| (Dollars in millions, except per share amounts) | 2021 | 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | |
| Revenues | ||||||||||
| Textron Aviation | 865 | 1,161 | 1,181 | 1,359 | 4,566 | 872 | 747 | 795 | 1,560 | 3,974 |
| Bell | 846 | 891 | 769 | 858 | 3,364 | 823 | 822 | 793 | 871 | 3,309 |
| Textron Systems | 328 | 333 | 299 | 313 | 1,273 | 328 | 326 | 302 | 357 | 1,313 |
| Industrial | 825 | 794 | 730 | 781 | 3,130 | 740 | 562 | 832 | 866 | 3,000 |
| Finance | 15 | 12 | 11 | 11 | 49 | 14 | 15 | 13 | 13 | 55 |
| Total Revenues | 2,879 | 3,191 | 2,990 | 3,322 | 12,382 | 2,777 | 2,472 | 2,735 | 3,667 | 11,651 |
| Segment Profit (Loss)1 | ||||||||||
| Textron Aviation | 47 | 96 | 98 | 137 | 378 | 3 | (66) | (29) | 108 | 16 |
| Bell | 105 | 110 | 105 | 88 | 408 | 115 | 118 | 119 | 110 | 462 |
| Textron Systems | 51 | 48 | 45 | 45 | 189 | 26 | 37 | 40 | 49 | 152 |
| Industrial | 47 | 32 | 23 | 38 | 140 | 9 | (11) | 58 | 55 | 111 |
| Finance | 6 | 3 | 8 | 2 | 19 | 3 | 4 | 1 | 2 | 10 |
| Total Segment Profit | 256 | 289 | 279 | 310 | 1,134 | 156 | 82 | 189 | 324 | 751 |
| Segment Profit (Loss) Margins | ||||||||||
| Textron Aviation | 5.4% | 8.3% | 8.3% | 10.1% | 8.3% | 0.3% | (8.8)% | (3.6)% | 6.9% | 0.4% |
| Bell | 12.4% | 12.3% | 13.7% | 10.3% | 12.1% | 14.0% | 14.4% | 15.0% | 12.6% | 14.0% |
| Textron Systems | 15.5% | 14.4% | 15.1% | 14.4% | 14.8% | 7.9% | 11.3% | 13.2% | 13.7% | 11.6% |
| Industrial | 5.7% | 4.0% | 3.2% | 4.9% | 4.5% | 1.2% | (2.0)% | 7.0% | 6.4% | 3.7% |
| Finance | 40.0% | 25.0% | 72.7% | 18.2% | 38.8% | 21.4% | 26.7% | 7.7% | 15.4% | 18.2% |
| Total Profit Margin | 8.9% | 9.1% | 9.3% | 9.3% | 9.2% | 5.6% | 3.3% | 6.9% | 8.8% | 6.4% |
| Corporate expenses and other, net | (40) | (37) | (23) | (29) | (129) | (14) | (30) | (28) | (50) | (122) |
| Interest expense, net for the Manufacturing Group | (35) | (32) | (28) | (29) | (124) | (34) | (37) | (38) | (36) | (145) |
| Special charges2 | (6) | (4) | (10) | (5) | (25) | (39) | (78) | (7) | (23) | (147) |
| Gain on business disposition3 | 15 | 2 | — | — | 17 | — | — | — | — | — |
| Inventory charge4 | — | — | — | — | — | — | (55) | — | — | (55) |
| Income tax (expense) benefit | (19) | (34) | (33) | (40) | (126) | (19) | 26 | (1) | 21 | 27 |
| Income (loss) from continuing operations—GAAP | 171 | 184 | 185 | 207 | 747 | 50 | (92) | 115 | 236 | 309 |
| Special charges, net of tax2 | 4 | 3 | 8 | 3 | 18 | 30 | 67 | 6 | 16 | 119 |
| Inventory charge, net of tax4 | — | — | — | — | — | — | 55 | — | — | 55 |
| Tax benefit—TRU assets held for sale4 | (15) | (2) | — | — | (17) | — | — | — | (8) | (8) |
| Adjusted income from continuing operations—Non-GAAP5 | 160 | 185 | 193 | 210 | 748 | 80 | 30 | 121 | 244 | 475 |
| Diluted EPS—GAAP | 0.75 | 0.81 | 0.82 | 0.93 | 3.30 | 0.22 | (0.40) | 0.50 | 1.03 | 1.35 |
| Special charges, net of tax2 | 0.02 | 0.01 | 0.03 | 0.01 | 0.08 | 0.13 | 0.29 | 0.03 | 0.07 | 0.52 |
| Gain on business disposition, net of tax3 | (0.07) | (0.01) | — | — | (0.08) | — | — | — | — | — |
| Inventory charge, net of tax4 | — | — | — | — | — | — | 0.24 | — | — | 0.24 |
| Tax benefit—TRU assets held for sale4 | — | — | — | — | — | — | — | — | (0.04) | (0.04) |
| Adjusted Diluted EPS—Non-GAAP5 | 0.70 | 0.81 | 0.85 | 0.94 | 3.30 | 0.35 | 0.13 | 0.53 | 1.06 | 2.07 |
| 1 | Segment profit (loss) is an important measure used for evaluating performance and for decision-making purposes. Segment profit (loss) for the manufacturing segments excludes interest expense, certain corporate expenses, gains/losses on major business dispositions, special charges and an inventory charge related to a restructuring plan initiated in the second quarter of 2020. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense. |
| 2 | 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. The restructuring plan primarily impacted the TRU Simulation + Training business within the Textron Systems segment and the Industrial and Textron Aviation segments. In connection with this plan, we incurred special charges of $25 million in 2021, and $108 million in 2020. Special charges in 2020 also included the impairment of indefinite-lived trade name intangible assets totaling $39 million, primarily in the Textron Aviation segment. |
| 3 | On January 25, 2021, we completed the sale of TRU Simulation + Training Canada Inc. which resulted in an after-tax gain of $17 million. |
| 4 | In connection with the restructuring plan described above, we ceased manufacturing at TRU’s facility in Montreal, Canada, resulting in the production suspension of our commercial air transport simulators. As a result of this action and market conditions, we recorded a $55 million charge in the second quarter of 2020 to write-down the related inventory to its net realizable value. In the fourth quarter of 2020, we reached a definitive agreement to sell TRU Simulation + Training Canada Inc. which resulted in the recognition of an $8 million tax benefit. |
| 5 | Adjusted income from continuing operations and adjusted diluted earnings per share exclude special charges, 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. In addition, we have excluded certain impacts of the enterprise-wide restructuring plan on TRU Simulation + Training Canada Inc. (TRU Canada) that are not included within special charges, but are of a non-recurring nature and are not indicative of ongoing operations. At TRU Canada, an inventory charge is excluded as it relates to the write-down of inventory in connection with an action taken under the restructuring plan as described above. In addition, the tax benefit and the after-tax gain related to TRU Canada are both excluded as they were incurred in connection with the enterprise-wide restructuring plan. |