Special Charges

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

There were no special charges recorded in 2022. Special charges recorded in 2021 and 2020 by segment and type of cost are as follows:


(In millions)	Severance Costs		Contract Terminations and Other		Asset Impairments		Total Restructuring Charges		Other Charges		Total
2021
Industrial	$	4	$	9	$	12	$	25	$	—	$	25
Total special charges	$	4	$	9	$	12	$	25	$	—	$	25
2020
Textron Aviation	$	31	$	—	$	2	$	33	$	32	$	65
Industrial	27		1		6		34		7		41
Textron Systems	11		12		14		37		—		37
Corporate	4		—		—		4		—		4
Total special charges	$	73	$	13	$	22	$	108	$	39	$	147

2020 COVID-19 Restructuring Plan

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. Upon completion of this plan, we had incurred total charges of $133 million, which included severance costs of $77 million, asset impairment charges of $34 million and contract terminations and other costs of $22 million. Of these amounts, $59 million was incurred at Industrial, $37 million at Textron Systems, $33 million at Textron Aviation, and $4 million at Corporate.

In connection with this plan, we ceased manufacturing at TRU Canada's facility in Montreal, resulting in a production suspension of our commercial air transport simulators. As a result of this action and market conditions, we incurred an inventory valuation charge of $55 million in 2020 to write-down TRU Canada’s inventory to its net realizable value and recorded the charge in cost of sales.

2020 Other Charges

In 2020, due to the impact of the COVID-19 pandemic, we experienced decreased demand for our products and services as our customers delayed or ceased orders due to the environment of economic uncertainty. In light of these conditions, Textron Aviation had temporarily shut down most aircraft production. Based on these events, we performed an interim impairment test of the indefinite-lived Beechcraft and King Air trade name intangible assets and recorded an impairment charge of $32 million.

Restructuring Reserve

Our restructuring reserve activity is summarized below:


(In millions)	Severance Costs		Contract Terminations and Other		Total
Balance at January 2, 2021	$	43	$	9	$	52
Provision for 2020 COVID-19 restructuring plan	9		10		19
Cash paid	(27)		(9)		(36)
Reversals	(5)		(1)		(6)
Foreign currency translation	(1)		—		(1)
Balance at January 1, 2022	$	19	$	9	$	28

Cash paid	(13)		(2)		(15)

Foreign currency translation	(1)		—		(1)
Balance at December 31, 2022	$	5	$	7	$	12

The majority of the remaining cash outlays of $12 million is expected to be paid in the first quarter of 2023.