Revenues

6 Months Ended

Jul. 01, 2023

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

Disaggregation of Revenues

Our revenues for our segments disaggregated by major product type are presented below:

	Three Months Ended				Six Months Ended
(In millions)	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Aircraft	$	920	$	856	$	1,638	$	1,502
Aftermarket parts and services	442		428		873		822
Textron Aviation	1,362		1,284		2,511		2,324
Military aircraft and support programs	395		402		780		999
Commercial helicopters, parts and services	306		285		542		522
Bell	701		687		1,322		1,521
Textron Systems	306		293		612		566
Fuel systems and functional components	523		435		1,011		899
Specialized vehicles	503		436		947		810
Industrial	1,026		871		1,958		1,709
Textron eAviation	11		5		15		5
Finance	18		14		30		30
Total revenues	$	3,424	$	3,154	$	6,448	$	6,155

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 1, 2023
Customer type:
Commercial	$	1,321	$	301	$	70	$	1,024	$	11	$	18	$	2,745
U.S. Government	41		400		236		2		—		—		679
Total revenues	$	1,362	$	701	$	306	$	1,026	$	11	$	18	$	3,424
Geographic location:
United States	$	933	$	534	$	274	$	566	$	7	$	4	$	2,318
Europe	159		35		17		201		4		1		417
Other international	270		132		15		259		—		13		689
Total revenues	$	1,362	$	701	$	306	$	1,026	$	11	$	18	$	3,424
Three months ended July 2, 2022
Customer type:
Commercial	$	1,253	$	279	$	65	$	862	$	5	$	14	$	2,478
U.S. Government	31		408		228		9		—		—		676
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
Six months ended July 1, 2023
Customer type:
Commercial	$	2,428	$	533	$	144	$	1,951	$	15	$	30	$	5,101
U.S. Government	83		789		468		7		—		—		1,347
Total revenues	$	2,511	$	1,322	$	612	$	1,958	$	15	$	30	$	6,448
Geographic location:
United States	$	1,769	$	994	$	549	$	1,060	$	8	$	8	$	4,388
Europe	225		54		31		405		6		1		722
Other international	517		274		32		493		1		21		1,338
Total revenues	$	2,511	$	1,322	$	612	$	1,958	$	15	$	30	$	6,448
Six months ended July 2, 2022
Customer type:
Commercial	$	2,274	$	513	$	130	$	1,697	$	5	$	30	$	4,649
U.S. Government	50		1,008		436		12		—		—		1,506
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

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 1, 2023, we had $14.3 billion in remaining performance obligations of which we expect to recognize revenues of approximately 80% through 2024, an additional 17% through 2026, 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 1, 2023 and December 31, 2022, contract assets totaled $501 million and $680 million, respectively, and contract liabilities totaled $1.7 billion and $1.5 billion, respectively, reflecting timing differences between revenues recognized, billings and payments from customers. We recognized revenues of $380 million and $293 million in the second quarter of 2023 and 2022, respectively, and $696 million and $499 million in the first half of 2023 and 2022, respectively, that were included in the contract liability balance at the beginning of each year.