0000217346--12-302023Q3FALSEhttp://fasb.org/us-gaap/2023#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2023#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrent152400002173462023-01-012023-09-3000002173462023-10-13xbrli:shares0000217346us-gaap:ProductMembertxt:ManufacturingGroupMember2023-07-022023-09-30iso4217:USD0000217346us-gaap:ProductMembertxt:ManufacturingGroupMember2022-07-032022-10-010000217346us-gaap:ProductMembertxt:ManufacturingGroupMember2023-01-012023-09-300000217346us-gaap:ProductMembertxt:ManufacturingGroupMember2022-01-022022-10-010000217346us-gaap:ServiceMembertxt:ManufacturingGroupMember2023-07-022023-09-300000217346us-gaap:ServiceMembertxt:ManufacturingGroupMember2022-07-032022-10-010000217346us-gaap:ServiceMembertxt:ManufacturingGroupMember2023-01-012023-09-300000217346us-gaap:ServiceMembertxt:ManufacturingGroupMember2022-01-022022-10-010000217346txt:FinanceGroupMember2023-07-022023-09-300000217346txt:FinanceGroupMember2022-07-032022-10-010000217346txt:FinanceGroupMember2023-01-012023-09-300000217346txt:FinanceGroupMember2022-01-022022-10-0100002173462023-07-022023-09-3000002173462022-07-032022-10-0100002173462022-01-022022-10-010000217346us-gaap:ProductMember2023-07-022023-09-300000217346us-gaap:ProductMember2022-07-032022-10-010000217346us-gaap:ProductMember2023-01-012023-09-300000217346us-gaap:ProductMember2022-01-022022-10-010000217346us-gaap:ServiceMember2023-07-022023-09-300000217346us-gaap:ServiceMember2022-07-032022-10-010000217346us-gaap:ServiceMember2023-01-012023-09-300000217346us-gaap:ServiceMember2022-01-022022-10-01iso4217:USDxbrli:shares0000217346txt:ManufacturingGroupMember2023-09-300000217346txt:ManufacturingGroupMember2022-12-3100002173462023-09-3000002173462022-12-310000217346txt:FinanceGroupMember2023-09-300000217346txt:FinanceGroupMember2022-12-3100002173462022-01-0100002173462022-10-010000217346txt:ManufacturingGroupMember2023-01-012023-09-300000217346txt:ManufacturingGroupMember2022-01-022022-10-010000217346txt:ManufacturingGroupMember2022-01-010000217346txt:FinanceGroupMember2022-01-010000217346txt:ManufacturingGroupMember2022-10-010000217346txt:FinanceGroupMember2022-10-01txt:borrowing_group0000217346txt:CumulativeCatchUpMethodMember2023-07-022023-09-300000217346txt:CumulativeCatchUpMethodMember2022-07-032022-10-010000217346txt:CumulativeCatchUpMethodMember2023-01-012023-09-300000217346txt:CumulativeCatchUpMethodMember2022-01-022022-10-010000217346txt:ManufacturingGroupMembertxt:CommercialMember2023-09-300000217346txt:ManufacturingGroupMembertxt:CommercialMember2022-12-310000217346txt:USGovernmentMembertxt:ManufacturingGroupMember2023-09-300000217346txt:USGovernmentMembertxt:ManufacturingGroupMember2022-12-310000217346srt:MinimumMemberus-gaap:NonperformingFinancingReceivableMember2023-01-012023-09-300000217346us-gaap:PerformingFinancingReceivableMember2023-09-300000217346us-gaap:PerformingFinancingReceivableMember2022-12-310000217346us-gaap:SpecialMentionMemberus-gaap:NonperformingFinancingReceivableMember2023-09-300000217346us-gaap:SpecialMentionMemberus-gaap:NonperformingFinancingReceivableMember2022-12-310000217346us-gaap:DoubtfulMemberus-gaap:NonperformingFinancingReceivableMember2023-09-300000217346us-gaap:DoubtfulMemberus-gaap:NonperformingFinancingReceivableMember2022-12-310000217346us-gaap:NonperformingFinancingReceivableMember2023-09-30xbrli:pure0000217346us-gaap:NonperformingFinancingReceivableMember2022-12-310000217346txt:FinancialAssetsCurrentAndLessThan31DaysPastDueMember2023-09-300000217346txt:FinancialAssetsCurrentAndLessThan31DaysPastDueMember2022-12-310000217346txt:FinancialAssets31To60DaysPastDueMember2023-09-300000217346txt:FinancialAssets31To60DaysPastDueMember2022-12-310000217346txt:FinancialAssets61To90DaysPastDueMember2023-09-300000217346txt:FinancialAssets61To90DaysPastDueMember2022-12-310000217346us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-09-300000217346us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-12-310000217346us-gaap:PerformingFinancingReceivableMember2023-09-3000002173462022-01-022022-12-310000217346us-gaap:CashFlowHedgingMembertxt:ManufacturingGroupMemberus-gaap:ForeignExchangeContractMember2023-09-300000217346us-gaap:CashFlowHedgingMembertxt:ManufacturingGroupMemberus-gaap:ForeignExchangeContractMember2022-12-310000217346us-gaap:FairValueInputsLevel2Memberus-gaap:CashFlowHedgingMembertxt:ManufacturingGroupMemberus-gaap:ForeignExchangeContractMember2023-09-300000217346us-gaap:FairValueInputsLevel2Memberus-gaap:CashFlowHedgingMembertxt:ManufacturingGroupMemberus-gaap:ForeignExchangeContractMember2022-12-310000217346txt:InterestRateSwapMaturingAugust2025ToAugust2028Memberus-gaap:CashFlowHedgingMembertxt:FinanceGroupMember2023-09-300000217346txt:CMETermSecuredOvernightFundingRateMembertxt:FinanceGroupMembertxt:FloatingRateJuniorSubordinatedNotesDueTwentySixtySevenMemberus-gaap:JuniorSubordinatedDebtMember2023-07-022023-09-300000217346us-gaap:CashFlowHedgingMembertxt:InterestRateSwapMaturingAugust2023Membertxt:FinanceGroupMember2022-12-310000217346txt:InterestRateSwapMaturingJune2025Memberus-gaap:CashFlowHedgingMembertxt:FinanceGroupMember2022-05-310000217346us-gaap:CashFlowHedgingMembertxt:FinanceGroupMemberus-gaap:InterestRateSwapMember2023-09-300000217346us-gaap:CashFlowHedgingMembertxt:FinanceGroupMemberus-gaap:InterestRateSwapMember2022-12-310000217346us-gaap:CarryingReportedAmountFairValueDisclosureMembertxt:ManufacturingGroupMember2023-09-300000217346txt:ManufacturingGroupMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-09-300000217346us-gaap:CarryingReportedAmountFairValueDisclosureMembertxt:ManufacturingGroupMember2022-12-310000217346txt:ManufacturingGroupMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000217346us-gaap:CarryingReportedAmountFairValueDisclosureMembertxt:FinanceGroupMember2023-09-300000217346txt:FinanceGroupMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-09-300000217346us-gaap:CarryingReportedAmountFairValueDisclosureMembertxt:FinanceGroupMember2022-12-310000217346txt:FinanceGroupMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000217346us-gaap:CommonStockMember2023-07-010000217346us-gaap:AdditionalPaidInCapitalMember2023-07-010000217346us-gaap:TreasuryStockCommonMember2023-07-010000217346us-gaap:RetainedEarningsMember2023-07-010000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-0100002173462023-07-010000217346us-gaap:RetainedEarningsMember2023-07-022023-09-300000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-022023-09-300000217346us-gaap:AdditionalPaidInCapitalMember2023-07-022023-09-300000217346us-gaap:TreasuryStockCommonMember2023-07-022023-09-300000217346us-gaap:CommonStockMember2023-09-300000217346us-gaap:AdditionalPaidInCapitalMember2023-09-300000217346us-gaap:TreasuryStockCommonMember2023-09-300000217346us-gaap:RetainedEarningsMember2023-09-300000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000217346us-gaap:CommonStockMember2022-07-020000217346us-gaap:AdditionalPaidInCapitalMember2022-07-020000217346us-gaap:TreasuryStockCommonMember2022-07-020000217346us-gaap:RetainedEarningsMember2022-07-020000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-0200002173462022-07-020000217346us-gaap:RetainedEarningsMember2022-07-032022-10-010000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-032022-10-010000217346us-gaap:AdditionalPaidInCapitalMember2022-07-032022-10-010000217346us-gaap:TreasuryStockCommonMember2022-07-032022-10-010000217346us-gaap:CommonStockMember2022-10-010000217346us-gaap:AdditionalPaidInCapitalMember2022-10-010000217346us-gaap:TreasuryStockCommonMember2022-10-010000217346us-gaap:RetainedEarningsMember2022-10-010000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-010000217346us-gaap:CommonStockMember2022-12-310000217346us-gaap:AdditionalPaidInCapitalMember2022-12-310000217346us-gaap:TreasuryStockCommonMember2022-12-310000217346us-gaap:RetainedEarningsMember2022-12-310000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000217346us-gaap:RetainedEarningsMember2023-01-012023-09-300000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000217346us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300000217346us-gaap:TreasuryStockCommonMember2023-01-012023-09-300000217346us-gaap:CommonStockMember2022-01-010000217346us-gaap:AdditionalPaidInCapitalMember2022-01-010000217346us-gaap:TreasuryStockCommonMember2022-01-010000217346us-gaap:RetainedEarningsMember2022-01-010000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-010000217346us-gaap:RetainedEarningsMember2022-01-022022-10-010000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-022022-10-010000217346us-gaap:AdditionalPaidInCapitalMember2022-01-022022-10-010000217346us-gaap:TreasuryStockCommonMember2022-01-022022-10-010000217346us-gaap:EmployeeStockOptionMember2023-07-022023-09-300000217346us-gaap:EmployeeStockOptionMember2023-01-012023-09-300000217346us-gaap:EmployeeStockOptionMember2022-01-022022-10-010000217346us-gaap:EmployeeStockOptionMember2022-07-032022-10-010000217346us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000217346us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000217346us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310000217346us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-09-300000217346us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-09-300000217346us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-09-300000217346us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-09-300000217346us-gaap:AccumulatedTranslationAdjustmentMember2023-09-300000217346us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-09-300000217346us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-010000217346us-gaap:AccumulatedTranslationAdjustmentMember2022-01-010000217346us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-010000217346us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-022022-10-010000217346us-gaap:AccumulatedTranslationAdjustmentMember2022-01-022022-10-010000217346us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-022022-10-010000217346us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-10-010000217346us-gaap:AccumulatedTranslationAdjustmentMember2022-10-010000217346us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-10-01txt:segment0000217346us-gaap:OperatingSegmentsMembertxt:TextronAviationMembertxt:ManufacturingGroupMember2023-07-022023-09-300000217346us-gaap:OperatingSegmentsMembertxt:TextronAviationMembertxt:ManufacturingGroupMember2022-07-032022-10-010000217346us-gaap:OperatingSegmentsMembertxt:TextronAviationMembertxt:ManufacturingGroupMember2023-01-012023-09-300000217346us-gaap:OperatingSegmentsMembertxt:TextronAviationMembertxt:ManufacturingGroupMember2022-01-022022-10-010000217346us-gaap:OperatingSegmentsMembertxt:BellMembertxt:ManufacturingGroupMember2023-07-022023-09-300000217346us-gaap:OperatingSegmentsMembertxt:BellMembertxt:ManufacturingGroupMember2022-07-032022-10-010000217346us-gaap:OperatingSegmentsMembertxt:BellMembertxt:ManufacturingGroupMember2023-01-012023-09-300000217346us-gaap:OperatingSegmentsMembertxt:BellMembertxt:ManufacturingGroupMember2022-01-022022-10-010000217346us-gaap:OperatingSegmentsMembertxt:TextronSystemsMembertxt:ManufacturingGroupMember2023-07-022023-09-300000217346us-gaap:OperatingSegmentsMembertxt:TextronSystemsMembertxt:ManufacturingGroupMember2022-07-032022-10-010000217346us-gaap:OperatingSegmentsMembertxt:TextronSystemsMembertxt:ManufacturingGroupMember2023-01-012023-09-300000217346us-gaap:OperatingSegmentsMembertxt:TextronSystemsMembertxt:ManufacturingGroupMember2022-01-022022-10-010000217346us-gaap:OperatingSegmentsMembertxt:ManufacturingGroupMembertxt:IndustrialMember2023-07-022023-09-300000217346us-gaap:OperatingSegmentsMembertxt:ManufacturingGroupMembertxt:IndustrialMember2022-07-032022-10-010000217346us-gaap:OperatingSegmentsMembertxt:ManufacturingGroupMembertxt:IndustrialMember2023-01-012023-09-300000217346us-gaap:OperatingSegmentsMembertxt:ManufacturingGroupMembertxt:IndustrialMember2022-01-022022-10-010000217346us-gaap:OperatingSegmentsMembertxt:TextronEAviationSegmentMembertxt:ManufacturingGroupMember2023-07-022023-09-300000217346us-gaap:OperatingSegmentsMembertxt:TextronEAviationSegmentMembertxt:ManufacturingGroupMember2022-07-032022-10-010000217346us-gaap:OperatingSegmentsMembertxt:TextronEAviationSegmentMembertxt:ManufacturingGroupMember2023-01-012023-09-300000217346us-gaap:OperatingSegmentsMembertxt:TextronEAviationSegmentMembertxt:ManufacturingGroupMember2022-01-022022-10-010000217346us-gaap:OperatingSegmentsMembertxt:FinanceMembertxt:FinanceGroupMember2023-07-022023-09-300000217346us-gaap:OperatingSegmentsMembertxt:FinanceMembertxt:FinanceGroupMember2022-07-032022-10-010000217346us-gaap:OperatingSegmentsMembertxt:FinanceMembertxt:FinanceGroupMember2023-01-012023-09-300000217346us-gaap:OperatingSegmentsMembertxt:FinanceMembertxt:FinanceGroupMember2022-01-022022-10-010000217346us-gaap:OperatingSegmentsMember2023-07-022023-09-300000217346us-gaap:OperatingSegmentsMember2022-07-032022-10-010000217346us-gaap:OperatingSegmentsMember2023-01-012023-09-300000217346us-gaap:OperatingSegmentsMember2022-01-022022-10-010000217346us-gaap:MaterialReconcilingItemsMember2023-07-022023-09-300000217346us-gaap:MaterialReconcilingItemsMember2022-07-032022-10-010000217346us-gaap:MaterialReconcilingItemsMember2023-01-012023-09-300000217346us-gaap:MaterialReconcilingItemsMember2022-01-022022-10-010000217346us-gaap:MaterialReconcilingItemsMembertxt:ManufacturingGroupMember2023-07-022023-09-300000217346us-gaap:MaterialReconcilingItemsMembertxt:ManufacturingGroupMember2022-07-032022-10-010000217346us-gaap:MaterialReconcilingItemsMembertxt:ManufacturingGroupMember2023-01-012023-09-300000217346us-gaap:MaterialReconcilingItemsMembertxt:ManufacturingGroupMember2022-01-022022-10-010000217346txt:AircraftMembertxt:TextronAviationMember2023-07-022023-09-300000217346txt:AircraftMembertxt:TextronAviationMember2022-07-032022-10-010000217346txt:AircraftMembertxt:TextronAviationMember2023-01-012023-09-300000217346txt:AircraftMembertxt:TextronAviationMember2022-01-022022-10-010000217346txt:AftermarketPartsAndServicesMembertxt:TextronAviationMember2023-07-022023-09-300000217346txt:AftermarketPartsAndServicesMembertxt:TextronAviationMember2022-07-032022-10-010000217346txt:AftermarketPartsAndServicesMembertxt:TextronAviationMember2023-01-012023-09-300000217346txt:AftermarketPartsAndServicesMembertxt:TextronAviationMember2022-01-022022-10-010000217346txt:TextronAviationMember2023-07-022023-09-300000217346txt:TextronAviationMember2022-07-032022-10-010000217346txt:TextronAviationMember2023-01-012023-09-300000217346txt:TextronAviationMember2022-01-022022-10-010000217346txt:BellMembertxt:MilitaryAircraftAndSupportProgramsMember2023-07-022023-09-300000217346txt:BellMembertxt:MilitaryAircraftAndSupportProgramsMember2022-07-032022-10-010000217346txt:BellMembertxt:MilitaryAircraftAndSupportProgramsMember2023-01-012023-09-300000217346txt:BellMembertxt:MilitaryAircraftAndSupportProgramsMember2022-01-022022-10-010000217346txt:BellMembertxt:CommercialHelicoptersPartsAndServicesMember2023-07-022023-09-300000217346txt:BellMembertxt:CommercialHelicoptersPartsAndServicesMember2022-07-032022-10-010000217346txt:BellMembertxt:CommercialHelicoptersPartsAndServicesMember2023-01-012023-09-300000217346txt:BellMembertxt:CommercialHelicoptersPartsAndServicesMember2022-01-022022-10-010000217346txt:BellMember2023-07-022023-09-300000217346txt:BellMember2022-07-032022-10-010000217346txt:BellMember2023-01-012023-09-300000217346txt:BellMember2022-01-022022-10-010000217346txt:TextronSystemsMember2023-07-022023-09-300000217346txt:TextronSystemsMember2022-07-032022-10-010000217346txt:TextronSystemsMember2023-01-012023-09-300000217346txt:TextronSystemsMember2022-01-022022-10-010000217346txt:FuelSystemsAndFunctionalComponentsMembertxt:IndustrialMember2023-07-022023-09-300000217346txt:FuelSystemsAndFunctionalComponentsMembertxt:IndustrialMember2022-07-032022-10-010000217346txt:FuelSystemsAndFunctionalComponentsMembertxt:IndustrialMember2023-01-012023-09-300000217346txt:FuelSystemsAndFunctionalComponentsMembertxt:IndustrialMember2022-01-022022-10-010000217346txt:SpecializedVehiclesMembertxt:IndustrialMember2023-07-022023-09-300000217346txt:SpecializedVehiclesMembertxt:IndustrialMember2022-07-032022-10-010000217346txt:SpecializedVehiclesMembertxt:IndustrialMember2023-01-012023-09-300000217346txt:SpecializedVehiclesMembertxt:IndustrialMember2022-01-022022-10-010000217346txt:IndustrialMember2023-07-022023-09-300000217346txt:IndustrialMember2022-07-032022-10-010000217346txt:IndustrialMember2023-01-012023-09-300000217346txt:IndustrialMember2022-01-022022-10-010000217346txt:TextronEAviationSegmentMember2023-07-022023-09-300000217346txt:TextronEAviationSegmentMember2022-07-032022-10-010000217346txt:TextronEAviationSegmentMember2023-01-012023-09-300000217346txt:TextronEAviationSegmentMember2022-01-022022-10-010000217346txt:FinanceMember2023-07-022023-09-300000217346txt:FinanceMember2022-07-032022-10-010000217346txt:FinanceMember2023-01-012023-09-300000217346txt:FinanceMember2022-01-022022-10-010000217346txt:CommercialCustomerMembertxt:TextronAviationMember2023-07-022023-09-300000217346txt:BellMembertxt:CommercialCustomerMember2023-07-022023-09-300000217346txt:TextronSystemsMembertxt:CommercialCustomerMember2023-07-022023-09-300000217346txt:CommercialCustomerMembertxt:IndustrialMember2023-07-022023-09-300000217346txt:TextronEAviationSegmentMembertxt:CommercialCustomerMember2023-07-022023-09-300000217346txt:FinanceMembertxt:CommercialCustomerMember2023-07-022023-09-300000217346txt:CommercialCustomerMember2023-07-022023-09-300000217346txt:USGovernmentMembertxt:TextronAviationMember2023-07-022023-09-300000217346txt:BellMembertxt:USGovernmentMember2023-07-022023-09-300000217346txt:TextronSystemsMembertxt:USGovernmentMember2023-07-022023-09-300000217346txt:USGovernmentMembertxt:IndustrialMember2023-07-022023-09-300000217346txt:TextronEAviationSegmentMembertxt:USGovernmentMember2023-07-022023-09-300000217346txt:USGovernmentMembertxt:FinanceMember2023-07-022023-09-300000217346txt:USGovernmentMember2023-07-022023-09-300000217346country:UStxt:TextronAviationMember2023-07-022023-09-300000217346txt:BellMembercountry:US2023-07-022023-09-300000217346txt:TextronSystemsMembercountry:US2023-07-022023-09-300000217346country:UStxt:IndustrialMember2023-07-022023-09-300000217346txt:TextronEAviationSegmentMembercountry:US2023-07-022023-09-300000217346country:UStxt:FinanceMember2023-07-022023-09-300000217346country:US2023-07-022023-09-300000217346srt:EuropeMembertxt:TextronAviationMember2023-07-022023-09-300000217346txt:BellMembersrt:EuropeMember2023-07-022023-09-300000217346srt:EuropeMembertxt:TextronSystemsMember2023-07-022023-09-300000217346srt:EuropeMembertxt:IndustrialMember2023-07-022023-09-300000217346txt:TextronEAviationSegmentMembersrt:EuropeMember2023-07-022023-09-300000217346srt:EuropeMembertxt:FinanceMember2023-07-022023-09-300000217346srt:EuropeMember2023-07-022023-09-300000217346txt:InternationalMembertxt:TextronAviationMember2023-07-022023-09-300000217346txt:BellMembertxt:InternationalMember2023-07-022023-09-300000217346txt:TextronSystemsMembertxt:InternationalMember2023-07-022023-09-300000217346txt:InternationalMembertxt:IndustrialMember2023-07-022023-09-300000217346txt:TextronEAviationSegmentMembertxt:InternationalMember2023-07-022023-09-300000217346txt:InternationalMembertxt:FinanceMember2023-07-022023-09-300000217346txt:InternationalMember2023-07-022023-09-300000217346txt:CommercialCustomerMembertxt:TextronAviationMember2022-07-032022-10-010000217346txt:BellMembertxt:CommercialCustomerMember2022-07-032022-10-010000217346txt:TextronSystemsMembertxt:CommercialCustomerMember2022-07-032022-10-010000217346txt:CommercialCustomerMembertxt:IndustrialMember2022-07-032022-10-010000217346txt:TextronEAviationSegmentMembertxt:CommercialCustomerMember2022-07-032022-10-010000217346txt:FinanceMembertxt:CommercialCustomerMember2022-07-032022-10-010000217346txt:CommercialCustomerMember2022-07-032022-10-010000217346txt:USGovernmentMembertxt:TextronAviationMember2022-07-032022-10-010000217346txt:BellMembertxt:USGovernmentMember2022-07-032022-10-010000217346txt:TextronSystemsMembertxt:USGovernmentMember2022-07-032022-10-010000217346txt:USGovernmentMembertxt:IndustrialMember2022-07-032022-10-010000217346txt:TextronEAviationSegmentMembertxt:USGovernmentMember2022-07-032022-10-010000217346txt:USGovernmentMembertxt:FinanceMember2022-07-032022-10-010000217346txt:USGovernmentMember2022-07-032022-10-010000217346country:UStxt:TextronAviationMember2022-07-032022-10-010000217346txt:BellMembercountry:US2022-07-032022-10-010000217346txt:TextronSystemsMembercountry:US2022-07-032022-10-010000217346country:UStxt:IndustrialMember2022-07-032022-10-010000217346txt:TextronEAviationSegmentMembercountry:US2022-07-032022-10-010000217346country:UStxt:FinanceMember2022-07-032022-10-010000217346country:US2022-07-032022-10-010000217346srt:EuropeMembertxt:TextronAviationMember2022-07-032022-10-010000217346txt:BellMembersrt:EuropeMember2022-07-032022-10-010000217346srt:EuropeMembertxt:TextronSystemsMember2022-07-032022-10-010000217346srt:EuropeMembertxt:IndustrialMember2022-07-032022-10-010000217346txt:TextronEAviationSegmentMembersrt:EuropeMember2022-07-032022-10-010000217346srt:EuropeMembertxt:FinanceMember2022-07-032022-10-010000217346srt:EuropeMember2022-07-032022-10-010000217346txt:InternationalMembertxt:TextronAviationMember2022-07-032022-10-010000217346txt:BellMembertxt:InternationalMember2022-07-032022-10-010000217346txt:TextronSystemsMembertxt:InternationalMember2022-07-032022-10-010000217346txt:InternationalMembertxt:IndustrialMember2022-07-032022-10-010000217346txt:TextronEAviationSegmentMembertxt:InternationalMember2022-07-032022-10-010000217346txt:InternationalMembertxt:FinanceMember2022-07-032022-10-010000217346txt:InternationalMember2022-07-032022-10-010000217346txt:CommercialCustomerMembertxt:TextronAviationMember2023-01-012023-09-300000217346txt:BellMembertxt:CommercialCustomerMember2023-01-012023-09-300000217346txt:TextronSystemsMembertxt:CommercialCustomerMember2023-01-012023-09-300000217346txt:CommercialCustomerMembertxt:IndustrialMember2023-01-012023-09-300000217346txt:TextronEAviationSegmentMembertxt:CommercialCustomerMember2023-01-012023-09-300000217346txt:FinanceMembertxt:CommercialCustomerMember2023-01-012023-09-300000217346txt:CommercialCustomerMember2023-01-012023-09-300000217346txt:USGovernmentMembertxt:TextronAviationMember2023-01-012023-09-300000217346txt:BellMembertxt:USGovernmentMember2023-01-012023-09-300000217346txt:TextronSystemsMembertxt:USGovernmentMember2023-01-012023-09-300000217346txt:USGovernmentMembertxt:IndustrialMember2023-01-012023-09-300000217346txt:TextronEAviationSegmentMembertxt:USGovernmentMember2023-01-012023-09-300000217346txt:USGovernmentMembertxt:FinanceMember2023-01-012023-09-300000217346txt:USGovernmentMember2023-01-012023-09-300000217346country:UStxt:TextronAviationMember2023-01-012023-09-300000217346txt:BellMembercountry:US2023-01-012023-09-300000217346txt:TextronSystemsMembercountry:US2023-01-012023-09-300000217346country:UStxt:IndustrialMember2023-01-012023-09-300000217346txt:TextronEAviationSegmentMembercountry:US2023-01-012023-09-300000217346country:UStxt:FinanceMember2023-01-012023-09-300000217346country:US2023-01-012023-09-300000217346srt:EuropeMembertxt:TextronAviationMember2023-01-012023-09-300000217346txt:BellMembersrt:EuropeMember2023-01-012023-09-300000217346srt:EuropeMembertxt:TextronSystemsMember2023-01-012023-09-300000217346srt:EuropeMembertxt:IndustrialMember2023-01-012023-09-300000217346txt:TextronEAviationSegmentMembersrt:EuropeMember2023-01-012023-09-300000217346srt:EuropeMembertxt:FinanceMember2023-01-012023-09-300000217346srt:EuropeMember2023-01-012023-09-300000217346txt:InternationalMembertxt:TextronAviationMember2023-01-012023-09-300000217346txt:BellMembertxt:InternationalMember2023-01-012023-09-300000217346txt:TextronSystemsMembertxt:InternationalMember2023-01-012023-09-300000217346txt:InternationalMembertxt:IndustrialMember2023-01-012023-09-300000217346txt:TextronEAviationSegmentMembertxt:InternationalMember2023-01-012023-09-300000217346txt:InternationalMembertxt:FinanceMember2023-01-012023-09-300000217346txt:InternationalMember2023-01-012023-09-300000217346txt:CommercialCustomerMembertxt:TextronAviationMember2022-01-022022-10-010000217346txt:BellMembertxt:CommercialCustomerMember2022-01-022022-10-010000217346txt:TextronSystemsMembertxt:CommercialCustomerMember2022-01-022022-10-010000217346txt:CommercialCustomerMembertxt:IndustrialMember2022-01-022022-10-010000217346txt:TextronEAviationSegmentMembertxt:CommercialCustomerMember2022-01-022022-10-010000217346txt:FinanceMembertxt:CommercialCustomerMember2022-01-022022-10-010000217346txt:CommercialCustomerMember2022-01-022022-10-010000217346txt:USGovernmentMembertxt:TextronAviationMember2022-01-022022-10-010000217346txt:BellMembertxt:USGovernmentMember2022-01-022022-10-010000217346txt:TextronSystemsMembertxt:USGovernmentMember2022-01-022022-10-010000217346txt:USGovernmentMembertxt:IndustrialMember2022-01-022022-10-010000217346txt:TextronEAviationSegmentMembertxt:USGovernmentMember2022-01-022022-10-010000217346txt:USGovernmentMembertxt:FinanceMember2022-01-022022-10-010000217346txt:USGovernmentMember2022-01-022022-10-010000217346country:UStxt:TextronAviationMember2022-01-022022-10-010000217346txt:BellMembercountry:US2022-01-022022-10-010000217346txt:TextronSystemsMembercountry:US2022-01-022022-10-010000217346country:UStxt:IndustrialMember2022-01-022022-10-010000217346txt:TextronEAviationSegmentMembercountry:US2022-01-022022-10-010000217346country:UStxt:FinanceMember2022-01-022022-10-010000217346country:US2022-01-022022-10-010000217346srt:EuropeMembertxt:TextronAviationMember2022-01-022022-10-010000217346txt:BellMembersrt:EuropeMember2022-01-022022-10-010000217346srt:EuropeMembertxt:TextronSystemsMember2022-01-022022-10-010000217346srt:EuropeMembertxt:IndustrialMember2022-01-022022-10-010000217346txt:TextronEAviationSegmentMembersrt:EuropeMember2022-01-022022-10-010000217346srt:EuropeMembertxt:FinanceMember2022-01-022022-10-010000217346srt:EuropeMember2022-01-022022-10-010000217346txt:InternationalMembertxt:TextronAviationMember2022-01-022022-10-010000217346txt:BellMembertxt:InternationalMember2022-01-022022-10-010000217346txt:TextronSystemsMembertxt:InternationalMember2022-01-022022-10-010000217346txt:InternationalMembertxt:IndustrialMember2022-01-022022-10-010000217346txt:TextronEAviationSegmentMembertxt:InternationalMember2022-01-022022-10-010000217346txt:InternationalMembertxt:FinanceMember2022-01-022022-10-010000217346txt:InternationalMember2022-01-022022-10-0100002173462023-10-012023-09-3000002173462024-12-292023-09-300000217346us-gaap:PensionPlansDefinedBenefitMember2023-07-022023-09-300000217346us-gaap:PensionPlansDefinedBenefitMember2022-07-032022-10-010000217346us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-09-300000217346us-gaap:PensionPlansDefinedBenefitMember2022-01-022022-10-010000217346us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-07-022023-09-300000217346us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-07-032022-10-010000217346us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-09-300000217346us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-022022-10-010000217346country:USus-gaap:PensionPlansDefinedBenefitMember2023-07-022023-09-300000217346country:USus-gaap:PensionPlansDefinedBenefitMember2022-07-032022-10-010000217346country:USus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-09-300000217346country:USus-gaap:PensionPlansDefinedBenefitMember2022-01-022022-10-01

(Mark One)

(Exact name of registrant as specified in its charter)

(Registrant’s telephone number, including area code)

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

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):

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 October 13, 2023, there were 196,005,457 shares of common stock outstanding.

    

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 31, 2022.  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.

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.

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 third quarter of 2023, our cumulative catch-up adjustments increased segment profit by $18 million and net income by $14 million, $0.07 per diluted share. In the third quarter of 2022, our cumulative catch-up adjustments decreased segment profit by $3 million and net income by $2 million, $0.01 per diluted share.

In the first nine months of 2023, our cumulative catch-up adjustments increased segment profit by $36 million and net income by $28 million, $0.14 per diluted share. In the first nine months of 2022, our cumulative catch-up adjustments decreased segment profit by $24 million and net income by $18 million, $0.08 per diluted share.

Accounts receivable is composed of the following:

Finance receivables are presented in the following table:

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:

At September 30, 2023, 43% of our performing finance receivables were originated since the beginning of 2021 and 27% were originated from 2018 to 2020. For finance receivables categorized as watchlist, 100% were originated since the beginning of 2020 and for nonaccrual, 41% were originated from 2018 to 2020 with the remainder prior to 2018.

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

A summary of 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.

Inventories are composed of the following:

Changes in our warranty liability are as follows:

We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide through operating leases. Our operating leases have remaining lease terms up to 25 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $18 million and $17 million in the third quarter of 2023 and 2022, respectively, and $52 million and $51 million in the first nine months of 2023 and 2022, respectively. Variable and short-term lease costs were not significant. Cash paid for operating leases totaled $51 million for both the first nine months of 2023 and 2022, and is classified in cash flows from operating activities. Noncash transactions totaled $32 million and $34 million in the first nine months of 2023 and 2022, respectively, reflecting the recognition of operating lease assets and liabilities for new or extended leases.

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

At September 30, 2023, maturities of our operating lease liabilities on an undiscounted basis totaled $19 million for the remainder of 2023, $65 million for 2024, $57 million for 2025, $44 million for 2026, $39 million for 2027 and $249 million thereafter.

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.

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 September 30, 2023 and December 31, 2022, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $487 million and $354 million, respectively. At September 30, 2023, the fair value amounts of our foreign currency exchange contracts were a $1 million asset and a $9 million liability. At December 31, 2022, the fair value amount of our foreign currency exchange contracts was an $11 million liability.

Our Finance group enters into interest rate swap agreements to mitigate certain exposures to fluctuations in interest rates. By using these contracts, we are able to convert the floating-rate cash flows to fixed-rate cash flows on certain debt. These agreements are designated as cash flow hedges.

In 2023, we entered into swap agreements related to our Floating Rate Junior Subordinated Notes for an aggregate notional amount of $185 million and a weighted-average fixed rate of 5.17%, with maturities ranging from August 2025 to August 2028. In compliance with the Adjustable Interest Rate (LIBOR) Act of 2022, in the third quarter of 2023, the benchmark interest rate on these Notes changed to the three-month CME Term Secured Overnight Funding Rate + 1.99661%. At December 31, 2022, we had a swap agreement related to these Notes with a notional amount of $272 million that matured in August 2023. We also entered into an interest rate swap agreement in May 2022 with a notional amount of $25 million that matures in June 2025 and effectively converts variable-rate interest on a term loan to a fixed rate of 2.75%.

At September 30, 2023 and December 31, 2022, the fair value of our outstanding swap agreements was a $9 million asset and an $8 million asset, respectively. The fair value of these 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.

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:

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.

A reconciliation of Shareholders’ equity is presented below:

Dividends per share of common stock were $0.02 for both the third quarter of 2023 and 2022 and $0.06 for both the first nine months of 2023 and 2022.

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:

Stock options to purchase 1.0 million and 1.7 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for the third quarter and first nine months of 2023, respectively, as their effect would have been anti-dilutive. For both the third quarter and first nine months of 2022, stock options to purchase 1.0 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive.

The components of Accumulated other comprehensive loss are presented below:

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

We operate in, and reported financial information for, the following six business 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. Beginning in 2023, we changed how we measure our manufacturing segment operating results to exclude the non-service components of pension and postretirement income, net; LIFO inventory provision; and intangible asset amortization. This measure also continues to exclude interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. The prior period has been recast to conform to this presentation. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.

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

Our revenues for our segments disaggregated by major product type are presented below:

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