202 4 ANNUAL REPORT
TEXTRON AVIATION
Textron Aviation is home to the Beechcraft® and Cessna® aircraft brands and is a leader in general aviation through two principal
product lines: aircraft and aftermarket parts and services. Aircraft includes sales of business jets, 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, and advanced flight training devices.
BELL
Bell is a leading supplier of military and commercial helicopters, tiltrotor aircraft and related spare parts and services. Bell supplies
advanced military helicopters and tiltrotors to the U.S. Government and non-U.S. military customers and commercially certified
helicopters to corporate, private, law enforcement, utility, public safety, emergency medical helicopter operators, and U.S. and foreign
governments. Bell provides support and service for an installed base of approximately 13,000 helicopters.
INDUSTRIAL
Our industrial segment designs and manufactures a variety of products within the Kautex and Textron Specialized Vehicles businesses.
Kautex is a leader in designing and manufacturing plastic fuel systems for automobiles and light trucks, along with other automotive
systems and components. Textron Specialized Vehicles products include golf cars, off-road utility vehicles, powersports products, light
transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment and specialized turf-care vehicles.
TEXTRON SYSTEMS
Textron Systems’ businesses develop, manufacture and integrate products and services for U.S. and international military,
government and commercial customers to support defense, homeland security, aerospace, infrastructure protection and other
customer missions. Product and service offerings 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.
TEXTRON eAVIATION
Textron eAviation is focused on research and development initiatives related to sustainable aviation solutions and includes Pipistrel, a
manufacturer of light aircraft. Pipistrel offers a family of light aircraft and gliders with both electric and combustion engines. Pipistrel’s
Velis Electro is the world’s first, and currently only, electric aircraft to receive full type certification from the European Union Aviation
Safety Agency and from the UK Civil Aviation Authority. In 2024, the FAA granted a light-sport aircraft airworthiness exemption for the
Pipistrel Velis Electro, allowing flight training in an electric aircraft within the United States.
FINANCE
Our Finance segment, operated by Textron Financial Corporation (TFC), is a commercial finance business that provides financing
solutions primarily to purchasers of new and pre-owned aircraft and Bell helicopters. For more than 60 years, TFC has played a key
role for Textron customers around the globe.
GLOBAL
NETWORK OF
BUSINESSES
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.
SELECTED
YEAR-OVER-YEAR
FINANCIAL DATA
Textron 2024 Annual Report 1
(Dollars in Millions, Except Per Share Amounts)
2024
2023
Total Revenues
$13,702
$13,683
Total Segment Profit1
1,200
1,327
Income from Continuing Operations—GAAP
825
922
Adjusted Income from Continuing Operations—Non-GAAP1
1,042
1,127
PER SHARE OF COMMON STOCK
Common Stock Price at Year-End
$ 77.21
$ 80.42
Diluted Income from Continuing Operations—GAAP
4.34
4.57
Adjusted Diluted Income from Continuing Operations—Non-GAAP1
5.48
5.59
COMMON SHARES OUTSTANDING (In Thousands)
Diluted Average
190,307
201,774
Year-End
182,964
192,898
FINANCIAL POSITION
Total Assets
$16,838
$16,856
Manufacturing Group Debt
3,247
3,526
Finance Group Debt
341
348
Shareholders’ Equity
7,204
6,987
Manufacturing Group Debt-to-Capital (Net of Cash)
21%
17%
Manufacturing Group Debt-to-Capital
31%
34%
KEY PERFORMANCE METRICS
Net Cash from Operating Activities of Continuing Operations for the Manufacturing Group—GAAP
$ 1,008
$ 1,270
Manufacturing Cash Flow Before Pension Contributions—Non-GAAP1
692
931
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.
Commercial 75%
U.S. Government 25%
2024 TOTAL REVENUES
BY CUSTOMER
U.S. 71%
Europe 9%
Other International 20%
2024 TOTAL REVENUES
BY REGION
Textron Aviation 38.6%
Bell 26.1%
Industrial 25.6%
Textron Systems 9.1%
Finance 0.4%
Textron eAviation 0.2%
2024 TOTAL REVENUES
BY SEGMENT
2024 WAS A YEAR OF ACHIEVEMENTS AND CHALLENGES
FOR OUR COMPANY. We saw strong demand for our commercial
products at Textron Aviation and Bell and made progress
on several important military programs, including achieving
Milestone B approval on the Future Long Range Assault Aircraft
(FLRAA) program. As a result of robust demand in our aerospace
and defense businesses, we ended the year with a total company
backlog of $17.9 billion, up $4 billion from 2023.
We faced a strike at Textron Aviation and difficult end markets in our Industrial segment. While the strike was unfortunate
and adversely impacted the business’s ability to meet its production and delivery schedules during the latter part of the year,
we were able to continue to work with suppliers, resulting in improved parts flow that should improve plant efficiency in the
future. We have reached agreement with our employee union on a new five-year contract. To address the challenges in our
Industrial segment, we focused on our cost structure and began a strategic review of the powersports product line.
DEVELOPING AND REFRESHING COMMERCIAL PRODUCTS
Throughout the year, Textron Aviation continued to see strong demand across all product lines. Backlog grew throughout the
year, ending at $7.8 billion, an increase of $676 million from 2023.
Building upon a strategy of continually refreshing its product lineup, Textron Aviation announced planned Gen3 platform
upgrades to its Citation M2, CJ3 and CJ4 models. All three Gen3 aircraft will include the revolutionary Garmin Emergency
Autoland technology, bringing peace of mind to pilots and passengers in this single pilot operator segment.
FELLOW SHAREHOLDERS,
2 Textron 2024 Annual Report
First signed
purchase
agreement
for Bell 525
FIRST QUARTER
Pipistrel Velis
Electro receives
light-sport aircraft
airworthiness exemption
from FAA
Foreign Military Sales award
for production and delivery
of 12 AH-1Z helicopters for the
government of Nigeria
SCOTT C. DONNELLY
Chairman and
Chief Executive Office
SECOND QUARTER
First deliveries of Multi-
Engine Training Systems
(METS) Beechcraft King Air
260 aircraft to the U.S. Navy
Textron eAviation completes
acquisition of Amazilia Aerospace
Modernized Royal
Canadian Air Force
CH-146 Griffon helicopter
makes first flight at
Bell’s Commercial Centre
of Excellence in Mirabel
Textron 2024 Annual Report 3
Second
Citation
Ascend flight test
article joins the program
The Citation Ascend, a state-of-the-art business jet announced in 2023, added a second
flight test article to the program as certification momentum builds for the aircraft.
The flight test program logged more than 700 hours as the aircraft prepares for entry
into service anticipated in 2025. The Beechcraft Denali has logged more than 2,500
hours of flight testing and began its certification flight test phase following the Federal
Aviation Administration’s Type Inspection Authorization.
Demonstrating its versatility, the first Cessna SkyCourier equipped with a Combi
interior conversion option—the ability to transport passengers and cargo at the same
time—was certified by the FAA and delivered to a customer in Alaska. Along with
the passenger and freighter variants, the SkyCourier has become an ideal aircraft for
customers around the world who serve a variety of missions. The SkyCourier also received type certifications from regulatory
agencies in Australia, Canada and the Philippines, expanding the aircraft’s market.
Bell saw steady order growth for its commercial aircraft across market segments. New commercial orders included the
first order for the Bell 525 to Equinor, Norway’s state energy company, which signed an agreement to purchase 10 Bell
525 aircraft. The Bell 525 incorporates fly-by-wire flight controls and provides enhanced safety capabilities, reliability and
optimized operation.
Bell also announced the signed purchase agreement for the sale of 15 Bell 407GXis with IFR configuration kits to Global
Medical Response, bringing its total fleet to 250 Bell helicopters.
At Textron eAviation, we continued our investments in electric and hybrid aviation platforms. We made advancements in
both our Nuuva hybrid-electric vertical takeoff and landing (VTOL) and Nexus electric vertical takeoff and landing
(eVTOL) programs with the Nuuva’s first hover flight completed in January 2025. With the acquisition of Amazilia Aerospace,
a respected developer of digital flight control, flight guidance and vehicle management systems for civil manned and
unmanned aircraft, Textron eAviation enhanced its internal capabilities in these critical technologies.
The SkyCourier has
become an ideal aircraft
for customers around
the world who serve a
variety of missions.
4 Textron 2024 Annual Report
All-electric fleet of
Jacobsen mowers maintain
2024 Summer Games golf
course venue
400th delivery of Cessna
Citation Latitude
Bell delivers
remaining five
Bell 505 aircraft to the
Royal Jordanian Air Force,
completing order of 10 aircraft
U.S. Army’s Milestone B
decision officially establishes
FLRAA as Program of Record
THIRD QUARTER
In March, Pipistrel was granted a light-sport aircraft airworthiness exemption by the FAA for its Velis Electro, which allows
U.S. flight schools to use the lower-cost and more sustainable electric aircraft in their flight training programs.
In July, Jacobsen maintained the golf course in Paris for the Summer Games with its fleet of ELiTE electric mowers. This
marked the first all-electric fleet in use at the Games and the first time an all-electric fleet was used to maintain an
entire course. The success of the ELiTE mowers was an opportunity to showcase our commitment to developing products
that provide greener solutions for golf courses around the world.
Kautex won new contracts with automotive OEM customers, successfully securing 10 contract awards for its hybrid electric
fuel systems.
MILITARY PROGRAM WINS AND KEY MILESTONES ACHIEVED
The U.S. Army’s approval of Milestone B for the FLRAA program marked the beginning of the weapon system’s status as a
Program of Record and transitioned the program to its Engineering and Manufacturing Development phase. Bell continued
to make significant investments to support the future growth of the program, including the announcement to insource the
fuselage assembly at our new Bell Wichita facility.
Bell’s H-1 program entered a new chapter as the first AH-1Z arrived at the Bell Amarillo Assembly Center for the Structural
Improvement Electrical Power Upgrade modification. The modifications will optimize the aircraft to improve mission
capabilities, aircrew safety, and interoperability by increasing the electrical power
capacity on the aircraft and support the integration of additional cabin capabilities.
Bell also received a Foreign Military Sales contract award from the U.S. Department
of Defense for the production and delivery of 12 AH-1Z helicopters for the
government of Nigeria.
In addition, Bell was downselected as one of two companies to develop a prototype
High-Speed VTOL aircraft for the U.S. military as part of the DARPA Speed and
Runway Independent Technologies (SPRINT) X-Plane program.
Textron Aviation Defense delivered 11 Multi-Engine Training Systems (METS)
Beechcraft King Air 260 aircraft to the U.S. Navy. The deliveries are part of a total
Bell saw steady
order growth for
its commercial
aircraft across
market segments.
of 62 aircraft currently contracted by Naval Air Systems Command, continuing our long-standing role in providing this
training platform for Navy, Marine Corps and Coast Guard aviators.
Textron Systems delivered the 12th Ship-to-Shore Connector (SSC) craft to the U.S. Navy and received an award from
Naval Sea Systems Command for the next production lot of nine SSC craft with a total contracted value of $960 million.
The Navy also awarded Textron Systems a contract for Mine Sweeping Payload Delivery Systems production, spares,
and engineering services to support the Navy’s Mine Countermeasure Mission package. This award allows Textron
Systems’ Common Unmanned Surface Vehicle (CUSV) to complete mine sweeping missions semi-autonomously and
advance the CUSV system’s capabilities.
Textron Systems advanced on key program pursuits. We completed Option 3 of the Army’s Future Tactical Uncrewed
Aircraft Systems (FTUAS) program, and made significant progress on Option 4 by delivering a production representative
Aerosonde® Mk. 4.8 VTOL system to the U.S. Army. During the year, the company announced the delivery of two RIPSAW®
M3 prototype vehicles to the U.S. Army for the Robotic Combat Vehicle (RCV) Phase I: Platform Prototype competitive
program. A rugged and reliable RCV platform, the vehicle is designed to meet Army requirements while preserving
transportability and mission versatility. Working as part of Team Lynx, Textron Systems supported the Detailed Design
and prototype phase of the XM30 program.
PIECES IN PLACE FOR 2025
We concluded 2024 with a strong backlog and solid demand in our aerospace and
defense businesses. Combined with our continued strategic investments in new
product development, improved manufacturing capabilities and a talented workforce
of 34,000 people, we are well positioned for a successful 2025. On behalf of Textron’s
Board of Directors, we thank you for your continued support of our company.
SCOTT C. DONNELLY
Chairman and Chief Executive Officer
Textron 2024 Annual Report 5
Two RIPSAW® M3
prototype vehicles
delivered to the
U.S. Army as part
of the competitive
RCV program
Textron Systems delivers 12th
SSC to the U.S. Navy
Bell and Global Medical Response
sign purchase agreement for
15 Bell 407GXis with option for nine
additional aircraft
Transport
Canada
Civil Aviation
certifies
Cessna
SkyCourier
Textron Aviation introduces Gen3 aircraft
FOURTH QUARTER
Textron Systems
advanced on key
program pursuits.
SCOTT C. DONNELLY (1)
Chairman, President and CEO
Textron Inc.
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.
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
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)
Presidential Advisor for Science
and Technology Policy
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
SCOTT C. DONNELLY
Chairman, President and
Chief Executive 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.
DAVID ROSENBERG
Executive Vice President and
Chief Financial Officer
Textron Inc.
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
MARK S. BAMFORD
Vice President and
Corporate Controller
Textron Inc.
ROBERT D. EDGAR
Vice President –
Textron Audit Services
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 – Investor
Relations and 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.
ERIC SALANDER
Vice President and
Treasurer
Textron Inc.
BOARD OF DIRECTORS
EXECUTIVE
OFFICERS
SEGMENT AND
BUSINESS UNIT
PRESIDENTS
CORPORATE
OFFICERS
LEADERSHIP
6 Textron 2024 Annual Report
FOOTNOTE TO SELECTED
YEAR-OVER-YEAR FINANCIAL DATA (CONTINUED FROM PAGE 1)
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP
Textron 2024 Annual Report 7
SEGMENT PROFIT
Segment profit is an important measure used by our chief operating decision maker for evaluating performance and for decision-making
purposes. Segment profit for the manufacturing segments excludes the non-service components of pension and postretirement income, net;
LIFO inventory provision; intangible asset amortization; interest expense, net for Manufacturing group; certain corporate expenses; gains/losses
on major business dispositions; special charges; and an inventory valuation charge to write down production-related powersports inventory. The
measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.
ADJUSTED INCOME FROM CONTINUING OPERATIONS AND ADJUSTED DILUTED EARNINGS PER SHARE
Adjusted income from continuing operations and adjusted diluted earnings per share exclude LIFO inventory provision, net of tax; intangible asset
amortization, net of tax; special charges, net of tax; and gains/losses on major business dispositions, 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. 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.
ADJUSTED INCOME FROM CONTINUING OPERATIONS AND ADJUSTED DILUTED EARNINGS PER SHARE GAAP
TO NON-GAAP RECONCILIATION
(Dollars in Millions, Except Per Share Amounts)
2024
2023
INCOME FROM CONTINUING OPERATIONS—GAAP
$ 825
$ 922
Add: LIFO inventory provision, net of tax
133
81
Intangible asset amortization, net of tax
26
30
Special charges, net of tax
58
94
ADJUSTED INCOME FROM CONTINUING OPERATIONS—NON-GAAP
$1,042
$1,127
DILUTED EARNINGS PER SHARE:
INCOME FROM CONTINUING OPERATIONS—GAAP
$ 4.34
$ 4.57
Add: LIFO inventory provision, net of tax
0.70
0.40
Intangible asset amortization, net of tax
0.14
0.15
Special charges, net of tax
0.30
0.47
ADJUSTED INCOME FROM CONTINUING OPERATIONS—NON-GAAP
$ 5.48
$ 5.59
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)
2024
2023
NET CASH FROM OPERATING ACTIVITIES—GAAP
$1,008
$1,270
Less: Capital expenditures
(364)
(402)
Plus: Total pension contribution
44
45
Proceeds from sale of property, plant and equipment
4
18
MANUFACTURING CASH FLOW BEFORE PENSION CONTRIBUTIONS—NON-GAAP
$ 692
$ 931
8 Textron 2024 Annual Report
TEXTRON’S DIVERSE PRODUCT PORTFOLIO
Citation Longitude®
Citation Latitude®
Beechcraft® Denali
TEXTRON AVIATION
E-Z-GO® RXV® ELiTE®
Textron GSE TUG® Endurance®
INDUSTRIAL
Pipistrel Velis Electro
Pipistrel Panthera
Pipistrel Nuuva V300
TEXTRON eAVIATION
Ship-to-Shore Connector
Aerosonde® Mk. 4.8 VTOL UAS
Cottonmouth®
TEXTRON SYSTEMS
Bell FLRAA
Bell 429
BELL
CMV-22 Osprey
Kautex PentatonicTM Cell to Pack
Battery Enclosure
Textron 2024 Annual Report 1
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2 Textron 2024 Annual Report
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ManagementXs Discussion and Analysis of Financial Condition and Results of Operations
+uantitative and +ualitative Disclosures About Market Risk
Financial Statements and Supplementary Data
Changes In and Disagreements 1ith Accountants on Accounting and Financial Disclosure
Controls and Procedures
Other Information
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Directors, Executive Officers and Corporate Governance
Executive Compensation
71
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71
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Certain Relationships and Related Transactions and Director Independence
Principal Accountant Fees and Services
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Form 10-K Summary
75
Signatures
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Textron 2024 Annual Report 3
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At December 2, 2024, we employed approximately 34,000 employees worldwide, with approximately 0 located in the /.S.
and the remainder located outside of the /.S. Approximately 7,400, or 2, of our /.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-
/.S. employees are represented by organiQed works councils. From time to time, our collective bargaining agreements expire.
"istorically, we have been successful in negotiating renewals to expiring agreements without any material disruption of operating
activities however, on September 21, 2024, Textron AviationXs largest union reAected a proposed new contract and initiated a
strike. The strike impacted approximately 5,000 of Textron AviationXs employees at its manufacturing, parts and distribution and
service center facilities in 1ichita, Kansas. On October 20, 2024, Textron Aviation and the union reached an agreement and a
new five-year labor contract was ratified.
Our success is highly dependent upon our ability to hire, train and retain a workforce with the skills necessary for our businesses
to develop and manufacture the products desired by our customers. 1e 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 employees are treated with dignity and
respect.
-)l<0 )n, %).--lo8m-n<
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
careers and include a mix of enterprise-wide and business unit-specific programs. Textron /niversity, an internal corporate
function, provides (i) facilitated face-to-face professional and leadership development programs, (ii) web-based general and
specialiQed 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.
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,
leaders from functional areas within each business belong to enterprise-wide councils that conduct annual talent reviews. These
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.
1e believe by 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 leaders in our industries and communities.
For discussion of certain risks relating to human capital management, see the $is3s $-l)<-, a1ea<2e4ee@ati=ital
ur success is highly dependent on our aility to hire train and retain a *ualified wor$force.
Our success is highly dependent upon our ability to hire, train and retain a workforce with the skills necessary for our businesses
to develop and manufacture the products desired by our customers. 1e 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 siQe 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 siQe
with contract needs. Such challenges in aligning the siQe of our businessesX 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. 1e may not be successful in hiring or retaining such employees which could adversely impact our business
and results of operations.
he increasing costs of certain employee and retiree enefits 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 shareholdersX equity.
Also, changes in pension legislation and regulations could increase the cost associated with our defined benefit pension plans.
ur usiness could e adversely affected y stri$es or wor$ stoppages and other laor issues.
Approximately 7,400, or 2, of our /.S. employees are represented by labor unions under various collective bargaining
agreements with varying durations and expiration dates, and many of our non-/.S. employees are represented by organiQed
councils. From time to time, our collective bargaining agreements expire and are subAect to renegotiation at that time. 1e may not
be able to negotiate successor collective bargaining agreements upon expiration without experiencing labor disputes, including
strikes or work stoppages, or we may be unable to renegotiate such contracts on favorable terms. For example, on September 21,
2024, Textron AviationXs largest union reAected a proposed new contract and engaged in a strike that had an adverse effect on
Textron Aviations ability to meet its production and delivery schedules, and negatively impacted revenues and segment profit in
2024. If we experience any extended interruption of operations at any of our facilities as a result of labor disputes, strikes or other
work stoppages, our business, financial condition or results of operations could be adversely affected. In addition, the workforces
of many of our suppliers and customers are represented by labor unions. 1ork stoppages or strikes at the plants of our key
suppliers could disrupt our manufacturing processes 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.
tem
(<@eA=lDe2&ta44=mme-:si/0< o. A*-:s-+=:ie@tieA
On December 2, 2024, we operated a total of 56 plants located throughout the /.S. and 44 plants outside the /.S. 1e own 60
plants and lease the remainder for a total manufacturing space of approximately 23.6 million square feet. 1e consider the
productive capacity of the plants operated by each of our business segments to be adequate. 1e 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.
tem e5al#@=1ee2i<5A
1e are subAect to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including
proceedings and claims relating to commercial and financial transactions government contracts alleged lack of compliance with
applicable laws and regulations disputes with suppliers, production partners or other third parties product liability patent and
trademark infringement employment disputes and environmental, health and safety matters. Some of these legal proceedings and
claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government
contractor, we are subAect to audits, reviews and investigations to determine whether our operations are being conducted in
accordance with applicable regulatory requirements. /nder federal government procurement regulations, certain claims brought
by the /.S. Government could result in our suspension or debarment from /.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.
tem
ie@&6a@e
eF1lC2i<5
1=mmiAAi=a@t=4#C0li1lG
<<=C<1e2#la<
aFimCm
NCm0e@=4&6a@eA
t6atmaGGet0e
#C@16aAe2C<2e@
t6e#la<
September 29, 2024 T November 2, 2024
500
2.32
500
17,1
November 3, 2024 T November 30, 2024
1,475
4.
1,475
16,406
December 1, 2024 T December 2, 2024
20
0.60
20
15,56
Total
2,795
3.17
2,795
&0-s- s0):-s ?-:- 8=:+0)s-, 8=:s=)n< -, on =lA
*A o=: o):, o. i:-+6
The following graph compares the total return on a cumulative basis at the end of each year of 100 invested in our common stock
on December 31, 2019 with the Standard PoorXs (SP) 500 Stock Index, the SP 500 Aerospace Defense (AD) Index and
the SP 500 Industrials Index, all of which include Textron. The values calculated assume dividend reinvestment.
Textron Inc.
SP 500
SP 500 AD
SP 500 Industrials
75.00
100.00
125.00
150.00
175.00
200.00
Textron Inc.
100.00
10.62
173.72
159.50
11.37
174.29
SP 500
100.00
11.40
152.39
124.79
157.59
199.99
SP 500 AD
100.00
3.94
95.03
111.54
119.09
13.1
SP 500 Industrials
100.00
111.06
134.52
127.15
150.20
17.3
tem-%eAe@De2.
#%T
tem a@9et4=@%e5iAt@aC@16aAeA=4?CitG&e1C@itieA
The following provides information about our fourth quarter 2024 repurchases of equity securities that are registered pursuant to
Section 12 of the Securities Exchange Act of 1934, as amended:
20 Textron 2024 Annual Report
S
Generated 1.0 billion of net cash from operating activities from our manufacturing businesses.
S
Invested 491 million in research and development proAects and 364 million in capital expenditures.
S
Returned 1.1 billion to our shareholders through the repurchase of 12.9 million shares of our common stock.
For an overview of our business segments, including a discussion of our maAor products and services, refer to Item 1. Business. A
discussion of our financial condition and operating results for 2024 compared with 2023 is provided below, while a discussion of
2023 compared with 2022 can be found in Item 7. ManagementXs Discussion and Analysis of Financial Condition and Results of
Operations of our Annual Report on Form 10-K for the year ended December 30, 2023.
In November 2023, the Financial Accounting Standards Board issued Accounting Standard /pdate (AS/) No. 2023-07, %-/m-n<
$-8o:-m-ne@ati=e@ati=meeee1ial6a@5eA
Special charges of 7 million and 126 million in 2024 and 2023, respectively, include restructuring activities and asset
impairment charges as described in Note 15 to the Consolidated Financial Statements on page 62.
N=<Ae@Di1e=m>=ital%eA=C@1eA
Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron consolidated
with its maAority-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. 1e 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 groupXs activities, investors, rating
agencies and analysts use different measures to evaluate each groupXs performance. To support those evaluations, we present
balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.
AAeAAme
Cash and equivalents
1,36
2,121
Debt
3,247
3,526
ShareholdersX equity
7,204
6,97
Capital (debt plus shareholdersX equity)
10,451
10,513
Net debt (net of cash and equivalents) to capital
21
17
Debt to capital
31
34
i
Cash and equivalents
55
60
Debt
341
34
1e 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.
1e 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 473 million in 2025, 457 million in 2026, 444 million in 2027 and 2.5 billion thereafter, and for the Finance group
of 46 million in 2025, 20 million in 2026, 69 million in 2027 and 507 million thereafter.
For the Manufacturing group, we also have purchase obligations that require material future cash outlays totaling 2.7 billion in
2025, 501 million in 2026 and 355 million thereafter. Purchase obligations include undiscounted amounts committed under
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 2 of our purchase obligations represent purchase orders issued for goods and services to
be delivered under firm contracts with the /.S. Government for which we have full recourse under customary contract
termination clauses.
iaA6l=EA
The cash flows from continuing operations for the Finance group as presented in our Consolidated Statements of Cash Flows are
summariQed below:
(In millions)
Operating activities
14
(7)
Investing activities
3
11
100
Financing activities
(16)
(37)
(216)
The Finance groupXs cash flows from investing activities primarily included collections on finance receivables totaling 133
million and 169 million in 2024 and 2023, respectively, partially offset by finance receivable originations of 130 million and
160 million, respectively. Cash flows used in financing activities included payments on long-term and nonrecourse debt of 16
million and 37 million in 2024 and 2023, respectively.
@e2ita1ilitieAa<2"t6e@&=C@1eA=4a>ital
Textron has a senior unsecured revolving credit facility for an aggregate principal amount of 1.0 billion, of which 100 million is
available for the issuance of letters of credit. 1e may elect to increase the aggregate amount of commitments under the facility to
up to 1.3 billion by designating an additional lender or by an existing lender agreeing to increase its commitment. The facility
expires in October 2027 and provides for two one-year extensions at our option with the consent of lenders representing a
maAority of the commitments under the facility. At December 2, 2024 and December 30, 2023, there were no amounts borrowed
against the facility and there were 9 million of outstanding letters of credit issued under the facility.
1e also maintain an effective shelf registration statement filed with the Securities and Exchange Commission that allows us to
issue an unlimited amount of public debt and other securities. On March 1, 2024, we repaid our 350 million 4.30 Notes due
March 2024.
aaA6l=EA
Cash flows from continuing operations for the Manufacturing group as presented in our Consolidated Statements of Cash Flows
are summariQed below:
Textron 2024 Annual Report 27
(In millions)
Operating activities
1,015
1,267
1,490
Investing activities
(24)
(317)
(447)
Financing activities
(1,454)
(13)
(1,091)
Consolidated cash flows from operating activities were 1.0 billion in 2024, compared with 1.3 billion in 2023. The decrease of
252 million in cash flows was largely due to changes in working capital and lower earnings, partially offset by 161 million in
lower net tax payments. Net income tax payments were 191 million and 352 million in 2024 and 2023, respectively. Pension
contributions were 44 million and 45 million in 2024 and 2023, respectively.
In 2024 and 2023, investing cash flows included capital expenditures of 364 million and 402 million, respectively, partially
offset by net proceeds from corporate-owned life insurance policies of 5 million and 40 million, respectively.
Cash flows used by financing activities in 2024 included 1.1 billion of share repurchases and payments on long-term debt of
377 million. In 2023, cash flows used by financing activities included 1.2 billion of share repurchases, partially offset by 34
million of net proceeds from the issuance of long-term debt.
a>tiDeia
o:-i/n +=::-n+A -@+0)n/- :is3
Foreign currency exchange contracts
(14)
(14)
31
1
1
30
In<-:-s< :)<- :is3
Debt
(3,164)
(2,99)
(49)
(3,520)
(3,342)
(54)
i
In<-:-s< :)<- :is3
Finance receivables
439
454
9
417
423
9
Debt
(341)
(311)
U
(34)
(293)
(1)
&0- >)l=- :-8:-s-n>lemeee@ati=e@A6a@e
Continuing operations
4.3
4.62
4.05
Discontinued operations
U
(0.01)
U
aAi1a@e@A6a@e
4.3
4.61
4.05
ilCte2a@e@A6a@e
Continuing operations
4.34
4.57
4.01
Discontinued operations
(0.01)
(0.01)
U
ilCte2a@e@A6a@e
4.33
4.56
4.01
See Notes to the Consolidated Financial Statements.
=e@ati=@e6e@e6e@e6e
Cash and equivalents
1,36
2,121
Accounts receivable, net
949
6
Inventories
4,071
3,914
Other current assets
67
57
T=tal1C@@eaAAetA
16,15
16,195
i
Cash and equivalents
55
60
Finance receivables, net
603
55
Other assets
22
16
T=taliaAAetA
60
661
T=talaAAetA
16,3
16,56
ia0ilitieAa<2A6a@e6=l2e@AJe?CitG
ia0ilitieA
a
Current portion of long-term debt
357
357
Accounts payable
943
1,023
Other current liabilities
3,094
2,99
T=tal1C@@elia0ilitieA
9,229
9,451
i
Other liabilities
64
70
Debt
341
34
T=talilia0ilitieA
405
41
T=tallia0ilitieA
9,634
9,69
&6a@e6=l2e@AJe?CitG
Common stock (14.0 million and 195.0 million shares issued, respectively,
and 13.0 million and 192.9 million shares outstanding, respectively)
23
24
Capital surplus
1,960
1,910
Treasury stock
(2)
(165)
Retained earnings
5,607
5,62
Accumulated other comprehensive loss
(304)
(644)
T=talA6a@e6=l2e@AJe?CitG
7,204
6,97
T=tallia0ilitieAa<2A6a@e6=l2e@AJe?CitG
16,3
16,56
See Notes to the Consolidated Financial Statements.
=ital
&C@>lCA
T@eaAC@G
&t=19
%etai@e6ee@ati<5a1tiDitieA
Income from continuing operations
AdAustments to reconcile income from continuing operations to net cash provided by
operating activities of continuing operations:
Non-cash items:
Depreciation and amortiQation
Deferred income taxes
Asset impairments and powersports inventory charge
Other, net
Changes in assets and liabilities:
Accounts receivable, net
Inventories
Other assets
Accounts payable
Other liabilities
Income taxes, net
Pension, net
Captive finance receivables, net
Other operating activities, net
Net cash provided by operating activities of continuing operations
Net cash used in operating activities of discontinued operations
Net cash provided by operating activities
aA64l=EA4@=mie@ati<5a1tiDitieA
Income from continuing operations
AdAustments to reconcile income from continuing operations to net cash
provided by (used in) operating activities of continuing operations:
Non-cash items:
Depreciation and amortiQation
Deferred income taxes
Asset impairments and powersports inventory charge
Other, net
Changes in assets and liabilities:
Accounts receivable, net
Inventories
Other assets
Accounts payable
Other liabilities
Income taxes, net
Pension, net
Other operating activities, net
Net cash provided by (used in) operating activities of continuing operations
Net cash used in operating activities of discontinued operations
Net cash provided by (used in) operating activities
aA64l=EA4@=mi
i
796
4
35
29
3
27
32
395
396
U
U
1
(46)
(1)
(200)
(2)
(4)
(20)
41
2
U
U
U
115
110
103
(13)
(20)
(9)
(96)
(9)
(26)
U
U
U
(194)
(359)
(55)
U
U
U
205
261
34
U
6
1
(69)
2
235
U
U
U
100
21
277
(5)
(5)
(7)
(25)
5
1
(1)
(1)
U
(225)
(202)
(165)
U
U
U
24
2
7
U
U
U
1,00
1,270
1,461
14
(7)
(1)
(1)
(2)
U
U
U
1,007
1,269
1,459
14
(7)
(364)
(402)
(354)
U
U
U
(13)
(1)
(202)
U
U
U
5
40
23
U
U
U
4
1
22
U
U
U
U
U
U
133
169
147
U
U
U
(130)
(160)
(92)
U
U
U
U
2
45
(2)
(345)
(511)
3
11
100
(1)
U
(14)
U
U
U
U
34
U
U
U
U
(361)
(7)
(1)
(16)
(37)
(216)
(1,122)
(1,16)
(67)
U
U
U
73
44
U
U
U
(12)
(16)
(17)
U
U
U
(30)
(6)
(3)
U
U
U
(1,43)
(776)
(75)
(16)
(37)
(216)
(16)
10
(32)
U
U
U
(735)
15
41
(5)
(12)
(123)
2,121
1,963
1,922
60
72
195
1,36
2,121
1,963
55
60
72
38 Textron 2024 Annual Report
N=teAt=t6e=leA=4=-:nm-n< on<:)+e@tG#lameme)*l- "o:<.olio #=)lie@tG#lamee@ati<5leaAeA
Other assets
360
371
Other current liabilities
55
55
Other liabilities
316
326
1eighted-average remaining lease term (in years)
10.0
10.3
1eighted-average discount rate
4.4
4.70
i
4.30 due 2024
U
350
3.75 due 2025
350
350
4.00 due 2026
350
350
3.65 due 2027
350
350
3.375 due 202
300
300
3.90 due 2029
300
300
3.00 due 2030
650
650
2.45 due 2031
500
500
6.10 due 2033
350
350
Other (weighted-average rate of 5.7 and 2.44, respectively)
97
26
Total Manufacturing group debt
3,247
3,526
Less: Current portion of long-term debt
(357)
(357)
Total Long-term debt
2,90
3,169
i
Variable-rate note due 2025 (weighted-average rate of 5.70 and 6.72, respectively)
25
25
Fixed-rate note due 2027 (4.40)
50
50
Floating Rate Junior Subordinated Notes due 2067 (6.52 and 7.3, respectively)
264
264
Other
2
9
Total Finance group debt
341
34
The following table shows required principal payments during the next five years on debt outstanding at December 2, 2024:
(In millions)
Manufacturing group
357
355
355
375
301
Finance group
26
1
50
U
U
Total
33
356
405
375
301
Textron has a senior unsecured revolving credit facility for an aggregate principal amount of 1.0 billion, of which 100 million is
available for the issuance of letters of credit. 1e may elect to increase the aggregate amount of commitments under the facility to
up to 1.3 billion by designating an additional lender or by an existing lender agreeing to increase its commitment. The facility
expires in October 2027 and provides for two one-year extensions at our option with the consent of lenders representing a
maAority of the commitments under the facility. At December 2, 2024 and December 30, 2023, there were no amounts borrowed
against the facility and there were 9 million of outstanding letters of credit issued under the facility.
l=ati<5%ate C>=@t5@eeme
Debt, excluding leases
(3,164)
(2,99)
(3,520)
(3,342)
i
Finance receivables, excluding leases
439
454
417
423
Debt
(341)
(311)
(34)
(293)
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 utiliQing 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 borrowersX ability to make payments on a timely basis.
N=te
&6a@e6=l2e@AJ?CitG
a>ital&t=19
1e have authoriQation for 15 million shares of preferred stock with a par value of 0.01 and 500 million shares of common stock
with a par value of 0.125. Outstanding common stock activity is presented below:
(In <0o=s)n,s)
Balance at beginning of year
192,9
206,161
216,935
Share repurchases
(12,90)
(16,169)
(13,075)
Share-based compensation activity
2,956
2,906
2,301
Balance at end of year
12,964
192,9
206,161
a@@e6e@e6eeee- in+om- (loss) ):- in+l=,-, in <0- +om8=<)@e6e-m-nitalF>e<2itC@eA
e>@e1iati=<a<2m=@tiHati=<
(In millions)
e1em0e@
e1em0e@
Textron Aviation
4,624
4,542
136
13
13
164
160
152
Bell
2,992
2,69
122
119
0
6
9
90
Textron Systems
2,036
2,00
40
4
57
4
41
49
Industrial
2,37
2,520
62
91
7
70
9
93
Textron eAviation
26
27
4
4
1
7
7
2
Finance
60
661
U
U
U
U
U
1
Corporate
3,42
3,969
U
2
U
7
9
10
Total
16,3
16,56
364
402
354
32
395
397
At December 2, 2024 and December 30, 2023, 6 and 5, respectively, of our property, plant and equipment, net was
located in the /nited States.
N=te
%eDee
Commercial
4,95
1,490
292
3,42
33
50
10,332
/.S. Government
299
2,09
949
33
U
U
3,370
Total revenues
5,24
3,579
1,241
3,515
33
50
13,702
e=5@a>6i1l=1ati=<
/nited States
4,019
2,644
1,112
1,65
19
17
9,676
Europe
371
5
45
693
11
5
1,210
Other international
94
50
4
957
3
2
2,16
Total revenues
5,24
3,579
1,241
3,515
33
50
13,702
CAt=me@tG>e
Commercial
5,155
1,407
22
3,19
32
55
10,750
/.S. Government
21
1,740
953
22
U
U
2,933
Total revenues
5,373
3,147
1,235
3,41
32
55
13,63
e=5@a>6i1l=1ati=<
/nited States
3,73
2,22
1,103
2,067
17
17
9,305
Europe
432
149
54
766
11
2
1,414
Other international
1,06
770
7
1,00
4
36
2,964
Total revenues
5,373
3,147
1,235
3,41
32
55
13,63
CAt=me@tG>e
Commercial
4,959
1,24
274
3,450
16
52
10,035
/.S. Government
114
1,07
9
15
U
U
2,34
Total revenues
5,073
3,091
1,172
3,465
16
52
12,69
e=5@a>6i1l=1ati=<
/nited States
3,520
2,242
1,054
1,62
7
17
,702
Europe
579
139
42
699
6
3
1,46
Other international
974
710
76
904
3
32
2,699
Total revenues
5,073
3,091
1,172
3,465
16
52
12,69
%emaieti=ti=e@i=2i10ela<aAAetAa<20e@=8e1te20ela<aAAetA
Fair value of plan assets at beginning of year
,413
7,943
Actual return on plan assets
06
32
Employer contributions
34
36
Benefits paid
(454)
(444)
Foreign exchange rate changes and other
(27)
46
Fair value of plan assets at end of year
,772
,413
Funded status at end of year
1,94
1,20
(121)
(136)
Actuarial losses (gains) for 2024 and 2023 were largely the result of changes in the discount rate utiliQed.
Amounts recogniQed in our balance sheets are as follows:
#ee@i=2i10eti=e1ial6a@5eA
Special charges recorded in 2024 and 2023 by segment and type of cost are as follows:
(In millions)
&eDe@a<1e
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Defined benefits under salaried plans are based on salary and years of service. "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 2025, we
expect to contribute approximately 50 million to our pension plans. Benefit payments provided below reflect expected future
employee service, as appropriate, and are expected to be paid, net of estimated participant contributions. These payments are
based on the same assumptions used to measure our benefit obligation at the end of 2024. 1hile pension benefit payments
primarily will be paid out of qualified pension trusts, we will pay postretirement benefits other than pensions out of our general
corporate assets. Benefit payments that we expect to pay on an undiscounted basis are as follows:
Textron 2024 Annual Report 63
(In millions)
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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
proAections of any evaluation of effectiveness to future periods are subAect 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 3oung LLP
Boston, Massachusetts
February 6, 2025
We have audited Textron Inc.’s internal control over financial reporting as of December 28, 2024, based on criteria established in
Internal Control— Integrated Framework issued by the Committee of Sponsoring Organizations 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 28, 2024, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Consolidated Balance Sheets of the Company as of December 28, 2024 and December 30, 2023, and the related
Consolidated Statements of Operations, Comprehensive Income, Shareholders' Equity and Cash Flows for each of the three years
in the period ended December 28, 2024, and the related notes and the financial statement schedule listed in the Index at Item 8 of
the Company and our report dated February 6, 2025 expressed an unqualified opinion thereon.
A company’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’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; (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 authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Textron 2024 Annual Report 71
(a) As previously announced, Mr. Frank Connor will retire effective February 2, 2025 after having served as our CFO for
fifteen years. During his tenure Mr. Connor has made significant contributions across Textron to drive financial and
operational excellence. As part of his 2025 duties, Mr. Connor will oversee the completion of the CompanyXs post year-end
financial reporting and related activities and will effect an orderly transition of the CFO role to Mr. Rosenberg and other
succession planning within the finance organiQation. On February 5, 2025, the OrganiQation and Compensation Committee
approved Mr. ConnorXs 2025 compensation to be set at 1,000,000, taking into account Mr. ConnorXs expected duties
through his retirement. Mr. ConnorXs 2024 total target compensation was 6,300,000.W
(b) None of our directors or executive officers adopted or terminated a VRule 10b5-1 trading arrangementW or adopted or
terminated a Vnon-Rule 10b5-1 trading arrangementW (as such terms are defined in Item 40 of Regulation S-K) during the
quarter ended December 2, 2024.
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The information appearing under VCORPORATE GOVERNANCE T Director IndependenceW and VEXEC/TIVE
COMPENSATION T Transactions with Related PersonsW in the Proxy Statement for our 2025 Annual Meeting of Shareholders is
incorporated by reference into this Annual Report on Form 10-K.
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