Subsidiary; any director, officer, or employee of the Company or a Subsidiary; or any member of the Committee be liable for any additional tax, interest, or penalty incurred by a Participant as a result of the Plan’s failure to satisfy the requirements of Section 409A of the Code or any other requirements of applicable tax laws.

NOTICE OF AWARD OF

STOCK SETTLED RESTRICTED STOCK UNITS

(WITH DIVIDEND EQUIVALENTS)

AND RESTRICTED STOCK UNIT AGREEMENT


Director Name: #ParticipantName# Grant Date: #GrantDate# Number of RSUs: #QuantityGranted#
Deferral Election. The director has elected [not] to defer settlement of this RSU award.
In the event of any inconsistency between the deferral election shown above and the director’s annual deferral election form, the annual deferral election form governs.

Pursuant to the Textron Inc. 2024 Long-Term Incentive Plan (collectively, the “Plan”), you (the “director”) have been awarded Restricted Stock Units (“RSUs”), each of which constitutes the right to receive a share of Common Stock of Textron Inc. (a “Share”). This RSU award is governed by the Restricted Stock Unit Terms and Conditions (“Terms and Conditions”) and the Plan, each of which is attached hereto.

The RSUs awarded include dividend equivalents which will accrue and be paid upon vesting of the RSUs. The RSUs are scheduled to vest on the first anniversary of the Grant Date.

As detailed in the Terms and Conditions, the Shares for vested RSUs will be issued to you either (i) if you elected not to defer settlement of this RSU award, as soon as practicable after the Period of Restriction ends, or (ii) if you elected to defer settlement of this RSU award, within 60 days after your Separation From Service.

You must accept this award by signing and returning a copy of this RSU award agreement to Textron. If you do not accept your RSU award prior to the vesting date (or prior to the date your service terminates for any reason, if earlier), your RSU award will be forfeited. Although Textron has completed the steps necessary to grant you this RSU

award, you cannot receive any payment under the RSU award unless you accept the RSU award before the deadline.

TEXTRON INC.

By: ______________________
E. Robert Lupone

Executive Vice President, General Counsel and Secretary

Date: #GrantDate#

By signing this RSU award agreement, you agree that this award is governed by the Terms and Conditions and the Plan, each of which is attached hereto. You acknowledge that you have read and understand these documents as they apply to your RSU award.

Agreed to and Accepted by:

DIRECTOR

By: #Signature#
Name: #ParticipantName#

Date: #AcceptanceDate#

TEXTRON INC. 2024 LONG-TERM INCENTIVE PLAN

NON-EMPLOYEE DIRECTOR AWARDS

RESTRICTED STOCK UNIT
TERMS AND CONDITIONS
(4/2024)

1.Award of RSUs. Pursuant to the Textron Inc. 2024 Long-Term Incentive Plan (collectively, the “Plan”), Textron has awarded to the director Restricted Stock Units (“RSUs”), subject to the Terms and Conditions set forth herein. The number of RSUs granted and the award date are recorded on the Administrator’s website for the Plan (and, for annual grants, on the director’s compensation statement).

2.Vesting Schedule. Subject to the Plan and the Terms and Conditions set forth herein, the RSUs will vest on the date set forth on the Notice of Award.

3.Settlement of RSUs. Textron will issue to the director the Shares for which the vesting conditions have been satisfied at the following time: (a) if the director did not timely file an irrevocable deferral election, as soon as practicable after the Period of Restriction ends, or (b) if the director timely filed an irrevocable deferral election, within sixty (60) days after the director’s Separation from Service. Shares may be issued in the form of a certificate or a notification to the director that the Shares are held in a book-entry account on the director’s behalf. Fractional Shares may be paid in cash.

4.Termination of Board Service, Exception for Death and Disability. If the director’s service with the Board ends for any reason before the end of the Period of Restriction, the director shall forfeit all RSUs for which the Period of Restriction has not yet ended, without payment therefor; provided that the RSUs shall be fully vested if the director’s service with the Board ends following continuous service to the date of the Annual Meeting next following the Grant Date, or the director’s service ends due to the director becoming Disabled or the director’s death. The number of Shares deliverable for RSUs shall not be adjusted for any delay caused by the time needed to validate the director’s status as Disabled or dead, or to authenticate a Beneficiary.

5.Change of Control. The Plan’s provisions regarding Change of Control apply to the RSUs. For purposes of applying such Change of Control provisions, references to termination of employment shall include the director’s termination of service to the Board, unless the context clearly demonstrates otherwise.

6.Corporate Changes. The number of RSUs awarded to the director hereunder shall be equitably adjusted as determined by the Committee in the event of a stock split, reverse stock split, stock dividend, recapitalization, reorganization, partial or complete liquidation, reclassification, merger, consolidation, separation, extraordinary cash dividend, split-up, spin-off, combination, exchange of Shares, warrants or rights offering to purchase Shares, or any other corporate event or

Restricted Stock Unit
Terms and Conditions

Page 1

distribution of stock or property of the Company affecting the Common Stock, in order to preserve the benefits or potential benefits intended to be made available to the director.

7.No Right to Continued Board Service. Nothing in these Terms and Conditions shall confer upon the director the right to continue service to the Board of Textron or any Subsidiary or affect any right of Textron, any Subsidiary, the Board or shareholders to terminate the service of the director.

8.Non-Assignability of RSUs. The RSUs shall not be assignable or transferable by the director, except to the extent (if at all) expressly permitted by the Plan. Any Shares issued under an RSU shall be freely transferable upon issuance.

9.Voting. The director shall not have voting rights with respect to the Shares underlying RSUs before the Shares are issued to the director.

10.Dividend Equivalents. If (and only if) the director’s award of RSUs includes dividend equivalents, the award shall entitle the director to receive an amount equal to any cash dividend declared with respect to the number of Shares represented by those RSUs, but only to the extent that the RSUs have not been issued as Shares, converted to a cash payment amount, or terminated or forfeited before the record date for such dividend. Dividend equivalents on unvested RSUs shall be subject to the same vesting and forfeiture conditions as the RSUs and shall be paid (if vested) as soon as practicable after the Period of Restriction ends, provided that, if the director timely filed an irrevocable deferral election with respect to the RSUs, dividend equivalents shall be paid annually, as determined by Textron, until Shares have been issued with respect to the RSUs.

11.Administration. In accordance with the Plan, the Committee may, from time to time, delegate some or all of its authority under the Plan to a subcommittee or to one or more officers or employees of Textron.

12.Section 409A. The terms and conditions of the RSUs shall be interpreted in a manner consistent with the intent to be exempt from or comply with the requirements of Section 409A of the Internal Revenue Code. For example, the phrase “as soon as practicable” and similar phrases with respect to payment dates shall be interpreted and administered consistent with the intent that, subject to the director (or Beneficiary) providing all required information, payment shall not be delayed beyond the latest date permitted by Section 409A.

13.RSUs Subject to Plan. The RSUs shall be subject to the terms and conditions of the Plan in all respects, including the Plan provisions regarding Change of Control. Each term that is used but not defined herein shall have the meaning set forth in the Plan.

Restricted Stock Unit
Terms and Conditions

Page 2

DEFINITIONS

“Administrator”

“Administrator” shall mean the third-party administrator appointed by Textron.

“Beneficiary”

“Beneficiary” shall mean the beneficiary, if any, designated by the director on a form that (i) is acceptable to Textron, (ii) references the RSUs or the Plan, and (iii) is delivered to Textron or its designee before the director’s death, or, if none, the director’s estate.

“Committee”

“Committee” has the meaning set forth in the Plan.

“Disability”

“Disability” shall mean the inability of the director to engage in any substantial gainful activity due to injury, illness, disease, or bodily or mental infirmity which can be expected to result in death or is expected to be permanent, and which results in the director’s being “disabled” within the meaning of Section 409A(a)(2)(C) of the Internal Revenue Code. An individual shall not be considered disabled unless the director furnishes proof of the existence thereof. Textron may require the existence or non-existence of a disability to be determined by a physician whose selection is mutually agreed upon by the director (or his or her representatives) and Textron.

“Period of Restriction”

The “Period of Restriction” means, for any RSU, the period prior to the date on which such RSU vests and the holder becomes entitled to a Share in respect thereof.

“Separation from Service”

“Separation from Service” shall have the meaning set forth in the Textron Inc. Deferred Income Plan for Non-Employee Directors, as amended.

Exhibit 31.1

Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Scott C. Donnelly, Chairman, President and Chief Executive Officer of Textron Inc. certify that:

1.I have reviewed this quarterly report on Form 10-Q of Textron Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date:	July 30, 2024	/s/ Scott C. Donnelly
		Scott C. Donnelly Chairman, President and Chief Executive Officer

Exhibit 31.2

Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Frank T. Connor, Executive Vice President and Chief Financial Officer of Textron Inc. certify that:

1.I have reviewed this quarterly report on Form 10-Q of Textron Inc.;

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date:	July 30, 2024	/s/ Frank T. Connor
		Frank T. Connor Executive Vice President and Chief Financial Officer

Exhibit 32.1

TEXTRON INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Textron Inc. (the "Company") on Form 10-Q for the period ended June 29, 2024 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Scott C. Donnelly, Chairman, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date:	July 30, 2024	/s/ Scott C. Donnelly
		Scott C. Donnelly Chairman, President and Chief Executive Officer

Exhibit 32.2

TEXTRON INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Textron Inc. (the "Company") on Form 10-Q for the period ended June 29, 2024 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Frank T. Connor, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date:	July 30, 2024	/s/ Frank T. Connor
		Frank T. Connor Executive Vice President and Chief Financial Officer

Cover - shares	6 Months Ended
Cover - shares	Jun. 29, 2024	Jul. 12, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 29, 2024
Document Transition Report	false
Entity File Number	1-5480
Entity Registrant Name	Textron Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	05-0315468
Entity Address, Address Line One	40 Westminster Street
Entity Address, City or Town	Providence
Entity Address, State or Province	RI
Entity Address, Postal Zip Code	02903
City Area Code	401
Local Phone Number	421-2800
Title of 12(b) Security	Common stock, $0.125 par value
Trading Symbol	TXT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		187,362,550
Entity Central Index Key	0000217346
Current Fiscal Year End Date	--12-28
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Revenues
Total revenues	$ 3,527	$ 3,424	$ 6,662	$ 6,448
Costs, expenses and other
Selling and administrative expense	293	289	609	594
Interest expense, net	25	19	45	39
Special charges	13	0	27	0
Non-service components of pension and postretirement income, net	(66)	(59)	(132)	(118)
Total costs, expenses and other	3,204	3,095	6,102	5,892
Income from continuing operations before income taxes	323	329	560	556
Income tax expense	63	66	99	102
Income from continuing operations	260	263	461	454
Loss from discontinued operations	(1)	0	(1)	0
Net income	$ 259	$ 263	$ 460	$ 454
Basic earnings per share
Continuing operations (in dollars per share)	$ 1.37	$ 1.31	$ 2.41	$ 2.24
Diluted Earnings per share
Continuing operations (in dollars per share)	$ 1.35	$ 1.30	$ 2.38	$ 2.22
Manufacturing group
Costs, expenses and other
Income from continuing operations			$ 441	$ 438
Finance group
Revenues
Total revenues	$ 12	$ 18	27	30
Costs, expenses and other
Income from continuing operations			20	16
Product
Costs, expenses and other
Cost of products/services sold	2,382	2,465	4,451	4,641
Product \| Manufacturing group
Revenues
Total revenues	2,842	2,917	5,274	5,467
Service
Costs, expenses and other
Cost of products/services sold	557	381	1,102	736
Service \| Manufacturing group
Revenues
Total revenues	$ 673	$ 489	$ 1,361	$ 951

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

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

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

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

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

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Our Consolidated Financial Statements include the accounts of Textron Inc. (Textron) and its majority-owned subsidiaries. We have prepared these unaudited consolidated financial statements in accordance with accounting principles generally accepted in the U.S. for interim financial information. Accordingly, these interim financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. The consolidated interim financial statements included in this quarterly report should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 30, 2023. In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements. All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group. Use of Estimates We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined. Contract Estimates For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable. In the second quarter of 2024 and 2023, our cumulative catch-up adjustments increased segment profit by $18 million and $10 million, respectively, and net income by $14 million and $8 million, respectively ($0.07 and $0.04 per diluted share, respectively). In the first half of 2024 and 2023, our cumulative catch-up adjustments increased segment profit by $31 million and $18 million, respectively, and net income by $24 million and $14 million, respectively ($0.12 and $0.07 per diluted share, respectively).

Accounts Receivable and Finance Receivables

6 Months Ended

Jun. 29, 2024

Receivables [Abstract]

Accounts Receivable and Finance Receivables

Accounts Receivable

Accounts receivable is composed of the following:


(In millions)	June 29, 2024		December 30, 2023
Commercial	$	767	$	831
U.S. Government contracts	101		63
	868		894
Allowance for credit losses	(21)		(26)
Total accounts receivable, net	$	847	$	868

Finance Receivables

Finance receivables are presented in the following table:


(In millions)	June 29, 2024		December 30, 2023
Finance receivables	$	605	$	609
Allowance for credit losses	(20)		(24)
Total finance receivables, net	$	585	$	585

Finance Receivable Portfolio Quality

Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:


(Dollars in millions)	June 29, 2024		December 30, 2023
Performing	$	570	$	571
Watchlist	21		23
Nonaccrual	14		15
Nonaccrual as a percentage of finance receivables	2.31%		2.46%
Current and less than 31 days past due	$	587	$	589
31-60 days past due	15		16
61-90 days past due	2		—
Over 90 days past due	1		4
60+ days contractual delinquency as a percentage of finance receivables	0.50%		0.66%


(In millions)	June 29, 2024		December 30, 2023
Finance receivables evaluated collectively	$	511	$	508
Finance receivables evaluated individually	14		15
Allowance for credit losses based on collective evaluation	19		21
Allowance for credit losses based on individual evaluation	1		3
Impaired finance receivables with specific allowance for credit losses	$	3	$	11
Impaired finance receivables with no specific allowance for credit losses	11		4
Unpaid principal balance of impaired finance receivables	21		25
Allowance for credit losses on impaired finance receivables	1		3
Average recorded investment of impaired finance receivables	14		27

Inventories

6 Months Ended

Jun. 29, 2024

Inventory Disclosure [Abstract]

Inventories

Inventories are composed of the following:


(In millions)	June 29, 2024		December 30, 2023
Finished goods	$	1,211	$	1,072
Work in process	1,996		1,736
Raw materials and components	1,174		1,106
Total inventories	$	4,381	$	3,914

Accounts Payable and Warranty Liability

6 Months Ended

Jun. 29, 2024

Payables and Accruals [Abstract]

Accounts Payable and Warranty Liability

Accounts Payable

Supplier Financing Arrangement

Warranty Liability

Changes in our warranty liability are as follows:


	Six Months Ended
(In millions)	June 29, 2024		July 1, 2023
Beginning of period	$	172	$	149
Provision	38		33
Settlements	(36)		(35)
Adjustments*	(2)		13
End of period	$	172	$	160

* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Leases

6 Months Ended

Jun. 29, 2024

Leases [Abstract]

Leases

Balance sheet and other information related to our leases is as follows:


(Dollars in millions)	June 29, 2024		December 30, 2023
Operating leases:
Other assets	$	370	$	371
Other current liabilities	57		55
Other liabilities	323		326
Weighted-average remaining lease term (in years)	10.0		10.3
Weighted-average discount rate	4.74%		4.70%
Finance leases:
Property, plant and equipment, less accumulated amortization of $7 million and $8 million, respectively	$	89	$	20
Current portion of long-term debt	1		1
Long-term debt	88		22
Weighted-average remaining lease term (in years)	5.4		14.9
Weighted-average discount rate	6.45%		4.55%

Leases

Balance sheet and other information related to our leases is as follows:


(Dollars in millions)	June 29, 2024		December 30, 2023
Operating leases:
Other assets	$	370	$	371
Other current liabilities	57		55
Other liabilities	323		326
Weighted-average remaining lease term (in years)	10.0		10.3
Weighted-average discount rate	4.74%		4.70%
Finance leases:
Property, plant and equipment, less accumulated amortization of $7 million and $8 million, respectively	$	89	$	20
Current portion of long-term debt	1		1
Long-term debt	88		22
Weighted-average remaining lease term (in years)	5.4		14.9
Weighted-average discount rate	6.45%		4.55%

Maturities of our lease liabilities at June 29, 2024 are as follows:


(In millions)	Operating Leases		Finance Leases
2024	$	37	$	3
2025	67		7
2026	52		7
2027	45		6
2028	42		74
Thereafter	243		16
Total lease payments	486		113
Less: interest	(106)		(24)
Total lease liabilities	$	380	$	89

Derivative Instruments and Fair Value Measurements

6 Months Ended

Jun. 29, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Fair Value Measurements

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

Assets and Liabilities Not Recorded at Fair Value

The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:


	June 29, 2024				December 30, 2023
	Carrying		Estimated		Carrying		Estimated
(In millions)	Value		Fair Value		Value		Fair Value
Manufacturing group
Debt, excluding leases	$	(3,167)	$	(2,956)	$	(3,520)	$	(3,342)
Finance group
Finance receivables, excluding leases	422		431		417		423
Debt	(342)		(310)		(348)		(293)

Shareholders' Equity

6 Months Ended

Jun. 29, 2024

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

A reconciliation of Shareholders’ equity is presented below:


(In millions)	Common Stock		Capital Surplus		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders' Equity
Three months ended June 29, 2024
Beginning of period	$	25	$	2,012	$	(484)	$	6,059	$	(681)	$	6,931
Net income	—		—		—		259		—		259
Other comprehensive loss	—		—		—		—		(12)		(12)
Share-based compensation activity	—		38		—		—		—		38
Dividends declared	—		—		—		(4)		—		(4)
Purchases of common stock, including excise tax*	—		—		(360)		—		—		(360)

End of period	$	25	$	2,050	$	(844)	$	6,314	$	(693)	$	6,852
Three months ended July 1, 2023
Beginning of period	$	26	$	1,942	$	(464)	$	6,090	$	(586)	$	7,008
Net income	—		—		—		263		—		263
Other comprehensive income	—		—		—		—		12		12
Share-based compensation activity	—		31		—		—		—		31
Dividends declared	—		—		—		(4)		—		(4)
Purchases of common stock, including excise tax*	—		—		(276)		—		—		(276)
End of period	$	26	$	1,973	$	(740)	$	6,349	$	(574)	$	7,034
Six months ended June 29, 2024
Beginning of period	$	24	$	1,910	$	(165)	$	5,862	$	(644)	$	6,987
Net income	—		—		—		460		—		460
Other comprehensive loss	—		—		—		—		(49)		(49)
Share-based compensation activity	1		140		—		—		—		141
Dividends declared	—		—		—		(8)		—		(8)
Purchases of common stock, including excise tax*	—		—		(679)		—		—		(679)

End of period	$	25	$	2,050	$	(844)	$	6,314	$	(693)	$	6,852
Six months ended July 1, 2023
Beginning of period	$	26	$	1,880	$	(84)	$	5,903	$	(612)	$	7,113
Net income	—		—		—		454		—		454
Other comprehensive income	—		—		—		—		38		38
Share-based compensation activity	—		93		—		—		—		93
Dividends declared	—		—		—		(8)		—		(8)
Purchases of common stock, including excise tax*	—		—		(656)		—		—		(656)
End of period	$	26	$	1,973	$	(740)	$	6,349	$	(574)	$	7,034

Dividends per share of common stock were $0.02 for both the second quarter of 2024 and 2023 and $0.04 for both the first half of 2024 and 2023.

Earnings Per Share

The weighted-average shares outstanding for basic and diluted EPS are as follows:


	Three Months Ended		Six Months Ended
(In thousands)	June 29, 2024	July 1, 2023	June 29, 2024	July 1, 2023
Basic weighted-average shares outstanding	189,746	200,701	191,273	202,768
Dilutive effect of stock options	2,109	1,808	2,085	1,992
Diluted weighted-average shares outstanding	191,855	202,509	193,358	204,760

Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss)

The components of Accumulated other comprehensive loss are presented below:


(In millions)	Pension and Postretirement Benefits Adjustments		Foreign Currency Translation Adjustments		Deferred Gains (Losses) on Hedge Contracts		Accumulated Other Comprehensive Loss
Balance at December 30, 2023	$	(598)	$	(49)	$	3	$	(644)
Other comprehensive loss before reclassifications	—		(47)		(4)		(51)
Reclassified from Accumulated other comprehensive loss	2		—		—		2
Balance at June 29, 2024	$	(596)	$	(96)	$	(1)	$	(693)
Balance at December 31, 2022	$	(516)	$	(94)	$	(2)	$	(612)
Other comprehensive income before reclassifications	—		32		3		35
Reclassified from Accumulated other comprehensive loss	—		—		3		3
Balance at July 1, 2023	$	(516)	$	(62)	$	4	$	(574)

The before and after-tax components of Other comprehensive income (loss) are presented below:


	June 29, 2024						July 1, 2023
(In millions)	Pre-Tax Amount		Tax (Expense) Benefit		After-tax Amount		Pre-Tax Amount		Tax (Expense) Benefit		After-tax Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial gain*	$	(1)	$	—	$	(1)	$	(1)	$	—	$	(1)
Amortization of prior service cost*	2		—		2		2		(1)		1
Pension and postretirement benefits adjustments, net	1		—		1		1		(1)		—
Foreign currency translation adjustments	(14)		—		(14)		4		—		4
Deferred gains (losses) on hedge contracts:
Current deferrals	1		—		1		7		(1)		6
Reclassification adjustments	(1)		1		—		2		—		2
Deferred gains (losses) on hedge contracts, net	—		1		1		9		(1)		8
Total	$	(13)	$	1	$	(12)	$	14	$	(2)	$	12
Six Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial gain*	$	(2)	$	—	$	(2)	$	(3)	$	1	$	(2)
Amortization of prior service cost*	4		—		4		4		(2)		2
Pension and postretirement benefits adjustments, net	2		—		2		1		(1)		—

Foreign currency translation adjustments	(47)		—		(47)		32		—		32


Deferred gains (losses) on hedge contracts:
Current deferrals	(6)		2		(4)		3		—		3
Reclassification adjustments	(2)		2		—		4		(1)		3
Deferred gains (losses) on hedge contracts, net	(8)		4		(4)		7		(1)		6
Total	$	(53)	$	4	$	(49)	$	40	$	(2)	$	38

Segment Information

6 Months Ended

Jun. 29, 2024

Segment Reporting [Abstract]

Segment Information

Our revenues by segment, along with a reconciliation of segment profit to income from continuing operations before income taxes, are included in the table below:


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Revenues
Textron Aviation	$	1,475	$	1,362	$	2,663	$	2,511
Bell	794		701		1,521		1,322
Textron Systems	323		306		629		612
Industrial	914		1,026		1,806		1,958
Textron eAviation	9		11		16		15
Finance	12		18		27		30
Total revenues	$	3,527	$	3,424	$	6,662	$	6,448
Segment Profit
Textron Aviation	$	195	$	171	$	338	$	296
Bell	82		65		162		125
Textron Systems	35		37		73		71
Industrial	42		79		71		120
Textron eAviation	(18)		(12)		(36)		(21)
Finance	7		12		25		20
Segment profit	343		352		633		611
Corporate expenses and other, net	(17)		(21)		(79)		(60)
Interest expense, net for Manufacturing group	(20)		(16)		(35)		(33)
LIFO inventory provision	(27)		(35)		(47)		(60)
Intangible asset amortization	(9)		(10)		(17)		(20)
Special charges	(13)		—		(27)		—
Non-service components of pension and postretirement income, net	66		59		132		118

Income from continuing operations before income taxes	$	323	$	329	$	560	$	556

Revenues

6 Months Ended

Jun. 29, 2024

Revenue from Contract with Customer [Abstract]

Revenues

Disaggregation of Revenues

Our revenues disaggregated by major product type are presented below:


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Aircraft	$	975	$	920	$	1,707	$	1,638
Aftermarket parts and services	500		442		956		873
Textron Aviation	1,475		1,362		$	2,663	$	2,511
Military aircraft and support programs	499		395		979		780
Commercial helicopters, parts and services	295		306		542		542
Bell	794		701		$	1,521	$	1,322
Textron Systems	323		306		$	629	$	612
Fuel systems and functional components	492		523		980		1,011
Specialized vehicles	422		503		826		947
Industrial	914		1,026		$	1,806	$	1,958
Textron eAviation	9		11		$	16	$	15
Finance	12		18		$	27	$	30
Total revenues	$	3,527	$	3,424	$	6,662	$	6,448

Our revenues for our segments by customer type and geographic location are presented below:


(In millions)	Textron Aviation		Bell		Textron Systems		Industrial		Textron eAviation		Finance		Total
Three months ended June 29, 2024
Customer type:
Commercial	$	1,343	$	288	$	79	$	908	$	9	$	12	$	2,639
U.S. Government	132		506		244		6		—		—		888
Total revenues	$	1,475	$	794	$	323	$	914	$	9	$	12	$	3,527
Geographic location:
United States	$	1,147	$	639	$	283	$	497	$	5	$	4	$	2,575
Europe	91		14		12		183		3		—		303

Other international	237		141		28		234		1		8		649
Total revenues	$	1,475	$	794	$	323	$	914	$	9	$	12	$	3,527
Three months ended July 1, 2023
Customer type:
Commercial	$	1,321	$	301	$	70	$	1,024	$	11	$	18	$	2,745
U.S. Government	41		400		236		2		—		—		679
Total revenues	$	1,362	$	701	$	306	$	1,026	$	11	$	18	$	3,424
Geographic location:
United States	$	933	$	534	$	274	$	566	$	7	$	4	$	2,318
Europe	159		35		17		201		4		1		417

Other international	270		132		15		259		—		13		689
Total revenues	$	1,362	$	701	$	306	$	1,026	$	11	$	18	$	3,424
Six months ended June 29, 2024
Customer type:
Commercial	$	2,498	$	527	$	151	$	1,792	$	16	$	27	$	5,011
U.S. Government	165		994		478		14		—		—		1,651
Total revenues	$	2,663	$	1,521	$	629	$	1,806	$	16	$	27	$	6,662
Geographic location:
United States	$	2,097	$	1,198	$	557	$	957	$	9	$	8	$	4,826
Europe	153		37		25		381		5		5		606

Other international	413		286		47		468		2		14		1,230
Total revenues	$	2,663	$	1,521	$	629	$	1,806	$	16	$	27	$	6,662
Six months ended July 1, 2023
Customer type:
Commercial	$	2,428	$	533	$	144	$	1,951	$	15	$	30	$	5,101
U.S. Government	83		789		468		7		—		—		1,347
Total revenues	$	2,511	$	1,322	$	612	$	1,958	$	15	$	30	$	6,448
Geographic location:
United States	$	1,769	$	994	$	549	$	1,060	$	8	$	8	$	4,388
Europe	225		54		31		405		6		1		722

Other international	517		274		32		493		1		21		1,338
Total revenues	$	2,511	$	1,322	$	612	$	1,958	$	15	$	30	$	6,448

Remaining Performance Obligations

Contract Assets and Liabilities

Retirement Plans

6 Months Ended

Jun. 29, 2024

Retirement Benefits [Abstract]

Retirement Plans

We provide defined benefit pension plans and other postretirement benefits to eligible employees. The components of net periodic benefit income for these plans are as follows:


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Pension Benefits
Service cost	$	17	$	16	$	34	$	33
Interest cost	91		91		181		182
Expected return on plan assets	(159)		(153)		(318)		(305)
Amortization of net actuarial loss	1		1		2		1
Amortization of prior service cost	3		3		5		6
Net periodic benefit income*	$	(47)	$	(42)	$	(96)	$	(83)
Postretirement Benefits Other Than Pensions
Service cost	$	1	$	1	$	1	$	1
Interest cost	1		2		$	3	$	4
Amortization of net actuarial gain	(2)		(2)		(4)		(4)
Amortization of prior service credit	(1)		(1)		(1)		(2)
Net periodic benefit income	$	(1)	$	—	$	(1)	$	(1)

Special Charges

6 Months Ended

Jun. 29, 2024

Restructuring and Related Activities [Abstract]

Special Charges

Our restructuring reserve activity is summarized below:


(In millions)	Severance Costs		Contract Terminations and Other		Total
Balance at December 30, 2023	$	42	$	5	$	47
Provision for 2023 Restructuring Plan	26		—		26
Cash paid	(29)		—		(29)

Foreign currency translation	(1)		—		(1)
Balance at June 29, 2024	$	38	$	5	$	43

Income Taxes	6 Months Ended
Income Taxes	Jun. 29, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate for the second quarter and first half of 2024 was 19.5% and 17.7%, respectively. In the second quarter and first half of 2024, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income. Our effective tax rate for the second quarter and first half of 2023 was 20.1% and 18.3%, respectively. In the first half of 2023, the effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income, partially offset by a $7 million provision for withholding taxes due to the planned repatriation of cash related to a non-U.S. jurisdiction.

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

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

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

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

Accounts Receivable and Finance Receivables (Tables)

6 Months Ended

Jun. 29, 2024

Receivables [Abstract]

Accounts Receivable

Accounts receivable is composed of the following:


(In millions)	June 29, 2024		December 30, 2023
Commercial	$	767	$	831
U.S. Government contracts	101		63
	868		894
Allowance for credit losses	(21)		(26)
Total accounts receivable, net	$	847	$	868

Finance Receivables

Finance receivables are presented in the following table:


(In millions)	June 29, 2024		December 30, 2023
Finance receivables	$	605	$	609
Allowance for credit losses	(20)		(24)
Total finance receivables, net	$	585	$	585

Finance Receivables Categorized Based On Credit Quality Indicators

Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:


(Dollars in millions)	June 29, 2024		December 30, 2023
Performing	$	570	$	571
Watchlist	21		23
Nonaccrual	14		15
Nonaccrual as a percentage of finance receivables	2.31%		2.46%
Current and less than 31 days past due	$	587	$	589
31-60 days past due	15		16
61-90 days past due	2		—
Over 90 days past due	1		4
60+ days contractual delinquency as a percentage of finance receivables	0.50%		0.66%

Finance Receivables By Delinquency Aging Category

Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:


(Dollars in millions)	June 29, 2024		December 30, 2023
Performing	$	570	$	571
Watchlist	21		23
Nonaccrual	14		15
Nonaccrual as a percentage of finance receivables	2.31%		2.46%
Current and less than 31 days past due	$	587	$	589
31-60 days past due	15		16
61-90 days past due	2		—
Over 90 days past due	1		4
60+ days contractual delinquency as a percentage of finance receivables	0.50%		0.66%

Finance Receivables and Allowance For Credit Losses Based on Impairment Evaluation


(In millions)	June 29, 2024		December 30, 2023
Finance receivables evaluated collectively	$	511	$	508
Finance receivables evaluated individually	14		15
Allowance for credit losses based on collective evaluation	19		21
Allowance for credit losses based on individual evaluation	1		3
Impaired finance receivables with specific allowance for credit losses	$	3	$	11
Impaired finance receivables with no specific allowance for credit losses	11		4
Unpaid principal balance of impaired finance receivables	21		25
Allowance for credit losses on impaired finance receivables	1		3
Average recorded investment of impaired finance receivables	14		27

Inventories (Tables)

6 Months Ended

Jun. 29, 2024

Inventory Disclosure [Abstract]

Inventories

Inventories are composed of the following:


(In millions)	June 29, 2024		December 30, 2023
Finished goods	$	1,211	$	1,072
Work in process	1,996		1,736
Raw materials and components	1,174		1,106
Total inventories	$	4,381	$	3,914

Accounts Payable and Warranty Liability (Tables)

6 Months Ended

Jun. 29, 2024

Payables and Accruals [Abstract]

Changes in Warranty Liability

Changes in our warranty liability are as follows:


	Six Months Ended
(In millions)	June 29, 2024		July 1, 2023
Beginning of period	$	172	$	149
Provision	38		33
Settlements	(36)		(35)
Adjustments*	(2)		13
End of period	$	172	$	160

* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Leases (Tables)

6 Months Ended

Jun. 29, 2024

Leases [Abstract]

Schedule of Balance Sheet and Other Information

Balance sheet and other information related to our leases is as follows:


(Dollars in millions)	June 29, 2024		December 30, 2023
Operating leases:
Other assets	$	370	$	371
Other current liabilities	57		55
Other liabilities	323		326
Weighted-average remaining lease term (in years)	10.0		10.3
Weighted-average discount rate	4.74%		4.70%
Finance leases:
Property, plant and equipment, less accumulated amortization of $7 million and $8 million, respectively	$	89	$	20
Current portion of long-term debt	1		1
Long-term debt	88		22
Weighted-average remaining lease term (in years)	5.4		14.9
Weighted-average discount rate	6.45%		4.55%

Lessee, Operating Lease, Liability, to be Paid, Maturity

Maturities of our lease liabilities at June 29, 2024 are as follows:


(In millions)	Operating Leases		Finance Leases
2024	$	37	$	3
2025	67		7
2026	52		7
2027	45		6
2028	42		74
Thereafter	243		16
Total lease payments	486		113
Less: interest	(106)		(24)
Total lease liabilities	$	380	$	89

Finance Lease, Liability, to be Paid, Maturity

Maturities of our lease liabilities at June 29, 2024 are as follows:


(In millions)	Operating Leases		Finance Leases
2024	$	37	$	3
2025	67		7
2026	52		7
2027	45		6
2028	42		74
Thereafter	243		16
Total lease payments	486		113
Less: interest	(106)		(24)
Total lease liabilities	$	380	$	89

Derivative Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 29, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Carrying Value and Estimated and Fair Value of Financial Instruments

The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:


	June 29, 2024				December 30, 2023
	Carrying		Estimated		Carrying		Estimated
(In millions)	Value		Fair Value		Value		Fair Value
Manufacturing group
Debt, excluding leases	$	(3,167)	$	(2,956)	$	(3,520)	$	(3,342)
Finance group
Finance receivables, excluding leases	422		431		417		423
Debt	(342)		(310)		(348)		(293)

Shareholders' Equity (Tables)

6 Months Ended

Jun. 29, 2024

Equity [Abstract]

Schedule of Shareholder's Equity

A reconciliation of Shareholders’ equity is presented below:


(In millions)	Common Stock		Capital Surplus		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders' Equity
Three months ended June 29, 2024
Beginning of period	$	25	$	2,012	$	(484)	$	6,059	$	(681)	$	6,931
Net income	—		—		—		259		—		259
Other comprehensive loss	—		—		—		—		(12)		(12)
Share-based compensation activity	—		38		—		—		—		38
Dividends declared	—		—		—		(4)		—		(4)
Purchases of common stock, including excise tax*	—		—		(360)		—		—		(360)

End of period	$	25	$	2,050	$	(844)	$	6,314	$	(693)	$	6,852
Three months ended July 1, 2023
Beginning of period	$	26	$	1,942	$	(464)	$	6,090	$	(586)	$	7,008
Net income	—		—		—		263		—		263
Other comprehensive income	—		—		—		—		12		12
Share-based compensation activity	—		31		—		—		—		31
Dividends declared	—		—		—		(4)		—		(4)
Purchases of common stock, including excise tax*	—		—		(276)		—		—		(276)
End of period	$	26	$	1,973	$	(740)	$	6,349	$	(574)	$	7,034
Six months ended June 29, 2024
Beginning of period	$	24	$	1,910	$	(165)	$	5,862	$	(644)	$	6,987
Net income	—		—		—		460		—		460
Other comprehensive loss	—		—		—		—		(49)		(49)
Share-based compensation activity	1		140		—		—		—		141
Dividends declared	—		—		—		(8)		—		(8)
Purchases of common stock, including excise tax*	—		—		(679)		—		—		(679)

End of period	$	25	$	2,050	$	(844)	$	6,314	$	(693)	$	6,852
Six months ended July 1, 2023
Beginning of period	$	26	$	1,880	$	(84)	$	5,903	$	(612)	$	7,113
Net income	—		—		—		454		—		454
Other comprehensive income	—		—		—		—		38		38
Share-based compensation activity	—		93		—		—		—		93
Dividends declared	—		—		—		(8)		—		(8)
Purchases of common stock, including excise tax*	—		—		(656)		—		—		(656)
End of period	$	26	$	1,973	$	(740)	$	6,349	$	(574)	$	7,034

Schedule of Weighted-Average Shares Outstanding for Basic and Diluted EPS

The weighted-average shares outstanding for basic and diluted EPS are as follows:


	Three Months Ended		Six Months Ended
(In thousands)	June 29, 2024	July 1, 2023	June 29, 2024	July 1, 2023
Basic weighted-average shares outstanding	189,746	200,701	191,273	202,768
Dilutive effect of stock options	2,109	1,808	2,085	1,992
Diluted weighted-average shares outstanding	191,855	202,509	193,358	204,760

Schedule of Components of Accumulated Other Comprehensive Income (Loss)

The components of Accumulated other comprehensive loss are presented below:


(In millions)	Pension and Postretirement Benefits Adjustments		Foreign Currency Translation Adjustments		Deferred Gains (Losses) on Hedge Contracts		Accumulated Other Comprehensive Loss
Balance at December 30, 2023	$	(598)	$	(49)	$	3	$	(644)
Other comprehensive loss before reclassifications	—		(47)		(4)		(51)
Reclassified from Accumulated other comprehensive loss	2		—		—		2
Balance at June 29, 2024	$	(596)	$	(96)	$	(1)	$	(693)
Balance at December 31, 2022	$	(516)	$	(94)	$	(2)	$	(612)
Other comprehensive income before reclassifications	—		32		3		35
Reclassified from Accumulated other comprehensive loss	—		—		3		3
Balance at July 1, 2023	$	(516)	$	(62)	$	4	$	(574)

Schedule of Before and After-Tax Components of Other Comprehensive Income (Loss)

The before and after-tax components of Other comprehensive income (loss) are presented below:


	June 29, 2024						July 1, 2023
(In millions)	Pre-Tax Amount		Tax (Expense) Benefit		After-tax Amount		Pre-Tax Amount		Tax (Expense) Benefit		After-tax Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial gain*	$	(1)	$	—	$	(1)	$	(1)	$	—	$	(1)
Amortization of prior service cost*	2		—		2		2		(1)		1
Pension and postretirement benefits adjustments, net	1		—		1		1		(1)		—
Foreign currency translation adjustments	(14)		—		(14)		4		—		4
Deferred gains (losses) on hedge contracts:
Current deferrals	1		—		1		7		(1)		6
Reclassification adjustments	(1)		1		—		2		—		2
Deferred gains (losses) on hedge contracts, net	—		1		1		9		(1)		8
Total	$	(13)	$	1	$	(12)	$	14	$	(2)	$	12
Six Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial gain*	$	(2)	$	—	$	(2)	$	(3)	$	1	$	(2)
Amortization of prior service cost*	4		—		4		4		(2)		2
Pension and postretirement benefits adjustments, net	2		—		2		1		(1)		—

Foreign currency translation adjustments	(47)		—		(47)		32		—		32


Deferred gains (losses) on hedge contracts:
Current deferrals	(6)		2		(4)		3		—		3
Reclassification adjustments	(2)		2		—		4		(1)		3
Deferred gains (losses) on hedge contracts, net	(8)		4		(4)		7		(1)		6
Total	$	(53)	$	4	$	(49)	$	40	$	(2)	$	38

Segment Information (Tables)

6 Months Ended

Jun. 29, 2024

Segment Reporting [Abstract]

Reconciliation of Revenues by Segment

Our revenues by segment, along with a reconciliation of segment profit to income from continuing operations before income taxes, are included in the table below:


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Revenues
Textron Aviation	$	1,475	$	1,362	$	2,663	$	2,511
Bell	794		701		1,521		1,322
Textron Systems	323		306		629		612
Industrial	914		1,026		1,806		1,958
Textron eAviation	9		11		16		15
Finance	12		18		27		30
Total revenues	$	3,527	$	3,424	$	6,662	$	6,448
Segment Profit
Textron Aviation	$	195	$	171	$	338	$	296
Bell	82		65		162		125
Textron Systems	35		37		73		71
Industrial	42		79		71		120
Textron eAviation	(18)		(12)		(36)		(21)
Finance	7		12		25		20
Segment profit	343		352		633		611
Corporate expenses and other, net	(17)		(21)		(79)		(60)
Interest expense, net for Manufacturing group	(20)		(16)		(35)		(33)
LIFO inventory provision	(27)		(35)		(47)		(60)
Intangible asset amortization	(9)		(10)		(17)		(20)
Special charges	(13)		—		(27)		—
Non-service components of pension and postretirement income, net	66		59		132		118

Income from continuing operations before income taxes	$	323	$	329	$	560	$	556

Reconciliation of Segment Profit to Income Before Income Taxes

Our revenues by segment, along with a reconciliation of segment profit to income from continuing operations before income taxes, are included in the table below:


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Revenues
Textron Aviation	$	1,475	$	1,362	$	2,663	$	2,511
Bell	794		701		1,521		1,322
Textron Systems	323		306		629		612
Industrial	914		1,026		1,806		1,958
Textron eAviation	9		11		16		15
Finance	12		18		27		30
Total revenues	$	3,527	$	3,424	$	6,662	$	6,448
Segment Profit
Textron Aviation	$	195	$	171	$	338	$	296
Bell	82		65		162		125
Textron Systems	35		37		73		71
Industrial	42		79		71		120
Textron eAviation	(18)		(12)		(36)		(21)
Finance	7		12		25		20
Segment profit	343		352		633		611
Corporate expenses and other, net	(17)		(21)		(79)		(60)
Interest expense, net for Manufacturing group	(20)		(16)		(35)		(33)
LIFO inventory provision	(27)		(35)		(47)		(60)
Intangible asset amortization	(9)		(10)		(17)		(20)
Special charges	(13)		—		(27)		—
Non-service components of pension and postretirement income, net	66		59		132		118

Income from continuing operations before income taxes	$	323	$	329	$	560	$	556

Revenues (Tables)

6 Months Ended

Jun. 29, 2024

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Our revenues disaggregated by major product type are presented below:


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Aircraft	$	975	$	920	$	1,707	$	1,638
Aftermarket parts and services	500		442		956		873
Textron Aviation	1,475		1,362		$	2,663	$	2,511
Military aircraft and support programs	499		395		979		780
Commercial helicopters, parts and services	295		306		542		542
Bell	794		701		$	1,521	$	1,322
Textron Systems	323		306		$	629	$	612
Fuel systems and functional components	492		523		980		1,011
Specialized vehicles	422		503		826		947
Industrial	914		1,026		$	1,806	$	1,958
Textron eAviation	9		11		$	16	$	15
Finance	12		18		$	27	$	30
Total revenues	$	3,527	$	3,424	$	6,662	$	6,448

Our revenues for our segments by customer type and geographic location are presented below:


(In millions)	Textron Aviation		Bell		Textron Systems		Industrial		Textron eAviation		Finance		Total
Three months ended June 29, 2024
Customer type:
Commercial	$	1,343	$	288	$	79	$	908	$	9	$	12	$	2,639
U.S. Government	132		506		244		6		—		—		888
Total revenues	$	1,475	$	794	$	323	$	914	$	9	$	12	$	3,527
Geographic location:
United States	$	1,147	$	639	$	283	$	497	$	5	$	4	$	2,575
Europe	91		14		12		183		3		—		303

Other international	237		141		28		234		1		8		649
Total revenues	$	1,475	$	794	$	323	$	914	$	9	$	12	$	3,527
Three months ended July 1, 2023
Customer type:
Commercial	$	1,321	$	301	$	70	$	1,024	$	11	$	18	$	2,745
U.S. Government	41		400		236		2		—		—		679
Total revenues	$	1,362	$	701	$	306	$	1,026	$	11	$	18	$	3,424
Geographic location:
United States	$	933	$	534	$	274	$	566	$	7	$	4	$	2,318
Europe	159		35		17		201		4		1		417

Other international	270		132		15		259		—		13		689
Total revenues	$	1,362	$	701	$	306	$	1,026	$	11	$	18	$	3,424
Six months ended June 29, 2024
Customer type:
Commercial	$	2,498	$	527	$	151	$	1,792	$	16	$	27	$	5,011
U.S. Government	165		994		478		14		—		—		1,651
Total revenues	$	2,663	$	1,521	$	629	$	1,806	$	16	$	27	$	6,662
Geographic location:
United States	$	2,097	$	1,198	$	557	$	957	$	9	$	8	$	4,826
Europe	153		37		25		381		5		5		606

Other international	413		286		47		468		2		14		1,230
Total revenues	$	2,663	$	1,521	$	629	$	1,806	$	16	$	27	$	6,662
Six months ended July 1, 2023
Customer type:
Commercial	$	2,428	$	533	$	144	$	1,951	$	15	$	30	$	5,101
U.S. Government	83		789		468		7		—		—		1,347
Total revenues	$	2,511	$	1,322	$	612	$	1,958	$	15	$	30	$	6,448
Geographic location:
United States	$	1,769	$	994	$	549	$	1,060	$	8	$	8	$	4,388
Europe	225		54		31		405		6		1		722

Other international	517		274		32		493		1		21		1,338
Total revenues	$	2,511	$	1,322	$	612	$	1,958	$	15	$	30	$	6,448

Retirement Plans (Tables)

6 Months Ended

Jun. 29, 2024

Retirement Benefits [Abstract]

Schedule of Components of Net Periodic Benefit Income

The components of net periodic benefit income for these plans are as follows:


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Pension Benefits
Service cost	$	17	$	16	$	34	$	33
Interest cost	91		91		181		182
Expected return on plan assets	(159)		(153)		(318)		(305)
Amortization of net actuarial loss	1		1		2		1
Amortization of prior service cost	3		3		5		6
Net periodic benefit income*	$	(47)	$	(42)	$	(96)	$	(83)
Postretirement Benefits Other Than Pensions
Service cost	$	1	$	1	$	1	$	1
Interest cost	1		2		$	3	$	4
Amortization of net actuarial gain	(2)		(2)		(4)		(4)
Amortization of prior service credit	(1)		(1)		(1)		(2)
Net periodic benefit income	$	(1)	$	—	$	(1)	$	(1)

Special Charges (Tables)

6 Months Ended

Jun. 29, 2024

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve Activity

Our restructuring reserve activity is summarized below:


(In millions)	Severance Costs		Contract Terminations and Other		Total
Balance at December 30, 2023	$	42	$	5	$	47
Provision for 2023 Restructuring Plan	26		—		26
Cash paid	(29)		—		(29)

Foreign currency translation	(1)		—		(1)
Balance at June 29, 2024	$	38	$	5	$	43

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

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

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

Accounts Receivable and Finance Receivables - Finance Receivable Portfolio Quality (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 29, 2024	Dec. 30, 2023
Finance Receivable Portfolio Quality
Finance receivables	$ 605	$ 609
60+ days contractual delinquency as a percentage of finance receivables	0.50%	0.66%
Current and less than 31 days past due
Finance Receivable Portfolio Quality
Finance receivables	$ 587	$ 589
31-60 days past due
Finance Receivable Portfolio Quality
Finance receivables	15	16
61-90 days past due
Finance Receivable Portfolio Quality
Finance receivables	2	0
Over 90 days past due
Finance Receivable Portfolio Quality
Finance receivables	$ 1	$ 4
Performing
Finance Receivable Portfolio Quality
Financing percentage receivable originating since the beginning of 2022	38.00%
Financing receivable percentage originating from 2019 to 2021	28.00%
Nonperforming
Finance Receivable Portfolio Quality
Nonaccrual as a percentage of finance receivables	2.31%	2.46%
Nonperforming \| Watchlist
Finance Receivable Portfolio Quality
Finance receivables	$ 21	$ 23
Financing receivable percentage originating from 2020 to 2021	100.00%
Nonperforming \| Nonaccrual
Finance Receivable Portfolio Quality
Finance receivables	$ 14	15
Financing receivable percentage originating prior to 2020	100.00%
Nonperforming \| Minimum
Finance Receivable Portfolio Quality
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful	3 months
Performing
Finance Receivable Portfolio Quality
Finance receivables	$ 570	$ 571

Accounts Receivable and Finance Receivables - Finance Receivables and Allowance for Losses Based on the Results of Impairment Evaluation (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 29, 2024	Dec. 30, 2023
Receivables [Abstract]
Finance receivables evaluated collectively	$ 511	$ 508
Finance receivables evaluated individually	14	15
Allowance for credit losses based on collective evaluation	19	21
Allowance for credit losses based on individual evaluation	1	3
Impaired finance receivables with specific allowance for credit losses	3	11
Impaired finance receivables with no specific allowance for credit losses	11	4
Unpaid principal balance of impaired finance receivables	21	25
Allowance for credit losses on impaired finance receivables	1	3
Average recorded investment of impaired finance receivables	$ 14	$ 27

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

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

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

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

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

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

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

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

Shareholders' Equity - Reconciliation of Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 6,931	$ 7,008	$ 6,987	$ 7,113
Net income	259	263	460	454
Other comprehensive income (loss)	(12)	12	(49)	38
Share-based compensation activity	38	31	141	93
Dividends declared	(4)	(4)	(8)	(8)
Purchases of common stock, including excise tax	(360)	(276)	(679)	(656)
Balance at end of period	6,852	7,034	6,852	7,034
Excise taxes on common share repurchases	$ 2	$ 3	$ 4	$ 6
Dividends per share of common stock (in dollars per share)	$ 0.02	$ 0.02	$ 0.04	$ 0.04
Common Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 25	$ 26	$ 24	$ 26
Share-based compensation activity			1
Balance at end of period	25	26	25	26
Capital Surplus
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	2,012	1,942	1,910	1,880
Share-based compensation activity	38	31	140	93
Balance at end of period	2,050	1,973	2,050	1,973
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(484)	(464)	(165)	(84)
Purchases of common stock, including excise tax	(360)	(276)	(679)	(656)
Balance at end of period	(844)	(740)	(844)	(740)
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	6,059	6,090	5,862	5,903
Net income	259	263	460	454
Dividends declared	(4)	(4)	(8)	(8)
Balance at end of period	6,314	6,349	6,314	6,349
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(681)	(586)	(644)	(612)
Other comprehensive income (loss)	(12)	12	(49)	38
Balance at end of period	$ (693)	$ (574)	$ (693)	$ (574)

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

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

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

Segment Information - Narrative (Details)	6 Months Ended
Segment Information - Narrative (Details)	Jun. 29, 2024 segment
Operating and reportable business segments
Number of operating business segments	6
Number of reportable business segments	6

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

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

Revenues - Remaining Performance Obligations (Details) $ in Billions	Jun. 29, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 13.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-06-30
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percent	82.00%
Remaining performance obligation, expected timing of satisfaction	18 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-04
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percent	16.00%
Remaining performance obligation, expected timing of satisfaction	24 months

Revenues - Contract Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023	Dec. 30, 2023
Contract Assets and Liabilities
Contract assets	$ 351		$ 351		$ 513
Contract liabilities	1,900		1,900		$ 1,800
Revenue recognized included in contract liabilities	$ 333	$ 380	$ 660	$ 696

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

Special Charges - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended			9 Months Ended
Special Charges - Narrative (Details) $ in Millions	Jun. 29, 2024 USD ($)	Jul. 01, 2023 USD ($)	Dec. 28, 2024 USD ($) position	Jun. 29, 2024 USD ($)	Jul. 01, 2023 USD ($)	Jun. 29, 2024 USD ($)
Special Charges [Line Items]
Special charges	$ 13	$ 0		$ 27	$ 0
Future cash outlays				29
2023 Restructuring Plan
Special Charges [Line Items]
Special charges	13			27		$ 153
Severance costs				26		65
Asset impairment charges				1
2023 Restructuring Plan \| Forecast
Special Charges [Line Items]
Number of positions expected to be eliminated \| position			1,500
Percentage of workforce reduction			4.00%
2023 Restructuring Plan \| Industrial
Special Charges [Line Items]
Special charges				15
Severance costs						35
Asset impairment charges						88
2023 Restructuring Plan \| Textron Systems
Special Charges [Line Items]
Special charges				7
Severance costs						12
2023 Restructuring Plan \| Bell
Special Charges [Line Items]
Special charges				5
Severance costs						18
2023 Restructuring Plan \| Minimum
Special Charges [Line Items]
Additional expected costs	12			12		12
2023 Restructuring Plan \| Minimum \| Forecast
Special Charges [Line Items]
Future cash outlays			$ 50
2023 Restructuring Plan \| Maximum
Special Charges [Line Items]
Additional expected costs	$ 17			$ 17		$ 17
2023 Restructuring Plan \| Maximum \| Forecast
Special Charges [Line Items]
Future cash outlays			$ 55

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

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	19.50%	20.10%	17.70%	18.30%
U.S. federal statutory income tax rate	21.00%		21.00%	21.00%
Tax provision related to withholding taxes due to planned repatriation of cash				$ 7