0000217346--01-012021Q1FALSEtrue212400002173462021-01-032021-04-03xbrli:shares00002173462021-04-16iso4217:USD0000217346txt:ManufacturingProductsAndServicesMember2021-01-032021-04-030000217346txt:ManufacturingProductsAndServicesMember2020-01-052020-04-040000217346us-gaap:FinancialServiceMember2021-01-032021-04-030000217346us-gaap:FinancialServiceMember2020-01-052020-04-0400002173462020-01-052020-04-04iso4217:USDxbrli:shares0000217346txt:ManufacturingGroupMember2021-04-030000217346txt:ManufacturingGroupMember2021-01-0200002173462021-04-0300002173462021-01-020000217346txt:FinanceGroupMember2021-04-030000217346txt:FinanceGroupMember2021-01-0200002173462020-01-0400002173462020-04-040000217346txt:ManufacturingGroupMember2021-01-032021-04-030000217346txt:ManufacturingGroupMember2020-01-052020-04-040000217346txt:FinanceGroupMember2021-01-032021-04-030000217346txt:FinanceGroupMember2020-01-052020-04-040000217346txt:ManufacturingGroupMember2020-01-040000217346txt:FinanceGroupMember2020-01-040000217346txt:ManufacturingGroupMember2020-04-040000217346txt:FinanceGroupMember2020-04-04txt:borrowingGroup0000217346txt:CumulativeCatchUpMethodMember2021-01-032021-04-030000217346txt:CumulativeCatchUpMethodMember2020-01-052020-04-040000217346txt:TRUNonUSMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2021-01-252021-01-250000217346txt:CommercialMembertxt:ManufacturingGroupMember2021-04-030000217346txt:CommercialMembertxt:ManufacturingGroupMember2021-01-020000217346txt:USGovernmentMembertxt:ManufacturingGroupMember2021-04-030000217346txt:USGovernmentMembertxt:ManufacturingGroupMember2021-01-020000217346us-gaap:NonperformingFinancingReceivableMembersrt:MinimumMember2021-01-032021-04-030000217346us-gaap:NonperformingFinancingReceivableMember2021-01-032021-04-03txt:customer0000217346us-gaap:PerformingFinancingReceivableMember2021-04-030000217346us-gaap:PerformingFinancingReceivableMember2021-01-020000217346us-gaap:SpecialMentionMemberus-gaap:NonperformingFinancingReceivableMember2021-04-030000217346us-gaap:SpecialMentionMemberus-gaap:NonperformingFinancingReceivableMember2021-01-020000217346us-gaap:NonperformingFinancingReceivableMemberus-gaap:DoubtfulMember2021-04-030000217346us-gaap:NonperformingFinancingReceivableMemberus-gaap:DoubtfulMember2021-01-02xbrli:pure0000217346us-gaap:NonperformingFinancingReceivableMember2021-04-030000217346us-gaap:NonperformingFinancingReceivableMember2021-01-020000217346txt:FinancialAssetsLessThan31DaysPastDueMember2021-04-030000217346txt:FinancialAssetsLessThan31DaysPastDueMember2021-01-020000217346txt:FinancialAssets31To60DaysPastDueMember2021-04-030000217346txt:FinancialAssets31To60DaysPastDueMember2021-01-020000217346txt:FinancialAssets61To90DaysPastDueMember2021-04-030000217346txt:FinancialAssets61To90DaysPastDueMember2021-01-020000217346us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-04-030000217346us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-01-020000217346us-gaap:PerformingFinancingReceivableMember2021-04-0300002173462020-01-052021-01-020000217346us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMembertxt:ManufacturingGroupMember2021-04-030000217346us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMembertxt:ManufacturingGroupMember2021-01-020000217346us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:FairValueInputsLevel2Membertxt:ManufacturingGroupMember2021-04-030000217346us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:FairValueInputsLevel2Membertxt:ManufacturingGroupMember2021-01-020000217346us-gaap:InterestRateSwapMembertxt:FinanceGroupMemberus-gaap:CashFlowHedgingMember2021-04-030000217346us-gaap:InterestRateSwapMembertxt:FinanceGroupMemberus-gaap:CashFlowHedgingMember2021-01-020000217346us-gaap:CarryingReportedAmountFairValueDisclosureMembertxt:ManufacturingGroupMember2021-04-030000217346us-gaap:EstimateOfFairValueFairValueDisclosureMembertxt:ManufacturingGroupMember2021-04-030000217346us-gaap:CarryingReportedAmountFairValueDisclosureMembertxt:ManufacturingGroupMember2021-01-020000217346us-gaap:EstimateOfFairValueFairValueDisclosureMembertxt:ManufacturingGroupMember2021-01-020000217346txt:FinanceGroupMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-04-030000217346us-gaap:EstimateOfFairValueFairValueDisclosureMembertxt:FinanceGroupMember2021-04-030000217346txt:FinanceGroupMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-01-020000217346us-gaap:EstimateOfFairValueFairValueDisclosureMembertxt:FinanceGroupMember2021-01-020000217346us-gaap:CommonStockMember2021-01-020000217346us-gaap:AdditionalPaidInCapitalMember2021-01-020000217346us-gaap:TreasuryStockMember2021-01-020000217346us-gaap:RetainedEarningsMember2021-01-020000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-020000217346us-gaap:RetainedEarningsMember2021-01-032021-04-030000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-032021-04-030000217346us-gaap:AdditionalPaidInCapitalMember2021-01-032021-04-030000217346us-gaap:TreasuryStockMember2021-01-032021-04-030000217346us-gaap:CommonStockMember2021-04-030000217346us-gaap:AdditionalPaidInCapitalMember2021-04-030000217346us-gaap:TreasuryStockMember2021-04-030000217346us-gaap:RetainedEarningsMember2021-04-030000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-030000217346us-gaap:CommonStockMember2020-01-040000217346us-gaap:AdditionalPaidInCapitalMember2020-01-040000217346us-gaap:TreasuryStockMember2020-01-040000217346us-gaap:RetainedEarningsMember2020-01-040000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-040000217346us-gaap:RetainedEarningsMember2020-01-052020-04-040000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-052020-04-040000217346us-gaap:AdditionalPaidInCapitalMember2020-01-052020-04-040000217346us-gaap:TreasuryStockMember2020-01-052020-04-040000217346us-gaap:CommonStockMember2020-04-040000217346us-gaap:AdditionalPaidInCapitalMember2020-04-040000217346us-gaap:TreasuryStockMember2020-04-040000217346us-gaap:RetainedEarningsMember2020-04-040000217346us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-040000217346us-gaap:EmployeeStockOptionMember2021-01-032021-04-030000217346us-gaap:EmployeeStockOptionMember2020-01-052020-04-040000217346us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-020000217346us-gaap:AccumulatedTranslationAdjustmentMember2021-01-020000217346us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-020000217346us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-032021-04-030000217346us-gaap:AccumulatedTranslationAdjustmentMember2021-01-032021-04-030000217346us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-032021-04-030000217346us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-04-030000217346us-gaap:AccumulatedTranslationAdjustmentMember2021-04-030000217346us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-04-030000217346us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-040000217346us-gaap:AccumulatedTranslationAdjustmentMember2020-01-040000217346us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-040000217346us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-052020-04-040000217346us-gaap:AccumulatedTranslationAdjustmentMember2020-01-052020-04-040000217346us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-052020-04-040000217346us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-04-040000217346us-gaap:AccumulatedTranslationAdjustmentMember2020-04-040000217346us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-04-04txt:businessSegment0000217346us-gaap:OperatingSegmentsMembertxt:TextronAviationMembertxt:ManufacturingGroupMember2021-01-032021-04-030000217346us-gaap:OperatingSegmentsMembertxt:TextronAviationMembertxt:ManufacturingGroupMember2020-01-052020-04-040000217346txt:BellMemberus-gaap:OperatingSegmentsMembertxt:ManufacturingGroupMember2021-01-032021-04-030000217346txt:BellMemberus-gaap:OperatingSegmentsMembertxt:ManufacturingGroupMember2020-01-052020-04-040000217346txt:TextronSystemsMemberus-gaap:OperatingSegmentsMembertxt:ManufacturingGroupMember2021-01-032021-04-030000217346txt:TextronSystemsMemberus-gaap:OperatingSegmentsMembertxt:ManufacturingGroupMember2020-01-052020-04-040000217346txt:IndustrialMemberus-gaap:OperatingSegmentsMembertxt:ManufacturingGroupMember2021-01-032021-04-030000217346txt:IndustrialMemberus-gaap:OperatingSegmentsMembertxt:ManufacturingGroupMember2020-01-052020-04-040000217346txt:FinanceGroupMembertxt:FinanceMemberus-gaap:OperatingSegmentsMember2021-01-032021-04-030000217346txt:FinanceGroupMembertxt:FinanceMemberus-gaap:OperatingSegmentsMember2020-01-052020-04-040000217346txt:FinanceMemberus-gaap:OperatingSegmentsMember2021-01-032021-04-030000217346txt:FinanceMemberus-gaap:OperatingSegmentsMember2020-01-052020-04-040000217346us-gaap:OperatingSegmentsMember2021-01-032021-04-030000217346us-gaap:OperatingSegmentsMember2020-01-052020-04-040000217346us-gaap:MaterialReconcilingItemsMember2021-01-032021-04-030000217346us-gaap:MaterialReconcilingItemsMember2020-01-052020-04-040000217346us-gaap:MaterialReconcilingItemsMembertxt:ManufacturingGroupMember2021-01-032021-04-030000217346us-gaap:MaterialReconcilingItemsMembertxt:ManufacturingGroupMember2020-01-052020-04-040000217346txt:AircraftMembertxt:TextronAviationMember2021-01-032021-04-030000217346txt:AircraftMembertxt:TextronAviationMember2020-01-052020-04-040000217346txt:AftermarketPartsAndServicesMembertxt:TextronAviationMember2021-01-032021-04-030000217346txt:AftermarketPartsAndServicesMembertxt:TextronAviationMember2020-01-052020-04-040000217346txt:TextronAviationMember2021-01-032021-04-030000217346txt:TextronAviationMember2020-01-052020-04-040000217346txt:BellMembertxt:MilitaryAircraftAndSupportProgramsMember2021-01-032021-04-030000217346txt:BellMembertxt:MilitaryAircraftAndSupportProgramsMember2020-01-052020-04-040000217346txt:BellMembertxt:CommercialHelicoptersPartsAndServicesMember2021-01-032021-04-030000217346txt:BellMembertxt:CommercialHelicoptersPartsAndServicesMember2020-01-052020-04-040000217346txt:BellMember2021-01-032021-04-030000217346txt:BellMember2020-01-052020-04-040000217346txt:TextronSystemsMembertxt:AirSystemsMember2021-01-032021-04-030000217346txt:TextronSystemsMembertxt:AirSystemsMember2020-01-052020-04-040000217346txt:LandAndSeaSystemsMembertxt:TextronSystemsMember2021-01-032021-04-030000217346txt:LandAndSeaSystemsMembertxt:TextronSystemsMember2020-01-052020-04-040000217346txt:OtherMembertxt:TextronSystemsMember2021-01-032021-04-030000217346txt:OtherMembertxt:TextronSystemsMember2020-01-052020-04-040000217346txt:TextronSystemsMember2021-01-032021-04-030000217346txt:TextronSystemsMember2020-01-052020-04-040000217346txt:FuelSystemsAndFunctionalComponentsMembertxt:IndustrialMember2021-01-032021-04-030000217346txt:FuelSystemsAndFunctionalComponentsMembertxt:IndustrialMember2020-01-052020-04-040000217346txt:IndustrialMembertxt:SpecializedVehiclesMember2021-01-032021-04-030000217346txt:IndustrialMembertxt:SpecializedVehiclesMember2020-01-052020-04-040000217346txt:IndustrialMember2021-01-032021-04-030000217346txt:IndustrialMember2020-01-052020-04-040000217346txt:FinanceMember2021-01-032021-04-030000217346txt:FinanceMember2020-01-052020-04-040000217346txt:CommercialCustomerMembertxt:TextronAviationMember2021-01-032021-04-030000217346txt:CommercialCustomerMembertxt:BellMember2021-01-032021-04-030000217346txt:CommercialCustomerMembertxt:TextronSystemsMember2021-01-032021-04-030000217346txt:CommercialCustomerMembertxt:IndustrialMember2021-01-032021-04-030000217346txt:CommercialCustomerMembertxt:FinanceMember2021-01-032021-04-030000217346txt:CommercialCustomerMember2021-01-032021-04-030000217346txt:USGovernmentMembertxt:TextronAviationMember2021-01-032021-04-030000217346txt:BellMembertxt:USGovernmentMember2021-01-032021-04-030000217346txt:TextronSystemsMembertxt:USGovernmentMember2021-01-032021-04-030000217346txt:USGovernmentMembertxt:IndustrialMember2021-01-032021-04-030000217346txt:FinanceMembertxt:USGovernmentMember2021-01-032021-04-030000217346txt:USGovernmentMember2021-01-032021-04-030000217346txt:TextronAviationMembercountry:US2021-01-032021-04-030000217346txt:BellMembercountry:US2021-01-032021-04-030000217346txt:TextronSystemsMembercountry:US2021-01-032021-04-030000217346txt:IndustrialMembercountry:US2021-01-032021-04-030000217346txt:FinanceMembercountry:US2021-01-032021-04-030000217346country:US2021-01-032021-04-030000217346srt:EuropeMembertxt:TextronAviationMember2021-01-032021-04-030000217346srt:EuropeMembertxt:BellMember2021-01-032021-04-030000217346srt:EuropeMembertxt:TextronSystemsMember2021-01-032021-04-030000217346srt:EuropeMembertxt:IndustrialMember2021-01-032021-04-030000217346srt:EuropeMembertxt:FinanceMember2021-01-032021-04-030000217346srt:EuropeMember2021-01-032021-04-030000217346txt:AsiaAndAustraliaMembertxt:TextronAviationMember2021-01-032021-04-030000217346txt:AsiaAndAustraliaMembertxt:BellMember2021-01-032021-04-030000217346txt:AsiaAndAustraliaMembertxt:TextronSystemsMember2021-01-032021-04-030000217346txt:AsiaAndAustraliaMembertxt:IndustrialMember2021-01-032021-04-030000217346txt:AsiaAndAustraliaMembertxt:FinanceMember2021-01-032021-04-030000217346txt:AsiaAndAustraliaMember2021-01-032021-04-030000217346txt:InternationalMembertxt:TextronAviationMember2021-01-032021-04-030000217346txt:BellMembertxt:InternationalMember2021-01-032021-04-030000217346txt:InternationalMembertxt:TextronSystemsMember2021-01-032021-04-030000217346txt:InternationalMembertxt:IndustrialMember2021-01-032021-04-030000217346txt:InternationalMembertxt:FinanceMember2021-01-032021-04-030000217346txt:InternationalMember2021-01-032021-04-030000217346txt:CommercialCustomerMembertxt:TextronAviationMember2020-01-052020-04-040000217346txt:CommercialCustomerMembertxt:BellMember2020-01-052020-04-040000217346txt:CommercialCustomerMembertxt:TextronSystemsMember2020-01-052020-04-040000217346txt:CommercialCustomerMembertxt:IndustrialMember2020-01-052020-04-040000217346txt:CommercialCustomerMembertxt:FinanceMember2020-01-052020-04-040000217346txt:CommercialCustomerMember2020-01-052020-04-040000217346txt:USGovernmentMembertxt:TextronAviationMember2020-01-052020-04-040000217346txt:BellMembertxt:USGovernmentMember2020-01-052020-04-040000217346txt:TextronSystemsMembertxt:USGovernmentMember2020-01-052020-04-040000217346txt:USGovernmentMembertxt:IndustrialMember2020-01-052020-04-040000217346txt:FinanceMembertxt:USGovernmentMember2020-01-052020-04-040000217346txt:USGovernmentMember2020-01-052020-04-040000217346txt:TextronAviationMembercountry:US2020-01-052020-04-040000217346txt:BellMembercountry:US2020-01-052020-04-040000217346txt:TextronSystemsMembercountry:US2020-01-052020-04-040000217346txt:IndustrialMembercountry:US2020-01-052020-04-040000217346txt:FinanceMembercountry:US2020-01-052020-04-040000217346country:US2020-01-052020-04-040000217346srt:EuropeMembertxt:TextronAviationMember2020-01-052020-04-040000217346srt:EuropeMembertxt:BellMember2020-01-052020-04-040000217346srt:EuropeMembertxt:TextronSystemsMember2020-01-052020-04-040000217346srt:EuropeMembertxt:IndustrialMember2020-01-052020-04-040000217346srt:EuropeMembertxt:FinanceMember2020-01-052020-04-040000217346srt:EuropeMember2020-01-052020-04-040000217346txt:AsiaAndAustraliaMembertxt:TextronAviationMember2020-01-052020-04-040000217346txt:AsiaAndAustraliaMembertxt:BellMember2020-01-052020-04-040000217346txt:AsiaAndAustraliaMembertxt:TextronSystemsMember2020-01-052020-04-040000217346txt:AsiaAndAustraliaMembertxt:IndustrialMember2020-01-052020-04-040000217346txt:AsiaAndAustraliaMembertxt:FinanceMember2020-01-052020-04-040000217346txt:AsiaAndAustraliaMember2020-01-052020-04-040000217346txt:InternationalMembertxt:TextronAviationMember2020-01-052020-04-040000217346txt:BellMembertxt:InternationalMember2020-01-052020-04-040000217346txt:InternationalMembertxt:TextronSystemsMember2020-01-052020-04-040000217346txt:InternationalMembertxt:IndustrialMember2020-01-052020-04-040000217346txt:InternationalMembertxt:FinanceMember2020-01-052020-04-040000217346txt:InternationalMember2020-01-052020-04-0400002173462021-04-042021-04-0300002173462023-01-012021-04-030000217346us-gaap:EmployeeStockOptionMember2021-01-032021-04-030000217346us-gaap:EmployeeStockOptionMember2020-01-052020-04-040000217346us-gaap:EmployeeStockOptionMember2021-03-012021-03-010000217346us-gaap:EmployeeStockOptionMember2020-03-012020-03-010000217346us-gaap:EmployeeStockOptionMember2021-01-020000217346us-gaap:EmployeeStockOptionMember2021-04-030000217346txt:RestrictedStockUnitsPayableInStockMember2021-01-020000217346txt:RestrictedStockUnitsPayableInCashMember2021-01-020000217346txt:RestrictedStockUnitsPayableInStockMember2021-01-032021-04-030000217346txt:RestrictedStockUnitsPayableInCashMember2021-01-032021-04-030000217346txt:RestrictedStockUnitsPayableInStockMember2021-04-030000217346txt:RestrictedStockUnitsPayableInCashMember2021-04-030000217346us-gaap:RestrictedStockUnitsRSUMember2021-01-032021-04-030000217346us-gaap:RestrictedStockUnitsRSUMember2020-01-052020-04-040000217346us-gaap:PerformanceSharesMember2021-01-020000217346us-gaap:PerformanceSharesMember2021-01-032021-04-030000217346us-gaap:PerformanceSharesMember2021-04-030000217346us-gaap:PensionPlansDefinedBenefitMember2021-01-032021-04-030000217346us-gaap:PensionPlansDefinedBenefitMember2020-01-052020-04-040000217346us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-032021-04-030000217346us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-052020-04-040000217346txt:Covid19RestructuringPlanMember2021-01-032021-04-030000217346txt:Covid19RestructuringPlanMember2020-01-052021-04-030000217346us-gaap:EmployeeSeveranceMembertxt:Covid19RestructuringPlanMember2021-01-032021-04-030000217346us-gaap:ContractTerminationMembertxt:Covid19RestructuringPlanMember2021-01-032021-04-030000217346txt:Covid19RestructuringPlanMembertxt:IndustrialMemberus-gaap:OperatingSegmentsMember2021-01-032021-04-030000217346txt:TextronSystemsMembertxt:Covid19RestructuringPlanMemberus-gaap:OperatingSegmentsMember2021-01-032021-04-030000217346txt:Covid19RestructuringPlanMemberus-gaap:OperatingSegmentsMembertxt:TextronAviationMember2021-01-032021-04-030000217346txt:Covid19RestructuringPlanMemberus-gaap:CorporateNonSegmentMember2021-01-032021-04-030000217346txt:Covid19RestructuringPlanMembersrt:MinimumMember2021-04-030000217346txt:Covid19RestructuringPlanMembersrt:MaximumMember2021-04-030000217346txt:IndustrialAndTextronAviationMember2020-01-052020-04-040000217346txt:BeechcraftAndKingAirTradeNameMember2020-01-052020-04-040000217346us-gaap:EmployeeSeveranceMember2021-01-020000217346us-gaap:ContractTerminationMember2021-01-020000217346us-gaap:EmployeeSeveranceMember2021-01-032021-04-030000217346us-gaap:ContractTerminationMember2021-01-032021-04-030000217346us-gaap:EmployeeSeveranceMember2021-04-030000217346us-gaap:ContractTerminationMember2021-04-03
Table of Contents

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 April 3, 2021
OR
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)
Delaware05-0315468
(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 classTrading Symbol (s)Name of each exchange on which registered
Common stock, $0.125 par valueTXT
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 filerþAccelerated filerNon-accelerated filer
Smaller reporting companyEmerging 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 April 16, 2021, there were 225,708,875 shares of common stock outstanding.


Table of Contents

TEXTRON INC.
Index to Form 10-Q
For the Quarterly Period Ended April 3, 2021

    
Page
2

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

TEXTRON INC.
Consolidated Statements of Operations (Unaudited)
Three Months Ended
(In millions, except per share amounts)April 3,
2021
April 4,
2020
Revenues
Manufacturing revenues$2,864 $2,763 
Finance revenues15 14 
Total revenues2,879 2,777 
Costs, expenses and other
Cost of sales2,400 2,387 
Selling and administrative expense298 263 
Interest expense40 40 
Special charges6 39 
Non-service components of pension and post-retirement income, net(40)(21)
Gain on business disposition(15) 
Total costs, expenses and other2,689 2,708 
Income before income taxes190 69 
Income tax expense19 19 
Net income$171 $50 
Earnings per share
Basic$0.75 $0.22 
Diluted$0.75 $0.22 
See Notes to the Consolidated Financial Statements.
3

Table of Contents

TEXTRON INC.
Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended
(In millions)April 3,
2021
April 4,
2020
Net income$171 $50 
Other comprehensive income (loss), net of tax
Pension and postretirement benefits adjustments, net of reclassifications30 37 
Foreign currency translation adjustments, net of reclassifications(18)(40)
Deferred gains (losses) on hedge contracts, net of reclassifications4 (9)
Other comprehensive income (loss)16 (12)
Comprehensive income$187 $38 
See Notes to the Consolidated Financial Statements.
4

Table of Contents

TEXTRON INC.
Consolidated Balance Sheets (Unaudited)
(Dollars in millions)April 3,
2021
January 2,
2021
Assets
Manufacturing group
Cash and equivalents$1,897 $2,146 
Accounts receivable, net883 787 
Inventories3,705 3,513 
Other current assets899 950 
Total current assets7,384 7,396 
Property, plant and equipment, less accumulated depreciation
   and amortization of $4,737 and $4,696, respectively
2,478 2,516 
Goodwill2,152 2,157 
Other assets2,468 2,436 
Total Manufacturing group assets14,482 14,505 
Finance group
Cash and equivalents181 108 
Finance receivables, net672 744 
Other assets79 86 
Total Finance group assets932 938 
Total assets$15,414 $15,443 
Liabilities and shareholders’ equity
Liabilities
Manufacturing group
Current portion of long-term debt$257 $509 
Accounts payable1,033 776 
Other current liabilities1,833 1,985 
Total current liabilities3,123 3,270 
Other liabilities2,340 2,357 
Long-term debt3,183 3,198 
Total Manufacturing group liabilities8,646 8,825 
Finance group
Other liabilities119 111 
Debt653 662 
Total Finance group liabilities772 773 
Total liabilities9,418 9,598 
Shareholders’ equity
Common stock29 29 
Capital surplus1,845 1,785 
Treasury stock(294)(203)
Retained earnings6,139 5,973 
Accumulated other comprehensive loss(1,723)(1,739)
Total shareholders’ equity5,996 5,845 
Total liabilities and shareholders’ equity$15,414 $15,443 
Common shares outstanding (in thousands)225,898 226,444 
See Notes to the Consolidated Financial Statements.
5

Table of Contents

TEXTRON INC.
Consolidated Statements of Cash Flows (Unaudited)
For the Three Months Ended April 3, 2021 and April 4, 2020, respectively
Consolidated
(In millions)20212020
Cash flows from operating activities
Net income$171 $50 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Non-cash items:
Depreciation and amortization90 90 
Gain on business disposition(15) 
Deferred income taxes11 (10)
Asset impairments3 39 
Other, net35 33 
Changes in assets and liabilities:
Accounts receivable, net(103)47 
Inventories(178)(368)
Other assets(17)(41)
Accounts payable259 (49)
Other liabilities(105)(203)
Income taxes, net(11)20 
Pension, net(23)(5)
Captive finance receivables, net69  
Other operating activities, net(5)3 
Net cash provided by (used in) operating activities of continuing operations181 (394)
Net cash used in operating activities of discontinued operations (1)
Net cash provided by (used in) operating activities181 (395)
Cash flows from investing activities
Capital expenditures(53)(50)
Net proceeds from business disposition39  
Finance receivables repaid13 13 
Other investing activities, net6 (6)
Net cash provided by (used in) investing activities5 (43)
Cash flows from financing activities
Increase in short-term debt 603 
Net proceeds from long-term debt 643 
Proceeds from borrowings against corporate-owned life insurance policies 377 
Principal payments on long-term debt and nonrecourse debt(287)(24)
Purchases of Textron common stock(91)(54)
Dividends paid(5)(5)
Other financing activities, net24 3 
Net cash provided by (used in) financing activities(359)1,543 
Effect of exchange rate changes on cash and equivalents(3)(16)
Net increase (decrease) in cash and equivalents(176)1,089 
Cash and equivalents at beginning of period2,254 1,357 
Cash and equivalents at end of period$2,078 $2,446 
See Notes to the Consolidated Financial Statements.
6

Table of Contents

TEXTRON INC.
Consolidated Statements of Cash Flows (Unaudited) (Continued)
For the Three Months Ended April 3, 2021 and April 4, 2020, respectively

Manufacturing GroupFinance Group
(In millions)2021202020212020
Cash flows from operating activities
Net income (loss)$177 $48 $(6)$2 
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Non-cash items:
Depreciation and amortization88 89 2 1 
Gain on business disposition(15)   
Deferred income taxes11 (11) 1 
Asset impairments3 39   
Other, net36 33 (1) 
Changes in assets and liabilities:
Accounts receivable, net(103)47   
Inventories(178)(368)  
Other assets(17)(41)  
Accounts payable259 (49)  
Other liabilities(103)(198)(2)(5)
Income taxes, net(23)20 12  
Pension, net(23)(5)  
Other operating activities, net(5)3   
Net cash provided by (used in) operating activities of continuing operations107 (393)5 (1)
Net cash used in operating activities of discontinued operations (1)  
Net cash provided by (used in) operating activities107 (394)5 (1)
Cash flows from investing activities
Capital expenditures(53)(50)  
Net proceeds from business disposition39    
Finance receivables repaid  89 46 
Finance receivables originated  (7)(33)
Other investing activities, net (6)6  
Net cash provided by (used in) investing activities(14)(56)88 13 
Cash flows from financing activities
Increase in short-term debt 603   
Net proceeds from long-term debt 643   
Proceeds from borrowings against corporate-owned life insurance policies 377   
Principal payments on long-term debt and nonrecourse debt(267)(7)(20)(17)
Purchases of Textron common stock(91)(54)  
Dividends paid(5)(5)  
Other financing activities, net24 (9) 12 
Net cash provided by (used in) financing activities(339)1,548 (20)(5)
Effect of exchange rate changes on cash and equivalents(3)(16)  
Net increase (decrease) in cash and equivalents(249)1,082 73 7 
Cash and equivalents at beginning of period2,146 1,181 108 176 
Cash and equivalents at end of period$1,897 $2,263 $181 $183 
See Notes to the Consolidated Financial Statements.
7

Table of Contents

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 January 2, 2021.  In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.
Our financings are conducted through two separate borrowing groups.  The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems and Industrial segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance.  To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.  All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group.
Use of Estimates
We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements.  Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined.
Contract Estimates
For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting.  This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period.  Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable.  
In the first quarter of 2021 and 2020, our cumulative catch-up adjustments increased segment profit by $14 million and $2 million, respectively, and net income by $11 million and $1 million, respectively ($0.05 and $0.01 per diluted share, respectively). In the first quarter of 2021 and 2020, we recognized revenues from performance obligations satisfied in prior periods of $18 million and $4 million, which related to changes in profit booking rates that impacted revenue. In the first quarter of 2021 and 2020, gross favorable adjustments totaled $36 million and $27 million, respectively, and the gross unfavorable adjustments totaled $22 million and $25 million, respectively.
Note 2. Business Disposition
On January 25, 2021, we completed the sale of TRU Simulation + Training Canada Inc. within our Textron Systems segment for net cash proceeds of $39 million and recorded an after-tax gain of $15 million.
8

Table of Contents

Note 3. Accounts Receivable and Finance Receivables
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)April 3,
2021
January 2,
2021
Commercial$732 $668 
U.S. Government contracts184 155 
916 823 
Allowance for credit losses(33)(36)
Total accounts receivable, net$883 $787 
Finance Receivables
Finance receivables are presented in the following table:
(In millions)April 3,
2021
January 2,
2021
Finance receivables$705 $779 
Allowance for credit losses(33)(35)
Total finance receivables, net$672 $744 
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.
Since the first quarter of 2020, the Finance segment has worked with certain customers impacted by the pandemic to provide payment relief through loan modifications. The types of temporary payment relief we offered to these customers included delays in the timing of required principal payments, deferrals of interest payments and/or interest-only payments. For loan modifications that cover payment-relief periods in excess of six months, even if the loan was previously current, the loan is deemed a troubled debt restructuring and considered impaired. These impaired loans are classified as either nonaccrual or watchlist based on a review of the credit quality indicators as discussed above.
During the first quarter of 2021, we modified finance receivable contracts for 12 customers with an outstanding balance at April 3, 2021 totaling $29 million, of which $25 million was categorized as troubled debt restructurings. Due to the nature of these restructurings, the financial effects were not significant. We had four customer defaults related to finance receivables previously modified as a troubled debt restructuring that had an insignificant outstanding balance. 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.
9

Table of Contents

Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:
(Dollars in millions)April 3,
2021
January 2,
2021
Performing$591$612
Watchlist274
Nonaccrual11293
Nonaccrual as a percentage of finance receivables15.89%11.94%
Current and less than 31 days past due$676$738
31-60 days past due312
61-90 days past due611
Over 90 days past due2018
60+ days contractual delinquency as a percentage of finance receivables3.69%3.72%
At April 3, 2021, 27% of our performing finance receivables were originated since the beginning of 2020 and 33% were originated from 2017 to 2019. For finance receivables categorized as nonaccrual, 68% were originated from 2017 to 2019.
On a quarterly basis, we evaluate individual larger balance accounts for impairment. A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality indicators described above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of principal and interest remains probable, but the account’s original terms have been, or are expected to be, significantly modified. If the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification.
A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles.
(In millions)April 3,
2021
January 2,
2021
Finance receivables evaluated collectively$498 $521 
Finance receivables evaluated individually113 163 
Allowance for credit losses based on collective evaluation26 28 
Allowance for credit losses based on individual evaluation7 7 
Impaired finance receivables with specific allowance for losses$42 $46 
Impaired finance receivables with no specific allowance for losses71 117 
Unpaid principal balance of impaired finance receivables122 175 
Allowance for credit losses on impaired finance receivables7 7 
Average recorded investment of impaired finance receivables138 126 
Note 4. Inventories
Inventories are composed of the following:
(In millions)April 3,
2021
January 2,
2021
Finished goods$1,222 $1,228 
Work in process1,663 1,455 
Raw materials and components820 830 
Total inventories$3,705 $3,513 
10

Table of Contents

Note 5. Warranty Liability
Changes in our warranty liability are as follows:
Three Months Ended
(In millions)April 3,
2021
April 4,
2020
Beginning of period$119 $141 
Provision14 13 
Settlements(20)(19)
Adjustments*3 (2)
End of period$116 $133 
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Note 6. Leases
We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide. Our operating leases have remaining lease terms up to 28 years, which include options to extend the lease term for periods up to 25 years when it is reasonably certain the option will be exercised. In the first quarter of 2021 and 2020, operating lease cost totaled $16 million and $15 million, respectively. Cash paid for operating leases totaled $16 million and $15 million in the first quarter of 2021 and 2020, respectively, which is classified in cash flows from operating activities. Noncash transactions totaled $45 million and $3 million in the first quarter of 2021 and 2020, respectively, reflecting the recognition of operating lease assets and liabilities for new or extended leases. Variable and short-term lease costs were not significant.
Balance sheet and other information related to our operating leases is as follows:
(Dollars in millions)April 3,
2021
January 2,
2021
Other assets$384$349
Other current liabilities5447
Other liabilities336306
Weighted-average remaining lease term (in years)10.911.6
Weighted-average discount rate3.52%4.17%
At April 3, 2021, maturities of our operating lease liabilities on an undiscounted basis totaled $50 million for the remainder of 2021, $63 million for 2022, $54 million for 2023, $45 million for 2024, $41 million for 2025 and $240 million thereafter.
Note 7. 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.
11

Table of Contents

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 April 3, 2021 and January 2, 2021, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $423 million and $318 million, respectively. At April 3, 2021, the fair value amounts of our foreign currency exchange contracts were a $9 million asset and a $1 million liability. At January 2, 2021, the fair value amounts of our foreign currency exchange contracts were a $5 million asset and a $2 million liability.
Our Finance group enters into interest rate swap agreements to mitigate exposure to fluctuations in interest rates. By using these contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. At April 3, 2021 and January 2, 2021, we had one swap agreement that matures in February 2022 with a notional amount of $289 million and $294 million, respectively, and a fair value of a $3 million and $4 million liability, respectively.
Assets and Liabilities Not Recorded at Fair Value
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
April 3, 2021January 2, 2021
CarryingEstimatedCarryingEstimated
(In millions)ValueFair ValueValueFair Value
Manufacturing group
Debt, excluding leases$(3,438)$(3,615)$(3,690)$(3,986)
Finance group
Finance receivables, excluding leases482 525 549 599 
Debt(653)(599)(662)(587)
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 8. 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 April 3, 2021
Beginning of period$29 $1,785 $(203)$5,973 $(1,739)$5,845 
Net income— — — 171 — 171 
Other comprehensive income— — — — 16 16 
Share-based compensation activity— 60 — — — 60 
Dividends declared— — — (5)— (5)
Purchases of common stock— — (91)— — (91)
End of period$29 $1,845 $(294)$6,139 $(1,723)$5,996 
Three months ended April 4, 2020
Beginning of period$29 $1,674 $(20)$5,682 $(1,847)$5,518 
Net income— — — 50 — 50 
Other comprehensive loss— — — — (12)(12)
Share-based compensation activity— 37 — — — 37 
Dividends declared— — — (5)— (5)
Purchases of common stock— — (54)— — (54)
End of period$29 $1,711 $(74)$5,727 $(1,859)$5,534 
Dividends per share of common stock were $0.02 for both the first quarter of 2021 and 2020.
12

Table of Contents

Earnings Per Share
We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period.  Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options.  
The weighted-average shares outstanding for basic and diluted EPS are as follows:
Three Months Ended
(In thousands)April 3,
2021
April 4,
2020
Basic weighted-average shares outstanding227,009 228,311 
Dilutive effect of stock options1,275 616 
Diluted weighted-average shares outstanding228,284 228,927 
Stock options to purchase 4.3 million and 7.5 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for the first quarter of 2021 and 2020, respectively, as their effect would have been anti-dilutive.
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss)
The components of Accumulated other comprehensive loss are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments
Foreign
Currency
Translation
Adjustments
Deferred
Gain (Losses)
on Hedge
Contracts
Accumulated
Other
Comprehensive
Loss
Balance at January 2, 2021$(1,780)$42 $(1)$(1,739)
Other comprehensive loss before reclassifications (32)4 (28)
Reclassified from Accumulated other comprehensive loss30 14  44 
Balance at April 3, 2021$(1,750)$24 $3 $(1,723)
Balance at January 4, 2020$(1,811)$(36)$ $(1,847)
Other comprehensive loss before reclassifications (40)(8)(48)
Reclassified from Accumulated other comprehensive loss37  (1)36 
Balance at April 4, 2020$(1,774)$(76)$(9)$(1,859)

The before and after-tax components of Other comprehensive income (loss) are presented below:
April 3, 2021April 4, 2020
(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 loss*$38 $(9)$29 $46 $(10)$36 
Amortization of prior service cost*2 (1)1 2 (1)1 
Pension and postretirement benefits adjustments, net40 (10)30 48 (11)37 
Foreign currency translation adjustments:
Foreign currency translation adjustments(32) (32)(37)(3)(40)
Business disposition14  14    
Foreign currency translation adjustments, net(18) (18)(37)(3)(40)
Deferred gains (losses) on hedge contracts:
Current deferrals5 (1)4 (9)1 (8)
Reclassification adjustments   (1) (1)
Deferred gains (losses) on hedge contracts, net5 (1)4 (10)1 (9)
Total$27 $(11)$16 $1 $(13)$(12)
*These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (credit). See Note 16 of our 2020 Annual Report on Form 10-K for additional information.

13

Table of Contents

Note 9. Segment Information
We operate in, and report financial information for, the following five business segments: Textron Aviation, Bell, Textron Systems, Industrial and Finance. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes interest expense, certain corporate expenses, gains/losses on major business dispositions and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.
Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below:
Three Months Ended
(In millions)April 3,
2021
April 4,
2020
Revenues
Textron Aviation$865 $872 
Bell846 823 
Textron Systems328 328 
Industrial825 740 
Finance15 14 
Total revenues$2,879 $2,777 
Segment Profit
Textron Aviation$47 $3 
Bell105 115 
Textron Systems51 26 
Industrial47 9 
Finance6 3 
Segment profit256 156 
Corporate expenses and other, net(40)(14)
Interest expense, net for Manufacturing group(35)(34)
Special charges(6)(39)
Gain on business disposition15  
Income before income taxes$190 $69 

Note 10. Revenues
Disaggregation of Revenues
Our revenues disaggregated by major product type are presented below:
Three Months Ended
(In millions)April 3,
2021
April 4,
2020
Aircraft$535 $515 
Aftermarket parts and services330 357 
Textron Aviation865 872 
Military aircraft and support programs577 620 
Commercial helicopters, parts and services269 203 
Bell846 823 
Air systems*123 136 
Land and sea systems*57 60 
Other148 132 
Textron Systems328 328 
Fuel systems and functional components497 465 
Specialized vehicles328 275 
Industrial825 740 
Finance15 14 
Total revenues$2,879 $2,777 
*At the beginning of 2021, Textron Systems began reporting under the Air Systems, Land and Sea Systems and Other product lines to reflect a reorganization and transfer of certain products. Prior period revenues have been reclassified to conform to current period presentation.
14

Table of Contents

Our revenues for our segments by customer type and geographic location are presented below:
(In millions)Textron
Aviation
BellTextron
Systems
IndustrialFinanceTotal
Three months ended April 3, 2021
Customer type:
Commercial$846 $266 $58 $820 $15 $2,005 
U.S. Government19 580 270 5  874 
Total revenues$865 $846 $328 $825 $15