Special Charges

9 Months Ended

Oct. 01, 2011

Note 2: Special Charges

In the third quarter of 2010, we substantially liquidated the assets held by a Canadian entity within the Finance segment. Accordingly, we recorded a non-cash charge of $91 million ($74 million after-tax) within special charges to reclassify the entity’s cumulative currency translation adjustment amount within other comprehensive income to the statement of operations. The reclassification of this amount had no impact on shareholders’ equity.

In 2010, special charges also included costs incurred under a restructuring program that was completed at the end of 2010. There were no special charges in the first nine months of 2011.

Special charges by segment and type for the three and nine months ended October 2, 2010 are as follows:


	Restructuring
	Severance			Contract
(In millions)	Costs			Terminations		Other		Total

Three Months Ended October 2, 2010

Cessna	$	15		$	—	$	—	$	15
Textron Systems		4			—		—		4
Industrial		—			1		—		1
Finance		1			2		91		94

	$	20		$	3	$	91	$	114

Nine Months Ended October 2, 2010

Cessna	$	29		$	2	$	—	$	31
Bell		1			—		—		1
Textron Systems		5			—		—		5
Industrial		—			1		—		1
Finance		6			3		91		100
Corporate		(2	)		—		—		(2	)

	$	39		$	6	$	91	$	136

An analysis of our restructuring reserve activity is summarized below:


	Severance			Contract
(In millions)	Costs			Terminations			Total

Balance at January 1, 2011	$	57		$	5		$	62
Cash paid		(40	)		(1	)		(41	)

Balance at October 1, 2011	$	17		$	4		$	21