202 3 A N NUAL REPORT
GLOB AL
NE TWORK O F
BUSI NE SSE S
Textron is known around the world for its
powerful brands of aircraft, defense and
industrial products that provide customers
with groundbreaking technologies,
innovative solutions and first-class service.
TEXTRON AVIATION
TEXTRO N SYSTEMS
Textron Aviation is home to the Beechcraft® and Cessna®
Textron Systems’ businesses develop, manufacture and
aircraft brands and is a leader in general aviation through
integrate products and services for U.S. and non-U.S.
two principal product lines: aircraft and aftermarket
military, government and commercial customers to
parts and services. Aircraft includes sales of business
support defense, homeland security, aerospace and other
jets, turboprop and military trainer and defense aircraft
missions. Product and service offerings include electronic
and piston engine aircraft. Aftermarket parts and services
systems and solutions, advanced marine craft, piston
includes commercial parts sales and maintenance,
aircraft engines, live military air-to-air and air-to-ship
inspection and repair service.
BE LL
Bell is a leading supplier of helicopters, tiltrotor aircraft
and related spare parts and services. Bell supplies
military helicopters and tiltrotors to the U.S. Government
and non-U.S. military customers and supplies
training, weapons and related components, unmanned
aircraft systems, and both manned and unmanned
armored and specialty vehicles.
TEXTRO N eAVI ATIO N
Textron eAviation includes Pipistrel, a manufacturer of
light aircraft, along with other research and development
commercially certified helicopters to corporate, private,
initiatives related to sustainable aviation solutions. Pipistrel
law enforcement, utility, public safety, emergency
medical and other helicopter operators. Bell provides
offers a family of light aircraft and gliders with both electric
and combustion engines. Pipistrel’s Velis Electro is the
support and service for an installed base of approximately
world’s first, and currently only, electric aircraft to receive
13,000 helicopters.
I N DU STRIAL
Our industrial segment designs and manufactures a
variety of products within the Kautex and Specialized
Vehicles product lines. Kautex is a leader in designing
full type certification from the European Union Aviation
Safety Agency and from the UK Civil Aviation Authority.
FINANCE
Our Finance segment, operated by Textron Financial
Corporation (TFC), is a commercial finance business that
and manufacturing plastic fuel systems for automobiles
provides financing solutions for purchasers of Textron
and light trucks, along with other automotive systems
products, primarily Textron Aviation aircraft and Bell
and components. Specialized Vehicles includes golf cars,
helicopters. For more than five decades, TFC has played
recreational and utility vehicles, aviation ground support
a key role for Textron customers around the globe.
equipment and professional mowers, manufactured
by Textron Specialized Vehicles businesses.
SE L ECTE D
YEAR- OVER-YEAR
FINAN CIAL DATA
(Dollars in Millions, Except Per Share Amounts)
Total Revenues
Total Segment Profit1
Income from Continuing Operations—GAAP
Adjusted Income from Continuing Operations—Non-GAAP1
PER SHARE OF COMMON STOCK
Common Stock Price at Year-End
Diluted Income from Continuing Operations—GAAP
Adjusted Diluted Income from Continuing Operations—Non-GAAP1
COMMON SHARES OUTSTANDING (In Thousands)
Diluted Average
Year-End
FINANCIAL POSITION
Total Assets
Manufacturing Group Debt
Finance Group Debt
Shareholders’ Equity
Manufacturing Group Debt-to-Capital (Net of Cash)
Manufacturing Group Debt-to-Capital
2023
$13,683
1,327
922
1,127
2022
$12,869
1,136
862
956
$ 80.42
$ 70.80
4.57
5.59
201,774
192,898
4.01
4.45
214,973
206,161
$16,856
$16,293
3,526
348
6,987
17%
34%
3,182
375
7,113
15%
31%
KEY PERFORMANCE METRICS
Net Cash from Operating Activities of Continuing Operations for the Manufacturing Group—GAAP
Manufacturing Cash Flow Before Pension Contributions—Non-GAAP1
$ 1,270
931
$ 1,461
1,178
1. Segment Profit, Adjusted Income from Continuing Operations, Adjusted Diluted Earnings Per Share and Manufacturing Cash Flow Before Pension Contributions are Non-GAAP Financial Measures. See page 7 for
a Reconciliation to GAAP.
2023 TOTAL REVENUES
2023 TOTAL REVENUES
2023 TOTAL REVENUES
BY SEGMENT
BY SEGMENT
BY SEGMENT
Textron Aviation 39.3%
Textron Aviation 39.3%
Textron Aviation 39.3%
Industrial 28.1%
Industrial 28.1%
Industrial 28.1%
Bell 23.0%
Bell 23.0%
Bell 23.0%
Textron Systems 9.0%
Textron Systems 9.0%
Textron Systems 9.0%
Finance 0.4%
Finance 0.4%
Finance 0.4%
Textron eAviation 0.2%
Textron eAviation 0.2%
Textron eAviation 0.2%
2023 TOTAL REVENUES
BY CUSTOMER
2023 TOTAL REVENUES
BY CUSTOMER
2023 TOTAL REVENUES
BY CUSTOMER
Commercial 79%
U.S. Government 21%
Commercial 79%
U.S. Government 21%
Commercial 79%
U.S. Government 21%
2023 TOTAL REVENUES
2023 TOTAL REVENUES
2023 TOTAL REVENUES
BY REGION
BY REGION
BY REGION
U.S. 68%
U.S. 68%
U.S. 68%
Europe 10%
Europe 10%
Europe 10%
Other International 22%
Other International 22%
Other International 22%
Textron 2023 Annual Report 1
F E LLOW S HAREHOLDERS ,
IN 2023, WE SUCCESSFULLY EXECUTED ON OUR STRATEGY
of ongoing investments in new products and programs to drive
organic growth and margin expansion. We launched new
products across our businesses, won new business from our
U.S. military customers and continued the innovation that
will drive future growth.
SCOTT C. DONNELLY
Chairman and Chief Executive Officer
R O B UST N EW PRODUCT PIPE L INE
for the Citation Ascend, which is expected to enter into
Reflecting strong demand for its broad range of aircraft,
service in 2025.
Textron Aviation ended 2023 with a backlog of
Textron Aviation also announced the Citation CJ3 Gen2, the
$7.2 billion, an increase of $782 million from year-end
most comprehensive of our Gen2 product announcements
2022. Textron Aviation continued its investments in new
to date, incorporating leading-edge technology, proven
products with the introduction of the Cessna Citation
performance and an unmatched cabin experience in the
Ascend, which is currently under development.
light jet market. Both new Citation models have been
The Citation Ascend is designed to bring the latest
technology and innovations in cockpit avionics, engine
designed with the input of Textron Aviation’s Customer
Advisory Boards.
performance and luxurious cabin features to the midsize
We also announced the addition of the revolutionary
business jet market. In September, Textron Aviation
Garmin Emergency Autoland system to the Beechcraft
and NetJets announced a fleet agreement for the option
Denali, a new, single-engine turboprop which is currently
for NetJets to purchase up to 1,500 additional Citation
in the certification process with the Federal Aviation
business jets over the next 15 years. As part of this
Administration. The Denali is the first aircraft powered
agreement, NetJets was named as the fleet launch customer
by the new, efficient GE Catalyst engine.
FI RST Q UARTER
Beechcraft King Air 260
First order for Kautex
selected for
Navy’s new
Multi-
Engine
Training
System
2 Textron 2023 Annual Report
Pentatonic underbody battery
protection system
Jacobsen and Cushman
showcase all-electric
product lineup
Textron Specialized Vehicles introduced new products
with key suppliers,
across its brands. Demonstrating its leadership in lithium
ordering long-lead
battery technology and commitment to electrification, the
materials and breaking
company unveiled its new Jacobsen SLF1 ELiTE lithium
ground on a new FLRAA
mower. The newest Jacobsen offering was the centerpiece
Drive Systems Test
of an all-electric display of Jacobsen and Cushman products
Lab as it continues work
at the 2023 Golf Course Superintendents Association of
on a truly remarkable
America Conference and Trade Show.
E-Z-GO also released new vehicle models, including the
street-legal E-Z-GO Liberty LSV for personal transportation
and a next-generation upgrade to the market-leading RXV
golf car. New Cushman low-speed vehicles, the Cushman
and transformational
tiltrotor aircraft, based
on the V-280 Valor, to
meet U.S. Army weapon
development.
system requirements.
Textron Aviation
continued its
investments in
new products with
the introduction
of the Cessna
Citation Ascend,
which is
currently under
Tour LSV and Hauler PRO LSV, are street-legal vehicles
Bell was selected to
designed for utility use. The new Arctic Cat CATALYST
compete for the Defense Advanced Research Projects
snowmobile platform featured an innovative design that
Agency (DARPA) Speed and Runway Independent
delivers more control for the rider and requires significantly
Technologies (SPRINT) X-Plane program, developing an
less effort in carving through the snow.
experimental aircraft with jet aircraft performance while
providing runway independence for the next generation of
MILITARY PROGRAM AWARD S A ND
air mobility platforms. With Bell’s long history producing
DOWNSELECTS
X-planes such as the Bell X-1 and XV-15, and its investments
During 2023, Bell began work on development of the
next-generation tiltrotor aircraft for the U.S. Army’s Future
Long Range Assault Aircraft (FLRAA) program under a
in High-Speed Vertical Take-off and Landing (HSVTOL)
technology and research, Bell will continue to push the
boundaries of vertical lift aircraft performance.
contract awarded to Bell in December 2022. Bell ramped up
In February, Textron Aviation announced it was awarded
activity with additional engineering resources, contracting
the Multi-Engine Training System (METS) contract by Naval
SECOND QUARTER
Bell breaks ground on new
FLRAA facility
Milestone 400th delivery of
Citation XLS Gen2 achieves FAA
certification, begins deliveries
Citation CJ4
Textron Aviation
announces Cessna
Citation Ascend
2 Textron 2023 Annual Report
Textron 2023 Annual Report 3
Air Systems Command
Aerosonde® Mk. 4.8 Hybrid Quad UAS based on the Army’s
(NAVAIR). The initial
Modular Open System Approach requirements.
During the year,
the U.S. Army
downselected
Textron Systems
for several
important
programs.
contract award was
for 10 Beechcraft King
Air 260 aircraft, with
options for up to an
additional 54 aircraft,
and associated spare
parts and support.
Deliveries of the aircraft
are expected to begin in 2024, and the customer recently
exercised the option for an additional 10 aircraft.
On the Land side, Textron Systems’ RIPSAW® M3 was
downselected to participate in the Army’s Robotic Combat
Vehicle Phase 1: Platform Prototype program, an anticipated
Army Program of Record. Textron Systems will deliver two
prototype vehicles in 2024 to the Army for comprehensive
testing. Textron Systems is also part of a team chosen for the
next phase of the XM30 Combat Vehicle Program. Textron
Systems is the designated manufacturer for this team,
fabricating, assembling and testing the prototype vehicles.
The XM30 vehicle will eventually replace the Army’s fleet
Textron Systems continued to expand its support to our
of more than 3,000 M2 Bradley Fighting Vehicles.
military customers. We grew our Intelligence, Surveillance
and Reconnaissance (ISR) support to the U.S. Navy,
LE A DE RSHI P I N ELECT RI FI CATI O N
expanding our Aerosonde® uncrewed aircraft systems
(UAS) from four to seven vessels over the course of 2023.
In addition, the business received a Navy award for the
design, development and integration of a next-generation
mine sweep system known as the Magnetic and Acoustic
As the new Jacobsen SLF1 ELiTE leads the turf industry in
electrification, we are making tremendous strides across
the company with ground-breaking electric technologies
and products for land and air.
Generation Next Unmanned Superconducting Sweep
As part of its ongoing initiative to electrify its product line,
(MAGNUSS) for use on board the Common Unmanned
Textron Ground Support Equipment launched its new TUG
Surface Vehicle platform.
During the year, the U.S. Army downselected Textron
Systems for several important programs. After successfully
completing the requirements for the Future Tactical
660 Li belt loader, powered by lithium battery technology.
This zero-emission, fully electric operation allows airlines, air
freight companies and ground handlers to help achieve their
sustainability goals with lower operational costs.
Uncrewed Aircraft System (FTUAS) program Option 1,
Pipistrel, within our Textron eAviation segment, has expanded
Textron Systems was selected for the Option 2 award. In this
its distributor and customer reach while making progress on
phase, Textron Systems refined its proposed design for the
new products. In 2023, Pipistrel added three new distributors
TH IRD QUARTER
Team Lynx,
which includes
Textron Systems,
downselected
for XM30 Combat
Vehicle Program
Army selects
Textron Systems
for Phase 2 of
FTUAS program
Announced fleet agreement with NetJets
for option to purchase up to 1,500
additional Citation jets over 15 years
4 Textron 2023 Annual Report
Textron 2023 Annual Report 5
in the U.S. that collectively represent 29 states, as well as
After receiving its first order from an automotive OEM
distributors in both Canada and Africa. These distributors
in late 2022 for a thermoplastic composite underbody
are an extension of our continued efforts to sell, service and
battery protection system, Kautex ramped up in preparation
support our growing fleet of Pipistrel aircraft.
for successful production of this innovative product.
Pipistrel also announced that its Velis Electro will be used
by the U.S Air Force’s (USAF) Agility Prime program to
explore operational and training uses of the aircraft. Agility
Prime is the USAF’s vertical lift program that partners
with the eVTOL commercial industry, providing access to
zero emission aircraft for a variety of uses, including training
and operations.
The underbody protection product is part of Kautex’s
customizable Pentatonic battery system, which also
includes battery enclosures and thermal management
systems for use in electric vehicles, from hybrid to full
battery electric vehicles. This order represented a significant
step in establishing Kautex as a supplier in the expanding
battery electric vehicle market.
Pipistrel’s 2023 progress
A ST RO NG YEA R AC RO SS O U R BU S IN ES SE S
We are making
tremendous
strides across
the company
with ground-
breaking electric
technologies
and products for
land and air.
included preparation
for the Nuuva v300’s
first flight. The hybrid
electric, remotely
piloted VTOL cargo
aircraft, has been
designed to carry up to
660 pounds of payload
at a typical range of up
to 162nm. Additionally,
Textron eAviation
is leveraging expertise across our Bell, Textron Aviation
and Textron Systems businesses in the development of
our Nexus eVTOL platform demonstrator for passenger
transport. During 2023, the team conducted wind tunnel
By successfully executing on our long-term strategy of
investing in new products, our sales and service channels
and our manufacturing operations, we had a year of strong
performance. With the hard work and dedication of our
employees, our achievements position us for sustained
growth in the year ahead. Guided by our values of integrity,
respect, trust, and the pursuit of excellence, we will
continue to drive innovation across our company and
remain committed to delivering long-term value for our
shareholders. On behalf of Textron’s Board of Directors,
thank you for your continued support of our company.
testing on a scale-powered model and began the build
SCOT T C . DO NNE LLY
of the demonstrator vehicle.
CHA IRMAN A ND CHIEF EXECUT IVE OF F ICER
FOU RTH QUARTER
Arctic Cat
unveils new
858 snowmobile
engine
Cessna Citation CJ3
Gen2 unveiled
Textron Systems’
RIPSAW downselected
for Army program
Bell selected to compete
for the DARPA SPRINT
X-Plane program
Textron 2023 Annual Report 5
4 Textron 2023 Annual Report
L EADE RSH IP
B OARD OF DI RECTORS
SCOTT C. DONNELLY (1)
Chairman, President and CEO
Textron Inc.
MICHAEL X. GARRETT (2) (3)
General (Retired)
U.S. Army
DEBORAH LEE JAMES (1) (4)
23rd Secretary of the
U.S. Air Force (Retired)
THOMAS A. KENNEDY (2) (4)
Executive Chairman (Retired)
Raytheon Technologies
RICHARD F. AMBROSE (2) (4)
Executive Vice President, Space
(Retired)
Lockheed Martin Corporation
KATHLEEN M. BADER (2) (3)
President and CEO (Retired)
NatureWorks LLC
R. KERRY CLARK (1) (2) (3) (5)
Chairman and CEO (Retired)
Cardinal Health, Inc.
LIONEL L. NOWELL III (1) (2)
Senior Vice President and
Treasurer (Retired)
PepsiCo, Inc.
JAMES L. ZIEMER (2) (4)
President and CEO (Retired)
Harley-Davidson, Inc.
MARIA T. ZUBER (1) (3)
Vice President, Research
Massachusetts Institute of
Technology
Numbers Indicate Committee
Memberships:
(1) Executive Committee:
Chair, Scott C. Donnelly
(2) Audit Committee:
Chair, Lionel L. Nowell III
(3) Nominating and Corporate
Governance Committee:
Chair, Maria T. Zuber
(4) Organization and Compensation
Committee:
Chair, Deborah Lee James
(5) Lead Director:
R. Kerry Clark
EXECUTIVE
O FFI CERS
SCOTT C. DONNELLY
Chairman, President and
Chief Executive Officer
Textron Inc.
FRANK T. CONNOR
Executive Vice President and
Chief Financial Officer
Textron Inc.
JULIE G. DUFFY
Executive Vice President and
Chief Human Resources Officer
Textron Inc.
E. ROBERT LUPONE
Executive Vice President,
General Counsel, Secretary and
Chief Compliance Officer
Textron Inc.
SEGMENT AND
BUSINESS UNIT
PRESIDENTS
LISA M. ATHERTON
President and CEO
Bell
RONALD DRAPER
President and CEO
Textron Aviation
TOM HAMMOOR
President and CEO
Textron Systems
ROBERT HOTALING
President
Textron Financial
JÖRG RAUTENSTRAUCH
President and CEO
Industrial Segment and
Kautex
ROB SCHOLL
President and CEO
Textron Specialized
Vehicles
KRIYA SHORTT
President and CEO
Textron eAviation
CO RPO RATE
O F FI CE RS
MARK S. BAMFORD
Vice President and
Corporate Controller
Textron Inc.
JANET S. FOGARTY
Vice President and
Deputy General Counsel
Textron Inc.
DANA L. GOLDBERG
Vice President – Tax
Textron Inc.
SCOTT P. HEGSTROM
Vice President –
Mergers & Acquisitions and
Strategy
Textron Inc.
SHANNON H. HINES
Senior Vice President –
Government Affairs &
Washington Operations
Textron Inc.
TODD A. KACKLEY
Vice President and
Chief Information Officer
Textron Inc.
LAWRENCE J. LA SALA
Vice President and
Deputy General Counsel –
Litigation
Textron Inc.
THOMAS N. NICHIPOR
Vice President –
Textron Audit Services
Textron Inc.
DAVID ROSENBERG
Vice President –
Investor Relations
Textron Inc.
ERIC SALANDER
Vice President and
Treasurer
Textron Inc.
6 Textron 2023 Annual Report
FOOTNOTE TO SELECTED
YEAR- OVER-YEAR FINANCIAL DATA (continued f rom page 1)
NON- GA AP FINANCIAL MEASURES AND RECONCILIATION TO GA AP
SEGMENT PROFIT
Segment profit is an important measure used by our chief operating decision maker 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.
ADJUSTED INCOME FROM CONTINUING OPERATIONS, ADJUSTED DILUTED EARNINGS PER SHARE AND OUTLOOK
Adjusted income from continuing operations and adjusted diluted earnings per share exclude special charges, net of tax and gains/losses on
major business dispositions, net of tax. We consider items recorded in special charges, such as enterprise-wide restructuring, certain asset
impairment charges, and acquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative
of ongoing operations.
Beginning in 2023, these measures also exclude LIFO inventory provision, net of tax and Intangible asset amortization, net of tax. LIFO inventory
provision is excluded to improve comparability with other companies in our industry who have not elected to use the LIFO inventory costing
method. Intangible asset amortization is excluded to improve comparability as the impact of such amortization can vary substantially from
company to company depending upon the nature and extent of acquisitions and exclusion of this expense is consistent with the presentation of
non-GAAP measures provided by other companies within our industry. Management believes that it is important for investors to understand that
these intangible assets were recorded as part of purchase accounting and contribute to revenue generation. The prior period has been recast to
conform to this presentation.
ADJUSTED INCOME FROM CONTINUING OPERATIONS AND ADJUSTED DILUTED EARNINGS PER SHARE GAAP
TO NON-GAAP RECONCILIATION
(Dollars in Millions, Except Per Share Amounts)
INCOME FROM CONTINUING OPERATIONS—GAAP
Add: Special charges, net of tax
LIFO Inventory provision, net of tax
Intangible asset amortization, net of tax
ADJUSTED INCOME FROM CONTINUING OPERATIONS—NON-GAAP
INCOME FROM CONTINUING OPERATIONS—GAAP
Add: Special charges, net of tax
LIFO inventory provision, net of tax
Intangible asset amortization, net of tax
ADJUSTED INCOME FROM CONTINUING OPERATIONS—NON-GAAP
2023
$ 922
94
81
30
$1,127
$ 4.57
0.47
0.40
0.15
$ 5.59
2022
$ 862
—
54
40
$ 956
$4.01
—
0.25
0.19
$4.45
MANUFACTURING CASH FLOW BEFORE PENSION CONTRIBUTIONS
Manufacturing cash flow before pension contributions adjusts net cash from operating activities (GAAP) for the following:
• Deducts capital expenditures and includes proceeds from insurance recoveries and the sale of property, plant and equipment
to arrive at the net capital investment required to support ongoing manufacturing operations;
• Excludes dividends received from Textron Financial Corporation (TFC) and capital contributions to TFC provided under the Support Agreement
and debt agreements as these cash flows are not representative of manufacturing operations;
• Adds back pension contributions as we consider our pension obligations to be debt-like liabilities. Additionally, these contributions can fluctuate
significantly from period to period and we believe that they are not representative of cash used by our manufacturing operations during the period.
While we believe this measure provides a focus on cash generated from manufacturing operations, before pension contributions, and may be used
as an additional relevant measure of liquidity, it does not necessarily provide the amount available for discretionary expenditures since we have
certain non-discretionary obligations that are not deducted from the measure.
MANUFACTURING CASH FLOW BEFORE PENSION CONTRIBUTIONS GAAP TO NON-GAAP RECONCILIATION Millions)
(In Millions)
NET CASH FROM OPERATING ACTIVITIES—GAAP
Less: Capital expenditures
Add: Total pension contribution
Proceeds from sale of property, plant and equipment
MANUFACTURING CASH FLOW BEFORE PENSION CONTRIBUTIONS—NON-GAAP
2023
$1,270
(402)
45
18
$ 931
2022
$1,461
(354)
49
22
$1,178
Textron 2023 Annual Report 7
6 Textron 2023 Annual Report
TEXTRON ’ S DIVERSE PRODUCT PORTFOLI O
TEXTRON AVIATION
Citation Longitude®
Citation Latitude®
Beechcraft® Denali
BELL
Bell V-280 Valor
CMV-22 Osprey
Bell 429
IN DUSTRIAL
E-Z-GO RXV ELiTE
Kautex Pentatonic Battery System
Jacobsen Eclipse 360 ELiTE
TEXTRON SYSTEMS
Ship-to-Shore Connector
Aerosonde® Mk. 4.8 HQ
CottonmouthTM
TEXTRON eAVIATION
Pipistrel Velis Electro
Pipistrel Panthera
Pipistrel Nuuva V300
8 Textron 2023 Annual Report
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☐ T(cid:37)(cid:20)N(cid:38)(cid:28)T(cid:28)(cid:34)N(cid:1)(cid:37)(cid:24)(cid:35)(cid:34)(cid:37)T(cid:1)(cid:35)(cid:40)(cid:37)(cid:38)(cid:40)(cid:20)NT(cid:1)T(cid:34)(cid:1)(cid:38)(cid:24)(cid:22)T(cid:28)(cid:34)N(cid:1)(cid:10)(cid:12)(cid:1)(cid:34)(cid:37)(cid:1)(cid:10)(cid:14)(cid:3)(cid:50)(cid:4)(cid:1)(cid:34)(cid:25)(cid:1)T(cid:27)(cid:24)(cid:1)(cid:38)(cid:24)(cid:22)(cid:40)(cid:37)(cid:28)T(cid:28)(cid:24)(cid:38)(cid:1)(cid:24)(cid:43)(cid:22)(cid:27)(cid:20)N(cid:26)(cid:24)(cid:1)(cid:20)(cid:22)T(cid:1)(cid:34)(cid:25)(cid:1)(cid:10)(cid:18)(cid:12)(cid:13)
(cid:25)(cid:61)(cid:64)(cid:1)t(cid:54)e(cid:1)(cid:52)i(cid:65)(cid:49)al(cid:1)(cid:71)ea(cid:64)(cid:1)e(cid:60)(cid:50)e(cid:50)(cid:1)(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)
or
(cid:25)(cid:61)(cid:64)(cid:1)t(cid:54)e(cid:1)t(cid:64)a(cid:60)(cid:65)iti(cid:61)(cid:60)(cid:1)(cid:62)e(cid:64)i(cid:61)(cid:50)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)(cid:1)(cid:1)t(cid:61)(cid:1)(cid:1)(cid:8)
(cid:22)(cid:61)mmi(cid:65)(cid:65)i(cid:61)(cid:60)(cid:1)(cid:25)ile(cid:1)N(cid:67)m(cid:48)e(cid:64)(cid:1)(cid:10)(cid:7)(cid:14)(cid:13)(cid:17)(cid:9)(cid:1)
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)(cid:49)(cid:8)(cid:1)
(Exact name of registrant as specified in its charter)
(cid:23)ela(cid:69)a(cid:64)e
(State or other (cid:65)urisdiction of incorporation or organi(cid:81)ation)
(cid:13)(cid:9)(cid:1)(cid:42)e(cid:65)tmi(cid:60)(cid:65)te(cid:64)(cid:1)(cid:38)t(cid:64)eet(cid:6)(cid:1)(cid:35)(cid:64)(cid:61)(cid:68)i(cid:50)e(cid:60)(cid:49)e(cid:6)(cid:1)(cid:37)(cid:28)
(Address of principal executive offices)
(cid:9)(cid:14)(cid:7)(cid:9)(cid:12)(cid:10)(cid:14)(cid:13)(cid:15)(cid:17)
(I.R.S. Employer Identification No.)
(cid:9)(cid:11)(cid:18)(cid:9)(cid:12)
(Zip code)
Registrant(cid:88)s Telephone Number, Including Area Code: (cid:3)(cid:13)(cid:9)(cid:10)(cid:4)(cid:1)(cid:13)(cid:11)(cid:10)(cid:7)(cid:11)(cid:17)(cid:9)(cid:9)(cid:1)
Securities registered pursuant to Section 12(b) of the Act:
Title(cid:1)(cid:61)(cid:52)(cid:1)(cid:24)a(cid:49)(cid:54)(cid:1)(cid:22)la(cid:65)(cid:65)
Common Stock (cid:85) par value (cid:3)0.12(cid:20)
T(cid:64)a(cid:50)i(cid:60)(cid:53)(cid:1)(cid:38)(cid:71)m(cid:48)(cid:61)l(cid:3)(cid:65)(cid:4)
TXT
Name(cid:1)(cid:61)(cid:52)(cid:1)(cid:24)a(cid:49)(cid:54)(cid:1)(cid:24)(cid:70)(cid:49)(cid:54)a(cid:60)(cid:53)e(cid:1)(cid:61)(cid:60)(cid:1)
(cid:42)(cid:54)i(cid:49)(cid:54)(cid:1)(cid:37)e(cid:53)i(cid:65)te(cid:64)e(cid:50)
New (cid:51)ork Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)(cid:55)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 40(cid:20) of the Securities Act. x(cid:51)es ¨ No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 1(cid:20)(d) of the Act . ¨ (cid:51)es x No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 1(cid:20)(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 sub(cid:65)ect to such filing requirements for the
past 90 days. x (cid:51)es ¨ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 40(cid:20) of Regulation
S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x (cid:51)es ¨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 (cid:86)large accelerated filer,(cid:87) (cid:86)accelerated filer,(cid:87) (cid:86)smaller reporting company(cid:87) and (cid:86)emerging growth company(cid:87) in Rule 12b-2 of
the Exchange Act (Check one):
Large accelerated filer x
Non-accelerated filer ☐
Smaller reporting company ☐
Accelerated filer
☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻
Indicate by check mark whether the registrant has filed a report on and attestation to its management(cid:88)s assessment of the effectiveness of its internal control over
financial reporting under Section 404(b) of the Sarbanes-Oxley Act (1(cid:20) (cid:47).S.C. 72(cid:21)2(b)) by the registered public accounting firm that prepared or issued its audit
report. ☒ (cid:51)es ¨ No
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing
reflect the correction of an error to previously issued financial statements(cid:1) ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any
of the registrant(cid:6)s executive officers during the relevant recovery period pursuant to (cid:82)240.10D-1(b) ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ (cid:51)es ☒ No
The aggregate market value of the registrant(cid:88)s Common Stock held by non-affiliates at July 1, 2023 was approximately (cid:3)13.3 billion based on the New (cid:51)ork
Stock Exchange closing price for such shares on that date. The registrant has no non-voting common equity.
At February 3, 2024, 192,(cid:23)(cid:20)3,9(cid:23)1 shares of Common Stock were outstanding.
(cid:23)(cid:61)(cid:49)(cid:67)me(cid:60)t(cid:65)(cid:1)(cid:28)(cid:60)(cid:49)(cid:61)(cid:64)(cid:62)(cid:61)(cid:64)ate(cid:50)(cid:1)(cid:48)(cid:71)(cid:1)(cid:37)e(cid:52)e(cid:64)e(cid:60)(cid:49)e
Part III of this Report incorporates information from certain portions of the registrant(cid:88)s Definitive Proxy Statement for its Annual Meeting of Shareholders to be
held on April 24, 2024.
Textron 2023 Annual Report 1
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)(cid:49)(cid:8)
(cid:28)(cid:60)(cid:50)e(cid:70)(cid:1)t(cid:61)(cid:1)(cid:20)(cid:60)(cid:60)(cid:67)al(cid:1)(cid:37)e(cid:62)(cid:61)(cid:64)t(cid:1)(cid:61)(cid:60)(cid:1)(cid:25)(cid:61)(cid:64)m(cid:1)(cid:10)(cid:9)(cid:7)(cid:30)
(cid:25)(cid:61)(cid:64)(cid:1)t(cid:54)e(cid:1)(cid:25)i(cid:65)(cid:49)al(cid:1)(cid:44)ea(cid:64)(cid:1)(cid:24)(cid:60)(cid:50)e(cid:50)(cid:1)(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:12)
(cid:35)(cid:20)(cid:37)T(cid:1)(cid:28)
Item 1.
Business
Item 1A.
Risk Factors
Item 1B.
(cid:47)nresolved Staff Comments
Item 1C.
Cybersecurity
Item 2.
Item 3.
Item 4.
(cid:35)(cid:20)(cid:37)T(cid:1)(cid:28)(cid:28)
Item (cid:20).
Item (cid:21).
Item 7.
Properties
Legal Proceedings
Mine Safety Disclosures
Market for Registrant(cid:88)s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
(cid:53)Reserved(cid:54)
Management(cid:88)s Discussion and Analysis of Financial Condition and Results of Operations
Item 7A.
(cid:43)uantitative and (cid:43)ualitative Disclosures About Market Risk
Item (cid:23).
Item 9.
Financial Statements and Supplementary Data
Changes In and Disagreements (cid:49)ith Accountants on Accounting and Financial Disclosure
Item 9A.
Controls and Procedures
Item 9B.
Other Information
Item 9C.
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
(cid:35)(cid:20)(cid:37)T(cid:1)(cid:28)(cid:28)(cid:28)
Item 10.
Directors, Executive Officers and Corporate Governance
Item 11.
Executive Compensation
Item 12.
Item 13.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Certain Relationships and Related Transactions and Director Independence
Item 14.
Principal Accountant Fees and Services
(cid:35)(cid:20)(cid:37)T(cid:1)(cid:28)(cid:41)
Item 1(cid:20).
Item 1(cid:21).
Signatures
Exhibits and Financial Statement Schedules
Form 10-K Summary
(cid:35)a(cid:53)e
3
9
1(cid:21)
1(cid:21)
1(cid:23)
1(cid:23)
1(cid:23)
1(cid:23)
19
20
32
33
(cid:21)9
(cid:21)9
71
71
71
71
71
71
71
72
7(cid:20)
7(cid:21)
2 Textron 2023 Annual Report
2
(cid:35)(cid:20)(cid:37)T(cid:1)(cid:28)
(cid:28)tem(cid:1)(cid:10)(cid:8)(cid:1)(cid:21)(cid:67)(cid:65)i(cid:60)e(cid:65)(cid:65)
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to
provide customers with innovative products and services around the world. References to (cid:86)Textron Inc.,(cid:87) the (cid:86)Company,(cid:87) (cid:86)we,(cid:87)
(cid:86)our(cid:87) and (cid:86)us(cid:87) in this Annual Report on Form 10-K, unless otherwise indicated, refer to Textron Inc. and its consolidated
subsidiaries.
(cid:49)e conduct our business through six operating segments: Textron Aviation, Bell, Textron Systems, Industrial and Textron
eAviation, which represent our manufacturing businesses, and Finance, which represents our captive finance business. Our
segments include numerous separately incorporated subsidiaries. Total revenues for 2023 were (cid:3)13.7 billion and are presented
below by segment and customer type.
(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)T(cid:61)tal(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)(cid:1)(cid:48)(cid:71)(cid:1)(cid:38)e(cid:53)me(cid:60)t
(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)T(cid:61)tal(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)(cid:1)(cid:48)(cid:71)(cid:1)(cid:22)(cid:67)(cid:65)t(cid:61)me(cid:64)(cid:1)T(cid:71)(cid:62)e
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:20)(cid:68)iati(cid:61)(cid:60)
(cid:1)(cid:12)(cid:18)(cid:8)(cid:12)(cid:2)
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)e(cid:20)(cid:68)iati(cid:61)(cid:60)
(cid:1)(cid:9)(cid:8)(cid:11)(cid:2)
(cid:25)i(cid:60)a(cid:60)(cid:49)e
(cid:1)(cid:9)(cid:8)(cid:13)(cid:2)
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:38)(cid:71)(cid:65)tem(cid:65)
(cid:1)(cid:18)(cid:8)(cid:9)(cid:2)
(cid:21)ell
(cid:1)(cid:11)(cid:12)(cid:8)(cid:9)(cid:2)
(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)ial
(cid:1)(cid:11)(cid:17)(cid:8)(cid:10)(cid:2)
(cid:22)(cid:61)mme(cid:64)(cid:49)ial
(cid:1)(cid:1)(cid:16)(cid:18)(cid:2)
(cid:40)(cid:8)(cid:38)(cid:8)(cid:1)(cid:26)(cid:61)(cid:68)e(cid:64)(cid:60)me(cid:60)t
(cid:1)(cid:1)(cid:11)(cid:10)(cid:2)
The following description of our business and operating segments should be read in con(cid:65)unction with Item 7. Management(cid:88)s
Discussion and Analysis of Financial Condition and Results of Operations.
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:20)(cid:68)iati(cid:61)(cid:60)(cid:1)(cid:38)e(cid:53)me(cid:60)t
Textron Aviation is a leader in general aviation. Textron Aviation manufactures, sells and services Cessna and Beechcraft aircraft,
and services the (cid:34)awker brand of business (cid:65)ets. The segment has two principal product lines: aircraft and aftermarket parts and
services. Aircraft includes sales of business (cid:65)ets, turboprop aircraft, military trainer and defense aircraft and piston engine aircraft.
Aftermarket parts and services includes commercial parts sales and maintenance, inspection and repair services.
Textron Aviation(cid:6)s business (cid:65)ets include the Cessna Citation M2 Gen2, Citation CJ3 Gen2, Citation CJ4 Gen2, Citation XLS
Gen2, Citation Latitude and the Citation Longitude. Textron Aviation(cid:88)s turboprop aircraft include the Beechcraft King Air 2(cid:21)0,
King Air 3(cid:21)0ER and King Air 3(cid:21)0, and the Cessna Caravan, Grand Caravan EX and SkyCourier. In addition, Textron Aviation(cid:88)s
military trainer and defense aircraft include the Beechcraft T-(cid:21) trainer, which has been used to train pilots from more than 40
countries, and the AT-(cid:21) light attack military aircraft, which has achieved military type certification from the (cid:47).S. Air Force.
Textron Aviation also offers piston engine aircraft including the Beechcraft Baron G(cid:20)(cid:23) and Bonan(cid:81)a G3(cid:21), and the Cessna
Skyhawk, Skylane, Turbo Skylane, and Turbo Stationair (cid:34)D.
Textron Aviation markets its products worldwide through its own sales force, as well as through a network of authori(cid:81)ed
independent sales representatives. (cid:49)ith a product lineup ranging from introductory training aircraft through super mid-si(cid:81)e
business (cid:65)ets, Textron Aviation(cid:88)s diverse customer base includes fractional aircraft businesses, charter and fleet operators,
corporate aviation, individual buyers, training schools, airlines, and special mission, military and government operators.
In support of its family of aircraft, Textron Aviation operates a global network of more than 20 service centers, two of which are
co-located with Bell. In addition, more than 300 authori(cid:81)ed independent service centers are located throughout the world. Textron
Aviation-owned service centers provide customers with 24-hour service and maintenance. Textron Aviation also provides its
customers with around-the-clock parts support and offers a mobile support program with over (cid:23)0 mobile service units.
Textron Aviation is developing the Citation Ascend, a high-performance midsi(cid:81)e business (cid:65)et, which is expected to enter into
service in 202(cid:20). The Beechcraft Denali, a high-performance single engine turboprop aircraft also under development, achieved its
first flight in November 2021 and is in the certification process with the Federal Aviation Administration (FAA). The Denali will
be powered by an engine expected to be up to 20(cid:4) more efficient than similarly si(cid:81)ed engines.
3
Textron 2023 Annual Report 3
(cid:21)ell(cid:1)(cid:38)e(cid:53)me(cid:60)t
Bell is one of the leading suppliers of military and commercial helicopters, tiltrotor aircraft, and related spare parts and services in
the world. Tiltrotor aircraft are designed to provide the benefits of both helicopters and fixed-wing aircraft.
Bell supplies advanced military helicopters and provides parts and support services to the (cid:47).S. Government and to military
customers outside the (cid:47)nited States. Bell(cid:88)s ma(cid:65)or (cid:47).S. Government programs are for the production and support of V-22 tiltrotor
aircraft, primarily for the (cid:47).S. Department of Defense(cid:26) the development of the V-2(cid:23)0 Valor, a next generation tiltrotor aircraft for
the (cid:47).S. Army(cid:88)s Future Long Range Assault Aircraft (FLRAA) program(cid:26) and production and support of (cid:34)-1 helicopters for the
(cid:47).S. Marine Corps. (cid:47)nder the (cid:47).S. Government-sponsored foreign military sales program, Bell offers the V-22 tiltrotor aircraft
and (cid:34)-1 helicopter products for sale to other countries.
The FLRAA development contract was awarded to Bell in December 2022 as part of the (cid:47).S. Army(cid:88)s Future Vertical Lift (FVL)
initiative. Bell is developing a tiltrotor aircraft, based on the V-2(cid:23)0 Valor, to meet (cid:47).S. Army weapon system requirements. The
V-2(cid:23)0 Valor first flew in December 2017 and has conducted over 200 hours of flight testing.
Bell is also developing a new rotorcraft, the Bell 3(cid:21)0 Invictus, for the (cid:47).S. Army(cid:6)s Future Attack Reconnaissance Aircraft
(FARA) Competitive Prototype Program, which is part of the (cid:47).S. government(cid:6)s FVL initiative. In March 2020, the (cid:47).S. Army
selected the 3(cid:21)0 Invictus to move to the second phase of the Competitive Prototype Program. Bell continues to progress on its
development of the 3(cid:21)0 Invictus Prototype under this phase of the cost-share program. On February (cid:23), 2024, as part of plans to
rebalance its aviation moderni(cid:81)ation investments, the (cid:47).S. Army announced plans to discontinue development of the FARA at the
conclusion of F(cid:51)24 prototyping activities.
Through its commercial business, Bell is a leading supplier of commercially certified helicopters and support to corporate,
private, law enforcement, utility, public safety and emergency medical helicopter operators, and (cid:47).S. and foreign governments.
Bell produces a variety of commercial aircraft types, including light single- and twin-engine helicopters and medium twin-engine
helicopters, along with other related products. The commercial helicopters currently offered by Bell include the 429, 407GXi,
412EPX and (cid:20)0(cid:20) Jet Ranger X. Bell(cid:88)s first super medium commercial helicopter, the (cid:20)2(cid:20) Relentless, is currently in the
certification process with the FAA.
For both its military programs and its commercial products, Bell provides post-sale support and service for an installed base of
approximately 13,000 helicopters. Bell operates a global network of eight Company-operated service centers, two of which are
co-located with Textron Aviation, and four global parts distribution centers. In addition, approximately (cid:23)(cid:20) independent service
centers are located in about 3(cid:20) countries. Collectively, these service sites offer a complete range of logistics support, including
parts, support equipment, technical data, training devices, pilot and maintenance training, component repair and overhaul, engine
repair and overhaul, aircraft modifications, aircraft customi(cid:81)ing, accessory manufacturing, contractor maintenance, field service
and product support engineering.
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:38)(cid:71)(cid:65)tem(cid:65)(cid:1)(cid:38)e(cid:53)me(cid:60)t
The businesses in our Textron Systems segment develop, manufacture and integrate a variety of products and services for (cid:47).S.
and international military, government and commercial customers to support defense, homeland security, aerospace, infrastructure
protection and other customer missions. Product and service offerings of this segment include electronic systems and solutions,
advanced marine craft, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components,
unmanned aircraft systems and both manned and unmanned armored and specialty vehicles.
Notable products developed and produced by the Textron Systems segment include the Ship-to-Shore Connector, the (cid:47).S. Navy(cid:6)s
next generation of Landing Craft Air Cushion vehicles(cid:26) a family of test and simulation products(cid:26) Shadow, the (cid:47).S. Army(cid:6)s
premier tactical unmanned aircraft system(cid:26) the Aerosonde Small (cid:47)nmanned Aircraft System, a multi-mission capable unmanned
aircraft system for commercial and military operations(cid:26) and piston aircraft engines under the Lycoming brand. Notable service
offerings of the segment include fee-for-service programs, using unmanned aircraft systems, and live military air-to-air and air-to-
ship training and support services for (cid:47).S. Navy, Marine and Air Force personnel provided by Airborne Tactical Advantage
Company.
(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)ial(cid:1)(cid:38)e(cid:53)me(cid:60)t
Our Industrial segment designs and manufactures a variety of products within the Kautex and Speciali(cid:81)ed Vehicles product lines.
Kautex is a leader in designing and manufacturing plastic fuel systems for automobiles and light trucks, including blow-molded
solutions for conventional plastic fuel tanks and pressuri(cid:81)ed plastic fuel tanks for hybrid vehicle applications. Kautex also
develops and manufactures clear-vision systems for automotive safety and advanced driver assistance systems (ADAS). Our
cleaning systems are comprised of no(cid:81)(cid:81)les, reservoirs, inlets and pumps to support onboard cleaning for windscreens, headlamps
and ADAS cameras and sensors. In addition, Kautex produces plastic tanks for selective catalytic reduction systems used to
4 Textron 2023 Annual Report
4
reduce emissions from diesel engines, and other fuel system components. Kautex has also developed and begun to offer
lightweight, composite Pentatonic battery systems, which include enclosures, underbody protection and thermal management
systems, for use in electric vehicles, from hybrid to full battery-powered.
Kautex(cid:88)s business model is focused on developing and maintaining long-term customer relationships with leading global original
equipment manufacturers (OEMs). Kautex, which is headquartered in Bonn, Germany, operates over 30 plants in 13 countries in
close proximity to its customers, along with 9 engineering/research and development locations around the world.
Our Speciali(cid:81)ed Vehicles product line includes products sold by the Textron Speciali(cid:81)ed Vehicles businesses under our E-Z-GO,
Arctic Cat, T(cid:47)G Technologies, Douglas Equipment, Premier, Safeaero, Ransomes, Jacobsen and Cushman brands. These
businesses design, manufacture and sell golf cars(cid:26) off-road utility vehicles(cid:26) powersports products(cid:26) light transportation vehicles(cid:26)
aviation ground support equipment(cid:26) professional turf-maintenance equipment(cid:26) and speciali(cid:81)ed turf-care vehicles. A significant
portion of the products sold by these businesses are powered with lithium batteries, greatly reducing the products(cid:88) impact on the
environment.
The diversified customer base for the Speciali(cid:81)ed Vehicles product line includes golf courses and resorts, government agencies
and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users such as factories, warehouses, airlines,
planned communities, hunting preserves, educational and corporate campuses, sporting venues and landscaping professionals.
Sales are made through a network of independent distributors and dealers worldwide and the Bass Pro Shops and Cabela(cid:6)s retail
outlets, which sell our products under the Tracker Off Road brand, as well as factory direct resources. In addition, we also
manufacture products for OEMs for resale to customers under the OEM(cid:88)s branding.
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)e(cid:20)(cid:68)iati(cid:61)(cid:60)(cid:1)(cid:38)e(cid:53)me(cid:60)t
Our Textron eAviation segment includes Pipistrel, a manufacturer of light aircraft, along with other research and development
initiatives related to sustainable aviation solutions. Pipistrel offers a family of light aircraft and gliders with both electric and
combustion engines. Pipistrel(cid:88)s Velis Electro is the world(cid:88)s first, and currently only, electric aircraft to receive full type
certification from the European (cid:47)nion Aviation Safety Agency and from the (cid:47)K Civil Aviation Authority.
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:38)e(cid:53)me(cid:60)t
Our Finance segment, or the Finance group, is a commercial finance business that consists of Textron Financial Corporation
(TFC) and its consolidated subsidiaries. The Finance segment provides financing primarily to purchasers of new and pre-owned
Textron Aviation aircraft and Bell helicopters. A substantial number of the originations in our finance receivable portfolio are
cross-border transactions for aircraft sold outside of the (cid:47).S. In 2023 and 2022, our Finance group made payments of (cid:3)1(cid:21)0
million and (cid:3)92 million, respectively, to finance the Manufacturing group(cid:6)s sale of Textron-manufactured products to third
parties.
(cid:21)a(cid:49)(cid:57)l(cid:61)(cid:53)
Backlog represents amounts allocated to contracts that we expect to recogni(cid:81)e as revenue in future periods when we perform
under the contracts. Backlog excludes unexercised contract options and potential orders under ordering-type contracts, such as
Indefinite Delivery, Indefinite (cid:43)uantity contracts.
Our backlog at the end of 2023 and 2022 is summari(cid:81)ed below:
(In millions)
Textron Aviation
Bell
Textron Systems
Total backlog
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
7,1(cid:21)9 (cid:3)
4,7(cid:23)0
1,9(cid:20)0
13,(cid:23)99 (cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:21),3(cid:23)7
4,7(cid:23)1
2,09(cid:23)
13,2(cid:21)(cid:21)
(cid:3)
(cid:40)(cid:8)(cid:38)(cid:8)(cid:1)(cid:26)(cid:61)(cid:68)e(cid:64)(cid:60)me(cid:60)t(cid:1)(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:26)(cid:61)(cid:68)e(cid:64)(cid:60)me(cid:60)tal(cid:1)(cid:37)e(cid:53)(cid:67)lati(cid:61)(cid:60)
Our operations, products and services are sub(cid:65)ect to various government regulations, including regulations related to (cid:47).S.
government business, international regulation of aviation products and services, and environmental regulations.
Contracts with the (cid:47).S. Government, including contracts under the (cid:47).S. Government-sponsored foreign military sales program,
generated approximately 21(cid:4) of our consolidated revenues in 2023, primarily in our Bell and Textron Systems segments. (cid:49)e
must comply with and are affected by laws and regulations relating to the formation, administration and performance of (cid:47).S.
Government contracts. These laws and regulations, among other things, require certification and disclosure of all cost and pricing
data in connection with contract negotiation(cid:26) define allowable and unallowable costs and otherwise govern our right to
reimbursement under certain cost-based (cid:47).S. Government contracts(cid:26) and safeguard and restrict the use and dissemination of
Textron 2023 Annual Report 5
(cid:20)
classified and covered defense information and the export of certain products and technical data. New laws, regulations or
procurement requirements, or changes to current ones, can significantly increase our costs, reducing our profitability.
Our contracts with the (cid:47).S. Government generally may be terminated by the (cid:47).S. Government for convenience or if we default in
whole or in part by failing to perform under the terms of the applicable contract. If the (cid:47).S. Government terminates a contract for
convenience, we normally will be entitled to payment for the cost of contract work performed before the effective date of
termination, including, if applicable, reasonable profit on such work, as well as reasonable termination costs. If, however, the (cid:47).S.
Government terminates a contract for default, generally: (a) we will be paid the contract price for completed supplies delivered
and accepted and services rendered, an agreed-upon amount for manufacturing materials delivered and accepted and for the
protection and preservation of property, and an amount for partially completed products accepted by the (cid:47).S. Government(cid:26) (b) the
(cid:47).S. Government may not be liable for our costs with respect to unaccepted items and may be entitled to repayment of advance
payments and progress payments related to the terminated portions of the contract(cid:26) (c) the (cid:47).S. Government may not be liable for
assets we own and utili(cid:81)e to provide services under the (cid:86)fee-for-service(cid:87) contracts(cid:26) and (d) we may be liable for excess costs
incurred by the (cid:47).S. Government in procuring undelivered items from another source. See Aerospace and Defense Industry
section in Item 1A. Risk Factors for additional information related to regulation of (cid:47).S. Government business.
Our commercial aircraft manufacturing businesses are regulated by the FAA in the (cid:47).S. and by similar aviation regulatory
governing authorities internationally, including, the European Aviation Safety Agency. Maintenance facilities and aftermarket
services must also comply with FAA and international regulations. These regulations address production and quality systems,
airworthiness and installation approvals, repair procedures and continuing operational safety. For an aircraft to be manufactured
and sold, the model must receive a type certificate from the appropriate aviation authority, and each aircraft must receive a
certificate of airworthiness. Aircraft outfitting and completions also require approval by the appropriate aviation authority. See
Strategic Risks section in Item 1A. Risk Factors for additional information with respect to risks related to obtaining certification
of new aircraft products.
Our operations are sub(cid:65)ect to numerous laws and regulations designed to protect the environment. For additional information
regarding environmental matters, see Note 1(cid:23) to the Consolidated Financial Statements in Item (cid:23). Financial Statements and
Supplementary Data, and Business and Operational Risks and Risks Related to Regulatory, Legal and Other Matters sections in
Item 1A. Risk Factors.
Based on current information and the applicable laws and regulations currently in effect, compliance with government
regulations, including environmental regulations, has not had, and we do not expect it to have, a material effect on our capital
expenditures, earnings or competitive position. (cid:34)owever, laws and regulations may be changed or adopted that impose additional
compliance requirements which could necessitate capital expenditures or otherwise increase our costs of doing business, reducing
our profitability and negatively impacting our operating results.
(cid:27)(cid:67)ma(cid:60)(cid:1)(cid:22)a(cid:62)ital(cid:1)(cid:37)e(cid:65)(cid:61)(cid:67)(cid:64)(cid:49)e(cid:65)
At December 30, 2023, we employed approximately 3(cid:20),000 employees worldwide, with approximately (cid:23)0(cid:4) located in the (cid:47).S.
and the remainder located outside of the (cid:47).S. Approximately 7,400, or 27(cid:4), of our (cid:47).S. employees, most of whom work for our
Bell and Textron Aviation segments, are represented by unions under collective bargaining agreements, and certain of our non-
(cid:47).S. employees are represented by organi(cid:81)ed works councils. From time to time our collective bargaining agreements expire.
(cid:34)istorically, we have been successful in negotiating renewals to expiring agreements without any material disruption of operating
activities, and management considers employee relations to be good.
Our success is highly dependent upon our ability to hire and retain a workforce with the skills necessary for our businesses to
develop and manufacture the products desired by our customers. (cid:49)e need highly skilled personnel in multiple areas including,
among others, engineering, manufacturing, information technology, cybersecurity, flight operations, business development and
strategy and management. In order to attract and retain highly skilled employees, we offer comprehensive compensation and
benefit programs, career opportunities and an engaging, inclusive environment where all employees are treated with dignity and
respect.
(cid:27)(cid:44)(cid:40)l(cid:59)(cid:47) (cid:40)n(cid:43) (cid:36)(cid:40)(cid:45)(cid:44)(cid:59)(cid:64)
The health and safety of our employees, contractors and communities is a priority, and we strive to provide our employees with
healthy working conditions and safe facilities. To maintain and enhance the safety of our employees, we promote a workplace
safety culture of continuous improvement, shared responsibility, and individual accountability (cid:49)e use an annual goal setting
process to drive in(cid:65)ury rate improvements, and the in(cid:65)ury rate reduction goal is a performance metric that is tracked and reported
to senior leadership and the Audit Committee of the Board of Directors.
6 Textron 2023 Annual Report
(cid:21)
(cid:37)(cid:40)l(cid:44)n(cid:59) (cid:40)n(cid:43) (cid:22)(cid:40)(cid:57)(cid:44)(cid:44)(cid:57) (cid:23)(cid:44)(cid:61)(cid:44)lo(cid:55)m(cid:44)n(cid:59)
(cid:37)(cid:40)l(cid:44)n(cid:59) (cid:40)n(cid:43) (cid:22)(cid:40)(cid:57)(cid:44)(cid:44)(cid:57) (cid:23)(cid:44)(cid:61)(cid:44)lo(cid:55)m(cid:44)n(cid:59)
(cid:37)(cid:40)l(cid:44)n(cid:59) (cid:40)n(cid:43) (cid:22)(cid:40)(cid:57)(cid:44)(cid:44)(cid:57) (cid:23)(cid:44)(cid:61)(cid:44)lo(cid:55)m(cid:44)n(cid:59)
(cid:37)(cid:40)l(cid:44)n(cid:59) (cid:40)n(cid:43) (cid:22)(cid:40)(cid:57)(cid:44)(cid:44)(cid:57) (cid:23)(cid:44)(cid:61)(cid:44)lo(cid:55)m(cid:44)n(cid:59)
(cid:37)(cid:40)l(cid:44)n(cid:59) (cid:40)n(cid:43) (cid:22)(cid:40)(cid:57)(cid:44)(cid:44)(cid:57) (cid:23)(cid:44)(cid:61)(cid:44)lo(cid:55)m(cid:44)n(cid:59)
(cid:37)(cid:40)l(cid:44)n(cid:59) (cid:40)n(cid:43) (cid:22)(cid:40)(cid:57)(cid:44)(cid:44)(cid:57) (cid:23)(cid:44)(cid:61)(cid:44)lo(cid:55)m(cid:44)n(cid:59)
Our talent development programs are designed to prepare our employees at all levels to take on new career and growth
(cid:37)(cid:40)l(cid:44)n(cid:59) (cid:40)n(cid:43) (cid:22)(cid:40)(cid:57)(cid:44)(cid:44)(cid:57) (cid:23)(cid:44)(cid:61)(cid:44)lo(cid:55)m(cid:44)n(cid:59)
(cid:37)(cid:40)l(cid:44)n(cid:59) (cid:40)n(cid:43) (cid:22)(cid:40)(cid:57)(cid:44)(cid:44)(cid:57) (cid:23)(cid:44)(cid:61)(cid:44)lo(cid:55)m(cid:44)n(cid:59)
Our talent development programs are designed to prepare our employees at all levels to take on new career and growth
(cid:37)(cid:40)l(cid:44)n(cid:59) (cid:40)n(cid:43) (cid:22)(cid:40)(cid:57)(cid:44)(cid:44)(cid:57) (cid:23)(cid:44)(cid:61)(cid:44)lo(cid:55)m(cid:44)n(cid:59)
(cid:37)(cid:40)l(cid:44)n(cid:59) (cid:40)n(cid:43) (cid:22)(cid:40)(cid:57)(cid:44)(cid:44)(cid:57) (cid:23)(cid:44)(cid:61)(cid:44)lo(cid:55)m(cid:44)n(cid:59)
Our talent development programs are designed to prepare our employees at all levels to take on new career and growth
Our talent development programs are designed to prepare our employees at all levels to take on new career and growth
Our talent development programs are designed to prepare our employees at all levels to take on new career and growth
Our talent development programs are designed to prepare our employees at all levels to take on new career and growth
opportunities at Textron. Leadership, professional and functional training courses are tailored for employees at each stage of their
Our talent development programs are designed to prepare our employees at all levels to take on new career and growth
Our talent development programs are designed to prepare our employees at all levels to take on new career and growth
opportunities at Textron. Leadership, professional and functional training courses are tailored for employees at each stage of their
Our talent development programs are designed to prepare our employees at all levels to take on new career and growth
Our talent development programs are designed to prepare our employees at all levels to take on new career and growth
opportunities at Textron. Leadership, professional and functional training courses are tailored for employees at each stage of their
opportunities at Textron. Leadership, professional and functional training courses are tailored for employees at each stage of their
opportunities at Textron. Leadership, professional and functional training courses are tailored for employees at each stage of their
opportunities at Textron. Leadership, professional and functional training courses are tailored for employees at each stage of their
careers and include a mix of enterprise-wide and business unit-specific programs. Textron (cid:47)niversity, an internal corporate
opportunities at Textron. Leadership, professional and functional training courses are tailored for employees at each stage of their
opportunities at Textron. Leadership, professional and functional training courses are tailored for employees at each stage of their
careers and include a mix of enterprise-wide and business unit-specific programs. Textron (cid:47)niversity, an internal corporate
opportunities at Textron. Leadership, professional and functional training courses are tailored for employees at each stage of their
opportunities at Textron. Leadership, professional and functional training courses are tailored for employees at each stage of their
careers and include a mix of enterprise-wide and business unit-specific programs. Textron (cid:47)niversity, an internal corporate
careers and include a mix of enterprise-wide and business unit-specific programs. Textron (cid:47)niversity, an internal corporate
careers and include a mix of enterprise-wide and business unit-specific programs. Textron (cid:47)niversity, an internal corporate
careers and include a mix of enterprise-wide and business unit-specific programs. Textron (cid:47)niversity, an internal corporate
function, provides (i) facilitated face-to-face professional and leadership development programs, (ii) web-based general and
careers and include a mix of enterprise-wide and business unit-specific programs. Textron (cid:47)niversity, an internal corporate
careers and include a mix of enterprise-wide and business unit-specific programs. Textron (cid:47)niversity, an internal corporate
careers and include a mix of enterprise-wide and business unit-specific programs. Textron (cid:47)niversity, an internal corporate
function, provides (i) facilitated face-to-face professional and leadership development programs, (ii) web-based general and
careers and include a mix of enterprise-wide and business unit-specific programs. Textron (cid:47)niversity, an internal corporate
function, provides (i) facilitated face-to-face professional and leadership development programs, (ii) web-based general and
function, provides (i) facilitated face-to-face professional and leadership development programs, (ii) web-based general and
function, provides (i) facilitated face-to-face professional and leadership development programs, (ii) web-based general and
function, provides (i) facilitated face-to-face professional and leadership development programs, (ii) web-based general and
speciali(cid:81)ed functional and technical courses and (iii) an online portal to access advanced skills technical training, manage
function, provides (i) facilitated face-to-face professional and leadership development programs, (ii) web-based general and
function, provides (i) facilitated face-to-face professional and leadership development programs, (ii) web-based general and
function, provides (i) facilitated face-to-face professional and leadership development programs, (ii) web-based general and
speciali(cid:81)ed functional and technical courses and (iii) an online portal to access advanced skills technical training, manage
function, provides (i) facilitated face-to-face professional and leadership development programs, (ii) web-based general and
speciali(cid:81)ed functional and technical courses and (iii) an online portal to access advanced skills technical training, manage
speciali(cid:81)ed functional and technical courses and (iii) an online portal to access advanced skills technical training, manage
speciali(cid:81)ed functional and technical courses and (iii) an online portal to access advanced skills technical training, manage
speciali(cid:81)ed functional and technical courses and (iii) an online portal to access advanced skills technical training, manage
recertification of existing qualifications and other career planning tools and resources.
speciali(cid:81)ed functional and technical courses and (iii) an online portal to access advanced skills technical training, manage
speciali(cid:81)ed functional and technical courses and (iii) an online portal to access advanced skills technical training, manage
recertification of existing qualifications and other career planning tools and resources.
speciali(cid:81)ed functional and technical courses and (iii) an online portal to access advanced skills technical training, manage
speciali(cid:81)ed functional and technical courses and (iii) an online portal to access advanced skills technical training, manage
recertification of existing qualifications and other career planning tools and resources.
recertification of existing qualifications and other career planning tools and resources.
recertification of existing qualifications and other career planning tools and resources.
recertification of existing qualifications and other career planning tools and resources.
recertification of existing qualifications and other career planning tools and resources.
recertification of existing qualifications and other career planning tools and resources.
recertification of existing qualifications and other career planning tools and resources.
recertification of existing qualifications and other career planning tools and resources.
The current and future talent needs of each of our businesses are assessed annually through a formal talent review process which
The current and future talent needs of each of our businesses are assessed annually through a formal talent review process which
The current and future talent needs of each of our businesses are assessed annually through a formal talent review process which
The current and future talent needs of each of our businesses are assessed annually through a formal talent review process which
The current and future talent needs of each of our businesses are assessed annually through a formal talent review process which
The current and future talent needs of each of our businesses are assessed annually through a formal talent review process which
enables us to develop leadership succession plans and provide our employees with potential new career opportunities. In addition,
The current and future talent needs of each of our businesses are assessed annually through a formal talent review process which
The current and future talent needs of each of our businesses are assessed annually through a formal talent review process which
The current and future talent needs of each of our businesses are assessed annually through a formal talent review process which
enables us to develop leadership succession plans and provide our employees with potential new career opportunities. In addition,
The current and future talent needs of each of our businesses are assessed annually through a formal talent review process which
enables us to develop leadership succession plans and provide our employees with potential new career opportunities. In addition,
enables us to develop leadership succession plans and provide our employees with potential new career opportunities. In addition,
enables us to develop leadership succession plans and provide our employees with potential new career opportunities. In addition,
enables us to develop leadership succession plans and provide our employees with potential new career opportunities. In addition,
leaders from functional areas within each business belong to enterprise-wide councils which conduct annual talent reviews. These
enables us to develop leadership succession plans and provide our employees with potential new career opportunities. In addition,
enables us to develop leadership succession plans and provide our employees with potential new career opportunities. In addition,
enables us to develop leadership succession plans and provide our employees with potential new career opportunities. In addition,
leaders from functional areas within each business belong to enterprise-wide councils which conduct annual talent reviews. These
enables us to develop leadership succession plans and provide our employees with potential new career opportunities. In addition,
leaders from functional areas within each business belong to enterprise-wide councils which conduct annual talent reviews. These
leaders from functional areas within each business belong to enterprise-wide councils which conduct annual talent reviews. These
leaders from functional areas within each business belong to enterprise-wide councils which conduct annual talent reviews. These
leaders from functional areas within each business belong to enterprise-wide councils which conduct annual talent reviews. These
processes enable us to fill talent needs by matching employees who are ready to assume significant leadership roles with
leaders from functional areas within each business belong to enterprise-wide councils which conduct annual talent reviews. These
leaders from functional areas within each business belong to enterprise-wide councils which conduct annual talent reviews. These
processes enable us to fill talent needs by matching employees who are ready to assume significant leadership roles with
leaders from functional areas within each business belong to enterprise-wide councils which conduct annual talent reviews. These
leaders from functional areas within each business belong to enterprise-wide councils which conduct annual talent reviews. These
processes enable us to fill talent needs by matching employees who are ready to assume significant leadership roles with
processes enable us to fill talent needs by matching employees who are ready to assume significant leadership roles with
processes enable us to fill talent needs by matching employees who are ready to assume significant leadership roles with
processes enable us to fill talent needs by matching employees who are ready to assume significant leadership roles with
opportunities that best fit their career path, which may be in other businesses within the enterprise.
processes enable us to fill talent needs by matching employees who are ready to assume significant leadership roles with
processes enable us to fill talent needs by matching employees who are ready to assume significant leadership roles with
processes enable us to fill talent needs by matching employees who are ready to assume significant leadership roles with
opportunities that best fit their career path, which may be in other businesses within the enterprise.
processes enable us to fill talent needs by matching employees who are ready to assume significant leadership roles with
opportunities that best fit their career path, which may be in other businesses within the enterprise.
opportunities that best fit their career path, which may be in other businesses within the enterprise.
opportunities that best fit their career path, which may be in other businesses within the enterprise.
opportunities that best fit their career path, which may be in other businesses within the enterprise.
opportunities that best fit their career path, which may be in other businesses within the enterprise.
opportunities that best fit their career path, which may be in other businesses within the enterprise.
opportunities that best fit their career path, which may be in other businesses within the enterprise.
opportunities that best fit their career path, which may be in other businesses within the enterprise.
Textron is committed to having a diverse workforce and inclusive workplaces throughout our global operations. (cid:49)e believe by
Textron is committed to having a diverse workforce and inclusive workplaces throughout our global operations. (cid:49)e believe by
Textron is committed to having a diverse workforce and inclusive workplaces throughout our global operations. (cid:49)e believe by
Textron is committed to having a diverse workforce and inclusive workplaces throughout our global operations. (cid:49)e believe by
Textron is committed to having a diverse workforce and inclusive workplaces throughout our global operations. (cid:49)e believe by
Textron is committed to having a diverse workforce and inclusive workplaces throughout our global operations. (cid:49)e believe by
employing highly talented employees, who feel valued, respected and are able to contribute fully, we will improve performance,
Textron is committed to having a diverse workforce and inclusive workplaces throughout our global operations. (cid:49)e believe by
Textron is committed to having a diverse workforce and inclusive workplaces throughout our global operations. (cid:49)e believe by
Textron is committed to having a diverse workforce and inclusive workplaces throughout our global operations. (cid:49)e believe by
employing highly talented employees, who feel valued, respected and are able to contribute fully, we will improve performance,
Textron is committed to having a diverse workforce and inclusive workplaces throughout our global operations. (cid:49)e believe by
employing highly talented employees, who feel valued, respected and are able to contribute fully, we will improve performance,
employing highly talented employees, who feel valued, respected and are able to contribute fully, we will improve performance,
employing highly talented employees, who feel valued, respected and are able to contribute fully, we will improve performance,
employing highly talented employees, who feel valued, respected and are able to contribute fully, we will improve performance,
innovation, collaboration and talent retention, all of which contributes to stronger business results and reinforces our reputation as
employing highly talented employees, who feel valued, respected and are able to contribute fully, we will improve performance,
employing highly talented employees, who feel valued, respected and are able to contribute fully, we will improve performance,
innovation, collaboration and talent retention, all of which contributes to stronger business results and reinforces our reputation as
employing highly talented employees, who feel valued, respected and are able to contribute fully, we will improve performance,
employing highly talented employees, who feel valued, respected and are able to contribute fully, we will improve performance,
innovation, collaboration and talent retention, all of which contributes to stronger business results and reinforces our reputation as
innovation, collaboration and talent retention, all of which contributes to stronger business results and reinforces our reputation as
innovation, collaboration and talent retention, all of which contributes to stronger business results and reinforces our reputation as
innovation, collaboration and talent retention, all of which contributes to stronger business results and reinforces our reputation as
leaders in our industries and communities.
innovation, collaboration and talent retention, all of which contributes to stronger business results and reinforces our reputation as
innovation, collaboration and talent retention, all of which contributes to stronger business results and reinforces our reputation as
innovation, collaboration and talent retention, all of which contributes to stronger business results and reinforces our reputation as
leaders in our industries and communities.
innovation, collaboration and talent retention, all of which contributes to stronger business results and reinforces our reputation as
leaders in our industries and communities.
leaders in our industries and communities.
leaders in our industries and communities.
leaders in our industries and communities.
leaders in our industries and communities.
leaders in our industries and communities.
leaders in our industries and communities.
leaders in our industries and communities.
For discussion of certain risks relating to human capital management, see Risks Related to (cid:34)uman Capital section in Item 1A.
For discussion of certain risks relating to human capital management, see Risks Related to (cid:34)uman Capital section in Item 1A.
For discussion of certain risks relating to human capital management, see Risks Related to (cid:34)uman Capital section in Item 1A.
For discussion of certain risks relating to human capital management, see Risks Related to (cid:34)uman Capital section in Item 1A.
For discussion of certain risks relating to human capital management, see Risks Related to (cid:34)uman Capital section in Item 1A.
For discussion of certain risks relating to human capital management, see Risks Related to (cid:34)uman Capital section in Item 1A.
For discussion of certain risks relating to human capital management, see Risks Related to (cid:34)uman Capital section in Item 1A.
For discussion of certain risks relating to human capital management, see Risks Related to (cid:34)uman Capital section in Item 1A.
Risk Factors.
For discussion of certain risks relating to human capital management, see Risks Related to (cid:34)uman Capital section in Item 1A.
For discussion of certain risks relating to human capital management, see Risks Related to (cid:34)uman Capital section in Item 1A.
Risk Factors.
Risk Factors.
Risk Factors.
Risk Factors.
Risk Factors.
Risk Factors.
Risk Factors.
Risk Factors.
Risk Factors.
(cid:35)ate(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)T(cid:64)a(cid:50)ema(cid:64)(cid:57)(cid:65)
(cid:35)ate(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)T(cid:64)a(cid:50)ema(cid:64)(cid:57)(cid:65)
(cid:35)ate(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)T(cid:64)a(cid:50)ema(cid:64)(cid:57)(cid:65)
(cid:35)ate(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)T(cid:64)a(cid:50)ema(cid:64)(cid:57)(cid:65)
(cid:35)ate(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)T(cid:64)a(cid:50)ema(cid:64)(cid:57)(cid:65)
(cid:35)ate(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)T(cid:64)a(cid:50)ema(cid:64)(cid:57)(cid:65)
(cid:35)ate(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)T(cid:64)a(cid:50)ema(cid:64)(cid:57)(cid:65)
(cid:35)ate(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)T(cid:64)a(cid:50)ema(cid:64)(cid:57)(cid:65)
(cid:49)e own, or are licensed under, numerous patents throughout the world relating to products, services and methods of
(cid:35)ate(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)T(cid:64)a(cid:50)ema(cid:64)(cid:57)(cid:65)
(cid:35)ate(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)T(cid:64)a(cid:50)ema(cid:64)(cid:57)(cid:65)
(cid:49)e own, or are licensed under, numerous patents throughout the world relating to products, services and methods of
(cid:49)e own, or are licensed under, numerous patents throughout the world relating to products, services and methods of
(cid:49)e own, or are licensed under, numerous patents throughout the world relating to products, services and methods of
(cid:49)e own, or are licensed under, numerous patents throughout the world relating to products, services and methods of
(cid:49)e own, or are licensed under, numerous patents throughout the world relating to products, services and methods of
(cid:49)e own, or are licensed under, numerous patents throughout the world relating to products, services and methods of
(cid:49)e own, or are licensed under, numerous patents throughout the world relating to products, services and methods of
manufacturing. Patents developed while under contract with the (cid:47).S. Government may be sub(cid:65)ect to use by the (cid:47).S. Government.
(cid:49)e own, or are licensed under, numerous patents throughout the world relating to products, services and methods of
(cid:49)e own, or are licensed under, numerous patents throughout the world relating to products, services and methods of
manufacturing. Patents developed while under contract with the (cid:47).S. Government may be sub(cid:65)ect to use by the (cid:47).S. Government.
manufacturing. Patents developed while under contract with the (cid:47).S. Government may be sub(cid:65)ect to use by the (cid:47).S. Government.
manufacturing. Patents developed while under contract with the (cid:47).S. Government may be sub(cid:65)ect to use by the (cid:47).S. Government.
manufacturing. Patents developed while under contract with the (cid:47).S. Government may be sub(cid:65)ect to use by the (cid:47).S. Government.
manufacturing. Patents developed while under contract with the (cid:47).S. Government may be sub(cid:65)ect to use by the (cid:47).S. Government.
manufacturing. Patents developed while under contract with the (cid:47).S. Government may be sub(cid:65)ect to use by the (cid:47).S. Government.
manufacturing. Patents developed while under contract with the (cid:47).S. Government may be sub(cid:65)ect to use by the (cid:47).S. Government.
(cid:49)e also own or license active trademark registrations and pending trademark applications in the (cid:47).S. and in various foreign
manufacturing. Patents developed while under contract with the (cid:47).S. Government may be sub(cid:65)ect to use by the (cid:47).S. Government.
manufacturing. Patents developed while under contract with the (cid:47).S. Government may be sub(cid:65)ect to use by the (cid:47).S. Government.
(cid:49)e also own or license active trademark registrations and pending trademark applications in the (cid:47).S. and in various foreign
(cid:49)e also own or license active trademark registrations and pending trademark applications in the (cid:47).S. and in various foreign
(cid:49)e also own or license active trademark registrations and pending trademark applications in the (cid:47).S. and in various foreign
(cid:49)e also own or license active trademark registrations and pending trademark applications in the (cid:47).S. and in various foreign
(cid:49)e also own or license active trademark registrations and pending trademark applications in the (cid:47).S. and in various foreign
(cid:49)e also own or license active trademark registrations and pending trademark applications in the (cid:47).S. and in various foreign
(cid:49)e also own or license active trademark registrations and pending trademark applications in the (cid:47).S. and in various foreign
countries or regions, as well as trade names and service marks. (cid:49)hile our intellectual property rights in the aggregate are
(cid:49)e also own or license active trademark registrations and pending trademark applications in the (cid:47).S. and in various foreign
(cid:49)e also own or license active trademark registrations and pending trademark applications in the (cid:47).S. and in various foreign
countries or regions, as well as trade names and service marks. (cid:49)hile our intellectual property rights in the aggregate are
countries or regions, as well as trade names and service marks. (cid:49)hile our intellectual property rights in the aggregate are
countries or regions, as well as trade names and service marks. (cid:49)hile our intellectual property rights in the aggregate are
countries or regions, as well as trade names and service marks. (cid:49)hile our intellectual property rights in the aggregate are
countries or regions, as well as trade names and service marks. (cid:49)hile our intellectual property rights in the aggregate are
countries or regions, as well as trade names and service marks. (cid:49)hile our intellectual property rights in the aggregate are
countries or regions, as well as trade names and service marks. (cid:49)hile our intellectual property rights in the aggregate are
important to the operation of our business, we do not believe that any existing patent, license, trademark or other intellectual
countries or regions, as well as trade names and service marks. (cid:49)hile our intellectual property rights in the aggregate are
countries or regions, as well as trade names and service marks. (cid:49)hile our intellectual property rights in the aggregate are
important to the operation of our business, we do not believe that any existing patent, license, trademark or other intellectual
important to the operation of our business, we do not believe that any existing patent, license, trademark or other intellectual
important to the operation of our business, we do not believe that any existing patent, license, trademark or other intellectual
important to the operation of our business, we do not believe that any existing patent, license, trademark or other intellectual
important to the operation of our business, we do not believe that any existing patent, license, trademark or other intellectual
important to the operation of our business, we do not believe that any existing patent, license, trademark or other intellectual
important to the operation of our business, we do not believe that any existing patent, license, trademark or other intellectual
property right is of such importance that its loss or termination would have a material adverse effect on our business taken as a
important to the operation of our business, we do not believe that any existing patent, license, trademark or other intellectual
important to the operation of our business, we do not believe that any existing patent, license, trademark or other intellectual
property right is of such importance that its loss or termination would have a material adverse effect on our business taken as a
property right is of such importance that its loss or termination would have a material adverse effect on our business taken as a
property right is of such importance that its loss or termination would have a material adverse effect on our business taken as a
property right is of such importance that its loss or termination would have a material adverse effect on our business taken as a
property right is of such importance that its loss or termination would have a material adverse effect on our business taken as a
property right is of such importance that its loss or termination would have a material adverse effect on our business taken as a
property right is of such importance that its loss or termination would have a material adverse effect on our business taken as a
whole.
property right is of such importance that its loss or termination would have a material adverse effect on our business taken as a
property right is of such importance that its loss or termination would have a material adverse effect on our business taken as a
whole.
whole.
whole.
whole.
whole.
whole.
whole.
whole.
whole.
(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)(cid:1)a(cid:48)(cid:61)(cid:67)t(cid:1)(cid:61)(cid:67)(cid:64)(cid:1)(cid:24)(cid:70)e(cid:49)(cid:67)ti(cid:68)e(cid:1)(cid:34)(cid:52)(cid:52)i(cid:49)e(cid:64)(cid:65)
(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)(cid:1)a(cid:48)(cid:61)(cid:67)t(cid:1)(cid:61)(cid:67)(cid:64)(cid:1)(cid:24)(cid:70)e(cid:49)(cid:67)ti(cid:68)e(cid:1)(cid:34)(cid:52)(cid:52)i(cid:49)e(cid:64)(cid:65)
(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)(cid:1)a(cid:48)(cid:61)(cid:67)t(cid:1)(cid:61)(cid:67)(cid:64)(cid:1)(cid:24)(cid:70)e(cid:49)(cid:67)ti(cid:68)e(cid:1)(cid:34)(cid:52)(cid:52)i(cid:49)e(cid:64)(cid:65)
(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)(cid:1)a(cid:48)(cid:61)(cid:67)t(cid:1)(cid:61)(cid:67)(cid:64)(cid:1)(cid:24)(cid:70)e(cid:49)(cid:67)ti(cid:68)e(cid:1)(cid:34)(cid:52)(cid:52)i(cid:49)e(cid:64)(cid:65)
(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)(cid:1)a(cid:48)(cid:61)(cid:67)t(cid:1)(cid:61)(cid:67)(cid:64)(cid:1)(cid:24)(cid:70)e(cid:49)(cid:67)ti(cid:68)e(cid:1)(cid:34)(cid:52)(cid:52)i(cid:49)e(cid:64)(cid:65)
(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)(cid:1)a(cid:48)(cid:61)(cid:67)t(cid:1)(cid:61)(cid:67)(cid:64)(cid:1)(cid:24)(cid:70)e(cid:49)(cid:67)ti(cid:68)e(cid:1)(cid:34)(cid:52)(cid:52)i(cid:49)e(cid:64)(cid:65)
(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)(cid:1)a(cid:48)(cid:61)(cid:67)t(cid:1)(cid:61)(cid:67)(cid:64)(cid:1)(cid:24)(cid:70)e(cid:49)(cid:67)ti(cid:68)e(cid:1)(cid:34)(cid:52)(cid:52)i(cid:49)e(cid:64)(cid:65)
(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)(cid:1)a(cid:48)(cid:61)(cid:67)t(cid:1)(cid:61)(cid:67)(cid:64)(cid:1)(cid:24)(cid:70)e(cid:49)(cid:67)ti(cid:68)e(cid:1)(cid:34)(cid:52)(cid:52)i(cid:49)e(cid:64)(cid:65)
The following table sets forth certain information concerning our executive officers as of February 12, 2024.
(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)(cid:1)a(cid:48)(cid:61)(cid:67)t(cid:1)(cid:61)(cid:67)(cid:64)(cid:1)(cid:24)(cid:70)e(cid:49)(cid:67)ti(cid:68)e(cid:1)(cid:34)(cid:52)(cid:52)i(cid:49)e(cid:64)(cid:65)
(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)(cid:1)a(cid:48)(cid:61)(cid:67)t(cid:1)(cid:61)(cid:67)(cid:64)(cid:1)(cid:24)(cid:70)e(cid:49)(cid:67)ti(cid:68)e(cid:1)(cid:34)(cid:52)(cid:52)i(cid:49)e(cid:64)(cid:65)
The following table sets forth certain information concerning our executive officers as of February 12, 2024.
The following table sets forth certain information concerning our executive officers as of February 12, 2024.
The following table sets forth certain information concerning our executive officers as of February 12, 2024.
The following table sets forth certain information concerning our executive officers as of February 12, 2024.
The following table sets forth certain information concerning our executive officers as of February 12, 2024.
The following table sets forth certain information concerning our executive officers as of February 12, 2024.
The following table sets forth certain information concerning our executive officers as of February 12, 2024.
The following table sets forth certain information concerning our executive officers as of February 12, 2024.
The following table sets forth certain information concerning our executive officers as of February 12, 2024.
Name
Name
Name
Name
Name
Name
Scott C. Donnelly
Name
Name
Scott C. Donnelly
Name
Name
Scott C. Donnelly
Scott C. Donnelly
Scott C. Donnelly
Scott C. Donnelly
Scott C. Donnelly
Scott C. Donnelly
Frank T. Connor
Scott C. Donnelly
Scott C. Donnelly
Frank T. Connor
Frank T. Connor
Frank T. Connor
Frank T. Connor
Frank T. Connor
Frank T. Connor
Frank T. Connor
Julie G. Duffy
Frank T. Connor
Frank T. Connor
Julie G. Duffy
Julie G. Duffy
Julie G. Duffy
Julie G. Duffy
Julie G. Duffy
Julie G. Duffy
Julie G. Duffy
E. Robert Lupone
Julie G. Duffy
Julie G. Duffy
E. Robert Lupone
E. Robert Lupone
E. Robert Lupone
E. Robert Lupone
E. Robert Lupone
E. Robert Lupone
E. Robert Lupone
E. Robert Lupone
E. Robert Lupone
Mr. Donnelly (cid:65)oined Textron in June 200(cid:23) as Executive Vice President and Chief Operating Officer and was promoted to
Mr. Donnelly (cid:65)oined Textron in June 200(cid:23) as Executive Vice President and Chief Operating Officer and was promoted to
Mr. Donnelly (cid:65)oined Textron in June 200(cid:23) as Executive Vice President and Chief Operating Officer and was promoted to
Mr. Donnelly (cid:65)oined Textron in June 200(cid:23) as Executive Vice President and Chief Operating Officer and was promoted to
Mr. Donnelly (cid:65)oined Textron in June 200(cid:23) as Executive Vice President and Chief Operating Officer and was promoted to
Mr. Donnelly (cid:65)oined Textron in June 200(cid:23) as Executive Vice President and Chief Operating Officer and was promoted to
Mr. Donnelly (cid:65)oined Textron in June 200(cid:23) as Executive Vice President and Chief Operating Officer and was promoted to
Mr. Donnelly (cid:65)oined Textron in June 200(cid:23) as Executive Vice President and Chief Operating Officer and was promoted to
President and Chief Operating Officer in January 2009. (cid:34)e was appointed to the Board of Directors in October 2009 and became
Mr. Donnelly (cid:65)oined Textron in June 200(cid:23) as Executive Vice President and Chief Operating Officer and was promoted to
Mr. Donnelly (cid:65)oined Textron in June 200(cid:23) as Executive Vice President and Chief Operating Officer and was promoted to
President and Chief Operating Officer in January 2009. (cid:34)e was appointed to the Board of Directors in October 2009 and became
President and Chief Operating Officer in January 2009. (cid:34)e was appointed to the Board of Directors in October 2009 and became
President and Chief Operating Officer in January 2009. (cid:34)e was appointed to the Board of Directors in October 2009 and became
President and Chief Operating Officer in January 2009. (cid:34)e was appointed to the Board of Directors in October 2009 and became
President and Chief Operating Officer in January 2009. (cid:34)e was appointed to the Board of Directors in October 2009 and became
President and Chief Operating Officer in January 2009. (cid:34)e was appointed to the Board of Directors in October 2009 and became
President and Chief Operating Officer in January 2009. (cid:34)e was appointed to the Board of Directors in October 2009 and became
Chief Executive Officer of Textron in December 2009. In July 2010, Mr. Donnelly was appointed Chairman of the Board of
President and Chief Operating Officer in January 2009. (cid:34)e was appointed to the Board of Directors in October 2009 and became
President and Chief Operating Officer in January 2009. (cid:34)e was appointed to the Board of Directors in October 2009 and became
Chief Executive Officer of Textron in December 2009. In July 2010, Mr. Donnelly was appointed Chairman of the Board of
Chief Executive Officer of Textron in December 2009. In July 2010, Mr. Donnelly was appointed Chairman of the Board of
Chief Executive Officer of Textron in December 2009. In July 2010, Mr. Donnelly was appointed Chairman of the Board of
Chief Executive Officer of Textron in December 2009. In July 2010, Mr. Donnelly was appointed Chairman of the Board of
Chief Executive Officer of Textron in December 2009. In July 2010, Mr. Donnelly was appointed Chairman of the Board of
Chief Executive Officer of Textron in December 2009. In July 2010, Mr. Donnelly was appointed Chairman of the Board of
Chief Executive Officer of Textron in December 2009. In July 2010, Mr. Donnelly was appointed Chairman of the Board of
Directors effective September 1, 2010. Previously, Mr. Donnelly was the President and CEO of General Electric Company(cid:88)s
Chief Executive Officer of Textron in December 2009. In July 2010, Mr. Donnelly was appointed Chairman of the Board of
Chief Executive Officer of Textron in December 2009. In July 2010, Mr. Donnelly was appointed Chairman of the Board of
Directors effective September 1, 2010. Previously, Mr. Donnelly was the President and CEO of General Electric Company(cid:88)s
Directors effective September 1, 2010. Previously, Mr. Donnelly was the President and CEO of General Electric Company(cid:88)s
Directors effective September 1, 2010. Previously, Mr. Donnelly was the President and CEO of General Electric Company(cid:88)s
Directors effective September 1, 2010. Previously, Mr. Donnelly was the President and CEO of General Electric Company(cid:88)s
Directors effective September 1, 2010. Previously, Mr. Donnelly was the President and CEO of General Electric Company(cid:88)s
Directors effective September 1, 2010. Previously, Mr. Donnelly was the President and CEO of General Electric Company(cid:88)s
Directors effective September 1, 2010. Previously, Mr. Donnelly was the President and CEO of General Electric Company(cid:88)s
Aviation business unit, a position he had held since July 200(cid:20). GE(cid:88)s Aviation business unit is a leading maker of commercial and
Directors effective September 1, 2010. Previously, Mr. Donnelly was the President and CEO of General Electric Company(cid:88)s
Directors effective September 1, 2010. Previously, Mr. Donnelly was the President and CEO of General Electric Company(cid:88)s
Aviation business unit, a position he had held since July 200(cid:20). GE(cid:88)s Aviation business unit is a leading maker of commercial and
Aviation business unit, a position he had held since July 200(cid:20). GE(cid:88)s Aviation business unit is a leading maker of commercial and
Aviation business unit, a position he had held since July 200(cid:20). GE(cid:88)s Aviation business unit is a leading maker of commercial and
Aviation business unit, a position he had held since July 200(cid:20). GE(cid:88)s Aviation business unit is a leading maker of commercial and
Aviation business unit, a position he had held since July 200(cid:20). GE(cid:88)s Aviation business unit is a leading maker of commercial and
Aviation business unit, a position he had held since July 200(cid:20). GE(cid:88)s Aviation business unit is a leading maker of commercial and
Aviation business unit, a position he had held since July 200(cid:20). GE(cid:88)s Aviation business unit is a leading maker of commercial and
military (cid:65)et engines and components, as well as integrated digital, electric power and mechanical systems for aircraft. Prior to
Aviation business unit, a position he had held since July 200(cid:20). GE(cid:88)s Aviation business unit is a leading maker of commercial and
Aviation business unit, a position he had held since July 200(cid:20). GE(cid:88)s Aviation business unit is a leading maker of commercial and
military (cid:65)et engines and components, as well as integrated digital, electric power and mechanical systems for aircraft. Prior to
military (cid:65)et engines and components, as well as integrated digital, electric power and mechanical systems for aircraft. Prior to
military (cid:65)et engines and components, as well as integrated digital, electric power and mechanical systems for aircraft. Prior to
military (cid:65)et engines and components, as well as integrated digital, electric power and mechanical systems for aircraft. Prior to
military (cid:65)et engines and components, as well as integrated digital, electric power and mechanical systems for aircraft. Prior to
military (cid:65)et engines and components, as well as integrated digital, electric power and mechanical systems for aircraft. Prior to
military (cid:65)et engines and components, as well as integrated digital, electric power and mechanical systems for aircraft. Prior to
July 200(cid:20), Mr. Donnelly served as Senior Vice President of GE Global Research, one of the world(cid:88)s largest and most diversified
military (cid:65)et engines and components, as well as integrated digital, electric power and mechanical systems for aircraft. Prior to
military (cid:65)et engines and components, as well as integrated digital, electric power and mechanical systems for aircraft. Prior to
July 200(cid:20), Mr. Donnelly served as Senior Vice President of GE Global Research, one of the world(cid:88)s largest and most diversified
July 200(cid:20), Mr. Donnelly served as Senior Vice President of GE Global Research, one of the world(cid:88)s largest and most diversified
July 200(cid:20), Mr. Donnelly served as Senior Vice President of GE Global Research, one of the world(cid:88)s largest and most diversified
July 200(cid:20), Mr. Donnelly served as Senior Vice President of GE Global Research, one of the world(cid:88)s largest and most diversified
July 200(cid:20), Mr. Donnelly served as Senior Vice President of GE Global Research, one of the world(cid:88)s largest and most diversified
July 200(cid:20), Mr. Donnelly served as Senior Vice President of GE Global Research, one of the world(cid:88)s largest and most diversified
July 200(cid:20), Mr. Donnelly served as Senior Vice President of GE Global Research, one of the world(cid:88)s largest and most diversified
industrial research organi(cid:81)ations with facilities in the (cid:47).S., India, China and Germany and held various other management
July 200(cid:20), Mr. Donnelly served as Senior Vice President of GE Global Research, one of the world(cid:88)s largest and most diversified
July 200(cid:20), Mr. Donnelly served as Senior Vice President of GE Global Research, one of the world(cid:88)s largest and most diversified
industrial research organi(cid:81)ations with facilities in the (cid:47).S., India, China and Germany and held various other management
industrial research organi(cid:81)ations with facilities in the (cid:47).S., India, China and Germany and held various other management
industrial research organi(cid:81)ations with facilities in the (cid:47).S., India, China and Germany and held various other management
industrial research organi(cid:81)ations with facilities in the (cid:47).S., India, China and Germany and held various other management
industrial research organi(cid:81)ations with facilities in the (cid:47).S., India, China and Germany and held various other management
industrial research organi(cid:81)ations with facilities in the (cid:47).S., India, China and Germany and held various other management
industrial research organi(cid:81)ations with facilities in the (cid:47).S., India, China and Germany and held various other management
positions since (cid:65)oining General Electric in 19(cid:23)9.
industrial research organi(cid:81)ations with facilities in the (cid:47).S., India, China and Germany and held various other management
industrial research organi(cid:81)ations with facilities in the (cid:47).S., India, China and Germany and held various other management
positions since (cid:65)oining General Electric in 19(cid:23)9.
positions since (cid:65)oining General Electric in 19(cid:23)9.
positions since (cid:65)oining General Electric in 19(cid:23)9.
positions since (cid:65)oining General Electric in 19(cid:23)9.
positions since (cid:65)oining General Electric in 19(cid:23)9.
positions since (cid:65)oining General Electric in 19(cid:23)9.
positions since (cid:65)oining General Electric in 19(cid:23)9.
positions since (cid:65)oining General Electric in 19(cid:23)9.
positions since (cid:65)oining General Electric in 19(cid:23)9.
Mr. Connor (cid:65)oined Textron in August 2009 as Executive Vice President and Chief Financial Officer. Previously, Mr. Connor was
Mr. Connor (cid:65)oined Textron in August 2009 as Executive Vice President and Chief Financial Officer. Previously, Mr. Connor was
Mr. Connor (cid:65)oined Textron in August 2009 as Executive Vice President and Chief Financial Officer. Previously, Mr. Connor was
Mr. Connor (cid:65)oined Textron in August 2009 as Executive Vice President and Chief Financial Officer. Previously, Mr. Connor was
Mr. Connor (cid:65)oined Textron in August 2009 as Executive Vice President and Chief Financial Officer. Previously, Mr. Connor was
Mr. Connor (cid:65)oined Textron in August 2009 as Executive Vice President and Chief Financial Officer. Previously, Mr. Connor was
Mr. Connor (cid:65)oined Textron in August 2009 as Executive Vice President and Chief Financial Officer. Previously, Mr. Connor was
Mr. Connor (cid:65)oined Textron in August 2009 as Executive Vice President and Chief Financial Officer. Previously, Mr. Connor was
head of Telecom Investment Banking at Goldman, Sachs (cid:5) Co. from 2003 to 200(cid:23). Prior to that position, he served as Chief
Mr. Connor (cid:65)oined Textron in August 2009 as Executive Vice President and Chief Financial Officer. Previously, Mr. Connor was
Mr. Connor (cid:65)oined Textron in August 2009 as Executive Vice President and Chief Financial Officer. Previously, Mr. Connor was
head of Telecom Investment Banking at Goldman, Sachs (cid:5) Co. from 2003 to 200(cid:23). Prior to that position, he served as Chief
head of Telecom Investment Banking at Goldman, Sachs (cid:5) Co. from 2003 to 200(cid:23). Prior to that position, he served as Chief
head of Telecom Investment Banking at Goldman, Sachs (cid:5) Co. from 2003 to 200(cid:23). Prior to that position, he served as Chief
head of Telecom Investment Banking at Goldman, Sachs (cid:5) Co. from 2003 to 200(cid:23). Prior to that position, he served as Chief
head of Telecom Investment Banking at Goldman, Sachs (cid:5) Co. from 2003 to 200(cid:23). Prior to that position, he served as Chief
head of Telecom Investment Banking at Goldman, Sachs (cid:5) Co. from 2003 to 200(cid:23). Prior to that position, he served as Chief
head of Telecom Investment Banking at Goldman, Sachs (cid:5) Co. from 2003 to 200(cid:23). Prior to that position, he served as Chief
Operating Officer of Telecom, Technology and Media Investment Banking at Goldman, Sachs (cid:5) Co. from 199(cid:23) to 2003.
head of Telecom Investment Banking at Goldman, Sachs (cid:5) Co. from 2003 to 200(cid:23). Prior to that position, he served as Chief
head of Telecom Investment Banking at Goldman, Sachs (cid:5) Co. from 2003 to 200(cid:23). Prior to that position, he served as Chief
Operating Officer of Telecom, Technology and Media Investment Banking at Goldman, Sachs (cid:5) Co. from 199(cid:23) to 2003.
Operating Officer of Telecom, Technology and Media Investment Banking at Goldman, Sachs (cid:5) Co. from 199(cid:23) to 2003.
Operating Officer of Telecom, Technology and Media Investment Banking at Goldman, Sachs (cid:5) Co. from 199(cid:23) to 2003.
Operating Officer of Telecom, Technology and Media Investment Banking at Goldman, Sachs (cid:5) Co. from 199(cid:23) to 2003.
Operating Officer of Telecom, Technology and Media Investment Banking at Goldman, Sachs (cid:5) Co. from 199(cid:23) to 2003.
Operating Officer of Telecom, Technology and Media Investment Banking at Goldman, Sachs (cid:5) Co. from 199(cid:23) to 2003.
Operating Officer of Telecom, Technology and Media Investment Banking at Goldman, Sachs (cid:5) Co. from 199(cid:23) to 2003.
Mr. Connor (cid:65)oined the Corporate Finance Department of Goldman, Sachs (cid:5) Co. in 19(cid:23)(cid:21) and became a Vice President in 1990 and
Operating Officer of Telecom, Technology and Media Investment Banking at Goldman, Sachs (cid:5) Co. from 199(cid:23) to 2003.
Operating Officer of Telecom, Technology and Media Investment Banking at Goldman, Sachs (cid:5) Co. from 199(cid:23) to 2003.
Mr. Connor (cid:65)oined the Corporate Finance Department of Goldman, Sachs (cid:5) Co. in 19(cid:23)(cid:21) and became a Vice President in 1990 and
Mr. Connor (cid:65)oined the Corporate Finance Department of Goldman, Sachs (cid:5) Co. in 19(cid:23)(cid:21) and became a Vice President in 1990 and
Mr. Connor (cid:65)oined the Corporate Finance Department of Goldman, Sachs (cid:5) Co. in 19(cid:23)(cid:21) and became a Vice President in 1990 and
Mr. Connor (cid:65)oined the Corporate Finance Department of Goldman, Sachs (cid:5) Co. in 19(cid:23)(cid:21) and became a Vice President in 1990 and
Mr. Connor (cid:65)oined the Corporate Finance Department of Goldman, Sachs (cid:5) Co. in 19(cid:23)(cid:21) and became a Vice President in 1990 and
Mr. Connor (cid:65)oined the Corporate Finance Department of Goldman, Sachs (cid:5) Co. in 19(cid:23)(cid:21) and became a Vice President in 1990 and
Mr. Connor (cid:65)oined the Corporate Finance Department of Goldman, Sachs (cid:5) Co. in 19(cid:23)(cid:21) and became a Vice President in 1990 and
a Managing Director in 199(cid:21).
Mr. Connor (cid:65)oined the Corporate Finance Department of Goldman, Sachs (cid:5) Co. in 19(cid:23)(cid:21) and became a Vice President in 1990 and
Mr. Connor (cid:65)oined the Corporate Finance Department of Goldman, Sachs (cid:5) Co. in 19(cid:23)(cid:21) and became a Vice President in 1990 and
a Managing Director in 199(cid:21).
a Managing Director in 199(cid:21).
a Managing Director in 199(cid:21).
a Managing Director in 199(cid:21).
a Managing Director in 199(cid:21).
a Managing Director in 199(cid:21).
a Managing Director in 199(cid:21).
a Managing Director in 199(cid:21).
a Managing Director in 199(cid:21).
Ms. Duffy was named Executive Vice President, (cid:34)uman Resources in July 2017 and Executive Vice President and Chief (cid:34)uman
Ms. Duffy was named Executive Vice President, (cid:34)uman Resources in July 2017 and Executive Vice President and Chief (cid:34)uman
Ms. Duffy was named Executive Vice President, (cid:34)uman Resources in July 2017 and Executive Vice President and Chief (cid:34)uman
Ms. Duffy was named Executive Vice President, (cid:34)uman Resources in July 2017 and Executive Vice President and Chief (cid:34)uman
Ms. Duffy was named Executive Vice President, (cid:34)uman Resources in July 2017 and Executive Vice President and Chief (cid:34)uman
Ms. Duffy was named Executive Vice President, (cid:34)uman Resources in July 2017 and Executive Vice President and Chief (cid:34)uman
Ms. Duffy was named Executive Vice President, (cid:34)uman Resources in July 2017 and Executive Vice President and Chief (cid:34)uman
Ms. Duffy was named Executive Vice President, (cid:34)uman Resources in July 2017 and Executive Vice President and Chief (cid:34)uman
Resources Officer in April 2022. Ms. Duffy (cid:65)oined Textron in 1997 as a member of the corporate legal team and has since held
Ms. Duffy was named Executive Vice President, (cid:34)uman Resources in July 2017 and Executive Vice President and Chief (cid:34)uman
Ms. Duffy was named Executive Vice President, (cid:34)uman Resources in July 2017 and Executive Vice President and Chief (cid:34)uman
Resources Officer in April 2022. Ms. Duffy (cid:65)oined Textron in 1997 as a member of the corporate legal team and has since held
Resources Officer in April 2022. Ms. Duffy (cid:65)oined Textron in 1997 as a member of the corporate legal team and has since held
Resources Officer in April 2022. Ms. Duffy (cid:65)oined Textron in 1997 as a member of the corporate legal team and has since held
Resources Officer in April 2022. Ms. Duffy (cid:65)oined Textron in 1997 as a member of the corporate legal team and has since held
Resources Officer in April 2022. Ms. Duffy (cid:65)oined Textron in 1997 as a member of the corporate legal team and has since held
Resources Officer in April 2022. Ms. Duffy (cid:65)oined Textron in 1997 as a member of the corporate legal team and has since held
Resources Officer in April 2022. Ms. Duffy (cid:65)oined Textron in 1997 as a member of the corporate legal team and has since held
positions of increasing responsibility within the Company(cid:88)s legal function, previously serving as Vice President and Deputy
Resources Officer in April 2022. Ms. Duffy (cid:65)oined Textron in 1997 as a member of the corporate legal team and has since held
Resources Officer in April 2022. Ms. Duffy (cid:65)oined Textron in 1997 as a member of the corporate legal team and has since held
positions of increasing responsibility within the Company(cid:88)s legal function, previously serving as Vice President and Deputy
positions of increasing responsibility within the Company(cid:88)s legal function, previously serving as Vice President and Deputy
positions of increasing responsibility within the Company(cid:88)s legal function, previously serving as Vice President and Deputy
positions of increasing responsibility within the Company(cid:88)s legal function, previously serving as Vice President and Deputy
positions of increasing responsibility within the Company(cid:88)s legal function, previously serving as Vice President and Deputy
positions of increasing responsibility within the Company(cid:88)s legal function, previously serving as Vice President and Deputy
positions of increasing responsibility within the Company(cid:88)s legal function, previously serving as Vice President and Deputy
General Counsel-Litigation, a position she had held since 2011. In that role she was responsible for managing the corporate
positions of increasing responsibility within the Company(cid:88)s legal function, previously serving as Vice President and Deputy
positions of increasing responsibility within the Company(cid:88)s legal function, previously serving as Vice President and Deputy
General Counsel-Litigation, a position she had held since 2011. In that role she was responsible for managing the corporate
General Counsel-Litigation, a position she had held since 2011. In that role she was responsible for managing the corporate
General Counsel-Litigation, a position she had held since 2011. In that role she was responsible for managing the corporate
General Counsel-Litigation, a position she had held since 2011. In that role she was responsible for managing the corporate
General Counsel-Litigation, a position she had held since 2011. In that role she was responsible for managing the corporate
General Counsel-Litigation, a position she had held since 2011. In that role she was responsible for managing the corporate
General Counsel-Litigation, a position she had held since 2011. In that role she was responsible for managing the corporate
General Counsel-Litigation, a position she had held since 2011. In that role she was responsible for managing the corporate
General Counsel-Litigation, a position she had held since 2011. In that role she was responsible for managing the corporate
Textron 2023 Annual Report 7
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Executive Vice President and Chief Financial Officer
Executive Vice President and Chief Financial Officer
Executive Vice President and Chief Financial Officer
Executive Vice President and Chief Financial Officer
Executive Vice President and Chief Financial Officer
Executive Vice President and Chief Financial Officer
Executive Vice President and Chief Financial Officer
Executive Vice President and Chief Financial Officer
Executive Vice President and Chief (cid:34)uman Resources Officer
Executive Vice President and Chief Financial Officer
Executive Vice President and Chief Financial Officer
Executive Vice President and Chief (cid:34)uman Resources Officer
Executive Vice President and Chief (cid:34)uman Resources Officer
Executive Vice President and Chief (cid:34)uman Resources Officer
Executive Vice President and Chief (cid:34)uman Resources Officer
Executive Vice President and Chief (cid:34)uman Resources Officer
Executive Vice President and Chief (cid:34)uman Resources Officer
Executive Vice President and Chief (cid:34)uman Resources Officer
Executive Vice President, General Counsel, Secretary and Chief Compliance Officer
Executive Vice President and Chief (cid:34)uman Resources Officer
Executive Vice President and Chief (cid:34)uman Resources Officer
Executive Vice President, General Counsel, Secretary and Chief Compliance Officer
Executive Vice President, General Counsel, Secretary and Chief Compliance Officer
Executive Vice President, General Counsel, Secretary and Chief Compliance Officer
Executive Vice President, General Counsel, Secretary and Chief Compliance Officer
Executive Vice President, General Counsel, Secretary and Chief Compliance Officer
Executive Vice President, General Counsel, Secretary and Chief Compliance Officer
Executive Vice President, General Counsel, Secretary and Chief Compliance Officer
Executive Vice President, General Counsel, Secretary and Chief Compliance Officer
Executive Vice President, General Counsel, Secretary and Chief Compliance Officer
(cid:20)(cid:53)e (cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)(cid:35)(cid:61)(cid:65)iti(cid:61)(cid:60)(cid:1)(cid:69)it(cid:54)(cid:1)Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)(cid:49)(cid:8)
(cid:20)(cid:53)e (cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)(cid:35)(cid:61)(cid:65)iti(cid:61)(cid:60)(cid:1)(cid:69)it(cid:54)(cid:1)Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)(cid:49)(cid:8)
(cid:20)(cid:53)e (cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)(cid:35)(cid:61)(cid:65)iti(cid:61)(cid:60)(cid:1)(cid:69)it(cid:54)(cid:1)Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)(cid:49)(cid:8)
(cid:20)(cid:53)e (cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)(cid:35)(cid:61)(cid:65)iti(cid:61)(cid:60)(cid:1)(cid:69)it(cid:54)(cid:1)Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)(cid:49)(cid:8)
(cid:20)(cid:53)e (cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)(cid:35)(cid:61)(cid:65)iti(cid:61)(cid:60)(cid:1)(cid:69)it(cid:54)(cid:1)Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)(cid:49)(cid:8)
(cid:20)(cid:53)e (cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)(cid:35)(cid:61)(cid:65)iti(cid:61)(cid:60)(cid:1)(cid:69)it(cid:54)(cid:1)Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)(cid:49)(cid:8)
(cid:21)2 Chairman, President and Chief Executive Officer
(cid:20)(cid:53)e (cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)(cid:35)(cid:61)(cid:65)iti(cid:61)(cid:60)(cid:1)(cid:69)it(cid:54)(cid:1)Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)(cid:49)(cid:8)
(cid:20)(cid:53)e (cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)(cid:35)(cid:61)(cid:65)iti(cid:61)(cid:60)(cid:1)(cid:69)it(cid:54)(cid:1)Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)(cid:49)(cid:8)
(cid:21)2 Chairman, President and Chief Executive Officer
(cid:20)(cid:53)e (cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)(cid:35)(cid:61)(cid:65)iti(cid:61)(cid:60)(cid:1)(cid:69)it(cid:54)(cid:1)Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)(cid:49)(cid:8)
(cid:20)(cid:53)e (cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)(cid:35)(cid:61)(cid:65)iti(cid:61)(cid:60)(cid:1)(cid:69)it(cid:54)(cid:1)Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)(cid:49)(cid:8)
(cid:21)2 Chairman, President and Chief Executive Officer
(cid:21)2 Chairman, President and Chief Executive Officer
(cid:21)2 Chairman, President and Chief Executive Officer
(cid:21)2 Chairman, President and Chief Executive Officer
(cid:21)2 Chairman, President and Chief Executive Officer
(cid:21)2 Chairman, President and Chief Executive Officer
(cid:21)4
(cid:21)2 Chairman, President and Chief Executive Officer
(cid:21)2 Chairman, President and Chief Executive Officer
(cid:21)4
(cid:21)4
(cid:21)4
(cid:21)4
(cid:21)4
(cid:21)4
(cid:21)4
(cid:20)(cid:23)
(cid:21)4
(cid:21)4
(cid:20)(cid:23)
(cid:20)(cid:23)
(cid:20)(cid:23)
(cid:20)(cid:23)
(cid:20)(cid:23)
(cid:20)(cid:23)
(cid:20)(cid:23)
(cid:21)4
(cid:20)(cid:23)
(cid:20)(cid:23)
(cid:21)4
(cid:21)4
(cid:21)4
(cid:21)4
(cid:21)4
(cid:21)4
(cid:21)4
(cid:21)4
(cid:21)4
litigation staff with primary oversight of litigation throughout Textron. She has also played an active role in developing,
litigation staff with primary oversight of litigation throughout Textron. She has also played an active role in developing,
litigation staff with primary oversight of litigation throughout Textron. She has also played an active role in developing,
litigation staff with primary oversight of litigation throughout Textron. She has also played an active role in developing,
litigation staff with primary oversight of litigation throughout Textron. She has also played an active role in developing,
implementing and standardi(cid:81)ing human resources policies across the Company and served as the senior legal advisor on
implementing and standardi(cid:81)ing human resources policies across the Company and served as the senior legal advisor on
implementing and standardi(cid:81)ing human resources policies across the Company and served as the senior legal advisor on
implementing and standardi(cid:81)ing human resources policies across the Company and served as the senior legal advisor on
implementing and standardi(cid:81)ing human resources policies across the Company and served as the senior legal advisor on
employment and benefits issues.
employment and benefits issues.
employment and benefits issues.
employment and benefits issues.
employment and benefits issues.
Mr. Lupone (cid:65)oined Textron in February 2012 as Executive Vice President, General Counsel, Secretary and Chief Compliance
Mr. Lupone (cid:65)oined Textron in February 2012 as Executive Vice President, General Counsel, Secretary and Chief Compliance
Mr. Lupone (cid:65)oined Textron in February 2012 as Executive Vice President, General Counsel, Secretary and Chief Compliance
Mr. Lupone (cid:65)oined Textron in February 2012 as Executive Vice President, General Counsel, Secretary and Chief Compliance
Mr. Lupone (cid:65)oined Textron in February 2012 as Executive Vice President, General Counsel, Secretary and Chief Compliance
Officer. Previously, he was senior vice president and general counsel of Siemens Corporation ((cid:47).S.) since 1999 and general
Officer. Previously, he was senior vice president and general counsel of Siemens Corporation ((cid:47).S.) since 1999 and general
Officer. Previously, he was senior vice president and general counsel of Siemens Corporation ((cid:47).S.) since 1999 and general
Officer. Previously, he was senior vice president and general counsel of Siemens Corporation ((cid:47).S.) since 1999 and general
Officer. Previously, he was senior vice president and general counsel of Siemens Corporation ((cid:47).S.) since 1999 and general
counsel of Siemens AG for the Americas since 200(cid:23). Prior to (cid:65)oining Siemens in 1992, Mr. Lupone was vice president and
counsel of Siemens AG for the Americas since 200(cid:23). Prior to (cid:65)oining Siemens in 1992, Mr. Lupone was vice president and
counsel of Siemens AG for the Americas since 200(cid:23). Prior to (cid:65)oining Siemens in 1992, Mr. Lupone was vice president and
counsel of Siemens AG for the Americas since 200(cid:23). Prior to (cid:65)oining Siemens in 1992, Mr. Lupone was vice president and
counsel of Siemens AG for the Americas since 200(cid:23). Prior to (cid:65)oining Siemens in 1992, Mr. Lupone was vice president and
general counsel of Price Communications Corporation.
general counsel of Price Communications Corporation.
general counsel of Price Communications Corporation.
general counsel of Price Communications Corporation.
general counsel of Price Communications Corporation.
(cid:20)(cid:68)aila(cid:48)le(cid:1)(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)
(cid:20)(cid:68)aila(cid:48)le(cid:1)(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)
(cid:20)(cid:68)aila(cid:48)le(cid:1)(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)
(cid:20)(cid:68)aila(cid:48)le(cid:1)(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)
(cid:20)(cid:68)aila(cid:48)le(cid:1)(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)
(cid:49)e make available free of charge on our Internet (cid:49)eb site (www.textron.com) our Annual Report on Form 10-K, (cid:43)uarterly
(cid:49)e make available free of charge on our Internet (cid:49)eb site (www.textron.com) our Annual Report on Form 10-K, (cid:43)uarterly
(cid:49)e make available free of charge on our Internet (cid:49)eb site (www.textron.com) our Annual Report on Form 10-K, (cid:43)uarterly
(cid:49)e make available free of charge on our Internet (cid:49)eb site (www.textron.com) our Annual Report on Form 10-K, (cid:43)uarterly
(cid:49)e make available free of charge on our Internet (cid:49)eb site (www.textron.com) our Annual Report on Form 10-K, (cid:43)uarterly
Reports on Form 10-(cid:43), Current Reports on Form (cid:23)-K and amendments to those reports filed or furnished pursuant to
Reports on Form 10-(cid:43), Current Reports on Form (cid:23)-K and amendments to those reports filed or furnished pursuant to
Reports on Form 10-(cid:43), Current Reports on Form (cid:23)-K and amendments to those reports filed or furnished pursuant to
Reports on Form 10-(cid:43), Current Reports on Form (cid:23)-K and amendments to those reports filed or furnished pursuant to
Reports on Form 10-(cid:43), Current Reports on Form (cid:23)-K and amendments to those reports filed or furnished pursuant to
Section 13(a) or 1(cid:20)(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file such
Section 13(a) or 1(cid:20)(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file such
Section 13(a) or 1(cid:20)(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file such
Section 13(a) or 1(cid:20)(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file such
Section 13(a) or 1(cid:20)(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file such
material with, or furnish it to, the Securities and Exchange Commission.
material with, or furnish it to, the Securities and Exchange Commission.
material with, or furnish it to, the Securities and Exchange Commission.
material with, or furnish it to, the Securities and Exchange Commission.
material with, or furnish it to, the Securities and Exchange Commission.
(cid:25)(cid:61)(cid:64)(cid:69)a(cid:64)(cid:50)(cid:7)(cid:31)(cid:61)(cid:61)(cid:57)i(cid:60)(cid:53)(cid:1)(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)
(cid:25)(cid:61)(cid:64)(cid:69)a(cid:64)(cid:50)(cid:7)(cid:31)(cid:61)(cid:61)(cid:57)i(cid:60)(cid:53)(cid:1)(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)
(cid:25)(cid:61)(cid:64)(cid:69)a(cid:64)(cid:50)(cid:7)(cid:31)(cid:61)(cid:61)(cid:57)i(cid:60)(cid:53)(cid:1)(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)
(cid:25)(cid:61)(cid:64)(cid:69)a(cid:64)(cid:50)(cid:7)(cid:31)(cid:61)(cid:61)(cid:57)i(cid:60)(cid:53)(cid:1)(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)
(cid:25)(cid:61)(cid:64)(cid:69)a(cid:64)(cid:50)(cid:7)(cid:31)(cid:61)(cid:61)(cid:57)i(cid:60)(cid:53)(cid:1)(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)
Certain statements in this Annual Report on Form 10-K and other oral and written statements made by us from time to time are
Certain statements in this Annual Report on Form 10-K and other oral and written statements made by us from time to time are
Certain statements in this Annual Report on Form 10-K and other oral and written statements made by us from time to time are
Certain statements in this Annual Report on Form 10-K and other oral and written statements made by us from time to time are
Certain statements in this Annual Report on Form 10-K and other oral and written statements made by us from time to time are
(cid:86)forward-looking statements(cid:87) within the meaning of the Private Securities Litigation Reform Act of 199(cid:20). These forward-looking
(cid:86)forward-looking statements(cid:87) within the meaning of the Private Securities Litigation Reform Act of 199(cid:20). These forward-looking
(cid:86)forward-looking statements(cid:87) within the meaning of the Private Securities Litigation Reform Act of 199(cid:20). These forward-looking
(cid:86)forward-looking statements(cid:87) within the meaning of the Private Securities Litigation Reform Act of 199(cid:20). These forward-looking
(cid:86)forward-looking statements(cid:87) within the meaning of the Private Securities Litigation Reform Act of 199(cid:20). These forward-looking
statements, which may describe strategies, goals, outlook or other non-historical matters, or pro(cid:65)ect revenues, income, returns or
statements, which may describe strategies, goals, outlook or other non-historical matters, or pro(cid:65)ect revenues, income, returns or
statements, which may describe strategies, goals, outlook or other non-historical matters, or pro(cid:65)ect revenues, income, returns or
statements, which may describe strategies, goals, outlook or other non-historical matters, or pro(cid:65)ect revenues, income, returns or
statements, which may describe strategies, goals, outlook or other non-historical matters, or pro(cid:65)ect revenues, income, returns or
other financial measures, often include words such as (cid:86)believe,(cid:87) (cid:86)expect,(cid:87) (cid:86)anticipate,(cid:87) (cid:86)intend,(cid:87) (cid:86)plan,(cid:87) (cid:86)estimate,(cid:87) (cid:86)guidance,(cid:87)
other financial measures, often include words such as (cid:86)believe,(cid:87) (cid:86)expect,(cid:87) (cid:86)anticipate,(cid:87) (cid:86)intend,(cid:87) (cid:86)plan,(cid:87) (cid:86)estimate,(cid:87) (cid:86)guidance,(cid:87)
other financial measures, often include words such as (cid:86)believe,(cid:87) (cid:86)expect,(cid:87) (cid:86)anticipate,(cid:87) (cid:86)intend,(cid:87) (cid:86)plan,(cid:87) (cid:86)estimate,(cid:87) (cid:86)guidance,(cid:87)
other financial measures, often include words such as (cid:86)believe,(cid:87) (cid:86)expect,(cid:87) (cid:86)anticipate,(cid:87) (cid:86)intend,(cid:87) (cid:86)plan,(cid:87) (cid:86)estimate,(cid:87) (cid:86)guidance,(cid:87)
other financial measures, often include words such as (cid:86)believe,(cid:87) (cid:86)expect,(cid:87) (cid:86)anticipate,(cid:87) (cid:86)intend,(cid:87) (cid:86)plan,(cid:87) (cid:86)estimate,(cid:87) (cid:86)guidance,(cid:87)
(cid:86)pro(cid:65)ect,(cid:87) (cid:86)target,(cid:87) (cid:86)potential,(cid:87) (cid:86)will,(cid:87) (cid:86)should,(cid:87) (cid:86)could,(cid:87) (cid:86)likely(cid:87) or (cid:86)may(cid:87) and similar expressions intended to identify forward-
(cid:86)pro(cid:65)ect,(cid:87) (cid:86)target,(cid:87) (cid:86)potential,(cid:87) (cid:86)will,(cid:87) (cid:86)should,(cid:87) (cid:86)could,(cid:87) (cid:86)likely(cid:87) or (cid:86)may(cid:87) and similar expressions intended to identify forward-
(cid:86)pro(cid:65)ect,(cid:87) (cid:86)target,(cid:87) (cid:86)potential,(cid:87) (cid:86)will,(cid:87) (cid:86)should,(cid:87) (cid:86)could,(cid:87) (cid:86)likely(cid:87) or (cid:86)may(cid:87) and similar expressions intended to identify forward-
(cid:86)pro(cid:65)ect,(cid:87) (cid:86)target,(cid:87) (cid:86)potential,(cid:87) (cid:86)will,(cid:87) (cid:86)should,(cid:87) (cid:86)could,(cid:87) (cid:86)likely(cid:87) or (cid:86)may(cid:87) and similar expressions intended to identify forward-
(cid:86)pro(cid:65)ect,(cid:87) (cid:86)target,(cid:87) (cid:86)potential,(cid:87) (cid:86)will,(cid:87) (cid:86)should,(cid:87) (cid:86)could,(cid:87) (cid:86)likely(cid:87) or (cid:86)may(cid:87) and similar expressions intended to identify forward-
looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors
looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors
looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors
looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors
looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors
that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given
that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given
that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given
that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given
that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given
these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak
these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak
these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak
these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak
these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak
only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In
only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In
only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In
only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In
only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In
addition to those factors described herein under (cid:86)Risk Factors,(cid:87) among the factors that could cause actual results to differ
addition to those factors described herein under (cid:86)Risk Factors,(cid:87) among the factors that could cause actual results to differ
addition to those factors described herein under (cid:86)Risk Factors,(cid:87) among the factors that could cause actual results to differ
addition to those factors described herein under (cid:86)Risk Factors,(cid:87) among the factors that could cause actual results to differ
addition to those factors described herein under (cid:86)Risk Factors,(cid:87) among the factors that could cause actual results to differ
materially from past and pro(cid:65)ected future results are the following:
materially from past and pro(cid:65)ected future results are the following:
materially from past and pro(cid:65)ected future results are the following:
materially from past and pro(cid:65)ected future results are the following:
materially from past and pro(cid:65)ected future results are the following:
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Interruptions in the (cid:47).S. Government(cid:88)s ability to fund its activities and/or pay its obligations(cid:26)
Interruptions in the (cid:47).S. Government(cid:88)s ability to fund its activities and/or pay its obligations(cid:26)
Interruptions in the (cid:47).S. Government(cid:88)s ability to fund its activities and/or pay its obligations(cid:26)
Interruptions in the (cid:47).S. Government(cid:88)s ability to fund its activities and/or pay its obligations(cid:26)
Interruptions in the (cid:47).S. Government(cid:88)s ability to fund its activities and/or pay its obligations(cid:26)
Changing priorities or reductions in the (cid:47).S. Government defense budget, including those related to military operations
Changing priorities or reductions in the (cid:47).S. Government defense budget, including those related to military operations
Changing priorities or reductions in the (cid:47).S. Government defense budget, including those related to military operations
Changing priorities or reductions in the (cid:47).S. Government defense budget, including those related to military operations
Changing priorities or reductions in the (cid:47).S. Government defense budget, including those related to military operations
in foreign countries(cid:26)
in foreign countries(cid:26)
in foreign countries(cid:26)
in foreign countries(cid:26)
in foreign countries(cid:26)
Our ability to perform as anticipated and to control costs under contracts with the (cid:47).S. Government(cid:26)
Our ability to perform as anticipated and to control costs under contracts with the (cid:47).S. Government(cid:26)
Our ability to perform as anticipated and to control costs under contracts with the (cid:47).S. Government(cid:26)
Our ability to perform as anticipated and to control costs under contracts with the (cid:47).S. Government(cid:26)
Our ability to perform as anticipated and to control costs under contracts with the (cid:47).S. Government(cid:26)
The (cid:47).S. Government(cid:88)s ability to unilaterally modify or terminate its contracts with us for the (cid:47).S. Government(cid:88)s
The (cid:47).S. Government(cid:88)s ability to unilaterally modify or terminate its contracts with us for the (cid:47).S. Government(cid:88)s
The (cid:47).S. Government(cid:88)s ability to unilaterally modify or terminate its contracts with us for the (cid:47).S. Government(cid:88)s
The (cid:47).S. Government(cid:88)s ability to unilaterally modify or terminate its contracts with us for the (cid:47).S. Government(cid:88)s
The (cid:47).S. Government(cid:88)s ability to unilaterally modify or terminate its contracts with us for the (cid:47).S. Government(cid:88)s
convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain
convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain
convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain
convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain
convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain
circumstances, to withhold payment or suspend or debar us as a contractor eligible to receive future contract awards(cid:26)
circumstances, to withhold payment or suspend or debar us as a contractor eligible to receive future contract awards(cid:26)
circumstances, to withhold payment or suspend or debar us as a contractor eligible to receive future contract awards(cid:26)
circumstances, to withhold payment or suspend or debar us as a contractor eligible to receive future contract awards(cid:26)
circumstances, to withhold payment or suspend or debar us as a contractor eligible to receive future contract awards(cid:26)
Changes in foreign military funding priorities or budget constraints and determinations, or changes in government
Changes in foreign military funding priorities or budget constraints and determinations, or changes in government
Changes in foreign military funding priorities or budget constraints and determinations, or changes in government
Changes in foreign military funding priorities or budget constraints and determinations, or changes in government
Changes in foreign military funding priorities or budget constraints and determinations, or changes in government
regulations or policies on the export and import of military and commercial products(cid:26)
regulations or policies on the export and import of military and commercial products(cid:26)
regulations or policies on the export and import of military and commercial products(cid:26)
regulations or policies on the export and import of military and commercial products(cid:26)
regulations or policies on the export and import of military and commercial products(cid:26)
Volatility in the global economy or changes in worldwide political conditions that adversely impact demand for our
Volatility in the global economy or changes in worldwide political conditions that adversely impact demand for our
Volatility in the global economy or changes in worldwide political conditions that adversely impact demand for our
Volatility in the global economy or changes in worldwide political conditions that adversely impact demand for our
Volatility in the global economy or changes in worldwide political conditions that adversely impact demand for our
products(cid:26)
products(cid:26)
products(cid:26)
products(cid:26)
products(cid:26)
Volatility in interest rates or foreign exchange rates and inflationary pressures(cid:26)
Volatility in interest rates or foreign exchange rates and inflationary pressures(cid:26)
Volatility in interest rates or foreign exchange rates and inflationary pressures(cid:26)
Volatility in interest rates or foreign exchange rates and inflationary pressures(cid:26)
Volatility in interest rates or foreign exchange rates and inflationary pressures(cid:26)
Risks related to our international business, including establishing and maintaining facilities in locations around the world
Risks related to our international business, including establishing and maintaining facilities in locations around the world
Risks related to our international business, including establishing and maintaining facilities in locations around the world
Risks related to our international business, including establishing and maintaining facilities in locations around the world
Risks related to our international business, including establishing and maintaining facilities in locations around the world
and relying on (cid:65)oint venture partners, subcontractors, suppliers, representatives, consultants and other business partners
and relying on (cid:65)oint venture partners, subcontractors, suppliers, representatives, consultants and other business partners
and relying on (cid:65)oint venture partners, subcontractors, suppliers, representatives, consultants and other business partners
and relying on (cid:65)oint venture partners, subcontractors, suppliers, representatives, consultants and other business partners
and relying on (cid:65)oint venture partners, subcontractors, suppliers, representatives, consultants and other business partners
in connection with international business, including in emerging market countries(cid:26)
in connection with international business, including in emerging market countries(cid:26)
in connection with international business, including in emerging market countries(cid:26)
in connection with international business, including in emerging market countries(cid:26)
in connection with international business, including in emerging market countries(cid:26)
Our Finance segment(cid:88)s ability to maintain portfolio credit quality or to reali(cid:81)e full value of receivables(cid:26)
Our Finance segment(cid:88)s ability to maintain portfolio credit quality or to reali(cid:81)e full value of receivables(cid:26)
Our Finance segment(cid:88)s ability to maintain portfolio credit quality or to reali(cid:81)e full value of receivables(cid:26)
Our Finance segment(cid:88)s ability to maintain portfolio credit quality or to reali(cid:81)e full value of receivables(cid:26)
Our Finance segment(cid:88)s ability to maintain portfolio credit quality or to reali(cid:81)e full value of receivables(cid:26)
Performance issues with key suppliers or subcontractors(cid:26)
Performance issues with key suppliers or subcontractors(cid:26)
Performance issues with key suppliers or subcontractors(cid:26)
Performance issues with key suppliers or subcontractors(cid:26)
Performance issues with key suppliers or subcontractors(cid:26)
Legislative or regulatory actions, both domestic and foreign, impacting our operations or demand for our products(cid:26)
Legislative or regulatory actions, both domestic and foreign, impacting our operations or demand for our products(cid:26)
Legislative or regulatory actions, both domestic and foreign, impacting our operations or demand for our products(cid:26)
Legislative or regulatory actions, both domestic and foreign, impacting our operations or demand for our products(cid:26)
Legislative or regulatory actions, both domestic and foreign, impacting our operations or demand for our products(cid:26)
Our ability to control costs and successfully implement various cost-reduction activities(cid:26)
Our ability to control costs and successfully implement various cost-reduction activities(cid:26)
Our ability to control costs and successfully implement various cost-reduction activities(cid:26)
Our ability to control costs and successfully implement various cost-reduction activities(cid:26)
Our ability to control costs and successfully implement various cost-reduction activities(cid:26)
The efficacy of research and development investments to develop new products or unanticipated expenses in connection
The efficacy of research and development investments to develop new products or unanticipated expenses in connection
The efficacy of research and development investments to develop new products or unanticipated expenses in connection
The efficacy of research and development investments to develop new products or unanticipated expenses in connection
The efficacy of research and development investments to develop new products or unanticipated expenses in connection
with the launching of significant new products or programs(cid:26)
with the launching of significant new products or programs(cid:26)
with the launching of significant new products or programs(cid:26)
with the launching of significant new products or programs(cid:26)
with the launching of significant new products or programs(cid:26)
The timing of our new product launches or certifications of our new aircraft products(cid:26)
The timing of our new product launches or certifications of our new aircraft products(cid:26)
The timing of our new product launches or certifications of our new aircraft products(cid:26)
The timing of our new product launches or certifications of our new aircraft products(cid:26)
The timing of our new product launches or certifications of our new aircraft products(cid:26)
Our ability to keep pace with our competitors in the introduction of new products and upgrades with features and
Our ability to keep pace with our competitors in the introduction of new products and upgrades with features and
Our ability to keep pace with our competitors in the introduction of new products and upgrades with features and
Our ability to keep pace with our competitors in the introduction of new products and upgrades with features and
Our ability to keep pace with our competitors in the introduction of new products and upgrades with features and
technologies desired by our customers(cid:26)
technologies desired by our customers(cid:26)
technologies desired by our customers(cid:26)
technologies desired by our customers(cid:26)
technologies desired by our customers(cid:26)
Pension plan assumptions and future contributions(cid:26)
Pension plan assumptions and future contributions(cid:26)
Pension plan assumptions and future contributions(cid:26)
Pension plan assumptions and future contributions(cid:26)
Pension plan assumptions and future contributions(cid:26)
Demand softness or volatility in the markets in which we do business(cid:26)
Demand softness or volatility in the markets in which we do business(cid:26)
Demand softness or volatility in the markets in which we do business(cid:26)
Demand softness or volatility in the markets in which we do business(cid:26)
Demand softness or volatility in the markets in which we do business(cid:26)
Cybersecurity threats, including the potential misappropriation of assets or sensitive information, corruption of data or
Cybersecurity threats, including the potential misappropriation of assets or sensitive information, corruption of data or
Cybersecurity threats, including the potential misappropriation of assets or sensitive information, corruption of data or
Cybersecurity threats, including the potential misappropriation of assets or sensitive information, corruption of data or
Cybersecurity threats, including the potential misappropriation of assets or sensitive information, corruption of data or
operational disruption(cid:26)
operational disruption(cid:26)
operational disruption(cid:26)
operational disruption(cid:26)
operational disruption(cid:26)
Difficulty or unanticipated expenses in connection with integrating acquired businesses(cid:26)
Difficulty or unanticipated expenses in connection with integrating acquired businesses(cid:26)
Difficulty or unanticipated expenses in connection with integrating acquired businesses(cid:26)
Difficulty or unanticipated expenses in connection with integrating acquired businesses(cid:26)
Difficulty or unanticipated expenses in connection with integrating acquired businesses(cid:26)
The risk that acquisitions do not perform as planned, including, for example, the risk that acquired businesses will not
The risk that acquisitions do not perform as planned, including, for example, the risk that acquired businesses will not
The risk that acquisitions do not perform as planned, including, for example, the risk that acquired businesses will not
The risk that acquisitions do not perform as planned, including, for example, the risk that acquired businesses will not
The risk that acquisitions do not perform as planned, including, for example, the risk that acquired businesses will not
achieve revenue and profit pro(cid:65)ections(cid:26)
achieve revenue and profit pro(cid:65)ections(cid:26)
achieve revenue and profit pro(cid:65)ections(cid:26)
achieve revenue and profit pro(cid:65)ections(cid:26)
achieve revenue and profit pro(cid:65)ections(cid:26)
The impact of changes in tax legislation(cid:26)
The impact of changes in tax legislation(cid:26)
The impact of changes in tax legislation(cid:26)
The impact of changes in tax legislation(cid:26)
The impact of changes in tax legislation(cid:26)
8 Textron 2023 Annual Report
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The risk of disruptions to our business and the business of our suppliers, customers and other business partners due to
The risk of disruptions to our business and the business of our suppliers, customers and other business partners due to
The risk of disruptions to our business and the business of our suppliers, customers and other business partners due to
The risk of disruptions to our business and the business of our suppliers, customers and other business partners due to
The risk of disruptions to our business and the business of our suppliers, customers and other business partners due to
The risk of disruptions to our business and the business of our suppliers, customers and other business partners due to
unexpected events, such as pandemics, natural disasters, acts of war, strikes, terrorism, social unrest or other societal or
The risk of disruptions to our business and the business of our suppliers, customers and other business partners due to
The risk of disruptions to our business and the business of our suppliers, customers and other business partners due to
unexpected events, such as pandemics, natural disasters, acts of war, strikes, terrorism, social unrest or other societal or
unexpected events, such as pandemics, natural disasters, acts of war, strikes, terrorism, social unrest or other societal or
unexpected events, such as pandemics, natural disasters, acts of war, strikes, terrorism, social unrest or other societal or
unexpected events, such as pandemics, natural disasters, acts of war, strikes, terrorism, social unrest or other societal or
unexpected events, such as pandemics, natural disasters, acts of war, strikes, terrorism, social unrest or other societal or
political conditions(cid:26) and
unexpected events, such as pandemics, natural disasters, acts of war, strikes, terrorism, social unrest or other societal or
unexpected events, such as pandemics, natural disasters, acts of war, strikes, terrorism, social unrest or other societal or
political conditions(cid:26) and
political conditions(cid:26) and
political conditions(cid:26) and
political conditions(cid:26) and
political conditions(cid:26) and
The ability of our businesses to hire and retain the highly skilled personnel necessary for our businesses to succeed.
political conditions(cid:26) and
The ability of our businesses to hire and retain the highly skilled personnel necessary for our businesses to succeed.
political conditions(cid:26) and
The ability of our businesses to hire and retain the highly skilled personnel necessary for our businesses to succeed.
The ability of our businesses to hire and retain the highly skilled personnel necessary for our businesses to succeed.
The ability of our businesses to hire and retain the highly skilled personnel necessary for our businesses to succeed.
The ability of our businesses to hire and retain the highly skilled personnel necessary for our businesses to succeed.
The ability of our businesses to hire and retain the highly skilled personnel necessary for our businesses to succeed.
The ability of our businesses to hire and retain the highly skilled personnel necessary for our businesses to succeed.
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(cid:28)tem(cid:1)(cid:10)(cid:20)(cid:8)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:1)(cid:25)a(cid:49)t(cid:61)(cid:64)(cid:65)
(cid:28)tem(cid:1)(cid:10)(cid:20)(cid:8)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:1)(cid:25)a(cid:49)t(cid:61)(cid:64)(cid:65)
(cid:28)tem(cid:1)(cid:10)(cid:20)(cid:8)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:1)(cid:25)a(cid:49)t(cid:61)(cid:64)(cid:65)
(cid:28)tem(cid:1)(cid:10)(cid:20)(cid:8)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:1)(cid:25)a(cid:49)t(cid:61)(cid:64)(cid:65)
Our business, financial condition and results of operations are sub(cid:65)ect to various risks, including those discussed below, which
Our business, financial condition and results of operations are sub(cid:65)ect to various risks, including those discussed below, which
Our business, financial condition and results of operations are sub(cid:65)ect to various risks, including those discussed below, which
Our business, financial condition and results of operations are sub(cid:65)ect to various risks, including those discussed below, which
Our business, financial condition and results of operations are sub(cid:65)ect to various risks, including those discussed below, which
Our business, financial condition and results of operations are sub(cid:65)ect to various risks, including those discussed below, which
may affect the value of our securities. The risks discussed below are those that we believe currently are the most significant to our
Our business, financial condition and results of operations are sub(cid:65)ect to various risks, including those discussed below, which
Our business, financial condition and results of operations are sub(cid:65)ect to various risks, including those discussed below, which
may affect the value of our securities. The risks discussed below are those that we believe currently are the most significant to our
may affect the value of our securities. The risks discussed below are those that we believe currently are the most significant to our
may affect the value of our securities. The risks discussed below are those that we believe currently are the most significant to our
may affect the value of our securities. The risks discussed below are those that we believe currently are the most significant to our
may affect the value of our securities. The risks discussed below are those that we believe currently are the most significant to our
business.
may affect the value of our securities. The risks discussed below are those that we believe currently are the most significant to our
may affect the value of our securities. The risks discussed below are those that we believe currently are the most significant to our
business.
business.
business.
business.
business.
business.
business.
(cid:20)e(cid:64)(cid:61)(cid:65)(cid:62)a(cid:49)e(cid:1)a(cid:60)(cid:50)(cid:1)(cid:23)e(cid:52)e(cid:60)(cid:65)e(cid:1)(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)(cid:71)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:20)e(cid:64)(cid:61)(cid:65)(cid:62)a(cid:49)e(cid:1)a(cid:60)(cid:50)(cid:1)(cid:23)e(cid:52)e(cid:60)(cid:65)e(cid:1)(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)(cid:71)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:20)e(cid:64)(cid:61)(cid:65)(cid:62)a(cid:49)e(cid:1)a(cid:60)(cid:50)(cid:1)(cid:23)e(cid:52)e(cid:60)(cid:65)e(cid:1)(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)(cid:71)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:20)e(cid:64)(cid:61)(cid:65)(cid:62)a(cid:49)e(cid:1)a(cid:60)(cid:50)(cid:1)(cid:23)e(cid:52)e(cid:60)(cid:65)e(cid:1)(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)(cid:71)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:20)e(cid:64)(cid:61)(cid:65)(cid:62)a(cid:49)e(cid:1)a(cid:60)(cid:50)(cid:1)(cid:23)e(cid:52)e(cid:60)(cid:65)e(cid:1)(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)(cid:71)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:20)e(cid:64)(cid:61)(cid:65)(cid:62)a(cid:49)e(cid:1)a(cid:60)(cid:50)(cid:1)(cid:23)e(cid:52)e(cid:60)(cid:65)e(cid:1)(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)(cid:71)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:20)e(cid:64)(cid:61)(cid:65)(cid:62)a(cid:49)e(cid:1)a(cid:60)(cid:50)(cid:1)(cid:23)e(cid:52)e(cid:60)(cid:65)e(cid:1)(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)(cid:71)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:20)e(cid:64)(cid:61)(cid:65)(cid:62)a(cid:49)e(cid:1)a(cid:60)(cid:50)(cid:1)(cid:23)e(cid:52)e(cid:60)(cid:65)e(cid:1)(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)(cid:71)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
Demand for our aircraft products is cyclical and lower demand adversely affects our financial results.
Demand for our aircraft products is cyclical and lower demand adversely affects our financial results.
Demand for our aircraft products is cyclical and lower demand adversely affects our financial results.
Demand for our aircraft products is cyclical and lower demand adversely affects our financial results.
Demand for our aircraft products is cyclical and lower demand adversely affects our financial results.
Demand for our aircraft products is cyclical and lower demand adversely affects our financial results.
Demand for business (cid:65)ets, turbo props and commercial helicopters has been cyclical and difficult to forecast. The demand for our
Demand for our aircraft products is cyclical and lower demand adversely affects our financial results.
Demand for business (cid:65)ets, turbo props and commercial helicopters has been cyclical and difficult to forecast. The demand for our
Demand for our aircraft products is cyclical and lower demand adversely affects our financial results.
Demand for business (cid:65)ets, turbo props and commercial helicopters has been cyclical and difficult to forecast. The demand for our
Demand for business (cid:65)ets, turbo props and commercial helicopters has been cyclical and difficult to forecast. The demand for our
Demand for business (cid:65)ets, turbo props and commercial helicopters has been cyclical and difficult to forecast. The demand for our
Demand for business (cid:65)ets, turbo props and commercial helicopters has been cyclical and difficult to forecast. The demand for our
aircraft products has been adversely impacted by unexpected events and may be impacted by such events in the future. Therefore,
Demand for business (cid:65)ets, turbo props and commercial helicopters has been cyclical and difficult to forecast. The demand for our
Demand for business (cid:65)ets, turbo props and commercial helicopters has been cyclical and difficult to forecast. The demand for our
aircraft products has been adversely impacted by unexpected events and may be impacted by such events in the future. Therefore,
aircraft products has been adversely impacted by unexpected events and may be impacted by such events in the future. Therefore,
aircraft products has been adversely impacted by unexpected events and may be impacted by such events in the future. Therefore,
aircraft products has been adversely impacted by unexpected events and may be impacted by such events in the future. Therefore,
aircraft products has been adversely impacted by unexpected events and may be impacted by such events in the future. Therefore,
future demand for these products could be significantly and unexpectedly less than anticipated and/or less than previous period
aircraft products has been adversely impacted by unexpected events and may be impacted by such events in the future. Therefore,
future demand for these products could be significantly and unexpectedly less than anticipated and/or less than previous period
aircraft products has been adversely impacted by unexpected events and may be impacted by such events in the future. Therefore,
future demand for these products could be significantly and unexpectedly less than anticipated and/or less than previous period
future demand for these products could be significantly and unexpectedly less than anticipated and/or less than previous period
future demand for these products could be significantly and unexpectedly less than anticipated and/or less than previous period
future demand for these products could be significantly and unexpectedly less than anticipated and/or less than previous period
deliveries. Similarly, there is uncertainty as to when or whether our existing commercial backlog for aircraft products will convert
future demand for these products could be significantly and unexpectedly less than anticipated and/or less than previous period
future demand for these products could be significantly and unexpectedly less than anticipated and/or less than previous period
deliveries. Similarly, there is uncertainty as to when or whether our existing commercial backlog for aircraft products will convert
deliveries. Similarly, there is uncertainty as to when or whether our existing commercial backlog for aircraft products will convert
deliveries. Similarly, there is uncertainty as to when or whether our existing commercial backlog for aircraft products will convert
deliveries. Similarly, there is uncertainty as to when or whether our existing commercial backlog for aircraft products will convert
deliveries. Similarly, there is uncertainty as to when or whether our existing commercial backlog for aircraft products will convert
to revenues as the conversion depends on production capacity, customer needs and credit availability, among other factors.
deliveries. Similarly, there is uncertainty as to when or whether our existing commercial backlog for aircraft products will convert
deliveries. Similarly, there is uncertainty as to when or whether our existing commercial backlog for aircraft products will convert
to revenues as the conversion depends on production capacity, customer needs and credit availability, among other factors.
to revenues as the conversion depends on production capacity, customer needs and credit availability, among other factors.
to revenues as the conversion depends on production capacity, customer needs and credit availability, among other factors.
to revenues as the conversion depends on production capacity, customer needs and credit availability, among other factors.
to revenues as the conversion depends on production capacity, customer needs and credit availability, among other factors.
Changes in economic conditions have in the past caused, and in the future may cause, customers to request that firm orders be
to revenues as the conversion depends on production capacity, customer needs and credit availability, among other factors.
to revenues as the conversion depends on production capacity, customer needs and credit availability, among other factors.
Changes in economic conditions have in the past caused, and in the future may cause, customers to request that firm orders be
Changes in economic conditions have in the past caused, and in the future may cause, customers to request that firm orders be
Changes in economic conditions have in the past caused, and in the future may cause, customers to request that firm orders be
Changes in economic conditions have in the past caused, and in the future may cause, customers to request that firm orders be
Changes in economic conditions have in the past caused, and in the future may cause, customers to request that firm orders be
rescheduled, deferred or cancelled. Reduced demand for our aircraft products or delays or cancellations of orders previously has
Changes in economic conditions have in the past caused, and in the future may cause, customers to request that firm orders be
rescheduled, deferred or cancelled. Reduced demand for our aircraft products or delays or cancellations of orders previously has
Changes in economic conditions have in the past caused, and in the future may cause, customers to request that firm orders be
rescheduled, deferred or cancelled. Reduced demand for our aircraft products or delays or cancellations of orders previously has
rescheduled, deferred or cancelled. Reduced demand for our aircraft products or delays or cancellations of orders previously has
rescheduled, deferred or cancelled. Reduced demand for our aircraft products or delays or cancellations of orders previously has
rescheduled, deferred or cancelled. Reduced demand for our aircraft products or delays or cancellations of orders previously has
had and, in the future, could have a material adverse effect on our cash flows, results of operations and financial condition.
rescheduled, deferred or cancelled. Reduced demand for our aircraft products or delays or cancellations of orders previously has
rescheduled, deferred or cancelled. Reduced demand for our aircraft products or delays or cancellations of orders previously has
had and, in the future, could have a material adverse effect on our cash flows, results of operations and financial condition.
had and, in the future, could have a material adverse effect on our cash flows, results of operations and financial condition.
had and, in the future, could have a material adverse effect on our cash flows, results of operations and financial condition.
had and, in the future, could have a material adverse effect on our cash flows, results of operations and financial condition.
had and, in the future, could have a material adverse effect on our cash flows, results of operations and financial condition.
had and, in the future, could have a material adverse effect on our cash flows, results of operations and financial condition.
had and, in the future, could have a material adverse effect on our cash flows, results of operations and financial condition.
We have customer concentration with the U.S. Government; reduction in U.S. Government defense spending can adversely
We have customer concentration with the U.S. Government; reduction in U.S. Government defense spending can adversely
We have customer concentration with the U.S. Government; reduction in U.S. Government defense spending can adversely
We have customer concentration with the U.S. Government; reduction in U.S. Government defense spending can adversely
We have customer concentration with the U.S. Government; reduction in U.S. Government defense spending can adversely
We have customer concentration with the U.S. Government; reduction in U.S. Government defense spending can adversely
affect our results of operations and financial condition.
We have customer concentration with the U.S. Government; reduction in U.S. Government defense spending can adversely
We have customer concentration with the U.S. Government; reduction in U.S. Government defense spending can adversely
affect our results of operations and financial condition.
affect our results of operations and financial condition.
affect our results of operations and financial condition.
affect our results of operations and financial condition.
affect our results of operations and financial condition.
affect our results of operations and financial condition.
During 2023, we derived approximately 21(cid:4) of our revenues from sales to a variety of (cid:47).S. Government entities. Our revenues
affect our results of operations and financial condition.
During 2023, we derived approximately 21(cid:4) of our revenues from sales to a variety of (cid:47).S. Government entities. Our revenues
During 2023, we derived approximately 21(cid:4) of our revenues from sales to a variety of (cid:47).S. Government entities. Our revenues
During 2023, we derived approximately 21(cid:4) of our revenues from sales to a variety of (cid:47).S. Government entities. Our revenues
During 2023, we derived approximately 21(cid:4) of our revenues from sales to a variety of (cid:47).S. Government entities. Our revenues
During 2023, we derived approximately 21(cid:4) of our revenues from sales to a variety of (cid:47).S. Government entities. Our revenues
from the (cid:47).S. Government largely result from contracts awarded to us under various (cid:47).S. Government defense-related programs.
During 2023, we derived approximately 21(cid:4) of our revenues from sales to a variety of (cid:47).S. Government entities. Our revenues
During 2023, we derived approximately 21(cid:4) of our revenues from sales to a variety of (cid:47).S. Government entities. Our revenues
from the (cid:47).S. Government largely result from contracts awarded to us under various (cid:47).S. Government defense-related programs.
from the (cid:47).S. Government largely result from contracts awarded to us under various (cid:47).S. Government defense-related programs.
from the (cid:47).S. Government largely result from contracts awarded to us under various (cid:47).S. Government defense-related programs.
from the (cid:47).S. Government largely result from contracts awarded to us under various (cid:47).S. Government defense-related programs.
from the (cid:47).S. Government largely result from contracts awarded to us under various (cid:47).S. Government defense-related programs.
Considerable uncertainty exists regarding how future budget and program decisions will develop. (cid:49)e cannot predict the impact
from the (cid:47).S. Government largely result from contracts awarded to us under various (cid:47).S. Government defense-related programs.
from the (cid:47).S. Government largely result from contracts awarded to us under various (cid:47).S. Government defense-related programs.
Considerable uncertainty exists regarding how future budget and program decisions will develop. (cid:49)e cannot predict the impact
Considerable uncertainty exists regarding how future budget and program decisions will develop. (cid:49)e cannot predict the impact
Considerable uncertainty exists regarding how future budget and program decisions will develop. (cid:49)e cannot predict the impact
Considerable uncertainty exists regarding how future budget and program decisions will develop. (cid:49)e cannot predict the impact
Considerable uncertainty exists regarding how future budget and program decisions will develop. (cid:49)e cannot predict the impact
on existing, follow-on or future programs from changes in the threat environment, defense spending levels, government priorities,
Considerable uncertainty exists regarding how future budget and program decisions will develop. (cid:49)e cannot predict the impact
Considerable uncertainty exists regarding how future budget and program decisions will develop. (cid:49)e cannot predict the impact
on existing, follow-on or future programs from changes in the threat environment, defense spending levels, government priorities,
on existing, follow-on or future programs from changes in the threat environment, defense spending levels, government priorities,
on existing, follow-on or future programs from changes in the threat environment, defense spending levels, government priorities,
on existing, follow-on or future programs from changes in the threat environment, defense spending levels, government priorities,
on existing, follow-on or future programs from changes in the threat environment, defense spending levels, government priorities,
political leadership, procurement practices, inflation and other macroeconomic trends, military strategy, or broader societal
on existing, follow-on or future programs from changes in the threat environment, defense spending levels, government priorities,
political leadership, procurement practices, inflation and other macroeconomic trends, military strategy, or broader societal
on existing, follow-on or future programs from changes in the threat environment, defense spending levels, government priorities,
political leadership, procurement practices, inflation and other macroeconomic trends, military strategy, or broader societal
political leadership, procurement practices, inflation and other macroeconomic trends, military strategy, or broader societal
political leadership, procurement practices, inflation and other macroeconomic trends, military strategy, or broader societal
political leadership, procurement practices, inflation and other macroeconomic trends, military strategy, or broader societal
changes. Significant changes in national and international priorities for defense spending could affect the funding, or the timing of
political leadership, procurement practices, inflation and other macroeconomic trends, military strategy, or broader societal
political leadership, procurement practices, inflation and other macroeconomic trends, military strategy, or broader societal
changes. Significant changes in national and international priorities for defense spending could affect the funding, or the timing of
changes. Significant changes in national and international priorities for defense spending could affect the funding, or the timing of
changes. Significant changes in national and international priorities for defense spending could affect the funding, or the timing of
changes. Significant changes in national and international priorities for defense spending could affect the funding, or the timing of
changes. Significant changes in national and international priorities for defense spending could affect the funding, or the timing of
funding, of our programs, which could negatively impact our results of operations and financial condition.
changes. Significant changes in national and international priorities for defense spending could affect the funding, or the timing of
changes. Significant changes in national and international priorities for defense spending could affect the funding, or the timing of
funding, of our programs, which could negatively impact our results of operations and financial condition.
funding, of our programs, which could negatively impact our results of operations and financial condition.
funding, of our programs, which could negatively impact our results of operations and financial condition.
funding, of our programs, which could negatively impact our results of operations and financial condition.
funding, of our programs, which could negatively impact our results of operations and financial condition.
funding, of our programs, which could negatively impact our results of operations and financial condition.
funding, of our programs, which could negatively impact our results of operations and financial condition.
The funding of (cid:47).S. Government defense programs is sub(cid:65)ect to congressional appropriation decisions and the (cid:47).S. Government
The funding of (cid:47).S. Government defense programs is sub(cid:65)ect to congressional appropriation decisions and the (cid:47).S. Government
The funding of (cid:47).S. Government defense programs is sub(cid:65)ect to congressional appropriation decisions and the (cid:47).S. Government
The funding of (cid:47).S. Government defense programs is sub(cid:65)ect to congressional appropriation decisions and the (cid:47).S. Government
The funding of (cid:47).S. Government defense programs is sub(cid:65)ect to congressional appropriation decisions and the (cid:47).S. Government
The funding of (cid:47).S. Government defense programs is sub(cid:65)ect to congressional appropriation decisions and the (cid:47).S. Government
budget process which includes enacting relevant legislation, such as appropriations bills and accords on the debt ceiling. Although
The funding of (cid:47).S. Government defense programs is sub(cid:65)ect to congressional appropriation decisions and the (cid:47).S. Government
The funding of (cid:47).S. Government defense programs is sub(cid:65)ect to congressional appropriation decisions and the (cid:47).S. Government
budget process which includes enacting relevant legislation, such as appropriations bills and accords on the debt ceiling. Although
budget process which includes enacting relevant legislation, such as appropriations bills and accords on the debt ceiling. Although
budget process which includes enacting relevant legislation, such as appropriations bills and accords on the debt ceiling. Although
budget process which includes enacting relevant legislation, such as appropriations bills and accords on the debt ceiling. Although
budget process which includes enacting relevant legislation, such as appropriations bills and accords on the debt ceiling. Although
multiple-year contracts may be planned in connection with ma(cid:65)or procurements, Congress generally appropriates funds on a fiscal
budget process which includes enacting relevant legislation, such as appropriations bills and accords on the debt ceiling. Although
budget process which includes enacting relevant legislation, such as appropriations bills and accords on the debt ceiling. Although
multiple-year contracts may be planned in connection with ma(cid:65)or procurements, Congress generally appropriates funds on a fiscal
multiple-year contracts may be planned in connection with ma(cid:65)or procurements, Congress generally appropriates funds on a fiscal
multiple-year contracts may be planned in connection with ma(cid:65)or procurements, Congress generally appropriates funds on a fiscal
multiple-year contracts may be planned in connection with ma(cid:65)or procurements, Congress generally appropriates funds on a fiscal
multiple-year contracts may be planned in connection with ma(cid:65)or procurements, Congress generally appropriates funds on a fiscal
year basis even though a program may continue for several years. Consequently, programs often are only partially funded
multiple-year contracts may be planned in connection with ma(cid:65)or procurements, Congress generally appropriates funds on a fiscal
multiple-year contracts may be planned in connection with ma(cid:65)or procurements, Congress generally appropriates funds on a fiscal
year basis even though a program may continue for several years. Consequently, programs often are only partially funded
year basis even though a program may continue for several years. Consequently, programs often are only partially funded
year basis even though a program may continue for several years. Consequently, programs often are only partially funded
year basis even though a program may continue for several years. Consequently, programs often are only partially funded
year basis even though a program may continue for several years. Consequently, programs often are only partially funded
initially, and additional funds are committed only as Congress makes further appropriations. Further uncertainty with respect to
year basis even though a program may continue for several years. Consequently, programs often are only partially funded
year basis even though a program may continue for several years. Consequently, programs often are only partially funded
initially, and additional funds are committed only as Congress makes further appropriations. Further uncertainty with respect to
initially, and additional funds are committed only as Congress makes further appropriations. Further uncertainty with respect to
initially, and additional funds are committed only as Congress makes further appropriations. Further uncertainty with respect to
initially, and additional funds are committed only as Congress makes further appropriations. Further uncertainty with respect to
initially, and additional funds are committed only as Congress makes further appropriations. Further uncertainty with respect to
ongoing programs could also result in the event that the (cid:47).S. Government finances its operations through temporary funding
initially, and additional funds are committed only as Congress makes further appropriations. Further uncertainty with respect to
initially, and additional funds are committed only as Congress makes further appropriations. Further uncertainty with respect to
ongoing programs could also result in the event that the (cid:47).S. Government finances its operations through temporary funding
ongoing programs could also result in the event that the (cid:47).S. Government finances its operations through temporary funding
ongoing programs could also result in the event that the (cid:47).S. Government finances its operations through temporary funding
ongoing programs could also result in the event that the (cid:47).S. Government finances its operations through temporary funding
ongoing programs could also result in the event that the (cid:47).S. Government finances its operations through temporary funding
measures such as (cid:86)continuing resolutions(cid:87) rather than full-year appropriations or if a government shutdown were to occur and
ongoing programs could also result in the event that the (cid:47).S. Government finances its operations through temporary funding
ongoing programs could also result in the event that the (cid:47).S. Government finances its operations through temporary funding
measures such as (cid:86)continuing resolutions(cid:87) rather than full-year appropriations or if a government shutdown were to occur and
measures such as (cid:86)continuing resolutions(cid:87) rather than full-year appropriations or if a government shutdown were to occur and
measures such as (cid:86)continuing resolutions(cid:87) rather than full-year appropriations or if a government shutdown were to occur and
measures such as (cid:86)continuing resolutions(cid:87) rather than full-year appropriations or if a government shutdown were to occur and
measures such as (cid:86)continuing resolutions(cid:87) rather than full-year appropriations or if a government shutdown were to occur and
were to continue for an extended period of time. If we incur costs in advance or in excess of funds committed on a contract, we
measures such as (cid:86)continuing resolutions(cid:87) rather than full-year appropriations or if a government shutdown were to occur and
measures such as (cid:86)continuing resolutions(cid:87) rather than full-year appropriations or if a government shutdown were to occur and
were to continue for an extended period of time. If we incur costs in advance or in excess of funds committed on a contract, we
were to continue for an extended period of time. If we incur costs in advance or in excess of funds committed on a contract, we
were to continue for an extended period of time. If we incur costs in advance or in excess of funds committed on a contract, we
were to continue for an extended period of time. If we incur costs in advance or in excess of funds committed on a contract, we
were to continue for an extended period of time. If we incur costs in advance or in excess of funds committed on a contract, we
are at risk for non-reimbursement of those costs until additional funds are appropriated. The reduction, termination or delay in the
were to continue for an extended period of time. If we incur costs in advance or in excess of funds committed on a contract, we
were to continue for an extended period of time. If we incur costs in advance or in excess of funds committed on a contract, we
are at risk for non-reimbursement of those costs until additional funds are appropriated. The reduction, termination or delay in the
are at risk for non-reimbursement of those costs until additional funds are appropriated. The reduction, termination or delay in the
are at risk for non-reimbursement of those costs until additional funds are appropriated. The reduction, termination or delay in the
are at risk for non-reimbursement of those costs until additional funds are appropriated. The reduction, termination or delay in the
are at risk for non-reimbursement of those costs until additional funds are appropriated. The reduction, termination or delay in the
timing of funding for (cid:47).S. Government programs for which we currently provide or propose to provide products or services from
are at risk for non-reimbursement of those costs until additional funds are appropriated. The reduction, termination or delay in the
are at risk for non-reimbursement of those costs until additional funds are appropriated. The reduction, termination or delay in the
timing of funding for (cid:47).S. Government programs for which we currently provide or propose to provide products or services from
timing of funding for (cid:47).S. Government programs for which we currently provide or propose to provide products or services from
timing of funding for (cid:47).S. Government programs for which we currently provide or propose to provide products or services from
timing of funding for (cid:47).S. Government programs for which we currently provide or propose to provide products or services from
timing of funding for (cid:47).S. Government programs for which we currently provide or propose to provide products or services from
time to time has resulted and, in the future, may result in a loss of anticipated revenues. A loss of such revenues could materially
timing of funding for (cid:47).S. Government programs for which we currently provide or propose to provide products or services from
timing of funding for (cid:47).S. Government programs for which we currently provide or propose to provide products or services from
time to time has resulted and, in the future, may result in a loss of anticipated revenues. A loss of such revenues could materially
time to time has resulted and, in the future, may result in a loss of anticipated revenues. A loss of such revenues could materially
time to time has resulted and, in the future, may result in a loss of anticipated revenues. A loss of such revenues could materially
time to time has resulted and, in the future, may result in a loss of anticipated revenues. A loss of such revenues could materially
time to time has resulted and, in the future, may result in a loss of anticipated revenues. A loss of such revenues could materially
and adversely impact our results of operations and financial condition. In addition, because our (cid:47).S. Government contracts
time to time has resulted and, in the future, may result in a loss of anticipated revenues. A loss of such revenues could materially
time to time has resulted and, in the future, may result in a loss of anticipated revenues. A loss of such revenues could materially
and adversely impact our results of operations and financial condition. In addition, because our (cid:47).S. Government contracts
and adversely impact our results of operations and financial condition. In addition, because our (cid:47).S. Government contracts
and adversely impact our results of operations and financial condition. In addition, because our (cid:47).S. Government contracts
and adversely impact our results of operations and financial condition. In addition, because our (cid:47).S. Government contracts
and adversely impact our results of operations and financial condition. In addition, because our (cid:47).S. Government contracts
generally require us to continue to perform even if the (cid:47).S. Government is unable to make timely payments, we may need to
and adversely impact our results of operations and financial condition. In addition, because our (cid:47).S. Government contracts
and adversely impact our results of operations and financial condition. In addition, because our (cid:47).S. Government contracts
generally require us to continue to perform even if the (cid:47).S. Government is unable to make timely payments, we may need to
generally require us to continue to perform even if the (cid:47).S. Government is unable to make timely payments, we may need to
generally require us to continue to perform even if the (cid:47).S. Government is unable to make timely payments, we may need to
generally require us to continue to perform even if the (cid:47).S. Government is unable to make timely payments, we may need to
generally require us to continue to perform even if the (cid:47).S. Government is unable to make timely payments, we may need to
finance our continued performance for the impacted contracts from our other resources on an interim basis. An extended delay in
generally require us to continue to perform even if the (cid:47).S. Government is unable to make timely payments, we may need to
generally require us to continue to perform even if the (cid:47).S. Government is unable to make timely payments, we may need to
finance our continued performance for the impacted contracts from our other resources on an interim basis. An extended delay in
finance our continued performance for the impacted contracts from our other resources on an interim basis. An extended delay in
finance our continued performance for the impacted contracts from our other resources on an interim basis. An extended delay in
finance our continued performance for the impacted contracts from our other resources on an interim basis. An extended delay in
finance our continued performance for the impacted contracts from our other resources on an interim basis. An extended delay in
the timely payment by the (cid:47).S. Government could have a material adverse effect on our liquidity.
finance our continued performance for the impacted contracts from our other resources on an interim basis. An extended delay in
finance our continued performance for the impacted contracts from our other resources on an interim basis. An extended delay in
the timely payment by the (cid:47).S. Government could have a material adverse effect on our liquidity.
the timely payment by the (cid:47).S. Government could have a material adverse effect on our liquidity.
the timely payment by the (cid:47).S. Government could have a material adverse effect on our liquidity.
the timely payment by the (cid:47).S. Government could have a material adverse effect on our liquidity.
the timely payment by the (cid:47).S. Government could have a material adverse effect on our liquidity.
the timely payment by the (cid:47).S. Government could have a material adverse effect on our liquidity.
the timely payment by the (cid:47).S. Government could have a material adverse effect on our liquidity.
U.S. Government contracts can be terminated at any time and may contain other unfavorable provisions.
U.S. Government contracts can be terminated at any time and may contain other unfavorable provisions.
U.S. Government contracts can be terminated at any time and may contain other unfavorable provisions.
U.S. Government contracts can be terminated at any time and may contain other unfavorable provisions.
U.S. Government contracts can be terminated at any time and may contain other unfavorable provisions.
U.S. Government contracts can be terminated at any time and may contain other unfavorable provisions.
U.S. Government contracts can be terminated at any time and may contain other unfavorable provisions.
The (cid:47).S. Government typically can terminate or modify any of its contracts with us either for its convenience or if we default by
U.S. Government contracts can be terminated at any time and may contain other unfavorable provisions.
The (cid:47).S. Government typically can terminate or modify any of its contracts with us either for its convenience or if we default by
The (cid:47).S. Government typically can terminate or modify any of its contracts with us either for its convenience or if we default by
The (cid:47).S. Government typically can terminate or modify any of its contracts with us either for its convenience or if we default by
The (cid:47).S. Government typically can terminate or modify any of its contracts with us either for its convenience or if we default by
The (cid:47).S. Government typically can terminate or modify any of its contracts with us either for its convenience or if we default by
The (cid:47).S. Government typically can terminate or modify any of its contracts with us either for its convenience or if we default by
failing to perform under the terms of the applicable contract. In the event of termination for the (cid:47).S. Government(cid:88)s convenience,
The (cid:47).S. Government typically can terminate or modify any of its contracts with us either for its convenience or if we default by
failing to perform under the terms of the applicable contract. In the event of termination for the (cid:47).S. Government(cid:88)s convenience,
failing to perform under the terms of the applicable contract. In the event of termination for the (cid:47).S. Government(cid:88)s convenience,
failing to perform under the terms of the applicable contract. In the event of termination for the (cid:47).S. Government(cid:88)s convenience,
failing to perform under the terms of the applicable contract. In the event of termination for the (cid:47).S. Government(cid:88)s convenience,
failing to perform under the terms of the applicable contract. In the event of termination for the (cid:47).S. Government(cid:88)s convenience,
failing to perform under the terms of the applicable contract. In the event of termination for the (cid:47).S. Government(cid:88)s convenience,
contractors are generally protected by provisions covering reimbursement for costs incurred on the contracts and profit on those
failing to perform under the terms of the applicable contract. In the event of termination for the (cid:47).S. Government(cid:88)s convenience,
contractors are generally protected by provisions covering reimbursement for costs incurred on the contracts and profit on those
contractors are generally protected by provisions covering reimbursement for costs incurred on the contracts and profit on those
contractors are generally protected by provisions covering reimbursement for costs incurred on the contracts and profit on those
contractors are generally protected by provisions covering reimbursement for costs incurred on the contracts and profit on those
contractors are generally protected by provisions covering reimbursement for costs incurred on the contracts and profit on those
contractors are generally protected by provisions covering reimbursement for costs incurred on the contracts and profit on those
costs but not the anticipated profit that would have been earned had the contract been completed. A termination arising out of our
contractors are generally protected by provisions covering reimbursement for costs incurred on the contracts and profit on those
costs but not the anticipated profit that would have been earned had the contract been completed. A termination arising out of our
costs but not the anticipated profit that would have been earned had the contract been completed. A termination arising out of our
costs but not the anticipated profit that would have been earned had the contract been completed. A termination arising out of our
costs but not the anticipated profit that would have been earned had the contract been completed. A termination arising out of our
costs but not the anticipated profit that would have been earned had the contract been completed. A termination arising out of our
costs but not the anticipated profit that would have been earned had the contract been completed. A termination arising out of our
default for failure to perform could expose us to liability, including but not limited to, all costs incurred under the contract plus
costs but not the anticipated profit that would have been earned had the contract been completed. A termination arising out of our
default for failure to perform could expose us to liability, including but not limited to, all costs incurred under the contract plus
default for failure to perform could expose us to liability, including but not limited to, all costs incurred under the contract plus
default for failure to perform could expose us to liability, including but not limited to, all costs incurred under the contract plus
default for failure to perform could expose us to liability, including but not limited to, all costs incurred under the contract plus
default for failure to perform could expose us to liability, including but not limited to, all costs incurred under the contract plus
default for failure to perform could expose us to liability, including but not limited to, all costs incurred under the contract plus
potential liability for re-procurement costs in excess of the total original contract amount, less the value of work performed and
default for failure to perform could expose us to liability, including but not limited to, all costs incurred under the contract plus
potential liability for re-procurement costs in excess of the total original contract amount, less the value of work performed and
potential liability for re-procurement costs in excess of the total original contract amount, less the value of work performed and
potential liability for re-procurement costs in excess of the total original contract amount, less the value of work performed and
potential liability for re-procurement costs in excess of the total original contract amount, less the value of work performed and
potential liability for re-procurement costs in excess of the total original contract amount, less the value of work performed and
potential liability for re-procurement costs in excess of the total original contract amount, less the value of work performed and
accepted by the customer under the contract. Such an event could also have an adverse effect on our ability to compete for future
potential liability for re-procurement costs in excess of the total original contract amount, less the value of work performed and
accepted by the customer under the contract. Such an event could also have an adverse effect on our ability to compete for future
accepted by the customer under the contract. Such an event could also have an adverse effect on our ability to compete for future
accepted by the customer under the contract. Such an event could also have an adverse effect on our ability to compete for future
accepted by the customer under the contract. Such an event could also have an adverse effect on our ability to compete for future
accepted by the customer under the contract. Such an event could also have an adverse effect on our ability to compete for future
accepted by the customer under the contract. Such an event could also have an adverse effect on our ability to compete for future
contracts and orders. If any of our contracts are terminated by the (cid:47).S. Government whether for convenience or default, our
accepted by the customer under the contract. Such an event could also have an adverse effect on our ability to compete for future
contracts and orders. If any of our contracts are terminated by the (cid:47).S. Government whether for convenience or default, our
contracts and orders. If any of our contracts are terminated by the (cid:47).S. Government whether for convenience or default, our
contracts and orders. If any of our contracts are terminated by the (cid:47).S. Government whether for convenience or default, our
contracts and orders. If any of our contracts are terminated by the (cid:47).S. Government whether for convenience or default, our
contracts and orders. If any of our contracts are terminated by the (cid:47).S. Government whether for convenience or default, our
contracts and orders. If any of our contracts are terminated by the (cid:47).S. Government whether for convenience or default, our
backlog would be reduced by the expected value of the remaining work under such contracts. (cid:49)e also enter into (cid:86)fee for service(cid:87)
contracts and orders. If any of our contracts are terminated by the (cid:47).S. Government whether for convenience or default, our
backlog would be reduced by the expected value of the remaining work under such contracts. (cid:49)e also enter into (cid:86)fee for service(cid:87)
backlog would be reduced by the expected value of the remaining work under such contracts. (cid:49)e also enter into (cid:86)fee for service(cid:87)
backlog would be reduced by the expected value of the remaining work under such contracts. (cid:49)e also enter into (cid:86)fee for service(cid:87)
backlog would be reduced by the expected value of the remaining work under such contracts. (cid:49)e also enter into (cid:86)fee for service(cid:87)
backlog would be reduced by the expected value of the remaining work under such contracts. (cid:49)e also enter into (cid:86)fee for service(cid:87)
backlog would be reduced by the expected value of the remaining work under such contracts. (cid:49)e also enter into (cid:86)fee for service(cid:87)
contracts with the (cid:47).S. Government where we retain ownership of, and consequently the risk of loss on, aircraft and equipment
backlog would be reduced by the expected value of the remaining work under such contracts. (cid:49)e also enter into (cid:86)fee for service(cid:87)
contracts with the (cid:47).S. Government where we retain ownership of, and consequently the risk of loss on, aircraft and equipment
contracts with the (cid:47).S. Government where we retain ownership of, and consequently the risk of loss on, aircraft and equipment
contracts with the (cid:47).S. Government where we retain ownership of, and consequently the risk of loss on, aircraft and equipment
contracts with the (cid:47).S. Government where we retain ownership of, and consequently the risk of loss on, aircraft and equipment
contracts with the (cid:47).S. Government where we retain ownership of, and consequently the risk of loss on, aircraft and equipment
contracts with the (cid:47).S. Government where we retain ownership of, and consequently the risk of loss on, aircraft and equipment
contracts with the (cid:47).S. Government where we retain ownership of, and consequently the risk of loss on, aircraft and equipment
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supplied to perform under these contracts. Termination of these contracts could materially and adversely impact our results of
operations. On contracts for which we are teamed with others and are not the prime contractor, the (cid:47).S. Government could
terminate a prime contract under which we are a subcontractor, irrespective of the quality of our products and services as a
subcontractor. In addition, in the event that the (cid:47).S. Government is unable to make timely payments, failure to continue contract
performance places the contractor at risk of termination for default. Any such event could have a material adverse effect on our
cash flows, results of operations and financial condition.
(cid:8)s a U.S. Government contractor(cid:4) we are sub(cid:35)ect to procurement rules and regulations; our failure to comply with these rules
and regulations could adversely affect our business.
(cid:49)e must comply with and are affected by laws and regulations relating to the formation, administration and performance of (cid:47).S.
Government contracts. These laws and regulations, among other things, require certification and disclosure of all cost and pricing
data in connection with contract negotiation, define allowable and unallowable costs and otherwise govern our right to
reimbursement under certain cost-based (cid:47).S. Government contracts, and safeguard and restrict the use and dissemination of
classified information, covered defense information, and the exportation of certain products and technical data. New laws,
regulations or procurement requirements or changes to current ones (including, for example, regulations related to cybersecurity)
can significantly increase our costs, reducing our profitability. Our failure to comply with procurement regulations and
requirements could allow the (cid:47).S. Government to suspend or debar us from receiving new contracts for a period of time, reduce
the value of existing contracts, issue modifications to a contract, withhold cash on contract payments, and control and potentially
prohibit the export of our products, services and associated materials, any of which could negatively impact our results of
operations, financial condition or liquidity. A number of our (cid:47).S. Government contracts contain provisions that require us to
make disclosure to the Inspector General of the agency that is our customer if we have credible evidence that we have violated
(cid:47).S. criminal laws involving fraud, conflict of interest, or bribery(cid:26) the (cid:47).S. civil False Claims Act(cid:26) or received a significant
overpayment under a (cid:47).S. Government contract. Failure to properly and timely make disclosures under these provisions may
result in a termination for default or cause, suspension and/or debarment, and potential fines.
(cid:8)s a U.S. Government contractor(cid:4) our businesses and systems are sub(cid:35)ect to audit and review by the Defense (cid:10)ontract (cid:8)udit
(cid:8)gency (cid:2)D(cid:10)(cid:8)(cid:8)(cid:3) and the Defense (cid:10)ontract (cid:17)anagement (cid:8)gency (cid:2)D(cid:10)(cid:17)(cid:8)(cid:3).
(cid:49)e operate in a highly regulated environment and are routinely audited and reviewed by the (cid:47).S. Government and its agencies
such as the DCAA and DCMA. These agencies review our performance under contracts, our cost structure and our compliance
with laws and regulations applicable to (cid:47).S. Government contractors. The systems that are sub(cid:65)ect to review include, but are not
limited to, our accounting, estimating, material management and accounting, earned value management, purchasing and
government property systems. If an audit uncovers improper or illegal activities, we may be sub(cid:65)ect to civil and criminal penalties
and administrative sanctions that may include the termination of our contracts, forfeiture or reduction of profits, suspension or
reduction of payments, fines, and, under certain circumstances, suspension or debarment from future contracts for a period of
time. (cid:49)hether or not illegal activities are alleged, the (cid:47).S. Government also has the ability to decrease or withhold certain
payments when it deems systems sub(cid:65)ect to its review to be inadequate. These laws and regulations affect how we conduct
business with our government customers and, in some instances, impose added costs on our business.
(cid:19)ur profitability and cash flow varies depending on the mi(cid:49) of our government contracts and our ability to control costs(cid:8)
(cid:47)nder fixed-price contracts, generally we receive a fixed price irrespective of the actual costs we incur, and, consequently, we
absorb any costs in excess of the fixed price. Changes in underlying assumptions, circumstances or estimates used in developing
the pricing for such contracts can adversely affect our results of operations. Additionally, fixed-price contracts generally require
progress payments rather than performance-based payments which can delay our ability to recover a significant amount of costs
incurred on a contract and thus affect the timing of our cash flows. (cid:47)nder fixed-price incentive contracts, we share with the (cid:47).S.
Government cost underrun savings, which are derived from total cost being less than target costs(cid:26) we also share in cost overruns,
which occur when total costs exceed target costs up to a negotiated cost ceiling(cid:26) however, we are solely responsible for costs
above the ceiling. (cid:47)nder time and materials contracts, we are paid for labor at negotiated hourly billing rates and for certain
expenses. (cid:47)nder cost-reimbursement contracts that are sub(cid:65)ect to a contract-ceiling amount, we are reimbursed for allowable costs
and paid a fee, which may be fixed or performance-based(cid:26) however, if our costs exceed the contract ceiling or are not allowable
under the provisions of the contract or applicable regulations, we may not be able to obtain reimbursement for all such costs. Due
to the nature of our work under government contracts, we sometimes experience unforeseen technological or schedule difficulties
and cost overruns due to inflation, labor shortages, supply chain challenges and/or other factors. (cid:47)nder each type of contract, if
we are unable to control costs or if our initial cost estimates are incorrect, our cash flows, results of operations and financial
condition could be adversely affected. Cost overruns also may adversely affect our ability to sustain existing programs and obtain
future contract awards.
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10
(cid:23)he mar(cid:36)et for U.S. Government defense business is highly competitive(cid:4) and the competitive bidding process increases pricing
(cid:23)he mar(cid:36)et for U.S. Government defense business is highly competitive(cid:4) and the competitive bidding process increases pricing
(cid:23)he mar(cid:36)et for U.S. Government defense business is highly competitive(cid:4) and the competitive bidding process increases pricing
(cid:23)he mar(cid:36)et for U.S. Government defense business is highly competitive(cid:4) and the competitive bidding process increases pricing
(cid:23)he mar(cid:36)et for U.S. Government defense business is highly competitive(cid:4) and the competitive bidding process increases pricing
(cid:23)he mar(cid:36)et for U.S. Government defense business is highly competitive(cid:4) and the competitive bidding process increases pricing
pressure and cost which may affect our ability to win new contracts for ma(cid:35)or government programs.
pressure and cost which may affect our ability to win new contracts for ma(cid:35)or government programs.
pressure and cost which may affect our ability to win new contracts for ma(cid:35)or government programs.
pressure and cost which may affect our ability to win new contracts for ma(cid:35)or government programs.
pressure and cost which may affect our ability to win new contracts for ma(cid:35)or government programs.
pressure and cost which may affect our ability to win new contracts for ma(cid:35)or government programs.
Our defense businesses operate in highly competitive markets in which they participate in rigorous, increasingly competitive
Our defense businesses operate in highly competitive markets in which they participate in rigorous, increasingly competitive
Our defense businesses operate in highly competitive markets in which they participate in rigorous, increasingly competitive
Our defense businesses operate in highly competitive markets in which they participate in rigorous, increasingly competitive
Our defense businesses operate in highly competitive markets in which they participate in rigorous, increasingly competitive
Our defense businesses operate in highly competitive markets in which they participate in rigorous, increasingly competitive
bidding processes against other defense companies for (cid:47).S. government business. The (cid:47).S. Government relies upon competitive
bidding processes against other defense companies for (cid:47).S. government business. The (cid:47).S. Government relies upon competitive
bidding processes against other defense companies for (cid:47).S. government business. The (cid:47).S. Government relies upon competitive
bidding processes against other defense companies for (cid:47).S. government business. The (cid:47).S. Government relies upon competitive
bidding processes against other defense companies for (cid:47).S. government business. The (cid:47).S. Government relies upon competitive
bidding processes against other defense companies for (cid:47).S. government business. The (cid:47).S. Government relies upon competitive
contract award types, including indefinite-delivery, indefinite-quantity, other transaction agreements and multi-award contracts,
contract award types, including indefinite-delivery, indefinite-quantity, other transaction agreements and multi-award contracts,
contract award types, including indefinite-delivery, indefinite-quantity, other transaction agreements and multi-award contracts,
contract award types, including indefinite-delivery, indefinite-quantity, other transaction agreements and multi-award contracts,
contract award types, including indefinite-delivery, indefinite-quantity, other transaction agreements and multi-award contracts,
contract award types, including indefinite-delivery, indefinite-quantity, other transaction agreements and multi-award contracts,
which often create increased pricing pressure and increase our cost by requiring that we submit multiple bids or share in costs. In
which often create increased pricing pressure and increase our cost by requiring that we submit multiple bids or share in costs. In
which often create increased pricing pressure and increase our cost by requiring that we submit multiple bids or share in costs. In
which often create increased pricing pressure and increase our cost by requiring that we submit multiple bids or share in costs. In
which often create increased pricing pressure and increase our cost by requiring that we submit multiple bids or share in costs. In
which often create increased pricing pressure and increase our cost by requiring that we submit multiple bids or share in costs. In
addition, multi-award contracts increase our cost as they require that we make sustained efforts to compete for task orders and
addition, multi-award contracts increase our cost as they require that we make sustained efforts to compete for task orders and
addition, multi-award contracts increase our cost as they require that we make sustained efforts to compete for task orders and
addition, multi-award contracts increase our cost as they require that we make sustained efforts to compete for task orders and
addition, multi-award contracts increase our cost as they require that we make sustained efforts to compete for task orders and
addition, multi-award contracts increase our cost as they require that we make sustained efforts to compete for task orders and
delivery orders under the contract. Further, the competitive bidding process is costly, in some instances requires significant
delivery orders under the contract. Further, the competitive bidding process is costly, in some instances requires significant
delivery orders under the contract. Further, the competitive bidding process is costly, in some instances requires significant
delivery orders under the contract. Further, the competitive bidding process is costly, in some instances requires significant
delivery orders under the contract. Further, the competitive bidding process is costly, in some instances requires significant
delivery orders under the contract. Further, the competitive bidding process is costly, in some instances requires significant
research and development and/or engineering efforts to participate and demands employee and managerial time to prepare bids
research and development and/or engineering efforts to participate and demands employee and managerial time to prepare bids
research and development and/or engineering efforts to participate and demands employee and managerial time to prepare bids
research and development and/or engineering efforts to participate and demands employee and managerial time to prepare bids
research and development and/or engineering efforts to participate and demands employee and managerial time to prepare bids
research and development and/or engineering efforts to participate and demands employee and managerial time to prepare bids
and proposals for contracts that may not be awarded to us or may be split among competitors.
and proposals for contracts that may not be awarded to us or may be split among competitors.
and proposals for contracts that may not be awarded to us or may be split among competitors.
and proposals for contracts that may not be awarded to us or may be split among competitors.
and proposals for contracts that may not be awarded to us or may be split among competitors.
and proposals for contracts that may not be awarded to us or may be split among competitors.
Despite our best efforts, the (cid:47).S. Government customer sometimes chooses competitor(cid:6)s offerings over our offerings and there
Despite our best efforts, the (cid:47).S. Government customer sometimes chooses competitor(cid:6)s offerings over our offerings and there
Despite our best efforts, the (cid:47).S. Government customer sometimes chooses competitor(cid:6)s offerings over our offerings and there
Despite our best efforts, the (cid:47).S. Government customer sometimes chooses competitor(cid:6)s offerings over our offerings and there
Despite our best efforts, the (cid:47).S. Government customer sometimes chooses competitor(cid:6)s offerings over our offerings and there
Despite our best efforts, the (cid:47).S. Government customer sometimes chooses competitor(cid:6)s offerings over our offerings and there
can be no assurance that our businesses will be selected for government programs with significant long-term revenues. Even if we
can be no assurance that our businesses will be selected for government programs with significant long-term revenues. Even if we
can be no assurance that our businesses will be selected for government programs with significant long-term revenues. Even if we
can be no assurance that our businesses will be selected for government programs with significant long-term revenues. Even if we
can be no assurance that our businesses will be selected for government programs with significant long-term revenues. Even if we
can be no assurance that our businesses will be selected for government programs with significant long-term revenues. Even if we
are successful in obtaining an award, we have in the past and may in the future encounter bid protests from unsuccessful bidders
are successful in obtaining an award, we have in the past and may in the future encounter bid protests from unsuccessful bidders
are successful in obtaining an award, we have in the past and may in the future encounter bid protests from unsuccessful bidders
are successful in obtaining an award, we have in the past and may in the future encounter bid protests from unsuccessful bidders
are successful in obtaining an award, we have in the past and may in the future encounter bid protests from unsuccessful bidders
are successful in obtaining an award, we have in the past and may in the future encounter bid protests from unsuccessful bidders
on new program awards. Bid protests could result in significant expenses associated with (cid:65)ustifying the selection or due to
on new program awards. Bid protests could result in significant expenses associated with (cid:65)ustifying the selection or due to
on new program awards. Bid protests could result in significant expenses associated with (cid:65)ustifying the selection or due to
on new program awards. Bid protests could result in significant expenses associated with (cid:65)ustifying the selection or due to
on new program awards. Bid protests could result in significant expenses associated with (cid:65)ustifying the selection or due to
on new program awards. Bid protests could result in significant expenses associated with (cid:65)ustifying the selection or due to
potential program delays and could result in contract modifications that alter schedule or scope or even cause the loss of the
potential program delays and could result in contract modifications that alter schedule or scope or even cause the loss of the
potential program delays and could result in contract modifications that alter schedule or scope or even cause the loss of the
potential program delays and could result in contract modifications that alter schedule or scope or even cause the loss of the
potential program delays and could result in contract modifications that alter schedule or scope or even cause the loss of the
potential program delays and could result in contract modifications that alter schedule or scope or even cause the loss of the
contract award. Even when a bid protest does not result in the loss of a contract award, the resolution could postpone
contract award. Even when a bid protest does not result in the loss of a contract award, the resolution could postpone
contract award. Even when a bid protest does not result in the loss of a contract award, the resolution could postpone
contract award. Even when a bid protest does not result in the loss of a contract award, the resolution could postpone
contract award. Even when a bid protest does not result in the loss of a contract award, the resolution could postpone
contract award. Even when a bid protest does not result in the loss of a contract award, the resolution could postpone
commencement of contract activity, resulting in additional cost and delay in the recognition of revenue and profit. If we are
commencement of contract activity, resulting in additional cost and delay in the recognition of revenue and profit. If we are
commencement of contract activity, resulting in additional cost and delay in the recognition of revenue and profit. If we are
commencement of contract activity, resulting in additional cost and delay in the recognition of revenue and profit. If we are
commencement of contract activity, resulting in additional cost and delay in the recognition of revenue and profit. If we are
commencement of contract activity, resulting in additional cost and delay in the recognition of revenue and profit. If we are
unable to continue to compete successfully against our current or future competitors, do not win government programs with
unable to continue to compete successfully against our current or future competitors, do not win government programs with
unable to continue to compete successfully against our current or future competitors, do not win government programs with
unable to continue to compete successfully against our current or future competitors, do not win government programs with
unable to continue to compete successfully against our current or future competitors, do not win government programs with
unable to continue to compete successfully against our current or future competitors, do not win government programs with
significant long-term revenues or do not prevail in bid protests, we may experience declines in future revenues and profitability,
significant long-term revenues or do not prevail in bid protests, we may experience declines in future revenues and profitability,
significant long-term revenues or do not prevail in bid protests, we may experience declines in future revenues and profitability,
significant long-term revenues or do not prevail in bid protests, we may experience declines in future revenues and profitability,
significant long-term revenues or do not prevail in bid protests, we may experience declines in future revenues and profitability,
significant long-term revenues or do not prevail in bid protests, we may experience declines in future revenues and profitability,
which could have a material adverse effect on our financial position, results of operations or cash flows.
which could have a material adverse effect on our financial position, results of operations or cash flows.
which could have a material adverse effect on our financial position, results of operations or cash flows.
which could have a material adverse effect on our financial position, results of operations or cash flows.
which could have a material adverse effect on our financial position, results of operations or cash flows.
which could have a material adverse effect on our financial position, results of operations or cash flows.
(cid:38)t(cid:64)ate(cid:53)i(cid:49)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:38)t(cid:64)ate(cid:53)i(cid:49)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:38)t(cid:64)ate(cid:53)i(cid:49)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:38)t(cid:64)ate(cid:53)i(cid:49)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:38)t(cid:64)ate(cid:53)i(cid:49)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:38)t(cid:64)ate(cid:53)i(cid:49)(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
Developing new products and technologies entails significant ris(cid:36)s and uncertainties.
Developing new products and technologies entails significant ris(cid:36)s and uncertainties.
Developing new products and technologies entails significant ris(cid:36)s and uncertainties.
Developing new products and technologies entails significant ris(cid:36)s and uncertainties.
Developing new products and technologies entails significant ris(cid:36)s and uncertainties.
Developing new products and technologies entails significant ris(cid:36)s and uncertainties.
To continue to grow our revenues and segment profit, we must successfully develop new products and technologies or modify our
To continue to grow our revenues and segment profit, we must successfully develop new products and technologies or modify our
To continue to grow our revenues and segment profit, we must successfully develop new products and technologies or modify our
To continue to grow our revenues and segment profit, we must successfully develop new products and technologies or modify our
To continue to grow our revenues and segment profit, we must successfully develop new products and technologies or modify our
To continue to grow our revenues and segment profit, we must successfully develop new products and technologies or modify our
existing products and technologies for our current and future markets. Our future performance depends, in part, on our ability to
existing products and technologies for our current and future markets. Our future performance depends, in part, on our ability to
existing products and technologies for our current and future markets. Our future performance depends, in part, on our ability to
existing products and technologies for our current and future markets. Our future performance depends, in part, on our ability to
existing products and technologies for our current and future markets. Our future performance depends, in part, on our ability to
existing products and technologies for our current and future markets. Our future performance depends, in part, on our ability to
identify emerging technological trends and customer requirements and to develop and maintain competitive products and services.
identify emerging technological trends and customer requirements and to develop and maintain competitive products and services.
identify emerging technological trends and customer requirements and to develop and maintain competitive products and services.
identify emerging technological trends and customer requirements and to develop and maintain competitive products and services.
identify emerging technological trends and customer requirements and to develop and maintain competitive products and services.
identify emerging technological trends and customer requirements and to develop and maintain competitive products and services.
Delays or cost overruns in the development and acceptance of new products or certification of new aircraft and other products
Delays or cost overruns in the development and acceptance of new products or certification of new aircraft and other products
Delays or cost overruns in the development and acceptance of new products or certification of new aircraft and other products
Delays or cost overruns in the development and acceptance of new products or certification of new aircraft and other products
Delays or cost overruns in the development and acceptance of new products or certification of new aircraft and other products
Delays or cost overruns in the development and acceptance of new products or certification of new aircraft and other products
occur from time to time and could adversely affect our results of operations. These delays or cost overruns could be caused by
occur from time to time and could adversely affect our results of operations. These delays or cost overruns could be caused by
occur from time to time and could adversely affect our results of operations. These delays or cost overruns could be caused by
occur from time to time and could adversely affect our results of operations. These delays or cost overruns could be caused by
occur from time to time and could adversely affect our results of operations. These delays or cost overruns could be caused by
occur from time to time and could adversely affect our results of operations. These delays or cost overruns could be caused by
unanticipated technological hurdles, production changes to meet customer demands, unanticipated difficulties in obtaining
unanticipated technological hurdles, production changes to meet customer demands, unanticipated difficulties in obtaining
unanticipated technological hurdles, production changes to meet customer demands, unanticipated difficulties in obtaining
unanticipated technological hurdles, production changes to meet customer demands, unanticipated difficulties in obtaining
unanticipated technological hurdles, production changes to meet customer demands, unanticipated difficulties in obtaining
unanticipated technological hurdles, production changes to meet customer demands, unanticipated difficulties in obtaining
required regulatory certifications of new aircraft or other products, or failure on the part of our suppliers to deliver components as
required regulatory certifications of new aircraft or other products, or failure on the part of our suppliers to deliver components as
required regulatory certifications of new aircraft or other products, or failure on the part of our suppliers to deliver components as
required regulatory certifications of new aircraft or other products, or failure on the part of our suppliers to deliver components as
required regulatory certifications of new aircraft or other products, or failure on the part of our suppliers to deliver components as
required regulatory certifications of new aircraft or other products, or failure on the part of our suppliers to deliver components as
agreed. (cid:49)e also could be adversely affected if our research and development efforts are less successful than expected or if these
agreed. (cid:49)e also could be adversely affected if our research and development efforts are less successful than expected or if these
agreed. (cid:49)e also could be adversely affected if our research and development efforts are less successful than expected or if these
agreed. (cid:49)e also could be adversely affected if our research and development efforts are less successful than expected or if these
agreed. (cid:49)e also could be adversely affected if our research and development efforts are less successful than expected or if these
agreed. (cid:49)e also could be adversely affected if our research and development efforts are less successful than expected or if these
efforts require significantly more funding to achieve our goals than anticipated. In particular, the success of Textron eAviation
efforts require significantly more funding to achieve our goals than anticipated. In particular, the success of Textron eAviation
efforts require significantly more funding to achieve our goals than anticipated. In particular, the success of Textron eAviation
efforts require significantly more funding to achieve our goals than anticipated. In particular, the success of Textron eAviation
efforts require significantly more funding to achieve our goals than anticipated. In particular, the success of Textron eAviation
efforts require significantly more funding to achieve our goals than anticipated. In particular, the success of Textron eAviation
depends in large part, on our ability to develop and certify new electric and hybrid electric aircraft products in order to achieve our
depends in large part, on our ability to develop and certify new electric and hybrid electric aircraft products in order to achieve our
depends in large part, on our ability to develop and certify new electric and hybrid electric aircraft products in order to achieve our
depends in large part, on our ability to develop and certify new electric and hybrid electric aircraft products in order to achieve our
depends in large part, on our ability to develop and certify new electric and hybrid electric aircraft products in order to achieve our
depends in large part, on our ability to develop and certify new electric and hybrid electric aircraft products in order to achieve our
long-term strategy of offering a family of sustainable aircraft for urban air mobility, general aviation, cargo and special mission
long-term strategy of offering a family of sustainable aircraft for urban air mobility, general aviation, cargo and special mission
long-term strategy of offering a family of sustainable aircraft for urban air mobility, general aviation, cargo and special mission
long-term strategy of offering a family of sustainable aircraft for urban air mobility, general aviation, cargo and special mission
long-term strategy of offering a family of sustainable aircraft for urban air mobility, general aviation, cargo and special mission
long-term strategy of offering a family of sustainable aircraft for urban air mobility, general aviation, cargo and special mission
roles. In addition, new products and technologies could generate unanticipated safety or other concerns resulting in expanded
roles. In addition, new products and technologies could generate unanticipated safety or other concerns resulting in expanded
roles. In addition, new products and technologies could generate unanticipated safety or other concerns resulting in expanded
roles. In addition, new products and technologies could generate unanticipated safety or other concerns resulting in expanded
roles. In addition, new products and technologies could generate unanticipated safety or other concerns resulting in expanded
roles. In addition, new products and technologies could generate unanticipated safety or other concerns resulting in expanded
product liability risks, potential product recalls and other regulatory issues that could have an adverse impact on us. Furthermore,
product liability risks, potential product recalls and other regulatory issues that could have an adverse impact on us. Furthermore,
product liability risks, potential product recalls and other regulatory issues that could have an adverse impact on us. Furthermore,
product liability risks, potential product recalls and other regulatory issues that could have an adverse impact on us. Furthermore,
product liability risks, potential product recalls and other regulatory issues that could have an adverse impact on us. Furthermore,
product liability risks, potential product recalls and other regulatory issues that could have an adverse impact on us. Furthermore,
because of the lengthy research and development cycle involved in bringing certain of our products to market, we cannot predict
because of the lengthy research and development cycle involved in bringing certain of our products to market, we cannot predict
because of the lengthy research and development cycle involved in bringing certain of our products to market, we cannot predict
because of the lengthy research and development cycle involved in bringing certain of our products to market, we cannot predict
because of the lengthy research and development cycle involved in bringing certain of our products to market, we cannot predict
because of the lengthy research and development cycle involved in bringing certain of our products to market, we cannot predict
the economic conditions that will exist when any new product is complete, and the market for our product offerings does not
the economic conditions that will exist when any new product is complete, and the market for our product offerings does not
the economic conditions that will exist when any new product is complete, and the market for our product offerings does not
the economic conditions that will exist when any new product is complete, and the market for our product offerings does not
the economic conditions that will exist when any new product is complete, and the market for our product offerings does not
the economic conditions that will exist when any new product is complete, and the market for our product offerings does not
always develop or continue to expand as we anticipate.
always develop or continue to expand as we anticipate.
always develop or continue to expand as we anticipate.
always develop or continue to expand as we anticipate.
always develop or continue to expand as we anticipate.
always develop or continue to expand as we anticipate.
A reduction in capital spending in the aerospace or defense industries could have a significant effect on the demand for new
A reduction in capital spending in the aerospace or defense industries could have a significant effect on the demand for new
A reduction in capital spending in the aerospace or defense industries could have a significant effect on the demand for new
A reduction in capital spending in the aerospace or defense industries could have a significant effect on the demand for new
A reduction in capital spending in the aerospace or defense industries could have a significant effect on the demand for new
A reduction in capital spending in the aerospace or defense industries could have a significant effect on the demand for new
products and technologies under development, which could have an adverse effect on our financial condition and results of
products and technologies under development, which could have an adverse effect on our financial condition and results of
products and technologies under development, which could have an adverse effect on our financial condition and results of
products and technologies under development, which could have an adverse effect on our financial condition and results of
products and technologies under development, which could have an adverse effect on our financial condition and results of
products and technologies under development, which could have an adverse effect on our financial condition and results of
operations. In addition, our investments in equipment or technology that we believe will enable us to obtain future contracts for
operations. In addition, our investments in equipment or technology that we believe will enable us to obtain future contracts for
operations. In addition, our investments in equipment or technology that we believe will enable us to obtain future contracts for
operations. In addition, our investments in equipment or technology that we believe will enable us to obtain future contracts for
operations. In addition, our investments in equipment or technology that we believe will enable us to obtain future contracts for
operations. In addition, our investments in equipment or technology that we believe will enable us to obtain future contracts for
our (cid:47).S. Government or other customers may not result in contracts or revenues sufficient to offset such investment. (cid:49)e cannot
our (cid:47).S. Government or other customers may not result in contracts or revenues sufficient to offset such investment. (cid:49)e cannot
our (cid:47).S. Government or other customers may not result in contracts or revenues sufficient to offset such investment. (cid:49)e cannot
our (cid:47).S. Government or other customers may not result in contracts or revenues sufficient to offset such investment. (cid:49)e cannot
our (cid:47).S. Government or other customers may not result in contracts or revenues sufficient to offset such investment. (cid:49)e cannot
our (cid:47).S. Government or other customers may not result in contracts or revenues sufficient to offset such investment. (cid:49)e cannot
be sure that our competitors will not develop competing technologies which gain superior market acceptance compared to our
be sure that our competitors will not develop competing technologies which gain superior market acceptance compared to our
be sure that our competitors will not develop competing technologies which gain superior market acceptance compared to our
be sure that our competitors will not develop competing technologies which gain superior market acceptance compared to our
be sure that our competitors will not develop competing technologies which gain superior market acceptance compared to our
be sure that our competitors will not develop competing technologies which gain superior market acceptance compared to our
products. A significant failure in our new product development efforts, a substantial change to schedule, a material change in an
products. A significant failure in our new product development efforts, a substantial change to schedule, a material change in an
products. A significant failure in our new product development efforts, a substantial change to schedule, a material change in an
products. A significant failure in our new product development efforts, a substantial change to schedule, a material change in an
products. A significant failure in our new product development efforts, a substantial change to schedule, a material change in an
products. A significant failure in our new product development efforts, a substantial change to schedule, a material change in an
anticipated market or the failure of our products or services to achieve customer acceptance relative to our competitors(cid:88) products
anticipated market or the failure of our products or services to achieve customer acceptance relative to our competitors(cid:88) products
anticipated market or the failure of our products or services to achieve customer acceptance relative to our competitors(cid:88) products
anticipated market or the failure of our products or services to achieve customer acceptance relative to our competitors(cid:88) products
anticipated market or the failure of our products or services to achieve customer acceptance relative to our competitors(cid:88) products
anticipated market or the failure of our products or services to achieve customer acceptance relative to our competitors(cid:88) products
or services, could have an adverse effect on our financial condition and results of operations.
or services, could have an adverse effect on our financial condition and results of operations.
or services, could have an adverse effect on our financial condition and results of operations.
or services, could have an adverse effect on our financial condition and results of operations.
or services, could have an adverse effect on our financial condition and results of operations.
or services, could have an adverse effect on our financial condition and results of operations.
We have made and may continue to ma(cid:36)e ac(cid:42)uisitions that increase the ris(cid:36)s of our business.
We have made and may continue to ma(cid:36)e ac(cid:42)uisitions that increase the ris(cid:36)s of our business.
We have made and may continue to ma(cid:36)e ac(cid:42)uisitions that increase the ris(cid:36)s of our business.
We have made and may continue to ma(cid:36)e ac(cid:42)uisitions that increase the ris(cid:36)s of our business.
We have made and may continue to ma(cid:36)e ac(cid:42)uisitions that increase the ris(cid:36)s of our business.
We have made and may continue to ma(cid:36)e ac(cid:42)uisitions that increase the ris(cid:36)s of our business.
(cid:49)e enter into acquisitions with the intention of expanding our business and enhancing shareholder value. Acquisitions involve
(cid:49)e enter into acquisitions with the intention of expanding our business and enhancing shareholder value. Acquisitions involve
(cid:49)e enter into acquisitions with the intention of expanding our business and enhancing shareholder value. Acquisitions involve
(cid:49)e enter into acquisitions with the intention of expanding our business and enhancing shareholder value. Acquisitions involve
(cid:49)e enter into acquisitions with the intention of expanding our business and enhancing shareholder value. Acquisitions involve
(cid:49)e enter into acquisitions with the intention of expanding our business and enhancing shareholder value. Acquisitions involve
risks and uncertainties that, in some cases, have resulted, and, in the future, could result in our not achieving expected benefits.
risks and uncertainties that, in some cases, have resulted, and, in the future, could result in our not achieving expected benefits.
risks and uncertainties that, in some cases, have resulted, and, in the future, could result in our not achieving expected benefits.
risks and uncertainties that, in some cases, have resulted, and, in the future, could result in our not achieving expected benefits.
risks and uncertainties that, in some cases, have resulted, and, in the future, could result in our not achieving expected benefits.
risks and uncertainties that, in some cases, have resulted, and, in the future, could result in our not achieving expected benefits.
Such risks include difficulties in integrating newly acquired businesses and operations in an efficient and cost-effective manner(cid:26)
Such risks include difficulties in integrating newly acquired businesses and operations in an efficient and cost-effective manner(cid:26)
Such risks include difficulties in integrating newly acquired businesses and operations in an efficient and cost-effective manner(cid:26)
Such risks include difficulties in integrating newly acquired businesses and operations in an efficient and cost-effective manner(cid:26)
Such risks include difficulties in integrating newly acquired businesses and operations in an efficient and cost-effective manner(cid:26)
Such risks include difficulties in integrating newly acquired businesses and operations in an efficient and cost-effective manner(cid:26)
challenges in achieving expected strategic ob(cid:65)ectives, cost savings and other benefits(cid:26) the risk that the acquired businesses(cid:88)
challenges in achieving expected strategic ob(cid:65)ectives, cost savings and other benefits(cid:26) the risk that the acquired businesses(cid:88)
challenges in achieving expected strategic ob(cid:65)ectives, cost savings and other benefits(cid:26) the risk that the acquired businesses(cid:88)
challenges in achieving expected strategic ob(cid:65)ectives, cost savings and other benefits(cid:26) the risk that the acquired businesses(cid:88)
challenges in achieving expected strategic ob(cid:65)ectives, cost savings and other benefits(cid:26) the risk that the acquired businesses(cid:88)
challenges in achieving expected strategic ob(cid:65)ectives, cost savings and other benefits(cid:26) the risk that the acquired businesses(cid:88)
markets do not evolve as anticipated and that the acquired businesses(cid:88) products and technologies do not prove to be those needed
markets do not evolve as anticipated and that the acquired businesses(cid:88) products and technologies do not prove to be those needed
markets do not evolve as anticipated and that the acquired businesses(cid:88) products and technologies do not prove to be those needed
markets do not evolve as anticipated and that the acquired businesses(cid:88) products and technologies do not prove to be those needed
markets do not evolve as anticipated and that the acquired businesses(cid:88) products and technologies do not prove to be those needed
markets do not evolve as anticipated and that the acquired businesses(cid:88) products and technologies do not prove to be those needed
to be successful in those markets(cid:26) the risk that our due diligence reviews of the acquired business do not identify or adequately
to be successful in those markets(cid:26) the risk that our due diligence reviews of the acquired business do not identify or adequately
to be successful in those markets(cid:26) the risk that our due diligence reviews of the acquired business do not identify or adequately
to be successful in those markets(cid:26) the risk that our due diligence reviews of the acquired business do not identify or adequately
to be successful in those markets(cid:26) the risk that our due diligence reviews of the acquired business do not identify or adequately
to be successful in those markets(cid:26) the risk that our due diligence reviews of the acquired business do not identify or adequately
assess all of the material issues which impact valuation of the business or result in costs or liabilities in excess of what we
assess all of the material issues which impact valuation of the business or result in costs or liabilities in excess of what we
assess all of the material issues which impact valuation of the business or result in costs or liabilities in excess of what we
assess all of the material issues which impact valuation of the business or result in costs or liabilities in excess of what we
assess all of the material issues which impact valuation of the business or result in costs or liabilities in excess of what we
assess all of the material issues which impact valuation of the business or result in costs or liabilities in excess of what we
anticipated(cid:26) the risk that we pay a purchase price that exceeds what the future results of operations would have merited(cid:26) the risk
anticipated(cid:26) the risk that we pay a purchase price that exceeds what the future results of operations would have merited(cid:26) the risk
anticipated(cid:26) the risk that we pay a purchase price that exceeds what the future results of operations would have merited(cid:26) the risk
anticipated(cid:26) the risk that we pay a purchase price that exceeds what the future results of operations would have merited(cid:26) the risk
anticipated(cid:26) the risk that we pay a purchase price that exceeds what the future results of operations would have merited(cid:26) the risk
anticipated(cid:26) the risk that we pay a purchase price that exceeds what the future results of operations would have merited(cid:26) the risk
Textron 2023 Annual Report 11
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that the acquired business may have significant internal control deficiencies or exposure to regulatory sanctions(cid:26) and the potential
loss of key customers, suppliers and employees of the acquired businesses.
(cid:21)(cid:67)(cid:65)i(cid:60)e(cid:65)(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)(cid:62)e(cid:64)ati(cid:61)(cid:60)al(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:21)is(cid:36)s arising from uncertainty in global macroeconomic conditions may harm our business.
(cid:49)e are sensitive to global macroeconomic conditions. Negative macroeconomic factors may have an adverse effect on our
business, results of operations and financial condition, as well as on our distributors, customers and suppliers, and on activity in
many of the industries and markets we serve. (cid:49)e cannot predict changes in worldwide or regional economic or political
conditions and government policies as such factors are highly volatile and beyond our control. If current macroeconomic
pressures, including from inflation and labor and supply chain challenges, continue or if global macroeconomic conditions
deteriorate and remain at depressed levels for extended periods, our business, results of operations and financial condition could
be materially adversely affected.
(cid:19)ur business could be negatively impacted by cybersecurity threats and other disruptions.
Our information technology (IT) and related systems are critical to the efficient operation of our business and essential to our
ability to perform day to day processes. As a (cid:47).S. defense contractor, we face persistent security threats, including threats to our
IT infrastructure and unlawful attempts to gain access to our information via phishing/malware campaigns and other cyberattack
methods, as well as threats to the physical security of our facilities and employees, as do our customers, suppliers, subcontractors
and (cid:65)oint venture partners. Attempts to gain unauthori(cid:81)ed access to our confidential, classified or otherwise proprietary
information or that of our employees or customers, as well as other security breaches, are persistent, continue to evolve and
require highly skilled IT resources.
(cid:49)hile we have experienced cybersecurity attacks, such attacks have not resulted in a material information security breach and we
have not suffered any material losses relating to such attacks. Due to the evolving nature of security threats, the possibility of
future material incidents cannot be completely mitigated, and we may not always be successful in timely detecting, reporting or
responding to cyber incidents. Future attacks or breaches of data security, whether of our systems or the systems of our service
providers or other third parties who may have access to our data for business purposes, could disrupt our operations, cause the
loss of business information or compromise confidential information, exposing us to liability or regulatory action. Such an
incident also could require significant management attention and resources, increase costs that may not be covered by insurance,
and result in reputational damage, potentially adversely affecting our competitiveness and our results of operations. Products and
services that we provide to our customers may themselves be sub(cid:65)ect to cyberthreats which may not be detected or effectively
mitigated, resulting in potential losses that could adversely affect us and our customers. In addition, our customers, including the
(cid:47).S. Government, are increasingly requiring cybersecurity protections and mandating cybersecurity standards in our products, and
we may incur additional costs to comply with such demands.
(cid:10)hallenges faced by our subcontractors or suppliers could materially and adversely affect our performance.
(cid:49)e rely on other companies to provide raw materials, ma(cid:65)or components and subsystems for our products. Subcontractors also
perform services that we provide to our customers in certain circumstances. (cid:49)e depend on these suppliers and subcontractors to
meet our contractual obligations to our customers and conduct our operations. Our ability to meet our obligations to our customers
could be adversely affected if suppliers or subcontractors do not provide the agreed-upon supplies or perform the agreed-upon
services in compliance with customer requirements and in a timely and cost-effective manner. Likewise, the quality of our
products could be adversely impacted if companies to whom we delegate manufacture of ma(cid:65)or components or subsystems for our
products, or from whom we acquire such items, do not provide components or subsystems which meet required specifications and
perform to our and our customers(cid:88) expectations. Our businesses are experiencing and may continue to experience manufacturing
inefficiencies and production delays as a result of shortages and delays of critical components for our products and other issues
related to our direct or indirect suppliers. Suppliers may be unable to quickly recover from natural disasters, acts of war, and other
events beyond their control and may be sub(cid:65)ect to additional risks such as material or labor shortages, inflationary conditions or
other financial problems that limit their ability to conduct their operations, resulting in their inability to perform as anticipated. As
a result, we have experienced, and may continue to experience, cost increases for certain materials and components which, along
with increased energy and shipping costs and other inflationary pressures, have negatively impacted, and may continue to
negatively impact, our profitability. The risk of these adverse effects would likely be greater in circumstances where we rely on
only one or two subcontractors or suppliers for a particular raw material, product or service. In particular, in the aircraft industry,
most vendor parts are certified by the regulatory agencies as part of the overall Type Certificate for the aircraft being produced by
the manufacturer. If a vendor does not or cannot supply its parts, then the manufacturer(cid:88)s production line may be stopped until the
manufacturer can design, manufacture and certify a similar part itself or identify and certify another similar vendor(cid:88)s part,
resulting in significant delays in the completion of aircraft. Such events may adversely affect our financial results, damage our
reputation and relationships with our customers, and result in regulatory actions and/or litigation.
12 Textron 2023 Annual Report
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We are sub(cid:35)ect to the ris(cid:36)s of doing business in foreign countries that could adversely impact our business.
During 2023, we derived approximately 32(cid:4) of our revenues from international business, including (cid:47).S. exports. Conducting
business internationally exposes us to additional risks than if we conducted our business solely within the (cid:47).S. (cid:49)e maintain
manufacturing facilities, service centers, supply centers and other facilities worldwide, including in various emerging market
countries. Risks related to international operations include import, export, economic sanctions and other trade restrictions(cid:26)
changing (cid:47).S. and foreign procurement policies and practices(cid:26) changes in international trade policies, including higher tariffs on
imported goods and materials and renegotiation of free trade agreements(cid:26) potential retaliatory tariffs imposed by foreign countries
against (cid:47).S. goods(cid:26) impacts on our non-(cid:47).S. suppliers and customers due to acts of war or terrorism occurring internationally(cid:26)
restrictions on technology transfer(cid:26) difficulties in protecting intellectual property(cid:26) increasing complexity of employment and
environmental, health and safety regulations(cid:26) foreign investment laws(cid:26) exchange controls(cid:26) repatriation of earnings or cash
settlement challenges(cid:26) compliance with increasingly rigorous data privacy and protection laws(cid:26) competition from foreign and
multinational firms with home country advantages(cid:26) economic and government instability(cid:26) acts of industrial espionage, acts of war
and terrorism and related safety concerns. The impact of any one or more of these or other factors could adversely affect our
business, financial condition or operating results.
Additionally, some international government customers require contractors to agree to specific in-country purchases, technology
transfers, manufacturing agreements or financial support arrangements, known as offsets, as a condition for a contract award.
These contracts generally extend over several years and may include penalties if we fail to perform in accordance with the offset
requirements which are often sub(cid:65)ective. (cid:49)e also are exposed to risks associated with using foreign representatives and
consultants for international sales and operations and teaming with international subcontractors and suppliers in connection with
international programs. In many foreign countries, particularly in those with developing economies, it is common to engage in
business practices that are prohibited by laws and regulations applicable to us, such as the Foreign Corrupt Practices Act.
Although we maintain policies and procedures designed to facilitate compliance with these laws, a violation of such laws by any
of our international representatives, consultants, (cid:65)oint ventures, business partners, subcontractors or suppliers, even if prohibited
by our policies, could have an adverse effect on our business and reputation.
(cid:18)atural disasters or other events outside of our control have disrupted and may in the future disrupt our operations(cid:4) adversely
affect our results of operations and financial condition(cid:4) and may not be fully covered by insurance.
Natural disasters, including hurricanes, fires, tornados, floods and other forms of severe weather, the intensity and frequency of
which are being exacerbated by climate change, along with other impacts of climate change, such as rising sea waters, as well as
other events outside of our control including public health crises, pandemics, power outages and industrial accidents, have in the
past and could in the future disrupt our operations and adversely affect our business. Any of these events could result in physical
damage to and/or complete or partial closure of one or more of our facilities and temporary or long-term disruption of our
operations or the operations of our suppliers by causing business interruptions or by impacting the availability and cost of
materials needed for manufacturing or otherwise impacting our ability to deliver products and services to our customers. Existing
insurance arrangements may not provide full protection for the costs that may arise from such events. The occurrence of any of
these events could materially increase our costs and expenses and have a material adverse effect on our business, financial
condition and results of operations.
(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:37)i(cid:65)(cid:57)(cid:65)
(cid:15)f our (cid:13)inance segment has difficulty collecting on its finance receivables(cid:4) our financial performance could be adversely
affected.
The financial performance of our Finance segment depends on the quality of loans, leases and other assets in its portfolio.
Portfolio quality can be adversely affected by several factors, including finance receivable underwriting procedures, collateral
value, geographic or industry concentrations, and the effect of general economic conditions. In addition, a substantial number of
the originations in our finance receivable portfolio are cross-border transactions for aircraft sold outside of the (cid:47).S. Cross-border
transactions present additional challenges and risks in the event of borrower default, which can result in difficulty or delay in
collecting on the related finance receivables. If our Finance segment has difficulty successfully collecting on its finance receivable
portfolio, our cash flow, results of operations and financial condition could be adversely affected.
We periodically need to obtain financing and such financing may not be available to us on satisfactory terms(cid:4) if at all.
(cid:49)e periodically need to obtain financing in order to meet our debt obligations as they come due, to support our operations and/or
to make acquisitions. Our access to the debt capital markets and the cost of borrowings are affected by a number of factors
including market conditions and the strength of our credit ratings. If we cannot obtain adequate sources of credit on favorable
terms, or at all, our business, operating results, and financial condition could be adversely affected.
13
Textron 2023 Annual Report 13
Unanticipated changes in our ta(cid:49) rates or e(cid:49)posure to additional income ta(cid:49) liabilities could affect our profitability.
Unanticipated changes in our ta(cid:49) rates or e(cid:49)posure to additional income ta(cid:49) liabilities could affect our profitability.
Unanticipated changes in our ta(cid:49) rates or e(cid:49)posure to additional income ta(cid:49) liabilities could affect our profitability.
Unanticipated changes in our ta(cid:49) rates or e(cid:49)posure to additional income ta(cid:49) liabilities could affect our profitability.
Unanticipated changes in our ta(cid:49) rates or e(cid:49)posure to additional income ta(cid:49) liabilities could affect our profitability.
Unanticipated changes in our ta(cid:49) rates or e(cid:49)posure to additional income ta(cid:49) liabilities could affect our profitability.
(cid:49)e are sub(cid:65)ect to income taxes in the (cid:47).S. and various non-(cid:47).S. (cid:65)urisdictions, and our domestic and international tax liabilities are
(cid:49)e are sub(cid:65)ect to income taxes in the (cid:47).S. and various non-(cid:47).S. (cid:65)urisdictions, and our domestic and international tax liabilities are
(cid:49)e are sub(cid:65)ect to income taxes in the (cid:47).S. and various non-(cid:47).S. (cid:65)urisdictions, and our domestic and international tax liabilities are
(cid:49)e are sub(cid:65)ect to income taxes in the (cid:47).S. and various non-(cid:47).S. (cid:65)urisdictions, and our domestic and international tax liabilities are
(cid:49)e are sub(cid:65)ect to income taxes in the (cid:47).S. and various non-(cid:47).S. (cid:65)urisdictions, and our domestic and international tax liabilities are
(cid:49)e are sub(cid:65)ect to income taxes in the (cid:47).S. and various non-(cid:47).S. (cid:65)urisdictions, and our domestic and international tax liabilities are
sub(cid:65)ect to the location of income among these different (cid:65)urisdictions. Our effective tax rate could be adversely affected by changes
sub(cid:65)ect to the location of income among these different (cid:65)urisdictions. Our effective tax rate could be adversely affected by changes
sub(cid:65)ect to the location of income among these different (cid:65)urisdictions. Our effective tax rate could be adversely affected by changes
sub(cid:65)ect to the location of income among these different (cid:65)urisdictions. Our effective tax rate could be adversely affected by changes
sub(cid:65)ect to the location of income among these different (cid:65)urisdictions. Our effective tax rate could be adversely affected by changes
sub(cid:65)ect to the location of income among these different (cid:65)urisdictions. Our effective tax rate could be adversely affected by changes
in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities,
in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities,
in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities,
in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities,
in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities,
in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities,
changes in the amount of earnings indefinitely reinvested offshore, changes to unrecogni(cid:81)ed tax benefits or changes in tax laws,
changes in the amount of earnings indefinitely reinvested offshore, changes to unrecogni(cid:81)ed tax benefits or changes in tax laws,
changes in the amount of earnings indefinitely reinvested offshore, changes to unrecogni(cid:81)ed tax benefits or changes in tax laws,
changes in the amount of earnings indefinitely reinvested offshore, changes to unrecogni(cid:81)ed tax benefits or changes in tax laws,
changes in the amount of earnings indefinitely reinvested offshore, changes to unrecogni(cid:81)ed tax benefits or changes in tax laws,
changes in the amount of earnings indefinitely reinvested offshore, changes to unrecogni(cid:81)ed tax benefits or changes in tax laws,
which could affect our profitability. In particular, the carrying value of deferred tax assets is dependent on our ability to generate
which could affect our profitability. In particular, the carrying value of deferred tax assets is dependent on our ability to generate
which could affect our profitability. In particular, the carrying value of deferred tax assets is dependent on our ability to generate
which could affect our profitability. In particular, the carrying value of deferred tax assets is dependent on our ability to generate
which could affect our profitability. In particular, the carrying value of deferred tax assets is dependent on our ability to generate
which could affect our profitability. In particular, the carrying value of deferred tax assets is dependent on our ability to generate
future taxable income, as well as changes to applicable statutory tax rates. In addition, the amount of income taxes we pay is
future taxable income, as well as changes to applicable statutory tax rates. In addition, the amount of income taxes we pay is
future taxable income, as well as changes to applicable statutory tax rates. In addition, the amount of income taxes we pay is
future taxable income, as well as changes to applicable statutory tax rates. In addition, the amount of income taxes we pay is
future taxable income, as well as changes to applicable statutory tax rates. In addition, the amount of income taxes we pay is
future taxable income, as well as changes to applicable statutory tax rates. In addition, the amount of income taxes we pay is
sub(cid:65)ect to audits in various (cid:65)urisdictions, and a material assessment by a tax authority could affect our profitability.
sub(cid:65)ect to audits in various (cid:65)urisdictions, and a material assessment by a tax authority could affect our profitability.
sub(cid:65)ect to audits in various (cid:65)urisdictions, and a material assessment by a tax authority could affect our profitability.
sub(cid:65)ect to audits in various (cid:65)urisdictions, and a material assessment by a tax authority could affect our profitability.
sub(cid:65)ect to audits in various (cid:65)urisdictions, and a material assessment by a tax authority could affect our profitability.
sub(cid:65)ect to audits in various (cid:65)urisdictions, and a material assessment by a tax authority could affect our profitability.
(cid:37)i(cid:65)(cid:57)(cid:65)(cid:1)(cid:37)elate(cid:50)(cid:1)t(cid:61)(cid:1)(cid:37)e(cid:53)(cid:67)lat(cid:61)(cid:64)(cid:71)(cid:6)(cid:1)(cid:31)e(cid:53)al(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:32)atte(cid:64)(cid:65)
(cid:37)i(cid:65)(cid:57)(cid:65)(cid:1)(cid:37)elate(cid:50)(cid:1)t(cid:61)(cid:1)(cid:37)e(cid:53)(cid:67)lat(cid:61)(cid:64)(cid:71)(cid:6)(cid:1)(cid:31)e(cid:53)al(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:32)atte(cid:64)(cid:65)
(cid:37)i(cid:65)(cid:57)(cid:65)(cid:1)(cid:37)elate(cid:50)(cid:1)t(cid:61)(cid:1)(cid:37)e(cid:53)(cid:67)lat(cid:61)(cid:64)(cid:71)(cid:6)(cid:1)(cid:31)e(cid:53)al(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:32)atte(cid:64)(cid:65)
(cid:37)i(cid:65)(cid:57)(cid:65)(cid:1)(cid:37)elate(cid:50)(cid:1)t(cid:61)(cid:1)(cid:37)e(cid:53)(cid:67)lat(cid:61)(cid:64)(cid:71)(cid:6)(cid:1)(cid:31)e(cid:53)al(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:32)atte(cid:64)(cid:65)
(cid:37)i(cid:65)(cid:57)(cid:65)(cid:1)(cid:37)elate(cid:50)(cid:1)t(cid:61)(cid:1)(cid:37)e(cid:53)(cid:67)lat(cid:61)(cid:64)(cid:71)(cid:6)(cid:1)(cid:31)e(cid:53)al(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:32)atte(cid:64)(cid:65)
(cid:37)i(cid:65)(cid:57)(cid:65)(cid:1)(cid:37)elate(cid:50)(cid:1)t(cid:61)(cid:1)(cid:37)e(cid:53)(cid:67)lat(cid:61)(cid:64)(cid:71)(cid:6)(cid:1)(cid:31)e(cid:53)al(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:32)atte(cid:64)(cid:65)
We are sub(cid:35)ect to increasing compliance ris(cid:36)s that could adversely affect our operating results.
We are sub(cid:35)ect to increasing compliance ris(cid:36)s that could adversely affect our operating results.
We are sub(cid:35)ect to increasing compliance ris(cid:36)s that could adversely affect our operating results.
We are sub(cid:35)ect to increasing compliance ris(cid:36)s that could adversely affect our operating results.
We are sub(cid:35)ect to increasing compliance ris(cid:36)s that could adversely affect our operating results.
We are sub(cid:35)ect to increasing compliance ris(cid:36)s that could adversely affect our operating results.
As a global business, we are sub(cid:65)ect to laws and regulations in the (cid:47).S. and other countries in which we operate. International
As a global business, we are sub(cid:65)ect to laws and regulations in the (cid:47).S. and other countries in which we operate. International
As a global business, we are sub(cid:65)ect to laws and regulations in the (cid:47).S. and other countries in which we operate. International
As a global business, we are sub(cid:65)ect to laws and regulations in the (cid:47).S. and other countries in which we operate. International
As a global business, we are sub(cid:65)ect to laws and regulations in the (cid:47).S. and other countries in which we operate. International
As a global business, we are sub(cid:65)ect to laws and regulations in the (cid:47).S. and other countries in which we operate. International
sales and global operations require importing and exporting goods, software and technology, some of which have military
sales and global operations require importing and exporting goods, software and technology, some of which have military
sales and global operations require importing and exporting goods, software and technology, some of which have military
sales and global operations require importing and exporting goods, software and technology, some of which have military
sales and global operations require importing and exporting goods, software and technology, some of which have military
sales and global operations require importing and exporting goods, software and technology, some of which have military
applications sub(cid:65)ecting them to more stringent import-export controls across international borders on a regular basis. For example,
applications sub(cid:65)ecting them to more stringent import-export controls across international borders on a regular basis. For example,
applications sub(cid:65)ecting them to more stringent import-export controls across international borders on a regular basis. For example,
applications sub(cid:65)ecting them to more stringent import-export controls across international borders on a regular basis. For example,
applications sub(cid:65)ecting them to more stringent import-export controls across international borders on a regular basis. For example,
applications sub(cid:65)ecting them to more stringent import-export controls across international borders on a regular basis. For example,
we sometimes initially must obtain licenses and authori(cid:81)ations from various (cid:47).S. Government agencies before we are permitted to
we sometimes initially must obtain licenses and authori(cid:81)ations from various (cid:47).S. Government agencies before we are permitted to
we sometimes initially must obtain licenses and authori(cid:81)ations from various (cid:47).S. Government agencies before we are permitted to
we sometimes initially must obtain licenses and authori(cid:81)ations from various (cid:47).S. Government agencies before we are permitted to
we sometimes initially must obtain licenses and authori(cid:81)ations from various (cid:47).S. Government agencies before we are permitted to
we sometimes initially must obtain licenses and authori(cid:81)ations from various (cid:47).S. Government agencies before we are permitted to
sell certain of our aerospace and defense products outside the (cid:47).S., and we are not always successful in obtaining these licenses or
sell certain of our aerospace and defense products outside the (cid:47).S., and we are not always successful in obtaining these licenses or
sell certain of our aerospace and defense products outside the (cid:47).S., and we are not always successful in obtaining these licenses or
sell certain of our aerospace and defense products outside the (cid:47).S., and we are not always successful in obtaining these licenses or
sell certain of our aerospace and defense products outside the (cid:47).S., and we are not always successful in obtaining these licenses or
sell certain of our aerospace and defense products outside the (cid:47).S., and we are not always successful in obtaining these licenses or
authori(cid:81)ations in a timely manner. Both (cid:47).S. and foreign laws and regulations applicable to us have been increasing in scope and
authori(cid:81)ations in a timely manner. Both (cid:47).S. and foreign laws and regulations applicable to us have been increasing in scope and
authori(cid:81)ations in a timely manner. Both (cid:47).S. and foreign laws and regulations applicable to us have been increasing in scope and
authori(cid:81)ations in a timely manner. Both (cid:47).S. and foreign laws and regulations applicable to us have been increasing in scope and
authori(cid:81)ations in a timely manner. Both (cid:47).S. and foreign laws and regulations applicable to us have been increasing in scope and
authori(cid:81)ations in a timely manner. Both (cid:47).S. and foreign laws and regulations applicable to us have been increasing in scope and
complexity. For example, both (cid:47).S. and foreign governments and government agencies regulate the aviation industry, and they
complexity. For example, both (cid:47).S. and foreign governments and government agencies regulate the aviation industry, and they
complexity. For example, both (cid:47).S. and foreign governments and government agencies regulate the aviation industry, and they
complexity. For example, both (cid:47).S. and foreign governments and government agencies regulate the aviation industry, and they
complexity. For example, both (cid:47).S. and foreign governments and government agencies regulate the aviation industry, and they
complexity. For example, both (cid:47).S. and foreign governments and government agencies regulate the aviation industry, and they
have previously and may in the future impose new regulations for additional aircraft security or other requirements or restrictions.
have previously and may in the future impose new regulations for additional aircraft security or other requirements or restrictions.
have previously and may in the future impose new regulations for additional aircraft security or other requirements or restrictions.
have previously and may in the future impose new regulations for additional aircraft security or other requirements or restrictions.
have previously and may in the future impose new regulations for additional aircraft security or other requirements or restrictions.
have previously and may in the future impose new regulations for additional aircraft security or other requirements or restrictions.
New or changing laws and regulations or related interpretation and policies could increase our costs of doing business, affect how
New or changing laws and regulations or related interpretation and policies could increase our costs of doing business, affect how
New or changing laws and regulations or related interpretation and policies could increase our costs of doing business, affect how
New or changing laws and regulations or related interpretation and policies could increase our costs of doing business, affect how
New or changing laws and regulations or related interpretation and policies could increase our costs of doing business, affect how
New or changing laws and regulations or related interpretation and policies could increase our costs of doing business, affect how
we conduct our operations, adversely impact demand for our products, and/or limit our ability to sell our products and services.
we conduct our operations, adversely impact demand for our products, and/or limit our ability to sell our products and services.
we conduct our operations, adversely impact demand for our products, and/or limit our ability to sell our products and services.
we conduct our operations, adversely impact demand for our products, and/or limit our ability to sell our products and services.
we conduct our operations, adversely impact demand for our products, and/or limit our ability to sell our products and services.
we conduct our operations, adversely impact demand for our products, and/or limit our ability to sell our products and services.
Compliance with laws and regulations of increasing scope and complexity is even more challenging in our business environment
Compliance with laws and regulations of increasing scope and complexity is even more challenging in our business environment
Compliance with laws and regulations of increasing scope and complexity is even more challenging in our business environment
Compliance with laws and regulations of increasing scope and complexity is even more challenging in our business environment
Compliance with laws and regulations of increasing scope and complexity is even more challenging in our business environment
Compliance with laws and regulations of increasing scope and complexity is even more challenging in our business environment
in which reducing our operating costs is often necessary to remain competitive. In addition, a violation of (cid:47).S. and/or foreign laws
in which reducing our operating costs is often necessary to remain competitive. In addition, a violation of (cid:47).S. and/or foreign laws
in which reducing our operating costs is often necessary to remain competitive. In addition, a violation of (cid:47).S. and/or foreign laws
in which reducing our operating costs is often necessary to remain competitive. In addition, a violation of (cid:47).S. and/or foreign laws
in which reducing our operating costs is often necessary to remain competitive. In addition, a violation of (cid:47).S. and/or foreign laws
in which reducing our operating costs is often necessary to remain competitive. In addition, a violation of (cid:47).S. and/or foreign laws
by one of our employees or business partners could sub(cid:65)ect us or our employees to civil or criminal penalties, including material
by one of our employees or business partners could sub(cid:65)ect us or our employees to civil or criminal penalties, including material
by one of our employees or business partners could sub(cid:65)ect us or our employees to civil or criminal penalties, including material
by one of our employees or business partners could sub(cid:65)ect us or our employees to civil or criminal penalties, including material
by one of our employees or business partners could sub(cid:65)ect us or our employees to civil or criminal penalties, including material
by one of our employees or business partners could sub(cid:65)ect us or our employees to civil or criminal penalties, including material
monetary fines, or other adverse actions, such as denial of import or export privileges and/or debarment as a government
monetary fines, or other adverse actions, such as denial of import or export privileges and/or debarment as a government
monetary fines, or other adverse actions, such as denial of import or export privileges and/or debarment as a government
monetary fines, or other adverse actions, such as denial of import or export privileges and/or debarment as a government
monetary fines, or other adverse actions, such as denial of import or export privileges and/or debarment as a government
monetary fines, or other adverse actions, such as denial of import or export privileges and/or debarment as a government
contractor which could damage our reputation and have an adverse effect on our business.
contractor which could damage our reputation and have an adverse effect on our business.
contractor which could damage our reputation and have an adverse effect on our business.
contractor which could damage our reputation and have an adverse effect on our business.
contractor which could damage our reputation and have an adverse effect on our business.
contractor which could damage our reputation and have an adverse effect on our business.
(cid:10)ertain of our products are sub(cid:35)ect to laws regulating consumer products and could be sub(cid:35)ect to repurchase or recall as a
(cid:10)ertain of our products are sub(cid:35)ect to laws regulating consumer products and could be sub(cid:35)ect to repurchase or recall as a
(cid:10)ertain of our products are sub(cid:35)ect to laws regulating consumer products and could be sub(cid:35)ect to repurchase or recall as a
(cid:10)ertain of our products are sub(cid:35)ect to laws regulating consumer products and could be sub(cid:35)ect to repurchase or recall as a
(cid:10)ertain of our products are sub(cid:35)ect to laws regulating consumer products and could be sub(cid:35)ect to repurchase or recall as a
(cid:10)ertain of our products are sub(cid:35)ect to laws regulating consumer products and could be sub(cid:35)ect to repurchase or recall as a
result of safety issues.
result of safety issues.
result of safety issues.
result of safety issues.
result of safety issues.
result of safety issues.
As a distributor of consumer products in the (cid:47).S., certain of our products are sub(cid:65)ect to the Consumer Product Safety Act, which
As a distributor of consumer products in the (cid:47).S., certain of our products are sub(cid:65)ect to the Consumer Product Safety Act, which
As a distributor of consumer products in the (cid:47).S., certain of our products are sub(cid:65)ect to the Consumer Product Safety Act, which
As a distributor of consumer products in the (cid:47).S., certain of our products are sub(cid:65)ect to the Consumer Product Safety Act, which
As a distributor of consumer products in the (cid:47).S., certain of our products are sub(cid:65)ect to the Consumer Product Safety Act, which
As a distributor of consumer products in the (cid:47).S., certain of our products are sub(cid:65)ect to the Consumer Product Safety Act, which
empowers the (cid:47).S. Consumer Product Safety Commission (CPSC) to exclude from the market products that are found to be
empowers the (cid:47).S. Consumer Product Safety Commission (CPSC) to exclude from the market products that are found to be
empowers the (cid:47).S. Consumer Product Safety Commission (CPSC) to exclude from the market products that are found to be
empowers the (cid:47).S. Consumer Product Safety Commission (CPSC) to exclude from the market products that are found to be
empowers the (cid:47).S. Consumer Product Safety Commission (CPSC) to exclude from the market products that are found to be
empowers the (cid:47).S. Consumer Product Safety Commission (CPSC) to exclude from the market products that are found to be
unsafe or ha(cid:81)ardous. (cid:47)nder certain circumstances, the CPSC has in the past and could require in the future us to repair, replace or
unsafe or ha(cid:81)ardous. (cid:47)nder certain circumstances, the CPSC has in the past and could require in the future us to repair, replace or
unsafe or ha(cid:81)ardous. (cid:47)nder certain circumstances, the CPSC has in the past and could require in the future us to repair, replace or
unsafe or ha(cid:81)ardous. (cid:47)nder certain circumstances, the CPSC has in the past and could require in the future us to repair, replace or
unsafe or ha(cid:81)ardous. (cid:47)nder certain circumstances, the CPSC has in the past and could require in the future us to repair, replace or
unsafe or ha(cid:81)ardous. (cid:47)nder certain circumstances, the CPSC has in the past and could require in the future us to repair, replace or
refund the purchase price of one or more of our products, or potentially even discontinue entire product lines. (cid:49)e also may
refund the purchase price of one or more of our products, or potentially even discontinue entire product lines. (cid:49)e also may
refund the purchase price of one or more of our products, or potentially even discontinue entire product lines. (cid:49)e also may
refund the purchase price of one or more of our products, or potentially even discontinue entire product lines. (cid:49)e also may
refund the purchase price of one or more of our products, or potentially even discontinue entire product lines. (cid:49)e also may
refund the purchase price of one or more of our products, or potentially even discontinue entire product lines. (cid:49)e also may
voluntarily take such action and, from time to time, have done so, but within strictures recommended by the CPSC. The CPSC
voluntarily take such action and, from time to time, have done so, but within strictures recommended by the CPSC. The CPSC
voluntarily take such action and, from time to time, have done so, but within strictures recommended by the CPSC. The CPSC
voluntarily take such action and, from time to time, have done so, but within strictures recommended by the CPSC. The CPSC
voluntarily take such action and, from time to time, have done so, but within strictures recommended by the CPSC. The CPSC
voluntarily take such action and, from time to time, have done so, but within strictures recommended by the CPSC. The CPSC
also can impose fines or penalties on a manufacturer for non-compliance with its requirements. Furthermore, failure to timely
also can impose fines or penalties on a manufacturer for non-compliance with its requirements. Furthermore, failure to timely
also can impose fines or penalties on a manufacturer for non-compliance with its requirements. Furthermore, failure to timely
also can impose fines or penalties on a manufacturer for non-compliance with its requirements. Furthermore, failure to timely
also can impose fines or penalties on a manufacturer for non-compliance with its requirements. Furthermore, failure to timely
also can impose fines or penalties on a manufacturer for non-compliance with its requirements. Furthermore, failure to timely
notify the CPSC of a potential safety ha(cid:81)ard can result in significant fines being assessed against us. Any repurchases or recalls of
notify the CPSC of a potential safety ha(cid:81)ard can result in significant fines being assessed against us. Any repurchases or recalls of
notify the CPSC of a potential safety ha(cid:81)ard can result in significant fines being assessed against us. Any repurchases or recalls of
notify the CPSC of a potential safety ha(cid:81)ard can result in significant fines being assessed against us. Any repurchases or recalls of
notify the CPSC of a potential safety ha(cid:81)ard can result in significant fines being assessed against us. Any repurchases or recalls of
notify the CPSC of a potential safety ha(cid:81)ard can result in significant fines being assessed against us. Any repurchases or recalls of
our products or an imposition of fines or penalties could be costly to us and could damage the reputation or the value of our
our products or an imposition of fines or penalties could be costly to us and could damage the reputation or the value of our
our products or an imposition of fines or penalties could be costly to us and could damage the reputation or the value of our
our products or an imposition of fines or penalties could be costly to us and could damage the reputation or the value of our
our products or an imposition of fines or penalties could be costly to us and could damage the reputation or the value of our
our products or an imposition of fines or penalties could be costly to us and could damage the reputation or the value of our
brands. Additionally, laws regulating certain consumer products exist in some states, as well as in other countries in which we sell
brands. Additionally, laws regulating certain consumer products exist in some states, as well as in other countries in which we sell
brands. Additionally, laws regulating certain consumer products exist in some states, as well as in other countries in which we sell
brands. Additionally, laws regulating certain consumer products exist in some states, as well as in other countries in which we sell
brands. Additionally, laws regulating certain consumer products exist in some states, as well as in other countries in which we sell
brands. Additionally, laws regulating certain consumer products exist in some states, as well as in other countries in which we sell
our products, and more restrictive laws and regulations could be adopted in the future.
our products, and more restrictive laws and regulations could be adopted in the future.
our products, and more restrictive laws and regulations could be adopted in the future.
our products, and more restrictive laws and regulations could be adopted in the future.
our products, and more restrictive laws and regulations could be adopted in the future.
our products, and more restrictive laws and regulations could be adopted in the future.
(cid:15)ncreased regulation and sta(cid:36)eholder e(cid:49)pectations related to global climate change could negatively affect our operating
(cid:15)ncreased regulation and sta(cid:36)eholder e(cid:49)pectations related to global climate change could negatively affect our operating
(cid:15)ncreased regulation and sta(cid:36)eholder e(cid:49)pectations related to global climate change could negatively affect our operating
(cid:15)ncreased regulation and sta(cid:36)eholder e(cid:49)pectations related to global climate change could negatively affect our operating
(cid:15)ncreased regulation and sta(cid:36)eholder e(cid:49)pectations related to global climate change could negatively affect our operating
(cid:15)ncreased regulation and sta(cid:36)eholder e(cid:49)pectations related to global climate change could negatively affect our operating
results.
results.
results.
results.
results.
results.
Increased worldwide public awareness and concern regarding global climate change has resulted and is likely to continue to result
Increased worldwide public awareness and concern regarding global climate change has resulted and is likely to continue to result
Increased worldwide public awareness and concern regarding global climate change has resulted and is likely to continue to result
Increased worldwide public awareness and concern regarding global climate change has resulted and is likely to continue to result
Increased worldwide public awareness and concern regarding global climate change has resulted and is likely to continue to result
Increased worldwide public awareness and concern regarding global climate change has resulted and is likely to continue to result
in more legislative and regulatory efforts to address the negative impacts of climate change. Such laws and regulations are likely
in more legislative and regulatory efforts to address the negative impacts of climate change. Such laws and regulations are likely
in more legislative and regulatory efforts to address the negative impacts of climate change. Such laws and regulations are likely
in more legislative and regulatory efforts to address the negative impacts of climate change. Such laws and regulations are likely
in more legislative and regulatory efforts to address the negative impacts of climate change. Such laws and regulations are likely
in more legislative and regulatory efforts to address the negative impacts of climate change. Such laws and regulations are likely
to include more prescriptive reporting on environmental metrics, climate change related risks and associated financial impacts, as
to include more prescriptive reporting on environmental metrics, climate change related risks and associated financial impacts, as
to include more prescriptive reporting on environmental metrics, climate change related risks and associated financial impacts, as
to include more prescriptive reporting on environmental metrics, climate change related risks and associated financial impacts, as
to include more prescriptive reporting on environmental metrics, climate change related risks and associated financial impacts, as
to include more prescriptive reporting on environmental metrics, climate change related risks and associated financial impacts, as
well as increased oversight of and reporting on our supply chain and other compliance requirements. Stricter limits on greenhouse
well as increased oversight of and reporting on our supply chain and other compliance requirements. Stricter limits on greenhouse
well as increased oversight of and reporting on our supply chain and other compliance requirements. Stricter limits on greenhouse
well as increased oversight of and reporting on our supply chain and other compliance requirements. Stricter limits on greenhouse
well as increased oversight of and reporting on our supply chain and other compliance requirements. Stricter limits on greenhouse
well as increased oversight of and reporting on our supply chain and other compliance requirements. Stricter limits on greenhouse
gas emissions generated by our facilities or by our products that produce carbon emissions could also be imposed. (cid:49)e expect that
gas emissions generated by our facilities or by our products that produce carbon emissions could also be imposed. (cid:49)e expect that
gas emissions generated by our facilities or by our products that produce carbon emissions could also be imposed. (cid:49)e expect that
gas emissions generated by our facilities or by our products that produce carbon emissions could also be imposed. (cid:49)e expect that
gas emissions generated by our facilities or by our products that produce carbon emissions could also be imposed. (cid:49)e expect that
gas emissions generated by our facilities or by our products that produce carbon emissions could also be imposed. (cid:49)e expect that
compliance with such laws and regulations will require additional internal resources and may necessitate larger investment in
compliance with such laws and regulations will require additional internal resources and may necessitate larger investment in
compliance with such laws and regulations will require additional internal resources and may necessitate larger investment in
compliance with such laws and regulations will require additional internal resources and may necessitate larger investment in
compliance with such laws and regulations will require additional internal resources and may necessitate larger investment in
compliance with such laws and regulations will require additional internal resources and may necessitate larger investment in
product development and manufacturing equipment and/or facilities, as well as sourcing from new suppliers and/or higher costs
product development and manufacturing equipment and/or facilities, as well as sourcing from new suppliers and/or higher costs
product development and manufacturing equipment and/or facilities, as well as sourcing from new suppliers and/or higher costs
product development and manufacturing equipment and/or facilities, as well as sourcing from new suppliers and/or higher costs
product development and manufacturing equipment and/or facilities, as well as sourcing from new suppliers and/or higher costs
product development and manufacturing equipment and/or facilities, as well as sourcing from new suppliers and/or higher costs
from existing suppliers, all of which would increase our direct and indirect costs and negatively impact our business, results of
from existing suppliers, all of which would increase our direct and indirect costs and negatively impact our business, results of
from existing suppliers, all of which would increase our direct and indirect costs and negatively impact our business, results of
from existing suppliers, all of which would increase our direct and indirect costs and negatively impact our business, results of
from existing suppliers, all of which would increase our direct and indirect costs and negatively impact our business, results of
from existing suppliers, all of which would increase our direct and indirect costs and negatively impact our business, results of
operations, financial condition and competitive position. Our failure to adequately comply with such laws and regulations could
operations, financial condition and competitive position. Our failure to adequately comply with such laws and regulations could
operations, financial condition and competitive position. Our failure to adequately comply with such laws and regulations could
operations, financial condition and competitive position. Our failure to adequately comply with such laws and regulations could
operations, financial condition and competitive position. Our failure to adequately comply with such laws and regulations could
operations, financial condition and competitive position. Our failure to adequately comply with such laws and regulations could
(cid:65)eopardi(cid:81)e our ability to receive contract awards from the (cid:47).S. government and other customers.
(cid:65)eopardi(cid:81)e our ability to receive contract awards from the (cid:47).S. government and other customers.
(cid:65)eopardi(cid:81)e our ability to receive contract awards from the (cid:47).S. government and other customers.
(cid:65)eopardi(cid:81)e our ability to receive contract awards from the (cid:47).S. government and other customers.
(cid:65)eopardi(cid:81)e our ability to receive contract awards from the (cid:47).S. government and other customers.
(cid:65)eopardi(cid:81)e our ability to receive contract awards from the (cid:47).S. government and other customers.
Moreover, our investors, customers, employees and other stakeholders increasingly expect us to reduce greenhouse gas emissions
Moreover, our investors, customers, employees and other stakeholders increasingly expect us to reduce greenhouse gas emissions
Moreover, our investors, customers, employees and other stakeholders increasingly expect us to reduce greenhouse gas emissions
Moreover, our investors, customers, employees and other stakeholders increasingly expect us to reduce greenhouse gas emissions
Moreover, our investors, customers, employees and other stakeholders increasingly expect us to reduce greenhouse gas emissions
Moreover, our investors, customers, employees and other stakeholders increasingly expect us to reduce greenhouse gas emissions
generated by our operations by implementing more efficient manufacturing technologies and increasing the amount of renewable
generated by our operations by implementing more efficient manufacturing technologies and increasing the amount of renewable
generated by our operations by implementing more efficient manufacturing technologies and increasing the amount of renewable
generated by our operations by implementing more efficient manufacturing technologies and increasing the amount of renewable
generated by our operations by implementing more efficient manufacturing technologies and increasing the amount of renewable
generated by our operations by implementing more efficient manufacturing technologies and increasing the amount of renewable
energy used within our facilities. (cid:49)hile we are engaged in efforts to transition to a lower carbon economy by reducing the
energy used within our facilities. (cid:49)hile we are engaged in efforts to transition to a lower carbon economy by reducing the
energy used within our facilities. (cid:49)hile we are engaged in efforts to transition to a lower carbon economy by reducing the
energy used within our facilities. (cid:49)hile we are engaged in efforts to transition to a lower carbon economy by reducing the
energy used within our facilities. (cid:49)hile we are engaged in efforts to transition to a lower carbon economy by reducing the
energy used within our facilities. (cid:49)hile we are engaged in efforts to transition to a lower carbon economy by reducing the
emissions generated by our operations and increasing our use of renewable energy, these efforts take time and resources and may
emissions generated by our operations and increasing our use of renewable energy, these efforts take time and resources and may
emissions generated by our operations and increasing our use of renewable energy, these efforts take time and resources and may
emissions generated by our operations and increasing our use of renewable energy, these efforts take time and resources and may
emissions generated by our operations and increasing our use of renewable energy, these efforts take time and resources and may
emissions generated by our operations and increasing our use of renewable energy, these efforts take time and resources and may
increase our energy acquisition and other costs and require capital investment. In addition, our stakeholders expect us to reduce
increase our energy acquisition and other costs and require capital investment. In addition, our stakeholders expect us to reduce
increase our energy acquisition and other costs and require capital investment. In addition, our stakeholders expect us to reduce
increase our energy acquisition and other costs and require capital investment. In addition, our stakeholders expect us to reduce
increase our energy acquisition and other costs and require capital investment. In addition, our stakeholders expect us to reduce
increase our energy acquisition and other costs and require capital investment. In addition, our stakeholders expect us to reduce
greenhouse gas emissions from the use of our products, including by developing and incorporating sustainable technologies into
greenhouse gas emissions from the use of our products, including by developing and incorporating sustainable technologies into
greenhouse gas emissions from the use of our products, including by developing and incorporating sustainable technologies into
greenhouse gas emissions from the use of our products, including by developing and incorporating sustainable technologies into
greenhouse gas emissions from the use of our products, including by developing and incorporating sustainable technologies into
greenhouse gas emissions from the use of our products, including by developing and incorporating sustainable technologies into
14 Textron 2023 Annual Report
14
14
14
14
14
14
our products. (cid:49)e expect that most of our businesses will require significant research and development investment to succeed in
developing the new technologies and products that will enable us to significantly reduce such emissions from the use of our
products and successfully compete in a lower carbon economy. (cid:49)e may not reali(cid:81)e the anticipated benefits of our investments
and actions for a variety of reasons, including technological challenges, evolving government and customer requirements and our
ability to anticipate them and develop the desired technologies and products on a timely basis. Our competitors may develop these
technologies and products before we do and they may be deemed by our customers to be superior to technologies and products we
may develop, and they may otherwise gain industry acceptance in advance of, or instead of, our products. In addition, as we and
our competitors develop increasingly sustainable technologies, demand for our existing offerings may decrease or become
nonexistent.
We are sub(cid:35)ect to legal proceedings and other claims.
(cid:49)e are sub(cid:65)ect to legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims
relating to commercial and financial transactions(cid:26) government contracts(cid:26) alleged lack of compliance with applicable laws and
regulations(cid:26) disputes with suppliers, production partners or other third parties(cid:26) product liability(cid:26) patent and trademark
infringement(cid:26) employment disputes(cid:26) and environmental, safety and health matters. Due to the nature of our manufacturing
business, we are regularly sub(cid:65)ect to liability claims arising from accidents involving our products, including claims for serious
personal in(cid:65)uries or death caused by weather or by pilot, driver or user error. In the case of litigation matters for which reserves
have not been established because the loss is not deemed probable, it is reasonably possible that such claims could be decided
against us and could require us to pay damages or make other expenditures in amounts that are not presently estimable. In
addition, we cannot be certain that our reserves are adequate and that our insurance coverage will be sufficient to cover one or
more substantial claims. Furthermore, we may not be able to obtain insurance coverage at acceptable levels and costs in the
future. Litigation is inherently unpredictable, and we could incur (cid:65)udgments, receive adverse arbitration awards or enter into
settlements for current or future claims that could adversely affect our results of operations in any particular period.
(cid:15)ntellectual property infringement claims of others and the inability to protect our intellectual property rights could harm our
business and our customers.
Intellectual property infringement claims are, from time to time, asserted by third parties against us or our customers. Any related
indemnification payments or legal costs we are obliged to pay on behalf of our businesses, our customers or other third parties can
be costly. Infringement claims also have resulted in legal restrictions on our businesses engaging in sales of allegedly infringing
products. If such a restriction were imposed upon a material product line, our business and results of operations could be
adversely impacted. In addition, we own the rights to many patents, trademarks, brand names, trade names and trade secrets that
are important to our business. Our inability to enforce these intellectual property rights could have an adverse effect on our results
of operations. Additionally, our intellectual property could be at risk due to cybersecurity threats.
(cid:37)i(cid:65)(cid:57)(cid:65)(cid:1)(cid:37)elate(cid:50)(cid:1)t(cid:61)(cid:1)(cid:27)(cid:67)ma(cid:60)(cid:1)(cid:22)a(cid:62)ital(cid:1)
(cid:19)ur success is highly dependent on our ability to hire and retain a (cid:42)ualified wor(cid:36)force.
Our success is highly dependent upon our ability to hire and retain a workforce with the skills necessary for our businesses to
develop and manufacture the products desired by our customers. (cid:49)e need highly skilled personnel in multiple areas including,
among others, engineering, manufacturing, information technology, cybersecurity, flight operations, business development and
strategy and management. Because many of our businesses experience cyclical market demand, they face challenges in
maintaining their workforce at levels aligned with market demand which in the past has necessitated workforce reductions at
some of our businesses as demand decreased. Conversely, our businesses sometimes need to increase the si(cid:81)e of their workforce
in order to keep pace with production needs due to increased customer demand. Furthermore, for our defense businesses the
uncertainty of being awarded follow-on contracts and the related timing can also present difficulties in matching workforce si(cid:81)e
with contract needs. Such challenges in aligning the si(cid:81)e of our businesses(cid:88) workforces with current or future business needs have
resulted and may, in the future result in increased costs, production delays or other adverse impacts on our business and results of
operations.
In addition, from time to time we face challenges that may impact employee retention, such as workforce reductions and facility
consolidations and closures, and some of our most experienced employees are retirement-eligible which may adversely impact
retention. To the extent that we lose experienced personnel through retirement or otherwise, it is critical for us to develop other
employees, hire new qualified employees and successfully manage the transfer of critical knowledge. Competition for skilled
employees is intense, and we may incur higher labor, recruiting and/or training costs in order to attract and retain employees with
the requisite skills. (cid:49)e may not be successful in hiring or retaining such employees which could adversely impact our business
and results of operations.
1(cid:20)
Textron 2023 Annual Report 15
(cid:23)he increasing costs of certain employee and retiree benefits could adversely affect our results.
Our results of operations and cash flows may be adversely impacted by increasing costs and funding requirements related to our
employee benefit plans. The obligation for our defined benefit pension plans is driven by, among other things, our assumptions of
the expected long-term rate of return on plan assets and the discount rate used for future payment obligations. Additionally, as
part of our annual evaluation of these plans, significant changes in our assumptions, due to changes in economic, legislative and/
or demographic experience or circumstances, or changes in our actual investment returns could negatively impact the funded
status of our plans requiring us to substantially increase our pension liability with a resulting decrease in shareholders(cid:88) equity.
Also, changes in pension legislation and regulations could increase the cost associated with our defined benefit pension plans.
(cid:19)ur business could be adversely affected by stri(cid:36)es or wor(cid:36) stoppages and other labor issues.
Approximately 7,400, or 27(cid:4), of our (cid:47).S. employees are unioni(cid:81)ed, and many of our non-(cid:47).S. employees are represented by
organi(cid:81)ed councils. As a result, from time to time we experience work stoppages, which can negatively impact our ability to
manufacture our products on a timely basis, resulting in strain on our relationships with our customers, loss or delay of revenues
and/or increased cost. The presence of unions also may limit our flexibility in responding to competitive pressures in the
marketplace. In addition, the workforces of many of our suppliers and customers are represented by labor unions. (cid:49)ork stoppages
or strikes at the plants of our key suppliers could disrupt our manufacturing processes(cid:26) similar actions at the plants of our
customers could result in delayed or canceled orders for our products. Any of these events could adversely affect our results of
operations.
(cid:28)tem(cid:1)(cid:10)(cid:21)(cid:8)(cid:1)(cid:40)(cid:60)(cid:64)e(cid:65)(cid:61)l(cid:68)e(cid:50)(cid:1)(cid:38)ta(cid:52)(cid:52)(cid:1)(cid:22)(cid:61)mme(cid:60)t(cid:65)
None.
(cid:28)tem(cid:1)(cid:10)(cid:22)(cid:8)(cid:1)(cid:22)(cid:71)(cid:48)e(cid:64)(cid:65)e(cid:49)(cid:67)(cid:64)it(cid:71)
(cid:34)(cid:68)e(cid:64)(cid:68)ie(cid:69)
Our IT and related systems are critical to the efficient operation of our business and essential to our ability to perform day to day
processes. (cid:49)e face persistent security threats, including threats to our IT infrastructure and unlawful attempts to gain access to our
confidential, classified or otherwise proprietary information, or that of our employees or customers, via phishing/malware
campaigns and other cyberattack methods.
Our centrally defined security policies and processes are based on industry best practices and are revisited regularly to ensure their
appropriateness based on risk, threats and current technological capabilities. (cid:49)e monitor compliance with these policies and
processes through frequent internal audits and a set of robust metrics that assist in protection of our environment. As a (cid:47).S.
defense contractor, we are additionally obligated to comply with current Department of Defense regulations such as Defense
Federal Acquisition Regulation Supplement and the evolving Cybersecurity Maturity Model Certification guidelines.
(cid:49)e maintain Information Systems Incident Management Standards applicable to all our businesses that are intended to ensure
information security events and weaknesses associated with information systems are communicated and acted on in a timely
manner. Our disclosure controls and procedures address cybersecurity and include processes intended to ensure that security
breaches are reported to appropriate personnel and, if warranted, analy(cid:81)ed for potential disclosure. (cid:49)hile we have experienced
cybersecurity attacks, such attacks to date have not materially affected the Company or our business strategy, results of
operations, or financial condition.
(cid:26)(cid:61)(cid:68)e(cid:64)(cid:60)a(cid:60)(cid:49)e
(cid:21)o(cid:40)(cid:57)(cid:43) (cid:32)(cid:61)(cid:44)(cid:57)si(cid:46)(cid:47)(cid:59) o(cid:45) (cid:22)(cid:64)(cid:41)(cid:44)(cid:57)s(cid:44)(cid:42)(cid:60)(cid:57)i(cid:59)(cid:64) (cid:30)(cid:40)(cid:59)(cid:59)(cid:44)(cid:57)s
Oversight of information security matters is conducted by our full Board of Directors. The Board annually receives a
comprehensive presentation on information security and controls from our Chief Information Officer (CIO) and, as may be
necessary for specific topics, follow up occurs at additional meetings during the course of the year.
(cid:30)(cid:40)n(cid:40)(cid:46)(cid:44)m(cid:44)n(cid:59) o(cid:45) (cid:22)(cid:64)(cid:41)(cid:44)(cid:57)s(cid:44)(cid:42)(cid:60)(cid:57)i(cid:59)(cid:64) (cid:35)is(cid:50)s
Textron Information Services is led by our CIO who has held positions of increasing responsibility within our corporate, Bell and
Textron Systems IT organi(cid:81)ations since 200(cid:23), including leading the IT organi(cid:81)ations at both segments in maintaining compliance
with (cid:47).S. Department of Defense information security requirements, as well as with our enterprise information security policies
and standards. (cid:34)e previously led strategic IT pro(cid:65)ects and teams responsible for delivering global IT solutions for several large
(cid:47).S. based companies.
16 Textron 2023 Annual Report
1(cid:21)
Our corporate information security organi(cid:81)ation, led by our Chief Information Security Officer (CISO), who reports to our CIO, is
responsible for our overall information security strategy, policy, security engineering, operations and cyber threat detection and
response. Our CISO has more than 20 years of experience in the field of information security and holds multiple cybersecurity
certifications including the designation of Certified Information Systems Security Professional.
(cid:37)i(cid:65)(cid:57)(cid:1)(cid:32)a(cid:60)a(cid:53)eme(cid:60)t(cid:1)
Cybersecurity related risks have been identified as material business risks, and identifying, assessing and managing these risks is
integrated into our Enterprise Risk Management (ERM) process, which is designed to identify, assess and guide in managing
material risks throughout Textron at both the business segment and enterprise levels. (cid:49)e maintain cyber risk/network protection
mitigation plans through our ERM process to assist in management of these risks. Our full Board oversees our ERM process
through discussions at our Board of Directors(cid:88) Annual Strategic Business and Risk Review and at an annual dedicated ERM
Review. In addition, high risk areas, including cybersecurity matters, are reviewed and discussed with the full Board or other
Board Committees, as appropriate. The Audit Committee, as reflected in its charter, has been designated to assist the Board in its
oversight of our ERM process, including with respect to cybersecurity risk.
(cid:49)e maintain a detailed Cybersecurity Incident Response Plan that guides our incident response process. (cid:47)pon the occurrence of a
cybersecurity event, the cyber incident response team will follow a predefined process, documenting each step taken, to analy(cid:81)e
and validate the event, and, if a cybersecurity incident is suspected to have occurred, quickly perform an initial analysis to
determine the incident(cid:88)s scope. The team will prioriti(cid:81)e the response to each incident based on its estimate of the business impact
caused by the incident and the estimated efforts required to recover from the incident. Notification of the incident is made to
various stakeholders, including senior management and, if appropriate based upon the incident severity assessment, our Board.
The team will also conduct incident containment, eradication and recovery, and post incident activity.
(cid:38)t(cid:64)ate(cid:53)(cid:71)
(cid:32)(cid:60)(cid:57) (cid:36)(cid:44)(cid:42)(cid:60)(cid:57)i(cid:59)(cid:64) (cid:22)(cid:60)l(cid:59)(cid:60)(cid:57)(cid:44)
(cid:49)e protect our information assets and manage risk by promoting a culture that communicates security risks, designs secure IT
systems and operates according to approved processes to reduce the likelihood and impact of security incidents. (cid:49)e achieve this
ob(cid:65)ective by:
•
•
•
•
•
Designing, implementing and maintaining solutions with appropriate security controls.
Sustaining solutions with required patching and vulnerability remediation.
Creating and executing controls in support of policy as well as regulatory compliance.
Ensuring that our policies, processes, practices and technologies proactively protect, shield, defend and remediate cyber
threats.
Delivering quality communications and annual training to stakeholders on cyber awareness and computing hygiene.
(cid:49)e believe that the conduct of our employees is critical to the success of our information security. Through our security
awareness program, we keep our employees apprised of threats, risks and the part that they play in protecting both themselves and
the company. (cid:49)e conduct periodic compliance training for our employees regarding the protection of sensitive information,
which includes training intended to prevent the success of cyberattacks. (cid:49)e also conduct regular phishing simulations to increase
employee awareness on how to spot phishing attempts, and what to do if they suspect an email to be a phishing attack.
(cid:49)e execute penetration testing against our technical environment and processes, and continuously monitor our network and
systems for signs of intrusion. (cid:49)e also retain consultants to enhance our penetration testing program with current trends and
methodologies utili(cid:81)ed against other companies, ensuring we are proactively reducing risk from emerging threats. These
penetration tests are conducted at a random interval and target our infrastructure and certain of the products we deliver to our
customers.
(cid:49)e have a rigorous process, including a formal IT risk assessment, to assess our service providers prior to allowing our
information to be processed, stored or transmitted by third parties, and we include standardi(cid:81)ed contractual requirements in each
contract where appropriate. (cid:49)e validate our service providers(cid:88) security via questionnaires, open-source intelligence and, where
appropriate, SOC1 reports on financially significant third-party service providers. Our process also includes regular monitoring of
risk related to third parties on a periodic basis or when services or product purchases expand beyond their original scope or
intended use.
Protections against insider threat is a critical component of our security strategy, particularly within our defense business units.
Our insider threat detection processes are designed to identify and evaluate potential insider threats so that appropriate mitigation
can be implemented.
17
Textron 2023 Annual Report 17
Collaboration with our industry partners and government customers contributes to the protection of Textron(cid:88)s computing
environment as well as our military stakeholders. Textron is engaged with various industry groups such as Aerospace Industries
Association, National Defense Information Sharing (cid:5) Analysis Center and our Defense Industrial Base colleagues to ensure that
we are aware of and are addressing the latest adversarial threats. Additionally, we share cyber best practices with industry peers to
help to make the industry more secure.
(cid:28)tem(cid:1)(cid:11)(cid:8)(cid:1)(cid:35)(cid:64)(cid:61)(cid:62)e(cid:64)tie(cid:65)
On December 30, 2023, we operated a total of (cid:20)(cid:21) plants located throughout the (cid:47).S. and 44 plants outside the (cid:47).S. (cid:49)e own (cid:20)9
plants and lease the remainder for a total manufacturing space of approximately 23.7 million square feet. (cid:49)e consider the
productive capacity of the plants operated by each of our business segments to be adequate. (cid:49)e also own or lease offices,
warehouses, training and service centers and other space at various locations. In general, our facilities are in good condition, are
considered to be adequate for the uses to which they are being put and are substantially in regular use.
(cid:28)tem(cid:1)(cid:12)(cid:8)(cid:1)(cid:31)e(cid:53)al(cid:1)(cid:35)(cid:64)(cid:61)(cid:49)ee(cid:50)i(cid:60)(cid:53)(cid:65)
(cid:49)e are sub(cid:65)ect to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including
proceedings and claims relating to commercial and financial transactions(cid:26) government contracts(cid:26) alleged lack of compliance with
applicable laws and regulations(cid:26) disputes with suppliers, production partners or other third parties(cid:26) product liability(cid:26) patent and
trademark infringement(cid:26) employment disputes(cid:26) and environmental, health and safety matters. Some of these legal proceedings and
claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government
contractor, we are sub(cid:65)ect to audits, reviews and investigations to determine whether our operations are being conducted in
accordance with applicable regulatory requirements. (cid:47)nder federal government procurement regulations, certain claims brought
by the (cid:47).S. Government could result in our suspension or debarment from (cid:47).S. Government contracting for a period of time. On
the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on
our financial position or results of operations.
(cid:28)tem(cid:1)(cid:13)(cid:8)(cid:1)(cid:32)i(cid:60)e(cid:1)(cid:38)a(cid:52)et(cid:71)(cid:1)(cid:23)i(cid:65)(cid:49)l(cid:61)(cid:65)(cid:67)(cid:64)e(cid:65)
Not applicable.
(cid:35)(cid:20)(cid:37)T(cid:1)(cid:28)(cid:28)
(cid:28)tem(cid:1)(cid:14)(cid:8)(cid:1)(cid:32)a(cid:64)(cid:57)et(cid:1)(cid:52)(cid:61)(cid:64)(cid:1)(cid:37)e(cid:53)i(cid:65)t(cid:64)a(cid:60)t(cid:74)(cid:65)(cid:1)(cid:22)(cid:61)mm(cid:61)(cid:60)(cid:1)(cid:24)(cid:63)(cid:67)it(cid:71)(cid:6)(cid:1)(cid:37)elate(cid:50)(cid:1)(cid:38)t(cid:61)(cid:49)(cid:57)(cid:54)(cid:61)l(cid:50)e(cid:64)(cid:1)(cid:32)atte(cid:64)(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:28)(cid:65)(cid:65)(cid:67)e(cid:64)(cid:1)(cid:35)(cid:67)(cid:64)(cid:49)(cid:54)a(cid:65)e(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:24)(cid:63)(cid:67)it(cid:71)(cid:1)
(cid:38)e(cid:49)(cid:67)(cid:64)itie(cid:65)
The principal market on which our common stock is traded is the New (cid:51)ork Stock Exchange under the symbol (cid:2)TXT.(cid:2) At
December 30, 2023, there were approximately (cid:20),200 record holders of Textron common stock.
(cid:28)(cid:65)(cid:65)(cid:67)e(cid:64)(cid:1)(cid:37)e(cid:62)(cid:67)(cid:64)(cid:49)(cid:54)a(cid:65)e(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:24)(cid:63)(cid:67)it(cid:71)(cid:1)(cid:38)e(cid:49)(cid:67)(cid:64)itie(cid:65)
The following provides information about our fourth quarter 2023 repurchases of equity securities that are registered pursuant to
Section 12 of the Securities Exchange Act of 1934, as amended:
(cid:35)e(cid:64)i(cid:61)(cid:50)(cid:1)(s(cid:47)(cid:40)(cid:57)(cid:44)s in (cid:59)(cid:47)o(cid:60)s(cid:40)n(cid:43)s)
October 1, 2023 (cid:84) November 4, 2023
November (cid:20), 2023 (cid:84) December 2, 2023
December 3, 2023 (cid:84) December 30, 2023
Total
T(cid:61)tal
N(cid:67)m(cid:48)e(cid:64)(cid:1)(cid:61)(cid:52)
(cid:38)(cid:54)a(cid:64)e(cid:65)
(cid:35)(cid:67)(cid:64)(cid:49)(cid:54)a(cid:65)e(cid:50)(cid:1)(cid:5)
(cid:20)(cid:68)e(cid:64)a(cid:53)e(cid:1)(cid:35)(cid:64)i(cid:49)e
(cid:35)ai(cid:50)(cid:1)(cid:62)e(cid:64)(cid:1)(cid:38)(cid:54)a(cid:64)e
(cid:3)e(cid:70)(cid:49)l(cid:67)(cid:50)i(cid:60)(cid:53)
(cid:49)(cid:61)mmi(cid:65)(cid:65)i(cid:61)(cid:60)(cid:65)(cid:4)
7(cid:21).41
7(cid:21).93
77.7(cid:21)
77.33
T(cid:61)tal(cid:1)N(cid:67)m(cid:48)e(cid:64)(cid:1)(cid:61)(cid:52)
(cid:38)(cid:54)a(cid:64)e(cid:65)(cid:1)(cid:35)(cid:67)(cid:64)(cid:49)(cid:54)a(cid:65)e(cid:50)(cid:1)a(cid:65)
(cid:62)a(cid:64)t(cid:1)(cid:61)(cid:52)(cid:1)(cid:35)(cid:67)(cid:48)li(cid:49)l(cid:71)
(cid:20)(cid:60)(cid:60)(cid:61)(cid:67)(cid:60)(cid:49)e(cid:50)(cid:1)(cid:35)la(cid:60)(cid:1)(cid:5)
49(cid:20)
1,07(cid:20)
2,099
3,(cid:21)(cid:21)9
(cid:32)a(cid:70)im(cid:67)m
N(cid:67)m(cid:48)e(cid:64)(cid:1)(cid:61)(cid:52)(cid:1)(cid:38)(cid:54)a(cid:64)e(cid:65)
t(cid:54)at(cid:1)ma(cid:71)(cid:1)(cid:71)et(cid:1)(cid:48)e
(cid:35)(cid:67)(cid:64)(cid:49)(cid:54)a(cid:65)e(cid:50)(cid:1)(cid:67)(cid:60)(cid:50)e(cid:64)
t(cid:54)e(cid:1)(cid:35)la(cid:60)
31,(cid:21)(cid:20)0
30,(cid:20)7(cid:20)
2(cid:23),47(cid:21)
49(cid:20) (cid:3)
1,07(cid:20)
2,099
3,(cid:21)(cid:21)9 (cid:3)
(cid:5) (cid:37)(cid:47)(cid:44)s(cid:44) s(cid:47)(cid:40)(cid:57)(cid:44)s (cid:62)(cid:44)(cid:57)(cid:44) (cid:55)(cid:60)(cid:57)(cid:42)(cid:47)(cid:40)s(cid:44)(cid:43) (cid:55)(cid:60)(cid:57)s(cid:60)(cid:40)n(cid:59) (cid:59)o (cid:40) (cid:55)l(cid:40)n (cid:40)(cid:60)(cid:59)(cid:47)o(cid:57)i(cid:65)in(cid:46) (cid:59)(cid:47)(cid:44) (cid:57)(cid:44)(cid:55)(cid:60)(cid:57)(cid:42)(cid:47)(cid:40)s(cid:44)s o(cid:45) (cid:60)(cid:55) (cid:59)o (cid:13)(cid:15) million s(cid:47)(cid:40)(cid:57)(cid:44)s o(cid:45) (cid:37)(cid:44)(cid:63)(cid:59)(cid:57)on (cid:42)ommon s(cid:59)o(cid:42)(cid:50) (cid:59)(cid:47)(cid:40)(cid:59) (cid:62)(cid:40)s (cid:40)(cid:55)(cid:55)(cid:57)o(cid:61)(cid:44)(cid:43) on (cid:29)(cid:60)l(cid:64) (cid:12)(cid:14)(cid:6)
(cid:12)(cid:10)(cid:12)(cid:13) (cid:41)(cid:64) o(cid:60)(cid:57) (cid:21)o(cid:40)(cid:57)(cid:43) o(cid:45) (cid:23)i(cid:57)(cid:44)(cid:42)(cid:59)o(cid:57)s(cid:8) (cid:37)(cid:47)is s(cid:47)(cid:40)(cid:57)(cid:44) (cid:57)(cid:44)(cid:55)(cid:60)(cid:57)(cid:42)(cid:47)(cid:40)s(cid:44) (cid:55)(cid:57)o(cid:46)(cid:57)(cid:40)m (cid:47)(cid:40)s no (cid:44)(cid:63)(cid:55)i(cid:57)(cid:40)(cid:59)ion (cid:43)(cid:40)(cid:59)(cid:44)(cid:8)
18 Textron 2023 Annual Report
1(cid:23)
(cid:38)t(cid:61)(cid:49)(cid:57)(cid:1)(cid:35)e(cid:64)(cid:52)(cid:61)(cid:64)ma(cid:60)(cid:49)e(cid:1)(cid:26)(cid:64)a(cid:62)(cid:54)
(cid:38)t(cid:61)(cid:49)(cid:57)(cid:1)(cid:35)e(cid:64)(cid:52)(cid:61)(cid:64)ma(cid:60)(cid:49)e(cid:1)(cid:26)(cid:64)a(cid:62)(cid:54)
The following graph compares the total return on a cumulative basis at the end of each year of (cid:3)100 invested in our common stock
The following graph compares the total return on a cumulative basis at the end of each year of (cid:3)100 invested in our common stock
on December 31, 201(cid:23) with the Standard (cid:5) Poor(cid:88)s (S(cid:5)P) (cid:20)00 Stock Index, the S(cid:5)P (cid:20)00 Aerospace (cid:5) Defense (A(cid:5)D) Index and
on December 31, 201(cid:23) with the Standard (cid:5) Poor(cid:88)s (S(cid:5)P) (cid:20)00 Stock Index, the S(cid:5)P (cid:20)00 Aerospace (cid:5) Defense (A(cid:5)D) Index and
the S(cid:5)P (cid:20)00 Industrials Index, all of which include Textron. The values calculated assume dividend reinvestment.
the S(cid:5)P (cid:20)00 Industrials Index, all of which include Textron. The values calculated assume dividend reinvestment.
Textron Inc.
Textron Inc.
S(cid:5)P (cid:20)00
S(cid:5)P (cid:20)00
S(cid:5)P (cid:20)00 A(cid:5)D
S(cid:5)P (cid:20)00 A(cid:5)D
S(cid:5)P (cid:20)00 Industrials
S(cid:5)P (cid:20)00 Industrials
(cid:3)240.00
(cid:3)240.00
(cid:3)210.00
(cid:3)210.00
(cid:3)1(cid:23)0.00
(cid:3)1(cid:23)0.00
(cid:3)1(cid:20)0.00
(cid:3)1(cid:20)0.00
(cid:3)120.00
(cid:3)120.00
(cid:3)90.00
(cid:3)90.00
Textron Inc.
Textron Inc.
S(cid:5)P (cid:20)00
S(cid:5)P (cid:20)00
S(cid:5)P (cid:20)00 A(cid:5)D
S(cid:5)P (cid:20)00 A(cid:5)D
S(cid:5)P (cid:20)00 Industrials
S(cid:5)P (cid:20)00 Industrials
(cid:28)tem(cid:1)(cid:15)(cid:8)(cid:1)(cid:45)(cid:37)e(cid:65)e(cid:64)(cid:68)e(cid:50)(cid:46)
(cid:28)tem(cid:1)(cid:15)(cid:8)(cid:1)(cid:45)(cid:37)e(cid:65)e(cid:64)(cid:68)e(cid:50)(cid:46)
(cid:3)
(cid:3)
(cid:11)(cid:9)(cid:10)(cid:17)
(cid:11)(cid:9)(cid:10)(cid:17)
100.00 (cid:3)
100.00 (cid:3)
100.00
100.00
100.00
100.00
100.00
100.00
(cid:11)(cid:9)(cid:10)(cid:18)
(cid:11)(cid:9)(cid:10)(cid:18)
9(cid:23).17 (cid:3)
9(cid:23).17 (cid:3)
132.(cid:23)2
132.(cid:23)2
137.1(cid:21)
137.1(cid:21)
133.(cid:20)2
133.(cid:20)2
(cid:11)(cid:9)(cid:11)(cid:9)
(cid:11)(cid:9)(cid:11)(cid:9)
10(cid:21).29 (cid:3)
10(cid:21).29 (cid:3)
1(cid:20)7.02
1(cid:20)7.02
110.(cid:23)4
110.(cid:23)4
1(cid:21)4.01
1(cid:21)4.01
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:10)
170.00 (cid:3)
170.00 (cid:3)
202.09
202.09
12(cid:20).(cid:20)0
12(cid:20).(cid:20)0
209.7(cid:21)
209.7(cid:21)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
1(cid:20)(cid:21).09 (cid:3)
1(cid:20)(cid:21).09 (cid:3)
1(cid:21)(cid:20).49
1(cid:21)(cid:20).49
147.30
147.30
1(cid:21)9.0(cid:21)
1(cid:21)9.0(cid:21)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
177.49
177.49
209.00
209.00
1(cid:20)7.27
1(cid:20)7.27
220.(cid:20)2
220.(cid:20)2
19
19
Textron 2023 Annual Report 19
Table of Contents
(cid:28)tem(cid:1)(cid:16)(cid:8)(cid:1)(cid:32)a(cid:60)a(cid:53)eme(cid:60)t(cid:74)(cid:65)(cid:1)(cid:23)i(cid:65)(cid:49)(cid:67)(cid:65)(cid:65)i(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:20)(cid:60)al(cid:71)(cid:65)i(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:22)(cid:61)(cid:60)(cid:50)iti(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:37)e(cid:65)(cid:67)lt(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:34)(cid:62)e(cid:64)ati(cid:61)(cid:60)(cid:65)
(cid:34)(cid:68)e(cid:64)(cid:68)ie(cid:69)
In 2023, Textron(cid:88)s revenues increased (cid:21)(cid:4), compared with 2022, reflecting the impact of higher pricing, principally at the Textron
Aviation, Industrial and Bell segments, and higher volume and mix at the Industrial segment. Segment profit increased 17(cid:4),
compared with 2022, largely due to higher pricing, net of inflation at the Textron Aviation and Industrial segments. Our backlog
increased (cid:20)(cid:4) in 2023 to (cid:3)13.9 billion, which included a (cid:3)7(cid:23)2 million increase at the Textron Aviation segment. During 2023, we
continued to manage through the impacts of ongoing global supply chain shortages/delays and labor shortages to deliver products
to our customers. Financial highlights for 2023 also include:
(cid:83)
(cid:83)
(cid:83)
Generated (cid:3)1.3 billion of net cash from operating activities from our manufacturing businesses.
Invested (cid:3)(cid:20)70 million in research and development pro(cid:65)ects and (cid:3)402 million in capital expenditures.
Returned (cid:3)1.2 billion to our shareholders through the repurchase of 1(cid:21).2 million shares of our common stock.
For an overview of our business segments, including a discussion of our ma(cid:65)or products and services, refer to Item 1. Business. A
discussion of our financial condition and operating results for 2023 compared with 2022 is provided below, while a discussion of
2022 compared with 2021 can be found in Item 7. Management(cid:88)s Discussion and Analysis of Financial Condition and Results of
Operations of our Annual Report on Form 10-K for the year ended December 31, 2022.
Beginning in 2023, we changed how we measure our segment profit for the manufacturing segments, as discussed in the Segment
Analysis section below. As a result of this change, the prior periods have been recast to conform to this presentation. The impact
of the change in the segment profit measure on the narrative discussion of fluctuations in segment profit provided in Item 7.
Management(cid:88)s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for
the year ended December 31, 2022 was insignificant.
The following discussion should be read in con(cid:65)unction with our Consolidated Financial Statements and related Notes included in
Item (cid:23). Financial Statements and Supplementary Data.
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:37)e(cid:65)(cid:67)lt(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:34)(cid:62)e(cid:64)ati(cid:61)(cid:60)(cid:65)
((cid:23)oll(cid:40)(cid:57)s in millions)
Revenues
Cost of sales
Gross margin as a percentage of Manufacturing revenues
Selling and administrative expense
Interest expense, net
Special charges
Non-service components of pension and postretirement
income, net
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
13,(cid:21)(cid:23)3 (cid:3)
11,40(cid:20)
1(cid:21).3(cid:4)
1,22(cid:20)
77
12(cid:21)
(cid:11)(cid:9)(cid:11)(cid:11)
12,(cid:23)(cid:21)9 (cid:3)
10,(cid:23)00
1(cid:20).7(cid:4)
1,1(cid:23)(cid:21)
107
(cid:85)
(cid:11)(cid:9)(cid:11)(cid:10)
12,3(cid:23)2
10,297
1(cid:21).(cid:20)(cid:4)
1,221
142
2(cid:20)
(cid:2)(cid:1)(cid:22)(cid:54)a(cid:60)(cid:53)e
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:21) (cid:4)
(cid:21) (cid:4)
3 (cid:4)
(2(cid:23)) (cid:4)
(cid:85)
(cid:11)(cid:9)(cid:11)(cid:11)
4 (cid:4)
(cid:20) (cid:4)
(3) (cid:4)
(2(cid:20)) (cid:4)
(cid:85)
237
240
1(cid:20)9
(1) (cid:4)
(cid:20)1 (cid:4)
(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
Revenues increased (cid:3)(cid:23)14 million, (cid:21)(cid:4), in 2023, compared with 2022. The revenue increase primarily included the following
factors:
(cid:83)
(cid:83)
(cid:83)
(cid:83)
(cid:34)igher Industrial revenues of (cid:3)37(cid:21) million due to higher volume and mix of (cid:3)2(cid:23)0 million across both product lines and a
favorable impact from pricing of (cid:3)99 million.
(cid:34)igher Textron Aviation revenues of (cid:3)300 million, reflecting higher pricing of (cid:3)33(cid:20) million, partially offset by lower
volume and mix of (cid:3)3(cid:20) million.
(cid:34)igher Textron Systems revenues of (cid:3)(cid:21)3 million, primarily due to higher volume of (cid:3)44 million.
(cid:34)igher Bell revenues of (cid:3)(cid:20)(cid:21) million, reflecting higher pricing of (cid:3)(cid:21)(cid:23) million, partially offset by lower volume and mix of
(cid:3)12 million.
(cid:22)(cid:61)(cid:65)t(cid:1)(cid:61)(cid:52)(cid:1)(cid:38)ale(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:38)elli(cid:60)(cid:53)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:20)(cid:50)mi(cid:60)i(cid:65)t(cid:64)ati(cid:68)e(cid:1)(cid:24)(cid:70)(cid:62)e(cid:60)(cid:65)e
Cost of sales includes cost of products and services sold for the Manufacturing group. In 2023, cost of sales increased (cid:3)(cid:21)0(cid:20)
million, (cid:21)(cid:4), compared with 2022, largely due to the impact of higher net volume and mix described above, and (cid:3)2(cid:20)7 million of
inflation. Gross margin as a percentage of Manufacturing revenues increased (cid:21)0 basis points in 2023, compared with 2022, largely
due to higher margins at the Industrial, Bell and Textron Aviation segments.
20 Textron 2023 Annual Report
20
Selling and administrative expense increased (cid:3)39 million, 3(cid:4), in 2023, compared with 2022, primarily reflecting higher share-
based compensation expense and (cid:3)27 million of inflation, largely in labor costs, partially offset by a (cid:3)17 million recovery of
amounts that were previously written off related to one customer relationship at the Finance segment.
(cid:28)(cid:60)te(cid:64)e(cid:65)t(cid:1)(cid:24)(cid:70)(cid:62)e(cid:60)(cid:65)e(cid:6)(cid:1)Net
Interest expense, net includes interest expense for both the Finance and Manufacturing borrowing groups, with interest on
intercompany borrowings eliminated, and interest income earned on cash and equivalents for the Manufacturing borrowing group.
In 2023, interest expense, net decreased (cid:3)30 million, 2(cid:23)(cid:4), compared with 2022, primarily due to an increase in interest income of
(cid:3)34 million. For 2023, 2022 and 2021, gross interest expense totaled (cid:3)133 million, (cid:3)129 million and (cid:3)142 million, respectively.
(cid:38)(cid:62)e(cid:49)ial(cid:1)(cid:22)(cid:54)a(cid:64)(cid:53)e(cid:65)
Special charges include restructuring activities and asset impairment charges as described in Note 1(cid:21) to the Consolidated
Financial Statements in Item (cid:23). Financial Statements and Supplementary Data.
N(cid:61)(cid:60)(cid:7)(cid:65)e(cid:64)(cid:68)i(cid:49)e(cid:1)(cid:22)(cid:61)m(cid:62)(cid:61)(cid:60)e(cid:60)t(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:28)(cid:60)(cid:49)(cid:61)me(cid:6)(cid:1)Net
Non-service components of pension and postretirement income, net decreased by (cid:3)3 million, 1(cid:4), in 2023, compared with 2022.
(cid:28)(cid:60)(cid:49)(cid:61)me(cid:1)Ta(cid:70)e(cid:65)
Effective tax rate
(cid:11)(cid:9)(cid:11)(cid:12)
1(cid:20).2(cid:4)
(cid:11)(cid:9)(cid:11)(cid:11)
1(cid:20).2(cid:4)
(cid:11)(cid:9)(cid:11)(cid:10)
14.4(cid:4)
In 2023 and 2022, the effective tax rate of 1(cid:20).2(cid:4) was lower than the (cid:47).S. federal statutory tax rate of 21(cid:4), largely due to the
favorable impact of research and development credits and tax deductions for foreign-derived intangible income.
For a full reconciliation of our effective tax rate to the (cid:47).S. federal statutory tax rate, see Note 17 to the Consolidated Financial
Statements in Item (cid:23). Financial Statements and Supplementary Data.
(cid:38)e(cid:53)me(cid:60)t(cid:1)(cid:20)(cid:60)al(cid:71)(cid:65)i(cid:65)
(cid:49)e conduct our business through six operating segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation
and Finance. Segment profit is an important measure used for evaluating performance and for decision-making purposes.
Beginning in 2023, we changed how we measure our segment profit for the manufacturing segments to exclude the non-service
components of pension and postretirement income, net(cid:26) LIFO inventory provision(cid:26) and intangible asset amorti(cid:81)ation. This
measure also continues to exclude interest expense, net for Manufacturing group(cid:26) certain corporate expenses(cid:26) gains/losses on
ma(cid:65)or business dispositions(cid:26) and special charges. The prior periods have been recast to conform to this presentation. The
measurement for the Finance segment includes interest income and expense along with intercompany interest income and
expense. Operating expenses for the Manufacturing segments include cost of sales and selling and administrative expense, while
excluding certain corporate expenses, LIFO inventory provision, intangible asset amorti(cid:81)ation and special charges.
In our discussion of comparative results for the Manufacturing group, changes in revenues and segment profit for our commercial
businesses typically are expressed in terms of volume and mix, pricing, foreign exchange, acquisitions and dispositions, inflation
and performance. For revenues, volume and mix represents changes in revenues from increases or decreases in the number of
units delivered or services provided and the composition of products and/or services sold. For segment profit, volume and mix
represents a change due to the number of units delivered or services provided and the composition of products and/or services
sold at different profit margins. Pricing represents changes in unit pricing. Foreign exchange is the change resulting from
translating foreign-denominated amounts into (cid:47).S. dollars at exchange rates that are different from the prior period. Revenues
generated by acquired businesses are reflected in Acquisitions for a twelve-month period, while reductions in revenues and
segment profit from the sale of businesses are reflected as Dispositions. Inflation represents higher material, wages, benefits,
pension service cost or other costs. Performance reflects an increase or decrease in research and development, depreciation,
selling and administrative costs, warranty, product liability, quality/scrap, labor efficiency, overhead, product line profitability,
start-up, ramp up and cost-reduction initiatives or other manufacturing inputs.
Approximately 21(cid:4) of our 2023 revenues were derived from contracts with the (cid:47).S. Government, including those under the (cid:47).S.
Government-sponsored foreign military sales program. For our segments that contract with the (cid:47).S. Government, changes in
revenues related to these contracts are expressed in terms of volume. Changes in segment profit for these contracts are typically
expressed in terms of volume and mix and performance(cid:26) these include cumulative catch-up ad(cid:65)ustments associated with a)
revisions to the transaction price that may reflect contract modifications or changes in assumptions related to award fees and other
variable consideration or b) changes in the total estimated costs at completion due to improved or deteriorated operating
performance.
Textron 2023 Annual Report 21
21
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:20)(cid:68)iati(cid:61)(cid:60)
((cid:23)oll(cid:40)(cid:57)s in millions)
Revenues:
Aircraft
Aftermarket parts and services
Total revenues
Operating expenses
Segment profit
Profit margin
Backlog
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:3)
(cid:3)
(cid:3)
3,(cid:20)77 (cid:3)
1,79(cid:21)
(cid:20),373
4,724
(cid:21)49 (cid:3)
3,3(cid:23)7 (cid:3)
1,(cid:21)(cid:23)(cid:21)
(cid:20),073
4,(cid:20)13
(cid:20)(cid:21)0 (cid:3)
12.1(cid:4)
7,1(cid:21)9 (cid:3)
11.0(cid:4)
(cid:21),3(cid:23)7 (cid:3)
3,11(cid:21)
1,4(cid:20)0
4,(cid:20)(cid:21)(cid:21)
4,217
349
7.(cid:21)(cid:4)
4,120
(cid:2)(cid:1)(cid:22)(cid:54)a(cid:60)(cid:53)e
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:21) (cid:4)
7 (cid:4)
(cid:21) (cid:4)
(cid:20) (cid:4)
1(cid:21) (cid:4)
12 (cid:4)
(cid:11)(cid:9)(cid:11)(cid:11)
9 (cid:4)
1(cid:21) (cid:4)
11 (cid:4)
7 (cid:4)
(cid:21)0 (cid:4)
(cid:20)(cid:20) (cid:4)
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:20)(cid:68)iati(cid:61)(cid:60)(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)(cid:62)e(cid:64)ati(cid:60)(cid:53)(cid:1)(cid:24)(cid:70)(cid:62)e(cid:60)(cid:65)e(cid:65)
Factors contributing to the 2023 year-over-year revenue change are provided below:
(In millions)
Pricing
Volume and mix
Total change
(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)(cid:68)e(cid:64)(cid:65)(cid:67)(cid:65)
(cid:11)(cid:9)(cid:11)(cid:11)
33(cid:20)
(3(cid:20))
300
(cid:3)
(cid:3)
Textron Aviation(cid:88)s revenues increased (cid:3)300 million, (cid:21)(cid:4), in 2023, compared with 2022, reflecting higher pricing of (cid:3)33(cid:20) million,
partially offset by lower volume and mix of (cid:3)3(cid:20) million. Volume and mix included lower Citation (cid:65)et and pre-owned volume,
partially offset by higher defense, aftermarket, commercial turboprop and other aircraft volume. (cid:49)e delivered 1(cid:21)(cid:23) Citation (cid:65)ets
and 1(cid:20)3 commercial turboprops in 2023, compared with 17(cid:23) Citation (cid:65)ets and 14(cid:21) commercial turboprops in 2022.
Textron Aviation(cid:88)s operating expenses increased (cid:3)211 million, (cid:20)(cid:4), in 2023, compared with 2022, largely reflecting inflation of
(cid:3)17(cid:21) million.
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:20)(cid:68)iati(cid:61)(cid:60)(cid:1)(cid:38)e(cid:53)me(cid:60)t(cid:1)(cid:35)(cid:64)(cid:61)(cid:52)it
Factors contributing to 2023 year-over-year segment profit change are provided below:
(In millions)
Pricing, net of inflation
Volume and mix
Performance
Total change
(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)(cid:68)e(cid:64)(cid:65)(cid:67)(cid:65)
(cid:11)(cid:9)(cid:11)(cid:11)
1(cid:20)9
9
(79)
(cid:23)9
(cid:3)
(cid:3)
Textron Aviation(cid:88)s segment profit increased (cid:3)(cid:23)9 million, 1(cid:21)(cid:4), in 2023, compared with 2022, due to favorable pricing, net of
inflation of (cid:3)1(cid:20)9 million and a favorable impact from the mix of products and services sold, partially offset by an unfavorable
impact from performance of (cid:3)79 million, largely related to supply chain and labor inefficiencies.
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:20)(cid:68)iati(cid:61)(cid:60)(cid:1)(cid:21)a(cid:49)(cid:57)l(cid:61)(cid:53)
Textron Aviation(cid:88)s backlog increased (cid:3)7(cid:23)2 million in 2023, reflecting orders in excess of deliveries.
22 Textron 2023 Annual Report
22
(cid:21)ell
((cid:23)oll(cid:40)(cid:57)s in millions)
Revenues:
Military aircraft and support programs
Commercial helicopters, parts and services
Total revenues
Operating expenses
Segment profit
Profit margin
Backlog
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:2)(cid:1)(cid:22)(cid:54)a(cid:60)(cid:53)e
(cid:3)
(cid:3)
(cid:3)
1,701 (cid:3)
1,44(cid:21)
3,147
2,(cid:23)27
320 (cid:3)
10.2(cid:4)
4,7(cid:23)0 (cid:3)
1,740 (cid:3)
1,3(cid:20)1
3,091
2,(cid:23)09
2(cid:23)2 (cid:3)
9.1(cid:4)
4,7(cid:23)1 (cid:3)
2,073
1,291
3,3(cid:21)4
2,9(cid:21)(cid:20)
399
11.9(cid:4)
3,(cid:23)71
(2) (cid:4)
7 (cid:4)
2 (cid:4)
1 (cid:4)
13 (cid:4)
(1(cid:21)) (cid:4)
(cid:20) (cid:4)
((cid:23)) (cid:4)
((cid:20)) (cid:4)
(29) (cid:4)
0 (cid:4)
24 (cid:4)
A significant portion of Bell(cid:88)s military aircraft and support program revenues has been from the (cid:47).S. Government for the V-22
tiltrotor aircraft and the (cid:34)-1 helicopter platforms. (cid:47)nder current contracts, production of the V-22 tiltrotor aircraft is expected to
end with final deliveries in the next two years after which this program will transition to the support stage. For the (cid:34)-1 helicopter,
final deliveries under the current contract are expected to be completed in early 2024, fully transitioning this platform to the
support stage. In December 2022, Bell was awarded the development contract for the (cid:47).S. Army(cid:6)s FLRAA program, which has
begun to represent an increasing portion of Bell(cid:88)s military aircraft and support program revenues.
(cid:21)ell(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)(cid:62)e(cid:64)ati(cid:60)(cid:53)(cid:1)(cid:24)(cid:70)(cid:62)e(cid:60)(cid:65)e(cid:65)
Factors contributing to the 2023 year-over-year revenue change are provided below:
(In millions)
Pricing
Volume and mix
Total change
(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)(cid:68)e(cid:64)(cid:65)(cid:67)(cid:65)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:21)(cid:23)
(12)
(cid:20)(cid:21)
(cid:3)
(cid:3)
Bell(cid:88)s revenues increased (cid:3)(cid:20)(cid:21) million, 2(cid:4), in 2023, compared with 2022, reflecting higher pricing of (cid:3)(cid:21)(cid:23) million, partially offset
by lower volume and mix of (cid:3)12 million. Volume and mix included lower military volume of (cid:3)39 million, as higher volume from
the FLRAA program was more than offset by lower volume on the V-22 and (cid:34)-1 programs. Commercial volume and mix
increased (cid:3)27 million, reflecting a favorable mix as we delivered 171 commercial helicopters in 2023, compared with 179
commercial helicopters in 2022.
Bell(cid:88)s operating expenses increased (cid:3)1(cid:23) million, 1(cid:4), in 2023, compared with 2022, primarily due to inflation of (cid:3)(cid:20)(cid:20) million and
higher operating expenses due to the mix of products and services sold, partially offset by lower research and development costs
described below.
(cid:21)ell(cid:1)(cid:38)e(cid:53)me(cid:60)t(cid:1)(cid:35)(cid:64)(cid:61)(cid:52)it
Factors contributing to 2023 year-over-year segment profit change are provided below:
(In millions)
Performance
Pricing, net of inflation
Volume and mix
Total change
(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)(cid:68)e(cid:64)(cid:65)(cid:67)(cid:65)
(cid:11)(cid:9)(cid:11)(cid:11)
74
13
(49)
3(cid:23)
(cid:3)
(cid:3)
Bell(cid:88)s segment profit increased (cid:3)3(cid:23) million, 13(cid:4), in 2023, compared with 2022, largely reflecting a favorable impact from
performance of (cid:3)74 million, which included (cid:3)(cid:23)4 million of lower research and development costs, partially offset by lower
volume and mix described above.
23
Textron 2023 Annual Report 23
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:38)(cid:71)(cid:65)tem(cid:65)
((cid:23)oll(cid:40)(cid:57)s in millions)
Revenues
Operating expenses
Segment profit
Profit margin
Backlog
(cid:11)(cid:9)(cid:11)(cid:12)
1,23(cid:20) (cid:3)
1,0(cid:23)(cid:23)
147 (cid:3)
11.9(cid:4)
1,9(cid:20)0 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:11)
1,172 (cid:3)
1,040
132 (cid:3)
11.3(cid:4)
2,09(cid:23) (cid:3)
(cid:11)(cid:9)(cid:11)(cid:10)
1,273
1,09(cid:20)
17(cid:23)
14.0(cid:4)
2,144
(cid:3)
(cid:3)
(cid:3)
(cid:2)(cid:1)(cid:22)(cid:54)a(cid:60)(cid:53)e
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:20) (cid:4)
(cid:20) (cid:4)
11 (cid:4)
(cid:11)(cid:9)(cid:11)(cid:11)
((cid:23)) (cid:4)
((cid:20)) (cid:4)
(2(cid:21)) (cid:4)
(7) (cid:4)
(2) (cid:4)
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:38)(cid:71)(cid:65)tem(cid:65)(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)(cid:62)e(cid:64)ati(cid:60)(cid:53)(cid:1)(cid:24)(cid:70)(cid:62)e(cid:60)(cid:65)e(cid:65)
Factors contributing to the 2023 year-over-year revenue change are provided below:
(In millions)
Volume and mix
Pricing
Total change
(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)(cid:68)e(cid:64)(cid:65)(cid:67)(cid:65)
(cid:11)(cid:9)(cid:11)(cid:11)
44
19
(cid:21)3
(cid:3)
(cid:3)
Revenues at Textron Systems increased (cid:3)(cid:21)3 million, (cid:20)(cid:4), in 2023, compared with 2022, primarily due to higher volume and mix,
which was principally related to weapons products.
Textron Systems(cid:88) operating expenses increased (cid:3)4(cid:23) million, (cid:20)(cid:4), in 2023, compared with 2022, largely related to higher volume
and mix described above.
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:38)(cid:71)(cid:65)tem(cid:65)(cid:1)(cid:38)e(cid:53)me(cid:60)t(cid:1)(cid:35)(cid:64)(cid:61)(cid:52)it
Factors contributing to 2023 year-over-year segment profit change are provided below:
(In millions)
Performance
Pricing, net of inflation
Volume and mix
Total change
(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)(cid:68)e(cid:64)(cid:65)(cid:67)(cid:65)
(cid:11)(cid:9)(cid:11)(cid:11)
10
10
((cid:20))
1(cid:20)
(cid:3)
(cid:3)
Textron Systems(cid:88) segment profit increased (cid:3)1(cid:20) million, 11(cid:4), in 2023, compared with 2022, due to a favorable impact from
performance of (cid:3)10 million and higher pricing, net of inflation of (cid:3)10 million, partially offset by an unfavorable impact from the
mix of products and services sold.
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:3)
(cid:3)
1,9(cid:20)4 (cid:3)
1,(cid:23)(cid:23)7
3,(cid:23)41
3,(cid:21)13
22(cid:23) (cid:3)
(cid:20).9(cid:4)
1,771 (cid:3)
1,(cid:21)94
3,4(cid:21)(cid:20)
3,310
1(cid:20)(cid:20) (cid:3)
4.(cid:20)(cid:4)
1,73(cid:20)
1,39(cid:20)
3,130
3,010
120
3.(cid:23)(cid:4)
(cid:2)(cid:1)(cid:22)(cid:54)a(cid:60)(cid:53)e
(cid:11)(cid:9)(cid:11)(cid:12)
10 (cid:4)
11 (cid:4)
11 (cid:4)
9 (cid:4)
47 (cid:4)
(cid:11)(cid:9)(cid:11)(cid:11)
2 (cid:4)
21 (cid:4)
11 (cid:4)
10 (cid:4)
29 (cid:4)
(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)ial
((cid:23)oll(cid:40)(cid:57)s in millions)
Revenues:
Kautex
Speciali(cid:81)ed Vehicles
Total revenues
Operating expenses
Segment profit
Profit margin
24 Textron 2023 Annual Report
24
(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)ial(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)(cid:62)e(cid:64)ati(cid:60)(cid:53)(cid:1)(cid:24)(cid:70)(cid:62)e(cid:60)(cid:65)e(cid:65)
Factors contributing to the 2023 year-over-year revenue change are provided below:
(In millions)
Volume and mix
Pricing
Foreign exchange
Total change
(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)(cid:68)e(cid:64)(cid:65)(cid:67)(cid:65)
(cid:11)(cid:9)(cid:11)(cid:11)
2(cid:23)0
99
(3)
37(cid:21)
(cid:3)
(cid:3)
Industrial segment revenues increased (cid:3)37(cid:21) million, 11(cid:4), in 2023, compared with 2022, largely due to higher volume and mix of
(cid:3)2(cid:23)0 million across both product lines and a favorable impact of (cid:3)99 million from pricing, principally in the Speciali(cid:81)ed Vehicles
product line.
Operating expenses for the Industrial segment increased (cid:3)303 million, 9(cid:4), in 2023 compared with 2022, primarily reflecting the
impact of higher volume and mix described above.
(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)ial(cid:1)(cid:38)e(cid:53)me(cid:60)t(cid:1)(cid:35)(cid:64)(cid:61)(cid:52)it
Factors contributing to 2023 year-over-year segment profit change are provided below:
(In millions)
Pricing, net of inflation
Volume and mix
Foreign exchange
Performance
Total change
(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)(cid:68)e(cid:64)(cid:65)(cid:67)(cid:65)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:20)(cid:23)
(cid:20)4
1
(40)
73
(cid:3)
(cid:3)
Segment profit for the Industrial segment increased (cid:3)73 million, 47(cid:4), in 2023, compared with 2022, largely due to a favorable
impact from pricing, net of inflation of (cid:3)(cid:20)(cid:23) million, principally in the Speciali(cid:81)ed Vehicles product line, and higher volume and
mix of (cid:3)(cid:20)4 million as described above, partially offset by an unfavorable impact of (cid:3)40 million from performance.
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)e(cid:20)(cid:68)iati(cid:61)(cid:60)
((cid:23)oll(cid:40)(cid:57)s in millions)
Revenues
Operating expenses
Segment loss
(cid:11)(cid:9)(cid:11)(cid:12)
32 (cid:3)
9(cid:20)
((cid:21)3) (cid:3)
(cid:11)(cid:9)(cid:11)(cid:11)
1(cid:21) (cid:3)
40
(24) (cid:3)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:85)
(cid:85)
(cid:85)
(cid:3)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
100 (cid:4)
13(cid:23) (cid:4)
1(cid:21)3 (cid:4)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:85)
(cid:85)
(cid:85)
(cid:2)(cid:1)(cid:22)(cid:54)a(cid:60)(cid:53)e
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)e(cid:20)(cid:68)iati(cid:61)(cid:60)(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)(cid:62)e(cid:64)ati(cid:60)(cid:53)(cid:1)(cid:24)(cid:70)(cid:62)e(cid:60)(cid:65)e(cid:65)
Factors contributing to the 2023 year-over-year revenue change are provided below:
(In millions)
Volume and mix
Acquisition
Other
Total change
(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)(cid:68)e(cid:64)(cid:65)(cid:67)(cid:65)
(cid:11)(cid:9)(cid:11)(cid:11)
9
4
3
1(cid:21)
(cid:3)
(cid:3)
Textron eAviation segment revenues increased (cid:3)1(cid:21) million in 2023, compared with 2022, primarily reflecting higher volume and
mix.
Textron eAviation(cid:6)s operating expenses increased (cid:3)(cid:20)(cid:20) million in 2023, compared with 2022, primarily related to higher research
and development costs.
2(cid:20)
Textron 2023 Annual Report 25
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)e(cid:20)(cid:68)iati(cid:61)(cid:60)(cid:1)(cid:38)e(cid:53)me(cid:60)t(cid:1)(cid:31)(cid:61)(cid:65)(cid:65)
Factors contributing to 2023 year-over-year segment loss change are provided below:
(In millions)
Performance and other
Volume and mix
Total change
(cid:11)(cid:9)(cid:11)(cid:12)(cid:1)(cid:68)e(cid:64)(cid:65)(cid:67)(cid:65)
(cid:11)(cid:9)(cid:11)(cid:11)
(43)
4
(39)
(cid:3)
(cid:3)
Textron eAviation(cid:6)s segment loss increased (cid:3)39 million in 2023, compared with 2022, largely due to an unfavorable impact from
performance and other, primarily reflecting higher research and development costs.
(cid:25)i(cid:60)a(cid:60)(cid:49)e
(In millions)
Revenues
Segment profit
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:20)(cid:20) (cid:3)
4(cid:21)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:20)2 (cid:3)
31
(cid:11)(cid:9)(cid:11)(cid:10)
49
1(cid:23)
Finance segment revenues increased (cid:3)3 million and segment profit increased (cid:3)1(cid:20) million in 2023, compared with 2022. The
increase in segment profit was largely due to a (cid:3)17 million recovery of amounts that were previously written off related to one
customer relationship. The following table reflects information about the Finance segment(cid:88)s credit performance related to finance
receivables.
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:21)09 (cid:3)
24
3.94 (cid:4)
1(cid:20)
2.4(cid:21) (cid:4)
4
0.(cid:21)(cid:21) (cid:4)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:20)(cid:23)7
24
4.09 (cid:4)
4(cid:21)
7.(cid:23)4 (cid:4)
1
0.17 (cid:4)
((cid:23)oll(cid:40)(cid:57)s in millions)
Finance receivables
Allowance for credit losses
Ratio of allowance for credit losses to finance receivables
Nonaccrual finance receivables
Ratio of nonaccrual finance receivables to finance receivables
(cid:21)0(cid:10) days contractual delinquency
(cid:21)0(cid:10) days contractual delinquency as a percentage of finance receivables
26 Textron 2023 Annual Report
2(cid:21)
(cid:31)i(cid:63)(cid:67)i(cid:50)it(cid:71)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:22)a(cid:62)ital(cid:1)(cid:37)e(cid:65)(cid:61)(cid:67)(cid:64)(cid:49)e(cid:65)
Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron consolidated
with its ma(cid:65)ority-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. (cid:49)e 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 products and services, while our Finance group
provides financial services. Due to the fundamental differences between each borrowing group(cid:88)s activities, investors, rating
agencies and analysts use different measures to evaluate each group(cid:88)s performance. To support those evaluations, we present
balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.
(cid:20)(cid:65)(cid:65)e(cid:65)(cid:65)me(cid:60)t(cid:1)(cid:61)(cid:52)(cid:1)(cid:31)i(cid:63)(cid:67)i(cid:50)it(cid:71)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:38)i(cid:53)(cid:60)i(cid:52)i(cid:49)a(cid:60)t(cid:1)(cid:25)(cid:67)t(cid:67)(cid:64)e(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:37)e(cid:63)(cid:67)i(cid:64)eme(cid:60)t(cid:65)
Key information that is utili(cid:81)ed in assessing our liquidity is summari(cid:81)ed below:
((cid:23)oll(cid:40)(cid:57)s in millions)
(cid:32)a(cid:60)(cid:67)(cid:52)a(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)
Cash and equivalents
Debt
Shareholders(cid:88) equity
Capital (debt plus shareholders(cid:88) equity)
Net debt (net of cash and equivalents) to capital
Debt to capital
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)
Cash and equivalents
Debt
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:3)
(cid:3)
2,121 (cid:3)
3,(cid:20)2(cid:21)
(cid:21),9(cid:23)7
10,(cid:20)13
17(cid:4)
34(cid:4)
1,9(cid:21)3
3,1(cid:23)2
7,113
10,29(cid:20)
1(cid:20)(cid:4)
31(cid:4)
(cid:21)0 (cid:3)
34(cid:23)
72
37(cid:20)
(cid:49)e believe that our calculations of debt to capital and net debt to capital are useful measures as they provide a summary
indication of the level of debt financing (i.e., leverage) that is in place to support our capital structure, as well as to provide an
indication of our capacity to add further leverage.
(cid:49)e expect to have sufficient cash to meet our needs based on our existing cash balances, the cash we expect to generate from our
manufacturing operations and the availability of our existing credit facility. In addition to our manufacturing operating cash
requirements, future material cash outlays include our contractual combined debt and interest payments for the Manufacturing
group of (cid:3)4(cid:23)3 million in 2024, (cid:3)4(cid:21)7 million in 202(cid:20), (cid:3)4(cid:20)2 million in 202(cid:21) and (cid:3)2.(cid:23) billion thereafter, and for the Finance Group
of (cid:3)32 million in 2024, (cid:3)49 million in 202(cid:20), (cid:3)22 million in 202(cid:21) and (cid:3)(cid:21)13 million thereafter.
For the Manufacturing Group, we also have purchase obligations that require material future cash outlays totaling (cid:3)2.9 billion in
2024, (cid:3)44(cid:20) million in 202(cid:20) and (cid:3)107 million thereafter. Purchase obligations include undiscounted amounts committed under
legally enforceable contracts or purchase orders for goods and services with defined terms as to price, quantity and delivery dates,
as well as property, plant and equipment. Approximately 14(cid:4) of our purchase obligations represent purchase orders issued for
goods and services to be delivered under firm contracts with the (cid:47).S. Government for which we have full recourse under
customary contract termination clauses.
(cid:22)(cid:64)e(cid:50)it(cid:1)(cid:25)a(cid:49)ilitie(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:38)(cid:61)(cid:67)(cid:64)(cid:49)e(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)a(cid:62)ital
Textron has a senior unsecured revolving credit facility for an aggregate principal amount of (cid:3)1.0 billion, of which (cid:3)100 million is
available for the issuance of letters of credit. (cid:49)e may elect to increase the aggregate amount of commitments under the facility to
up to (cid:3)1.3 billion by designating an additional lender or by an existing lender agreeing to increase its commitment. The facility
expires in October 2027 and provides for two one-year extensions at our option with the consent of lenders representing a
ma(cid:65)ority of the commitments under the facility. At December 30, 2023 and December 31, 2022, there were no amounts borrowed
against the facility and there were (cid:3)9 million of outstanding letters of credit issued under the facility.
(cid:49)e also maintain an effective shelf registration statement filed with the Securities and Exchange Commission that allows us to
issue an unlimited amount of public debt and other securities. In November 2023, we issued (cid:3)3(cid:20)0 million in SEC-registered fixed-
rate notes due in November 2033 with an annual interest rate of (cid:21).10(cid:4). The proceeds will be used for general corporate purposes,
including the redemption or repayment of certain of our debt, including the (cid:3)3(cid:20)0 million outstanding amount of our 4.30(cid:4) notes
due in March 2024.
27
Textron 2023 Annual Report 27
(cid:32)a(cid:60)(cid:67)(cid:52)a(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:26)(cid:64)(cid:61)(cid:67)(cid:62)(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:65)
Cash flows from continuing operations for the Manufacturing group as presented in our Consolidated Statements of Cash Flows
are summari(cid:81)ed below:
(In millions)
Operating activities
Investing activities
Financing activities
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
1,270 (cid:3)
(34(cid:20))
(77(cid:21))
(cid:11)(cid:9)(cid:11)(cid:11)
1,4(cid:21)1 (cid:3)
((cid:20)11)
((cid:23)7(cid:20))
(cid:11)(cid:9)(cid:11)(cid:10)
1,4(cid:21)9
(33(cid:20))
(1,349)
Cash flows from operating activities were (cid:3)1,270 million in 2023, compared with (cid:3)1,4(cid:21)1 million from 2022, as higher earnings
were more than offset by changes in working capital, reflecting an increase in inventories and lower accounts payable, partially
offset by a decrease in other assets. Net income tax payments were (cid:3)33(cid:23) million and (cid:3)332 million in 2023 and 2022, respectively.
Pension contributions were (cid:3)4(cid:20) million and (cid:3)49 million in 2023 and 2022, respectively.
In 2023, investing cash flows included capital expenditures of (cid:3)402 million, partially offset by (cid:3)40 million of net proceeds from
corporate-owned life insurance policies. Investing cash flows in 2022 included capital expenditures of (cid:3)3(cid:20)4 million and (cid:3)202
million of net cash paid for business acquisitions, largely related to the Pipistrel acquisition.
Cash flows used by financing activities in 2023 included (cid:3)1,1(cid:21)(cid:23) million of cash paid to repurchase an aggregate of 1(cid:21).2 million
shares of our common stock under the 2023 share repurchase plan described below, partially offset by (cid:3)34(cid:23) million of net
proceeds from the issuance of long-term debt. In 2022, cash flows used by financing activities included (cid:3)(cid:23)(cid:21)7 million of cash paid
to repurchase an aggregate of 13.1 million shares of our common stock under a 2022 share repurchase plan.
On July 24, 2023, Textron(cid:6)s Board of Directors approved a new program for the repurchase of up to 3(cid:20) million shares of our
common stock. This share repurchase program allows us to continue our practice of repurchasing shares to offset the impact of
dilution from stock-based compensation and benefit plans and for opportunistic capital management purposes. The new program
has no expiration date and replaced the prior 2022 share repurchase program, which was utili(cid:81)ed in 2022 for repurchases.
Dividend payments to shareholders totaled (cid:3)1(cid:21) million and (cid:3)17 million in 2023 and 2022, respectively.
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:26)(cid:64)(cid:61)(cid:67)(cid:62)(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:65)
The cash flows from continuing operations for the Finance group as presented in our Consolidated Statements of Cash Flows are
summari(cid:81)ed below:
(In millions)
Operating activities
Investing activities
Financing activities
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
14 (cid:3)
11
(37)
(cid:11)(cid:9)(cid:11)(cid:11)
(7) (cid:3)
100
(21(cid:21))
(cid:11)(cid:9)(cid:11)(cid:10)
(1)
1(cid:23)(cid:20)
(97)
In 2023, cash flows from operating activities were (cid:3)14 million, compared with cash outflows of (cid:3)7 million in 2022. The (cid:3)21
million increase in cash flows was primarily due to higher earnings and (cid:3)10 million in lower income tax payments.
The Finance group(cid:88)s cash flows from investing activities primarily included collections on finance receivables totaling (cid:3)1(cid:21)9
million and (cid:3)147 million in 2023 and 2022, respectively, partially offset by finance receivable originations of (cid:3)1(cid:21)0 million and
(cid:3)92 million, respectively. Cash flows provided by investing activities in 2022 also included (cid:3)4(cid:20) million of other investing
activities, largely related to proceeds from the sale of operating lease assets. Cash flows used in financing activities included
payments on long-term and nonrecourse debt of (cid:3)37 million and (cid:3)21(cid:21) million in 2023 and 2022, respectively.
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:65)
The consolidated cash flows from continuing operations, after elimination of activity between the borrowing groups, are
summari(cid:81)ed below:
(In millions)
Operating activities
Investing activities
Financing activities
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
1,2(cid:21)7 (cid:3)
(317)
((cid:23)13)
(cid:11)(cid:9)(cid:11)(cid:11)
1,490 (cid:3)
(447)
(1,091)
(cid:11)(cid:9)(cid:11)(cid:10)
1,(cid:20)99
(2(cid:23)1)
(1,44(cid:21))
Consolidated cash flows from operating activities were (cid:3)1,2(cid:21)7 million in 2023, compared with (cid:3)1,490 million in 2022 as higher
earnings were more than offset by changes in working capital and a net cash outflow from captive finance receivables of (cid:3)(cid:20)2
million. (cid:49)orking capital changes between the periods primarily reflected an increase in inventories and lower accounts payable,
28 Textron 2023 Annual Report
2(cid:23)
partially offset by a decrease in other assets. Net income tax payments were (cid:3)3(cid:20)2 million and (cid:3)3(cid:20)(cid:21) million in 2023 and 2022,
respectively. Pension contributions were (cid:3)4(cid:20) million and (cid:3)49 million in 2023 and 2022, respectively.
In 2023, investing cash flows included capital expenditures of (cid:3)402 million, partially offset by (cid:3)40 million of net proceeds from
corporate-owned life insurance policies. Investing cash flows in 2022 included capital expenditures of (cid:3)3(cid:20)4 million and (cid:3)202
million of net cash paid for business acquisitions, largely related to the Pipistrel acquisition.
Cash flows used by financing activities in 2023 included (cid:3)1,1(cid:21)(cid:23) million of share repurchases, partially offset by (cid:3)34(cid:23) million of
net proceeds from the issuance of long-term debt. In 2022, cash flows used by financing activities included (cid:3)(cid:23)(cid:21)7 million of share
repurchases and (cid:3)234 million of payments on long-term debt.
(cid:22)a(cid:62)ti(cid:68)e(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)i(cid:60)(cid:53)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:28)(cid:60)te(cid:64)(cid:49)(cid:61)m(cid:62)a(cid:60)(cid:71)(cid:1)T(cid:64)a(cid:60)(cid:65)a(cid:49)ti(cid:61)(cid:60)(cid:65)
The Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell
helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of
Cash Flows, cash received from customers is reflected as operating activities when received from third parties. (cid:34)owever, in the
cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected
based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is
financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in
the Finance group(cid:88)s statement of cash flows. Meanwhile, in the Manufacturing group(cid:88)s statement of cash flows, the cash received
from the Finance group on the customer(cid:88)s behalf is recorded within operating cash flows as a cash inflow. Although cash is
transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of
the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or
eliminated from the Consolidated Statements of Cash Flows.
Reclassification ad(cid:65)ustments included in the Consolidated Statements of Cash Flows on page 3(cid:23) are summari(cid:81)ed below:
(In millions)
Reclassification ad(cid:65)ustments from investing activities to operating activities:
Finance receivable originations for Manufacturing group inventory sales
Cash received from customers
Other
Total reclassification ad(cid:65)ustments from investing activities to operating activities
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:3)
(cid:3)
(1(cid:21)0) (cid:3)
143
(cid:85)
(17) (cid:3)
(92) (cid:3)
127
1
3(cid:21) (cid:3)
(100)
231
(cid:85)
131
(cid:47)nder a Support Agreement between Textron and TFC, Textron is required to maintain a controlling interest in TFC. The
agreement, as amended in December 201(cid:20), also requires Textron to ensure that TFC maintains fixed charge coverage of no less
than 12(cid:20)(cid:4) and consolidated shareholders(cid:6) equity of no less than (cid:3)12(cid:20) million. There were no cash contributions required to be
paid to TFC in 2023 and 2022 to maintain compliance with the support agreement.
29
Textron 2023 Annual Report 29
(cid:22)(cid:64)iti(cid:49)al(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ti(cid:60)(cid:53)(cid:1)(cid:24)(cid:65)timate(cid:65)
To prepare our Consolidated Financial Statements to be in conformity with generally accepted accounting principles, we must
make complex and sub(cid:65)ective (cid:65)udgments in the selection and application of accounting policies. The accounting policies that we
believe are most critical to the portrayal of our financial condition and results of operations are listed below. (cid:49)e believe these
policies require our most difficult, sub(cid:65)ective and complex (cid:65)udgments in estimating the effect of inherent uncertainties. This
section should be read in con(cid:65)unction with Note 1 to the Consolidated Financial Statements in Item (cid:23). Financial Statements and
Supplementary Data, which includes other significant accounting policies.
(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:1)(cid:37)e(cid:49)(cid:61)(cid:53)(cid:60)iti(cid:61)(cid:60)
A substantial portion of our revenues is related to long-term contracts with the (cid:47).S. Government, including those under the (cid:47).S.
Government-sponsored foreign military sales program, for the design, development, manufacture or modification of aerospace
and defense products as well as related services. (cid:49)e generally use the cost-to-cost method to measure progress for these contracts
because it best depicts the transfer of control to the customer that occurs as we incur costs on our contracts. (cid:47)nder this measure,
the extent of progress towards completion is measured based on the ratio of costs incurred to date to the estimated costs at
completion of the performance obligation, and revenue is recorded proportionally as costs are incurred.
Due to the number of years it may take to complete these contracts and the scope and nature of the work required to be performed
on the contracts, the estimation of total transaction price and costs at completion is complicated and sub(cid:65)ect to many variables
and, accordingly, is sub(cid:65)ect to change. In estimating total costs at completion, we are required to make numerous assumptions
related to the complexity of design and related development work to be performed(cid:26) engineering requirements(cid:26) product
performance(cid:26) subcontractor performance(cid:26) availability and cost of materials(cid:26) labor productivity, availability and cost(cid:26) overhead and
capital costs(cid:26) manufacturing efficiencies(cid:26) the length of time to complete the contract (to estimate increases in wages and prices for
materials)(cid:26) and costs of satisfying offset obligations, among other variables. Our cost estimation process is based on the
professional knowledge and experience of engineers and program managers along with finance professionals. (cid:49)e review and
update our cost pro(cid:65)ections quarterly or more frequently when circumstances significantly change. (cid:49)hen our estimate of the total
costs to be incurred on a contract exceeds the estimated total transaction price, a provision for the entire loss is recorded in the
period in which the loss is determined.
At the outset of each contract, we estimate an initial profit booking rate considering the risks surrounding our ability to achieve
the technical requirements (e.g., a newly developed product versus a mature product), schedule (e.g., the number and type of
milestone events), and costs by contract requirements in the initial estimated costs at completion. Profit booking rates may
increase during the performance of the contract if we successfully retire risks surrounding the technical, schedule and cost aspects
of the contract. Conversely, the profit booking rate may decrease if we are not successful in retiring the risks(cid:26) and, as a result, our
estimated costs at completion increase. All estimates are sub(cid:65)ect to change during the performance of the contract and, therefore,
may affect the profit booking rate.
Changes in our estimate of the total expected cost or in the transaction price for a contract typically impact our profit booking rate.
(cid:49)e utili(cid:81)e the cumulative catch-up method of accounting to recogni(cid:81)e the impact of these changes on our profit booking rate for a
contract. (cid:47)nder this method, the inception-to-date impact of a profit ad(cid:65)ustment on a contract is recogni(cid:81)ed in the period the
ad(cid:65)ustment is identified. The impact of our cumulative catch-up ad(cid:65)ustments on segment profit recogni(cid:81)ed in prior periods is
presented below:
(In millions)
Gross favorable
Gross unfavorable
Net ad(cid:65)ustments
(cid:3)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
10(cid:21) (cid:3)
((cid:21)2)
44 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:11)
101 (cid:3)
(117)
(1(cid:21)) (cid:3)
(cid:11)(cid:9)(cid:11)(cid:10)
1(cid:20)4
(73)
(cid:23)1
Due to the significance of (cid:65)udgment in the estimation process described above, it is likely that materially different revenues and/or
cost of sales amounts could be recorded if we used different assumptions or if the underlying circumstances were to change. Our
earnings could be reduced by a material amount resulting in a charge to earnings if (a) total estimated contract costs are
significantly higher than expected due to changes in customer specifications prior to contract amendment, (b) total estimated
contract costs are significantly higher than previously estimated due to cost overruns or inflation, (c) there is a change in
engineering efforts required during the development stage of the contract or (d) we are unable to meet contract milestones.
30 Textron 2023 Annual Report
30
(cid:26)(cid:61)(cid:61)(cid:50)(cid:69)ill
(cid:49)e evaluate the recoverability of goodwill annually in the fourth quarter or more frequently if events or changes in circumstances
indicate a potential impairment of a reporting unit. (cid:49)e calculate the fair value of each reporting unit using discounted cash flows.
These cash flows incorporate assumptions for revenue growth rates and operating margins that are based on our strategic plans
and long-range planning forecasts, which include our best estimates of current and forecasted market conditions, cost structure
and anticipated net cost reductions. The long-term revenue growth rate we use to determine the terminal value of the business is
based on our assessment of its minimum expected terminal growth rate, as well as its past historical growth and broader economic
considerations such as gross domestic product, inflation and the maturity of the markets we serve. The discount rates utili(cid:81)ed in
this analysis are based on each reporting unit(cid:88)s weighted average cost of capital, which takes into account the relative weights of
each component of capital structure (equity and debt) and represents the expected cost of new capital, ad(cid:65)usted as appropriate to
consider the risk inherent in future cash flows of the respective reporting unit. (cid:49)e believe this approach yields a discount rate that
is consistent with an implied rate of return that an independent investor or market participant would require for an investment in a
company having similar risks and business characteristics to the reporting unit being assessed.
Based on our annual impairment review, the fair value calculated using the estimates discussed above exceeded the carrying value
by an adequate amount for each reporting group. Accordingly, we do not believe that there is a reasonable possibility that any
units might fail the impairment test in the foreseeable future.
(cid:37)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:49)e sponsor funded and unfunded domestic and international pension plans for certain of our employees. Beginning on January 1,
2010, we initiated actions to commence the closure of the pension plans to new entrants. (cid:49)e provide employees hired subsequent
to these closures with defined contribution benefits. Our pension benefit obligations are calculated based on actuarial valuations.
Key assumptions used in determining these obligations and related expenses or benefits include the expected long-term rates of
return on plan assets and discount rates. (cid:49)e also make assumptions regarding employee demographic factors such as retirement
patterns, mortality, turnover and rate of compensation increases. (cid:49)e evaluate and update these assumptions annually.
To determine the weighted-average expected long-term rate of return on plan assets, we consider the current and expected asset
allocation, as well as historical and expected returns on each plan asset class. A lower expected rate of return on plan assets will
decrease pension income. For 2023 and 2022, the assumed expected long-term rate of return on plan assets used in calculating
pension income was 7.14(cid:4) and 7.10(cid:4), respectively. For 2023, the assumed rate of return for our domestic plans, which represent
approximately 90(cid:4) of our total pension assets, was 7.2(cid:20)(cid:4).
The discount rate enables us to state expected future benefit payments as a present value on the measurement date, reflecting the
current rate at which the pension liabilities could be effectively settled. This rate should be in line with rates for high-quality fixed
income investments available for the period to maturity of the pension benefits, which fluctuate as long-term interest rates change.
A lower discount rate increases the present value of the benefit obligations and generally decreases pension income. In 2023, the
weighted-average discount rate used in calculating pension income was (cid:20).(cid:20)1(cid:4), compared with 2.99(cid:4) in 2022. For our domestic
plans, the assumed discount rate was (cid:20).(cid:20)(cid:20)(cid:4) in 2023, compared with 3.0(cid:20)(cid:4) in 2022. A change of (cid:20)0 basis-points higher or lower,
with all other assumptions held constant, in this weighted-average discount rate in 2023 would have changed our pension income
for our domestic plans by approximately (cid:3)10 million.
31
Textron 2023 Annual Report 31
(cid:28)tem(cid:1)(cid:16)(cid:20)(cid:8)(cid:1)(cid:36)(cid:67)a(cid:60)titati(cid:68)e(cid:1)a(cid:60)(cid:50)(cid:1)(cid:36)(cid:67)alitati(cid:68)e(cid:1)(cid:23)i(cid:65)(cid:49)l(cid:61)(cid:65)(cid:67)(cid:64)e(cid:65)(cid:1)(cid:20)(cid:48)(cid:61)(cid:67)t(cid:1)(cid:32)a(cid:64)(cid:57)et(cid:1)(cid:37)i(cid:65)(cid:57)
(cid:25)(cid:61)(cid:64)ei(cid:53)(cid:60)(cid:1)(cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)(cid:49)(cid:71)(cid:1)(cid:24)(cid:70)(cid:49)(cid:54)a(cid:60)(cid:53)e(cid:1)(cid:37)i(cid:65)(cid:57)
Our financial results are affected by changes in foreign currency exchange rates in the various countries in which our products are
manufactured and/or sold. For our manufacturing operations, we manage our foreign currency transaction exposures by entering
into foreign currency exchange contracts. These contracts generally are used to fix the local currency cost of purchased goods or
services or selling prices denominated in currencies other than the functional currency. The notional amount of outstanding
foreign currency exchange contracts was (cid:3)47(cid:23) million and (cid:3)3(cid:20)4 million at December 30, 2023 and December 31, 2022,
respectively. (cid:49)e also may hedge exposures to certain of our foreign currency assets and earnings by funding those asset positions
with debt in the same foreign currency so the exposures are naturally offset.
(cid:28)(cid:60)te(cid:64)e(cid:65)t(cid:1)(cid:37)ate(cid:1)(cid:37)i(cid:65)(cid:57)
Our financial results are affected by changes in interest rates. As part of managing this risk, we seek to achieve a prudent balance
between floating- and fixed-rate exposures. (cid:49)e continually monitor our mix of these exposures and ad(cid:65)ust the mix, as necessary.
For our Finance group, we generally limit our risk to changes in interest rates with a strategy of matching floating-rate assets with
floating-rate liabilities. This strategy includes the use of interest rate swap agreements. (cid:49)e had interest rate swap agreements
with a total notional amount of (cid:3)210 million at December 30, 2023 and (cid:3)297 million at December 31, 2022, which effectively
converted certain floating-rate debt to a fixed-rate equivalent.
(cid:36)(cid:67)a(cid:60)titati(cid:68)e(cid:1)(cid:37)i(cid:65)(cid:57)(cid:1)(cid:32)ea(cid:65)(cid:67)(cid:64)e(cid:65)
In the normal course of business, we enter into financial instruments for purposes other than trading. The financial instruments
that are sub(cid:65)ect to market risk include finance receivables (excluding leases), debt (excluding finance lease obligations) and
foreign currency exchange contracts. To quantify the market risk inherent in these financial instruments, we utili(cid:81)e a sensitivity
analysis that includes a hypothetical change in fair value assuming a 10(cid:4) decrease in interest rates and a 10(cid:4) strengthening in
foreign exchange rates against the (cid:47).S. dollar. The fair value of these financial instruments is estimated using discounted cash
flow analysis and indicative market pricing as reported by leading financial news and data providers.
At the end of each year, the table below provides the carrying and fair values of these financial instruments along with the
sensitivity of fair value to the hypothetical changes discussed above. This sensitivity analysis is most likely not indicative of
actual results in the future.
(In millions)
(cid:32)a(cid:60)(cid:67)(cid:52)a(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)
(cid:25)o(cid:57)(cid:44)i(cid:46)n (cid:42)(cid:60)(cid:57)(cid:57)(cid:44)n(cid:42)(cid:64) (cid:44)(cid:63)(cid:42)(cid:47)(cid:40)n(cid:46)(cid:44) (cid:57)is(cid:50)
Debt
Foreign currency exchange contracts
In(cid:59)(cid:44)(cid:57)(cid:44)s(cid:59) (cid:57)(cid:40)(cid:59)(cid:44) (cid:57)is(cid:50)
Debt
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)
In(cid:59)(cid:44)(cid:57)(cid:44)s(cid:59) (cid:57)(cid:40)(cid:59)(cid:44) (cid:57)is(cid:50)
Finance receivables
Debt
(cid:5) (cid:37)(cid:47)(cid:44) (cid:61)(cid:40)l(cid:60)(cid:44) (cid:57)(cid:44)(cid:55)(cid:57)(cid:44)s(cid:44)n(cid:59)s (cid:40)n (cid:40)ss(cid:44)(cid:59) o(cid:57) (li(cid:40)(cid:41)ili(cid:59)(cid:64))(cid:8)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:11)
(cid:22)a(cid:64)(cid:64)(cid:71)i(cid:60)(cid:53)
(cid:41)al(cid:67)e(cid:5)
(cid:25)ai(cid:64)
(cid:41)al(cid:67)e(cid:5)
(cid:38)e(cid:60)(cid:65)iti(cid:68)it(cid:71)(cid:1)(cid:61)(cid:52)
(cid:25)ai(cid:64)(cid:1)(cid:41)al(cid:67)e
t(cid:61)(cid:1)a(cid:1)(cid:10)(cid:9)(cid:2)
(cid:22)(cid:54)a(cid:60)(cid:53)e
(cid:22)a(cid:64)(cid:64)(cid:71)i(cid:60)(cid:53)
(cid:41)al(cid:67)e(cid:5)
(cid:25)ai(cid:64)
(cid:41)al(cid:67)e(cid:5)
(cid:38)e(cid:60)(cid:65)iti(cid:68)it(cid:71)(cid:1)(cid:61)(cid:52)
(cid:25)ai(cid:64)(cid:1)(cid:41)al(cid:67)e
t(cid:61)(cid:1)a(cid:1)(cid:10)(cid:9)(cid:2)
(cid:22)(cid:54)a(cid:60)(cid:53)e
((cid:21)) (cid:3)
1
((cid:20)) (cid:3)
((cid:21)) (cid:3)
1
((cid:20)) (cid:3)
(1) (cid:3)
30
29 (cid:3)
((cid:21)) (cid:3)
(11)
(17) (cid:3)
((cid:21)) (cid:3)
(11)
(17) (cid:3)
(1)
2(cid:23)
27
(3,(cid:20)20) (cid:3)
(3,342) (cid:3)
((cid:20)4) (cid:3)
(3,17(cid:20)) (cid:3)
(2,(cid:23)72) (cid:3)
((cid:20)1)
417 (cid:3)
(34(cid:23))
423 (cid:3)
(293)
9 (cid:3)
(1)
390 (cid:3)
(37(cid:20))
3(cid:21)9 (cid:3)
(294)
10
(1)
32 Textron 2023 Annual Report
32
(cid:28)tem(cid:1)(cid:17)(cid:8)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:38)(cid:67)(cid:62)(cid:62)leme(cid:60)ta(cid:64)(cid:71)(cid:1)(cid:23)ata
Our Consolidated Financial Statements and the related report of our independent registered public accounting firm thereon are included in this
Annual Report on Form 10-K on the pages indicated below:
Consolidated Statements of Operations for each of the years in the three-year period ended December 30, 2023
Consolidated Statements of Comprehensive Income for each of the years in the three-year period ended December 30, 2023
Consolidated Balance Sheets as of December 30, 2023 and December 31, 2022
Consolidated Statements of Shareholders(cid:88) Equity for each of the years in the three-year period ended December 30, 2023
Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 30, 2023
Notes to the Consolidated Financial Statements
Note 1.
Note 2.
Note 3.
Note 4.
Note (cid:20).
Note (cid:21).
Note 7.
Note (cid:23).
Note 9.
Note 10.
Note 11.
Note 12.
Note 13.
Note 14.
Note 1(cid:20).
Note 1(cid:21).
Note 17.
Note 1(cid:23).
Note 19.
Summary of Significant Accounting Policies
Business Acquisition and Disposition
Goodwill and Intangible Assets
Accounts Receivable and Finance Receivables
Inventories
Property, Plant and Equipment, Net
Accounts Payable and Other Current Liabilities
Leases
Debt and Credit Facilities
Derivative Instruments and Fair Value Measurements
Shareholders(cid:88) Equity
Segment and Geographic Data
Revenues
Share-Based Compensation
Retirement Plans
Special Charges
Income Taxes
Commitments and Contingencies
Supplemental Cash Flow Information
Report of Independent Registered Public Accounting Firm
Supplementary Information:
Schedule II (cid:84) Valuation and (cid:43)ualifying Accounts
(cid:35)a(cid:53)e
34
3(cid:20)
3(cid:21)
37
3(cid:23)
40
4(cid:21)
4(cid:21)
4(cid:21)
4(cid:23)
49
49
(cid:20)0
(cid:20)0
(cid:20)1
(cid:20)2
(cid:20)4
(cid:20)(cid:21)
(cid:20)7
(cid:20)9
(cid:21)3
(cid:21)4
(cid:21)(cid:21)
(cid:21)(cid:21)
(cid:21)7
(cid:21)9
All other schedules are omitted either because they are not applicable or not required or because the required information is included in the
financial statements or notes thereto.
33
Textron 2023 Annual Report 33
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:38)tateme(cid:60)t(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:34)(cid:62)e(cid:64)ati(cid:61)(cid:60)(cid:65)
For each of the years in the three-year period ended December 30, 2023
(In millions(cid:6) (cid:44)(cid:63)(cid:42)(cid:44)(cid:55)(cid:59) (cid:55)(cid:44)(cid:57) s(cid:47)(cid:40)(cid:57)(cid:44) (cid:43)(cid:40)(cid:59)(cid:40))
(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
Manufacturing product revenues
Manufacturing service revenues
Finance revenues
Total revenues
(cid:22)(cid:61)(cid:65)t(cid:65)(cid:6)(cid:1)e(cid:70)(cid:62)e(cid:60)(cid:65)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:61)t(cid:54)e(cid:64)
Cost of products sold
Cost of services sold
Selling and administrative expense
Interest expense, net
Special charges
Non-service components of pension and postretirement income, net
Gain on business disposition
Total costs, expenses and other
Income from continuing operations before income taxes
Income tax expense
(cid:28)(cid:60)(cid:49)(cid:61)me(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)(cid:49)(cid:61)(cid:60)ti(cid:60)(cid:67)i(cid:60)(cid:53)(cid:1)(cid:61)(cid:62)e(cid:64)ati(cid:61)(cid:60)(cid:65)
Loss from discontinued operations
Net(cid:1)i(cid:60)(cid:49)(cid:61)me
(cid:21)a(cid:65)i(cid:49)(cid:1)(cid:24)a(cid:64)(cid:60)i(cid:60)(cid:53)(cid:65)(cid:1)(cid:62)e(cid:64)(cid:1)(cid:65)(cid:54)a(cid:64)e
Continuing operations
Discontinued operations
(cid:21)a(cid:65)i(cid:49)(cid:1)(cid:24)a(cid:64)(cid:60)i(cid:60)(cid:53)(cid:65)(cid:1)(cid:62)e(cid:64)(cid:1)(cid:65)(cid:54)a(cid:64)e
(cid:23)il(cid:67)te(cid:50)(cid:1)(cid:24)a(cid:64)(cid:60)i(cid:60)(cid:53)(cid:65)(cid:1)(cid:62)e(cid:64)(cid:1)(cid:65)(cid:54)a(cid:64)e
Continuing operations
Discontinued operations
(cid:23)il(cid:67)te(cid:50)(cid:1)(cid:24)a(cid:64)(cid:60)i(cid:60)(cid:53)(cid:65)(cid:1)(cid:62)e(cid:64)(cid:1)(cid:65)(cid:54)a(cid:64)e
See Notes to the Consolidated Financial Statements.
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:3)
11,(cid:20)73 (cid:3)
2,0(cid:20)(cid:20)
(cid:20)(cid:20)
13,(cid:21)(cid:23)3
10,94(cid:20) (cid:3)
1,(cid:23)72
(cid:20)2
12,(cid:23)(cid:21)9
10,(cid:20)41
1,792
49
12,3(cid:23)2
9,770
1,(cid:21)3(cid:20)
1,22(cid:20)
77
12(cid:21)
(237)
(cid:85)
12,(cid:20)9(cid:21)
1,0(cid:23)7
1(cid:21)(cid:20)
922 (cid:3)
(1)
921 (cid:3)
4.(cid:21)2 (cid:3)
(0.01)
4.(cid:21)1 (cid:3)
4.(cid:20)7 (cid:3)
(0.01)
4.(cid:20)(cid:21) (cid:3)
9,3(cid:23)0
1,420
1,1(cid:23)(cid:21)
107
(cid:85)
(240)
(cid:85)
11,(cid:23)(cid:20)3
1,01(cid:21)
1(cid:20)4
(cid:23)(cid:21)2 (cid:3)
(1)
(cid:23)(cid:21)1 (cid:3)
4.0(cid:20) (cid:3)
(cid:85)
4.0(cid:20) (cid:3)
4.01 (cid:3)
(cid:85)
4.01 (cid:3)
(cid:23),9(cid:20)(cid:20)
1,342
1,221
142
2(cid:20)
(1(cid:20)9)
(17)
11,(cid:20)09
(cid:23)73
12(cid:21)
747
(1)
74(cid:21)
3.33
(cid:85)
3.33
3.30
(cid:85)
3.30
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
34 Textron 2023 Annual Report
34
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:38)tateme(cid:60)t(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)(cid:61)m(cid:62)(cid:64)e(cid:54)e(cid:60)(cid:65)i(cid:68)e(cid:1)(cid:28)(cid:60)(cid:49)(cid:61)me
For each of the years in the three-year period ended December 30, 2023
(In millions)
Net(cid:1)i(cid:60)(cid:49)(cid:61)me
(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:49)(cid:61)m(cid:62)(cid:64)e(cid:54)e(cid:60)(cid:65)i(cid:68)e(cid:1)i(cid:60)(cid:49)(cid:61)me(cid:1)(cid:3)l(cid:61)(cid:65)(cid:65)(cid:4)(cid:6)(cid:1)(cid:60)et(cid:1)(cid:61)(cid:52)(cid:1)ta(cid:70)
Pension and postretirement benefits ad(cid:65)ustments, net of reclassifications
Foreign currency translation ad(cid:65)ustments, net of reclassifications
Deferred gains (losses) on hedge contracts, net of reclassifications
Total other comprehensive income (loss), net of tax
(cid:22)(cid:61)m(cid:62)(cid:64)e(cid:54)e(cid:60)(cid:65)i(cid:68)e(cid:1)i(cid:60)(cid:49)(cid:61)me
See Notes to the Consolidated Financial Statements.
(cid:3)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
921 (cid:3)
((cid:23)2)
4(cid:20)
(cid:20)
(32)
(cid:23)(cid:23)9 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:23)(cid:21)1 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:10)
74(cid:21)
2(cid:23)3
(103)
(3)
177
1,03(cid:23) (cid:3)
9(cid:23)1
(37)
2
94(cid:21)
1,(cid:21)92
3(cid:20)
Textron 2023 Annual Report 35
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:3)
(cid:3)
2,121 (cid:3)
(cid:23)(cid:21)(cid:23)
3,914
(cid:23)(cid:20)7
7,7(cid:21)0
2,477
2,29(cid:20)
3,(cid:21)(cid:21)3
1(cid:21),19(cid:20)
(cid:21)0
(cid:20)(cid:23)(cid:20)
1(cid:21)
(cid:21)(cid:21)1
1(cid:21),(cid:23)(cid:20)(cid:21) (cid:3)
(cid:3)
3(cid:20)7 (cid:3)
1,023
2,99(cid:23)
4,37(cid:23)
1,904
3,1(cid:21)9
9,4(cid:20)1
70
34(cid:23)
41(cid:23)
9,(cid:23)(cid:21)9
1,9(cid:21)3
(cid:23)(cid:20)(cid:20)
3,(cid:20)(cid:20)0
1,033
7,401
2,(cid:20)23
2,2(cid:23)3
3,422
1(cid:20),(cid:21)29
72
(cid:20)(cid:21)3
29
(cid:21)(cid:21)4
1(cid:21),293
7
1,01(cid:23)
2,(cid:21)4(cid:20)
3,(cid:21)70
1,(cid:23)79
3,17(cid:20)
(cid:23),724
(cid:23)1
37(cid:20)
4(cid:20)(cid:21)
9,1(cid:23)0
24
1,910
(1(cid:21)(cid:20))
(cid:20),(cid:23)(cid:21)2
((cid:21)44)
(cid:21),9(cid:23)7
1(cid:21),(cid:23)(cid:20)(cid:21) (cid:3)
2(cid:21)
1,(cid:23)(cid:23)0
((cid:23)4)
(cid:20),903
((cid:21)12)
7,113
1(cid:21),293
(cid:3)
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:21)ala(cid:60)(cid:49)e(cid:1)(cid:38)(cid:54)eet(cid:65)
(In millions(cid:6) (cid:44)(cid:63)(cid:42)(cid:44)(cid:55)(cid:59) s(cid:47)(cid:40)(cid:57)(cid:44) (cid:43)(cid:40)(cid:59)(cid:40))
(cid:20)(cid:65)(cid:65)et(cid:65)
(cid:32)a(cid:60)(cid:67)(cid:52)a(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)
Cash and equivalents
Accounts receivable, net
Inventories
Other current assets
T(cid:61)tal(cid:1)(cid:49)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)a(cid:65)(cid:65)et(cid:65)
Property, plant and equipment, net
Goodwill
Other assets
T(cid:61)tal(cid:1)(cid:32)a(cid:60)(cid:67)(cid:52)a(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)(cid:1)a(cid:65)(cid:65)et(cid:65)
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)
Cash and equivalents
Finance receivables, net
Other assets
T(cid:61)tal(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)(cid:1)a(cid:65)(cid:65)et(cid:65)
T(cid:61)tal(cid:1)a(cid:65)(cid:65)et(cid:65)
(cid:31)ia(cid:48)ilitie(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:65)(cid:54)a(cid:64)e(cid:54)(cid:61)l(cid:50)e(cid:64)(cid:65)(cid:74)(cid:1)e(cid:63)(cid:67)it(cid:71)
(cid:31)ia(cid:48)ilitie(cid:65)
(cid:32)a(cid:60)(cid:67)(cid:52)a(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)
Current portion of long-term debt
Accounts payable
Other current liabilities
T(cid:61)tal(cid:1)(cid:49)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)lia(cid:48)ilitie(cid:65)
Other liabilities
Long-term debt
T(cid:61)tal(cid:1)(cid:32)a(cid:60)(cid:67)(cid:52)a(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)(cid:1)lia(cid:48)ilitie(cid:65)
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)
Other liabilities
Debt
T(cid:61)tal(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)(cid:1)lia(cid:48)ilitie(cid:65)
T(cid:61)tal(cid:1)lia(cid:48)ilitie(cid:65)
(cid:38)(cid:54)a(cid:64)e(cid:54)(cid:61)l(cid:50)e(cid:64)(cid:65)(cid:74)(cid:1)e(cid:63)(cid:67)it(cid:71)
Common stock (19(cid:20).0 million and 207.4 million shares issued, respectively,
and 192.9 million and 20(cid:21).2 million shares outstanding, respectively)
Capital surplus
Treasury stock
Retained earnings
Accumulated other comprehensive loss
T(cid:61)tal(cid:1)(cid:65)(cid:54)a(cid:64)e(cid:54)(cid:61)l(cid:50)e(cid:64)(cid:65)(cid:74)(cid:1)e(cid:63)(cid:67)it(cid:71)
T(cid:61)tal(cid:1)lia(cid:48)ilitie(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:65)(cid:54)a(cid:64)e(cid:54)(cid:61)l(cid:50)e(cid:64)(cid:65)(cid:74)(cid:1)e(cid:63)(cid:67)it(cid:71)
See Notes to the Consolidated Financial Statements.
36 Textron 2023 Annual Report
3(cid:21)
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:38)tateme(cid:60)t(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:38)(cid:54)a(cid:64)e(cid:54)(cid:61)l(cid:50)e(cid:64)(cid:65)(cid:74)(cid:1)(cid:24)(cid:63)(cid:67)it(cid:71)
(In millions(cid:6) (cid:44)(cid:63)(cid:42)(cid:44)(cid:55)(cid:59) (cid:55)(cid:44)(cid:57) s(cid:47)(cid:40)(cid:57)(cid:44) (cid:43)(cid:40)(cid:59)(cid:40))
Balance at January 2, 2021
Net income
Other comprehensive income
Dividends declared ((cid:3)0.0(cid:23) per share)
Share-based compensation activity
Purchases of common stock
Retirement of treasury stock
Other
Balance at January 1, 2022
Net income
Other comprehensive income
Dividends declared ((cid:3)0.0(cid:23) per share)
Share-based compensation activity
Purchases of common stock
Retirement of treasury stock
Balance at December 31, 2022
Net income
Other comprehensive loss
Dividends declared ((cid:3)0.0(cid:23) per share)
Share-based compensation activity
Purchases of common stock, including
excise tax*
Retirement of treasury stock
Balance at December 30, 2023
(cid:22)(cid:61)mm(cid:61)(cid:60)
(cid:38)t(cid:61)(cid:49)(cid:57)
29 (cid:3)
(cid:85)
(cid:85)
(cid:85)
1
(cid:85)
(2)
(cid:85)
2(cid:23)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(2)
2(cid:21)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(2)
24 (cid:3)
(cid:3)
(cid:3)
(cid:22)a(cid:62)ital
(cid:38)(cid:67)(cid:64)(cid:62)l(cid:67)(cid:65)
1,7(cid:23)(cid:20) (cid:3)
(cid:85)
(cid:85)
(cid:85)
212
(cid:85)
(134)
(cid:85)
1,(cid:23)(cid:21)3
(cid:85)
(cid:85)
(cid:85)
144
(cid:85)
(127)
1,(cid:23)(cid:23)0
(cid:85)
(cid:85)
(cid:85)
179
T(cid:64)ea(cid:65)(cid:67)(cid:64)(cid:71)
(cid:38)t(cid:61)(cid:49)(cid:57)
(203) (cid:3)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(921)
9(cid:21)7
(cid:85)
(1(cid:20)7)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
((cid:23)(cid:21)7)
940
((cid:23)4)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:37)etai(cid:60)e(cid:50)
(cid:24)a(cid:64)(cid:60)i(cid:60)(cid:53)(cid:65)
(cid:20)(cid:49)(cid:49)(cid:67)m(cid:67)late(cid:50)
(cid:34)t(cid:54)e(cid:64)
(cid:22)(cid:61)m(cid:62)(cid:64)e(cid:54)e(cid:60)(cid:65)i(cid:68)e
(cid:31)(cid:61)(cid:65)(cid:65)
(1,739) (cid:3)
(cid:85)
94(cid:21)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
4
(7(cid:23)9)
(cid:85)
177
(cid:85)
(cid:85)
(cid:85)
(cid:85)
((cid:21)12)
(cid:85)
(32)
(cid:85)
(cid:85)
(cid:20),973 (cid:3)
74(cid:21)
(cid:85)
(1(cid:23))
(cid:85)
(cid:85)
((cid:23)31)
(cid:85)
(cid:20),(cid:23)70
(cid:23)(cid:21)1
(cid:85)
(17)
(cid:85)
(cid:85)
((cid:23)11)
(cid:20),903
921
(cid:85)
(1(cid:21))
(cid:85)
T(cid:61)tal
(cid:38)(cid:54)a(cid:64)e(cid:54)(cid:61)l(cid:50)e(cid:64)(cid:65)(cid:74)
(cid:24)(cid:63)(cid:67)it(cid:71)
(cid:20),(cid:23)4(cid:20)
74(cid:21)
94(cid:21)
(1(cid:23))
213
(921)
(cid:85)
4
(cid:21),(cid:23)1(cid:20)
(cid:23)(cid:21)1
177
(17)
144
((cid:23)(cid:21)7)
(cid:85)
7,113
921
(32)
(1(cid:21))
179
(cid:85)
(149)
1,910 (cid:3)
(1,17(cid:23))
1,097
(1(cid:21)(cid:20)) (cid:3)
(cid:85)
(94(cid:21))
(cid:20),(cid:23)(cid:21)2 (cid:3)
(cid:85)
(cid:85)
((cid:21)44) (cid:3)
(1,17(cid:23))
(cid:85)
(cid:21),9(cid:23)7
(cid:5)In(cid:42)l(cid:60)(cid:43)(cid:44)s (cid:40)mo(cid:60)n(cid:59)s (cid:40)(cid:42)(cid:42)(cid:57)(cid:60)(cid:44)(cid:43) (cid:45)o(cid:57) (cid:44)(cid:63)(cid:42)is(cid:44) (cid:59)(cid:40)(cid:63) im(cid:55)os(cid:44)(cid:43) on (cid:42)ommon s(cid:47)(cid:40)(cid:57)(cid:44) (cid:57)(cid:44)(cid:55)(cid:60)(cid:57)(cid:42)(cid:47)(cid:40)s(cid:44)s (cid:41)(cid:44)(cid:46)innin(cid:46) on (cid:29)(cid:40)n(cid:60)(cid:40)(cid:57)(cid:64) (cid:11)(cid:6) (cid:12)(cid:10)(cid:12)(cid:13) (cid:40)s (cid:55)(cid:40)(cid:57)(cid:59) o(cid:45) (cid:59)(cid:47)(cid:44) In(cid:45)l(cid:40)(cid:59)ion (cid:35)(cid:44)(cid:43)(cid:60)(cid:42)(cid:59)ion (cid:20)(cid:42)(cid:59) (cid:59)(cid:47)(cid:40)(cid:59) (cid:59)o(cid:59)(cid:40)l(cid:44)(cid:43)
(cid:2)(cid:11)(cid:10) million in (cid:12)(cid:10)(cid:12)(cid:13)(cid:8)
See Notes to the Consolidated Financial Statements.
37
Textron 2023 Annual Report 37
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:38)tateme(cid:60)t(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:65)
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:38)tateme(cid:60)t(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:65)
For each of the years in the three-year period ended December 30, 2023
For each of the years in the three-year period ended December 30, 2023
(In millions)
(In millions)
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)(cid:61)(cid:62)e(cid:64)ati(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)(cid:61)(cid:62)e(cid:64)ati(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
Income from continuing operations
Income from continuing operations
Ad(cid:65)ustments to reconcile income from continuing operations to net cash provided by
Ad(cid:65)ustments to reconcile income from continuing operations to net cash provided by
operating activities of continuing operations:
operating activities of continuing operations:
Non-cash items:
Non-cash items:
Depreciation and amorti(cid:81)ation
Depreciation and amorti(cid:81)ation
Deferred income taxes
Deferred income taxes
Asset impairments
Asset impairments
Gain on business disposition
Gain on business disposition
Other, net
Other, net
Changes in assets and liabilities:
Changes in assets and liabilities:
Accounts receivable, net
Accounts receivable, net
Inventories
Inventories
Other assets
Other assets
Accounts payable
Accounts payable
Other liabilities
Other liabilities
Income taxes, net
Income taxes, net
Pension, net
Pension, net
Captive finance receivables, net
Captive finance receivables, net
Other operating activities, net
Other operating activities, net
Net cash provided by operating activities of continuing operations
Net cash provided by operating activities of continuing operations
Net cash used in operating activities of discontinued operations
Net cash used in operating activities of discontinued operations
Net cash provided by operating activities
Net cash provided by operating activities
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)i(cid:60)(cid:68)e(cid:65)ti(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)i(cid:60)(cid:68)e(cid:65)ti(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
Capital expenditures
Capital expenditures
Net cash used in acquisitions
Net cash used in acquisitions
Net proceeds (payments) from corporate-owned life insurance policies
Net proceeds (payments) from corporate-owned life insurance policies
Proceeds from sale of property, plant and equipment and an insurance recovery
Proceeds from sale of property, plant and equipment and an insurance recovery
Net proceeds from business disposition
Net proceeds from business disposition
Finance receivables repaid
Finance receivables repaid
Other investing activities, net
Other investing activities, net
Net cash used in investing activities
Net cash used in investing activities
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)(cid:52)i(cid:60)a(cid:60)(cid:49)i(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)(cid:52)i(cid:60)a(cid:60)(cid:49)i(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
Decrease in short-term debt
Decrease in short-term debt
Net proceeds from long-term debt
Net proceeds from long-term debt
Principal payments on long-term debt and nonrecourse debt
Principal payments on long-term debt and nonrecourse debt
Purchases of Textron common stock
Purchases of Textron common stock
Proceeds from exercise of stock options
Proceeds from exercise of stock options
Dividends paid
Dividends paid
Other financing activities, net
Other financing activities, net
Net cash used in financing activities
Net cash used in financing activities
Effect of exchange rate changes on cash and equivalents
Effect of exchange rate changes on cash and equivalents
Net(cid:1)i(cid:60)(cid:49)(cid:64)ea(cid:65)e(cid:1)(cid:3)(cid:50)e(cid:49)(cid:64)ea(cid:65)e(cid:4)(cid:1)i(cid:60)(cid:1)(cid:49)a(cid:65)(cid:54)(cid:1)a(cid:60)(cid:50)(cid:1)e(cid:63)(cid:67)i(cid:68)ale(cid:60)t(cid:65)
Net(cid:1)i(cid:60)(cid:49)(cid:64)ea(cid:65)e(cid:1)(cid:3)(cid:50)e(cid:49)(cid:64)ea(cid:65)e(cid:4)(cid:1)i(cid:60)(cid:1)(cid:49)a(cid:65)(cid:54)(cid:1)a(cid:60)(cid:50)(cid:1)e(cid:63)(cid:67)i(cid:68)ale(cid:60)t(cid:65)
Cash and equivalents at beginning of year
Cash and equivalents at beginning of year
Cash and equivalents at end of year
Cash and equivalents at end of year
See Notes to the Consolidated Financial Statements.
See Notes to the Consolidated Financial Statements.
38 Textron 2023 Annual Report
3(cid:23)
3(cid:23)
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:3)
(cid:3)
922 (cid:3)
922 (cid:3)
(cid:23)(cid:21)2 (cid:3)
(cid:23)(cid:21)2 (cid:3)
747
747
39(cid:20)
39(cid:20)
(192)
(192)
(cid:23)(cid:23)
(cid:23)(cid:23)
(cid:85)
(cid:85)
90
90
(9)
(9)
(3(cid:20)9)
(3(cid:20)9)
2(cid:21)7
2(cid:21)7
2
2
27(cid:21)
27(cid:21)
4
4
(202)
(202)
(17)
(17)
2
2
1,2(cid:21)7
1,2(cid:21)7
(1)
(1)
1,2(cid:21)(cid:21)
1,2(cid:21)(cid:21)
(402)
(402)
(1)
(1)
40
40
1(cid:23)
1(cid:23)
(cid:85)
(cid:85)
2(cid:21)
2(cid:21)
2
2
(317)
(317)
397
397
(220)
(220)
2
2
(cid:85)
(cid:85)
94
94
(2(cid:21))
(2(cid:21))
((cid:20)(cid:20))
((cid:20)(cid:20))
3(cid:20)
3(cid:20)
23(cid:20)
23(cid:20)
270
270
1(cid:23)
1(cid:23)
(1(cid:21)(cid:20))
(1(cid:21)(cid:20))
3(cid:20)
3(cid:20)
(cid:23)
(cid:23)
1,490
1,490
(2)
(2)
1,4(cid:23)(cid:23)
1,4(cid:23)(cid:23)
(3(cid:20)4)
(3(cid:20)4)
(202)
(202)
23
23
22
22
(cid:85)
(cid:85)
20
20
44
44
(447)
(447)
390
390
23
23
13
13
(17)
(17)
(cid:23)(cid:23)
(cid:23)(cid:23)
((cid:20)(cid:23))
((cid:20)(cid:23))
4(cid:20)
4(cid:20)
(112)
(112)
13
13
40(cid:20)
40(cid:20)
11
11
((cid:23)2)
((cid:23)2)
131
131
2
2
1,(cid:20)99
1,(cid:20)99
(1)
(1)
1,(cid:20)9(cid:23)
1,(cid:20)9(cid:23)
(37(cid:20))
(37(cid:20))
(cid:85)
(cid:85)
(2)
(2)
3
3
3(cid:23)
3(cid:23)
19
19
3(cid:21)
3(cid:21)
(2(cid:23)1)
(2(cid:23)1)
(cid:85)
(cid:85)
34(cid:23)
34(cid:23)
(44)
(44)
(1,1(cid:21)(cid:23))
(1,1(cid:21)(cid:23))
73
73
(1(cid:21))
(1(cid:21))
((cid:21))
((cid:21))
((cid:23)13)
((cid:23)13)
10
10
14(cid:21)
14(cid:21)
2,03(cid:20)
2,03(cid:20)
2,1(cid:23)1 (cid:3)
2,1(cid:23)1 (cid:3)
(14)
(14)
(cid:85)
(cid:85)
(234)
(234)
((cid:23)(cid:21)7)
((cid:23)(cid:21)7)
44
44
(17)
(17)
(3)
(3)
(1,091)
(1,091)
(32)
(32)
((cid:23)2)
((cid:23)2)
2,117
2,117
2,03(cid:20) (cid:3)
2,03(cid:20) (cid:3)
(1)
(1)
(cid:85)
(cid:85)
((cid:21)21)
((cid:21)21)
(921)
(921)
11(cid:21)
11(cid:21)
(1(cid:23))
(1(cid:23))
(1)
(1)
(1,44(cid:21))
(1,44(cid:21))
((cid:23))
((cid:23))
(137)
(137)
2,2(cid:20)4
2,2(cid:20)4
2,117
2,117
(cid:3)
(cid:3)
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:38)tateme(cid:60)t(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:49)(cid:61)(cid:60)ti(cid:60)(cid:67)e(cid:50)
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:38)tateme(cid:60)t(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:49)(cid:61)(cid:60)ti(cid:60)(cid:67)e(cid:50)
(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:38)tateme(cid:60)t(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:49)(cid:61)(cid:60)ti(cid:60)(cid:67)e(cid:50)
For each of the years in the three-year period ended December 30, 2023
For each of the years in the three-year period ended December 30, 2023
For each of the years in the three-year period ended December 30, 2023
(cid:32)a(cid:60)(cid:67)(cid:52)a(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:26)(cid:64)(cid:61)(cid:67)(cid:62)
(cid:32)a(cid:60)(cid:67)(cid:52)a(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:26)(cid:64)(cid:61)(cid:67)(cid:62)
(cid:32)a(cid:60)(cid:67)(cid:52)a(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:26)(cid:64)(cid:61)(cid:67)(cid:62)
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:26)(cid:64)(cid:61)(cid:67)(cid:62)
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:26)(cid:64)(cid:61)(cid:67)(cid:62)
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:26)(cid:64)(cid:61)(cid:67)(cid:62)
(In millions)
(In millions)
(In millions)
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)(cid:61)(cid:62)e(cid:64)ati(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)(cid:61)(cid:62)e(cid:64)ati(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)(cid:61)(cid:62)e(cid:64)ati(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
Income from continuing operations
Income from continuing operations
Income from continuing operations
Ad(cid:65)ustments to reconcile income from continuing operations to net cash
Ad(cid:65)ustments to reconcile income from continuing operations to net cash
Ad(cid:65)ustments to reconcile income from continuing operations to net cash
provided by (used in) operating activities of continuing operations:
provided by (used in) operating activities of continuing operations:
provided by (used in) operating activities of continuing operations:
Non-cash items:
Non-cash items:
Non-cash items:
Depreciation and amorti(cid:81)ation
Depreciation and amorti(cid:81)ation
Depreciation and amorti(cid:81)ation
Deferred income taxes
Deferred income taxes
Deferred income taxes
Asset impairments
Asset impairments
Asset impairments
Gain on business disposition
Gain on business disposition
Gain on business disposition
Other, net
Other, net
Other, net
Changes in assets and liabilities:
Changes in assets and liabilities:
Changes in assets and liabilities:
Accounts receivable, net
Accounts receivable, net
Accounts receivable, net
Inventories
Inventories
Inventories
Other assets
Other assets
Other assets
Accounts payable
Accounts payable
Accounts payable
Other liabilities
Other liabilities
Other liabilities
Income taxes, net
Income taxes, net
Income taxes, net
Pension, net
Pension, net
Pension, net
Other operating activities, net
Other operating activities, net
Other operating activities, net
Net cash provided by (used in) operating activities of continuing operations
Net cash provided by (used in) operating activities of continuing operations
Net cash provided by (used in) operating activities of continuing operations
Net cash used in operating activities of discontinued operations
Net cash used in operating activities of discontinued operations
Net cash used in operating activities of discontinued operations
Net cash provided by (used in) operating activities
Net cash provided by (used in) operating activities
Net cash provided by (used in) operating activities
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)i(cid:60)(cid:68)e(cid:65)ti(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)i(cid:60)(cid:68)e(cid:65)ti(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)i(cid:60)(cid:68)e(cid:65)ti(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
Capital expenditures
Capital expenditures
Capital expenditures
Net cash used in acquisitions
Net cash used in acquisitions
Net cash used in acquisitions
Net proceeds (payments) from corporate-owned life insurance policies
Net proceeds (payments) from corporate-owned life insurance policies
Net proceeds (payments) from corporate-owned life insurance policies
Proceeds from sale of property, plant and equipment and an insurance recovery
Proceeds from sale of property, plant and equipment and an insurance recovery
Proceeds from sale of property, plant and equipment and an insurance recovery
Net proceeds from business disposition
Net proceeds from business disposition
Net proceeds from business disposition
Finance receivables repaid
Finance receivables repaid
Finance receivables repaid
Finance receivables originated
Finance receivables originated
Finance receivables originated
Other investing activities, net
Other investing activities, net
Other investing activities, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) investing activities
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)(cid:52)i(cid:60)a(cid:60)(cid:49)i(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)(cid:52)i(cid:60)a(cid:60)(cid:49)i(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
(cid:22)a(cid:65)(cid:54)(cid:1)(cid:52)l(cid:61)(cid:69)(cid:65)(cid:1)(cid:52)(cid:64)(cid:61)m(cid:1)(cid:52)i(cid:60)a(cid:60)(cid:49)i(cid:60)(cid:53)(cid:1)a(cid:49)ti(cid:68)itie(cid:65)
Decrease in short-term debt
Decrease in short-term debt
Decrease in short-term debt
Net proceeds from long-term debt
Net proceeds from long-term debt
Net proceeds from long-term debt
Principal payments on long-term debt and nonrecourse debt
Principal payments on long-term debt and nonrecourse debt
Principal payments on long-term debt and nonrecourse debt
Purchases of Textron common stock
Purchases of Textron common stock
Purchases of Textron common stock
Proceeds from exercise of stock options
Proceeds from exercise of stock options
Proceeds from exercise of stock options
Dividends paid
Dividends paid
Dividends paid
Other financing activities, net
Other financing activities, net
Other financing activities, net
Net cash used in financing activities
Net cash used in financing activities
Net cash used in financing activities
Effect of exchange rate changes on cash and equivalents
Effect of exchange rate changes on cash and equivalents
Effect of exchange rate changes on cash and equivalents
Net(cid:1)i(cid:60)(cid:49)(cid:64)ea(cid:65)e(cid:1)(cid:3)(cid:50)e(cid:49)(cid:64)ea(cid:65)e(cid:4)(cid:1)i(cid:60)(cid:1)(cid:49)a(cid:65)(cid:54)(cid:1)a(cid:60)(cid:50)(cid:1)e(cid:63)(cid:67)i(cid:68)ale(cid:60)t(cid:65)
Net(cid:1)i(cid:60)(cid:49)(cid:64)ea(cid:65)e(cid:1)(cid:3)(cid:50)e(cid:49)(cid:64)ea(cid:65)e(cid:4)(cid:1)i(cid:60)(cid:1)(cid:49)a(cid:65)(cid:54)(cid:1)a(cid:60)(cid:50)(cid:1)e(cid:63)(cid:67)i(cid:68)ale(cid:60)t(cid:65)
Net(cid:1)i(cid:60)(cid:49)(cid:64)ea(cid:65)e(cid:1)(cid:3)(cid:50)e(cid:49)(cid:64)ea(cid:65)e(cid:4)(cid:1)i(cid:60)(cid:1)(cid:49)a(cid:65)(cid:54)(cid:1)a(cid:60)(cid:50)(cid:1)e(cid:63)(cid:67)i(cid:68)ale(cid:60)t(cid:65)
Cash and equivalents at beginning of year
Cash and equivalents at beginning of year
Cash and equivalents at beginning of year
Cash and equivalents at end of year
Cash and equivalents at end of year
Cash and equivalents at end of year
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:3)
(cid:3)
(cid:3)
(cid:23)(cid:23)4 (cid:3)
(cid:23)(cid:23)4 (cid:3)
(cid:23)(cid:23)4 (cid:3)
(cid:23)3(cid:20) (cid:3)
(cid:23)3(cid:20) (cid:3)
(cid:23)3(cid:20) (cid:3)
740 (cid:3)
740 (cid:3)
740 (cid:3)
3(cid:23) (cid:3)
3(cid:23) (cid:3)
3(cid:23) (cid:3)
27 (cid:3)
27 (cid:3)
27 (cid:3)
7
7
7
39(cid:20)
39(cid:20)
39(cid:20)
(1(cid:23)(cid:23))
(1(cid:23)(cid:23))
(1(cid:23)(cid:23))
(cid:23)(cid:23)
(cid:23)(cid:23)
(cid:23)(cid:23)
(cid:85)
(cid:85)
(cid:85)
110
110
110
39(cid:21)
39(cid:21)
39(cid:21)
(200)
(200)
(200)
2
2
2
(cid:85)
(cid:85)
(cid:85)
103
103
103
3(cid:23)0
3(cid:23)0
3(cid:23)0
27
27
27
13
13
13
(17)
(17)
(17)
97
97
97
(cid:85)
(cid:85)
(cid:85)
(4)
(4)
(4)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(20)
(20)
(20)
1
1
1
(20)
(20)
(20)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(9)
(9)
(9)
(9)
(9)
(9)
(3(cid:20)9)
(3(cid:20)9)
(3(cid:20)9)
2(cid:21)1
2(cid:21)1
2(cid:21)1
2
2
2
2(cid:23)1
2(cid:23)1
2(cid:23)1
(cid:20)
(cid:20)
(cid:20)
(202)
(202)
(202)
2
2
2
1,270
1,270
1,270
(1)
(1)
(1)
1,2(cid:21)9
1,2(cid:21)9
1,2(cid:21)9
(2(cid:21))
(2(cid:21))
(2(cid:21))
((cid:20)(cid:20))
((cid:20)(cid:20))
((cid:20)(cid:20))
34
34
34
23(cid:20)
23(cid:20)
23(cid:20)
277
277
277
1(cid:23)
1(cid:23)
1(cid:23)
(1(cid:21)(cid:20))
(1(cid:21)(cid:20))
(1(cid:21)(cid:20))
7
7
7
1,4(cid:21)1
1,4(cid:21)1
1,4(cid:21)1
(2)
(2)
(2)
1,4(cid:20)9
1,4(cid:20)9
1,4(cid:20)9
((cid:20)(cid:23))
((cid:20)(cid:23))
((cid:20)(cid:23))
4(cid:20)
4(cid:20)
4(cid:20)
(111)
(111)
(111)
13
13
13
404
404
404
1(cid:21)
1(cid:21)
1(cid:21)
((cid:23)2)
((cid:23)2)
((cid:23)2)
2
2
2
1,4(cid:21)9
1,4(cid:21)9
1,4(cid:21)9
(1)
(1)
(1)
1,4(cid:21)(cid:23)
1,4(cid:21)(cid:23)
1,4(cid:21)(cid:23)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:21)
(cid:21)
(cid:21)
(cid:85)
(cid:85)
(cid:85)
((cid:20))
((cid:20))
((cid:20))
(1)
(1)
(1)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
14
14
14
(cid:85)
(cid:85)
(cid:85)
14
14
14
(402)
(402)
(402)
(1)
(1)
(1)
40
40
40
1(cid:23)
1(cid:23)
1(cid:23)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(34(cid:20))
(34(cid:20))
(34(cid:20))
(3(cid:20)4)
(3(cid:20)4)
(3(cid:20)4)
(202)
(202)
(202)
23
23
23
22
22
22
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
((cid:20)11)
((cid:20)11)
((cid:20)11)
(37(cid:20))
(37(cid:20))
(37(cid:20))
(cid:85)
(cid:85)
(cid:85)
(2)
(2)
(2)
3
3
3
3(cid:23)
3(cid:23)
3(cid:23)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
1
1
1
(33(cid:20))
(33(cid:20))
(33(cid:20))
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
1(cid:21)9
1(cid:21)9
1(cid:21)9
(1(cid:21)0)
(1(cid:21)0)
(1(cid:21)0)
2
2
2
11
11
11
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
1
1
1
(cid:85)
(cid:85)
(cid:85)
(7)
(7)
(7)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(7)
(7)
(7)
(cid:85)
(cid:85)
(cid:85)
(7)
(7)
(7)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
147
147
147
(92)
(92)
(92)
4(cid:20)
4(cid:20)
4(cid:20)
100
100
100
10
(4)
(cid:85)
(cid:85)
(9)
10
10
(4)
(4)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(9)
(9)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(1)
(1)
(1)
(cid:85)
(cid:85)
(cid:85)
1
1
1
((cid:20))
((cid:20))
((cid:20))
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(1)
(1)
(1)
(cid:85)
(cid:85)
(cid:85)
(1)
(1)
(1)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
2(cid:20)0
2(cid:20)0
2(cid:20)0
(100)
(100)
(100)
3(cid:20)
3(cid:20)
3(cid:20)
1(cid:23)(cid:20)
1(cid:23)(cid:20)
1(cid:23)(cid:20)
(cid:85)
(14)
(1)
(cid:85)
(cid:85)
(14)
(14)
(1)
(1)
34(cid:23)
(cid:85)
(cid:85)
34(cid:23)
34(cid:23)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(7)
(1(cid:23))
((cid:20)24)
(7)
(7)
(1(cid:23))
(1(cid:23))
((cid:20)24)
((cid:20)24)
(1,1(cid:21)(cid:23))
((cid:23)(cid:21)7)
(921)
(1,1(cid:21)(cid:23))
(1,1(cid:21)(cid:23))
((cid:23)(cid:21)7)
((cid:23)(cid:21)7)
(921)
(921)
73
44
11(cid:21)
73
73
44
44
11(cid:21)
11(cid:21)
(1(cid:21))
(17)
(1(cid:23))
(1(cid:21))
(1(cid:21))
(17)
(17)
(1(cid:23))
(1(cid:23))
((cid:21))
(3)
(1)
((cid:21))
((cid:21))
(3)
(3)
(1)
(1)
(77(cid:21))
((cid:23)7(cid:20))
(1,349)
(77(cid:21))
(77(cid:21))
((cid:23)7(cid:20))
((cid:23)7(cid:20))
(1,349)
(1,349)
10
(32)
((cid:23))
10
10
(32)
(32)
((cid:23))
((cid:23))
41
1(cid:20)(cid:23)
(224)
1(cid:20)(cid:23)
1(cid:20)(cid:23)
41
41
(224)
(224)
2,14(cid:21)
1,922
1,9(cid:21)3
1,922
1,9(cid:21)3
1,9(cid:21)3
1,922
2,14(cid:21)
2,14(cid:21)
(cid:3) 2,121 (cid:3) 1,9(cid:21)3 (cid:3) 1,922 (cid:3)
(cid:3) 2,121 (cid:3) 1,9(cid:21)3 (cid:3) 1,922 (cid:3)
(cid:3) 2,121 (cid:3) 1,9(cid:21)3 (cid:3) 1,922 (cid:3)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(37)
(37)
(37)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(37)
(37)
(37)
(cid:85)
(cid:85)
(cid:85)
(12)
(12)
(12)
72
72
72
(cid:21)0 (cid:3)
(cid:21)0 (cid:3)
(cid:21)0 (cid:3)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(21(cid:21))
(21(cid:21))
(21(cid:21))
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(21(cid:21))
(21(cid:21))
(21(cid:21))
(cid:85)
(cid:85)
(cid:85)
(123)
(123)
(123)
19(cid:20)
19(cid:20)
19(cid:20)
72 (cid:3)
72 (cid:3)
72 (cid:3)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(97)
(97)
(97)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(97)
(97)
(97)
(cid:85)
(cid:85)
(cid:85)
(cid:23)7
(cid:23)7
(cid:23)7
10(cid:23)
10(cid:23)
10(cid:23)
19(cid:20)
19(cid:20)
19(cid:20)
See Notes to the Consolidated Financial Statements.
See Notes to the Consolidated Financial Statements.
See Notes to the Consolidated Financial Statements.
39
39
39
Textron 2023 Annual Report 39
N(cid:61)te(cid:65)(cid:1)t(cid:61)(cid:1)t(cid:54)e(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:65)
N(cid:61)te(cid:65)(cid:1)t(cid:61)(cid:1)t(cid:54)e(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:65)
N(cid:61)te(cid:65)(cid:1)t(cid:61)(cid:1)t(cid:54)e(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:65)
N(cid:61)te(cid:65)(cid:1)t(cid:61)(cid:1)t(cid:54)e(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:65)
N(cid:61)te(cid:65)(cid:1)t(cid:61)(cid:1)t(cid:54)e(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:65)
N(cid:61)te(cid:65)(cid:1)t(cid:61)(cid:1)t(cid:54)e(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:65)
N(cid:61)te(cid:65)(cid:1)t(cid:61)(cid:1)t(cid:54)e(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ate(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:65)
N(cid:61)te(cid:1)(cid:10)(cid:8)(cid:1)(cid:38)(cid:67)mma(cid:64)(cid:71)(cid:1)(cid:61)(cid:52)(cid:1)(cid:38)i(cid:53)(cid:60)i(cid:52)i(cid:49)a(cid:60)t(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ti(cid:60)(cid:53)(cid:1)(cid:35)(cid:61)li(cid:49)ie(cid:65)
N(cid:61)te(cid:1)(cid:10)(cid:8)(cid:1)(cid:38)(cid:67)mma(cid:64)(cid:71)(cid:1)(cid:61)(cid:52)(cid:1)(cid:38)i(cid:53)(cid:60)i(cid:52)i(cid:49)a(cid:60)t(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ti(cid:60)(cid:53)(cid:1)(cid:35)(cid:61)li(cid:49)ie(cid:65)
N(cid:61)te(cid:1)(cid:10)(cid:8)(cid:1)(cid:38)(cid:67)mma(cid:64)(cid:71)(cid:1)(cid:61)(cid:52)(cid:1)(cid:38)i(cid:53)(cid:60)i(cid:52)i(cid:49)a(cid:60)t(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ti(cid:60)(cid:53)(cid:1)(cid:35)(cid:61)li(cid:49)ie(cid:65)
N(cid:61)te(cid:1)(cid:10)(cid:8)(cid:1)(cid:38)(cid:67)mma(cid:64)(cid:71)(cid:1)(cid:61)(cid:52)(cid:1)(cid:38)i(cid:53)(cid:60)i(cid:52)i(cid:49)a(cid:60)t(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ti(cid:60)(cid:53)(cid:1)(cid:35)(cid:61)li(cid:49)ie(cid:65)
N(cid:61)te(cid:1)(cid:10)(cid:8)(cid:1)(cid:38)(cid:67)mma(cid:64)(cid:71)(cid:1)(cid:61)(cid:52)(cid:1)(cid:38)i(cid:53)(cid:60)i(cid:52)i(cid:49)a(cid:60)t(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ti(cid:60)(cid:53)(cid:1)(cid:35)(cid:61)li(cid:49)ie(cid:65)
N(cid:61)te(cid:1)(cid:10)(cid:8)(cid:1)(cid:38)(cid:67)mma(cid:64)(cid:71)(cid:1)(cid:61)(cid:52)(cid:1)(cid:38)i(cid:53)(cid:60)i(cid:52)i(cid:49)a(cid:60)t(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ti(cid:60)(cid:53)(cid:1)(cid:35)(cid:61)li(cid:49)ie(cid:65)
N(cid:61)te(cid:1)(cid:10)(cid:8)(cid:1)(cid:38)(cid:67)mma(cid:64)(cid:71)(cid:1)(cid:61)(cid:52)(cid:1)(cid:38)i(cid:53)(cid:60)i(cid:52)i(cid:49)a(cid:60)t(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ti(cid:60)(cid:53)(cid:1)(cid:35)(cid:61)li(cid:49)ie(cid:65)
(cid:35)(cid:64)i(cid:60)(cid:49)i(cid:62)le(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ati(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:1)(cid:35)(cid:64)e(cid:65)e(cid:60)tati(cid:61)(cid:60)
(cid:35)(cid:64)i(cid:60)(cid:49)i(cid:62)le(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ati(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:1)(cid:35)(cid:64)e(cid:65)e(cid:60)tati(cid:61)(cid:60)
(cid:35)(cid:64)i(cid:60)(cid:49)i(cid:62)le(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ati(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:1)(cid:35)(cid:64)e(cid:65)e(cid:60)tati(cid:61)(cid:60)
(cid:35)(cid:64)i(cid:60)(cid:49)i(cid:62)le(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ati(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:1)(cid:35)(cid:64)e(cid:65)e(cid:60)tati(cid:61)(cid:60)
(cid:35)(cid:64)i(cid:60)(cid:49)i(cid:62)le(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ati(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:1)(cid:35)(cid:64)e(cid:65)e(cid:60)tati(cid:61)(cid:60)
(cid:35)(cid:64)i(cid:60)(cid:49)i(cid:62)le(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ati(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:1)(cid:35)(cid:64)e(cid:65)e(cid:60)tati(cid:61)(cid:60)
(cid:35)(cid:64)i(cid:60)(cid:49)i(cid:62)le(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)(cid:61)(cid:60)(cid:65)(cid:61)li(cid:50)ati(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:1)(cid:35)(cid:64)e(cid:65)e(cid:60)tati(cid:61)(cid:60)
Our Consolidated Financial Statements include the accounts of Textron Inc. and its ma(cid:65)ority-owned subsidiaries. Our financings
Our Consolidated Financial Statements include the accounts of Textron Inc. and its ma(cid:65)ority-owned subsidiaries. Our financings
Our Consolidated Financial Statements include the accounts of Textron Inc. and its ma(cid:65)ority-owned subsidiaries. Our financings
Our Consolidated Financial Statements include the accounts of Textron Inc. and its ma(cid:65)ority-owned subsidiaries. Our financings
Our Consolidated Financial Statements include the accounts of Textron Inc. and its ma(cid:65)ority-owned subsidiaries. Our financings
Our Consolidated Financial Statements include the accounts of Textron Inc. and its ma(cid:65)ority-owned subsidiaries. Our financings
Our Consolidated Financial Statements include the accounts of Textron Inc. and its ma(cid:65)ority-owned subsidiaries. Our financings
are conducted through two separate borrowing groups. The Manufacturing group consists of Textron Inc. consolidated with its
are conducted through two separate borrowing groups. The Manufacturing group consists of Textron Inc. consolidated with its
are conducted through two separate borrowing groups. The Manufacturing group consists of Textron Inc. consolidated with its
are conducted through two separate borrowing groups. The Manufacturing group consists of Textron Inc. consolidated with its
are conducted through two separate borrowing groups. The Manufacturing group consists of Textron Inc. consolidated with its
are conducted through two separate borrowing groups. The Manufacturing group consists of Textron Inc. consolidated with its
are conducted through two separate borrowing groups. The Manufacturing group consists of Textron Inc. consolidated with its
ma(cid:65)ority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation
ma(cid:65)ority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation
ma(cid:65)ority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation
ma(cid:65)ority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation
ma(cid:65)ority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation
ma(cid:65)ority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation
ma(cid:65)ority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation
segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation (TFC) and its
segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation (TFC) and its
segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation (TFC) and its
segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation (TFC) and its
segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation (TFC) and its
segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation (TFC) and its
segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation (TFC) and its
consolidated subsidiaries. (cid:49)e designed this framework to enhance our borrowing power by separating the Finance group. Our
consolidated subsidiaries. (cid:49)e designed this framework to enhance our borrowing power by separating the Finance group. Our
consolidated subsidiaries. (cid:49)e designed this framework to enhance our borrowing power by separating the Finance group. Our
consolidated subsidiaries. (cid:49)e designed this framework to enhance our borrowing power by separating the Finance group. Our
consolidated subsidiaries. (cid:49)e designed this framework to enhance our borrowing power by separating the Finance group. Our
consolidated subsidiaries. (cid:49)e designed this framework to enhance our borrowing power by separating the Finance group. Our
consolidated subsidiaries. (cid:49)e 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
Manufacturing group operations include the development, production and delivery of tangible goods and services, while our
Manufacturing group operations include the development, production and delivery of tangible goods and services, while our
Manufacturing group operations include the development, production and delivery of tangible goods and services, while our
Manufacturing group operations include the development, production and delivery of tangible goods and services, while our
Manufacturing group operations include the development, production and delivery of tangible goods and services, while 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(cid:88)s activities,
Finance group provides financial services. Due to the fundamental differences between each borrowing group(cid:88)s activities,
Finance group provides financial services. Due to the fundamental differences between each borrowing group(cid:88)s activities,
Finance group provides financial services. Due to the fundamental differences between each borrowing group(cid:88)s activities,
Finance group provides financial services. Due to the fundamental differences between each borrowing group(cid:88)s activities,
Finance group provides financial services. Due to the fundamental differences between each borrowing group(cid:88)s activities,
Finance group provides financial services. Due to the fundamental differences between each borrowing group(cid:88)s activities,
investors, rating agencies and analysts use different measures to evaluate each group(cid:88)s performance. To support those evaluations,
investors, rating agencies and analysts use different measures to evaluate each group(cid:88)s performance. To support those evaluations,
investors, rating agencies and analysts use different measures to evaluate each group(cid:88)s performance. To support those evaluations,
investors, rating agencies and analysts use different measures to evaluate each group(cid:88)s performance. To support those evaluations,
investors, rating agencies and analysts use different measures to evaluate each group(cid:88)s performance. To support those evaluations,
investors, rating agencies and analysts use different measures to evaluate each group(cid:88)s performance. To support those evaluations,
investors, rating agencies and analysts use different measures to evaluate each group(cid:88)s performance. To support those evaluations,
we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.
we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.
we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.
we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.
we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.
we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.
we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.
Our Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell
Our Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell
Our Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell
Our Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell
Our Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell
Our Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell
helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of
Our Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell
helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of
helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of
helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of
helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of
helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of
helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of
Cash Flows, cash received from customers is reflected as operating activities when received from third parties. (cid:34)owever, in the
Cash Flows, cash received from customers is reflected as operating activities when received from third parties. (cid:34)owever, in the
Cash Flows, cash received from customers is reflected as operating activities when received from third parties. (cid:34)owever, in the
Cash Flows, cash received from customers is reflected as operating activities when received from third parties. (cid:34)owever, in the
Cash Flows, cash received from customers is reflected as operating activities when received from third parties. (cid:34)owever, in the
Cash Flows, cash received from customers is reflected as operating activities when received from third parties. (cid:34)owever, in the
Cash Flows, cash received from customers is reflected as operating activities when received from third parties. (cid:34)owever, in the
cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected
cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected
cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected
cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected
cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected
cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected
based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is
cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected
based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is
based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is
based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is
based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is
based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is
financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in
based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is
financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in
financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in
financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in
financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in
financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in
financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in
the Finance group(cid:88)s statement of cash flows. Meanwhile, in the Manufacturing group(cid:88)s statement of cash flows, the cash received
the Finance group(cid:88)s statement of cash flows. Meanwhile, in the Manufacturing group(cid:88)s statement of cash flows, the cash received
the Finance group(cid:88)s statement of cash flows. Meanwhile, in the Manufacturing group(cid:88)s statement of cash flows, the cash received
the Finance group(cid:88)s statement of cash flows. Meanwhile, in the Manufacturing group(cid:88)s statement of cash flows, the cash received
the Finance group(cid:88)s statement of cash flows. Meanwhile, in the Manufacturing group(cid:88)s statement of cash flows, the cash received
the Finance group(cid:88)s statement of cash flows. Meanwhile, in the Manufacturing group(cid:88)s statement of cash flows, the cash received
the Finance group(cid:88)s statement of cash flows. Meanwhile, in the Manufacturing group(cid:88)s statement of cash flows, the cash received
from the Finance group on the customer(cid:88)s behalf is recorded within operating cash flows as a cash inflow. Although cash is
from the Finance group on the customer(cid:88)s behalf is recorded within operating cash flows as a cash inflow. Although cash is
from the Finance group on the customer(cid:88)s behalf is recorded within operating cash flows as a cash inflow. Although cash is
from the Finance group on the customer(cid:88)s behalf is recorded within operating cash flows as a cash inflow. Although cash is
from the Finance group on the customer(cid:88)s behalf is recorded within operating cash flows as a cash inflow. Although cash is
from the Finance group on the customer(cid:88)s behalf is recorded within operating cash flows as a cash inflow. Although cash is
from the Finance group on the customer(cid:88)s behalf is recorded within operating cash flows as a cash inflow. Although cash is
transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of
transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of
transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of
transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of
transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of
transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of
the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or
transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of
the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or
the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or
the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or
the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or
the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or
eliminated in consolidation.
the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or
eliminated in consolidation.
eliminated in consolidation.
eliminated in consolidation.
eliminated in consolidation.
eliminated in consolidation.
eliminated in consolidation.
(cid:22)(cid:61)lla(cid:48)(cid:61)(cid:64)ati(cid:68)e(cid:1)(cid:20)(cid:64)(cid:64)a(cid:60)(cid:53)eme(cid:60)t(cid:65)
(cid:22)(cid:61)lla(cid:48)(cid:61)(cid:64)ati(cid:68)e(cid:1)(cid:20)(cid:64)(cid:64)a(cid:60)(cid:53)eme(cid:60)t(cid:65)
(cid:22)(cid:61)lla(cid:48)(cid:61)(cid:64)ati(cid:68)e(cid:1)(cid:20)(cid:64)(cid:64)a(cid:60)(cid:53)eme(cid:60)t(cid:65)
(cid:22)(cid:61)lla(cid:48)(cid:61)(cid:64)ati(cid:68)e(cid:1)(cid:20)(cid:64)(cid:64)a(cid:60)(cid:53)eme(cid:60)t(cid:65)
(cid:22)(cid:61)lla(cid:48)(cid:61)(cid:64)ati(cid:68)e(cid:1)(cid:20)(cid:64)(cid:64)a(cid:60)(cid:53)eme(cid:60)t(cid:65)
(cid:22)(cid:61)lla(cid:48)(cid:61)(cid:64)ati(cid:68)e(cid:1)(cid:20)(cid:64)(cid:64)a(cid:60)(cid:53)eme(cid:60)t(cid:65)
(cid:22)(cid:61)lla(cid:48)(cid:61)(cid:64)ati(cid:68)e(cid:1)(cid:20)(cid:64)(cid:64)a(cid:60)(cid:53)eme(cid:60)t(cid:65)
Our Bell segment has a strategic alliance agreement with a third-party company to provide engineering, development and test
Our Bell segment has a strategic alliance agreement with a third-party company to provide engineering, development and test
Our Bell segment has a strategic alliance agreement with a third-party company to provide engineering, development and test
Our Bell segment has a strategic alliance agreement with a third-party company to provide engineering, development and test
Our Bell segment has a strategic alliance agreement with a third-party company to provide engineering, development and test
Our Bell segment has a strategic alliance agreement with a third-party company to provide engineering, development and test
Our Bell segment has a strategic alliance agreement with a third-party company to provide engineering, development and test
services related to the V-22 aircraft, as well as to produce the V-22 aircraft, under a number of separate contracts with the (cid:47).S.
services related to the V-22 aircraft, as well as to produce the V-22 aircraft, under a number of separate contracts with the (cid:47).S.
services related to the V-22 aircraft, as well as to produce the V-22 aircraft, under a number of separate contracts with the (cid:47).S.
services related to the V-22 aircraft, as well as to produce the V-22 aircraft, under a number of separate contracts with the (cid:47).S.
services related to the V-22 aircraft, as well as to produce the V-22 aircraft, under a number of separate contracts with the (cid:47).S.
services related to the V-22 aircraft, as well as to produce the V-22 aircraft, under a number of separate contracts with the (cid:47).S.
services related to the V-22 aircraft, as well as to produce the V-22 aircraft, under a number of separate contracts with the (cid:47).S.
Government (V-22 Contracts). The alliance created by this agreement is not a legal entity and has no employees, no assets and no
Government (V-22 Contracts). The alliance created by this agreement is not a legal entity and has no employees, no assets and no
Government (V-22 Contracts). The alliance created by this agreement is not a legal entity and has no employees, no assets and no
Government (V-22 Contracts). The alliance created by this agreement is not a legal entity and has no employees, no assets and no
Government (V-22 Contracts). The alliance created by this agreement is not a legal entity and has no employees, no assets and no
Government (V-22 Contracts). The alliance created by this agreement is not a legal entity and has no employees, no assets and no
Government (V-22 Contracts). The alliance created by this agreement is not a legal entity and has no employees, no assets and no
true operations. This agreement creates contractual rights and does not represent an entity in which we have an equity interest. (cid:49)e
true operations. This agreement creates contractual rights and does not represent an entity in which we have an equity interest. (cid:49)e
true operations. This agreement creates contractual rights and does not represent an entity in which we have an equity interest. (cid:49)e
true operations. This agreement creates contractual rights and does not represent an entity in which we have an equity interest. (cid:49)e
true operations. This agreement creates contractual rights and does not represent an entity in which we have an equity interest. (cid:49)e
true operations. This agreement creates contractual rights and does not represent an entity in which we have an equity interest. (cid:49)e
true operations. This agreement creates contractual rights and does not represent an entity in which we have an equity interest. (cid:49)e
account for this alliance as a collaborative arrangement with Bell and the third-party company reporting costs incurred and
account for this alliance as a collaborative arrangement with Bell and the third-party company reporting costs incurred and
account for this alliance as a collaborative arrangement with Bell and the third-party company reporting costs incurred and
account for this alliance as a collaborative arrangement with Bell and the third-party company reporting costs incurred and
account for this alliance as a collaborative arrangement with Bell and the third-party company reporting costs incurred and
account for this alliance as a collaborative arrangement with Bell and the third-party company reporting costs incurred and
account for this alliance as a collaborative arrangement with Bell and the third-party company reporting costs incurred and
revenues generated from transactions with the (cid:47).S. Government in each company(cid:88)s respective income statement. Neither Bell nor
revenues generated from transactions with the (cid:47).S. Government in each company(cid:88)s respective income statement. Neither Bell nor
revenues generated from transactions with the (cid:47).S. Government in each company(cid:88)s respective income statement. Neither Bell nor
revenues generated from transactions with the (cid:47).S. Government in each company(cid:88)s respective income statement. Neither Bell nor
revenues generated from transactions with the (cid:47).S. Government in each company(cid:88)s respective income statement. Neither Bell nor
revenues generated from transactions with the (cid:47).S. Government in each company(cid:88)s respective income statement. Neither Bell nor
revenues generated from transactions with the (cid:47).S. Government in each company(cid:88)s respective income statement. Neither Bell nor
the third-party company is considered to be the principal participant for the transactions recorded under this agreement. Profits on
the third-party company is considered to be the principal participant for the transactions recorded under this agreement. Profits on
the third-party company is considered to be the principal participant for the transactions recorded under this agreement. Profits on
the third-party company is considered to be the principal participant for the transactions recorded under this agreement. Profits on
the third-party company is considered to be the principal participant for the transactions recorded under this agreement. Profits on
the third-party company is considered to be the principal participant for the transactions recorded under this agreement. Profits on
the third-party company is considered to be the principal participant for the transactions recorded under this agreement. Profits on
cost-plus contracts are allocated between Bell and the third-party company on a (cid:20)0(cid:4)-(cid:20)0(cid:4) basis. Negotiated profits on fixed-price
cost-plus contracts are allocated between Bell and the third-party company on a (cid:20)0(cid:4)-(cid:20)0(cid:4) basis. Negotiated profits on fixed-price
cost-plus contracts are allocated between Bell and the third-party company on a (cid:20)0(cid:4)-(cid:20)0(cid:4) basis. Negotiated profits on fixed-price
cost-plus contracts are allocated between Bell and the third-party company on a (cid:20)0(cid:4)-(cid:20)0(cid:4) basis. Negotiated profits on fixed-price
cost-plus contracts are allocated between Bell and the third-party company on a (cid:20)0(cid:4)-(cid:20)0(cid:4) basis. Negotiated profits on fixed-price
cost-plus contracts are allocated between Bell and the third-party company on a (cid:20)0(cid:4)-(cid:20)0(cid:4) basis. Negotiated profits on fixed-price
cost-plus contracts are allocated between Bell and the third-party company on a (cid:20)0(cid:4)-(cid:20)0(cid:4) basis. Negotiated profits on fixed-price
contracts are also allocated (cid:20)0(cid:4)-(cid:20)0(cid:4)(cid:26) however, Bell and the third-party company are each responsible for their own cost overruns
contracts are also allocated (cid:20)0(cid:4)-(cid:20)0(cid:4)(cid:26) however, Bell and the third-party company are each responsible for their own cost overruns
contracts are also allocated (cid:20)0(cid:4)-(cid:20)0(cid:4)(cid:26) however, Bell and the third-party company are each responsible for their own cost overruns
contracts are also allocated (cid:20)0(cid:4)-(cid:20)0(cid:4)(cid:26) however, Bell and the third-party company are each responsible for their own cost overruns
contracts are also allocated (cid:20)0(cid:4)-(cid:20)0(cid:4)(cid:26) however, Bell and the third-party company are each responsible for their own cost overruns
contracts are also allocated (cid:20)0(cid:4)-(cid:20)0(cid:4)(cid:26) however, Bell and the third-party company are each responsible for their own cost overruns
contracts are also allocated (cid:20)0(cid:4)-(cid:20)0(cid:4)(cid:26) however, Bell and the third-party company are each responsible for their own cost overruns
and are entitled to retain any cost underruns. Based on the contractual arrangement established under the alliance, Bell accounts
and are entitled to retain any cost underruns. Based on the contractual arrangement established under the alliance, Bell accounts
and are entitled to retain any cost underruns. Based on the contractual arrangement established under the alliance, Bell accounts
and are entitled to retain any cost underruns. Based on the contractual arrangement established under the alliance, Bell accounts
and are entitled to retain any cost underruns. Based on the contractual arrangement established under the alliance, Bell accounts
and are entitled to retain any cost underruns. Based on the contractual arrangement established under the alliance, Bell accounts
and are entitled to retain any cost underruns. Based on the contractual arrangement established under the alliance, Bell accounts
for its rights and obligations under the specific requirements of the V-22 Contracts allocated to Bell under the work breakdown
for its rights and obligations under the specific requirements of the V-22 Contracts allocated to Bell under the work breakdown
for its rights and obligations under the specific requirements of the V-22 Contracts allocated to Bell under the work breakdown
for its rights and obligations under the specific requirements of the V-22 Contracts allocated to Bell under the work breakdown
for its rights and obligations under the specific requirements of the V-22 Contracts allocated to Bell under the work breakdown
for its rights and obligations under the specific requirements of the V-22 Contracts allocated to Bell under the work breakdown
for its rights and obligations under the specific requirements of the V-22 Contracts allocated to Bell under the work breakdown
structure. (cid:49)e account for all of our rights and obligations, including warranty, product and any contingent liabilities, under the
structure. (cid:49)e account for all of our rights and obligations, including warranty, product and any contingent liabilities, under the
structure. (cid:49)e account for all of our rights and obligations, including warranty, product and any contingent liabilities, under the
structure. (cid:49)e account for all of our rights and obligations, including warranty, product and any contingent liabilities, under the
structure. (cid:49)e account for all of our rights and obligations, including warranty, product and any contingent liabilities, under the
structure. (cid:49)e account for all of our rights and obligations, including warranty, product and any contingent liabilities, under the
structure. (cid:49)e account for all of our rights and obligations, including warranty, product and any contingent liabilities, under the
specific requirements of the V-22 Contracts allocated to us under the agreement. Revenues and cost of sales reflect our
specific requirements of the V-22 Contracts allocated to us under the agreement. Revenues and cost of sales reflect our
specific requirements of the V-22 Contracts allocated to us under the agreement. Revenues and cost of sales reflect our
specific requirements of the V-22 Contracts allocated to us under the agreement. Revenues and cost of sales reflect our
specific requirements of the V-22 Contracts allocated to us under the agreement. Revenues and cost of sales reflect our
specific requirements of the V-22 Contracts allocated to us under the agreement. Revenues and cost of sales reflect our
specific requirements of the V-22 Contracts allocated to us under the agreement. Revenues and cost of sales reflect our
performance under the V-22 Contracts with revenues recogni(cid:81)ed using the cost-to-cost method. (cid:49)e include all assets used in
performance under the V-22 Contracts with revenues recogni(cid:81)ed using the cost-to-cost method. (cid:49)e include all assets used in
performance under the V-22 Contracts with revenues recogni(cid:81)ed using the cost-to-cost method. (cid:49)e include all assets used in
performance under the V-22 Contracts with revenues recogni(cid:81)ed using the cost-to-cost method. (cid:49)e include all assets used in
performance under the V-22 Contracts with revenues recogni(cid:81)ed using the cost-to-cost method. (cid:49)e include all assets used in
performance under the V-22 Contracts with revenues recogni(cid:81)ed using the cost-to-cost method. (cid:49)e include all assets used in
performance under the V-22 Contracts with revenues recogni(cid:81)ed using the cost-to-cost method. (cid:49)e include all assets used in
performance of the V-22 Contracts that we own and all liabilities arising from our obligations under the V-22 Contracts in our
performance of the V-22 Contracts that we own and all liabilities arising from our obligations under the V-22 Contracts in our
performance of the V-22 Contracts that we own and all liabilities arising from our obligations under the V-22 Contracts in our
performance of the V-22 Contracts that we own and all liabilities arising from our obligations under the V-22 Contracts in our
performance of the V-22 Contracts that we own and all liabilities arising from our obligations under the V-22 Contracts in our
performance of the V-22 Contracts that we own and all liabilities arising from our obligations under the V-22 Contracts in our
performance of the V-22 Contracts that we own and all liabilities arising from our obligations under the V-22 Contracts in our
Consolidated Balance Sheets.
Consolidated Balance Sheets.
Consolidated Balance Sheets.
Consolidated Balance Sheets.
Consolidated Balance Sheets.
Consolidated Balance Sheets.
Consolidated Balance Sheets.
(cid:40)(cid:65)e(cid:1)(cid:61)(cid:52)(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:40)(cid:65)e(cid:1)(cid:61)(cid:52)(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:40)(cid:65)e(cid:1)(cid:61)(cid:52)(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:40)(cid:65)e(cid:1)(cid:61)(cid:52)(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:40)(cid:65)e(cid:1)(cid:61)(cid:52)(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:40)(cid:65)e(cid:1)(cid:61)(cid:52)(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:40)(cid:65)e(cid:1)(cid:61)(cid:52)(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:49)e prepare our financial statements in conformity with generally accepted accounting principles, which require us to make
(cid:49)e prepare our financial statements in conformity with generally accepted accounting principles, which require us to make
(cid:49)e prepare our financial statements in conformity with generally accepted accounting principles, which require us to make
(cid:49)e prepare our financial statements in conformity with generally accepted accounting principles, which require us to make
(cid:49)e prepare our financial statements in conformity with generally accepted accounting principles, which require us to make
(cid:49)e prepare our financial statements in conformity with generally accepted accounting principles, which require us to make
(cid:49)e 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 and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those
estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those
estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those
estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those
estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those
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
estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the
estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the
estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the
estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the
estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the
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.
Consolidated Statements of Operations in the period that they are determined.
Consolidated Statements of Operations in the period that they are determined.
Consolidated Statements of Operations in the period that they are determined.
Consolidated Statements of Operations in the period that they are determined.
Consolidated Statements of Operations in the period that they are determined.
Consolidated Statements of Operations in the period that they are determined.
(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:1)(cid:37)e(cid:49)(cid:61)(cid:53)(cid:60)iti(cid:61)(cid:60)
(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:1)(cid:37)e(cid:49)(cid:61)(cid:53)(cid:60)iti(cid:61)(cid:60)
(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:1)(cid:37)e(cid:49)(cid:61)(cid:53)(cid:60)iti(cid:61)(cid:60)
(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:1)(cid:37)e(cid:49)(cid:61)(cid:53)(cid:60)iti(cid:61)(cid:60)
(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:1)(cid:37)e(cid:49)(cid:61)(cid:53)(cid:60)iti(cid:61)(cid:60)
(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:1)(cid:37)e(cid:49)(cid:61)(cid:53)(cid:60)iti(cid:61)(cid:60)
(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:1)(cid:37)e(cid:49)(cid:61)(cid:53)(cid:60)iti(cid:61)(cid:60)
Revenue is recogni(cid:81)ed when control of the product or service promised under the contract is transferred to the customer either at a
Revenue is recogni(cid:81)ed when control of the product or service promised under the contract is transferred to the customer either at a
Revenue is recogni(cid:81)ed when control of the product or service promised under the contract is transferred to the customer either at a
Revenue is recogni(cid:81)ed when control of the product or service promised under the contract is transferred to the customer either at a
Revenue is recogni(cid:81)ed when control of the product or service promised under the contract is transferred to the customer either at a
Revenue is recogni(cid:81)ed when control of the product or service promised under the contract is transferred to the customer either at a
Revenue is recogni(cid:81)ed when control of the product or service promised under the contract is transferred to the customer either at a
point in time (e.g., upon delivery) or over time (e.g., as we perform under the contract). (cid:49)e account for a contract when it has
point in time (e.g., upon delivery) or over time (e.g., as we perform under the contract). (cid:49)e account for a contract when it has
point in time (e.g., upon delivery) or over time (e.g., as we perform under the contract). (cid:49)e account for a contract when it has
point in time (e.g., upon delivery) or over time (e.g., as we perform under the contract). (cid:49)e account for a contract when it has
point in time (e.g., upon delivery) or over time (e.g., as we perform under the contract). (cid:49)e account for a contract when it has
point in time (e.g., upon delivery) or over time (e.g., as we perform under the contract). (cid:49)e account for a contract when it has
point in time (e.g., upon delivery) or over time (e.g., as we perform under the contract). (cid:49)e account for a contract when it has
approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has
approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has
approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has
approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has
approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has
approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has
approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has
commercial substance and collectability of consideration is probable. Contracts are reviewed to determine whether there is one or
commercial substance and collectability of consideration is probable. Contracts are reviewed to determine whether there is one or
commercial substance and collectability of consideration is probable. Contracts are reviewed to determine whether there is one or
commercial substance and collectability of consideration is probable. Contracts are reviewed to determine whether there is one or
commercial substance and collectability of consideration is probable. Contracts are reviewed to determine whether there is one or
commercial substance and collectability of consideration is probable. Contracts are reviewed to determine whether there is one or
commercial substance and collectability of consideration is probable. Contracts are reviewed to determine whether there is one or
multiple performance obligations. A performance obligation is a promise to transfer a distinct product or service to a customer
multiple performance obligations. A performance obligation is a promise to transfer a distinct product or service to a customer
multiple performance obligations. A performance obligation is a promise to transfer a distinct product or service to a customer
multiple performance obligations. A performance obligation is a promise to transfer a distinct product or service to a customer
multiple performance obligations. A performance obligation is a promise to transfer a distinct product or service to a customer
multiple performance obligations. A performance obligation is a promise to transfer a distinct product or service to a customer
multiple performance obligations. A performance obligation is a promise to transfer a distinct product or service to a customer
and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected
and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected
and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected
and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected
and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected
and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected
and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected
consideration, or the transaction price, is allocated to each performance obligation identified in the contract based on the relative
consideration, or the transaction price, is allocated to each performance obligation identified in the contract based on the relative
consideration, or the transaction price, is allocated to each performance obligation identified in the contract based on the relative
consideration, or the transaction price, is allocated to each performance obligation identified in the contract based on the relative
consideration, or the transaction price, is allocated to each performance obligation identified in the contract based on the relative
consideration, or the transaction price, is allocated to each performance obligation identified in the contract based on the relative
consideration, or the transaction price, is allocated to each performance obligation identified in the contract based on the relative
standalone selling price of each performance obligation. Revenue is then recogni(cid:81)ed for the transaction price allocated to the
standalone selling price of each performance obligation. Revenue is then recogni(cid:81)ed for the transaction price allocated to the
standalone selling price of each performance obligation. Revenue is then recogni(cid:81)ed for the transaction price allocated to the
standalone selling price of each performance obligation. Revenue is then recogni(cid:81)ed for the transaction price allocated to the
standalone selling price of each performance obligation. Revenue is then recogni(cid:81)ed for the transaction price allocated to the
standalone selling price of each performance obligation. Revenue is then recogni(cid:81)ed for the transaction price allocated to the
standalone selling price of each performance obligation. Revenue is then recogni(cid:81)ed for the transaction price allocated to the
40 Textron 2023 Annual Report
40
40
40
40
40
40
40
performance obligation when control of the promised product or service underlying the performance obligation is transferred.
Contract consideration is not ad(cid:65)usted for the effects of a significant financing component when, at contract inception, the period
between when control transfers and when the customer will pay for that good or service is one year or less.
Revenue is classified as product or service revenue based on the predominant attributes of each performance obligation.
(cid:22)omm(cid:44)(cid:57)(cid:42)i(cid:40)l (cid:22)on(cid:59)(cid:57)(cid:40)(cid:42)(cid:59)s
The ma(cid:65)ority of our contracts with commercial customers have a single performance obligation as there is only one product or
service promised or the promise to transfer the product or service is not distinct or separately identifiable from other promises in
the contract. Revenue is primarily recogni(cid:81)ed at a point in time, which is generally when the customer obtains control of the asset
upon delivery and customer acceptance. Contract modifications that provide for additional distinct products or services at the
standalone selling price are treated as separate contracts.
For commercial aircraft, we contract with our customers to sell fully outfitted fixed-wing aircraft, which may include
configuration options. The aircraft typically represents a single performance obligation and revenue is recogni(cid:81)ed upon customer
acceptance and delivery. For commercial helicopters, our customers generally contract with us for fully functional basic
configuration aircraft and control is transferred upon customer acceptance and delivery. At times, customers may separately
contract with us for the installation of accessories and customi(cid:81)ation to the basic aircraft. If these contracts are entered into at or
near the same time of the basic aircraft contract, we assess whether the contracts meet the criteria to be combined. For contracts
that are combined, the basic aircraft and the accessories and customi(cid:81)ation are typically considered to be distinct, and therefore,
are separate performance obligations. For these contracts, revenue is recogni(cid:81)ed on the basic aircraft upon customer acceptance
and transfer of title and risk of loss, and on the accessories and customi(cid:81)ation, upon delivery and customer acceptance. (cid:49)e utili(cid:81)e
observable prices to determine the standalone selling prices when allocating the transaction price to these performance
obligations.
The transaction price for our commercial contracts reflects our estimate of returns, rebates and discounts, which are based on
historical, current and forecasted information. Amounts billed to customers for shipping and handling are included in the
transaction price and generally are not treated as separate performance obligations as these costs fulfill a promise to transfer the
product to the customer. Taxes collected from customers and remitted to government authorities are recorded on a net basis.
(cid:49)e primarily provide standard warranty programs for products in our commercial businesses for periods that typically range from
one year to five years. These assurance-type programs typically cannot be purchased separately and do not meet the criteria to be
considered a performance obligation.
(cid:38)(cid:8)(cid:36)(cid:8) (cid:26)o(cid:61)(cid:44)(cid:57)nm(cid:44)n(cid:59) (cid:22)on(cid:59)(cid:57)(cid:40)(cid:42)(cid:59)s
Our contracts with the (cid:47).S. Government generally include the design, development, manufacture or modification of aerospace
and defense products, as well as related services. These contracts, which also include those under the (cid:47).S. Government-sponsored
foreign military sales program, accounted for approximately 21(cid:4) of total revenues in 2023. The customer typically contracts
with us to provide a significant service of integrating a complex set of tasks and components into a single pro(cid:65)ect or capability,
which often results in the delivery of multiple units. Accordingly, the entire contract is accounted for as one performance
obligation. In certain circumstances, a contract may include both production and support services, such as logistics and parts
plans, which are considered to be distinct in the context of the contract and represent separate performance obligations. (cid:49)hen a
contract is separated into more than one performance obligation, we generally utili(cid:81)e the expected cost plus a margin approach to
determine the standalone selling prices when allocating the transaction price.
Our contracts are frequently modified for changes in contract specifications and requirements. Most of our contract modifications
with the (cid:47).S. Government are for products and services that are not distinct from the existing contract due to the significant
integration service provided in the context of the contract and are accounted for as part of that existing contract. The effect of
these contract modifications on our estimates is recogni(cid:81)ed using the cumulative catch-up method of accounting.
Contracts with the (cid:47).S. Government generally contain clauses that provide lien rights to work-in-process along with clauses that
allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and
take control of any work-in-process. Due to the continuous transfer of control to the (cid:47).S. Government, we recogni(cid:81)e revenue over
the time that we perform under the contract. Selecting the method to measure progress towards completion requires (cid:65)udgment and
is based on the nature of the products or service to be provided. (cid:49)e generally use the cost-to-cost method to measure progress for
our contracts because it best depicts the transfer of control to the customer that occurs as we incur costs on our contracts. (cid:47)nder
this measure, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the estimated
costs at completion of the performance obligation, and revenue is recorded proportionally as costs are incurred.
41
Textron 2023 Annual Report 41
The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions
The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions
The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions
The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions
The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions
The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions
regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees or other provisions that
The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions
The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions
regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees or other provisions that
regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees or other provisions that
regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees or other provisions that
regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees or other provisions that
regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees or other provisions that
can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain
regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees or other provisions that
can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain
regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees or other provisions that
can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain
can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain
can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain
can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain
performance metrics, program milestones or cost targets and can be based upon customer discretion. (cid:49)e include estimated
can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain
performance metrics, program milestones or cost targets and can be based upon customer discretion. (cid:49)e include estimated
can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain
performance metrics, program milestones or cost targets and can be based upon customer discretion. (cid:49)e include estimated
performance metrics, program milestones or cost targets and can be based upon customer discretion. (cid:49)e include estimated
performance metrics, program milestones or cost targets and can be based upon customer discretion. (cid:49)e include estimated
performance metrics, program milestones or cost targets and can be based upon customer discretion. (cid:49)e include estimated
amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recogni(cid:81)ed will not
performance metrics, program milestones or cost targets and can be based upon customer discretion. (cid:49)e include estimated
performance metrics, program milestones or cost targets and can be based upon customer discretion. (cid:49)e include estimated
amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recogni(cid:81)ed will not
amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recogni(cid:81)ed will not
amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recogni(cid:81)ed will not
amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recogni(cid:81)ed will not
amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recogni(cid:81)ed will not
occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and
amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recogni(cid:81)ed will not
amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recogni(cid:81)ed will not
occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and
occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and
occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and
occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and
occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and
determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our
occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and
occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and
determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our
determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our
determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our
determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our
determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our
anticipated performance, historical performance, and all other information that is reasonably available to us.
determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our
anticipated performance, historical performance, and all other information that is reasonably available to us.
determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our
anticipated performance, historical performance, and all other information that is reasonably available to us.
anticipated performance, historical performance, and all other information that is reasonably available to us.
anticipated performance, historical performance, and all other information that is reasonably available to us.
anticipated performance, historical performance, and all other information that is reasonably available to us.
anticipated performance, historical performance, and all other information that is reasonably available to us.
anticipated performance, historical performance, and all other information that is reasonably available to us.
Total contract cost is estimated utili(cid:81)ing current contract specifications and expected engineering requirements. Contract costs
Total contract cost is estimated utili(cid:81)ing current contract specifications and expected engineering requirements. Contract costs
Total contract cost is estimated utili(cid:81)ing current contract specifications and expected engineering requirements. Contract costs
Total contract cost is estimated utili(cid:81)ing current contract specifications and expected engineering requirements. Contract costs
Total contract cost is estimated utili(cid:81)ing current contract specifications and expected engineering requirements. Contract costs
Total contract cost is estimated utili(cid:81)ing current contract specifications and expected engineering requirements. Contract costs
typically are incurred over a period of several years, and the estimation of these costs requires substantial (cid:65)udgment. Our cost
Total contract cost is estimated utili(cid:81)ing current contract specifications and expected engineering requirements. Contract costs
Total contract cost is estimated utili(cid:81)ing current contract specifications and expected engineering requirements. Contract costs
typically are incurred over a period of several years, and the estimation of these costs requires substantial (cid:65)udgment. Our cost
typically are incurred over a period of several years, and the estimation of these costs requires substantial (cid:65)udgment. Our cost
typically are incurred over a period of several years, and the estimation of these costs requires substantial (cid:65)udgment. Our cost
typically are incurred over a period of several years, and the estimation of these costs requires substantial (cid:65)udgment. Our cost
typically are incurred over a period of several years, and the estimation of these costs requires substantial (cid:65)udgment. Our cost
estimation process is based on the professional knowledge and experience of engineers and program managers along with finance
typically are incurred over a period of several years, and the estimation of these costs requires substantial (cid:65)udgment. Our cost
estimation process is based on the professional knowledge and experience of engineers and program managers along with finance
typically are incurred over a period of several years, and the estimation of these costs requires substantial (cid:65)udgment. Our cost
estimation process is based on the professional knowledge and experience of engineers and program managers along with finance
estimation process is based on the professional knowledge and experience of engineers and program managers along with finance
estimation process is based on the professional knowledge and experience of engineers and program managers along with finance
estimation process is based on the professional knowledge and experience of engineers and program managers along with finance
professionals. (cid:49)e review and update our pro(cid:65)ections of costs quarterly or more frequently when circumstances significantly
estimation process is based on the professional knowledge and experience of engineers and program managers along with finance
estimation process is based on the professional knowledge and experience of engineers and program managers along with finance
professionals. (cid:49)e review and update our pro(cid:65)ections of costs quarterly or more frequently when circumstances significantly
professionals. (cid:49)e review and update our pro(cid:65)ections of costs quarterly or more frequently when circumstances significantly
professionals. (cid:49)e review and update our pro(cid:65)ections of costs quarterly or more frequently when circumstances significantly
professionals. (cid:49)e review and update our pro(cid:65)ections of costs quarterly or more frequently when circumstances significantly
professionals. (cid:49)e review and update our pro(cid:65)ections of costs quarterly or more frequently when circumstances significantly
change.
professionals. (cid:49)e review and update our pro(cid:65)ections of costs quarterly or more frequently when circumstances significantly
change.
professionals. (cid:49)e review and update our pro(cid:65)ections of costs quarterly or more frequently when circumstances significantly
change.
change.
change.
change.
change.
change.
Approximately 73(cid:4) of our 2023 revenues with the (cid:47).S. Government were under fixed-price and fixed-price incentive contracts.
Approximately 73(cid:4) of our 2023 revenues with the (cid:47).S. Government were under fixed-price and fixed-price incentive contracts.
Approximately 73(cid:4) of our 2023 revenues with the (cid:47).S. Government were under fixed-price and fixed-price incentive contracts.
Approximately 73(cid:4) of our 2023 revenues with the (cid:47).S. Government were under fixed-price and fixed-price incentive contracts.
Approximately 73(cid:4) of our 2023 revenues with the (cid:47).S. Government were under fixed-price and fixed-price incentive contracts.
Approximately 73(cid:4) of our 2023 revenues with the (cid:47).S. Government were under fixed-price and fixed-price incentive contracts.
(cid:47)nder the typical payment terms of these contracts, the customer pays us either performance-based or progress payments.
Approximately 73(cid:4) of our 2023 revenues with the (cid:47).S. Government were under fixed-price and fixed-price incentive contracts.
(cid:47)nder the typical payment terms of these contracts, the customer pays us either performance-based or progress payments.
Approximately 73(cid:4) of our 2023 revenues with the (cid:47).S. Government were under fixed-price and fixed-price incentive contracts.
(cid:47)nder the typical payment terms of these contracts, the customer pays us either performance-based or progress payments.
(cid:47)nder the typical payment terms of these contracts, the customer pays us either performance-based or progress payments.
(cid:47)nder the typical payment terms of these contracts, the customer pays us either performance-based or progress payments.
(cid:47)nder the typical payment terms of these contracts, the customer pays us either performance-based or progress payments.
Performance-based payments represent interim payments of up to 90(cid:4) of the contract price based on quantifiable measures of
(cid:47)nder the typical payment terms of these contracts, the customer pays us either performance-based or progress payments.
(cid:47)nder the typical payment terms of these contracts, the customer pays us either performance-based or progress payments.
Performance-based payments represent interim payments of up to 90(cid:4) of the contract price based on quantifiable measures of
Performance-based payments represent interim payments of up to 90(cid:4) of the contract price based on quantifiable measures of
Performance-based payments represent interim payments of up to 90(cid:4) of the contract price based on quantifiable measures of
Performance-based payments represent interim payments of up to 90(cid:4) of the contract price based on quantifiable measures of
Performance-based payments represent interim payments of up to 90(cid:4) of the contract price based on quantifiable measures of
performance or on the achievement of specified events or milestones. Progress payments are interim payments of up to (cid:23)0(cid:4) of
Performance-based payments represent interim payments of up to 90(cid:4) of the contract price based on quantifiable measures of
Performance-based payments represent interim payments of up to 90(cid:4) of the contract price based on quantifiable measures of
performance or on the achievement of specified events or milestones. Progress payments are interim payments of up to (cid:23)0(cid:4) of
performance or on the achievement of specified events or milestones. Progress payments are interim payments of up to (cid:23)0(cid:4) of
performance or on the achievement of specified events or milestones. Progress payments are interim payments of up to (cid:23)0(cid:4) of
performance or on the achievement of specified events or milestones. Progress payments are interim payments of up to (cid:23)0(cid:4) of
performance or on the achievement of specified events or milestones. Progress payments are interim payments of up to (cid:23)0(cid:4) of
costs incurred as the work progresses. Because the customer retains a small portion of the contract price until completion of the
performance or on the achievement of specified events or milestones. Progress payments are interim payments of up to (cid:23)0(cid:4) of
costs incurred as the work progresses. Because the customer retains a small portion of the contract price until completion of the
performance or on the achievement of specified events or milestones. Progress payments are interim payments of up to (cid:23)0(cid:4) of
costs incurred as the work progresses. Because the customer retains a small portion of the contract price until completion of the
costs incurred as the work progresses. Because the customer retains a small portion of the contract price until completion of the
costs incurred as the work progresses. Because the customer retains a small portion of the contract price until completion of the
costs incurred as the work progresses. Because the customer retains a small portion of the contract price until completion of the
contract, these contracts generally result in revenue recogni(cid:81)ed in excess of billings, which we present as contract assets in the
costs incurred as the work progresses. Because the customer retains a small portion of the contract price until completion of the
contract, these contracts generally result in revenue recogni(cid:81)ed in excess of billings, which we present as contract assets in the
costs incurred as the work progresses. Because the customer retains a small portion of the contract price until completion of the
contract, these contracts generally result in revenue recogni(cid:81)ed in excess of billings, which we present as contract assets in the
contract, these contracts generally result in revenue recogni(cid:81)ed in excess of billings, which we present as contract assets in the
contract, these contracts generally result in revenue recogni(cid:81)ed in excess of billings, which we present as contract assets in the
contract, these contracts generally result in revenue recogni(cid:81)ed in excess of billings, which we present as contract assets in the
Consolidated Balance Sheets. Amounts billed and due from our customers are classified in Accounts receivable, net. The portion
contract, these contracts generally result in revenue recogni(cid:81)ed in excess of billings, which we present as contract assets in the
contract, these contracts generally result in revenue recogni(cid:81)ed in excess of billings, which we present as contract assets in the
Consolidated Balance Sheets. Amounts billed and due from our customers are classified in Accounts receivable, net. The portion
Consolidated Balance Sheets. Amounts billed and due from our customers are classified in Accounts receivable, net. The portion
Consolidated Balance Sheets. Amounts billed and due from our customers are classified in Accounts receivable, net. The portion
Consolidated Balance Sheets. Amounts billed and due from our customers are classified in Accounts receivable, net. The portion
Consolidated Balance Sheets. Amounts billed and due from our customers are classified in Accounts receivable, net. The portion
of the payments retained by the customer until final contract settlement is not considered a significant financing component
Consolidated Balance Sheets. Amounts billed and due from our customers are classified in Accounts receivable, net. The portion
Consolidated Balance Sheets. Amounts billed and due from our customers are classified in Accounts receivable, net. The portion
of the payments retained by the customer until final contract settlement is not considered a significant financing component
of the payments retained by the customer until final contract settlement is not considered a significant financing component
of the payments retained by the customer until final contract settlement is not considered a significant financing component
of the payments retained by the customer until final contract settlement is not considered a significant financing component
of the payments retained by the customer until final contract settlement is not considered a significant financing component
because the intent is to protect the customer. For cost-type contracts, we are generally paid for our actual costs incurred within a
of the payments retained by the customer until final contract settlement is not considered a significant financing component
of the payments retained by the customer until final contract settlement is not considered a significant financing component
because the intent is to protect the customer. For cost-type contracts, we are generally paid for our actual costs incurred within a
because the intent is to protect the customer. For cost-type contracts, we are generally paid for our actual costs incurred within a
because the intent is to protect the customer. For cost-type contracts, we are generally paid for our actual costs incurred within a
because the intent is to protect the customer. For cost-type contracts, we are generally paid for our actual costs incurred within a
because the intent is to protect the customer. For cost-type contracts, we are generally paid for our actual costs incurred within a
short period of time.
because the intent is to protect the customer. For cost-type contracts, we are generally paid for our actual costs incurred within a
short period of time.
because the intent is to protect the customer. For cost-type contracts, we are generally paid for our actual costs incurred within a
short period of time.
short period of time.
short period of time.
short period of time.
short period of time.
short period of time.
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
Finance revenues primarily include interest on finance receivables, finance lease earnings and portfolio gains/losses. Portfolio
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
Finance revenues primarily include interest on finance receivables, finance lease earnings and portfolio gains/losses. Portfolio
Finance revenues primarily include interest on finance receivables, finance lease earnings and portfolio gains/losses. Portfolio
Finance revenues primarily include interest on finance receivables, finance lease earnings and portfolio gains/losses. Portfolio
Finance revenues primarily include interest on finance receivables, finance lease earnings and portfolio gains/losses. Portfolio
Finance revenues primarily include interest on finance receivables, finance lease earnings and portfolio gains/losses. Portfolio
gains/losses include impairment charges related to repossessed assets and properties and gains/losses on the sale or early
Finance revenues primarily include interest on finance receivables, finance lease earnings and portfolio gains/losses. Portfolio
gains/losses include impairment charges related to repossessed assets and properties and gains/losses on the sale or early
Finance revenues primarily include interest on finance receivables, finance lease earnings and portfolio gains/losses. Portfolio
gains/losses include impairment charges related to repossessed assets and properties and gains/losses on the sale or early
gains/losses include impairment charges related to repossessed assets and properties and gains/losses on the sale or early
gains/losses include impairment charges related to repossessed assets and properties and gains/losses on the sale or early
gains/losses include impairment charges related to repossessed assets and properties and gains/losses on the sale or early
termination of finance assets. (cid:49)e recogni(cid:81)e interest using the interest method, which provides a constant rate of return over the
gains/losses include impairment charges related to repossessed assets and properties and gains/losses on the sale or early
gains/losses include impairment charges related to repossessed assets and properties and gains/losses on the sale or early
termination of finance assets. (cid:49)e recogni(cid:81)e interest using the interest method, which provides a constant rate of return over the
termination of finance assets. (cid:49)e recogni(cid:81)e interest using the interest method, which provides a constant rate of return over the
termination of finance assets. (cid:49)e recogni(cid:81)e interest using the interest method, which provides a constant rate of return over the
termination of finance assets. (cid:49)e recogni(cid:81)e interest using the interest method, which provides a constant rate of return over the
termination of finance assets. (cid:49)e recogni(cid:81)e interest using the interest method, which provides a constant rate of return over the
terms of the receivables. Accrual of interest income is suspended if credit quality indicators suggest full collection of principal
termination of finance assets. (cid:49)e recogni(cid:81)e interest using the interest method, which provides a constant rate of return over the
termination of finance assets. (cid:49)e recogni(cid:81)e interest using the interest method, which provides a constant rate of return over the
terms of the receivables. Accrual of interest income is suspended if credit quality indicators suggest full collection of principal
terms of the receivables. Accrual of interest income is suspended if credit quality indicators suggest full collection of principal
terms of the receivables. Accrual of interest income is suspended if credit quality indicators suggest full collection of principal
terms of the receivables. Accrual of interest income is suspended if credit quality indicators suggest full collection of principal
terms of the receivables. Accrual of interest income is suspended if credit quality indicators suggest full collection of principal
and interest is doubtful. In addition, we automatically suspend the accrual of interest income for accounts that are contractually
terms of the receivables. Accrual of interest income is suspended if credit quality indicators suggest full collection of principal
terms of the receivables. Accrual of interest income is suspended if credit quality indicators suggest full collection of principal
and interest is doubtful. In addition, we automatically suspend the accrual of interest income for accounts that are contractually
and interest is doubtful. In addition, we automatically suspend the accrual of interest income for accounts that are contractually
and interest is doubtful. In addition, we automatically suspend the accrual of interest income for accounts that are contractually
and interest is doubtful. In addition, we automatically suspend the accrual of interest income for accounts that are contractually
and interest is doubtful. In addition, we automatically suspend the accrual of interest income for accounts that are contractually
delinquent by more than three months unless collection is not doubtful. Cash payments on nonaccrual accounts, including finance
and interest is doubtful. In addition, we automatically suspend the accrual of interest income for accounts that are contractually
delinquent by more than three months unless collection is not doubtful. Cash payments on nonaccrual accounts, including finance
and interest is doubtful. In addition, we automatically suspend the accrual of interest income for accounts that are contractually
delinquent by more than three months unless collection is not doubtful. Cash payments on nonaccrual accounts, including finance
delinquent by more than three months unless collection is not doubtful. Cash payments on nonaccrual accounts, including finance
delinquent by more than three months unless collection is not doubtful. Cash payments on nonaccrual accounts, including finance
delinquent by more than three months unless collection is not doubtful. Cash payments on nonaccrual accounts, including finance
charges, generally are applied to reduce the net investment balance. Once we conclude that the collection of all principal and
delinquent by more than three months unless collection is not doubtful. Cash payments on nonaccrual accounts, including finance
delinquent by more than three months unless collection is not doubtful. Cash payments on nonaccrual accounts, including finance
charges, generally are applied to reduce the net investment balance. Once we conclude that the collection of all principal and
charges, generally are applied to reduce the net investment balance. Once we conclude that the collection of all principal and
charges, generally are applied to reduce the net investment balance. Once we conclude that the collection of all principal and
charges, generally are applied to reduce the net investment balance. Once we conclude that the collection of all principal and
charges, generally are applied to reduce the net investment balance. Once we conclude that the collection of all principal and
interest is no longer doubtful, we resume the accrual of interest and recogni(cid:81)e previously suspended interest income at the time
charges, generally are applied to reduce the net investment balance. Once we conclude that the collection of all principal and
charges, generally are applied to reduce the net investment balance. Once we conclude that the collection of all principal and
interest is no longer doubtful, we resume the accrual of interest and recogni(cid:81)e previously suspended interest income at the time
interest is no longer doubtful, we resume the accrual of interest and recogni(cid:81)e previously suspended interest income at the time
interest is no longer doubtful, we resume the accrual of interest and recogni(cid:81)e previously suspended interest income at the time
interest is no longer doubtful, we resume the accrual of interest and recogni(cid:81)e previously suspended interest income at the time
interest is no longer doubtful, we resume the accrual of interest and recogni(cid:81)e previously suspended interest income at the time
either a) the loan becomes contractually current through payment according to the original terms of the loan, or b) if the loan has
interest is no longer doubtful, we resume the accrual of interest and recogni(cid:81)e previously suspended interest income at the time
interest is no longer doubtful, we resume the accrual of interest and recogni(cid:81)e previously suspended interest income at the time
either a) the loan becomes contractually current through payment according to the original terms of the loan, or b) if the loan has
either a) the loan becomes contractually current through payment according to the original terms of the loan, or b) if the loan has
either a) the loan becomes contractually current through payment according to the original terms of the loan, or b) if the loan has
either a) the loan becomes contractually current through payment according to the original terms of the loan, or b) if the loan has
either a) the loan becomes contractually current through payment according to the original terms of the loan, or b) if the loan has
been modified, following a period of performance under the terms of the modification.
either a) the loan becomes contractually current through payment according to the original terms of the loan, or b) if the loan has
been modified, following a period of performance under the terms of the modification.
either a) the loan becomes contractually current through payment according to the original terms of the loan, or b) if the loan has
been modified, following a period of performance under the terms of the modification.
been modified, following a period of performance under the terms of the modification.
been modified, following a period of performance under the terms of the modification.
been modified, following a period of performance under the terms of the modification.
been modified, following a period of performance under the terms of the modification.
been modified, following a period of performance under the terms of the modification.
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:24)(cid:65)timate(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:24)(cid:65)timate(cid:65)
For contracts where revenue is recogni(cid:81)ed over time, we recogni(cid:81)e changes in estimated contract revenues, costs and profits using
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:24)(cid:65)timate(cid:65)
For contracts where revenue is recogni(cid:81)ed over time, we recogni(cid:81)e changes in estimated contract revenues, costs and profits using
For contracts where revenue is recogni(cid:81)ed over time, we recogni(cid:81)e changes in estimated contract revenues, costs and profits using
For contracts where revenue is recogni(cid:81)ed over time, we recogni(cid:81)e changes in estimated contract revenues, costs and profits using
For contracts where revenue is recogni(cid:81)ed over time, we recogni(cid:81)e changes in estimated contract revenues, costs and profits using
For contracts where revenue is recogni(cid:81)ed over time, we recogni(cid:81)e changes in estimated contract revenues, costs and profits using
the cumulative catch-up method of accounting. This method recogni(cid:81)es the cumulative effect of changes on current and prior
For contracts where revenue is recogni(cid:81)ed over time, we recogni(cid:81)e changes in estimated contract revenues, costs and profits using
For contracts where revenue is recogni(cid:81)ed over time, we recogni(cid:81)e changes in estimated contract revenues, costs and profits using
the cumulative catch-up method of accounting. This method recogni(cid:81)es the cumulative effect of changes on current and prior
the cumulative catch-up method of accounting. This method recogni(cid:81)es the cumulative effect of changes on current and prior
the cumulative catch-up method of accounting. This method recogni(cid:81)es the cumulative effect of changes on current and prior
the cumulative catch-up method of accounting. This method recogni(cid:81)es the cumulative effect of changes on current and prior
the cumulative catch-up method of accounting. This method recogni(cid:81)es 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
the cumulative catch-up method of accounting. This method recogni(cid:81)es 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
the cumulative catch-up method of accounting. This method recogni(cid:81)es 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
periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are
periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are
periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are
recogni(cid:81)ed in full in the period in which the losses become probable and estimable.
periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are
periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are
recogni(cid:81)ed in full in the period in which the losses become probable and estimable.
recogni(cid:81)ed in full in the period in which the losses become probable and estimable.
recogni(cid:81)ed in full in the period in which the losses become probable and estimable.
recogni(cid:81)ed in full in the period in which the losses become probable and estimable.
recogni(cid:81)ed in full in the period in which the losses become probable and estimable.
recogni(cid:81)ed in full in the period in which the losses become probable and estimable.
recogni(cid:81)ed in full in the period in which the losses become probable and estimable.
In 2023, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)44 million and net income by (cid:3)34 million, ((cid:3)0.17 per
In 2023, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)44 million and net income by (cid:3)34 million, ((cid:3)0.17 per
In 2023, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)44 million and net income by (cid:3)34 million, ((cid:3)0.17 per
In 2023, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)44 million and net income by (cid:3)34 million, ((cid:3)0.17 per
In 2023, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)44 million and net income by (cid:3)34 million, ((cid:3)0.17 per
In 2023, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)44 million and net income by (cid:3)34 million, ((cid:3)0.17 per
diluted share). In 2022, our cumulative catch-up ad(cid:65)ustments decreased segment profit by (cid:3)1(cid:21) million and net income by (cid:3)12
In 2023, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)44 million and net income by (cid:3)34 million, ((cid:3)0.17 per
In 2023, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)44 million and net income by (cid:3)34 million, ((cid:3)0.17 per
diluted share). In 2022, our cumulative catch-up ad(cid:65)ustments decreased segment profit by (cid:3)1(cid:21) million and net income by (cid:3)12
diluted share). In 2022, our cumulative catch-up ad(cid:65)ustments decreased segment profit by (cid:3)1(cid:21) million and net income by (cid:3)12
diluted share). In 2022, our cumulative catch-up ad(cid:65)ustments decreased segment profit by (cid:3)1(cid:21) million and net income by (cid:3)12
diluted share). In 2022, our cumulative catch-up ad(cid:65)ustments decreased segment profit by (cid:3)1(cid:21) million and net income by (cid:3)12
diluted share). In 2022, our cumulative catch-up ad(cid:65)ustments decreased segment profit by (cid:3)1(cid:21) million and net income by (cid:3)12
million ((cid:3)0.0(cid:21) per diluted share). In 2021, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)(cid:23)1 million and net
diluted share). In 2022, our cumulative catch-up ad(cid:65)ustments decreased segment profit by (cid:3)1(cid:21) million and net income by (cid:3)12
diluted share). In 2022, our cumulative catch-up ad(cid:65)ustments decreased segment profit by (cid:3)1(cid:21) million and net income by (cid:3)12
million ((cid:3)0.0(cid:21) per diluted share). In 2021, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)(cid:23)1 million and net
million ((cid:3)0.0(cid:21) per diluted share). In 2021, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)(cid:23)1 million and net
million ((cid:3)0.0(cid:21) per diluted share). In 2021, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)(cid:23)1 million and net
million ((cid:3)0.0(cid:21) per diluted share). In 2021, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)(cid:23)1 million and net
million ((cid:3)0.0(cid:21) per diluted share). In 2021, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)(cid:23)1 million and net
income by (cid:3)(cid:21)2 million ((cid:3)0.27 per diluted share). Revenue was increased by (cid:3)42 million in 2023, reduced by (cid:3)2(cid:20) million in 2022
million ((cid:3)0.0(cid:21) per diluted share). In 2021, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)(cid:23)1 million and net
million ((cid:3)0.0(cid:21) per diluted share). In 2021, our cumulative catch-up ad(cid:65)ustments increased segment profit by (cid:3)(cid:23)1 million and net
income by (cid:3)(cid:21)2 million ((cid:3)0.27 per diluted share). Revenue was increased by (cid:3)42 million in 2023, reduced by (cid:3)2(cid:20) million in 2022
income by (cid:3)(cid:21)2 million ((cid:3)0.27 per diluted share). Revenue was increased by (cid:3)42 million in 2023, reduced by (cid:3)2(cid:20) million in 2022
income by (cid:3)(cid:21)2 million ((cid:3)0.27 per diluted share). Revenue was increased by (cid:3)42 million in 2023, reduced by (cid:3)2(cid:20) million in 2022
income by (cid:3)(cid:21)2 million ((cid:3)0.27 per diluted share). Revenue was increased by (cid:3)42 million in 2023, reduced by (cid:3)2(cid:20) million in 2022
income by (cid:3)(cid:21)2 million ((cid:3)0.27 per diluted share). Revenue was increased by (cid:3)42 million in 2023, reduced by (cid:3)2(cid:20) million in 2022
and increased by (cid:3)93 million in 2021, related to changes in profit booking rates for performance obligations satisfied in prior
income by (cid:3)(cid:21)2 million ((cid:3)0.27 per diluted share). Revenue was increased by (cid:3)42 million in 2023, reduced by (cid:3)2(cid:20) million in 2022
income by (cid:3)(cid:21)2 million ((cid:3)0.27 per diluted share). Revenue was increased by (cid:3)42 million in 2023, reduced by (cid:3)2(cid:20) million in 2022
and increased by (cid:3)93 million in 2021, related to changes in profit booking rates for performance obligations satisfied in prior
and increased by (cid:3)93 million in 2021, related to changes in profit booking rates for performance obligations satisfied in prior
and increased by (cid:3)93 million in 2021, related to changes in profit booking rates for performance obligations satisfied in prior
and increased by (cid:3)93 million in 2021, related to changes in profit booking rates for performance obligations satisfied in prior
and increased by (cid:3)93 million in 2021, related to changes in profit booking rates for performance obligations satisfied in prior
periods.
and increased by (cid:3)93 million in 2021, related to changes in profit booking rates for performance obligations satisfied in prior
periods.
and increased by (cid:3)93 million in 2021, related to changes in profit booking rates for performance obligations satisfied in prior
periods.
periods.
periods.
periods.
periods.
periods.
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
Contract assets arise from contracts when revenue is recogni(cid:81)ed over time and the amount of revenue recogni(cid:81)ed exceeds the
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
Contract assets arise from contracts when revenue is recogni(cid:81)ed over time and the amount of revenue recogni(cid:81)ed exceeds the
Contract assets arise from contracts when revenue is recogni(cid:81)ed over time and the amount of revenue recogni(cid:81)ed exceeds the
Contract assets arise from contracts when revenue is recogni(cid:81)ed over time and the amount of revenue recogni(cid:81)ed exceeds the
Contract assets arise from contracts when revenue is recogni(cid:81)ed over time and the amount of revenue recogni(cid:81)ed exceeds the
Contract assets arise from contracts when revenue is recogni(cid:81)ed over time and the amount of revenue recogni(cid:81)ed exceeds the
amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on
Contract assets arise from contracts when revenue is recogni(cid:81)ed over time and the amount of revenue recogni(cid:81)ed exceeds the
amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on
Contract assets arise from contracts when revenue is recogni(cid:81)ed over time and the amount of revenue recogni(cid:81)ed exceeds the
amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on
amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on
amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on
amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on
events other than the passage of time and are included in Other current assets in the Consolidated Balance Sheets. Contract
amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on
events other than the passage of time and are included in Other current assets in the Consolidated Balance Sheets. Contract
amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on
events other than the passage of time and are included in Other current assets in the Consolidated Balance Sheets. Contract
events other than the passage of time and are included in Other current assets in the Consolidated Balance Sheets. Contract
events other than the passage of time and are included in Other current assets in the Consolidated Balance Sheets. Contract
events other than the passage of time and are included in Other current assets in the Consolidated Balance Sheets. Contract
liabilities, which are primarily included in Other current liabilities, include deposits, largely from our commercial aviation
events other than the passage of time and are included in Other current assets in the Consolidated Balance Sheets. Contract
events other than the passage of time and are included in Other current assets in the Consolidated Balance Sheets. Contract
liabilities, which are primarily included in Other current liabilities, include deposits, largely from our commercial aviation
liabilities, which are primarily included in Other current liabilities, include deposits, largely from our commercial aviation
liabilities, which are primarily included in Other current liabilities, include deposits, largely from our commercial aviation
liabilities, which are primarily included in Other current liabilities, include deposits, largely from our commercial aviation
liabilities, which are primarily included in Other current liabilities, include deposits, largely from our commercial aviation
customers, and billings in excess of revenue recogni(cid:81)ed.
liabilities, which are primarily included in Other current liabilities, include deposits, largely from our commercial aviation
customers, and billings in excess of revenue recogni(cid:81)ed.
liabilities, which are primarily included in Other current liabilities, include deposits, largely from our commercial aviation
customers, and billings in excess of revenue recogni(cid:81)ed.
customers, and billings in excess of revenue recogni(cid:81)ed.
customers, and billings in excess of revenue recogni(cid:81)ed.
customers, and billings in excess of revenue recogni(cid:81)ed.
customers, and billings in excess of revenue recogni(cid:81)ed.
customers, and billings in excess of revenue recogni(cid:81)ed.
The incremental costs of obtaining a contract with a customer that is expected to be recovered is expensed as incurred when the
The incremental costs of obtaining a contract with a customer that is expected to be recovered is expensed as incurred when the
The incremental costs of obtaining a contract with a customer that is expected to be recovered is expensed as incurred when the
The incremental costs of obtaining a contract with a customer that is expected to be recovered is expensed as incurred when the
The incremental costs of obtaining a contract with a customer that is expected to be recovered is expensed as incurred when the
The incremental costs of obtaining a contract with a customer that is expected to be recovered is expensed as incurred when the
period to be benefitted is one year or less.
The incremental costs of obtaining a contract with a customer that is expected to be recovered is expensed as incurred when the
The incremental costs of obtaining a contract with a customer that is expected to be recovered is expensed as incurred when the
period to be benefitted is one year or less.
period to be benefitted is one year or less.
period to be benefitted is one year or less.
period to be benefitted is one year or less.
period to be benefitted is one year or less.
period to be benefitted is one year or less.
period to be benefitted is one year or less.
42 Textron 2023 Annual Report
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42
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42
(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)t(cid:65)(cid:1)(cid:37)e(cid:49)ei(cid:68)a(cid:48)le(cid:6)(cid:1)Net
Accounts receivable, net includes amounts billed to customers where the right to payment is unconditional. (cid:49)e maintain an
allowance for credit losses for our commercial accounts receivable to provide for the estimated amount that will not be collected,
even when the risk of loss is remote. The allowance is measured on a collective pool basis when similar risk characteristics exist
and is established as a percentage of accounts receivable. (cid:49)e have identified pools with similar risk characteristics, based on
customer and industry type and geographic location. The percentage is based on all available and relevant information including
age of outstanding receivables and collateral value, if any, historical payment experience and loss history, current economic
conditions, and, when reasonable and supportable factors exist, management(cid:88)s expectation of future economic conditions. For
amounts due from the (cid:47).S. Government, we have not established an allowance for credit losses as we have (cid:81)ero loss expectation
based on a long history of no credit losses and the explicit guarantee of a sovereign entity.
(cid:22)a(cid:65)(cid:54)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:24)(cid:63)(cid:67)i(cid:68)ale(cid:60)t(cid:65)
Cash and equivalents consist of cash and short-term, highly liquid investments with original maturities of three months or less.
(cid:28)(cid:60)(cid:68)e(cid:60)t(cid:61)(cid:64)ie(cid:65)
Inventories are stated at the lower of cost or estimated reali(cid:81)able value. The ma(cid:65)ority of our inventories are valued using the last-
in, first-out (LIFO) method, while the remaining inventories are generally valued using the first-in, first-out (FIFO) method.
(cid:35)(cid:64)(cid:61)(cid:62)e(cid:64)t(cid:71)(cid:6)(cid:1)(cid:35)la(cid:60)t(cid:1)a(cid:60)(cid:50)(cid:1)(cid:24)(cid:63)(cid:67)i(cid:62)me(cid:60)t
Property, plant and equipment are recorded at cost and are depreciated primarily using the straight-line method. (cid:49)e capitali(cid:81)e
expenditures for improvements that increase asset values and extend useful lives. Property, plant and equipment are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If
the carrying value of the asset exceeds the sum of the undiscounted expected future cash flows, the asset is written down to fair
value.
(cid:26)(cid:61)(cid:61)(cid:50)(cid:69)ill(cid:1)a(cid:60)(cid:50)(cid:1)(cid:28)(cid:60)ta(cid:60)(cid:53)i(cid:48)le(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)
Goodwill represents the excess of the consideration paid for the acquisition of a business over the fair values assigned to
intangible and other net assets of the acquired business. Goodwill and intangible assets deemed to have indefinite lives are not
amorti(cid:81)ed but are sub(cid:65)ect to an annual impairment test. (cid:49)e evaluate the recoverability of these assets in the fourth quarter of each
year or more frequently if events or changes in circumstances, such as declines in sales, earnings or cash flows, or material
adverse changes in the business climate, indicate a potential impairment.
For our goodwill impairment test, we calculate the fair value of each reporting unit using discounted cash flows. A reporting unit
represents the operating segment unless discrete financial information is prepared and reviewed by segment management for
businesses one level below that operating segment, in which case such component is the reporting unit. In certain instances, we
have aggregated components of an operating segment into a single reporting unit based on similar economic characteristics. The
discounted cash flows incorporate assumptions for revenue growth rates, operating margins and discount rates that represent our
best estimates of current and forecasted market conditions, cost structure, anticipated net cost reductions, and the implied rate of
return that we believe a market participant would require for an investment in a business having similar risks and characteristics to
the reporting unit being assessed. The fair value of our indefinite-lived intangible assets is primarily determined using the relief of
royalty method based on forecasted revenues and royalty rates. If the estimated fair value of the reporting unit or indefinite-lived
intangible asset exceeds the carrying value, there is no impairment. Otherwise, an impairment loss is recogni(cid:81)ed for the amount
by which the carrying value exceeds the estimated fair value.
Acquired intangible assets with finite lives are sub(cid:65)ect to amorti(cid:81)ation. These assets are reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Amorti(cid:81)ation of these
intangible assets is recogni(cid:81)ed over their estimated useful lives using a method that reflects the pattern in which the economic
benefits of the intangible assets are consumed or otherwise reali(cid:81)ed. Approximately (cid:23)2(cid:4) of our gross intangible assets are
amorti(cid:81)ed based on the cash flow streams used to value the assets, with the remaining assets amorti(cid:81)ed using the straight-line
method.
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:37)e(cid:49)ei(cid:68)a(cid:48)le(cid:65)
Finance receivables primarily include loans provided to purchasers of new and pre-owned Textron Aviation aircraft and Bell
helicopters. Finance receivables are generally recorded at the amount of outstanding principal less allowance for credit losses.
(cid:49)e establish an allowance for credit losses to cover probable but specifically unknown losses existing in the portfolio. This
allowance is established as a percentage of finance receivables categori(cid:81)ed by pools with similar risk characteristics, such as
collateral or customer type and geographic location. The percentage is based on a combination of factors, including historical loss
experience, current delinquency and default trends, collateral values, current economic conditions, and, when reasonable and
supportable factors exist, management(cid:88)s expectation of future economic conditions.
Textron 2023 Annual Report 43
43
For those finance receivables that do not have similar risk characteristics, including larger balance accounts specifically identified
For those finance receivables that do not have similar risk characteristics, including larger balance accounts specifically identified
For those finance receivables that do not have similar risk characteristics, including larger balance accounts specifically identified
For those finance receivables that do not have similar risk characteristics, including larger balance accounts specifically identified
For those finance receivables that do not have similar risk characteristics, including larger balance accounts specifically identified
For those finance receivables that do not have similar risk characteristics, including larger balance accounts specifically identified
as impaired, a reserve is established based on comparing the expected future cash flows, discounted at the finance receivable(cid:6)s
For those finance receivables that do not have similar risk characteristics, including larger balance accounts specifically identified
For those finance receivables that do not have similar risk characteristics, including larger balance accounts specifically identified
as impaired, a reserve is established based on comparing the expected future cash flows, discounted at the finance receivable(cid:6)s
as impaired, a reserve is established based on comparing the expected future cash flows, discounted at the finance receivable(cid:6)s
as impaired, a reserve is established based on comparing the expected future cash flows, discounted at the finance receivable(cid:6)s
as impaired, a reserve is established based on comparing the expected future cash flows, discounted at the finance receivable(cid:6)s
as impaired, a reserve is established based on comparing the expected future cash flows, discounted at the finance receivable(cid:6)s
effective interest rate, or the fair value of the underlying collateral if the finance receivable is collateral dependent, to its carrying
as impaired, a reserve is established based on comparing the expected future cash flows, discounted at the finance receivable(cid:6)s
effective interest rate, or the fair value of the underlying collateral if the finance receivable is collateral dependent, to its carrying
as impaired, a reserve is established based on comparing the expected future cash flows, discounted at the finance receivable(cid:6)s
effective interest rate, or the fair value of the underlying collateral if the finance receivable is collateral dependent, to its carrying
effective interest rate, or the fair value of the underlying collateral if the finance receivable is collateral dependent, to its carrying
effective interest rate, or the fair value of the underlying collateral if the finance receivable is collateral dependent, to its carrying
effective interest rate, or the fair value of the underlying collateral if the finance receivable is collateral dependent, to its carrying
amount. The expected future cash flows consider collateral value(cid:26) financial performance and liquidity of our borrower(cid:26) existence
effective interest rate, or the fair value of the underlying collateral if the finance receivable is collateral dependent, to its carrying
amount. The expected future cash flows consider collateral value(cid:26) financial performance and liquidity of our borrower(cid:26) existence
effective interest rate, or the fair value of the underlying collateral if the finance receivable is collateral dependent, to its carrying
amount. The expected future cash flows consider collateral value(cid:26) financial performance and liquidity of our borrower(cid:26) existence
amount. The expected future cash flows consider collateral value(cid:26) financial performance and liquidity of our borrower(cid:26) existence
amount. The expected future cash flows consider collateral value(cid:26) financial performance and liquidity of our borrower(cid:26) existence
amount. The expected future cash flows consider collateral value(cid:26) financial performance and liquidity of our borrower(cid:26) existence
and financial strength of guarantors(cid:26) estimated recovery costs, including legal expenses(cid:26) and costs associated with the
amount. The expected future cash flows consider collateral value(cid:26) financial performance and liquidity of our borrower(cid:26) existence
amount. The expected future cash flows consider collateral value(cid:26) financial performance and liquidity of our borrower(cid:26) existence
and financial strength of guarantors(cid:26) estimated recovery costs, including legal expenses(cid:26) and costs associated with the
and financial strength of guarantors(cid:26) estimated recovery costs, including legal expenses(cid:26) and costs associated with the
and financial strength of guarantors(cid:26) estimated recovery costs, including legal expenses(cid:26) and costs associated with the
and financial strength of guarantors(cid:26) estimated recovery costs, including legal expenses(cid:26) and costs associated with the
and financial strength of guarantors(cid:26) estimated recovery costs, including legal expenses(cid:26) and costs associated with the
repossession and eventual disposal of collateral. (cid:49)hen there is a range of potential outcomes, we perform multiple discounted
and financial strength of guarantors(cid:26) estimated recovery costs, including legal expenses(cid:26) and costs associated with the
and financial strength of guarantors(cid:26) estimated recovery costs, including legal expenses(cid:26) and costs associated with the
repossession and eventual disposal of collateral. (cid:49)hen there is a range of potential outcomes, we perform multiple discounted
repossession and eventual disposal of collateral. (cid:49)hen there is a range of potential outcomes, we perform multiple discounted
repossession and eventual disposal of collateral. (cid:49)hen there is a range of potential outcomes, we perform multiple discounted
repossession and eventual disposal of collateral. (cid:49)hen there is a range of potential outcomes, we perform multiple discounted
repossession and eventual disposal of collateral. (cid:49)hen there is a range of potential outcomes, we perform multiple discounted
cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence. The evaluation of our
repossession and eventual disposal of collateral. (cid:49)hen there is a range of potential outcomes, we perform multiple discounted
repossession and eventual disposal of collateral. (cid:49)hen there is a range of potential outcomes, we perform multiple discounted
cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence. The evaluation of our
cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence. The evaluation of our
cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence. The evaluation of our
cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence. The evaluation of our
cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence. The evaluation of our
portfolio is inherently sub(cid:65)ective, as it requires estimates, including the amount and timing of future cash flows expected to be
cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence. The evaluation of our
portfolio is inherently sub(cid:65)ective, as it requires estimates, including the amount and timing of future cash flows expected to be
cash flow analyses and weight the potential outcomes based on their relative likelihood of occurrence. The evaluation of our
portfolio is inherently sub(cid:65)ective, as it requires estimates, including the amount and timing of future cash flows expected to be
portfolio is inherently sub(cid:65)ective, as it requires estimates, including the amount and timing of future cash flows expected to be
portfolio is inherently sub(cid:65)ective, as it requires estimates, including the amount and timing of future cash flows expected to be
portfolio is inherently sub(cid:65)ective, as it requires estimates, including the amount and timing of future cash flows expected to be
received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual
portfolio is inherently sub(cid:65)ective, as it requires estimates, including the amount and timing of future cash flows expected to be
portfolio is inherently sub(cid:65)ective, as it requires estimates, including the amount and timing of future cash flows expected to be
received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual
received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual
received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual
received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual
received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual
results. (cid:49)hile our analysis is specific to each individual account, critical factors included in this analysis include industry
received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual
received on impaired finance receivables and the estimated fair value of the underlying collateral, which may differ from actual
results. (cid:49)hile our analysis is specific to each individual account, critical factors included in this analysis include industry
results. (cid:49)hile our analysis is specific to each individual account, critical factors included in this analysis include industry
results. (cid:49)hile our analysis is specific to each individual account, critical factors included in this analysis include industry
results. (cid:49)hile our analysis is specific to each individual account, critical factors included in this analysis include industry
results. (cid:49)hile our analysis is specific to each individual account, critical factors included in this analysis include industry
valuation guides, age and physical condition of the collateral, payment history, and existence and financial strength of guarantors.
results. (cid:49)hile our analysis is specific to each individual account, critical factors included in this analysis include industry
valuation guides, age and physical condition of the collateral, payment history, and existence and financial strength of guarantors.
results. (cid:49)hile our analysis is specific to each individual account, critical factors included in this analysis include industry
valuation guides, age and physical condition of the collateral, payment history, and existence and financial strength of guarantors.
valuation guides, age and physical condition of the collateral, payment history, and existence and financial strength of guarantors.
valuation guides, age and physical condition of the collateral, payment history, and existence and financial strength of guarantors.
valuation guides, age and physical condition of the collateral, payment history, and existence and financial strength of guarantors.
valuation guides, age and physical condition of the collateral, payment history, and existence and financial strength of guarantors.
valuation guides, age and physical condition of the collateral, payment history, and existence and financial strength of guarantors.
Finance receivables are charged off at the earlier of the date the collateral is repossessed or when management no longer deems
Finance receivables are charged off at the earlier of the date the collateral is repossessed or when management no longer deems
Finance receivables are charged off at the earlier of the date the collateral is repossessed or when management no longer deems
Finance receivables are charged off at the earlier of the date the collateral is repossessed or when management no longer deems
Finance receivables are charged off at the earlier of the date the collateral is repossessed or when management no longer deems
Finance receivables are charged off at the earlier of the date the collateral is repossessed or when management no longer deems
the receivable collectible. Repossessed assets are recorded at their fair value, less estimated cost to sell.
Finance receivables are charged off at the earlier of the date the collateral is repossessed or when management no longer deems
Finance receivables are charged off at the earlier of the date the collateral is repossessed or when management no longer deems
the receivable collectible. Repossessed assets are recorded at their fair value, less estimated cost to sell.
the receivable collectible. Repossessed assets are recorded at their fair value, less estimated cost to sell.
the receivable collectible. Repossessed assets are recorded at their fair value, less estimated cost to sell.
the receivable collectible. Repossessed assets are recorded at their fair value, less estimated cost to sell.
the receivable collectible. Repossessed assets are recorded at their fair value, less estimated cost to sell.
the receivable collectible. Repossessed assets are recorded at their fair value, less estimated cost to sell.
the receivable collectible. Repossessed assets are recorded at their fair value, less estimated cost to sell.
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:1)(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:1)(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:1)(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:1)(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:1)(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:1)(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:1)(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)
(cid:49)e maintain various pension and postretirement plans for our employees globally. Our pension plans include significant benefit
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:1)(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)
(cid:49)e maintain various pension and postretirement plans for our employees globally. Our pension plans include significant benefit
(cid:49)e maintain various pension and postretirement plans for our employees globally. Our pension plans include significant benefit
(cid:49)e maintain various pension and postretirement plans for our employees globally. Our pension plans include significant benefit
(cid:49)e maintain various pension and postretirement plans for our employees globally. Our pension plans include significant benefit
(cid:49)e maintain various pension and postretirement plans for our employees globally. Our pension plans include significant benefit
obligations, which are calculated based on actuarial valuations. Key assumptions used in determining these obligations and related
(cid:49)e maintain various pension and postretirement plans for our employees globally. Our pension plans include significant benefit
obligations, which are calculated based on actuarial valuations. Key assumptions used in determining these obligations and related
(cid:49)e maintain various pension and postretirement plans for our employees globally. Our pension plans include significant benefit
obligations, which are calculated based on actuarial valuations. Key assumptions used in determining these obligations and related
obligations, which are calculated based on actuarial valuations. Key assumptions used in determining these obligations and related
obligations, which are calculated based on actuarial valuations. Key assumptions used in determining these obligations and related
obligations, which are calculated based on actuarial valuations. Key assumptions used in determining these obligations and related
expenses include expected long-term rates of return on plan assets, discount rates and healthcare cost pro(cid:65)ections. (cid:49)e evaluate
obligations, which are calculated based on actuarial valuations. Key assumptions used in determining these obligations and related
expenses include expected long-term rates of return on plan assets, discount rates and healthcare cost pro(cid:65)ections. (cid:49)e evaluate
obligations, which are calculated based on actuarial valuations. Key assumptions used in determining these obligations and related
expenses include expected long-term rates of return on plan assets, discount rates and healthcare cost pro(cid:65)ections. (cid:49)e evaluate
expenses include expected long-term rates of return on plan assets, discount rates and healthcare cost pro(cid:65)ections. (cid:49)e evaluate
expenses include expected long-term rates of return on plan assets, discount rates and healthcare cost pro(cid:65)ections. (cid:49)e evaluate
expenses include expected long-term rates of return on plan assets, discount rates and healthcare cost pro(cid:65)ections. (cid:49)e evaluate
and update these assumptions annually in consultation with third-party actuaries and investment advisors. (cid:49)e also make
expenses include expected long-term rates of return on plan assets, discount rates and healthcare cost pro(cid:65)ections. (cid:49)e evaluate
and update these assumptions annually in consultation with third-party actuaries and investment advisors. (cid:49)e also make
expenses include expected long-term rates of return on plan assets, discount rates and healthcare cost pro(cid:65)ections. (cid:49)e evaluate
and update these assumptions annually in consultation with third-party actuaries and investment advisors. (cid:49)e also make
and update these assumptions annually in consultation with third-party actuaries and investment advisors. (cid:49)e also make
and update these assumptions annually in consultation with third-party actuaries and investment advisors. (cid:49)e also make
and update these assumptions annually in consultation with third-party actuaries and investment advisors. (cid:49)e also make
assumptions regarding employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation
and update these assumptions annually in consultation with third-party actuaries and investment advisors. (cid:49)e also make
assumptions regarding employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation
and update these assumptions annually in consultation with third-party actuaries and investment advisors. (cid:49)e also make
assumptions regarding employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation
assumptions regarding employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation
assumptions regarding employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation
assumptions regarding employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation
increases.
assumptions regarding employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation
increases.
assumptions regarding employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation
increases.
increases.
increases.
increases.
increases.
increases.
For our year-end measurement, our defined benefit plan assets and obligations are measured as of the month-end date closest to
For our year-end measurement, our defined benefit plan assets and obligations are measured as of the month-end date closest to
For our year-end measurement, our defined benefit plan assets and obligations are measured as of the month-end date closest to
For our year-end measurement, our defined benefit plan assets and obligations are measured as of the month-end date closest to
For our year-end measurement, our defined benefit plan assets and obligations are measured as of the month-end date closest to
For our year-end measurement, our defined benefit plan assets and obligations are measured as of the month-end date closest to
our fiscal year-end. (cid:49)e recogni(cid:81)e the overfunded or underfunded status of our pension and postretirement plans in the
For our year-end measurement, our defined benefit plan assets and obligations are measured as of the month-end date closest to
our fiscal year-end. (cid:49)e recogni(cid:81)e the overfunded or underfunded status of our pension and postretirement plans in the
For our year-end measurement, our defined benefit plan assets and obligations are measured as of the month-end date closest to
our fiscal year-end. (cid:49)e recogni(cid:81)e the overfunded or underfunded status of our pension and postretirement plans in the
our fiscal year-end. (cid:49)e recogni(cid:81)e the overfunded or underfunded status of our pension and postretirement plans in the
our fiscal year-end. (cid:49)e recogni(cid:81)e the overfunded or underfunded status of our pension and postretirement plans in the
our fiscal year-end. (cid:49)e recogni(cid:81)e the overfunded or underfunded status of our pension and postretirement plans in the
Consolidated Balance Sheets and recogni(cid:81)e changes in the funded status of our defined benefit plans in comprehensive income
our fiscal year-end. (cid:49)e recogni(cid:81)e the overfunded or underfunded status of our pension and postretirement plans in the
Consolidated Balance Sheets and recogni(cid:81)e changes in the funded status of our defined benefit plans in comprehensive income
our fiscal year-end. (cid:49)e recogni(cid:81)e the overfunded or underfunded status of our pension and postretirement plans in the
Consolidated Balance Sheets and recogni(cid:81)e changes in the funded status of our defined benefit plans in comprehensive income
Consolidated Balance Sheets and recogni(cid:81)e changes in the funded status of our defined benefit plans in comprehensive income
Consolidated Balance Sheets and recogni(cid:81)e changes in the funded status of our defined benefit plans in comprehensive income
Consolidated Balance Sheets and recogni(cid:81)e changes in the funded status of our defined benefit plans in comprehensive income
(loss) in the year in which they occur. To the extent actuarial gains and losses exceed 10(cid:4) of the higher of the market-related
Consolidated Balance Sheets and recogni(cid:81)e changes in the funded status of our defined benefit plans in comprehensive income
(loss) in the year in which they occur. To the extent actuarial gains and losses exceed 10(cid:4) of the higher of the market-related
Consolidated Balance Sheets and recogni(cid:81)e changes in the funded status of our defined benefit plans in comprehensive income
(loss) in the year in which they occur. To the extent actuarial gains and losses exceed 10(cid:4) of the higher of the market-related
(loss) in the year in which they occur. To the extent actuarial gains and losses exceed 10(cid:4) of the higher of the market-related
(loss) in the year in which they occur. To the extent actuarial gains and losses exceed 10(cid:4) of the higher of the market-related
(loss) in the year in which they occur. To the extent actuarial gains and losses exceed 10(cid:4) of the higher of the market-related
value of assets or the benefit obligation in a year, the excess is recogni(cid:81)ed as a component of accumulated other comprehensive
(loss) in the year in which they occur. To the extent actuarial gains and losses exceed 10(cid:4) of the higher of the market-related
value of assets or the benefit obligation in a year, the excess is recogni(cid:81)ed as a component of accumulated other comprehensive
(loss) in the year in which they occur. To the extent actuarial gains and losses exceed 10(cid:4) of the higher of the market-related
value of assets or the benefit obligation in a year, the excess is recogni(cid:81)ed as a component of accumulated other comprehensive
value of assets or the benefit obligation in a year, the excess is recogni(cid:81)ed as a component of accumulated other comprehensive
value of assets or the benefit obligation in a year, the excess is recogni(cid:81)ed as a component of accumulated other comprehensive
value of assets or the benefit obligation in a year, the excess is recogni(cid:81)ed as a component of accumulated other comprehensive
income (loss) and is amorti(cid:81)ed into net periodic pension cost over the remaining service period of the active participants. For
value of assets or the benefit obligation in a year, the excess is recogni(cid:81)ed as a component of accumulated other comprehensive
income (loss) and is amorti(cid:81)ed into net periodic pension cost over the remaining service period of the active participants. For
value of assets or the benefit obligation in a year, the excess is recogni(cid:81)ed as a component of accumulated other comprehensive
income (loss) and is amorti(cid:81)ed into net periodic pension cost over the remaining service period of the active participants. For
income (loss) and is amorti(cid:81)ed into net periodic pension cost over the remaining service period of the active participants. For
income (loss) and is amorti(cid:81)ed into net periodic pension cost over the remaining service period of the active participants. For
income (loss) and is amorti(cid:81)ed into net periodic pension cost over the remaining service period of the active participants. For
plans in which all or almost all of the plan(cid:88)s participants are inactive, the amorti(cid:81)ation period is the remaining life expectancy of
income (loss) and is amorti(cid:81)ed into net periodic pension cost over the remaining service period of the active participants. For
plans in which all or almost all of the plan(cid:88)s participants are inactive, the amorti(cid:81)ation period is the remaining life expectancy of
income (loss) and is amorti(cid:81)ed into net periodic pension cost over the remaining service period of the active participants. For
plans in which all or almost all of the plan(cid:88)s participants are inactive, the amorti(cid:81)ation period is the remaining life expectancy of
plans in which all or almost all of the plan(cid:88)s participants are inactive, the amorti(cid:81)ation period is the remaining life expectancy of
plans in which all or almost all of the plan(cid:88)s participants are inactive, the amorti(cid:81)ation period is the remaining life expectancy of
plans in which all or almost all of the plan(cid:88)s participants are inactive, the amorti(cid:81)ation period is the remaining life expectancy of
the inactive participants. This determination is made on a plan-by-plan basis.
plans in which all or almost all of the plan(cid:88)s participants are inactive, the amorti(cid:81)ation period is the remaining life expectancy of
the inactive participants. This determination is made on a plan-by-plan basis.
plans in which all or almost all of the plan(cid:88)s participants are inactive, the amorti(cid:81)ation period is the remaining life expectancy of
the inactive participants. This determination is made on a plan-by-plan basis.
the inactive participants. This determination is made on a plan-by-plan basis.
the inactive participants. This determination is made on a plan-by-plan basis.
the inactive participants. This determination is made on a plan-by-plan basis.
the inactive participants. This determination is made on a plan-by-plan basis.
the inactive participants. This determination is made on a plan-by-plan basis.
(cid:23)e(cid:64)i(cid:68)ati(cid:68)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:27)e(cid:50)(cid:53)i(cid:60)(cid:53)(cid:1)(cid:20)(cid:49)ti(cid:68)itie(cid:65)
(cid:23)e(cid:64)i(cid:68)ati(cid:68)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:27)e(cid:50)(cid:53)i(cid:60)(cid:53)(cid:1)(cid:20)(cid:49)ti(cid:68)itie(cid:65)
(cid:23)e(cid:64)i(cid:68)ati(cid:68)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:27)e(cid:50)(cid:53)i(cid:60)(cid:53)(cid:1)(cid:20)(cid:49)ti(cid:68)itie(cid:65)
(cid:23)e(cid:64)i(cid:68)ati(cid:68)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:27)e(cid:50)(cid:53)i(cid:60)(cid:53)(cid:1)(cid:20)(cid:49)ti(cid:68)itie(cid:65)
(cid:23)e(cid:64)i(cid:68)ati(cid:68)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:27)e(cid:50)(cid:53)i(cid:60)(cid:53)(cid:1)(cid:20)(cid:49)ti(cid:68)itie(cid:65)
(cid:23)e(cid:64)i(cid:68)ati(cid:68)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:27)e(cid:50)(cid:53)i(cid:60)(cid:53)(cid:1)(cid:20)(cid:49)ti(cid:68)itie(cid:65)
(cid:23)e(cid:64)i(cid:68)ati(cid:68)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:27)e(cid:50)(cid:53)i(cid:60)(cid:53)(cid:1)(cid:20)(cid:49)ti(cid:68)itie(cid:65)
(cid:49)e are exposed to market risk primarily from changes in currency exchange rates and interest rates. (cid:49)e do not hold or issue
(cid:23)e(cid:64)i(cid:68)ati(cid:68)e(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:27)e(cid:50)(cid:53)i(cid:60)(cid:53)(cid:1)(cid:20)(cid:49)ti(cid:68)itie(cid:65)
(cid:49)e are exposed to market risk primarily from changes in currency exchange rates and interest rates. (cid:49)e do not hold or issue
(cid:49)e are exposed to market risk primarily from changes in currency exchange rates and interest rates. (cid:49)e do not hold or issue
(cid:49)e are exposed to market risk primarily from changes in currency exchange rates and interest rates. (cid:49)e do not hold or issue
(cid:49)e are exposed to market risk primarily from changes in currency exchange rates and interest rates. (cid:49)e do not hold or issue
(cid:49)e are exposed to market risk primarily from changes in currency exchange rates and interest rates. (cid:49)e do not hold or issue
derivative financial instruments for trading or speculative purposes. To manage the volatility relating to our exposures, we net
(cid:49)e are exposed to market risk primarily from changes in currency exchange rates and interest rates. (cid:49)e do not hold or issue
(cid:49)e are exposed to market risk primarily from changes in currency exchange rates and interest rates. (cid:49)e do not hold or issue
derivative financial instruments for trading or speculative purposes. To manage the volatility relating to our exposures, we net
derivative financial instruments for trading or speculative purposes. To manage the volatility relating to our exposures, we net
derivative financial instruments for trading or speculative purposes. To manage the volatility relating to our exposures, we net
derivative financial instruments for trading or speculative purposes. To manage the volatility relating to our exposures, we net
derivative financial instruments for trading or speculative purposes. To manage the volatility relating to our exposures, we net
these exposures on a consolidated basis to take advantage of natural offsets. For the residual portion, we enter into various
derivative financial instruments for trading or speculative purposes. To manage the volatility relating to our exposures, we net
derivative financial instruments for trading or speculative purposes. To manage the volatility relating to our exposures, we net
these exposures on a consolidated basis to take advantage of natural offsets. For the residual portion, we enter into various
these exposures on a consolidated basis to take advantage of natural offsets. For the residual portion, we enter into various
these exposures on a consolidated basis to take advantage of natural offsets. For the residual portion, we enter into various
these exposures on a consolidated basis to take advantage of natural offsets. For the residual portion, we enter into various
these exposures on a consolidated basis to take advantage of natural offsets. For the residual portion, we enter into various
derivative transactions pursuant to our policies in areas such as counterparty exposure and hedging practices. Credit risk related
these exposures on a consolidated basis to take advantage of natural offsets. For the residual portion, we enter into various
these exposures on a consolidated basis to take advantage of natural offsets. For the residual portion, we enter into various
derivative transactions pursuant to our policies in areas such as counterparty exposure and hedging practices. Credit risk related
derivative transactions pursuant to our policies in areas such as counterparty exposure and hedging practices. Credit risk related
derivative transactions pursuant to our policies in areas such as counterparty exposure and hedging practices. Credit risk related
derivative transactions pursuant to our policies in areas such as counterparty exposure and hedging practices. Credit risk related
derivative transactions pursuant to our policies in areas such as counterparty exposure and hedging practices. Credit risk related
to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and
derivative transactions pursuant to our policies in areas such as counterparty exposure and hedging practices. Credit risk related
to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and
derivative transactions pursuant to our policies in areas such as counterparty exposure and hedging practices. Credit risk related
to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and
to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and
to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and
to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and
through periodic settlements of positions.
to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and
to derivative financial instruments is considered minimal and is managed by requiring high credit standards for counterparties and
through periodic settlements of positions.
through periodic settlements of positions.
through periodic settlements of positions.
through periodic settlements of positions.
through periodic settlements of positions.
through periodic settlements of positions.
through periodic settlements of positions.
All derivative instruments are reported at fair value in the Consolidated Balance Sheets. Designation to support hedge accounting
All derivative instruments are reported at fair value in the Consolidated Balance Sheets. Designation to support hedge accounting
All derivative instruments are reported at fair value in the Consolidated Balance Sheets. Designation to support hedge accounting
All derivative instruments are reported at fair value in the Consolidated Balance Sheets. Designation to support hedge accounting
All derivative instruments are reported at fair value in the Consolidated Balance Sheets. Designation to support hedge accounting
All derivative instruments are reported at fair value in the Consolidated Balance Sheets. Designation to support hedge accounting
is performed on a specific exposure basis. For financial instruments qualifying as cash flow hedges, we record changes in the fair
All derivative instruments are reported at fair value in the Consolidated Balance Sheets. Designation to support hedge accounting
All derivative instruments are reported at fair value in the Consolidated Balance Sheets. Designation to support hedge accounting
is performed on a specific exposure basis. For financial instruments qualifying as cash flow hedges, we record changes in the fair
is performed on a specific exposure basis. For financial instruments qualifying as cash flow hedges, we record changes in the fair
is performed on a specific exposure basis. For financial instruments qualifying as cash flow hedges, we record changes in the fair
is performed on a specific exposure basis. For financial instruments qualifying as cash flow hedges, we record changes in the fair
is performed on a specific exposure basis. For financial instruments qualifying as cash flow hedges, we record changes in the fair
value of derivatives (to the extent they are effective as hedges) in other comprehensive income (loss), net of deferred taxes.
is performed on a specific exposure basis. For financial instruments qualifying as cash flow hedges, we record changes in the fair
value of derivatives (to the extent they are effective as hedges) in other comprehensive income (loss), net of deferred taxes.
is performed on a specific exposure basis. For financial instruments qualifying as cash flow hedges, we record changes in the fair
value of derivatives (to the extent they are effective as hedges) in other comprehensive income (loss), net of deferred taxes.
value of derivatives (to the extent they are effective as hedges) in other comprehensive income (loss), net of deferred taxes.
value of derivatives (to the extent they are effective as hedges) in other comprehensive income (loss), net of deferred taxes.
value of derivatives (to the extent they are effective as hedges) in other comprehensive income (loss), net of deferred taxes.
Changes in fair value of derivatives not qualifying as hedges are recorded in earnings.
value of derivatives (to the extent they are effective as hedges) in other comprehensive income (loss), net of deferred taxes.
value of derivatives (to the extent they are effective as hedges) in other comprehensive income (loss), net of deferred taxes.
Changes in fair value of derivatives not qualifying as hedges are recorded in earnings.
Changes in fair value of derivatives not qualifying as hedges are recorded in earnings.
Changes in fair value of derivatives not qualifying as hedges are recorded in earnings.
Changes in fair value of derivatives not qualifying as hedges are recorded in earnings.
Changes in fair value of derivatives not qualifying as hedges are recorded in earnings.
Changes in fair value of derivatives not qualifying as hedges are recorded in earnings.
Changes in fair value of derivatives not qualifying as hedges are recorded in earnings.
Foreign currency denominated assets and liabilities are translated into (cid:47).S. dollars. Ad(cid:65)ustments from currency rate changes are
Foreign currency denominated assets and liabilities are translated into (cid:47).S. dollars. Ad(cid:65)ustments from currency rate changes are
Foreign currency denominated assets and liabilities are translated into (cid:47).S. dollars. Ad(cid:65)ustments from currency rate changes are
Foreign currency denominated assets and liabilities are translated into (cid:47).S. dollars. Ad(cid:65)ustments from currency rate changes are
Foreign currency denominated assets and liabilities are translated into (cid:47).S. dollars. Ad(cid:65)ustments from currency rate changes are
Foreign currency denominated assets and liabilities are translated into (cid:47).S. dollars. Ad(cid:65)ustments from currency rate changes are
recorded in the cumulative translation ad(cid:65)ustment account in shareholders(cid:88) equity until the related foreign entity is sold or
Foreign currency denominated assets and liabilities are translated into (cid:47).S. dollars. Ad(cid:65)ustments from currency rate changes are
Foreign currency denominated assets and liabilities are translated into (cid:47).S. dollars. Ad(cid:65)ustments from currency rate changes are
recorded in the cumulative translation ad(cid:65)ustment account in shareholders(cid:88) equity until the related foreign entity is sold or
recorded in the cumulative translation ad(cid:65)ustment account in shareholders(cid:88) equity until the related foreign entity is sold or
recorded in the cumulative translation ad(cid:65)ustment account in shareholders(cid:88) equity until the related foreign entity is sold or
recorded in the cumulative translation ad(cid:65)ustment account in shareholders(cid:88) equity until the related foreign entity is sold or
recorded in the cumulative translation ad(cid:65)ustment account in shareholders(cid:88) equity until the related foreign entity is sold or
substantially liquidated.
recorded in the cumulative translation ad(cid:65)ustment account in shareholders(cid:88) equity until the related foreign entity is sold or
recorded in the cumulative translation ad(cid:65)ustment account in shareholders(cid:88) equity until the related foreign entity is sold or
substantially liquidated.
substantially liquidated.
substantially liquidated.
substantially liquidated.
substantially liquidated.
substantially liquidated.
substantially liquidated.
(cid:31)ea(cid:65)e(cid:65)
(cid:31)ea(cid:65)e(cid:65)
(cid:31)ea(cid:65)e(cid:65)
(cid:31)ea(cid:65)e(cid:65)
(cid:31)ea(cid:65)e(cid:65)
(cid:31)ea(cid:65)e(cid:65)
(cid:31)ea(cid:65)e(cid:65)
(cid:49)e identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated
(cid:31)ea(cid:65)e(cid:65)
(cid:49)e identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated
(cid:49)e identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated
(cid:49)e identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated
(cid:49)e identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated
(cid:49)e identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated
period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the
(cid:49)e identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated
(cid:49)e identify leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated
period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the
period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the
period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the
period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the
period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the
right to obtain substantially all of the economic benefits or outputs from the asset. For our contracts that contain both lease
period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the
period of time in exchange for consideration. Specifically, we consider whether we can control the underlying asset and have the
right to obtain substantially all of the economic benefits or outputs from the asset. For our contracts that contain both lease
right to obtain substantially all of the economic benefits or outputs from the asset. For our contracts that contain both lease
right to obtain substantially all of the economic benefits or outputs from the asset. For our contracts that contain both lease
right to obtain substantially all of the economic benefits or outputs from the asset. For our contracts that contain both lease
right to obtain substantially all of the economic benefits or outputs from the asset. For our contracts that contain both lease
components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-
right to obtain substantially all of the economic benefits or outputs from the asset. For our contracts that contain both lease
right to obtain substantially all of the economic benefits or outputs from the asset. For our contracts that contain both lease
components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-
components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-
components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-
components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-
components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-
area maintenance costs or other goods/services), we allocate the consideration in the contract to each component based on its
components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-
area maintenance costs or other goods/services), we allocate the consideration in the contract to each component based on its
components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-
area maintenance costs or other goods/services), we allocate the consideration in the contract to each component based on its
area maintenance costs or other goods/services), we allocate the consideration in the contract to each component based on its
area maintenance costs or other goods/services), we allocate the consideration in the contract to each component based on its
area maintenance costs or other goods/services), we allocate the consideration in the contract to each component based on its
standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the
area maintenance costs or other goods/services), we allocate the consideration in the contract to each component based on its
area maintenance costs or other goods/services), we allocate the consideration in the contract to each component based on its
standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the
standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the
standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the
standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the
standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the
commencement date. For these leases, we capitali(cid:81)e the lesser of a) the present value of the minimum lease payments over the
standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the
standalone price. Leases with terms greater than 12 months are classified as either operating or finance leases at the
commencement date. For these leases, we capitali(cid:81)e the lesser of a) the present value of the minimum lease payments over the
commencement date. For these leases, we capitali(cid:81)e the lesser of a) the present value of the minimum lease payments over the
commencement date. For these leases, we capitali(cid:81)e the lesser of a) the present value of the minimum lease payments over the
commencement date. For these leases, we capitali(cid:81)e the lesser of a) the present value of the minimum lease payments over the
commencement date. For these leases, we capitali(cid:81)e the lesser of a) the present value of the minimum lease payments over the
lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to
commencement date. For these leases, we capitali(cid:81)e the lesser of a) the present value of the minimum lease payments over the
commencement date. For these leases, we capitali(cid:81)e the lesser of a) the present value of the minimum lease payments over the
lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to
lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to
lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to
lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to
lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to
calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the
lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to
calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the
lease term, or b) the fair value of the asset, as a right-of-use asset with an offsetting lease liability. The discount rate used to
calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the
calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the
calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the
calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the
lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to
calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the
lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to
calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the
lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to
lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to
lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to
lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to
use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the
lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to
lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to
use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the
use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the
use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the
use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the
use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the
use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the
use the asset and may include options to extend or terminate the lease when it is reasonably certain that we will exercise the
44 Textron 2023 Annual Report
44
44
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44
option. Operating leases are recogni(cid:81)ed as a single lease cost on a straight-line basis over the lease term, while finance lease cost
is recogni(cid:81)ed separately as amorti(cid:81)ation and interest expense.
(cid:35)(cid:64)(cid:61)(cid:50)(cid:67)(cid:49)t(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
(cid:49)e accrue for product liability claims and related defense costs when a loss is probable and reasonably estimable. Our estimates
are generally based on the specifics of each claim or incident and our best estimate of the probable loss using historical
experience.
(cid:24)(cid:60)(cid:68)i(cid:64)(cid:61)(cid:60)me(cid:60)tal(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:20)(cid:65)(cid:65)et(cid:1)(cid:37)eti(cid:64)eme(cid:60)t(cid:1)(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)
Liabilities for environmental matters are recorded on a site-by-site basis when it is probable that an obligation has been incurred
and the cost can be reasonably estimated. (cid:49)e estimate our accrued environmental liabilities using currently available facts,
existing technology, and presently enacted laws and regulations, all of which are sub(cid:65)ect to a number of factors and uncertainties.
Our environmental liabilities are not discounted and do not take into consideration possible future insurance proceeds or
significant amounts from claims against other third parties.
(cid:49)e have incurred asset retirement obligations primarily related to costs to remove and dispose of underground storage tanks and
asbestos materials used in insulation, adhesive fillers and floor tiles. Currently, there is no legal requirement to remove these items
and there is no plan to remodel the related facilities or otherwise cause the impacted items to require disposal. Since these asset
retirement obligations are not probable, there is no related liability recorded in the Consolidated Balance Sheets.
(cid:42)a(cid:64)(cid:64)a(cid:60)t(cid:71)(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
For our assurance-type warranty programs, we estimate the costs that may be incurred and record a liability in the amount of such
costs at the time product revenues are recogni(cid:81)ed. Factors that affect this liability include the number of products sold, historical
costs per claim, length of warranty period, contractual recoveries from vendors and historical and anticipated rates of warranty
claims, including production and warranty patterns for new models. (cid:49)e assess the adequacy of our recorded warranty liability
periodically and ad(cid:65)ust the amounts as necessary. Additionally, we may establish a warranty liability related to the issuance of
aircraft service bulletins for aircraft no longer covered under the limited warranty programs.
(cid:37)e(cid:65)ea(cid:64)(cid:49)(cid:54)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:23)e(cid:68)el(cid:61)(cid:62)me(cid:60)t(cid:1)(cid:22)(cid:61)(cid:65)t(cid:65)
Our customer-funded research and development costs are charged directly to the related contracts, which primarily consist of (cid:47).S.
Government contracts. In accordance with government regulations, we recover a portion of company-funded research and
development costs through overhead rate charges on our (cid:47).S. Government contracts. Research and development costs that are not
reimbursable under a contract with the (cid:47).S. Government or another customer are charged to expense as incurred. Company-
funded research and development costs were (cid:3)(cid:20)70 million, (cid:3)(cid:21)01 million and (cid:3)(cid:21)19 million in 2023, 2022 and 2021, respectively,
and are included in cost of sales.
(cid:28)(cid:60)(cid:49)(cid:61)me(cid:1)Ta(cid:70)e(cid:65)
The provision for income tax expense is calculated on reported income before income taxes based on current tax law and includes,
in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax
assets and liabilities. Tax laws may require items to be included in the determination of taxable income at different times from
when the items are reflected in the financial statements. Deferred tax balances reflect the effects of temporary differences between
the financial reporting carrying amounts of assets and liabilities and their tax bases, as well as from net operating losses and tax
credit carryforwards, and are stated at enacted tax rates in effect for the year taxes are expected to be paid or recovered.
Deferred tax assets represent tax benefits for tax deductions or credits available in future years and require certain estimates and
assumptions to determine whether it is more likely than not that all or a portion of the benefit will not be reali(cid:81)ed. The
recoverability of these future tax deductions and credits is determined by assessing the adequacy of future expected taxable
income from all sources, including the future reversal of existing taxable temporary differences, taxable income in carryback
years, estimated future taxable income and available tax planning strategies. Should a change in facts or circumstances lead to a
change in (cid:65)udgment about the ultimate recoverability of a deferred tax asset, we record or ad(cid:65)ust the related valuation allowance in
the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in income tax
expense.
(cid:49)e record tax benefits for uncertain tax positions based upon management(cid:88)s evaluation of the information available at the
reporting date. To be recogni(cid:81)ed in the financial statements, the tax position must meet the more-likely-than-not threshold that
the position will be sustained upon examination by the tax authority based on technical merits assuming the tax authority has full
knowledge of all relevant information. For positions meeting this recognition threshold, the benefit is measured as the largest
amount of benefit that meets the more-likely-than-not threshold to be sustained. (cid:49)e periodically evaluate these tax positions
based on the latest available information. For tax positions that do not meet the threshold requirement, we recogni(cid:81)e net tax-
related interest and penalties for continuing operations in income tax expense.
Textron 2023 Annual Report 45
4(cid:20)
N(cid:61)te(cid:1)(cid:11)(cid:8)(cid:1)(cid:21)(cid:67)(cid:65)i(cid:60)e(cid:65)(cid:65)(cid:1)(cid:20)(cid:49)(cid:63)(cid:67)i(cid:65)iti(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:23)i(cid:65)(cid:62)(cid:61)(cid:65)iti(cid:61)(cid:60)
On April 1(cid:20), 2022, we acquired Pipistrel for a cash purchase price of (cid:3)239 million, which included the assumption of (cid:3)3(cid:20) million
of debt and other contractual obligations under the agreement and a final fixed payment of (cid:3)21 million due in 2024. Pipistrel is a
manufacturer of light aircraft and gliders with both electric and combustion engines and is included in the Textron eAviation
segment.
On January 2(cid:20), 2021, we completed the sale of TR(cid:47) Simulation (cid:10) Training Canada Inc. within our Textron Systems segment for
net cash proceeds of (cid:3)3(cid:23) million and recorded an after-tax gain of (cid:3)17 million.
N(cid:61)te(cid:1)(cid:12)(cid:8)(cid:1)(cid:26)(cid:61)(cid:61)(cid:50)(cid:69)ill(cid:1)a(cid:60)(cid:50)(cid:1)(cid:28)(cid:60)ta(cid:60)(cid:53)i(cid:48)le(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)
(cid:26)(cid:61)(cid:61)(cid:50)(cid:69)ill(cid:1)
The changes in the carrying amount of goodwill by segment are as follows:
(In millions)
Balance at January 1, 2022
Acquisitions
Foreign currency translation
Balance at December 31, 2022
Foreign currency translation
Balance at December 30, 2023
Te(cid:70)t(cid:64)(cid:61)(cid:60)
(cid:20)(cid:68)iati(cid:61)(cid:60)
(cid:21)31 (cid:3)
3
(1)
(cid:21)33
(cid:85)
(cid:21)33 (cid:3)
(cid:3)
(cid:3)
(cid:21)ell
3(cid:20) (cid:3)
2
(cid:85)
37
(cid:85)
37 (cid:3)
Te(cid:70)t(cid:64)(cid:61)(cid:60)
(cid:38)(cid:71)(cid:65)tem(cid:65)
1,010 (cid:3)
(cid:85)
(cid:85)
1,010
(cid:85)
1,010 (cid:3)
(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)ial
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)
e(cid:20)(cid:68)iati(cid:61)(cid:60)
473 (cid:3)
(cid:85)
((cid:23))
4(cid:21)(cid:20)
(cid:20)
470 (cid:3)
(cid:85) (cid:3)
141
(3)
13(cid:23)
7
14(cid:20) (cid:3)
T(cid:61)tal
2,149
14(cid:21)
(12)
2,2(cid:23)3
12
2,29(cid:20)
(cid:28)(cid:60)ta(cid:60)(cid:53)i(cid:48)le(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)
Our intangible assets are summari(cid:81)ed below:
((cid:23)oll(cid:40)(cid:57)s in millions)
Trade names and trademarks
Patents and technology
Customer relationships and
contractual agreements
Total
(cid:42)ei(cid:53)(cid:54)te(cid:50)(cid:7)(cid:20)(cid:68)e(cid:64)a(cid:53)e
(cid:20)m(cid:61)(cid:64)ti(cid:72)ati(cid:61)(cid:60)
(cid:35)e(cid:64)i(cid:61)(cid:50)(cid:1)(cid:3)i(cid:60)(cid:1)(cid:71)ea(cid:64)(cid:65)(cid:4)
1(cid:23)
1(cid:20)
1(cid:20)
(cid:3)
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:11)
(cid:26)(cid:64)(cid:61)(cid:65)(cid:65)
(cid:22)a(cid:64)(cid:64)(cid:71)i(cid:60)(cid:53)
(cid:20)m(cid:61)(cid:67)(cid:60)t
(cid:20)(cid:49)(cid:49)(cid:67)m(cid:67)late(cid:50)
(cid:20)m(cid:61)(cid:64)ti(cid:72)ati(cid:61)(cid:60)
200 (cid:3)
(cid:20)10
(9) (cid:3)
(333)
Net
191 (cid:3)
177
(cid:26)(cid:64)(cid:61)(cid:65)(cid:65)
(cid:22)a(cid:64)(cid:64)(cid:71)i(cid:60)(cid:53)
(cid:20)m(cid:61)(cid:67)(cid:60)t
(cid:20)(cid:49)(cid:49)(cid:67)m(cid:67)late(cid:50)
(cid:20)m(cid:61)(cid:64)ti(cid:72)ati(cid:61)(cid:60)
199 (cid:3)
(cid:20)27
3(cid:20)7
1,0(cid:21)7 (cid:3)
(32(cid:21))
((cid:21)(cid:21)(cid:23)) (cid:3)
31
399 (cid:3)
392
1,11(cid:23) (cid:3)
((cid:23)) (cid:3)
(319)
(330)
((cid:21)(cid:20)7) (cid:3)
Net
191
20(cid:23)
(cid:21)2
4(cid:21)1
Trade names and trademarks in the table above include (cid:3)1(cid:21)9 million of indefinite-lived intangible assets at both December 30,
2023 and December 31, 2022. In 2023, we recogni(cid:81)ed (cid:3)27 million of intangible asset impairment charges, primarily related to
customer relationships and contractual agreements, as discussed in Note 1(cid:21). Amorti(cid:81)ation expense totaled (cid:3)39 million, (cid:3)(cid:20)2
million and (cid:3)(cid:20)1 million, in 2023, 2022 and 2021, respectively. Amorti(cid:81)ation expense is estimated to be approximately (cid:3)34
million, (cid:3)32 million, (cid:3)29 million, (cid:3)27 million and (cid:3)2(cid:21) million in 2024, 202(cid:20), 202(cid:21), 2027 and 202(cid:23), respectively.
N(cid:61)te(cid:1)(cid:13)(cid:8)(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)t(cid:65)(cid:1)(cid:37)e(cid:49)ei(cid:68)a(cid:48)le(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:37)e(cid:49)ei(cid:68)a(cid:48)le(cid:65)
(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)t(cid:65)(cid:1)(cid:37)e(cid:49)ei(cid:68)a(cid:48)le
Accounts receivable is composed of the following:
(In millions)
Commercial
(cid:47).S. Government contracts
Allowance for credit losses
Total
46 Textron 2023 Annual Report
4(cid:21)
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)31 (cid:3)
(cid:21)3
(cid:23)94
(2(cid:21))
(cid:23)(cid:21)(cid:23) (cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
7(cid:20)(cid:20)
124
(cid:23)79
(24)
(cid:23)(cid:20)(cid:20)
(cid:3)
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:37)e(cid:49)ei(cid:68)a(cid:48)le(cid:65)
Finance receivables are presented in the following table:
(In millions)
Finance receivables
Allowance for credit losses
Total finance receivables, net
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:21)09 (cid:3)
(24)
(cid:20)(cid:23)(cid:20) (cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:20)(cid:23)7
(24)
(cid:20)(cid:21)3
(cid:3)
Finance receivables primarily includes loans provided to purchasers of new and pre-owned Textron Aviation aircraft and Bell
helicopters. These loans generally have initial terms ranging from five years to twelve years, amorti(cid:81)ation terms ranging from
eight years to fifteen years and an average balance of (cid:3)1.9 million at December 30, 2023. Loans generally require the customer to
pay a significant down payment, along with periodic scheduled principal payments that reduce the outstanding balance through
the term of the loan. Our finance receivables are diversified across geographic region and borrower industry. At December 30,
2023, (cid:20)7(cid:4) of our finance receivables were distributed internationally and 43(cid:4) throughout the (cid:47).S., compared with (cid:20)(cid:23)(cid:4) and
42(cid:4), respectively, at December 31, 2022.
(cid:25)in(cid:40)n(cid:42)(cid:44) (cid:35)(cid:44)(cid:42)(cid:44)i(cid:61)(cid:40)(cid:41)l(cid:44) (cid:33)o(cid:57)(cid:59)(cid:45)olio (cid:34)(cid:60)(cid:40)li(cid:59)(cid:64)
(cid:49)e 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.
(cid:49)e 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.
(cid:49)e 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 categori(cid:81)ed based on the credit quality indicators and by delinquency aging category are summari(cid:81)ed as
follows:
((cid:23)oll(cid:40)(cid:57)s in millions)
Performing
(cid:49)atchlist
Nonaccrual
Nonaccrual as a percentage of finance receivables
Current and less than 31 days past due
31-(cid:21)0 days past due
(cid:21)1-90 days past due
Over 90 days past due
(cid:21)0(cid:10) days contractual delinquency as a percentage of finance receivables
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:20)71 (cid:3)
23
1(cid:20)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:20)1(cid:20)
2(cid:21)
4(cid:21)
(cid:3)
2.4(cid:21) (cid:4)
7.(cid:23)4 (cid:4)
(cid:20)(cid:23)9 (cid:3)
1(cid:21)
(cid:85)
4
(cid:20)79
7
(cid:85)
1
0.(cid:21)(cid:21) (cid:4)
0.17 (cid:4)
At December 30, 2023, 44(cid:4) of our performing finance receivables were originated since the beginning of 2021 and 2(cid:21)(cid:4) were
originated from 201(cid:23) to 2020 with the remainder prior to 201(cid:23). For finance receivables categori(cid:81)ed as watchlist, 100(cid:4) were
originated since the beginning of 2020 and for nonaccrual, 43(cid:4) were originated from 201(cid:23) to 2020 with the remainder prior to
201(cid:23).
47
Textron 2023 Annual Report 47
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(cid:88)s original terms have
been, or are expected to be, significantly modified. If the modification specifies an interest rate equal to or greater than a market
rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification.
A summary of impaired finance receivables, excluding leveraged leases, and the average recorded investment is provided below:
(In millions)
Recorded investment:
Impaired finance receivables with specific allowance for credit losses
Impaired finance receivables with no specific allowance for credit losses
Total
(cid:47)npaid principal balance
Allowance for credit losses on impaired finance receivables
Average recorded investment of impaired finance receivables
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:3)
(cid:3)
(cid:3)
11 (cid:3)
4
1(cid:20) (cid:3)
2(cid:20) (cid:3)
3
27
1(cid:20)
31
4(cid:21)
(cid:21)0
3
(cid:21)7
A summary of the allowance for credit losses on finance receivables based on how the underlying finance receivables are
evaluated for impairment is provided below. The finance receivables reported in this table exclude (cid:3)(cid:23)(cid:21) million and (cid:3)91 million of
leveraged leases at December 30, 2023 and December 31, 2022, respectively, in accordance with (cid:47).S. generally accepted
accounting principles.
(In millions)
Allowance for credit losses based on collective evaluation
Allowance for credit losses based on individual evaluation
Finance receivables evaluated collectively
Finance receivables evaluated individually
N(cid:61)te(cid:1)(cid:14)(cid:8)(cid:1)(cid:28)(cid:60)(cid:68)e(cid:60)t(cid:61)(cid:64)ie(cid:65)
Inventories are composed of the following:
(In millions)
Finished goods
(cid:49)ork in process
Raw materials and components
Total
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
21 (cid:3)
3
(cid:20)0(cid:23)
1(cid:20)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
21
3
4(cid:20)0
4(cid:21)
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
1,072 (cid:3)
1,73(cid:21)
1,10(cid:21)
3,914 (cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
991
1,(cid:20)40
1,019
3,(cid:20)(cid:20)0
(cid:3)
At December 30, 2023, (cid:21)(cid:23)(cid:4) of inventories were valued using the LIFO method, compared with 71(cid:4) at December 31, 2022.
Inventories valued at LIFO cost would have been higher by approximately (cid:3)701 million and (cid:3)(cid:20)94 million, at December 30, 2023
and December 31, 2022, respectively, if they had been valued using the FIFO method.
48 Textron 2023 Annual Report
4(cid:23)
N(cid:61)te(cid:1)(cid:15)(cid:8)(cid:1)(cid:35)(cid:64)(cid:61)(cid:62)e(cid:64)t(cid:71)(cid:6)(cid:1)(cid:35)la(cid:60)t(cid:1)a(cid:60)(cid:50)(cid:1)(cid:24)(cid:63)(cid:67)i(cid:62)me(cid:60)t(cid:6)(cid:1)Net
Our Manufacturing group(cid:88)s property, plant and equipment, net is composed of the following:
((cid:23)oll(cid:40)(cid:57)s in millions)
Land, buildings and improvements
Machinery and equipment
Accumulated depreciation and amorti(cid:81)ation
Total
(cid:40)(cid:65)e(cid:52)(cid:67)l(cid:1)(cid:31)i(cid:68)e(cid:65)
(cid:3)i(cid:60)(cid:1)(cid:71)ea(cid:64)(cid:65)(cid:4)
2
1
- 40 (cid:3)
- 20
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
2,229 (cid:3)
(cid:20),49(cid:20)
7,724
((cid:20),247)
2,477 (cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
2,140
(cid:20),4(cid:21)7
7,(cid:21)07
((cid:20),0(cid:23)4)
2,(cid:20)23
(cid:3)
The Manufacturing group(cid:88)s depreciation expense totaled (cid:3)3(cid:20)3 million, (cid:3)340 million and (cid:3)32(cid:20) million in 2023, 2022 and 2021,
respectively.
N(cid:61)te(cid:1)(cid:16)(cid:8)(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)t(cid:65)(cid:1)(cid:35)a(cid:71)a(cid:48)le(cid:1)a(cid:60)(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)t(cid:65)(cid:1)(cid:35)a(cid:71)a(cid:48)le
(cid:36)(cid:60)(cid:55)(cid:55)li(cid:44)(cid:57) (cid:25)in(cid:40)n(cid:42)in(cid:46) (cid:20)(cid:57)(cid:57)(cid:40)n(cid:46)(cid:44)m(cid:44)n(cid:59)
(cid:49)e have a financing arrangement with one of our suppliers for a maximum amount of (cid:3)17(cid:20) million that extends payment terms
for up to 190 days from the receipt of goods and provides for the supplier to be paid by a financial institution earlier than maturity.
This financing arrangement expires in April 2024. As of December 30, 2023 and December 31, 2022, the amount due under this
supplier financing arrangement was (cid:3)12(cid:20) million and (cid:3)110 million, respectively.
(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)t(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
The other current liabilities of our Manufacturing group are summari(cid:81)ed below:
(In millions)
Contract liabilities
Salaries, wages and employer taxes
Current portion of warranty and product maintenance liabilities
Other
Total
Changes in our warranty liability are as follows:
(In millions)
Balance at beginning of year
Provision
Settlements
Ad(cid:65)ustments*
Balance at end of year
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
1,(cid:20)9(cid:20) (cid:3)
4(cid:21)(cid:21)
21(cid:20)
722
2,99(cid:23) (cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
1,41(cid:21)
414
171
(cid:21)44
2,(cid:21)4(cid:20)
(cid:3)
(cid:3)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
149 (cid:3)
7(cid:21)
((cid:21)9)
1(cid:21)
172 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:11)
127 (cid:3)
73
((cid:21)0)
9
149 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:10)
119
70
((cid:21)(cid:21))
4
127
(cid:5) (cid:20)(cid:43)(cid:49)(cid:60)s(cid:59)m(cid:44)n(cid:59)s in(cid:42)l(cid:60)(cid:43)(cid:44) (cid:42)(cid:47)(cid:40)n(cid:46)(cid:44)s (cid:59)o (cid:55)(cid:57)io(cid:57) (cid:64)(cid:44)(cid:40)(cid:57) (cid:44)s(cid:59)im(cid:40)(cid:59)(cid:44)s(cid:6) n(cid:44)(cid:62) iss(cid:60)(cid:44)s on (cid:55)(cid:57)io(cid:57) (cid:64)(cid:44)(cid:40)(cid:57) s(cid:40)l(cid:44)s(cid:6) (cid:41)(cid:60)sin(cid:44)ss (cid:40)(cid:42)(cid:56)(cid:60)isi(cid:59)ions (cid:40)n(cid:43) (cid:43)is(cid:55)osi(cid:59)ions(cid:6) (cid:40)n(cid:43) (cid:42)(cid:60)(cid:57)(cid:57)(cid:44)n(cid:42)(cid:64) (cid:59)(cid:57)(cid:40)nsl(cid:40)(cid:59)ion
(cid:40)(cid:43)(cid:49)(cid:60)s(cid:59)m(cid:44)n(cid:59)s(cid:8)
49
Textron 2023 Annual Report 49
N(cid:61)te(cid:1)(cid:17)(cid:8)(cid:1)(cid:31)ea(cid:65)e(cid:65)
(cid:49)e 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 2(cid:20) 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 (cid:3)(cid:21)9
million, (cid:3)(cid:21)9 million and (cid:3)(cid:21)(cid:21) million in 2023, 2022 and 2021, respectively. Variable and short-term lease costs were not
significant. In 2023, 2022 and 2021, cash paid for operating lease liabilities totaled (cid:3)(cid:21)9 million, (cid:3)(cid:21)(cid:23) million and (cid:3)(cid:21)(cid:21) million,
respectively, and is classified in cash flows from operating activities. Noncash transactions totaled (cid:3)(cid:20)4 million, (cid:3)(cid:20)(cid:23) million and
(cid:3)(cid:23)(cid:21) million in 2023, 2022 and 2021, reflecting the recognition of operating lease assets and liabilities for new or extended leases.
Balance sheet and other information related to our operating leases is as follows:
((cid:23)oll(cid:40)(cid:57)s in millions)
Other assets
Other current liabilities
Other liabilities
(cid:49)eighted-average remaining lease term (in years)
(cid:49)eighted-average discount rate
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
371 (cid:3)
(cid:20)(cid:20)
32(cid:21)
10.3
4.70(cid:4)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
372
(cid:20)4
32(cid:21)
10.4
4.14(cid:4)
At December 30, 2023, maturities of our operating lease liabilities on an undiscounted basis totaled (cid:3)(cid:21)9 million for 2024, (cid:3)(cid:21)2
million for 202(cid:20), (cid:3)47 million for 202(cid:21), (cid:3)41 million for 2027, (cid:3)39 million for 202(cid:23) and (cid:3)231 million thereafter.
N(cid:61)te(cid:1)(cid:18)(cid:8)(cid:1)(cid:23)e(cid:48)t(cid:1)a(cid:60)(cid:50)(cid:1)(cid:22)(cid:64)e(cid:50)it(cid:1)(cid:25)a(cid:49)ilitie(cid:65)
Our debt is summari(cid:81)ed in the table below:
(In millions)
(cid:32)a(cid:60)(cid:67)(cid:52)a(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)
4.30(cid:4) due 2024
3.(cid:23)7(cid:20)(cid:4) due 202(cid:20)
4.00(cid:4) due 202(cid:21)
3.(cid:21)(cid:20)(cid:4) due 2027
3.37(cid:20)(cid:4) due 202(cid:23)
3.90(cid:4) due 2029
3.00(cid:4) due 2030
2.4(cid:20)(cid:4) due 2031
(cid:21).10(cid:4) due 2033
Other (weighted-average rate of 2.44(cid:4) and 2.20(cid:4), respectively)
Total Manufacturing group debt
Less: Current portion of long-term debt
Total Long-term debt
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)
Variable-rate note due 202(cid:20) (weighted-average rate of (cid:21).72(cid:4) and (cid:20).(cid:23)(cid:21)(cid:4), respectively)
Fixed-rate note due 2027 (4.40(cid:4))
Floating Rate Junior Subordinated Notes due 20(cid:21)7 (7.3(cid:23)(cid:4) and (cid:21).34(cid:4), respectively)
Other
Total Finance group debt
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
3(cid:20)0 (cid:3)
3(cid:20)0
3(cid:20)0
3(cid:20)0
300
300
(cid:21)(cid:20)0
(cid:20)00
3(cid:20)0
2(cid:21)
3,(cid:20)2(cid:21) (cid:3)
(3(cid:20)7)
3,1(cid:21)9 (cid:3)
2(cid:20) (cid:3)
(cid:20)0
2(cid:21)4
9
34(cid:23) (cid:3)
3(cid:20)0
3(cid:20)0
3(cid:20)0
3(cid:20)0
300
300
(cid:21)(cid:20)0
(cid:20)00
(cid:85)
32
3,1(cid:23)2
(7)
3,17(cid:20)
2(cid:20)
(cid:20)0
272
2(cid:23)
37(cid:20)
50 Textron 2023 Annual Report
(cid:20)0
The following table shows required principal payments during the next five years on debt outstanding at December 30, 2023:
(In millions)
Manufacturing group
Finance group
Total
(cid:3)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:13)
3(cid:20)7 (cid:3)
(cid:23)
3(cid:21)(cid:20) (cid:3)
(cid:11)(cid:9)(cid:11)(cid:14)
3(cid:20)(cid:21) (cid:3)
2(cid:21)
3(cid:23)2 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:15)
3(cid:20)(cid:20) (cid:3)
(cid:85)
3(cid:20)(cid:20) (cid:3)
(cid:11)(cid:9)(cid:11)(cid:16)
3(cid:20)(cid:20) (cid:3)
(cid:20)0
40(cid:20) (cid:3)
(cid:11)(cid:9)(cid:11)(cid:17)
303
(cid:85)
303
Textron has a senior unsecured revolving credit facility for an aggregate principal amount of (cid:3)1.0 billion, of which (cid:3)100 million is
available for the issuance of letters of credit. (cid:49)e may elect to increase the aggregate amount of commitments under the facility to
up to (cid:3)1.3 billion by designating an additional lender or by an existing lender agreeing to increase its commitment. The facility
expires in October 2027 and provides for two one-year extensions at our option with the consent of lenders representing a
ma(cid:65)ority of the commitments under the facility. At December 30, 2023 and December 31, 2022, there were no amounts borrowed
against the facility and there were (cid:3)9 million of outstanding letters of credit issued under the facility.
(cid:25)l(cid:61)ati(cid:60)(cid:53)(cid:1)(cid:37)ate(cid:1)(cid:29)(cid:67)(cid:60)i(cid:61)(cid:64)(cid:1)(cid:38)(cid:67)(cid:48)(cid:61)(cid:64)(cid:50)i(cid:60)ate(cid:50)(cid:1)N(cid:61)te(cid:65)
The Finance group(cid:88)s (cid:3)2(cid:21)4 million of Floating Rate Junior Subordinated Notes are unsecured and rank (cid:65)unior to all of its existing
and future senior debt. The notes mature on February 1(cid:20), 20(cid:21)7(cid:26) however, we have the right to redeem the notes at par at any time
and we are obligated to redeem the notes beginning on February 1(cid:20), 2042. In 2023 and 2022, TFC repurchased (cid:3)(cid:23) million and
(cid:3)17 million, respectively, of these notes. Interest is variable at the three-month CME Term Secured Overnight Financing
Rate (cid:10) 1.99(cid:21)(cid:21)1(cid:4).
(cid:38)(cid:67)(cid:62)(cid:62)(cid:61)(cid:64)t(cid:1)(cid:20)(cid:53)(cid:64)eeme(cid:60)t
(cid:47)nder a Support Agreement between Textron and TFC, Textron is required to maintain a controlling interest in TFC. The
agreement, as amended in December 201(cid:20), also requires Textron to ensure that TFC maintains fixed charge coverage of no less
than 12(cid:20)(cid:4) and consolidated shareholders(cid:6) equity of no less than (cid:3)12(cid:20) million. There were no cash contributions required to be
paid to TFC in 2023, 2022 and 2021 to maintain compliance with the support agreement.
N(cid:61)te(cid:1)(cid:10)(cid:9)(cid:8)(cid:1)(cid:23)e(cid:64)i(cid:68)ati(cid:68)e(cid:1)(cid:28)(cid:60)(cid:65)t(cid:64)(cid:67)me(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)ai(cid:64)(cid:1)(cid:41)al(cid:67)e(cid:1)(cid:32)ea(cid:65)(cid:67)(cid:64)eme(cid:60)t(cid:65)
(cid:49)e 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. (cid:49)e prioriti(cid:81)e 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 categori(cid:81)ed 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 pro(cid:65)ections, estimates
and management(cid:88)s interpretation of current market data. These unobservable inputs are utili(cid:81)ed only to the extent that observable
inputs are not available or cost effective to obtain.
(cid:20)(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)(cid:1)(cid:37)e(cid:49)(cid:61)(cid:64)(cid:50)e(cid:50)(cid:1)at(cid:1)(cid:25)ai(cid:64)(cid:1)(cid:41)al(cid:67)e(cid:1)(cid:61)(cid:60)(cid:1)a(cid:1)(cid:37)e(cid:49)(cid:67)(cid:64)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:21)a(cid:65)i(cid:65)
(cid:49)e 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. (cid:49)e primarily utili(cid:81)e 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 recogni(cid:81)ed 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 utili(cid:81)e 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(cid:26) however, they are not based on actual transactions, so they are classified as Level 2. At December 30, 2023 and
December 31, 2022, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of
(cid:3)47(cid:23) million and (cid:3)3(cid:20)4 million, respectively. At December 30, 2023, the fair value amounts of our foreign currency exchange
contracts were a (cid:3)4 million asset and a (cid:3)3 million liability. At December 31, 2022, the fair value amount of our foreign currency
exchange contracts was an (cid:3)11 million liability.
(cid:20)1
Textron 2023 Annual Report 51
Our Finance group enters into interest rate swap agreements to mitigate exposure to fluctuations in interest rates. By using these
contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow
hedges.
In 2023, we entered into interest rate swap agreements related to our Floating Rate Junior Subordinated Notes for an aggregate
notional amount of (cid:3)1(cid:23)(cid:20) million that effectively converts the variable-rate interest for these Notes to a weighted-average fixed
rate of (cid:20).17(cid:4)(cid:26) these agreements have maturities ranging from August 202(cid:20) to August 202(cid:23). At December 31, 2022, we had an
interest rate swap agreement related to these Notes with a notional amount of (cid:3)272 million that matured in August 2023. (cid:49)e also
entered into an interest rate swap agreement in May 2022 with a notional amount of (cid:3)2(cid:20) million that matures in June 202(cid:20) and
effectively converts variable-rate interest on a term loan to a fixed rate of 4.13(cid:4).
At December 30, 2023 and December 31, 2022, the fair value of our outstanding interest rate swap agreements was a (cid:3)4 million
asset and an (cid:3)(cid:23) million asset, respectively. The fair value of these interest rate swap agreements is determined using values
published by third-party leading financial news and data providers. These values are observable data that represent the value that
financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as
Level 2.
(cid:20)(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)(cid:1)N(cid:61)t(cid:1)(cid:37)e(cid:49)(cid:61)(cid:64)(cid:50)e(cid:50)(cid:1)at(cid:1)(cid:25)ai(cid:64)(cid:1)(cid:41)al(cid:67)e
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:
(In millions)
(cid:32)a(cid:60)(cid:67)(cid:52)a(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)
Debt, excluding leases
(cid:25)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:53)(cid:64)(cid:61)(cid:67)(cid:62)
Finance receivables, excluding leases
Debt
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:11)
(cid:22)a(cid:64)(cid:64)(cid:71)i(cid:60)(cid:53)
(cid:41)al(cid:67)e
(cid:24)(cid:65)timate(cid:50)
(cid:25)ai(cid:64)(cid:1)(cid:41)al(cid:67)e
(cid:22)a(cid:64)(cid:64)(cid:71)i(cid:60)(cid:53)
(cid:41)al(cid:67)e
(cid:24)(cid:65)timate(cid:50)
(cid:25)ai(cid:64)(cid:1)(cid:41)al(cid:67)e
(cid:3)
(3,(cid:20)20) (cid:3)
(3,342) (cid:3)
(3,17(cid:20)) (cid:3)
(2,(cid:23)72)
417
(34(cid:23))
423
(293)
390
(37(cid:20))
3(cid:21)9
(294)
Fair value for the Manufacturing group debt is determined using market observable data for similar transactions (Level 2). The
fair value for the Finance group debt was determined primarily based on discounted cash flow analyses using observable market
inputs from debt with similar duration, subordination and credit default expectations (Level 2). Fair value estimates for finance
receivables were determined based on internally developed discounted cash flow models primarily utili(cid:81)ing 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(cid:88) ability to make payments on a timely basis.
N(cid:61)te(cid:1)(cid:10)(cid:10)(cid:8)(cid:1)(cid:38)(cid:54)a(cid:64)e(cid:54)(cid:61)l(cid:50)e(cid:64)(cid:65)(cid:74)(cid:1)(cid:24)(cid:63)(cid:67)it(cid:71)
(cid:22)a(cid:62)ital(cid:1)(cid:38)t(cid:61)(cid:49)(cid:57)
(cid:49)e have authori(cid:81)ation for 1(cid:20) million shares of preferred stock with a par value of (cid:3)0.01 and (cid:20)00 million shares of common stock
with a par value of (cid:3)0.12(cid:20). Outstanding common stock activity is presented below:
(In (cid:59)(cid:47)o(cid:60)s(cid:40)n(cid:43)s)
Balance at beginning of year
Share repurchases
Share-based compensation activity
Balance at end of year
(cid:11)(cid:9)(cid:11)(cid:12)
20(cid:21),1(cid:21)1
(1(cid:21),1(cid:21)9)
2,90(cid:21)
192,(cid:23)9(cid:23)
(cid:11)(cid:9)(cid:11)(cid:11)
21(cid:21),93(cid:20)
(13,07(cid:20))
2,301
20(cid:21),1(cid:21)1
(cid:11)(cid:9)(cid:11)(cid:10)
22(cid:21),444
(13,(cid:20)33)
4,024
21(cid:21),93(cid:20)
(cid:24)a(cid:64)(cid:60)i(cid:60)(cid:53)(cid:65)(cid:1)(cid:35)e(cid:64)(cid:1)(cid:38)(cid:54)a(cid:64)e
(cid:49)e 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.
52 Textron 2023 Annual Report
(cid:20)2
The weighted-average shares outstanding for basic and diluted EPS are as follows:
(In (cid:59)(cid:47)o(cid:60)s(cid:40)n(cid:43)s)
Basic weighted-average shares outstanding
Dilutive effect of stock options
Diluted weighted-average shares outstanding
(cid:11)(cid:9)(cid:11)(cid:12)
199,719
2,0(cid:20)(cid:20)
201,774
(cid:11)(cid:9)(cid:11)(cid:11)
212,(cid:23)09
2,1(cid:21)4
214,973
(cid:11)(cid:9)(cid:11)(cid:10)
224,10(cid:21)
2,414
22(cid:21),(cid:20)20
In 2023, 2022 and 2021, stock options to purchase 1.(cid:20) million, 1.0 million and 1.1 million shares, respectively, of common stock
were excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive.
(cid:20)(cid:49)(cid:49)(cid:67)m(cid:67)late(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:22)(cid:61)m(cid:62)(cid:64)e(cid:54)e(cid:60)(cid:65)i(cid:68)e(cid:1)(cid:31)(cid:61)(cid:65)(cid:65)
The components of Accumulated other comprehensive loss are presented below:
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)
(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t
(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:20)(cid:50)(cid:56)(cid:67)(cid:65)tme(cid:60)t(cid:65)
(cid:25)(cid:61)(cid:64)ei(cid:53)(cid:60)
(cid:22)(cid:67)(cid:64)(cid:64)e(cid:60)(cid:49)(cid:71)
T(cid:64)a(cid:60)(cid:65)lati(cid:61)(cid:60)
(cid:20)(cid:50)(cid:56)(cid:67)(cid:65)tme(cid:60)t(cid:65)
(cid:23)e(cid:52)e(cid:64)(cid:64)e(cid:50)
(cid:26)ai(cid:60)(cid:65)(cid:1)(cid:3)(cid:31)(cid:61)(cid:65)(cid:65)e(cid:65)(cid:4)
(cid:61)(cid:60)(cid:1)(cid:27)e(cid:50)(cid:53)e
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:65)
(In millions)
Balance at January 1, 2022
Other comprehensive income before reclassifications
Reclassified from Accumulated other comprehensive loss
Balance at December 31, 2022
Other comprehensive loss before reclassifications
Reclassified from Accumulated other comprehensive loss
Balance at December 30, 2023
(cid:3)
(cid:3)
(cid:3)
(799) (cid:3)
214
(cid:21)9
((cid:20)1(cid:21)) (cid:3)
((cid:23)2)
(cid:85)
((cid:20)9(cid:23)) (cid:3)
9 (cid:3)
(103)
(cid:85)
(94) (cid:3)
4(cid:20)
(cid:85)
(49) (cid:3)
(cid:20)(cid:49)(cid:49)(cid:67)m(cid:67)late(cid:50)
(cid:34)t(cid:54)e(cid:64)
(cid:22)(cid:61)m(cid:62)(cid:64)e(cid:54)e(cid:60)(cid:65)i(cid:68)e
(cid:31)(cid:61)(cid:65)(cid:65)
(7(cid:23)9)
10(cid:23)
(cid:21)9
((cid:21)12)
(3(cid:23))
(cid:21)
((cid:21)44)
1 (cid:3)
(3)
(cid:85)
(2) (cid:3)
(1)
(cid:21)
3 (cid:3)
(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:22)(cid:61)m(cid:62)(cid:64)e(cid:54)e(cid:60)(cid:65)i(cid:68)e(cid:1)(cid:28)(cid:60)(cid:49)(cid:61)me(cid:1)(cid:3)(cid:31)(cid:61)(cid:65)(cid:65)(cid:4)
The before and after-tax components of other comprehensive income (loss) are presented below:
(In millions)
Pension and postretirement benefits
ad(cid:65)ustments:
(cid:47)nreali(cid:81)ed gains (losses)
Amorti(cid:81)ation of net actuarial (gain) loss*
Amorti(cid:81)ation of prior service cost*
Recognition of prior service cost
Pension and postretirement benefits
ad(cid:65)ustments, net
Foreign currency translation ad(cid:65)ustments:
Foreign currency translation ad(cid:65)ustments
Business disposition
Foreign currency translation ad(cid:65)ustments, net
Deferred gains (losses) on hedge contracts:
Current deferrals
Reclassification ad(cid:65)ustments
Deferred gains (losses) on hedge
contracts, net
Total
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:35)(cid:64)e(cid:7)Ta(cid:70)
(cid:20)m(cid:61)(cid:67)(cid:60)t
Ta(cid:70)
(cid:3)(cid:24)(cid:70)(cid:62)e(cid:60)(cid:65)e(cid:4)
(cid:21)e(cid:60)e(cid:52)it
(cid:20)(cid:52)te(cid:64)(cid:7)
Ta(cid:70)
(cid:20)m(cid:61)(cid:67)(cid:60)t
(cid:35)(cid:64)e(cid:7)Ta(cid:70)
(cid:20)m(cid:61)(cid:67)(cid:60)t
Ta(cid:70)
(cid:3)(cid:24)(cid:70)(cid:62)e(cid:60)(cid:65)e(cid:4)
(cid:21)e(cid:60)e(cid:52)it
(cid:20)(cid:52)te(cid:64)(cid:7)
Ta(cid:70)
(cid:20)m(cid:61)(cid:67)(cid:60)t
(cid:35)(cid:64)e(cid:7)Ta(cid:70)
(cid:20)m(cid:61)(cid:67)(cid:60)t
Ta(cid:70)
(cid:3)(cid:24)(cid:70)(cid:62)e(cid:60)(cid:65)e(cid:4)
(cid:21)e(cid:60)e(cid:52)it
(cid:20)(cid:52)te(cid:64)(cid:7)
Ta(cid:70)
(cid:20)m(cid:61)(cid:67)(cid:60)t
(cid:3) (102) (cid:3)
(7)
(cid:23)
(7)
(10(cid:23))
4(cid:20)
(cid:85)
4(cid:20)
(2)
(cid:23)
2(cid:20) (cid:3)
2
(3)
2
(77) (cid:3) 2(cid:23)(cid:20) (cid:3)
((cid:20))
(cid:20)
((cid:20))
(cid:23)3
(cid:23)
(4)
((cid:21)7) (cid:3) 21(cid:23) (cid:3) 1,14(cid:23) (cid:3) (271) (cid:3) (cid:23)77
11(cid:21)
1(cid:20)0
(20)
4
(2)
7
(1(cid:21))
(cid:85)
(34)
(3)
4
(cid:21)3
(cid:21)
(4)
(20)
2(cid:21)
(cid:85)
(cid:85)
(cid:85)
1
(2)
((cid:23)2)
372
((cid:23)9)
2(cid:23)3
1,2(cid:23)(cid:20)
(304)
9(cid:23)1
4(cid:20)
(cid:85)
4(cid:20)
(1)
(cid:21)
(103)
(cid:85)
(103)
(cid:85) (cid:85) (cid:85)
(103)
(cid:85)
(103)
((cid:20)1)
(cid:85)
14 (cid:85)
(cid:85)
(37)
(7)
4
(cid:85) (cid:85)
(3)
(cid:85)
3
(1)
(cid:85)
(cid:85)
((cid:20)1)
14
(37)
3
(1)
(cid:21)
((cid:20)7) (cid:3)
(cid:3)
(1)
2(cid:20) (cid:3)
(cid:20)
(7)
(32) (cid:3) 2(cid:21)2 (cid:3)
4
2
2
((cid:23)(cid:20)) (cid:3) 177 (cid:3) 1,2(cid:20)0 (cid:3) (304) (cid:3) 94(cid:21)
(3)
(cid:85)
(cid:5) (cid:37)(cid:47)(cid:44)s(cid:44) (cid:42)om(cid:55)on(cid:44)n(cid:59)s o(cid:45) o(cid:59)(cid:47)(cid:44)(cid:57) (cid:42)om(cid:55)(cid:57)(cid:44)(cid:47)(cid:44)nsi(cid:61)(cid:44) in(cid:42)om(cid:44) (loss) (cid:40)(cid:57)(cid:44) in(cid:42)l(cid:60)(cid:43)(cid:44)(cid:43) in (cid:59)(cid:47)(cid:44) (cid:42)om(cid:55)(cid:60)(cid:59)(cid:40)(cid:59)ion o(cid:45) n(cid:44)(cid:59) (cid:55)(cid:44)(cid:57)io(cid:43)i(cid:42) (cid:55)(cid:44)nsion (cid:42)os(cid:59)(cid:8) (cid:36)(cid:44)(cid:44) (cid:31)o(cid:59)(cid:44) (cid:11)(cid:15) (cid:45)o(cid:57) (cid:40)(cid:43)(cid:43)i(cid:59)ion(cid:40)l in(cid:45)o(cid:57)m(cid:40)(cid:59)ion(cid:8)
(cid:20)3
Textron 2023 Annual Report 53
N(cid:61)te(cid:1)(cid:10)(cid:11)(cid:8)(cid:1)(cid:38)e(cid:53)me(cid:60)t(cid:1)a(cid:60)(cid:50)(cid:1)(cid:26)e(cid:61)(cid:53)(cid:64)a(cid:62)(cid:54)i(cid:49)(cid:1)(cid:23)ata
(cid:49)e operate in, and report financial information for, the following six operating segments: Textron Aviation, Bell, Textron
Systems, Industrial, Textron eAviation and Finance. The accounting policies of the segments are the same as those described in
Note 1.
Textron Aviation products include Cessna Citation (cid:65)ets, Beechcraft King Air and Cessna Caravan turboprop aircraft, military
trainer and defense aircraft, piston engine aircraft, and aftermarket part sales and services sold to a diverse customer base
including fractional aircraft businesses, charter and fleet operators, corporate aviation, individual buyers, training schools, airlines,
and special mission, military and government operators.
Bell products include military and commercial helicopters, tiltrotor aircraft and related spare parts and services. Bell supplies
advanced military helicopters, tiltrotor aircraft, and aftermarket services to the (cid:47).S. and non-(cid:47).S. governments. Bell also supplies
commercial helicopters and aftermarket services to corporate, private, law enforcement, utility, public safety and emergency
medical helicopter operators, and (cid:47).S. and foreign governments.
Textron Systems products and services include electronic systems and solutions, advanced marine craft, piston aircraft engines,
live military air-to-air and air-to-ship training, weapons and related components, unmanned aircraft systems, and both manned and
unmanned armored and specialty vehicles for (cid:47).S. and international military, government and commercial customers.
Industrial products and markets include the following:
• Kautex products include blow-molded plastic fuel systems, including conventional plastic fuel tanks and pressuri(cid:81)ed fuel
tanks for hybrid vehicle applications, clear-vision systems, plastic tanks for selective catalytic reduction systems and
battery systems for use in electric vehicles, from hybrid to full battery-powered, that are sold to automobile OEMs(cid:26) and
Speciali(cid:81)ed Vehicles products include golf cars, off-road utility vehicles, powersports products, light transportation
vehicles, aviation ground support equipment, professional turf-maintenance equipment and speciali(cid:81)ed turf-care vehicles
that are marketed primarily to golf courses and resorts, government agencies and municipalities, consumers, outdoor
enthusiasts, and commercial and industrial users.
(cid:83)
The Textron eAviation segment manufactures a family of light aircraft and gliders with both electric and combustion engines, and
also performs other research and development initiatives related to sustainable aviation solutions.
The Finance segment provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell
helicopters.
Segment profit is an important measure used for evaluating performance and for decision-making purposes. Beginning in 2023,
we changed how we measure our segment profit for the manufacturing segments to exclude the non-service components of
pension and postretirement income, net(cid:26) LIFO inventory provision(cid:26) and intangible asset amorti(cid:81)ation. This measure also continues
to exclude interest expense, net for Manufacturing group(cid:26) certain corporate expenses(cid:26) gains/losses on ma(cid:65)or business dispositions(cid:26)
and special charges. The prior periods have been recast to conform to this presentation. The measurement for the Finance segment
includes interest income and expense along with intercompany interest income and expense.
54 Textron 2023 Annual Report
(cid:20)4
Our revenues by segment, along with a reconciliation of segment profit to income from continuing operations before income
taxes, are as follows:
(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
(cid:38)e(cid:53)me(cid:60)t(cid:1)(cid:35)(cid:64)(cid:61)(cid:52)it(cid:1)(cid:3)(cid:31)(cid:61)(cid:65)(cid:65)(cid:4)
(In millions)
Textron Aviation
Bell
Textron Systems
Industrial
Textron eAviation
Finance
Total
Corporate expenses and other, net
Interest expense, net for Manufacturing group
LIFO inventory provision
Intangible asset amorti(cid:81)ation
Special charges*
Non-service components of pension and
postretirement income, net
Gain on business disposition
Income from continuing operations before income taxes
(cid:5) (cid:36)(cid:44)(cid:44) (cid:31)o(cid:59)(cid:44) (cid:11)(cid:16) (cid:45)o(cid:57) (cid:40)(cid:43)(cid:43)i(cid:59)ion(cid:40)l in(cid:45)o(cid:57)m(cid:40)(cid:59)ion(cid:8)
Other information by segment is provided below:
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:20),373 (cid:3)
3,147
1,23(cid:20)
3,(cid:23)41
32
(cid:20)(cid:20)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:20),073 (cid:3)
3,091
1,172
3,4(cid:21)(cid:20)
1(cid:21)
(cid:20)2
(cid:11)(cid:9)(cid:11)(cid:10)
4,(cid:20)(cid:21)(cid:21) (cid:3)
3,3(cid:21)4
1,273
3,130
(cid:85)
49
(cid:3) 13,(cid:21)(cid:23)3 (cid:3) 12,(cid:23)(cid:21)9 (cid:3) 12,3(cid:23)2 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:21)49 (cid:3)
320
147
22(cid:23)
((cid:21)3)
4(cid:21)
1,327 (cid:3)
(143)
((cid:21)2)
(107)
(39)
(12(cid:21))
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:20)(cid:21)0 (cid:3)
2(cid:23)2
132
1(cid:20)(cid:20)
(24)
31
1,13(cid:21) (cid:3)
(143)
(94)
(71)
((cid:20)2)
(cid:85)
(cid:11)(cid:9)(cid:11)(cid:10)
349
399
17(cid:23)
120
(cid:85)
1(cid:23)
1,0(cid:21)4
(1(cid:20)0)
(124)
(17)
((cid:20)1)
(2(cid:20))
237
(cid:85)
1,0(cid:23)7 (cid:3)
240
(cid:85)
1,01(cid:21) (cid:3)
(cid:3)
1(cid:20)9
17
(cid:23)73
(cid:20)(cid:65)(cid:65)et(cid:65)
(cid:22)a(cid:62)ital(cid:1)(cid:24)(cid:70)(cid:62)e(cid:60)(cid:50)it(cid:67)(cid:64)e(cid:65)
(cid:23)e(cid:62)(cid:64)e(cid:49)iati(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:20)m(cid:61)(cid:64)ti(cid:72)ati(cid:61)(cid:60)
(In millions)
Textron Aviation
Bell
Textron Systems
Industrial
Textron eAviation
Finance
Corporate
Total
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
4,(cid:20)42 (cid:3)
2,(cid:23)(cid:21)9
2,00(cid:23)
2,(cid:20)20
2(cid:23)7
(cid:21)(cid:21)1
3,9(cid:21)9
1(cid:21),(cid:23)(cid:20)(cid:21) (cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
4,49(cid:21) (cid:3)
2,(cid:23)(cid:20)7
1,9(cid:23)9
2,(cid:20)(cid:20)(cid:20)
27(cid:23)
(cid:21)(cid:21)4
3,4(cid:20)4
1(cid:21),293 (cid:3)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
13(cid:23) (cid:3)
119
4(cid:23)
91
4
(cid:85)
2
402 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:11)
13(cid:23) (cid:3)
(cid:23)0
(cid:20)7
7(cid:23)
1
(cid:85)
(cid:85)
3(cid:20)4 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:10)
11(cid:20) (cid:3)
92
(cid:23)0
(cid:23)2
(cid:85)
(cid:85)
(cid:21)
37(cid:20) (cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
1(cid:21)0 (cid:3)
(cid:23)9
41
(cid:23)9
7
(cid:85)
9
39(cid:20) (cid:3)
(cid:11)(cid:9)(cid:11)(cid:11)
1(cid:20)2 (cid:3)
90
49
93
2
1
10
397 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:10)
139
(cid:23)7
4(cid:20)
99
(cid:85)
10
10
390
(cid:26)e(cid:61)(cid:53)(cid:64)a(cid:62)(cid:54)i(cid:49)(cid:1)(cid:23)ata
Presented below is selected financial information by geographic area:
(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)(cid:5)
(cid:35)(cid:64)(cid:61)(cid:62)e(cid:64)t(cid:71)(cid:6)(cid:1)(cid:35)la(cid:60)t
a(cid:60)(cid:50)(cid:1)(cid:24)(cid:63)(cid:67)i(cid:62)me(cid:60)t(cid:6)(cid:1)(cid:60)et(cid:5)(cid:5)
(In millions)
(cid:47)nited States
Europe
Other international
Total
(cid:5) (cid:35)(cid:44)(cid:61)(cid:44)n(cid:60)(cid:44)s (cid:40)(cid:57)(cid:44) (cid:40)(cid:59)(cid:59)(cid:57)i(cid:41)(cid:60)(cid:59)(cid:44)(cid:43) (cid:59)o (cid:42)o(cid:60)n(cid:59)(cid:57)i(cid:44)s (cid:41)(cid:40)s(cid:44)(cid:43) on (cid:59)(cid:47)(cid:44) lo(cid:42)(cid:40)(cid:59)ion o(cid:45) (cid:59)(cid:47)(cid:44) (cid:42)(cid:60)s(cid:59)om(cid:44)(cid:57)(cid:8)
(cid:5)(cid:5) (cid:33)(cid:57)o(cid:55)(cid:44)(cid:57)(cid:59)(cid:64)(cid:6) (cid:55)l(cid:40)n(cid:59) (cid:40)n(cid:43) (cid:44)(cid:56)(cid:60)i(cid:55)m(cid:44)n(cid:59)(cid:6) n(cid:44)(cid:59) is (cid:41)(cid:40)s(cid:44)(cid:43) on (cid:59)(cid:47)(cid:44) lo(cid:42)(cid:40)(cid:59)ion o(cid:45) (cid:59)(cid:47)(cid:44) (cid:40)ss(cid:44)(cid:59)(cid:8)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
9,30(cid:20) (cid:3)
1,414
2,9(cid:21)4
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:23),702 (cid:3)
1,4(cid:21)(cid:23)
2,(cid:21)99
(cid:3) 13,(cid:21)(cid:23)3 (cid:3) 12,(cid:23)(cid:21)9 (cid:3) 12,3(cid:23)2 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:23),(cid:20)72 (cid:3)
1,3(cid:21)9
2,441
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
2,104 (cid:3)
1(cid:23)2
191
2,477 (cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
2,137
1(cid:23)(cid:23)
19(cid:23)
2,(cid:20)23
(cid:20)(cid:20)
Textron 2023 Annual Report 55
N(cid:61)te(cid:1)(cid:10)(cid:12)(cid:8)(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
(cid:23)i(cid:65)a(cid:53)(cid:53)(cid:64)e(cid:53)ati(cid:61)(cid:60)(cid:1)(cid:61)(cid:52)(cid:1)(cid:37)e(cid:68)e(cid:60)(cid:67)e(cid:65)
Our revenues disaggregated by ma(cid:65)or product type are presented below:
(In millions)
Aircraft
Aftermarket parts and services
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:20)(cid:68)iati(cid:61)(cid:60)
Military aircraft and support programs
Commercial helicopters, parts and services
(cid:21)ell
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)(cid:38)(cid:71)(cid:65)tem(cid:65)
Fuel systems and functional components
Speciali(cid:81)ed vehicles
(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)ial
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)e(cid:20)(cid:68)iati(cid:61)(cid:60)
(cid:25)i(cid:60)a(cid:60)(cid:49)e
Total revenues
(cid:11)(cid:9)(cid:11)(cid:12)
3,(cid:20)77 (cid:3)
1,79(cid:21)
(cid:20),373 (cid:3)
1,701
1,44(cid:21)
3,147 (cid:3)
1,23(cid:20) (cid:3)
1,9(cid:20)4
1,(cid:23)(cid:23)7
3,(cid:23)41 (cid:3)
32 (cid:3)
(cid:20)(cid:20) (cid:3)
13,(cid:21)(cid:23)3 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:11)
3,3(cid:23)7 (cid:3)
1,(cid:21)(cid:23)(cid:21)
(cid:20),073 (cid:3)
1,740
1,3(cid:20)1
3,091 (cid:3)
1,172 (cid:3)
1,771
1,(cid:21)94
3,4(cid:21)(cid:20) (cid:3)
1(cid:21) (cid:3)
(cid:20)2 (cid:3)
12,(cid:23)(cid:21)9 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:10)
3,11(cid:21)
1,4(cid:20)0
4,(cid:20)(cid:21)(cid:21)
2,073
1,291
3,3(cid:21)4
1,273
1,73(cid:20)
1,39(cid:20)
3,130
(cid:85)
49
12,3(cid:23)2
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
Our revenues for our segments by customer type and geographic location are presented below:
Te(cid:70)t(cid:64)(cid:61)(cid:60)
(cid:20)(cid:68)iati(cid:61)(cid:60)
(cid:21)ell
Te(cid:70)t(cid:64)(cid:61)(cid:60)
(cid:38)(cid:71)(cid:65)tem(cid:65)
(cid:28)(cid:60)(cid:50)(cid:67)(cid:65)t(cid:64)ial
Te(cid:70)t(cid:64)(cid:61)(cid:60)(cid:1)
e(cid:20)(cid:68)iati(cid:61)(cid:60)
(cid:25)i(cid:60)a(cid:60)(cid:49)e
T(cid:61)tal
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:20),1(cid:20)(cid:20) (cid:3)
21(cid:23)
(cid:20),373 (cid:3)
3,(cid:23)73 (cid:3)
432
1,0(cid:21)(cid:23)
(cid:20),373 (cid:3)
4,9(cid:20)9 (cid:3)
114
(cid:20),073 (cid:3)
3,(cid:20)20 (cid:3)
(cid:20)79
974
(cid:20),073 (cid:3)
4,43(cid:20) (cid:3)
131
4,(cid:20)(cid:21)(cid:21) (cid:3)
3,424 (cid:3)
39(cid:21)
74(cid:21)
4,(cid:20)(cid:21)(cid:21) (cid:3)
1,407 (cid:3)
1,740
3,147 (cid:3)
2,22(cid:23) (cid:3)
149
770
3,147 (cid:3)
1,2(cid:23)4 (cid:3)
1,(cid:23)07
3,091 (cid:3)
2,242 (cid:3)
139
710
3,091 (cid:3)
1,32(cid:23) (cid:3)
2,03(cid:21)
3,3(cid:21)4 (cid:3)
2,42(cid:20) (cid:3)
171
7(cid:21)(cid:23)
3,3(cid:21)4 (cid:3)
2(cid:23)2 (cid:3)
9(cid:20)3
1,23(cid:20) (cid:3)
1,103 (cid:3)
(cid:20)4
7(cid:23)
1,23(cid:20) (cid:3)
274 (cid:3)
(cid:23)9(cid:23)
1,172 (cid:3)
1,0(cid:20)4 (cid:3)
42
7(cid:21)
1,172 (cid:3)
2(cid:20)7 (cid:3)
1,01(cid:21)
1,273 (cid:3)
1,12(cid:21) (cid:3)
44
103
1,273 (cid:3)
3,(cid:23)19 (cid:3)
22
3,(cid:23)41 (cid:3)
2,0(cid:21)7 (cid:3)
7(cid:21)(cid:21)
1,00(cid:23)
3,(cid:23)41 (cid:3)
3,4(cid:20)0 (cid:3)
1(cid:20)
3,4(cid:21)(cid:20) (cid:3)
1,(cid:23)(cid:21)2 (cid:3)
(cid:21)99
904
3,4(cid:21)(cid:20) (cid:3)
3,113 (cid:3)
17
3,130 (cid:3)
1,(cid:20)70 (cid:3)
7(cid:20)7
(cid:23)03
3,130 (cid:3)
32 (cid:3)
(cid:85)
32 (cid:3)
17 (cid:3)
11
4
32 (cid:3)
1(cid:21) (cid:3)
(cid:85)
1(cid:21) (cid:3)
7 (cid:3)
(cid:21)
3
1(cid:21) (cid:3)
(cid:85) (cid:3)
(cid:85)
(cid:85) (cid:3)
(cid:85) (cid:3)
(cid:85)
(cid:85)
(cid:85) (cid:3)
(cid:20)(cid:20) (cid:3)
(cid:85)
(cid:20)(cid:20) (cid:3)
17 (cid:3)
2
3(cid:21)
(cid:20)(cid:20) (cid:3)
(cid:20)2 (cid:3)
(cid:85)
(cid:20)2 (cid:3)
17 (cid:3)
3
32
(cid:20)2 (cid:3)
49 (cid:3)
(cid:85)
49 (cid:3)
27 (cid:3)
1
21
49 (cid:3)
10,7(cid:20)0
2,933
13,(cid:21)(cid:23)3
9,30(cid:20)
1,414
2,9(cid:21)4
13,(cid:21)(cid:23)3
10,03(cid:20)
2,(cid:23)34
12,(cid:23)(cid:21)9
(cid:23),702
1,4(cid:21)(cid:23)
2,(cid:21)99
12,(cid:23)(cid:21)9
9,1(cid:23)2
3,200
12,3(cid:23)2
(cid:23),(cid:20)72
1,3(cid:21)9
2,441
12,3(cid:23)2
(In millions)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:22)(cid:67)(cid:65)t(cid:61)me(cid:64)(cid:1)t(cid:71)(cid:62)e(cid:19)
Commercial
(cid:47).S. Government
Total revenues
(cid:26)e(cid:61)(cid:53)(cid:64)a(cid:62)(cid:54)i(cid:49)(cid:1)l(cid:61)(cid:49)ati(cid:61)(cid:60)(cid:19)
(cid:47)nited States
Europe
Other international
Total revenues
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:22)(cid:67)(cid:65)t(cid:61)me(cid:64)(cid:1)t(cid:71)(cid:62)e(cid:19)
Commercial
(cid:47).S. Government
Total revenues
(cid:26)e(cid:61)(cid:53)(cid:64)a(cid:62)(cid:54)i(cid:49)(cid:1)l(cid:61)(cid:49)ati(cid:61)(cid:60)(cid:19)
(cid:47)nited States
Europe
Other international
Total revenues
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:22)(cid:67)(cid:65)t(cid:61)me(cid:64)(cid:1)t(cid:71)(cid:62)e(cid:19)
Commercial
(cid:47).S. Government
Total revenues
(cid:26)e(cid:61)(cid:53)(cid:64)a(cid:62)(cid:54)i(cid:49)(cid:1)l(cid:61)(cid:49)ati(cid:61)(cid:60)(cid:19)
(cid:47)nited States
Europe
Other international
Total revenues
56 Textron 2023 Annual Report
(cid:20)(cid:21)
(cid:37)emai(cid:60)i(cid:60)(cid:53)(cid:1)(cid:35)e(cid:64)(cid:52)(cid:61)(cid:64)ma(cid:60)(cid:49)e(cid:1)(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)
Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated
to our contracts that we expect to recogni(cid:81)e as revenue in future periods when we perform under the contracts. These remaining
obligations exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery,
Indefinite (cid:43)uantity contracts. At December 30, 2023, we had (cid:3)13.9 billion in remaining performance obligations of which we
expect to recogni(cid:81)e revenues of approximately (cid:23)(cid:21)(cid:4) through 202(cid:20), an additional 12(cid:4) through 2027, and the balance thereafter.
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:31)ia(cid:48)ilitie(cid:65)
Assets and liabilities related to our contracts with customers are reported on a contract-by-contract basis at the end of each
reporting period. At December 30, 2023 and December 31, 2022, contract assets totaled (cid:3)(cid:20)13 million and (cid:3)(cid:21)(cid:23)0 million,
respectively, and contract liabilities totaled (cid:3)1.(cid:23) billion and (cid:3)1.(cid:20) billion, respectively, reflecting timing differences between
revenues recogni(cid:81)ed, billings and payments from customers. During 2023, 2022 and 2021, we recogni(cid:81)ed revenues of (cid:3)9(cid:20)3
million, (cid:3)(cid:23)73 million and (cid:3)(cid:21)00 million, respectively, that were included in the contract liability balance at the beginning of each
year.
N(cid:61)te(cid:1)(cid:10)(cid:13)(cid:8)(cid:1)(cid:38)(cid:54)a(cid:64)e(cid:7)(cid:21)a(cid:65)e(cid:50)(cid:1)(cid:22)(cid:61)m(cid:62)e(cid:60)(cid:65)ati(cid:61)(cid:60)
(cid:47)nder our 201(cid:20) Long-Term Incentive Plan (Plan), which replaced our 2007 Long-Term Incentive Plan in April 201(cid:20), we have
authori(cid:81)ation to provide awards to selected employees and non-employee directors in the form of stock options, restricted stock,
restricted stock units, stock appreciation rights, performance stock, performance share units and other awards. A maximum of 17
million shares is authori(cid:81)ed for issuance for all purposes under the Plan plus any shares that become available upon cancellation,
forfeiture or expiration of awards granted under the 2007 Long-Term Incentive Plan. No more than 17 million shares may be
awarded pursuant to incentive stock options, and no more than 4.2(cid:20) million shares may be issued pursuant to awards of restricted
stock, restricted stock units, performance stock, performance share units or other awards that are payable in shares. For 2023,
2022 and 2021, the awards granted under this Plan primarily included stock options, restricted stock units and performance share
units.
Share-based compensation costs are reflected primarily in selling and administrative expense. Compensation expense included in
net income for our share-based compensation plans is as follows:
(In millions)
Compensation expense
Income tax benefit
Total compensation expense included in net income
(cid:3)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
94 (cid:3)
(23)
71 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:21)(cid:21) (cid:3)
(1(cid:21))
(cid:20)0 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:10)
13(cid:23)
(33)
10(cid:20)
Compensation cost for awards sub(cid:65)ect only to service conditions that vest ratably is recogni(cid:81)ed on a straight-line basis over the
requisite service period for each separately vesting portion of the award utili(cid:81)ing an estimated forfeiture rate. Our awards include
continued vesting provisions for retirement eligible employees. (cid:47)pon reaching retirement eligibility, the service requirement for
these individuals is considered to have been satisfied and compensation expense for future awards is recogni(cid:81)ed on the date of the
grant.
As of December 30, 2023, we had not recogni(cid:81)ed (cid:3)2(cid:20) million of total compensation costs associated with unvested awards sub(cid:65)ect
only to service conditions. (cid:49)e expect to recogni(cid:81)e compensation expense for these awards over a weighted-average period of
approximately two years. (cid:49)e typically grant stock appreciation rights to selected non-(cid:47).S. employees. At December 30, 2023,
outstanding stock appreciation rights totaled 491,331 with a weighted-average exercise price of (cid:3)(cid:20)(cid:21).09 and a weighted-average
remaining contractual life of (cid:20).9 years(cid:26) these units had an intrinsic value of (cid:3)12 million, compared to (cid:3)11 million at December 31,
2022.
(cid:38)t(cid:61)(cid:49)(cid:57)(cid:1)(cid:34)(cid:62)ti(cid:61)(cid:60)(cid:65)
Stock option compensation expense was (cid:3)23 million, (cid:3)22 million and (cid:3)21 million in 2023, 2022 and 2021, respectively. Options
to purchase our shares have a maximum term of ten years and generally vest ratably over a three-year period. Stock option
compensation cost is calculated under the fair value approach using the Black-Scholes option-pricing model to determine the fair
value of options granted on the date of grant. The expected volatility used in this model is based on historical volatilities and
implied volatilities from traded options on our common stock. The expected term is based on historical option exercise data,
which is ad(cid:65)usted to reflect any anticipated changes in expected behavior.
(cid:20)7
Textron 2023 Annual Report 57
(cid:49)e grant options annually on the first day of March. The assumptions used in our option-pricing model for these grants and the
weighted-average fair value for these options are as follows:
Fair value of options at grant date
Dividend yield
Expected volatility
Risk-free interest rate
Expected term (in years)
The stock option activity during 2023 is provided below:
((cid:32)(cid:55)(cid:59)ions in (cid:59)(cid:47)o(cid:60)s(cid:40)n(cid:43)s)
Outstanding at beginning of year
Granted
Exercised
Forfeited or expired
Outstanding at end of year
Exercisable at end of year
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
23.(cid:23)3 (cid:3)
0.1 (cid:4)
29.4 (cid:4)
4.2 (cid:4)
4.(cid:23)
(cid:11)(cid:9)(cid:11)(cid:11)
19.9(cid:20) (cid:3)
0.1 (cid:4)
29.2 (cid:4)
1.9 (cid:4)
4.(cid:23)
(cid:11)(cid:9)(cid:11)(cid:10)
1(cid:20).0(cid:20)
0.2 (cid:4)
33.(cid:21) (cid:4)
0.7 (cid:4)
4.7
N(cid:67)m(cid:48)e(cid:64)(cid:1)(cid:61)(cid:52)
(cid:34)(cid:62)ti(cid:61)(cid:60)(cid:65)
(cid:23),310 (cid:3)
1,02(cid:21)
(1,(cid:21)(cid:20)9)
(1(cid:21)2)
7,(cid:20)1(cid:20) (cid:3)
(cid:20),347 (cid:3)
(cid:42)ei(cid:53)(cid:54)te(cid:50)(cid:7)
(cid:20)(cid:68)e(cid:64)a(cid:53)e
(cid:24)(cid:70)e(cid:64)(cid:49)i(cid:65)e(cid:1)(cid:35)(cid:64)i(cid:49)e
(cid:20)0.2(cid:20)
73.19
(4(cid:20).14)
((cid:21)2.11)
(cid:20)4.2(cid:20)
4(cid:23).(cid:23)(cid:20)
At December 30, 2023, our outstanding options had an aggregate intrinsic value of (cid:3)197 million and a weighted-average
remaining contractual life of (cid:20).(cid:20) years. Our exercisable options had an aggregate intrinsic value of (cid:3)1(cid:21)9 million and a weighted-
average remaining contractual life of 4.(cid:20) years at December 30, 2023. The total intrinsic value of options exercised during 2023,
2022 and 2021 was (cid:3)(cid:20)0 million, (cid:3)32 million and (cid:3)(cid:21)3 million, respectively.
(cid:37)e(cid:65)t(cid:64)i(cid:49)te(cid:50)(cid:1)(cid:38)t(cid:61)(cid:49)(cid:57)(cid:1)(cid:40)(cid:60)it(cid:65)
(cid:49)e issue restricted stock units that include the right to receive dividend equivalents and are settled in either cash or stock.
Beginning in 2020, new grants of restricted stock units vest in full on the third anniversary of the grant date. Restricted stock
units granted prior to 2020 vest one-third each in the third, fourth and fifth year following the year of the grant. Compensation
cost is determined using the fair value of these units based on the trading price of our common stock. For units payable in stock,
we use the trading price on the grant date, while units payable in cash are remeasured using the price at each reporting period date.
The 2023 activity for restricted stock units is provided below:
(cid:40)(cid:60)it(cid:65)(cid:1)(cid:35)a(cid:71)a(cid:48)le(cid:1)i(cid:60)(cid:1)(cid:38)t(cid:61)(cid:49)(cid:57)
(cid:40)(cid:60)it(cid:65)(cid:1)(cid:35)a(cid:71)a(cid:48)le(cid:1)i(cid:60)(cid:1)(cid:22)a(cid:65)(cid:54)
((cid:36)(cid:47)(cid:40)(cid:57)(cid:44)s(cid:9)(cid:38)ni(cid:59)s in (cid:59)(cid:47)o(cid:60)s(cid:40)n(cid:43)s)
Outstanding at beginning of year, nonvested
Granted
Vested
Forfeited
Outstanding at end of year, nonvested
N(cid:67)m(cid:48)e(cid:64)(cid:1)(cid:61)(cid:52)
(cid:38)(cid:54)a(cid:64)e(cid:65)
(cid:42)ei(cid:53)(cid:54)te(cid:50)(cid:7)
(cid:20)(cid:68)e(cid:64)a(cid:53)e(cid:1)(cid:26)(cid:64)a(cid:60)t
(cid:23)ate(cid:1)(cid:25)ai(cid:64)(cid:1)(cid:41)al(cid:67)e
(cid:20)2.99
71.(cid:23)(cid:21)
(47.73)
((cid:21)0.09)
(cid:21)1.73
(cid:20)2(cid:20) (cid:3)
12(cid:20)
(23(cid:20))
(19)
39(cid:21) (cid:3)
N(cid:67)m(cid:48)e(cid:64)(cid:1)(cid:61)(cid:52)
(cid:40)(cid:60)it(cid:65)
1,0(cid:23)(cid:21) (cid:3)
247
(4(cid:21)7)
((cid:20)(cid:21))
(cid:23)10 (cid:3)
(cid:42)ei(cid:53)(cid:54)te(cid:50)(cid:7)
(cid:20)(cid:68)e(cid:64)a(cid:53)e(cid:1)(cid:26)(cid:64)a(cid:60)t
(cid:23)ate(cid:1)(cid:25)ai(cid:64)(cid:1)(cid:41)al(cid:67)e
(cid:20)3.2(cid:21)
73.21
(4(cid:20).9(cid:20))
((cid:21)0.24)
(cid:21)3.0(cid:21)
The fair value of the restricted stock unit awards that vested and/or amounts paid under these awards is as follows:
(In millions)
Fair value of awards vested
Cash paid
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
4(cid:20) (cid:3)
34
(cid:11)(cid:9)(cid:11)(cid:11)
2(cid:20) (cid:3)
17
(cid:11)(cid:9)(cid:11)(cid:10)
20
13
(cid:35)e(cid:64)(cid:52)(cid:61)(cid:64)ma(cid:60)(cid:49)e(cid:1)(cid:38)(cid:54)a(cid:64)e(cid:1)(cid:40)(cid:60)it(cid:65)
The fair value of share-based compensation awards accounted for as liabilities includes performance share units, which are
generally paid in cash in the first quarter of the year following vesting. Performance share units are sub(cid:65)ect to performance goals
set at the beginning of the three-year performance period and vest at the end of the performance period. These units are
remeasured to fair value at the end of each reporting period based on the trading price of our common stock and the number of
units, as ad(cid:65)usted based on assumptions with respect to performance on the relevant metrics.
58 Textron 2023 Annual Report
(cid:20)(cid:23)
The 2023 activity for our performance share units is as follows:
The 2023 activity for our performance share units is as follows:
((cid:38)ni(cid:59)s in (cid:59)(cid:47)o(cid:60)s(cid:40)n(cid:43)s)
((cid:38)ni(cid:59)s in (cid:59)(cid:47)o(cid:60)s(cid:40)n(cid:43)s)
Outstanding at beginning of year, nonvested
Outstanding at beginning of year, nonvested
Granted
Granted
Vested
Vested
Forfeited
Forfeited
Outstanding at end of year, nonvested
Outstanding at end of year, nonvested
N(cid:67)m(cid:48)e(cid:64)(cid:1)(cid:61)(cid:52)
N(cid:67)m(cid:48)e(cid:64)(cid:1)(cid:61)(cid:52)
(cid:40)(cid:60)it(cid:65)
(cid:40)(cid:60)it(cid:65)
427 (cid:3)
427 (cid:3)
209
209
(242)
(242)
(2(cid:23))
(2(cid:23))
3(cid:21)(cid:21) (cid:3)
3(cid:21)(cid:21) (cid:3)
(cid:42)ei(cid:53)(cid:54)te(cid:50)(cid:7)
(cid:42)ei(cid:53)(cid:54)te(cid:50)(cid:7)
(cid:20)(cid:68)e(cid:64)a(cid:53)e(cid:1)(cid:26)(cid:64)a(cid:60)t
(cid:20)(cid:68)e(cid:64)a(cid:53)e(cid:1)(cid:26)(cid:64)a(cid:60)t
(cid:23)ate(cid:1)(cid:25)ai(cid:64)(cid:1)(cid:41)al(cid:67)e
(cid:23)ate(cid:1)(cid:25)ai(cid:64)(cid:1)(cid:41)al(cid:67)e
(cid:20)9.(cid:20)1
(cid:20)9.(cid:20)1
73.19
73.19
((cid:20)1.(cid:20)(cid:21))
((cid:20)1.(cid:20)(cid:21))
((cid:21)3.72)
((cid:21)3.72)
72.23
72.23
The fair value of the performance share units that vested and/or amounts paid under these awards is as follows:
The fair value of the performance share units that vested and/or amounts paid under these awards is as follows:
(In millions)
(In millions)
Fair value of awards vested
Fair value of awards vested
Cash paid
Cash paid
N(cid:61)te(cid:1)(cid:10)(cid:14)(cid:8)(cid:1)(cid:37)eti(cid:64)eme(cid:60)t(cid:1)(cid:35)la(cid:60)(cid:65)
N(cid:61)te(cid:1)(cid:10)(cid:14)(cid:8)(cid:1)(cid:37)eti(cid:64)eme(cid:60)t(cid:1)(cid:35)la(cid:60)(cid:65)
(cid:3)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
19 (cid:3)
19 (cid:3)
27
27
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
19 (cid:3)
19 (cid:3)
1(cid:20)
1(cid:20)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:10)
1(cid:23)
1(cid:23)
(cid:21)
(cid:21)
(cid:49)e provide defined-contribution benefits to eligible employees, as well as some remaining defined-benefit pension and other
(cid:49)e provide defined-contribution benefits to eligible employees, as well as some remaining defined-benefit pension and other
post-retirement benefits covering certain of our (cid:47).S. and Non-(cid:47).S. employees. Substantially all of our employees are covered by
post-retirement benefits covering certain of our (cid:47).S. and Non-(cid:47).S. employees. Substantially all of our employees are covered by
defined contribution plans. The largest of these plans, the Textron Savings Plan, is a qualified 401(k) plan sub(cid:65)ect to the
defined contribution plans. The largest of these plans, the Textron Savings Plan, is a qualified 401(k) plan sub(cid:65)ect to the
Employee Retirement Income Security Act of 1974 (ERISA). Our defined contribution plans cost (cid:3)1(cid:20)4 million, (cid:3)140 million and
Employee Retirement Income Security Act of 1974 (ERISA). Our defined contribution plans cost (cid:3)1(cid:20)4 million, (cid:3)140 million and
(cid:3)131 million in 2023, 2022 and 2021, respectively. (cid:49)e also provide postretirement benefits other than pensions for certain retired
(cid:3)131 million in 2023, 2022 and 2021, respectively. (cid:49)e also provide postretirement benefits other than pensions for certain retired
employees in the (cid:47).S. that include healthcare, dental care, Medicare Part B reimbursement and life insurance.
employees in the (cid:47).S. that include healthcare, dental care, Medicare Part B reimbursement and life insurance.
A portion of our (cid:47).S. employees participate in the legacy defined benefit pension plans which were closed to new participants
A portion of our (cid:47).S. employees participate in the legacy defined benefit pension plans which were closed to new participants
beginning on January 1, 2010. These legacy plans include the Textron Master Retirement Plan (TMRP), the Bell (cid:34)elicopter
beginning on January 1, 2010. These legacy plans include the Textron Master Retirement Plan (TMRP), the Bell (cid:34)elicopter
Textron Master Retirement Plan, and the C(cid:49)C Castings Division of Textron Inc. (cid:34)ourly-Rated Employees(cid:6) Pension Plan, which
Textron Master Retirement Plan, and the C(cid:49)C Castings Division of Textron Inc. (cid:34)ourly-Rated Employees(cid:6) Pension Plan, which
are each sub(cid:65)ect to the provisions of ERISA and provide a minimum guaranteed benefit to participants. The primary factors
are each sub(cid:65)ect to the provisions of ERISA and provide a minimum guaranteed benefit to participants. The primary factors
affecting the benefits earned by participants in our pension plans are employees(cid:88) years of service and compensation levels.
affecting the benefits earned by participants in our pension plans are employees(cid:88) years of service and compensation levels.
Employees hired subsequent to the closure of these plans receive an additional annual cash contribution to their Textron Savings
Employees hired subsequent to the closure of these plans receive an additional annual cash contribution to their Textron Savings
Plan account based on their eligible compensation of up to 4(cid:4).
Plan account based on their eligible compensation of up to 4(cid:4).
(cid:35)e(cid:64)i(cid:61)(cid:50)i(cid:49)(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:1)(cid:22)(cid:61)(cid:65)t(cid:1)(cid:3)(cid:28)(cid:60)(cid:49)(cid:61)me(cid:4)
(cid:35)e(cid:64)i(cid:61)(cid:50)i(cid:49)(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:1)(cid:22)(cid:61)(cid:65)t(cid:1)(cid:3)(cid:28)(cid:60)(cid:49)(cid:61)me(cid:4)
The components of net periodic benefit cost (income) and other amounts recogni(cid:81)ed in other comprehensive income (loss) (OCI)
The components of net periodic benefit cost (income) and other amounts recogni(cid:81)ed in other comprehensive income (loss) (OCI)
are as follows:
are as follows:
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:34)t(cid:54)e(cid:64)(cid:1)t(cid:54)a(cid:60)(cid:1)(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:65)
(cid:34)t(cid:54)e(cid:64)(cid:1)t(cid:54)a(cid:60)(cid:1)(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:65)
(cid:3)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:21)7 (cid:3)
(cid:21)7 (cid:3)
3(cid:21)4
3(cid:21)4
((cid:21)10)
((cid:21)10)
11
11
1
1
(1(cid:21)7) (cid:3)
(1(cid:21)7) (cid:3)
(In millions)
(In millions)
Net(cid:1)(cid:62)e(cid:64)i(cid:61)(cid:50)i(cid:49)(cid:1)(cid:48)e(cid:60)e(cid:52)it(cid:1)(cid:49)(cid:61)(cid:65)t(cid:1)(cid:3)i(cid:60)(cid:49)(cid:61)me(cid:4)
Net(cid:1)(cid:62)e(cid:64)i(cid:61)(cid:50)i(cid:49)(cid:1)(cid:48)e(cid:60)e(cid:52)it(cid:1)(cid:49)(cid:61)(cid:65)t(cid:1)(cid:3)i(cid:60)(cid:49)(cid:61)me(cid:4)
Service cost
Service cost
Interest cost
Interest cost
Expected return on plan assets
Expected return on plan assets
Amorti(cid:81)ation of prior service cost (credit)
Amorti(cid:81)ation of prior service cost (credit)
Amorti(cid:81)ation of net actuarial loss (gain)
Amorti(cid:81)ation of net actuarial loss (gain)
Net periodic benefit cost (income)*
Net periodic benefit cost (income)*
(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:49)(cid:54)a(cid:60)(cid:53)e(cid:65)(cid:1)i(cid:60)(cid:1)(cid:62)la(cid:60)(cid:1)a(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:48)e(cid:60)e(cid:52)it(cid:1)(cid:61)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)(cid:1)
(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:49)(cid:54)a(cid:60)(cid:53)e(cid:65)(cid:1)i(cid:60)(cid:1)(cid:62)la(cid:60)(cid:1)a(cid:65)(cid:65)et(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:48)e(cid:60)e(cid:52)it(cid:1)(cid:61)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)(cid:1)
(cid:64)e(cid:49)(cid:61)(cid:53)(cid:60)i(cid:72)e(cid:50)(cid:1)i(cid:60)(cid:1)(cid:34)(cid:22)(cid:28)
(cid:64)e(cid:49)(cid:61)(cid:53)(cid:60)i(cid:72)e(cid:50)(cid:1)i(cid:60)(cid:1)(cid:34)(cid:22)(cid:28)
(13)
Current year actuarial loss (gain)
(13)
Current year actuarial loss (gain)
(cid:85)
Current year prior service cost
(cid:85)
Current year prior service cost
2
Amorti(cid:81)ation of net actuarial gain (loss)
2
Amorti(cid:81)ation of net actuarial gain (loss)
(cid:20)
Amorti(cid:81)ation of prior service credit (cost)
(cid:20)
Amorti(cid:81)ation of prior service credit (cost)
((cid:21))
Total recogni(cid:81)ed in OCI, before taxes
((cid:21))
Total recogni(cid:81)ed in OCI, before taxes
((cid:20))
Total recogni(cid:81)ed in net periodic benefit cost (income) and OCI
Total recogni(cid:81)ed in net periodic benefit cost (income) and OCI
((cid:20))
(cid:5) (cid:24)(cid:63)(cid:42)l(cid:60)(cid:43)(cid:44)s (cid:59)(cid:47)(cid:44) (cid:42)os(cid:59) (cid:40)sso(cid:42)i(cid:40)(cid:59)(cid:44)(cid:43) (cid:62)i(cid:59)(cid:47) (cid:59)(cid:47)(cid:44) (cid:43)(cid:44)(cid:45)in(cid:44)(cid:43) (cid:42)on(cid:59)(cid:57)i(cid:41)(cid:60)(cid:59)ion (cid:42)om(cid:55)on(cid:44)n(cid:59) (cid:59)(cid:47)(cid:40)(cid:59) is in(cid:42)l(cid:60)(cid:43)(cid:44)(cid:43) in (cid:42)(cid:44)(cid:57)(cid:59)(cid:40)in o(cid:45) o(cid:60)(cid:57) (cid:38)(cid:8)(cid:36)(cid:8)(cid:7)(cid:41)(cid:40)s(cid:44)(cid:43) (cid:43)(cid:44)(cid:45)in(cid:44)(cid:43) (cid:41)(cid:44)n(cid:44)(cid:45)i(cid:59) (cid:55)(cid:44)nsion (cid:55)l(cid:40)ns(cid:6) o(cid:45) (cid:2)(cid:11)(cid:11) million
(cid:5) (cid:24)(cid:63)(cid:42)l(cid:60)(cid:43)(cid:44)s (cid:59)(cid:47)(cid:44) (cid:42)os(cid:59) (cid:40)sso(cid:42)i(cid:40)(cid:59)(cid:44)(cid:43) (cid:62)i(cid:59)(cid:47) (cid:59)(cid:47)(cid:44) (cid:43)(cid:44)(cid:45)in(cid:44)(cid:43) (cid:42)on(cid:59)(cid:57)i(cid:41)(cid:60)(cid:59)ion (cid:42)om(cid:55)on(cid:44)n(cid:59) (cid:59)(cid:47)(cid:40)(cid:59) is in(cid:42)l(cid:60)(cid:43)(cid:44)(cid:43) in (cid:42)(cid:44)(cid:57)(cid:59)(cid:40)in o(cid:45) o(cid:60)(cid:57) (cid:38)(cid:8)(cid:36)(cid:8)(cid:7)(cid:41)(cid:40)s(cid:44)(cid:43) (cid:43)(cid:44)(cid:45)in(cid:44)(cid:43) (cid:41)(cid:44)n(cid:44)(cid:45)i(cid:59) (cid:55)(cid:44)nsion (cid:55)l(cid:40)ns(cid:6) o(cid:45) (cid:2)(cid:11)(cid:11) million
in (cid:12)(cid:10)(cid:12)(cid:13)(cid:6) (cid:12)(cid:10)(cid:12)(cid:12)(cid:6) (cid:40)n(cid:43) (cid:12)(cid:10)(cid:12)(cid:11)(cid:8)
in (cid:12)(cid:10)(cid:12)(cid:13)(cid:6) (cid:12)(cid:10)(cid:12)(cid:12)(cid:6) (cid:40)n(cid:43) (cid:12)(cid:10)(cid:12)(cid:11)(cid:8)
4
4
((cid:23)7)
((cid:23)7)
(13)
(13)
(342) (cid:3) (1,279) (cid:3)
(342) (cid:3) (1,279) (cid:3)
(471) (cid:3) (1,320) (cid:3)
(471) (cid:3) (1,320) (cid:3)
11(cid:21) (cid:3)
11(cid:21) (cid:3)
2(cid:20)2
2(cid:20)2
((cid:20)73)
((cid:20)73)
12
12
1(cid:20)2
1(cid:20)2
(41) (cid:3)
(41) (cid:3)
10(cid:23) (cid:3)
10(cid:23) (cid:3)
272
272
((cid:21)09)
((cid:21)09)
13
13
(cid:23)7
(cid:23)7
(129) (cid:3)
(129) (cid:3)
109 (cid:3)
109 (cid:3)
7
7
(1)
(1)
(11)
(11)
104 (cid:3)
104 (cid:3)
((cid:21)3) (cid:3)
((cid:21)3) (cid:3)
(39) (cid:3)
(39) (cid:3)
(cid:85)
(cid:85)
4
4
(cid:20)
(cid:20)
(30) (cid:3)
(30) (cid:3)
(31) (cid:3)
(31) (cid:3)
(7) (cid:3)
(7) (cid:3)
(cid:85)
(cid:85)
(cid:23)
(cid:23)
3
3
4 (cid:3)
4 (cid:3)
3 (cid:3)
3 (cid:3)
2 (cid:3)
2 (cid:3)
(cid:21)
(cid:21)
(cid:85)
(cid:85)
((cid:20))
((cid:20))
(4)
(4)
(1) (cid:3)
(1) (cid:3)
2 (cid:3)
2 (cid:3)
(cid:23)
(cid:23)
(cid:85)
(cid:85)
(3)
(3)
((cid:23))
((cid:23))
(1) (cid:3)
(1) (cid:3)
3
3
(cid:20)
(cid:20)
(cid:85)
(cid:85)
((cid:20))
((cid:20))
(2)
(2)
1
1
(24(cid:21)) (cid:3) (1,13(cid:20)) (cid:3)
(24(cid:21)) (cid:3) (1,13(cid:20)) (cid:3)
20
20
(1(cid:20)2)
(1(cid:20)2)
(12)
(12)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:20)9
(cid:20)9
Textron 2023 Annual Report 59
(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)(cid:67)(cid:60)(cid:50)e(cid:50)(cid:1)(cid:38)tat(cid:67)(cid:65)
(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)(cid:67)(cid:60)(cid:50)e(cid:50)(cid:1)(cid:38)tat(cid:67)(cid:65)
(cid:34)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)(cid:67)(cid:60)(cid:50)e(cid:50)(cid:1)(cid:38)tat(cid:67)(cid:65)
All of our plans are measured as of our fiscal year-end. The changes in the pro(cid:65)ected benefit obligation and in the fair value of
All of our plans are measured as of our fiscal year-end. The changes in the pro(cid:65)ected benefit obligation and in the fair value of
All of our plans are measured as of our fiscal year-end. The changes in the pro(cid:65)ected benefit obligation and in the fair value of
plan assets, along with our funded status, are as follows:
plan assets, along with our funded status, are as follows:
plan assets, along with our funded status, are as follows:
(In millions)
(In millions)
(In millions)
(cid:22)(cid:54)a(cid:60)(cid:53)e(cid:1)i(cid:60)(cid:1)(cid:62)(cid:64)(cid:61)(cid:56)e(cid:49)te(cid:50)(cid:1)(cid:48)e(cid:60)e(cid:52)it(cid:1)(cid:61)(cid:48)li(cid:53)ati(cid:61)(cid:60)
(cid:22)(cid:54)a(cid:60)(cid:53)e(cid:1)i(cid:60)(cid:1)(cid:62)(cid:64)(cid:61)(cid:56)e(cid:49)te(cid:50)(cid:1)(cid:48)e(cid:60)e(cid:52)it(cid:1)(cid:61)(cid:48)li(cid:53)ati(cid:61)(cid:60)
(cid:22)(cid:54)a(cid:60)(cid:53)e(cid:1)i(cid:60)(cid:1)(cid:62)(cid:64)(cid:61)(cid:56)e(cid:49)te(cid:50)(cid:1)(cid:48)e(cid:60)e(cid:52)it(cid:1)(cid:61)(cid:48)li(cid:53)ati(cid:61)(cid:60)
Pro(cid:65)ected benefit obligation at beginning of year
Pro(cid:65)ected benefit obligation at beginning of year
Pro(cid:65)ected benefit obligation at beginning of year
Service cost
Service cost
Service cost
Interest cost
Interest cost
Interest cost
Plan participants(cid:88) contributions
Plan participants(cid:88) contributions
Plan participants(cid:88) contributions
Actuarial losses (gains)
Actuarial losses (gains)
Actuarial losses (gains)
Benefits paid
Benefits paid
Benefits paid
Plan amendment
Plan amendment
Plan amendment
Foreign exchange rate changes and other
Foreign exchange rate changes and other
Foreign exchange rate changes and other
Pro(cid:65)ected benefit obligation at end of year
Pro(cid:65)ected benefit obligation at end of year
Pro(cid:65)ected benefit obligation at end of year
(cid:22)(cid:54)a(cid:60)(cid:53)e(cid:1)i(cid:60)(cid:1)(cid:52)ai(cid:64)(cid:1)(cid:68)al(cid:67)e(cid:1)(cid:61)(cid:52)(cid:1)(cid:62)la(cid:60)(cid:1)a(cid:65)(cid:65)et(cid:65)
(cid:22)(cid:54)a(cid:60)(cid:53)e(cid:1)i(cid:60)(cid:1)(cid:52)ai(cid:64)(cid:1)(cid:68)al(cid:67)e(cid:1)(cid:61)(cid:52)(cid:1)(cid:62)la(cid:60)(cid:1)a(cid:65)(cid:65)et(cid:65)
(cid:22)(cid:54)a(cid:60)(cid:53)e(cid:1)i(cid:60)(cid:1)(cid:52)ai(cid:64)(cid:1)(cid:68)al(cid:67)e(cid:1)(cid:61)(cid:52)(cid:1)(cid:62)la(cid:60)(cid:1)a(cid:65)(cid:65)et(cid:65)
Fair value of plan assets at beginning of year
Fair value of plan assets at beginning of year
Fair value of plan assets at beginning of year
Actual return on plan assets
Actual return on plan assets
Actual return on plan assets
Employer contributions
Employer contributions
Employer contributions
Benefits paid
Benefits paid
Benefits paid
Foreign exchange rate changes and other
Foreign exchange rate changes and other
Foreign exchange rate changes and other
Fair value of plan assets at end of year
Fair value of plan assets at end of year
Fair value of plan assets at end of year
Funded status at end of year
Funded status at end of year
Funded status at end of year
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:34)t(cid:54)e(cid:64)(cid:1)t(cid:54)a(cid:60)(cid:1)(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:65)
(cid:34)t(cid:54)e(cid:64)(cid:1)t(cid:54)a(cid:60)(cid:1)(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:65)
(cid:34)t(cid:54)e(cid:64)(cid:1)t(cid:54)a(cid:60)(cid:1)(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:65)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:21),(cid:23)4(cid:23) (cid:3)
(cid:21),(cid:23)4(cid:23) (cid:3)
(cid:21),(cid:23)4(cid:23) (cid:3)
(cid:21)7
(cid:21)7
(cid:21)7
3(cid:21)4
3(cid:21)4
3(cid:21)4
(cid:85)
(cid:85)
(cid:85)
330
330
330
(444)
(444)
(444)
7
7
7
33
33
33
7,20(cid:20) (cid:3)
7,20(cid:20) (cid:3)
7,20(cid:20) (cid:3)
7,943 (cid:3)
7,943 (cid:3)
7,943 (cid:3)
(cid:23)32
(cid:23)32
(cid:23)32
3(cid:21)
3(cid:21)
3(cid:21)
(444)
(444)
(444)
4(cid:21)
4(cid:21)
4(cid:21)
(cid:23),413 (cid:3)
(cid:23),413 (cid:3)
(cid:23),413 (cid:3)
1,20(cid:23) (cid:3)
1,20(cid:23) (cid:3)
1,20(cid:23) (cid:3)
9,339 (cid:3)
9,339 (cid:3)
9,339 (cid:3)
10(cid:23)
10(cid:23)
10(cid:23)
272
272
272
(cid:85)
(cid:85)
(cid:85)
(2,373)
(2,373)
(2,373)
(44(cid:23))
(44(cid:23))
(44(cid:23))
1
1
1
((cid:20)1)
((cid:20)1)
((cid:20)1)
(cid:21),(cid:23)4(cid:23) (cid:3)
(cid:21),(cid:23)4(cid:23) (cid:3)
(cid:21),(cid:23)4(cid:23) (cid:3)
9,947
9,947
9,947
(1,(cid:20)20)
(1,(cid:20)20)
(1,(cid:20)20)
37
37
37
(44(cid:23))
(44(cid:23))
(44(cid:23))
(73)
(73)
(73)
7,943
7,943
7,943
1,09(cid:20) (cid:3)
1,09(cid:20) (cid:3)
1,09(cid:20) (cid:3)
1(cid:20)0 (cid:3)
1(cid:20)0 (cid:3)
1(cid:20)0 (cid:3)
2
2
2
(cid:23)
(cid:23)
(cid:23)
3
3
3
(7)
(7)
(7)
(20)
(20)
(20)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
13(cid:21) (cid:3)
13(cid:21) (cid:3)
13(cid:21) (cid:3)
202
202
202
2
2
2
(cid:21)
(cid:21)
(cid:21)
4
4
4
(40)
(40)
(40)
(24)
(24)
(24)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
1(cid:20)0
1(cid:20)0
1(cid:20)0
(13(cid:21)) (cid:3)
(13(cid:21)) (cid:3)
(13(cid:21)) (cid:3)
(1(cid:20)0)
(1(cid:20)0)
(1(cid:20)0)
Actuarial losses (gains) for 2023 and 2022 were largely the result of changes in the discount rate utili(cid:81)ed.
Actuarial losses (gains) for 2023 and 2022 were largely the result of changes in the discount rate utili(cid:81)ed.
Actuarial losses (gains) for 2023 and 2022 were largely the result of changes in the discount rate utili(cid:81)ed.
Amounts recogni(cid:81)ed in our balance sheets are as follows:
Amounts recogni(cid:81)ed in our balance sheets are as follows:
Amounts recogni(cid:81)ed in our balance sheets are as follows:
(In millions)
(In millions)
(In millions)
Non-current assets
Non-current assets
Non-current assets
Current liabilities
Current liabilities
Current liabilities
Non-current liabilities
Non-current liabilities
Non-current liabilities
Recogni(cid:81)ed in Accumulated other comprehensive loss, pre-tax:
Recogni(cid:81)ed in Accumulated other comprehensive loss, pre-tax:
Recogni(cid:81)ed in Accumulated other comprehensive loss, pre-tax:
Net loss (gain)
Net loss (gain)
Net loss (gain)
Prior service cost (credit)
Prior service cost (credit)
Prior service cost (credit)
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:34)t(cid:54)e(cid:64)(cid:1)t(cid:54)a(cid:60)(cid:1)(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:65)
(cid:34)t(cid:54)e(cid:64)(cid:1)t(cid:54)a(cid:60)(cid:1)(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:65)
(cid:34)t(cid:54)e(cid:64)(cid:1)t(cid:54)a(cid:60)(cid:1)(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:65)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
1,(cid:20)(cid:21)9 (cid:3)
(cid:3)
1,(cid:20)(cid:21)9 (cid:3)
(cid:3)
1,(cid:20)(cid:21)9 (cid:3)
(cid:3)
(2(cid:23))
(2(cid:23))
(2(cid:23))
(333)
(333)
(333)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
1,440 (cid:3)
1,440 (cid:3)
1,440 (cid:3)
(2(cid:23))
(2(cid:23))
(2(cid:23))
(317)
(317)
(317)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:85) (cid:3)
(cid:85) (cid:3)
(cid:85) (cid:3)
(17)
(17)
(17)
(119)
(119)
(119)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:85)
(cid:85)
(cid:85)
(19)
(19)
(19)
(131)
(131)
(131)
730
730
730
42
42
42
(cid:21)23
(cid:21)23
(cid:21)23
4(cid:21)
4(cid:21)
4(cid:21)
((cid:21)9)
((cid:21)9)
((cid:21)9)
(3)
(3)
(3)
(70)
(70)
(70)
((cid:21))
((cid:21))
((cid:21))
The accumulated benefit obligation for all defined benefit pension plans was (cid:3)(cid:21).9 billion and (cid:3)(cid:21).(cid:21) billion at December 30, 2023
The accumulated benefit obligation for all defined benefit pension plans was (cid:3)(cid:21).9 billion and (cid:3)(cid:21).(cid:21) billion at December 30, 2023
The accumulated benefit obligation for all defined benefit pension plans was (cid:3)(cid:21).9 billion and (cid:3)(cid:21).(cid:21) billion at December 30, 2023
and December 31, 2022, respectively, which included (cid:3)33(cid:21) million and (cid:3)32(cid:21) million, respectively, in accumulated benefit
and December 31, 2022, respectively, which included (cid:3)33(cid:21) million and (cid:3)32(cid:21) million, respectively, in accumulated benefit
and December 31, 2022, respectively, which included (cid:3)33(cid:21) million and (cid:3)32(cid:21) million, respectively, in accumulated benefit
obligations for unfunded plans where funding is not permitted or in foreign environments where funding is not feasible.
obligations for unfunded plans where funding is not permitted or in foreign environments where funding is not feasible.
obligations for unfunded plans where funding is not permitted or in foreign environments where funding is not feasible.
Pension plans with accumulated benefit obligation exceeding the fair value of plan assets are as follows:
Pension plans with accumulated benefit obligation exceeding the fair value of plan assets are as follows:
Pension plans with accumulated benefit obligation exceeding the fair value of plan assets are as follows:
(In millions)
(In millions)
(In millions)
Accumulated benefit obligation
Accumulated benefit obligation
Accumulated benefit obligation
Fair value of plan assets
Fair value of plan assets
Fair value of plan assets
Pension plans with pro(cid:65)ected benefit obligation exceeding the fair value of plan assets are as follows:
Pension plans with pro(cid:65)ected benefit obligation exceeding the fair value of plan assets are as follows:
Pension plans with pro(cid:65)ected benefit obligation exceeding the fair value of plan assets are as follows:
(In millions)
(In millions)
(In millions)
Pro(cid:65)ected benefit obligation
Pro(cid:65)ected benefit obligation
Pro(cid:65)ected benefit obligation
Fair value of plan assets
Fair value of plan assets
Fair value of plan assets
60 Textron 2023 Annual Report
(cid:21)0
(cid:21)0
(cid:21)0
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
33(cid:21) (cid:3)
(cid:3)
(cid:3)
33(cid:21) (cid:3)
33(cid:21) (cid:3)
(cid:3)
(cid:85)
(cid:85)
(cid:85)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
32(cid:21)
32(cid:21)
32(cid:21)
(cid:85)
(cid:85)
(cid:85)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:21)(cid:20)2 (cid:3)
(cid:3)
(cid:21)(cid:20)2 (cid:3)
(cid:3)
(cid:21)(cid:20)2 (cid:3)
(cid:3)
292
292
292
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:20)97
(cid:20)97
(cid:20)97
2(cid:20)2
2(cid:20)2
2(cid:20)2
(cid:20)(cid:65)(cid:65)(cid:67)m(cid:62)ti(cid:61)(cid:60)(cid:65)
The weighted-average assumptions we use for our pension and postretirement plans are as follows:
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:35)(cid:61)(cid:65)t(cid:64)eti(cid:64)eme(cid:60)t(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
(cid:34)t(cid:54)e(cid:64)(cid:1)t(cid:54)a(cid:60)(cid:1)(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:65)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
Net(cid:1)(cid:62)e(cid:64)i(cid:61)(cid:50)i(cid:49)(cid:1)(cid:48)e(cid:60)e(cid:52)it(cid:1)(cid:49)(cid:61)(cid:65)t
Discount rate
Expected long-term rate of return on assets
Rate of compensation increase
(cid:21)e(cid:60)e(cid:52)it(cid:1)(cid:61)(cid:48)li(cid:53)ati(cid:61)(cid:60)(cid:65)(cid:1)at(cid:1)(cid:71)ea(cid:64)(cid:7)e(cid:60)(cid:50)
Discount rate
Rate of compensation increase
Interest crediting rate for cash balance plans
(cid:20).(cid:20)1 (cid:4)
7.14 (cid:4)
3.97 (cid:4)
(cid:20).19 (cid:4)
3.97 (cid:4)
(cid:20).2(cid:20) (cid:4)
2.99 (cid:4)
7.10 (cid:4)
3.9(cid:20) (cid:4)
(cid:20).(cid:20)1 (cid:4)
3.97 (cid:4)
(cid:20).2(cid:20) (cid:4)
2.(cid:21)2 (cid:4)
7.10 (cid:4)
3.49 (cid:4)
2.99 (cid:4)
3.9(cid:20) (cid:4)
(cid:20).2(cid:20) (cid:4)
(cid:20).70 (cid:4)
2.(cid:23)0 (cid:4)
2.3(cid:20) (cid:4)
(cid:20).40 (cid:4)
(cid:20).70 (cid:4)
2.(cid:23)0 (cid:4)
Our assumed healthcare cost trend rate for both the medical and prescription drug cost was (cid:21).(cid:20)(cid:4) in both 2023 and 2022. (cid:49)e
expect this rate to gradually decline to 4.7(cid:20)(cid:4) by 2030 where we assume it will remain.
(cid:35)e(cid:60)(cid:65)i(cid:61)(cid:60)(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)
The expected long-term rate of return on plan assets is determined based on a variety of considerations, including the established
asset allocation targets and expectations for those asset classes, historical returns of the plans(cid:88) assets and other market
considerations. (cid:49)e invest our pension assets with the ob(cid:65)ective of achieving a total rate of return over the long term that will be
sufficient to fund future pension obligations and to minimi(cid:81)e future pension contributions. (cid:49)e are willing to tolerate a
commensurate level of risk to achieve this ob(cid:65)ective based on the funded status of the plans and the long-term nature of our
pension liability. Risk is controlled by maintaining a portfolio of assets that is diversified across a variety of asset classes,
investment styles and investment managers. (cid:49)here possible, investment managers are prohibited from owning our securities in
the portfolios that they manage on our behalf.
For (cid:47).S. plan assets, which represent the ma(cid:65)ority of our plan assets, asset allocation target ranges are established consistent with
our investment ob(cid:65)ectives, and the assets are rebalanced periodically. For Non-(cid:47).S. plan assets, allocations are based on expected
cash flow needs and assessments of the local practices and markets. Our target allocation ranges are as follows:
(cid:40)(cid:8)(cid:38)(cid:8)(cid:1)(cid:35)la(cid:60)(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)
Domestic equity securities
International equity securities
Global equities
Debt securities
Real estate
Private investment partnerships
N(cid:61)(cid:60)(cid:7)(cid:40)(cid:8)(cid:38)(cid:8)(cid:1)(cid:35)la(cid:60)(cid:1)(cid:20)(cid:65)(cid:65)et(cid:65)
Equity securities
Debt securities
Real estate
17(cid:4) to 33(cid:4)
(cid:21)(cid:4) to 17(cid:4)
(cid:20)(cid:4) to 17(cid:4)
27(cid:4) to 3(cid:23)(cid:4)
7(cid:4) to 13(cid:4)
7(cid:4) to 13(cid:4)
(cid:20)(cid:20)(cid:4) to 7(cid:20)(cid:4)
2(cid:20)(cid:4) to 4(cid:20)(cid:4)
0(cid:4) to 13(cid:4)
(cid:21)1
Textron 2023 Annual Report 61
The fair value of our pension plan assets by ma(cid:65)or category and valuation method is as follows:
The fair value of our pension plan assets by ma(cid:65)or category and valuation method is as follows:
The fair value of our pension plan assets by ma(cid:65)or category and valuation method is as follows:
The fair value of our pension plan assets by ma(cid:65)or category and valuation method is as follows:
(In millions)
(In millions)
(In millions)
(In millions)
Cash and equivalents
Cash and equivalents
Cash and equivalents
Cash and equivalents
Equity securities:
Equity securities:
Equity securities:
Equity securities:
Domestic
Domestic
Domestic
Domestic
International
International
International
International
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Debt securities:
Debt securities:
Debt securities:
Debt securities:
National, state and local governments
National, state and local governments
National, state and local governments
National, state and local governments
Corporate debt
Corporate debt
Corporate debt
Corporate debt
Private investment partnerships
Private investment partnerships
Private investment partnerships
Private investment partnerships
Real estate
Real estate
Real estate
Real estate
Total
Total
Total
Total
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:11)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:11)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:11)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)(cid:1)(cid:11)(cid:9)(cid:11)(cid:11)
N(cid:61)t
N(cid:61)t
N(cid:61)t
N(cid:61)t
(cid:38)(cid:67)(cid:48)(cid:56)e(cid:49)t(cid:1)t(cid:61)
(cid:38)(cid:67)(cid:48)(cid:56)e(cid:49)t(cid:1)t(cid:61)
(cid:38)(cid:67)(cid:48)(cid:56)e(cid:49)t(cid:1)t(cid:61)
(cid:38)(cid:67)(cid:48)(cid:56)e(cid:49)t(cid:1)t(cid:61)
(cid:31)e(cid:68)eli(cid:60)(cid:53)
(cid:31)e(cid:68)eli(cid:60)(cid:53)
(cid:31)e(cid:68)eli(cid:60)(cid:53)
(cid:31)e(cid:68)eli(cid:60)(cid:53)
N(cid:61)t
N(cid:61)t
N(cid:61)t
N(cid:61)t
(cid:38)(cid:67)(cid:48)(cid:56)e(cid:49)t(cid:1)t(cid:61)
(cid:38)(cid:67)(cid:48)(cid:56)e(cid:49)t(cid:1)t(cid:61)
(cid:38)(cid:67)(cid:48)(cid:56)e(cid:49)t(cid:1)t(cid:61)
(cid:38)(cid:67)(cid:48)(cid:56)e(cid:49)t(cid:1)t(cid:61)
(cid:31)e(cid:68)eli(cid:60)(cid:53)
(cid:31)e(cid:68)eli(cid:60)(cid:53)
(cid:31)e(cid:68)eli(cid:60)(cid:53)
(cid:31)e(cid:68)eli(cid:60)(cid:53)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:31)e(cid:68)el(cid:1)(cid:10)
(cid:31)e(cid:68)el(cid:1)(cid:10)
(cid:31)e(cid:68)el(cid:1)(cid:10)
(cid:31)e(cid:68)el(cid:1)(cid:10)
231 (cid:3)
231 (cid:3)
231 (cid:3)
231 (cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:31)e(cid:68)el(cid:1)(cid:11)
(cid:31)e(cid:68)el(cid:1)(cid:11)
(cid:31)e(cid:68)el(cid:1)(cid:11)
(cid:31)e(cid:68)el(cid:1)(cid:11)
(cid:31)e(cid:68)el(cid:1)(cid:12)
(cid:31)e(cid:68)el(cid:1)(cid:12)
(cid:31)e(cid:68)el(cid:1)(cid:12)
(cid:31)e(cid:68)el(cid:1)(cid:12)
1 (cid:3) (cid:85) (cid:3)
1 (cid:3) (cid:85) (cid:3)
1 (cid:3) (cid:85) (cid:3)
1 (cid:3) (cid:85) (cid:3)
(cid:31)e(cid:68)el(cid:1)(cid:10)
(cid:31)e(cid:68)el(cid:1)(cid:10)
(cid:31)e(cid:68)el(cid:1)(cid:10)
(cid:31)e(cid:68)el(cid:1)(cid:10)
37(cid:23) (cid:3)
37(cid:23) (cid:3)
37(cid:23) (cid:3)
37(cid:23) (cid:3)
(cid:31)e(cid:68)el(cid:1)(cid:11)
(cid:31)e(cid:68)el(cid:1)(cid:11)
(cid:31)e(cid:68)el(cid:1)(cid:11)
(cid:31)e(cid:68)el(cid:1)(cid:11)
(cid:31)e(cid:68)el(cid:1)(cid:12)
(cid:31)e(cid:68)el(cid:1)(cid:12)
(cid:31)e(cid:68)el(cid:1)(cid:12)
(cid:31)e(cid:68)el(cid:1)(cid:12)
3 (cid:3) (cid:85) (cid:3)
3 (cid:3) (cid:85) (cid:3)
3 (cid:3) (cid:85) (cid:3)
3 (cid:3) (cid:85) (cid:3)
(cid:85) (cid:3)
(cid:85) (cid:3)
(cid:85) (cid:3)
(cid:85) (cid:3)
2,7(cid:20)4
2,7(cid:20)4
2,7(cid:20)4
2,7(cid:20)4
1,0(cid:21)1
1,0(cid:21)1
1,0(cid:21)1
1,0(cid:21)1
117
117
117
117
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
299
299
299
299
2(cid:23)1
2(cid:23)1
2(cid:23)1
2(cid:23)1
(cid:85)
(cid:85)
(cid:85)
(cid:85)
2,304
2,304
2,304
2,304
1,171
1,171
1,171
1,171
1(cid:20)0
1(cid:20)0
1(cid:20)0
1(cid:20)0
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
22(cid:20)
22(cid:20)
22(cid:20)
22(cid:20)
230
230
230
230
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:21)79
(cid:21)79
(cid:21)79
(cid:21)79
1(cid:21)4
1(cid:21)4
1(cid:21)4
1(cid:21)4
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:3) (cid:20),00(cid:21) (cid:3)
(cid:3) (cid:20),00(cid:21) (cid:3)
(cid:3) (cid:20),00(cid:21) (cid:3)
(cid:3) (cid:20),00(cid:21) (cid:3)
142
142
142
142
(cid:21)10
(cid:21)10
(cid:21)10
(cid:21)10
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
7(cid:20)3 (cid:3)
7(cid:20)3 (cid:3)
7(cid:20)3 (cid:3)
7(cid:20)3 (cid:3)
(cid:23)(cid:23)
(cid:85)
(cid:23)(cid:23)
(cid:85)
(cid:23)(cid:23)
(cid:85)
(cid:23)(cid:23)
(cid:85)
90
(cid:85)
90
(cid:85)
90
(cid:85)
90
(cid:85)
1,000
(cid:85)
1,000
(cid:85)
1,000
(cid:85)
1,000
(cid:85)
3(cid:23)(cid:23)
(cid:20)0(cid:23)
3(cid:23)(cid:23)
(cid:20)0(cid:23)
3(cid:23)(cid:23)
(cid:20)0(cid:23)
(cid:20)0(cid:23)
3(cid:23)(cid:23)
(cid:20)0(cid:23) (cid:3) 2,14(cid:21) (cid:3) 4,393 (cid:3)
(cid:20)0(cid:23) (cid:3) 2,14(cid:21) (cid:3) 4,393 (cid:3)
(cid:20)0(cid:23) (cid:3) 2,14(cid:21) (cid:3) 4,393 (cid:3)
(cid:20)0(cid:23) (cid:3) 2,14(cid:21) (cid:3) 4,393 (cid:3)
332
332
332
332
(cid:20)(cid:23)
(cid:20)(cid:23)
(cid:20)(cid:23)
(cid:20)(cid:23)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
239
239
239
239
(cid:21)(cid:21)3
(cid:21)(cid:21)3
(cid:21)(cid:21)3
(cid:21)(cid:21)3
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
90(cid:20) (cid:3)
90(cid:20) (cid:3)
90(cid:20) (cid:3)
90(cid:20) (cid:3)
27
(cid:85)
27
(cid:85)
27
(cid:85)
27
(cid:85)
129
(cid:85)
129
(cid:85)
129
(cid:85)
129
(cid:85)
1,070
(cid:85)
1,070
(cid:85)
1,070
(cid:85)
1,070
(cid:85)
39(cid:20)
(cid:20)(cid:21)9
39(cid:20)
(cid:20)(cid:21)9
39(cid:20)
(cid:20)(cid:21)9
(cid:20)(cid:21)9
39(cid:20)
(cid:20)(cid:21)9 (cid:3) 2,07(cid:21)
(cid:20)(cid:21)9 (cid:3) 2,07(cid:21)
(cid:20)(cid:21)9 (cid:3) 2,07(cid:21)
(cid:20)(cid:21)9 (cid:3) 2,07(cid:21)
Cash and equivalents, equity securities and debt securities include commingled funds, which represent investments in funds
Cash and equivalents, equity securities and debt securities include commingled funds, which represent investments in funds
Cash and equivalents, equity securities and debt securities include commingled funds, which represent investments in funds
Cash and equivalents, equity securities and debt securities include commingled funds, which represent investments in funds
offered to institutional investors that are similar to mutual funds in that they provide diversification by holding various equity and
offered to institutional investors that are similar to mutual funds in that they provide diversification by holding various equity and
offered to institutional investors that are similar to mutual funds in that they provide diversification by holding various equity and
offered to institutional investors that are similar to mutual funds in that they provide diversification by holding various equity and
debt securities. The fair value of the commingled funds is determined and published by the fund(cid:6)s investment managers and is the
debt securities. The fair value of the commingled funds is determined and published by the fund(cid:6)s investment managers and is the
debt securities. The fair value of the commingled funds is determined and published by the fund(cid:6)s investment managers and is the
debt securities. The fair value of the commingled funds is determined and published by the fund(cid:6)s investment managers and is the
basis for current transactions, therefore, they are categori(cid:81)ed as Level 1 in the table above. Debt securities are valued based on
basis for current transactions, therefore, they are categori(cid:81)ed as Level 1 in the table above. Debt securities are valued based on
basis for current transactions, therefore, they are categori(cid:81)ed as Level 1 in the table above. Debt securities are valued based on
basis for current transactions, therefore, they are categori(cid:81)ed as Level 1 in the table above. Debt securities are valued based on
same day actual trading prices, if available. If such prices are not available, we use a matrix pricing model with historical prices,
same day actual trading prices, if available. If such prices are not available, we use a matrix pricing model with historical prices,
same day actual trading prices, if available. If such prices are not available, we use a matrix pricing model with historical prices,
same day actual trading prices, if available. If such prices are not available, we use a matrix pricing model with historical prices,
trends and other factors.
trends and other factors.
trends and other factors.
trends and other factors.
Private investment partnerships represents interests in funds which invest in equity, debt and other financial assets. These funds
Private investment partnerships represents interests in funds which invest in equity, debt and other financial assets. These funds
Private investment partnerships represents interests in funds which invest in equity, debt and other financial assets. These funds
Private investment partnerships represents interests in funds which invest in equity, debt and other financial assets. These funds
are generally not publicly traded so the interests therein are valued using income and market methods that include cash flow
are generally not publicly traded so the interests therein are valued using income and market methods that include cash flow
are generally not publicly traded so the interests therein are valued using income and market methods that include cash flow
are generally not publicly traded so the interests therein are valued using income and market methods that include cash flow
pro(cid:65)ections and market multiples for various comparable investments. Real estate includes owned properties and limited
pro(cid:65)ections and market multiples for various comparable investments. Real estate includes owned properties and limited
pro(cid:65)ections and market multiples for various comparable investments. Real estate includes owned properties and limited
pro(cid:65)ections and market multiples for various comparable investments. Real estate includes owned properties and limited
partnership interests in real estate partnerships. Owned properties are valued using certified appraisals at least every three
partnership interests in real estate partnerships. Owned properties are valued using certified appraisals at least every three
partnership interests in real estate partnerships. Owned properties are valued using certified appraisals at least every three
partnership interests in real estate partnerships. Owned properties are valued using certified appraisals at least every three
years that are updated at least annually by the real estate investment manager based on current market trends and other available
years that are updated at least annually by the real estate investment manager based on current market trends and other available
years that are updated at least annually by the real estate investment manager based on current market trends and other available
years that are updated at least annually by the real estate investment manager based on current market trends and other available
information. These appraisals generally use the standard methods for valuing real estate, including forecasting income and
information. These appraisals generally use the standard methods for valuing real estate, including forecasting income and
information. These appraisals generally use the standard methods for valuing real estate, including forecasting income and
information. These appraisals generally use the standard methods for valuing real estate, including forecasting income and
identifying current transactions for comparable real estate to arrive at a fair value. Limited partnership interests in real estate
identifying current transactions for comparable real estate to arrive at a fair value. Limited partnership interests in real estate
identifying current transactions for comparable real estate to arrive at a fair value. Limited partnership interests in real estate
identifying current transactions for comparable real estate to arrive at a fair value. Limited partnership interests in real estate
partnerships are valued similarly to private investment partnerships, with the general partner using standard real estate valuation
partnerships are valued similarly to private investment partnerships, with the general partner using standard real estate valuation
partnerships are valued similarly to private investment partnerships, with the general partner using standard real estate valuation
partnerships are valued similarly to private investment partnerships, with the general partner using standard real estate valuation
methods to value the real estate properties and securities held within their portfolios. Neither private investment nor real estate
methods to value the real estate properties and securities held within their portfolios. Neither private investment nor real estate
methods to value the real estate properties and securities held within their portfolios. Neither private investment nor real estate
methods to value the real estate properties and securities held within their portfolios. Neither private investment nor real estate
partnerships are sub(cid:65)ect to leveling within the fair value hierarchy.
partnerships are sub(cid:65)ect to leveling within the fair value hierarchy.
partnerships are sub(cid:65)ect to leveling within the fair value hierarchy.
partnerships are sub(cid:65)ect to leveling within the fair value hierarchy.
The table below presents a reconciliation of the fair value measurements for owned real estate properties, which use significant
The table below presents a reconciliation of the fair value measurements for owned real estate properties, which use significant
The table below presents a reconciliation of the fair value measurements for owned real estate properties, which use significant
The table below presents a reconciliation of the fair value measurements for owned real estate properties, which use significant
unobservable inputs (Level 3):
unobservable inputs (Level 3):
unobservable inputs (Level 3):
unobservable inputs (Level 3):
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(In millions)
(In millions)
(In millions)
(In millions)
Balance at beginning of year
Balance at beginning of year
Balance at beginning of year
Balance at beginning of year
(cid:47)nreali(cid:81)ed losses, net
(cid:47)nreali(cid:81)ed losses, net
(cid:47)nreali(cid:81)ed losses, net
(cid:47)nreali(cid:81)ed losses, net
Reali(cid:81)ed gains, net
Reali(cid:81)ed gains, net
Reali(cid:81)ed gains, net
Reali(cid:81)ed gains, net
Purchases, sales and settlements, net
Purchases, sales and settlements, net
Purchases, sales and settlements, net
Purchases, sales and settlements, net
Balance at end of year
Balance at end of year
Balance at end of year
Balance at end of year
(cid:24)(cid:65)timate(cid:50)(cid:1)(cid:25)(cid:67)t(cid:67)(cid:64)e(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:1)(cid:28)m(cid:62)a(cid:49)t
(cid:24)(cid:65)timate(cid:50)(cid:1)(cid:25)(cid:67)t(cid:67)(cid:64)e(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:1)(cid:28)m(cid:62)a(cid:49)t
(cid:24)(cid:65)timate(cid:50)(cid:1)(cid:25)(cid:67)t(cid:67)(cid:64)e(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:1)(cid:28)m(cid:62)a(cid:49)t
(cid:24)(cid:65)timate(cid:50)(cid:1)(cid:25)(cid:67)t(cid:67)(cid:64)e(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:1)(cid:28)m(cid:62)a(cid:49)t
Defined benefits under salaried plans are based on salary and years of service. (cid:34)ourly plans generally provide benefits based on
Defined benefits under salaried plans are based on salary and years of service. (cid:34)ourly plans generally provide benefits based on
Defined benefits under salaried plans are based on salary and years of service. (cid:34)ourly plans generally provide benefits based on
Defined benefits under salaried plans are based on salary and years of service. (cid:34)ourly plans generally provide benefits based on
stated amounts for each year of service. Our funding policy is consistent with applicable laws and regulations. In 2024, we
stated amounts for each year of service. Our funding policy is consistent with applicable laws and regulations. In 2024, we
stated amounts for each year of service. Our funding policy is consistent with applicable laws and regulations. In 2024, we
stated amounts for each year of service. Our funding policy is consistent with applicable laws and regulations. In 2024, we
expect to contribute approximately (cid:3)(cid:20)0 million to our pension plans. Benefit payments provided below reflect expected future
expect to contribute approximately (cid:3)(cid:20)0 million to our pension plans. Benefit payments provided below reflect expected future
expect to contribute approximately (cid:3)(cid:20)0 million to our pension plans. Benefit payments provided below reflect expected future
expect to contribute approximately (cid:3)(cid:20)0 million to our pension plans. Benefit payments provided below reflect expected future
employee service, as appropriate, and are expected to be paid, net of estimated participant contributions. These payments are
employee service, as appropriate, and are expected to be paid, net of estimated participant contributions. These payments are
employee service, as appropriate, and are expected to be paid, net of estimated participant contributions. These payments are
employee service, as appropriate, and are expected to be paid, net of estimated participant contributions. These payments are
based on the same assumptions used to measure our benefit obligation at the end of 2023. (cid:49)hile pension benefit payments
based on the same assumptions used to measure our benefit obligation at the end of 2023. (cid:49)hile pension benefit payments
based on the same assumptions used to measure our benefit obligation at the end of 2023. (cid:49)hile pension benefit payments
based on the same assumptions used to measure our benefit obligation at the end of 2023. (cid:49)hile pension benefit payments
primarily will be paid out of qualified pension trusts, we will pay postretirement benefits other than pensions out of our general
primarily will be paid out of qualified pension trusts, we will pay postretirement benefits other than pensions out of our general
primarily will be paid out of qualified pension trusts, we will pay postretirement benefits other than pensions out of our general
primarily will be paid out of qualified pension trusts, we will pay postretirement benefits other than pensions out of our general
corporate assets. Benefit payments that we expect to pay on an undiscounted basis are as follows:
corporate assets. Benefit payments that we expect to pay on an undiscounted basis are as follows:
corporate assets. Benefit payments that we expect to pay on an undiscounted basis are as follows:
corporate assets. Benefit payments that we expect to pay on an undiscounted basis are as follows:
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:20)(cid:21)9 (cid:3)
(cid:20)(cid:21)9 (cid:3)
(cid:20)(cid:21)9 (cid:3)
(cid:20)(cid:21)9 (cid:3)
((cid:21)0)
((cid:21)0)
((cid:21)0)
((cid:21)0)
10
10
10
10
(11)
(11)
(11)
(11)
(cid:20)0(cid:23) (cid:3)
(cid:20)0(cid:23) (cid:3)
(cid:20)0(cid:23) (cid:3)
(cid:20)0(cid:23) (cid:3)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:20)99
(cid:20)99
(cid:20)99
(cid:20)99
(10)
(10)
(10)
(10)
11
11
11
11
(31)
(31)
(31)
(31)
(cid:20)(cid:21)9
(cid:20)(cid:21)9
(cid:20)(cid:21)9
(cid:20)(cid:21)9
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(In millions)
(In millions)
(In millions)
(In millions)
Pension benefits
Pension benefits
Pension benefits
Pension benefits
Postretirement benefits other than pensions
Postretirement benefits other than pensions
Postretirement benefits other than pensions
Postretirement benefits other than pensions
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:13)
(cid:11)(cid:9)(cid:11)(cid:13)
(cid:11)(cid:9)(cid:11)(cid:13)
(cid:11)(cid:9)(cid:11)(cid:13)
4(cid:20)(cid:20) (cid:3)
4(cid:20)(cid:20) (cid:3)
4(cid:20)(cid:20) (cid:3)
4(cid:20)(cid:20) (cid:3)
17
17
17
17
(cid:11)(cid:9)(cid:11)(cid:14)
(cid:11)(cid:9)(cid:11)(cid:14)
(cid:11)(cid:9)(cid:11)(cid:14)
(cid:11)(cid:9)(cid:11)(cid:14)
4(cid:21)3 (cid:3)
4(cid:21)3 (cid:3)
4(cid:21)3 (cid:3)
4(cid:21)3 (cid:3)
17
17
17
17
(cid:11)(cid:9)(cid:11)(cid:15)
(cid:11)(cid:9)(cid:11)(cid:15)
(cid:11)(cid:9)(cid:11)(cid:15)
(cid:11)(cid:9)(cid:11)(cid:15)
471 (cid:3)
471 (cid:3)
471 (cid:3)
471 (cid:3)
1(cid:21)
1(cid:21)
1(cid:21)
1(cid:21)
(cid:11)(cid:9)(cid:11)(cid:16)
(cid:11)(cid:9)(cid:11)(cid:16)
(cid:11)(cid:9)(cid:11)(cid:16)
(cid:11)(cid:9)(cid:11)(cid:16)
4(cid:23)0 (cid:3)
4(cid:23)0 (cid:3)
4(cid:23)0 (cid:3)
4(cid:23)0 (cid:3)
1(cid:20)
1(cid:20)
1(cid:20)
1(cid:20)
(cid:11)(cid:9)(cid:11)(cid:17)
(cid:11)(cid:9)(cid:11)(cid:17)
(cid:11)(cid:9)(cid:11)(cid:17)
(cid:11)(cid:9)(cid:11)(cid:17)
4(cid:23)7 (cid:3)
4(cid:23)7 (cid:3)
4(cid:23)7 (cid:3)
4(cid:23)7 (cid:3)
14
14
14
14
(cid:11)(cid:9)(cid:11)(cid:18)(cid:7)(cid:11)(cid:9)(cid:12)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:18)(cid:7)(cid:11)(cid:9)(cid:12)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:18)(cid:7)(cid:11)(cid:9)(cid:12)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:18)(cid:7)(cid:11)(cid:9)(cid:12)(cid:12)
2,(cid:20)01
2,(cid:20)01
2,(cid:20)01
2,(cid:20)01
(cid:20)(cid:21)
(cid:20)(cid:21)
(cid:20)(cid:21)
(cid:20)(cid:21)
62 Textron 2023 Annual Report
(cid:21)2
(cid:21)2
(cid:21)2
(cid:21)2
N(cid:61)te(cid:1)(cid:10)(cid:15)(cid:8)(cid:1)(cid:38)(cid:62)e(cid:49)ial(cid:1)(cid:22)(cid:54)a(cid:64)(cid:53)e(cid:65)
Special charges recorded in 2023 and 2021 by segment and type of cost are as follows:
(In millions)
(cid:11)(cid:9)(cid:11)(cid:12)
Industrial
Bell
Textron Systems
Total special charges
(cid:11)(cid:9)(cid:11)(cid:10)
Industrial
Total special charges
(cid:38)e(cid:68)e(cid:64)a(cid:60)(cid:49)e
(cid:22)(cid:61)(cid:65)t(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t
Te(cid:64)mi(cid:60)ati(cid:61)(cid:60)(cid:65)
a(cid:60)(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)
(cid:20)(cid:65)(cid:65)et
(cid:28)m(cid:62)ai(cid:64)me(cid:60)t(cid:65)
T(cid:61)tal(cid:1)
(cid:37)e(cid:65)t(cid:64)(cid:67)(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)
(cid:22)(cid:54)a(cid:64)(cid:53)e(cid:65)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
21 (cid:3)
13
(cid:20)
39 (cid:3)
4 (cid:3)
4 (cid:3)
(cid:85) (cid:3)
(cid:85)
(cid:85)
(cid:85) (cid:3)
9 (cid:3)
9 (cid:3)
(cid:23)7 (cid:3)
(cid:85)
(cid:85)
(cid:23)7 (cid:3)
12 (cid:3)
12 (cid:3)
10(cid:23)
13
(cid:20)
12(cid:21)
2(cid:20)
2(cid:20)
(cid:12)(cid:10)(cid:12)(cid:13) (cid:36)(cid:55)(cid:44)(cid:42)i(cid:40)l (cid:22)(cid:47)(cid:40)(cid:57)(cid:46)(cid:44)s
In the fourth quarter of 2023, our Board of Directors approved a restructuring plan developed by management in connection with
the Company(cid:88)s annual operating plan process. The plan will reduce operating expenses through headcount reductions at the
Industrial, Bell and Textron Systems segments. In the Industrial segment, the plan included headcount reductions at Textron
Speciali(cid:81)ed Vehicles, resulting from lower demand for certain of our powersports products which we anticipate will continue, and
at Kautex, due to reduced demand for fuel systems from European automotive manufacturers. In both the Bell and Textron
Systems segments, the plan included targeted headcount reductions to improve the segments(cid:88) cost structures and realign their
workforces as these segments transition from legacy production contracts to more development, engineering focused contracts.
(cid:49)e recorded severance cost of (cid:3)39 million related to this plan and expect a reduction of approximately 72(cid:20) positions,
representing 2(cid:4) of our global workforce. (cid:49)e anticipate that this plan will be substantially completed in the first half of 2024.
As a result of lower demand described above, we recogni(cid:81)ed asset impairment charges of (cid:3)7(cid:20) million at Textron Speciali(cid:81)ed
Vehicles related to both fixed and intangible assets and (cid:3)12 million of fixed asset impairment charges at Kautex. The fair value of
these assets was determined utili(cid:81)ing a discounted cash flow methodology that reflected the impact of lower anticipated demand
for the powersports and fuel systems products on future revenues and profit.
(cid:12)(cid:10)(cid:12)(cid:11) (cid:36)(cid:55)(cid:44)(cid:42)i(cid:40)l (cid:22)(cid:47)(cid:40)(cid:57)(cid:46)(cid:44)s
In 2020, we initiated a restructuring plan to reduce operating expenses through headcount reductions, facility consolidations and
other actions in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic. (cid:47)pon completion
of this plan, we recorded total charges of (cid:3)133 million, of which (cid:3)2(cid:20) million was incurred in 2021 at the Industrial segment.
(cid:37)e(cid:65)t(cid:64)(cid:67)(cid:49)t(cid:67)(cid:64)i(cid:60)(cid:53)(cid:1)(cid:37)e(cid:65)e(cid:64)(cid:68)e
Our restructuring reserve activity is summari(cid:81)ed below:
(In millions)
Balance at January 1, 2022
Cash paid
Foreign currency translation
Balance at December 31, 2022
Provision for 2023 restructuring plan
Cash paid
Foreign currency translation
Balance at December 30, 2023
The ma(cid:65)ority of the remaining cash outlays is expected to be paid in 2024.
(cid:38)e(cid:68)e(cid:64)a(cid:60)(cid:49)e
(cid:22)(cid:61)(cid:65)t(cid:65)
(cid:22)(cid:61)(cid:60)t(cid:64)a(cid:49)t
Te(cid:64)mi(cid:60)ati(cid:61)(cid:60)(cid:65)
a(cid:60)(cid:50)(cid:1)(cid:34)t(cid:54)e(cid:64)
(cid:3)
(cid:3)
(cid:3)
19 (cid:3)
(13)
(1)
(cid:20) (cid:3)
39
(3)
1
42 (cid:3)
9 (cid:3)
(2)
(cid:85)
7 (cid:3)
(cid:85)
(2)
(cid:85)
(cid:20) (cid:3)
T(cid:61)tal
2(cid:23)
(1(cid:20))
(1)
12
39
((cid:20))
1
47
(cid:21)3
Textron 2023 Annual Report 63
N(cid:61)te(cid:1)(cid:10)(cid:16)(cid:8)(cid:1)(cid:28)(cid:60)(cid:49)(cid:61)me(cid:1)Ta(cid:70)e(cid:65)
(cid:49)e conduct business globally and, as a result, file numerous consolidated and separate income tax returns within and outside the
(cid:47).S. For all of our (cid:47).S. subsidiaries, we file a consolidated federal income tax return. Income from continuing operations before
income taxes is as follows:
(In millions)
(cid:47).S.
Non-(cid:47).S.
Income from continuing operations before income taxes
Income tax expense is summari(cid:81)ed as follows:
(In millions)
Current expense:
Federal
State
Non-(cid:47).S.
Deferred expense (benefit):
Federal
State
Non-(cid:47).S.
Income tax expense
(cid:11)(cid:9)(cid:11)(cid:12)
90(cid:20) (cid:3)
1(cid:23)2
1,0(cid:23)7 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:23)10 (cid:3)
20(cid:21)
1,01(cid:21) (cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
2(cid:21)7 (cid:3)
1(cid:23)
72
3(cid:20)7
(1(cid:23)1)
1
(12)
(192)
1(cid:21)(cid:20) (cid:3)
272 (cid:3)
33
(cid:21)9
374
(1(cid:23)2)
(29)
(9)
(220)
1(cid:20)4 (cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:10)
(cid:21)99
174
(cid:23)73
(cid:11)(cid:9)(cid:11)(cid:10)
41
1(cid:20)
47
103
3(cid:20)
(10)
(2)
23
12(cid:21)
The following table reconciles the federal statutory income tax rate to our effective income tax rate:
(cid:47).S. Federal statutory income tax rate
Increase (decrease) resulting from:
Research and development tax credits
Foreign-derived intangible income deduction (a)
Non-(cid:47).S. tax rate differential and foreign tax credits
State income taxes (net of federal impact)
Other, net
Effective income tax rate
(cid:11)(cid:9)(cid:11)(cid:12)
21.0 (cid:4)
(4.7)
(3.2)
1.(cid:20)
1.4
(0.(cid:23))
1(cid:20).2 (cid:4)
(cid:11)(cid:9)(cid:11)(cid:11)
21.0 (cid:4)
((cid:20).0)
(2.(cid:20))
1.(cid:23)
0.3
(0.4)
1(cid:20).2 (cid:4)
(cid:11)(cid:9)(cid:11)(cid:10)
21.0 (cid:4)
(7.0)
(cid:85)
1.3
0.(cid:20)
(1.4)
14.4 (cid:4)
((cid:40))
In (cid:12)(cid:10)(cid:12)(cid:13) (cid:40)n(cid:43) (cid:12)(cid:10)(cid:12)(cid:12)(cid:6) (cid:59)(cid:47)(cid:44) (cid:45)o(cid:57)(cid:44)i(cid:46)n(cid:7)(cid:43)(cid:44)(cid:57)i(cid:61)(cid:44)(cid:43) in(cid:59)(cid:40)n(cid:46)i(cid:41)l(cid:44) in(cid:42)om(cid:44) (cid:43)(cid:44)(cid:43)(cid:60)(cid:42)(cid:59)ion is (cid:55)(cid:57)im(cid:40)(cid:57)il(cid:64) (cid:43)(cid:60)(cid:44) (cid:59)o (cid:59)(cid:47)(cid:44) im(cid:55)(cid:40)(cid:42)(cid:59) o(cid:45) (cid:42)(cid:40)(cid:55)i(cid:59)(cid:40)li(cid:65)in(cid:46) (cid:57)(cid:44)s(cid:44)(cid:40)(cid:57)(cid:42)(cid:47) (cid:40)n(cid:43) (cid:43)(cid:44)(cid:61)(cid:44)lo(cid:55)m(cid:44)n(cid:59) (cid:44)(cid:63)(cid:55)(cid:44)n(cid:43)i(cid:59)(cid:60)(cid:57)(cid:44)s (cid:45)o(cid:57)
(cid:59)(cid:40)(cid:63)(cid:7)(cid:55)(cid:60)(cid:57)(cid:55)os(cid:44)s (cid:44)(cid:45)(cid:45)(cid:44)(cid:42)(cid:59)i(cid:61)(cid:44) on (cid:29)(cid:40)n(cid:60)(cid:40)(cid:57)(cid:64) (cid:11)(cid:6) (cid:12)(cid:10)(cid:12)(cid:12) (cid:40)s (cid:55)(cid:40)(cid:57)(cid:59) o(cid:45) (cid:59)(cid:47)(cid:44) (cid:37)(cid:40)(cid:63) (cid:22)(cid:60)(cid:59)s (cid:40)n(cid:43) (cid:29)o(cid:41)s (cid:20)(cid:42)(cid:59) o(cid:45) (cid:12)(cid:10)(cid:11)(cid:17)(cid:8)
(cid:40)(cid:60)(cid:64)e(cid:49)(cid:61)(cid:53)(cid:60)i(cid:72)e(cid:50)(cid:1)Ta(cid:70)(cid:1)(cid:21)e(cid:60)e(cid:52)it(cid:65)
Our unrecogni(cid:81)ed tax benefits represent tax positions for which reserves have been established, with unrecogni(cid:81)ed state tax
benefits reflected net of applicable federal tax benefits. At the end of 2023, 2022 and 2021, if our unrecogni(cid:81)ed tax benefits were
recogni(cid:81)ed in future periods, they would favorably impact our effective tax rate. A reconciliation of these unrecogni(cid:81)ed tax
benefits is as follows:
(In millions)
Balance at beginning of year
Additions for tax positions related to current year
Additions for tax positions of prior years
Reductions for tax positions of prior years
Reductions for settlements and expiration of statute of limitations
Balance at end of year
(cid:3)
(cid:3)
(cid:11)(cid:9)(cid:11)(cid:12)
231 (cid:3)
1(cid:21)
3
(2(cid:23))
(cid:85)
222 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:11)
207 (cid:3)
24
(cid:85)
(cid:85)
(cid:85)
231 (cid:3)
(cid:11)(cid:9)(cid:11)(cid:10)
1(cid:23)3
21
10
(4)
(3)
207
In the normal course of business, we are sub(cid:65)ect to examination by tax authorities throughout the world. (cid:49)e are generally no
longer sub(cid:65)ect to (cid:47).S. federal tax examinations for years before 2014, except for additional 2012 and 2013 research and
64 Textron 2023 Annual Report
(cid:21)4
development tax credits generated through amended returns filed in 2019. (cid:49)e are generally no longer sub(cid:65)ect to state and local
income tax examinations for years before 201(cid:23) and non-(cid:47).S. income tax examinations for years before 2011.
(cid:23)e(cid:52)e(cid:64)(cid:64)e(cid:50)(cid:1)Ta(cid:70)e(cid:65)
The significant components of our net deferred tax assets/(liabilities) are provided below:
(In millions)
Capitali(cid:81)ed research and development expenditures
Accrued liabilities (a)
(cid:47).S. operating loss and tax credit carryforwards (b)
Obligation for pension and postretirement benefits
Deferred compensation
Operating lease liabilities
Non-(cid:47).S. operating loss and tax credit carryforwards (c)
Prepaid pension benefits
Property, plant and equipment, principally depreciation
Amorti(cid:81)ation of goodwill and other intangibles
Operating lease right-of-use assets
Valuation allowance on deferred tax assets
Other leasing transactions, principally leveraged leases
Other, net
Deferred taxes, net
(cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:20)20 (cid:3)
22(cid:23)
21(cid:21)
123
103
102
73
(3(cid:23)7)
(211)
(1(cid:23)(cid:20))
(99)
((cid:23)2)
(47)
((cid:20))
349 (cid:3)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
319
209
2(cid:20)7
117
10(cid:23)
102
(cid:20)3
(34(cid:23))
(222)
(194)
(99)
(99)
((cid:20)3)
(22)
12(cid:23)
(cid:3)
((cid:40)) (cid:20)(cid:42)(cid:42)(cid:57)(cid:60)(cid:44)(cid:43) li(cid:40)(cid:41)ili(cid:59)i(cid:44)s in(cid:42)l(cid:60)(cid:43)(cid:44) (cid:62)(cid:40)(cid:57)(cid:57)(cid:40)n(cid:59)(cid:64) (cid:57)(cid:44)s(cid:44)(cid:57)(cid:61)(cid:44)s(cid:6) s(cid:44)l(cid:45)(cid:7)ins(cid:60)(cid:57)(cid:44)(cid:43) li(cid:40)(cid:41)ili(cid:59)i(cid:44)s (cid:40)n(cid:43) in(cid:59)(cid:44)(cid:57)(cid:44)s(cid:59)(cid:8)
((cid:41)) (cid:20)(cid:59) (cid:23)(cid:44)(cid:42)(cid:44)m(cid:41)(cid:44)(cid:57) (cid:13)(cid:10)(cid:6) (cid:12)(cid:10)(cid:12)(cid:13)(cid:6) (cid:38)(cid:8)(cid:36)(cid:8) o(cid:55)(cid:44)(cid:57)(cid:40)(cid:59)in(cid:46) loss (cid:40)n(cid:43) (cid:59)(cid:40)(cid:63) (cid:42)(cid:57)(cid:44)(cid:43)i(cid:59) (cid:42)(cid:40)(cid:57)(cid:57)(cid:64)(cid:45)o(cid:57)(cid:62)(cid:40)(cid:57)(cid:43) (cid:41)(cid:44)n(cid:44)(cid:45)i(cid:59)s o(cid:45) (cid:2)(cid:11)(cid:17)(cid:19) million (cid:44)(cid:63)(cid:55)i(cid:57)(cid:44) (cid:59)(cid:47)(cid:57)o(cid:60)(cid:46)(cid:47) (cid:12)(cid:10)(cid:14)(cid:13) i(cid:45) no(cid:59) (cid:60)(cid:59)ili(cid:65)(cid:44)(cid:43) (cid:40)n(cid:43) (cid:2)(cid:13)(cid:17) million m(cid:40)(cid:64) (cid:41)(cid:44)
(cid:42)(cid:40)(cid:57)(cid:57)i(cid:44)(cid:43) (cid:45)o(cid:57)(cid:62)(cid:40)(cid:57)(cid:43) in(cid:43)(cid:44)(cid:45)ini(cid:59)(cid:44)l(cid:64)(cid:8)
((cid:42)) (cid:20)(cid:59) (cid:23)(cid:44)(cid:42)(cid:44)m(cid:41)(cid:44)(cid:57) (cid:13)(cid:10)(cid:6) (cid:12)(cid:10)(cid:12)(cid:13)(cid:6) non(cid:7)(cid:38)(cid:8)(cid:36)(cid:8) o(cid:55)(cid:44)(cid:57)(cid:40)(cid:59)in(cid:46) loss (cid:40)n(cid:43) (cid:59)(cid:40)(cid:63) (cid:42)(cid:57)(cid:44)(cid:43)i(cid:59) (cid:42)(cid:40)(cid:57)(cid:57)(cid:64)(cid:45)o(cid:57)(cid:62)(cid:40)(cid:57)(cid:43) (cid:41)(cid:44)n(cid:44)(cid:45)i(cid:59)s o(cid:45) (cid:2)(cid:16)(cid:18) million m(cid:40)(cid:64) (cid:41)(cid:44) (cid:42)(cid:40)(cid:57)(cid:57)i(cid:44)(cid:43) (cid:45)o(cid:57)(cid:62)(cid:40)(cid:57)(cid:43) in(cid:43)(cid:44)(cid:45)ini(cid:59)(cid:44)l(cid:64)(cid:8)
(cid:49)e believe earnings during the period when the temporary differences become deductible will be sufficient to reali(cid:81)e the related
future income tax benefits. For those (cid:65)urisdictions where the expiration date of tax carryforwards or the pro(cid:65)ected operating results
indicate that reali(cid:81)ation is not more than likely, a valuation allowance is provided.
The following table presents the breakdown of our deferred taxes:
(In millions)
Manufacturing group:
Deferred tax assets, net of valuation allowance
Deferred tax liabilities
Finance group (cid:84) Deferred tax liabilities
Net deferred tax asset
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:9)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:23)e(cid:49)em(cid:48)e(cid:64)(cid:1)(cid:12)(cid:10)(cid:6)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:3)
(cid:3)
443 (cid:3)
((cid:20)(cid:21))
(3(cid:23))
349 (cid:3)
223
((cid:20)2)
(43)
12(cid:23)
Non-(cid:47).S. and (cid:47).S. state income taxes have not been provided for on basis differences in certain investments, primarily as a result
of unremitted earnings in foreign subsidiaries that are indefinitely reinvested, totaling (cid:3)1.(cid:21) billion at both December 30, 2023 and
December 31, 2022. Should these earnings be distributed in the future in the form of dividends or otherwise, we would be sub(cid:65)ect
to withholding and local taxes to various non-(cid:47).S. (cid:65)urisdictions and (cid:47).S. states. Determination of the deferred tax liability
associated with indefinitely reinvested earnings is not practicable due to multiple factors, including the complexity of non-(cid:47).S.
tax laws and tax treaty interpretations, exchange rate fluctuations, and the uncertainty of available credits or exemptions.
(cid:21)(cid:20)
Textron 2023 Annual Report 65
N(cid:61)te(cid:1)(cid:10)(cid:17)(cid:8)(cid:1)(cid:22)(cid:61)mmitme(cid:60)t(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:22)(cid:61)(cid:60)ti(cid:60)(cid:53)e(cid:60)(cid:49)ie(cid:65)
(cid:49)e are sub(cid:65)ect to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including
proceedings and claims relating to commercial and financial transactions(cid:26) government contracts(cid:26) alleged lack of compliance with
applicable laws and regulations(cid:26) disputes with suppliers, production partners or other third parties(cid:26) product liability(cid:26) patent and
trademark infringement(cid:26) employment disputes(cid:26) and environmental, health and safety matters. Some of these legal proceedings and
claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government
contractor, we are sub(cid:65)ect to audits, reviews and investigations to determine whether our operations are being conducted in
accordance with applicable regulatory requirements. (cid:47)nder federal government procurement regulations, certain claims brought
by the (cid:47).S. Government could result in our suspension or debarment from (cid:47).S. Government contracting for a period of time. On
the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on
our financial position or results of operations.
In the ordinary course of business, we enter into standby letter of credit agreements and surety bonds with financial institutions to
meet various performance and other obligations. These outstanding letter of credit arrangements and surety bonds aggregated to
approximately (cid:3)33(cid:23) million and (cid:3)2(cid:23)(cid:20) million at December 30, 2023 and December 31, 2022, respectively.
(cid:24)(cid:60)(cid:68)i(cid:64)(cid:61)(cid:60)me(cid:60)tal(cid:1)(cid:37)eme(cid:50)iati(cid:61)(cid:60)
As with other industrial enterprises engaged in similar businesses, we are involved in a number of remedial actions under various
federal and state laws and regulations relating to the environment that impose liability on companies to clean up, or contribute to
the cost of cleaning up, sites on which ha(cid:81)ardous wastes or materials were disposed or released. Our accrued environmental
liabilities relate to installation of remediation systems, disposal costs, (cid:47).S. Environmental Protection Agency oversight costs,
legal fees, and operating and maintenance costs for both currently and formerly owned or operated facilities. Circumstances that
can affect the reliability and precision of the accruals include the identification of additional sites, environmental regulations, level
of cleanup required, technologies available, number and financial condition of other contributors to remediation and the time
period over which remediation may occur. (cid:49)e believe that any changes to the accruals that may result from these factors and
uncertainties will not have a material effect on our financial position or results of operations.
Based upon information currently available, we estimate that our potential environmental liabilities are within the range of (cid:3)40
million to (cid:3)14(cid:20) million. At December 30, 2023, environmental reserves of (cid:3)74 million have been established to address these
specific estimated liabilities. (cid:49)e estimate that we will likely pay our accrued environmental remediation liabilities over the
next ten years and have classified (cid:3)1(cid:21) million as current liabilities. In 2023, 2022 and 2021, to evaluate and remediate
contaminated sites, we incurred expense, net of recoveries received, of (cid:3)(cid:23) million, (cid:3)9 million and (cid:3)(cid:21) million, respectively.
N(cid:61)te(cid:1)(cid:10)(cid:18)(cid:8)(cid:1)(cid:38)(cid:67)(cid:62)(cid:62)leme(cid:60)tal(cid:1)(cid:22)a(cid:65)(cid:54)(cid:1)(cid:25)l(cid:61)(cid:69)(cid:1)(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)
Our cash payments and receipts are as follows:
(In millions)
Interest paid:
Manufacturing group
Finance group
Net income taxes paid:
Manufacturing group
Finance group
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:3)
110 (cid:3)
12
110 (cid:3)
13
33(cid:23)
14
332
24
(cid:11)(cid:9)(cid:11)(cid:10)
12(cid:23)
17
72
21
66 Textron 2023 Annual Report
(cid:21)(cid:21)
(cid:37)e(cid:62)(cid:61)(cid:64)t(cid:1)(cid:61)(cid:52)(cid:1)(cid:28)(cid:60)(cid:50)e(cid:62)e(cid:60)(cid:50)e(cid:60)t(cid:1)(cid:37)e(cid:53)i(cid:65)te(cid:64)e(cid:50)(cid:1)(cid:35)(cid:67)(cid:48)li(cid:49)(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ti(cid:60)(cid:53)(cid:1)(cid:25)i(cid:64)m
To the Shareholders and the Board of Directors of Textron Inc.
(cid:34)(cid:62)i(cid:60)i(cid:61)(cid:60)(cid:1)(cid:61)(cid:60)(cid:1)t(cid:54)e(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:65)
(cid:49)e have audited the accompanying Consolidated Balance Sheets of Textron Inc. (the Company) as of December 30, 2023 and
December 31, 2022, the related Consolidated Statements of Operations, Comprehensive Income, Shareholders(cid:88) Equity and Cash
Flows for each of the three years in the period ended December 30, 2023, and the related notes and the financial statement
schedule listed in the Index at Item (cid:23) (collectively referred to as the (cid:86)consolidated financial statements(cid:87)). In our opinion, the
consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 30,
2023 and December 31, 2022 and the results of its operations and its cash flows for each of the three years in the period ended
December 30, 2023, in conformity with (cid:47).S. generally accepted accounting principles.
(cid:49)e also have audited, in accordance with the standards of the Public Company Accounting Oversight Board ((cid:47)nited States)
(PCAOB), the Company(cid:88)s internal control over financial reporting as of December 30, 2023, based on criteria established in
Internal Control (cid:84) Integrated Framework issued by the Committee of Sponsoring Organi(cid:81)ations of the Treadway Commission
(2013 Framework) and our report dated February 12, 2024 expressed an unqualified opinion thereon.
(cid:21)a(cid:65)i(cid:65)(cid:1)(cid:52)(cid:61)(cid:64)(cid:1)(cid:34)(cid:62)i(cid:60)i(cid:61)(cid:60)
These financial statements are the responsibility of the Company(cid:88)s management. Our responsibility is to express an opinion on the
Company(cid:88)s financial statements based on our audits. (cid:49)e are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the (cid:47).S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
(cid:49)e conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements,
whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a
test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the
accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the
financial statements. (cid:49)e believe that our audits provide a reasonable basis for our opinion.
(cid:22)(cid:64)iti(cid:49)al(cid:1)(cid:20)(cid:67)(cid:50)it(cid:1)(cid:32)atte(cid:64)(cid:65)
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that
were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are
material to the financial statements and (2) involved our especially challenging, sub(cid:65)ective or complex (cid:65)udgments. The
communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a
whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters
or on the accounts or disclosures to which they relate.
(cid:23)(cid:44)s(cid:42)(cid:57)i(cid:55)(cid:59)ion o(cid:45) (cid:59)(cid:47)(cid:44)
(cid:30)(cid:40)(cid:59)(cid:59)(cid:44)(cid:57)
(cid:21)evenue (cid:21)ecognition (cid:5) (cid:12)stimates at (cid:10)ompletion for Select (cid:16)ong (cid:23)erm (cid:10)ontracts
As described in Note 1 to the consolidated financial statements, revenues under long-term contracts with
the (cid:47).S. Government are generally recogni(cid:81)ed over time using the cost-to-cost method of accounting.
(cid:47)nder this method, the extent of progress towards completion is measured based on the ratio of costs
incurred to date to the estimated costs at completion, and revenue is recorded proportionally as costs are
incurred. Contract costs, which are estimated utili(cid:81)ing current contract specifications and expected
engineering requirements, typically are incurred over a period of several years, and the estimation of
these costs at completion requires substantial (cid:65)udgment. The Company(cid:88)s cost estimation process is
based on professional knowledge and experience of engineers and program managers along with finance
professionals. The Company updates its pro(cid:65)ections of costs quarterly or more frequently when
circumstances significantly change. (cid:49)hen ad(cid:65)ustments are required, any changes from prior estimates
are recogni(cid:81)ed using the cumulative catch-up method with the impact of the change from inception-to-
date of the contract recorded in the current period and required disclosure is provided in the
consolidated financial statements. Anticipated losses on contracts are recogni(cid:81)ed in full in the period in
which losses become probable and estimable.
(cid:21)7
Textron 2023 Annual Report 67
Auditing the Company(cid:88)s estimated costs at completion for select long-term contracts was challenging
and complex due to the (cid:65)udgment involved in evaluating management(cid:88)s assumptions and key estimates
over the duration of these long-term contracts. The estimated costs at completion for the select long-
term contracts consider risks surrounding the Company(cid:88)s ability to achieve the technical requirements
and specifications of the contract, schedule, and other cost elements of the contract, and depend on
whether the Company is able to successfully retire risks surrounding such aspects of the contract.
(cid:27)o(cid:62) (cid:39)(cid:44) (cid:20)(cid:43)(cid:43)(cid:57)(cid:44)ss(cid:44)(cid:43)
(cid:59)(cid:47)(cid:44) (cid:30)(cid:40)(cid:59)(cid:59)(cid:44)(cid:57) in (cid:32)(cid:60)(cid:57)
(cid:20)(cid:60)(cid:43)i(cid:59)
(cid:49)e obtained an understanding, evaluated the design and tested the operating effectiveness of the
controls related to the Company(cid:88)s revenue recognition process, including controls over management(cid:88)s
review of the estimated costs at completion for the select long-term contracts and related key
assumptions and management(cid:88)s review that the data underlying the estimated costs at completion was
complete and accurate.
(cid:23)(cid:44)s(cid:42)(cid:57)i(cid:55)(cid:59)ion o(cid:45) (cid:59)(cid:47)(cid:44)
(cid:30)(cid:40)(cid:59)(cid:59)(cid:44)(cid:57)
To test the accuracy of the Company(cid:88)s estimated costs at completion for the select long-term contracts,
our audit procedures included, among others, evaluating the key assumptions used by management to
determine such estimate. This included evaluating the historical accuracy of management(cid:88)s estimates by
comparing planned costs to actual costs incurred to date. (cid:49)e also tested the completeness and accuracy
of the underlying data back to source documents and contracts.
Defined (cid:9)enefit (cid:20)ension (cid:19)bligations
As described in Note 1(cid:20) to the consolidated financial statements, at December 30, 2023, the aggregate
qualified defined benefit pension obligation was (cid:3)7.2 billion and the fair value of pension plan assets
was (cid:3)(cid:23).4 billion, resulting in a net pension asset of (cid:3)1.2 billion. As explained in Note 1 to the
consolidated financial statements, the Company updates the estimates used to measure the defined
benefit pension obligation and plan assets annually in the fourth quarter or upon a remeasurement event
to reflect the actual return on plan assets and updated actuarial assumptions.
Auditing the defined benefit pension obligations was complex due to the highly (cid:65)udgmental nature of
the actuarial assumptions (e.g., discount rate, mortality rate, expected return on plan assets) used in the
measurement process. These assumptions have a significant effect on the pro(cid:65)ected benefit obligation.
(cid:27)o(cid:62) (cid:39)(cid:44) (cid:20)(cid:43)(cid:43)(cid:57)(cid:44)ss(cid:44)(cid:43)
(cid:59)(cid:47)(cid:44) (cid:30)(cid:40)(cid:59)(cid:59)(cid:44)(cid:57) in (cid:32)(cid:60)(cid:57)
(cid:20)(cid:60)(cid:43)i(cid:59)
(cid:49)e obtained an understanding, evaluated the design and tested the operating effectiveness of the
controls that address the risks of material misstatement relating to the measurement and valuation of the
defined benefit pension obligation. For example, we tested controls over management(cid:88)s review of the
defined benefit pension obligation actuarial calculations, the significant actuarial assumptions, and the
data inputs provided to the actuaries.
To test the defined benefit pension obligation, our audit procedures included, among others, evaluating
the methodology used, the significant actuarial assumptions discussed above, and the underlying data
used by management and its actuaries. (cid:49)e compared the actuarial assumptions used by management to
historical trends and evaluated the change in the defined benefit pension obligation from the prior year
due to the change in service cost, interest cost, benefit payments, actuarial gains and losses,
contributions, and plan amendments, as applicable. In addition, we involved an actuarial specialist to
assist in evaluating management(cid:88)s methodology for determining the discount rate that reflects the
maturity and duration of the benefit payments and is used to measure the defined benefit pension
obligation. As part of this assessment, we compared the pro(cid:65)ected cash flows to prior year and compared
the current year benefits paid to the prior year pro(cid:65)ected cash flows. To evaluate the mortality rate, we
assessed whether the information is consistent with publicly available information and entity-specific
data. (cid:49)e also tested the completeness and accuracy of the underlying data, including the participant
data provided to the Company(cid:88)s actuaries. Lastly, to evaluate the expected return on plan assets, we
assessed whether management(cid:88)s assumption is consistent with a range of returns for a portfolio of
comparative investments.
/s/ Ernst (cid:5) (cid:51)oung LLP
(cid:49)e have served as the Company(cid:88)s auditor since 19(cid:20)7.
Boston, Massachusetts
February 12, 2024
68 Textron 2023 Annual Report
(cid:21)(cid:23)
(cid:38)(cid:49)(cid:54)e(cid:50)(cid:67)le(cid:1)(cid:28)(cid:28)(cid:1)(cid:73)(cid:1)(cid:41)al(cid:67)ati(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:36)(cid:67)ali(cid:52)(cid:71)i(cid:60)(cid:53)(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)t(cid:65)
(In millions)
(cid:20)ll(cid:61)(cid:69)a(cid:60)(cid:49)e(cid:1)(cid:52)(cid:61)(cid:64)(cid:1)(cid:49)(cid:64)e(cid:50)it(cid:1)l(cid:61)(cid:65)(cid:65)e(cid:65)(cid:1)(cid:61)(cid:60)(cid:1)a(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)t(cid:65)(cid:1)(cid:64)e(cid:49)ei(cid:68)a(cid:48)le
Balance at beginning of year
Provision (reversal) for credit losses
Deductions from reserves*
Balance at end of year
(cid:20)ll(cid:61)(cid:69)a(cid:60)(cid:49)e(cid:1)(cid:52)(cid:61)(cid:64)(cid:1)(cid:49)(cid:64)e(cid:50)it(cid:1)l(cid:61)(cid:65)(cid:65)e(cid:65)(cid:1)(cid:61)(cid:60)(cid:1)(cid:52)i(cid:60)a(cid:60)(cid:49)e(cid:1)(cid:64)e(cid:49)ei(cid:68)a(cid:48)le(cid:65)
Balance at beginning of year
Reversal for credit losses
Charge-offs
Recoveries
Balance at end of year
(cid:28)(cid:60)(cid:68)e(cid:60)t(cid:61)(cid:64)(cid:71)(cid:1)(cid:25)(cid:28)(cid:25)(cid:34)(cid:1)(cid:64)e(cid:65)e(cid:64)(cid:68)e(cid:65)
Balance at beginning of year
Charged to costs and expenses
Deductions from reserves*
Balance at end of year
(cid:11)(cid:9)(cid:11)(cid:12)
(cid:11)(cid:9)(cid:11)(cid:11)
(cid:11)(cid:9)(cid:11)(cid:10)
24 (cid:3)
7
((cid:20))
2(cid:21) (cid:3)
24 (cid:3)
(1(cid:23))
(cid:85)
1(cid:23)
24 (cid:3)
3(cid:20)0 (cid:3)
(cid:21)3
(23)
390 (cid:3)
24 (cid:3)
2
(2)
24 (cid:3)
2(cid:20) (cid:3)
(4)
(cid:85)
3
24 (cid:3)
370 (cid:3)
21
(41)
3(cid:20)0 (cid:3)
3(cid:21)
(1)
(11)
24
3(cid:20)
(9)
(3)
2
2(cid:20)
3(cid:20)7
40
(27)
370
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:5) (cid:23)(cid:44)(cid:43)(cid:60)(cid:42)(cid:59)ions (cid:55)(cid:57)im(cid:40)(cid:57)il(cid:64) in(cid:42)l(cid:60)(cid:43)(cid:44) (cid:40)mo(cid:60)n(cid:59)s (cid:62)(cid:57)i(cid:59)(cid:59)(cid:44)n o(cid:45)(cid:45) on (cid:60)n(cid:42)oll(cid:44)(cid:42)(cid:59)i(cid:41)l(cid:44) (cid:40)(cid:42)(cid:42)o(cid:60)n(cid:59)s (l(cid:44)ss (cid:57)(cid:44)(cid:42)o(cid:61)(cid:44)(cid:57)i(cid:44)s)(cid:6) in(cid:61)(cid:44)n(cid:59)o(cid:57)(cid:64) (cid:43)is(cid:55)os(cid:40)ls(cid:6) (cid:42)(cid:47)(cid:40)n(cid:46)(cid:44)s (cid:59)o (cid:55)(cid:57)io(cid:57) (cid:64)(cid:44)(cid:40)(cid:57) (cid:44)s(cid:59)im(cid:40)(cid:59)(cid:44)s(cid:6) (cid:41)(cid:60)sin(cid:44)ss
(cid:43)is(cid:55)osi(cid:59)ions (cid:40)n(cid:43) (cid:42)(cid:60)(cid:57)(cid:57)(cid:44)n(cid:42)(cid:64) (cid:59)(cid:57)(cid:40)nsl(cid:40)(cid:59)ion (cid:40)(cid:43)(cid:49)(cid:60)s(cid:59)m(cid:44)n(cid:59)s(cid:8)
(cid:28)tem(cid:1)(cid:18)(cid:8)(cid:1)(cid:22)(cid:54)a(cid:60)(cid:53)e(cid:65)(cid:1)(cid:28)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:23)i(cid:65)a(cid:53)(cid:64)eeme(cid:60)t(cid:65)(cid:1)(cid:42)it(cid:54)(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ta(cid:60)t(cid:65)(cid:1)(cid:61)(cid:60)(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ti(cid:60)(cid:53)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:23)i(cid:65)(cid:49)l(cid:61)(cid:65)(cid:67)(cid:64)e
None.
(cid:28)tem(cid:1)(cid:18)(cid:20)(cid:8)(cid:1)(cid:22)(cid:61)(cid:60)t(cid:64)(cid:61)l(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:35)(cid:64)(cid:61)(cid:49)e(cid:50)(cid:67)(cid:64)e(cid:65)
(cid:23)is(cid:42)los(cid:60)(cid:57)(cid:44) (cid:22)on(cid:59)(cid:57)ols (cid:40)n(cid:43) (cid:33)(cid:57)o(cid:42)(cid:44)(cid:43)(cid:60)(cid:57)(cid:44)s
(cid:49)e performed an evaluation of the effectiveness of our disclosure controls and procedures as of December 30, 2023. The
evaluation was performed with the participation of senior management of each business segment and key Corporate functions,
under the supervision of our Chairman, President and Chief Executive Officer (CEO) and our Executive Vice President and Chief
Financial Officer (CFO). Based on this evaluation, the CEO and CFO concluded that our disclosure controls and procedures were
operating and effective as of December 30, 2023.
(cid:22)(cid:47)(cid:40)n(cid:46)(cid:44)s in In(cid:59)(cid:44)(cid:57)n(cid:40)l (cid:22)on(cid:59)(cid:57)ols (cid:32)(cid:61)(cid:44)(cid:57) (cid:25)in(cid:40)n(cid:42)i(cid:40)l (cid:35)(cid:44)(cid:55)o(cid:57)(cid:59)in(cid:46)
There were no changes in our internal control over financial reporting during the fourth quarter of the fiscal year covered by this
report that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
(cid:30)(cid:40)n(cid:40)(cid:46)(cid:44)m(cid:44)n(cid:59)(cid:66)s (cid:35)(cid:44)(cid:55)o(cid:57)(cid:59) on In(cid:59)(cid:44)(cid:57)n(cid:40)l (cid:22)on(cid:59)(cid:57)ol (cid:32)(cid:61)(cid:44)(cid:57) (cid:25)in(cid:40)n(cid:42)i(cid:40)l (cid:35)(cid:44)(cid:55)o(cid:57)(cid:59)in(cid:46)
Management is responsible for establishing and maintaining adequate internal control over financial reporting for Textron Inc. as
such term is defined in Exchange Act Rules 13a-1(cid:20)(f). Our internal control structure is designed to provide reasonable assurance,
at appropriate cost, that assets are safeguarded and that transactions are properly executed and recorded. The internal control
structure includes, among other things, established policies and procedures, an internal audit function, the selection and training of
qualified personnel as well as management oversight.
(cid:49)ith the participation of our management, we performed an evaluation of the effectiveness of our internal control over financial
reporting based on criteria established in Internal Control (cid:84) Integrated Framework issued by the Committee of Sponsoring
Organi(cid:81)ations of the Treadway Commission (2013 Framework). Based on our evaluation under the 2013 Framework, we have
concluded that Textron Inc. maintained, in all material respects, effective internal control over financial reporting as of
December 30, 2023.
The independent registered public accounting firm, Ernst (cid:5) (cid:51)oung LLP (PCAOB ID: 42), has audited the Consolidated Financial
Statements of Textron Inc. and has issued an attestation report on Textron(cid:88)s internal controls over financial reporting as of
December 30, 2023, as stated in its report, which is included herein.
(cid:21)9
Textron 2023 Annual Report 69
(cid:37)e(cid:62)(cid:61)(cid:64)t(cid:1)(cid:61)(cid:52)(cid:1)(cid:28)(cid:60)(cid:50)e(cid:62)e(cid:60)(cid:50)e(cid:60)t(cid:1)(cid:37)e(cid:53)i(cid:65)te(cid:64)e(cid:50)(cid:1)(cid:35)(cid:67)(cid:48)li(cid:49)(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ti(cid:60)(cid:53)(cid:1)(cid:25)i(cid:64)m
To the Shareholders and the Board of Directors of Textron Inc.
(cid:34)(cid:62)i(cid:60)i(cid:61)(cid:60)(cid:1)(cid:61)(cid:60)(cid:1)(cid:28)(cid:60)te(cid:64)(cid:60)al(cid:1)(cid:22)(cid:61)(cid:60)t(cid:64)(cid:61)l(cid:1)(cid:61)(cid:68)e(cid:64)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:37)e(cid:62)(cid:61)(cid:64)ti(cid:60)(cid:53)
(cid:49)e have audited Textron Inc.(cid:88)s internal control over financial reporting as of December 30, 2023, based on criteria established in
Internal Control(cid:85) Integrated Framework issued by the Committee of Sponsoring Organi(cid:81)ations of the Treadway Commission
(2013 Framework), (the COSO criteria). In our opinion, Textron, Inc. (the Company) maintained, in all material respects,
effective internal control over financial reporting as of December 30, 2023, based on the COSO criteria.
(cid:49)e also have audited, in accordance with the standards of the Public Company Accounting Oversight Board ((cid:47)nited States)
(PCAOB), the Consolidated Balance Sheets of the Company as of December 30, 2023 and December 31, 2022, and the related
Consolidated Statements of Operations, Comprehensive Income, Shareholders(cid:6) Equity and Cash Flows for each of the three years
in the period ended December 30, 2023, and the related notes and the financial statement schedule listed in the Index at Item (cid:23) of
the Company and our report dated February 12, 2024 expressed an unqualified opinion thereon.
(cid:21)a(cid:65)i(cid:65)(cid:1)(cid:52)(cid:61)(cid:64)(cid:1)(cid:34)(cid:62)i(cid:60)i(cid:61)(cid:60)
The Company(cid:88)s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting included in the accompanying Management(cid:88)s Report
on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company(cid:88)s internal control over
financial reporting based on our audit. (cid:49)e are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the (cid:47).S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
(cid:49)e conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and
performing such other procedures as we considered necessary in the circumstances. (cid:49)e believe that our audit provides a
reasonable basis for our opinion.
(cid:23)e(cid:52)i(cid:60)iti(cid:61)(cid:60)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:31)imitati(cid:61)(cid:60)(cid:65)(cid:1)(cid:61)(cid:52)(cid:1)(cid:28)(cid:60)te(cid:64)(cid:60)al(cid:1)(cid:22)(cid:61)(cid:60)t(cid:64)(cid:61)l(cid:1)(cid:34)(cid:68)e(cid:64)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:37)e(cid:62)(cid:61)(cid:64)ti(cid:60)(cid:53)
A company(cid:88)s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company(cid:88)s internal control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of
the assets of the company(cid:26) (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authori(cid:81)ations of management and directors of the company(cid:26) and (3) provide
reasonable assurance regarding prevention or timely detection of unauthori(cid:81)ed acquisition, use, or disposition of the company(cid:88)s
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
pro(cid:65)ections of any evaluation of effectiveness to future periods are sub(cid:65)ect to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst (cid:5) (cid:51)oung LLP
Boston, Massachusetts
February 12, 2024
70 Textron 2023 Annual Report
70
(cid:28)tem(cid:1)(cid:18)(cid:21)(cid:8)(cid:1)(cid:34)t(cid:54)e(cid:64)(cid:1)(cid:28)(cid:60)(cid:52)(cid:61)(cid:64)mati(cid:61)(cid:60)(cid:1)
None of our directors or executive officers adopted or terminated a (cid:86)Rule 10b(cid:20)-1 trading arrangement(cid:87) or adopted or terminated a
(cid:86)non-Rule 10b(cid:20)-1 trading arrangement(cid:87) (as such terms are defined in Item 40(cid:23) of Regulation S-K) during the quarter ended
December 30, 2023.
(cid:28)tem(cid:1)(cid:18)(cid:22)(cid:8)(cid:1)(cid:23)i(cid:65)(cid:49)l(cid:61)(cid:65)(cid:67)(cid:64)e(cid:1)(cid:37)e(cid:53)a(cid:64)(cid:50)i(cid:60)(cid:53)(cid:1)(cid:25)(cid:61)(cid:64)ei(cid:53)(cid:60)(cid:1)(cid:29)(cid:67)(cid:64)i(cid:65)(cid:50)i(cid:49)ti(cid:61)(cid:60)(cid:65)(cid:1)t(cid:54)at(cid:1)(cid:35)(cid:64)e(cid:68)e(cid:60)t(cid:1)(cid:28)(cid:60)(cid:65)(cid:62)e(cid:49)ti(cid:61)(cid:60)(cid:65)
Not applicable.
(cid:35)(cid:20)(cid:37)T(cid:1)(cid:28)(cid:28)(cid:28)
(cid:28)tem(cid:1)(cid:10)(cid:9)(cid:8)(cid:1)(cid:23)i(cid:64)e(cid:49)t(cid:61)(cid:64)(cid:65)(cid:6)(cid:1)(cid:24)(cid:70)e(cid:49)(cid:67)ti(cid:68)e(cid:1)(cid:34)(cid:52)(cid:52)i(cid:49)e(cid:64)(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:22)(cid:61)(cid:64)(cid:62)(cid:61)(cid:64)ate(cid:1)(cid:26)(cid:61)(cid:68)e(cid:64)(cid:60)a(cid:60)(cid:49)e
The information appearing under (cid:86)ELECTION OF DIRECTORS (cid:85) Nominees for Director,(cid:87) (cid:86)CORPORATE GOVERNANCE
(cid:85) Corporate Governance Guidelines and Policies,(cid:87) (cid:86)(cid:85) Code of Ethics,(cid:87) and (cid:86)(cid:85) Board Committees (cid:85) (cid:20)(cid:60)(cid:43)i(cid:59) (cid:22)ommi(cid:59)(cid:59)(cid:44)(cid:44),(cid:87) in the
Proxy Statement for our 2024 Annual Meeting of Shareholders is incorporated by reference into this Annual Report on Form 10-
K.
Information regarding our executive officers is contained in Part I of this Annual Report on Form 10-K.
(cid:28)tem(cid:1)(cid:10)(cid:10)(cid:8)(cid:1)(cid:24)(cid:70)e(cid:49)(cid:67)ti(cid:68)e(cid:1)(cid:22)(cid:61)m(cid:62)e(cid:60)(cid:65)ati(cid:61)(cid:60)
The information appearing under (cid:86)CORPORATE GOVERNANCE (cid:85) Compensation of Directors,(cid:87) (cid:86)COMPENSATION
COMMITTEE REPORT,(cid:87) (cid:86)COMPENSATION DISC(cid:47)SSION AND ANAL(cid:51)SIS(cid:87) and (cid:86)EXEC(cid:47)TIVE COMPENSATION(cid:87) in
the Proxy Statement for our 2024 Annual Meeting of Shareholders is incorporated by reference into this Annual Report on
Form 10-K.
(cid:28)tem(cid:1)(cid:10)(cid:11)(cid:8)(cid:1)(cid:38)e(cid:49)(cid:67)(cid:64)it(cid:71)(cid:1)(cid:34)(cid:69)(cid:60)e(cid:64)(cid:65)(cid:54)i(cid:62)(cid:1)(cid:61)(cid:52)(cid:1)(cid:22)e(cid:64)tai(cid:60)(cid:1)(cid:21)e(cid:60)e(cid:52)i(cid:49)ial(cid:1)(cid:34)(cid:69)(cid:60)e(cid:64)(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:32)a(cid:60)a(cid:53)eme(cid:60)t(cid:1)a(cid:60)(cid:50)(cid:1)(cid:37)elate(cid:50)(cid:1)(cid:38)t(cid:61)(cid:49)(cid:57)(cid:54)(cid:61)l(cid:50)e(cid:64)(cid:1)(cid:32)atte(cid:64)(cid:65)
The information appearing under (cid:86)SEC(cid:47)RIT(cid:51) O(cid:49)NERS(cid:34)IP(cid:87) and (cid:86)EXEC(cid:47)TIVE COMPENSATION (cid:84) Equity Compensation
Plan Information(cid:87) in the Proxy Statement for our 2024 Annual Meeting of Shareholders is incorporated by reference into this
Annual Report on Form 10-K.
(cid:28)tem(cid:1)(cid:10)(cid:12)(cid:8)(cid:1)(cid:22)e(cid:64)tai(cid:60)(cid:1)(cid:37)elati(cid:61)(cid:60)(cid:65)(cid:54)i(cid:62)(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:37)elate(cid:50)(cid:1)T(cid:64)a(cid:60)(cid:65)a(cid:49)ti(cid:61)(cid:60)(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:23)i(cid:64)e(cid:49)t(cid:61)(cid:64)(cid:1)(cid:28)(cid:60)(cid:50)e(cid:62)e(cid:60)(cid:50)e(cid:60)(cid:49)e
The
information appearing under (cid:86)CORPORATE GOVERNANCE (cid:85) Director Independence(cid:87) and (cid:86)EXEC(cid:47)TIVE
COMPENSATION (cid:85) Transactions with Related Persons(cid:87) in the Proxy Statement for our 2024 Annual Meeting of Shareholders
is incorporated by reference into this Annual Report on Form 10-K.
(cid:28)tem(cid:1)(cid:10)(cid:13)(cid:8)(cid:1)(cid:35)(cid:64)i(cid:60)(cid:49)i(cid:62)al(cid:1)(cid:20)(cid:49)(cid:49)(cid:61)(cid:67)(cid:60)ta(cid:60)t(cid:1)(cid:25)ee(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:38)e(cid:64)(cid:68)i(cid:49)e(cid:65)
The information appearing under (cid:86)RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED P(cid:47)BLIC
ACCO(cid:47)NTING FIRM (cid:85) Fees to Independent Auditors(cid:87) in the Proxy Statement for our 2024 Annual Meeting of Shareholders is
incorporated by reference into this Annual Report on Form 10-K.
71
Textron 2023 Annual Report 71
(cid:35)(cid:20)(cid:37)T(cid:1)(cid:28)(cid:41)
(cid:28)tem(cid:1)(cid:10)(cid:14)(cid:8)(cid:1)(cid:24)(cid:70)(cid:54)i(cid:48)it(cid:65)(cid:1)a(cid:60)(cid:50)(cid:1)(cid:25)i(cid:60)a(cid:60)(cid:49)ial(cid:1)(cid:38)tateme(cid:60)t(cid:1)(cid:38)(cid:49)(cid:54)e(cid:50)(cid:67)le(cid:65)
Financial Statements and Schedules (cid:85) See Index on Page 33.
(cid:24)(cid:70)(cid:54)i(cid:48)it(cid:65)
3.1A
3.1B
3.2
4.1A
4.1B
4.2
NOTE:
NOTE:
10.1A
10.1B
10.1C
10.2A
10.2B
10.3A
Restated Certificate of Incorporation of Textron as filed with the Secretary of State of Delaware on April 29,
2010. Incorporated by reference to Exhibit 3.1 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter
ended April 3, 2010. (SEC File No. 1-(cid:20)4(cid:23)0)
Certificate of Amendment of Restated Certificate of Incorporation of Textron Inc., filed with the Secretary of
State of Delaware on April 27, 2011. Incorporated by reference to Exhibit 3.1 to Textron(cid:88)s (cid:43)uarterly Report on
Form 10-(cid:43) for the fiscal quarter ended April 2, 2011. (SEC File No. 1-(cid:20)4(cid:23)0)
Amended and Restated By-Laws of Textron Inc., effective April 2(cid:23), 2010 and further amended April 27, 2011,
July 23, 2013, February 2(cid:20), 201(cid:20) and December (cid:21), 201(cid:21). Incorporated by reference to Exhibit 3.2 to Textron(cid:88)s
Current Report on Form (cid:23)-K filed on December (cid:23), 201(cid:21).
Support Agreement dated as of May 2(cid:20), 1994, between Textron Inc. and Textron Financial Corporation.
Incorporated by reference to Exhibit 4.1 to Textron(cid:88)s Annual Report on Form 10-K for the fiscal year ended
December 31, 2011. (SEC File No. 1-(cid:20)4(cid:23)0)
Amendment to Support Agreement, dated as of December 23, 201(cid:20), by and between Textron Inc. and Textron
Financial Corporation. Incorporated by reference to Exhibit 4.1B to Textron(cid:88)s Annual Report on Form 10-K for
the fiscal year ended January 2, 201(cid:21) (SEC File No. 1-(cid:20)4(cid:23)0).
Description of registrant(cid:88)s securities. Incorporated by reference to Exhibit 4.(cid:21) to Textron(cid:6)s Annual Report on
Form 10-K for the fiscal year ended January 4, 2020.
Instruments defining the rights of holders of certain issues of long-term debt of Textron have not been filed as
exhibits because the authori(cid:81)ed principal amount of any one of such issues does not exceed 10(cid:4) of the
total assets of Textron and its subsidiaries on a consolidated basis. Textron agrees to furnish a copy of each
such instrument to the Commission upon request.
Exhibits 10.1 through 10.17 below are management contracts or compensatory plans, contracts or agreements.
Textron Inc. 2007 Long-Term Incentive Plan (Amended and Restated as of April 2(cid:23), 2010). Incorporated by
reference to Exhibit 10.1 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended March 31,
2012. (SEC File No. 1-(cid:20)4(cid:23)0)
Form of Non-(cid:43)ualified Stock Option Agreement. Incorporated by reference to Exhibit 10.2 to Textron(cid:88)s
(cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended June 30, 2007. (SEC File No. 1-(cid:20)4(cid:23)0)
Form of Non-(cid:43)ualified Stock Option Agreement. Incorporated by reference to Exhibit 10.1 to Textron(cid:88)s
(cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended March 29, 2014. (SEC File No. 1-(cid:20)4(cid:23)0)
Amended and Restated Textron Inc. Short-Term Incentive Plan. Incorporated by reference to Exhibit 10.1 to
Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended October 3, 2020.
Amendment No. 1 to Amended and Restated Textron Inc. Short-Term Incentive Plan. Incorporated by reference
to Exhibit 10.1 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended September 30, 2023.
Textron Inc. 201(cid:20) Long-Term Incentive Plan. Incorporated by reference to Exhibit 10.1 to Textron(cid:88)s (cid:43)uarterly
Report on Form 10-(cid:43) for the fiscal quarter ended July 4, 201(cid:20) (SEC File No. 1-(cid:20)4(cid:23)0).
72 Textron 2023 Annual Report
72
10.3B
10.3C
10.3D
10.3E
10.3F
10.3G
10.4
10.(cid:20)A
10.(cid:20)B
10.(cid:20)C
10.(cid:21)
10.7A
10.7B
10.7C
73
Amendment No. 1 to Textron Inc. 201(cid:20) Long-Term Incentive Plan. Incorporated by reference to Exhibit 10.2 to
Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended September 30, 2023..
Form of Non-(cid:43)ualified Stock Option Agreement under 201(cid:20) Long-Term Incentive Plan. Incorporated by
reference to Exhibit 10.1 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended April 2, 201(cid:21)
(SEC File No. 1-(cid:20)4(cid:23)0).
Form of Stock-Settled Restricted Stock (cid:47)nit (with Dividend Equivalents) Grant Agreement under 201(cid:20) Long-
Term Incentive Plan. Incorporated by reference to Exhibit 10.2 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for
the fiscal quarter ended April 2, 201(cid:21) (SEC File No. 1-(cid:20)4(cid:23)0).
Form of Performance Share (cid:47)nit Grant Agreement under 201(cid:20) Long-Term Incentive Plan. Incorporated by
reference to Exhibit 10.3 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended April 2, 201(cid:21)
(SEC File No. 1-(cid:20)4(cid:23)0).
Form of Performance Share (cid:47)nit Grant Agreement under 201(cid:20) Long-Term Incentive Plan. Incorporated by
reference to Exhibit 10.2 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended April 4, 2020.
Form of Stock-Settled Restricted Stock (cid:47)nit (with Dividend Equivalents) Grant Agreement under 201(cid:20) Long-
Term Incentive Plan. Incorporated by reference to Exhibit 10.1 to Textron(cid:6)s (cid:43)uarterly Report on Form 10-(cid:43) for
the fiscal quarter ended April 4, 2020.
Textron Spillover Savings Plan, effective October (cid:20), 201(cid:20). Incorporated by reference to Exhibit 10.4 to
Textron(cid:88)s Annual Report on Form 10-K for the fiscal year ended January 2, 201(cid:21) (SEC File No. 1-(cid:20)4(cid:23)0).
Textron Spillover Pension Plan, As Amended and Restated Effective January 3, 2010, including Appendix A (as
amended and restated effective January 3, 2010), Defined Benefit Provisions of the Supplemental Benefits Plan
for Textron Key Executives (As in effect before January 1, 2007). Incorporated by reference to Exhibit 10.4 to
Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended April 3, 2010. (SEC File No. 1-(cid:20)4(cid:23)0)
Amendments to the Textron Spillover Pension Plan, dated October 12, 2011. Incorporated by reference to
Exhibit 10.(cid:20)B to Textron(cid:88)s Annual Report on Form 10-K for the fiscal year ended December 31, 2011. (SEC
File No. 1-(cid:20)4(cid:23)0)
Second Amendment to the Textron Spillover Pension Plan, dated October 7, 2013. Incorporated by reference to
Exhibit 10.(cid:20)C to Textron(cid:88)s Annual Report on Form 10-K for the fiscal year ended December 2(cid:23), 2013.
(SEC File No. 1-(cid:20)4(cid:23)0)
Deferred Income Plan for Textron Executives, Effective October (cid:20), 201(cid:20). Incorporated by reference to Exhibit
10.(cid:21) to Textron(cid:88)s Annual Report on Form 10-K for the fiscal year ended January 2, 201(cid:21) (SEC File No.
1-(cid:20)4(cid:23)0).
Deferred Income Plan for Non-Employee Directors, As Amended and Restated Effective January 1, 2009,
including Appendix A, Prior Plan Provisions (As in effect before January 1, 200(cid:23)). Incorporated by reference to
Exhibit 10.9 to Textron(cid:88)s Annual Report on Form 10-K for the fiscal year ended January 3, 2009. (SEC File No.
1-(cid:20)4(cid:23)0)
Amendment No. 1 to Deferred Income Plan for Non-Employee Directors, as Amended and Restated Effective
January 1, 2009, dated as of November (cid:21), 2012. Incorporated by reference to Exhibit 10.(cid:23)B to Textron(cid:88)s Annual
Report on Form 10-K for the fiscal year ended December 29, 2012. (SEC File No. 1-(cid:20)4(cid:23)0)
Amendment No. 2 to Deferred Income Plan for Non-Employee Directors, as Amended and Restated Effective
January 1, 2009. Incorporated by reference to Exhibit 10.1 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the
fiscal quarter ended April 1, 2017.
Textron 2023 Annual Report 73
10.7D
10.7E
10.(cid:23)A
10.(cid:23)B
10.(cid:23)C
10.9
10.10
10.11A
10.11B
10.11C
10.11D
10.12A
10.12B
10.13
Amendment No. 3 to Deferred Income Plan for Non-Employee Directors, as Amended and Restated Effective
January 1, 2009. Incorporated by reference to Exhibit 10.1 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the
fiscal quarter ended September 29, 201(cid:23).
Amendment No. 4 to Deferred Income Plan for Non-Employee Directors, as Amended and Restated Effective
January 1, 2009. Incorporated by reference to Exhibit 10.7E to Textron(cid:6)s Annual Report on Form 10-K for the
fiscal year ended January 4, 2020.
Severance Plan for Textron Key Executives, As Amended and Restated Effective January 1, 2010. Incorporated
by reference to Exhibit 10.10 to Textron(cid:88)s Annual Report on Form 10-K for the fiscal year ended January 2,
2010. (SEC File No. 1-(cid:20)4(cid:23)0)
First Amendment to the Severance Plan for Textron Key Executives, dated October 2(cid:21), 2010. Incorporated by
reference to Exhibit 10.10B to Textron(cid:88)s Annual Report on Form 10-K for the fiscal year ended January 1,
2011. (SEC File No. 1-(cid:20)4(cid:23)0)
Second Amendment to the Severance Plan for Textron Key Executives, dated March 24, 2014. Incorporated by
reference to Exhibit 10.(cid:20) to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended March 29,
2014. (SEC File No. 1-(cid:20)4(cid:23)0)
Form of Indemnity Agreement between Textron and its executive officers. Incorporated by reference to Exhibit
10.9 to Textron(cid:88)s Annual Report on Form 10-K for the fiscal year ended December 30, 2017
Form of Indemnity Agreement between Textron and its non-employee directors (approved by the Nominating
and Corporate Governance Committee of the Board of Directors on July 21, 2009 and entered into with all non-
employee directors, effective as of August 1, 2009 or as of such later date as the director (cid:65)oined the Board).
Incorporated by reference to Exhibit 10.1 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter
ended October 3, 2009. (SEC File No. 1-(cid:20)4(cid:23)0)
Letter Agreement between Textron and Scott C. Donnelly, dated June 2(cid:21), 200(cid:23). Incorporated by reference to
Exhibit 10.1 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended June 2(cid:23), 200(cid:23). (SEC File
No. 1-(cid:20)4(cid:23)0)
Amendment to Letter Agreement between Textron and Scott C. Donnelly, dated December 1(cid:21), 200(cid:23), together
with Addendum No.1 thereto, dated December 23, 200(cid:23). Incorporated by reference to Exhibit 10.1(cid:20)B to
Textron(cid:88)s Annual Report on Form 10-K for the fiscal year ended January 3, 2009. (SEC File No. 1-(cid:20)4(cid:23)0)
Amended and Restated (cid:34)angar License and Services Agreement, made and entered into as of October 1, 201(cid:20),
between Textron Inc. and Mr. Donnelly(cid:88)s limited liability company. Incorporated by reference to Exhibit 10.2 to
Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended October 3, 201(cid:20) (SEC File No. 1-(cid:20)4(cid:23)0).
Aircraft Dry Lease Agreement, made and entered into as of December 1(cid:23), 201(cid:23), between Mr. Donnelly(cid:88)s
limited liability company and Textron Inc. Incorporated by reference to Exhibit 10.11D to Textron(cid:6)s Annual
Report on Form 10-K for the fiscal year ended December 29, 201(cid:23).
Letter Agreement between Textron and Frank Connor, dated July 27, 2009. Incorporated by reference to Exhibit
10.2 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended October 3, 2009. (SEC File No.
1-(cid:20)4(cid:23)0)
Amended and Restated (cid:34)angar License and Services Agreement, made and entered into on July 24, 201(cid:20),
between Textron Inc. and Mr. Connor(cid:88)s limited liability company. Incorporated by reference to Exhibit 10.3 to
Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended October 3, 201(cid:20) (SEC File No. 1-(cid:20)4(cid:23)0).
Letter Agreement between Textron and Julie G. Duffy, dated July 27, 2017. Incorporated by reference to Exhibit
10.1 to Textron(cid:88)s (cid:43)uarterly Report on Form 10-(cid:43) for the fiscal quarter ended September 30, 2017.
74 Textron 2023 Annual Report
74
10.14A
10.14B
10.1(cid:20)
10.1(cid:21)
10.17
10.1(cid:23)
21
23
24
31.1
31.2
32.1
32.2
97
101
Letter Agreement between Textron and E. Robert Lupone, dated December 22, 2011. Incorporated by reference
to Exhibit 10.17 to Textron(cid:88)s Annual Report on Form 10-K for the fiscal year ended December 31, 2011. (SEC
File No. 1-(cid:20)4(cid:23)0)
(cid:36)(cid:80)(cid:72)(cid:81)(cid:71)(cid:80)(cid:72)(cid:81)(cid:87) (cid:87)(cid:82) (cid:79)(cid:72)(cid:87)(cid:87)(cid:72)(cid:85) (cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87) (cid:69)(cid:72)(cid:87)(cid:90)(cid:72)(cid:72)(cid:81) (cid:55)(cid:72)(cid:91)(cid:87)(cid:85)(cid:82)(cid:81) (cid:68)(cid:81)(cid:71) (cid:40)(cid:17) (cid:53)(cid:82)(cid:69)(cid:72)(cid:85)(cid:87) (cid:47)(cid:88)(cid:83)(cid:82)(cid:81)(cid:72)(cid:15) (cid:71)(cid:68)(cid:87)(cid:72)(cid:71) (cid:45)(cid:88)(cid:79)(cid:92) (cid:21)(cid:26)(cid:15) (cid:21)(cid:19)(cid:20)(cid:21)(cid:17) (cid:44)(cid:81)(cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71) (cid:69)(cid:92)
(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72) (cid:87)(cid:82) (cid:40)(cid:91)(cid:75)(cid:76)(cid:69)(cid:76)(cid:87) (cid:20)(cid:19)(cid:17)(cid:24) (cid:87)(cid:82) (cid:55)(cid:72)(cid:91)(cid:87)(cid:85)(cid:82)(cid:81)(cid:182)(cid:86) (cid:52)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92) (cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87) (cid:82)(cid:81) (cid:41)(cid:82)(cid:85)(cid:80) (cid:20)(cid:19)(cid:16)(cid:52) (cid:73)(cid:82)(cid:85) (cid:87)(cid:75)(cid:72) (cid:73)(cid:76)(cid:86)(cid:70)(cid:68)(cid:79) (cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85) (cid:72)(cid:81)(cid:71)(cid:72)(cid:71) (cid:54)(cid:72)(cid:83)(cid:87)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85) (cid:21)(cid:28)(cid:15)
(cid:21)(cid:19)(cid:20)(cid:21)(cid:17) (cid:11)(cid:54)(cid:40)(cid:38) (cid:41)(cid:76)(cid:79)(cid:72) (cid:49)(cid:82)(cid:17) (cid:20)(cid:16)(cid:24)(cid:23)(cid:27)(cid:19)(cid:12)
Textron Inc. 201(cid:20) Long-Term Incentive Plan Equity Program for Non-Employee Directors. Incorporated
by reference to Exhibit 10.1(cid:20) to Textron(cid:6)s Annual Report on Form 10-K for the fiscal year ended January 4, 2020.
Director Compensation. Incorporated by reference to Exhibit 10.1(cid:21) to Textron(cid:6)s Annual Report on Form 10-K
for the fiscal year ended December 31, 2022.
(cid:41)(cid:82)(cid:85)(cid:80) (cid:82)(cid:73) (cid:36)(cid:76)(cid:85)(cid:70)(cid:85)(cid:68)(cid:73)(cid:87) (cid:55)(cid:76)(cid:80)(cid:72) (cid:54)(cid:75)(cid:68)(cid:85)(cid:76)(cid:81)(cid:74) (cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87) (cid:69)(cid:72)(cid:87)(cid:90)(cid:72)(cid:72)(cid:81) (cid:55)(cid:72)(cid:91)(cid:87)(cid:85)(cid:82)(cid:81) (cid:68)(cid:81)(cid:71) (cid:76)(cid:87)(cid:86) (cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72) (cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:17) (cid:44)(cid:81)(cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71) (cid:69)(cid:92) (cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)
(cid:87)(cid:82) (cid:40)(cid:91)(cid:75)(cid:76)(cid:69)(cid:76)(cid:87) (cid:20)(cid:19)(cid:17)(cid:22) (cid:87)(cid:82) (cid:55)(cid:72)(cid:91)(cid:87)(cid:85)(cid:82)(cid:81)(cid:182)(cid:86) (cid:52)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92) (cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87) (cid:82)(cid:81) (cid:41)(cid:82)(cid:85)(cid:80) (cid:20)(cid:19)(cid:16)(cid:52) (cid:73)(cid:82)(cid:85) (cid:87)(cid:75)(cid:72) (cid:73)(cid:76)(cid:86)(cid:70)(cid:68)(cid:79) (cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85) (cid:72)(cid:81)(cid:71)(cid:72)(cid:71) (cid:54)(cid:72)(cid:83)(cid:87)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85) (cid:21)(cid:26)(cid:15) (cid:21)(cid:19)(cid:19)(cid:27)(cid:17)
(cid:11)(cid:54)(cid:40)(cid:38) (cid:41)(cid:76)(cid:79)(cid:72) (cid:49)(cid:82)(cid:17) (cid:20)(cid:16)(cid:24)(cid:23)(cid:27)(cid:19)(cid:12)
(cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87) (cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15) (cid:71)(cid:68)(cid:87)(cid:72)(cid:71) (cid:68)(cid:86) (cid:82)(cid:73) (cid:50)(cid:70)(cid:87)(cid:82)(cid:69)(cid:72)(cid:85) (cid:21)(cid:20)(cid:15) (cid:21)(cid:19)(cid:21)(cid:21)(cid:15) (cid:68)(cid:80)(cid:82)(cid:81)(cid:74) (cid:55)(cid:72)(cid:91)(cid:87)(cid:85)(cid:82)(cid:81)(cid:15) (cid:87)(cid:75)(cid:72) (cid:47)(cid:72)(cid:81)(cid:71)(cid:72)(cid:85)(cid:86) (cid:79)(cid:76)(cid:86)(cid:87)(cid:72)(cid:71) (cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:15) (cid:45)(cid:51)(cid:48)(cid:82)(cid:85)(cid:74)(cid:68)(cid:81) (cid:38)(cid:75)(cid:68)(cid:86)(cid:72)
(cid:37)(cid:68)(cid:81)(cid:78)(cid:15) (cid:49)(cid:17)(cid:36)(cid:17)(cid:15) (cid:68)(cid:86) (cid:36)(cid:71)(cid:80)(cid:76)(cid:81)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72) (cid:36)(cid:74)(cid:72)(cid:81)(cid:87)(cid:15) (cid:37)(cid:68)(cid:81)(cid:78) (cid:82)(cid:73) (cid:36)(cid:80)(cid:72)(cid:85)(cid:76)(cid:70)(cid:68)(cid:15) (cid:49)(cid:17)(cid:36)(cid:17) (cid:68)(cid:81)(cid:71) (cid:38)(cid:76)(cid:87)(cid:76)(cid:69)(cid:68)(cid:81)(cid:78)(cid:15) (cid:49)(cid:17)(cid:36)(cid:17)(cid:15) (cid:68)(cid:86) (cid:54)(cid:92)(cid:81)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81) (cid:36)(cid:74)(cid:72)(cid:81)(cid:87)(cid:86)(cid:15) (cid:68)(cid:81)(cid:71)
(cid:48)(cid:56)(cid:41)(cid:42) (cid:37)(cid:68)(cid:81)(cid:78)(cid:15) (cid:47)(cid:87)(cid:71)(cid:17)(cid:15) (cid:68)(cid:86) (cid:39)(cid:82)(cid:70)(cid:88)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81) (cid:36)(cid:74)(cid:72)(cid:81)(cid:87)(cid:17) (cid:44)(cid:81)(cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71) (cid:69)(cid:92) (cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72) (cid:87)(cid:82) (cid:40)(cid:91)(cid:75)(cid:76)(cid:69)(cid:76)(cid:87) (cid:20)(cid:19)(cid:17)(cid:20) (cid:87)(cid:82) (cid:55)(cid:72)(cid:91)(cid:87)(cid:85)(cid:82)(cid:81)(cid:182)(cid:86) (cid:52)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)
(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87) (cid:82)(cid:81) (cid:41)(cid:82)(cid:85)(cid:80) (cid:20)(cid:19)(cid:16)(cid:52) (cid:73)(cid:82)(cid:85) (cid:87)(cid:75)(cid:72) (cid:73)(cid:76)(cid:86)(cid:70)(cid:68)(cid:79) (cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85) (cid:72)(cid:81)(cid:71)(cid:72)(cid:71) (cid:50)(cid:70)(cid:87)(cid:82)(cid:69)(cid:72)(cid:85) (cid:20)(cid:15) (cid:21)(cid:19)(cid:21)(cid:21)(cid:17)
Certain subsidiaries of Textron. Other subsidiaries, which considered in the aggregate do not constitute a
significant subsidiary, are omitted from such list.
Consent of Independent Registered Public Accounting Firm.
Power of attorney.
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of Chief Executive Officer Pursuant to 1(cid:23) (cid:47).S.C. 13(cid:20)0, as adopted pursuant to Section 90(cid:21) of the
Sarbanes-Oxley Act of 2002.
Certification of Chief Financial Officer Pursuant to 1(cid:23) (cid:47).S.C. 13(cid:20)0, as adopted pursuant to Section 90(cid:21) of the
Sarbanes-Oxley Act of 2002.
Textron Inc. Recovery Policy.
The following materials from Textron Inc.(cid:88)s Annual Report on Form 10-K for the year ended December 30,
2023, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of
Operations, (ii) the Consolidated Statements of Comprehensive Income (iii) the Consolidated Balance Sheets,
(iv) the Consolidated Statements of Shareholders(cid:88) Equity, (v) the Consolidated Statements of Cash Flows, (vi)
the Notes to the Consolidated Financial Statements, and (vii) Schedule II (cid:84) Valuation and (cid:43)ualifying Accounts.
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
(cid:28)tem(cid:1)(cid:10)(cid:15)(cid:8)(cid:1)(cid:25)(cid:61)(cid:64)m(cid:1)(cid:10)(cid:9)(cid:7)(cid:30)(cid:1)(cid:38)(cid:67)mma(cid:64)(cid:71)
Not applicable.
7(cid:20)
Textron 2023 Annual Report 75
(cid:38)i(cid:53)(cid:60)at(cid:67)(cid:64)e(cid:65)
Pursuant to the requirement of Section 13 or 1(cid:20)(d) of the Securities Exchange Act of 1934, the registrant has duly caused this
Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authori(cid:81)ed on this 12th day of
February 2024.
TEXTRON INC.
Registrant
By:
/s/ Frank T. Connor
Frank T. Connor
Executive Vice President and Chief Financial Officer
76 Textron 2023 Annual Report
7(cid:21)
Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below on
this 12th day of February 2024 by the following persons on behalf of the registrant and in the capacities indicated:
Name
Title
/s/ Scott C. Donnelly
Scott C. Donnelly
*
Chairman, President and Chief Executive Officer
(principal executive officer)
Richard F. Ambrose
Director
*
Kathleen M. Bader
Director
*
R. Kerry Clark
*
Director
Michael X. Garrett
Director
*
Deborah Lee James
Director
*
Thomas A. Kennedy
Director
*
Lionel L. Nowell III
Director
*
James L. Ziemer
Director
*
Maria T. Zuber
/s/ Frank T. Connor
Frank T. Connor
/s/ Mark S. Bamford
Mark S. Bamford
Director
Executive Vice President and Chief Financial Officer
(principal financial officer)
Vice President and Corporate Controller
(principal accounting officer)
*By:
/s/ Jayne M. Donegan
Jayne M. Donegan, Attorney-in-fact
77
Textron 2023 Annual Report 77
NOTES
78 Textron 2023 Annual Report
NOTES
Textron 2023 Annual Report 79
NOTES
80 Textron 2023 Annual Report
CORPORATE INFORMATION
CORPORATE H EADQUARTE RS
Textron Inc.
40 Westminster Street
Providence, RI 02903
(401) 421-2800
www.textron.com
INVE STOR RE L ATIO NS
Textron Inc.
Investor Relations
40 Westminster Street
Providence, RI 02903
Email address: irdepartment@textron.com
ANNUAL MEETING
Textron’s annual meeting of shareholders will be held
on Wednesday, April 24, 2024, at 11 a.m. virtually at
www.virtualshareholdermeeting.com/TXT2024.
Investor Relations phone line:
(401) 457-2288
News media phone line:
(401) 457-2362
TRANSFER AGENT, REGI STRAR AN D
DIVIDEND PAYING AGENT
For shareholder services such as change of address,
lost certificates or dividend checks, change in registered
ownership or the Dividend Reinvestment Plan, write
or call:
Equiniti Trust Company (“EQ”)
48 Wall Street, Floor 23
New York, NY 10005
phone: (800) 937-5449
email: HelpAST@equiniti.com
STOCK EXCH ANGE INFORMATION
(Symbol: TXT)
Textron common stock is listed on the New York
Stock Exchange.
For more information, visit our website at
www.textron.com.
CO MPANY PUBLICATION S A ND
G E NE RAL IN FORMATION
To receive a copy of Textron’s Forms 10-K and 10-Q,
Proxy Statement or Annual Report without charge,
visit our website at www.textron.com or send a written
request to Textron Investor Relations at the street or
email address listed above. For the most recent company
news and earnings press releases, visit our website at
www.textron.com.
Textron is an Equal Opportunity Employer.
TEXTRO N BOARD O F DIR ECTO R S
To contact the Textron Board of Directors or to
report concerns or complaints about accounting,
internal accounting controls or auditing matters,
you may write to Board of Directors, Textron Inc.,
40 Westminster Street, Providence, RI 02903;
call (866) 698-6655; or send an email to
textrondirectors@textron.com.
Textron Inc. and the names of its subsidiaries, businesses and operating divisions, abbreviations thereof, and their logos
and product and service designators are either the registered or unregistered trademarks or trade names of Textron Inc.
and its subsidiaries. Names of other companies, abbreviations thereof, and logos and product and services designators of
other companies are either the registered or unregistered trademarks or trade names of their respective owners.
Textron provides a multimedia interactive version of the Annual Report in the Investor Resources section of its website
at www.textron.com.
www.textron.com
© 2024 Textron Inc.