Debt and Credit Facilities

12 Months Ended

Dec. 30, 2023

Debt Disclosure [Abstract]

Debt and Credit Facilities

Debt and Credit Facilities

Our debt is summarized in the table below:

(In millions)	December 30, 2023		December 31, 2022
Manufacturing group
4.30% due 2024	$	350	$	350
3.875% due 2025	350		350
4.00% due 2026	350		350
3.65% due 2027	350		350
3.375% due 2028	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		—
Other (weighted-average rate of 2.44% and 2.20%, respectively)	26		32
Total Manufacturing group debt	$	3,526	$	3,182
Less: Current portion of long-term debt	(357)		(7)
Total Long-term debt	$	3,169	$	3,175
Finance group
Variable-rate note due 2025 (weighted-average rate of 6.72% and 5.86%, respectively)	$	25	$	25
Fixed-rate note due 2027 (4.40%)	50		50
Floating Rate Junior Subordinated Notes due 2067 (7.38% and 6.34%, respectively)	264		272
Other	9		28
Total Finance group debt	$	348	$	375

The following table shows required principal payments during the next five years on debt outstanding at December 30, 2023:

(In millions)	2024		2025		2026		2027		2028
Manufacturing group	$	357	$	356	$	355	$	355	$	303
Finance group	8		26		—		50		—
Total	$	365	$	382	$	355	$	405	$	303

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. We 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 majority of the commitments under the facility. At December 30, 2023 and December 31, 2022, there were no amounts borrowed against the facility and there were $9 million of outstanding letters of credit issued under the facility.

Floating Rate Junior Subordinated Notes

The Finance group’s $264 million of Floating Rate Junior Subordinated Notes are unsecured and rank junior to all of its existing and future senior debt. The notes mature on February 15, 2067; however, we have the right to redeem the notes at par at any time and we are obligated to redeem the notes beginning on February 15, 2042.  In 2023 and 2022, TFC repurchased $8 million and $17 million, respectively, of these notes. Interest is variable at the three-month CME Term Secured Overnight Financing Rate + 1.99661%.

Support Agreement

Under a Support Agreement between Textron and TFC, Textron is required to maintain a controlling interest in TFC. The agreement, as amended in December 2015, also requires Textron to ensure that TFC maintains fixed charge coverage of no less than 125% and consolidated shareholders' equity of no less than $125 million. There were no cash contributions required to be paid to TFC in 2023, 2022 and 2021 to maintain compliance with the support agreement.