Revenues

6 Months Ended

Jul. 02, 2022

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

Disaggregation of Revenues

Our revenues disaggregated by major product type are presented below:

	Three Months Ended				Six Months Ended
(In millions)	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Aircraft	$	856	$	797	$	1,502	$	1,332
Aftermarket parts and services	428		364		822		694
Textron Aviation	1,284		1,161		2,324		2,026
Military aircraft and support programs	402		572		999		1,149
Commercial helicopters, parts and services	285		319		522		588
Bell	687		891		1,521		1,737
Textron Systems	293		333		566		661
Fuel systems and functional components	435		440		899		937
Specialized vehicles	436		354		810		682
Industrial	871		794		1,709		1,619
Textron eAviation	5		—		5		—
Finance	14		12		30		27
Total revenues	$	3,154	$	3,191	$	6,155	$	6,070

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

(In millions)	Textron Aviation		Bell		Textron Systems		Industrial		Textron eAviation		Finance		Total
Three months ended July 2, 2022
Customer type:
Commercial	$	1,253	$	279	$	19	$	862	$	5	$	14	$	2,432
U.S. Government	31		408		274		9		—		—		722
Total revenues	$	1,284	$	687	$	293	$	871	$	5	$	14	$	3,154
Geographic location:
United States	$	776	$	504	$	268	$	466	$	1	$	5	$	2,020
Europe	239		43		10		185		3		—		480
Other international	269		140		15		220		1		9		654
Total revenues	$	1,284	$	687	$	293	$	871	$	5	$	14	$	3,154
Three months ended July 3, 2021
Customer type:
Commercial	$	1,127	$	350	$	67	$	787	$	—	$	12	$	2,343
U.S. Government	34		541		266		7		—		—		848
Total revenues	$	1,161	$	891	$	333	$	794	$	—	$	12	$	3,191
Geographic location:
United States	$	885	$	677	$	297	$	406	$	—	$	6	$	2,271
Europe	122		47		9		192		—		1		371
Other international	154		167		27		196		—		5		549
Total revenues	$	1,161	$	891	$	333	$	794	$	—	$	12	$	3,191
Six months ended July 2, 2022
Customer type:
Commercial	$	2,274	$	513	$	38	$	1,697	$	5	$	30	$	4,557
U.S. Government	50		1,008		528		12		—		—		1,598
Total revenues	$	2,324	$	1,521	$	566	$	1,709	$	5	$	30	$	6,155
Geographic location:
United States	$	1,508	$	1,174	$	514	$	892	$	1	$	10	$	4,099
Europe	358		71		18		375		3		1		826
Other international	458		276		34		442		1		19		1,230
Total revenues	$	2,324	$	1,521	$	566	$	1,709	$	5	$	30	$	6,155
Six months ended July 3, 2021
Customer type:
Commercial	$	1,973	$	616	$	125	$	1,607	$	—	$	27	$	4,348
U.S. Government	53		1,121		536		12		—		—		1,722
Total revenues	$	2,026	$	1,737	$	661	$	1,619	$	—	$	27	$	6,070
Geographic location:
United States	$	1,494	$	1,293	$	586	$	784	$	—	$	14	$	4,171
Europe	206		83		19		428		—		1		737
Other international	326		361		56		407		—		12		1,162
Total revenues	$	2,026	$	1,737	$	661	$	1,619	$	—	$	27	$	6,070

Remaining Performance Obligations

Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our contracts that we expect to recognize as revenues 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 Quantity contracts. At July 2, 2022, we had $13.2 billion in remaining performance obligations of which we expect to recognize revenues of approximately 75% through 2023, an additional 21% through 2025, and the balance thereafter.  

Contract Assets and Liabilities 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 July 2, 2022 and January 1, 2022, contract assets totaled $643 million and $717 million, respectively, and contract liabilities totaled $1.6 billion and $1.2 billion, respectively, reflecting timing differences between revenues recognized, billings and payments from customers. We recognized revenues of $293 million and $170 million in the second quarter of 2022 and 2021, respectively, and $499 million and $448 million in the first half of 2022 and 2021, respectively, that were included in the contract liability balance at the beginning of each year.