Revenues

12 Months Ended

Jan. 04, 2020

Revenues

Revenues

Note 14. Revenues

Disaggregation of Revenues

Our revenues disaggregated by major product type are presented below:

(In millions)	2019		2018		2017
Aircraft	$	3,592	$	3,435	$	3,112
Aftermarket parts and services		1,595		1,536		1,574
Textron Aviation		5,187		4,971		4,686
Military aircraft and support programs		1,988		2,030		2,076
Commercial helicopters, parts and services		1,266		1,150		1,241
Bell		3,254		3,180		3,317
Unmanned systems		572		612		714
Marine and land systems		208		311		470
Simulation, training and other		545		541		656
Textron Systems		1,325		1,464		1,840
Fuel systems and functional components		2,237		2,352		2,330
Specialized vehicles		1,561		1,691		1,486
Tools and test equipment		—		248		470
Industrial		3,798		4,291		4,286
Finance		66		66		69
Total revenues	$	13,630	$	13,972	$	14,198

Our 2019 and 2018 revenues for our segments by customer type and geographic location are presented below:

(In millions)	Textron Aviation		Bell		Textron Systems		Industrial		Finance		Total
2019
Customer type:
Commercial	$	4,956	$	1,238	$	359	$	3,775	$	66	$	10,394
U.S. Government		231		2,016		966		23		—		3,236
Total revenues	$	5,187	$	3,254	$	1,325	$	3,798	$	66	$	13,630
Geographic location:
United States	$	3,708	$	2,440	$	1,083	$	1,698	$	34	$	8,963
Europe		678		142		73		1,091		2		1,986
Asia and Australia		244		348		103		374		1		1,070
Other international		557		324		66		635		29		1,611
Total revenues	$	5,187	$	3,254	$	1,325	$	3,798	$	66	$	13,630
2018
Customer type:
Commercial	$	4,734	$	1,114	$	431	$	4,277	$	66	$	10,622
U.S. Government		237		2,066		1,033		14		—		3,350
Total revenues	$	4,971	$	3,180	$	1,464	$	4,291	$	66	$	13,972
Geographic location:
United States	$	3,379	$	2,186	$	1,118	$	1,957	$	27	$	8,667
Europe		612		162		74		1,333		6		2,187
Asia and Australia		336		427		127		357		6		1,253
Other international		644		405		145		644		27		1,865
Total revenues	$	4,971	$	3,180	$	1,464	$	4,291	$	66	$	13,972

In 2017, our revenues included sales to the U.S. Government of approximately $3.1 billion, primarily in the Bell and Textron Systems segments.

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 revenue 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 January 4, 2020, we had $9.8 billion in remaining performance obligations of which we expect to recognize revenues of approximately 75% through 2021, an additional 20% through 2023, 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 January 4, 2020 and December 29, 2018, contract assets totaled $567 million and $461 million, respectively, and contract liabilities totaled $830 million and $974 million, respectively. The changes in these balances in 2019 resulted from timing differences between revenue recognized, billings and payments from customers, largely related to the V-22 program in the Bell segment. During 2019 and 2018, we recognized revenues of $590 million and $817 million, respectively, that were included in the contract liability balance at the beginning of each year.

Reconciliation of ASC 606 to Prior Accounting Standards

The amount by which each financial statement line item is affected in 2018 as a result of applying the accounting standard as discussed in Note 1 is presented below:

	2018
			Effect of the		Under
	As		adoption of		Prior
(In millions, except per share amounts)	Reported		ASC 606		Accounting
Consolidated Statements of Operations
Manufacturing revenues	$	13,906	$	(201)	$	13,705
Total revenues		13,972		(201)		13,771
Cost of sales		11,594		(174)		11,420
Income from continuing operations before income taxes		1,384		(27)		1,357
Income tax expense		162		(7)		155
Income from continuing operations		1,222		(20)		1,202
Net income		1,222		(20)		1,202
Basic earnings per share - continuing operations	$	4.88	$	(0.08)	$	4.80
Diluted earnings per share - continuing operations		4.83		(0.08)		4.75
Consolidated Statements of Comprehensive Income
Other comprehensive loss	$	(130)	$	(20)	$	(150)
Comprehensive income		1,092		(20)		1,072
Consolidated Statements of Cash flows
Net income	$	1,222	$	(20)	$	1,202
Income from continuing operations		1,222		(20)		1,202
Deferred income taxes		49		(7)		42
Accounts receivable, net		50		(16)		34
Inventories		41		(50)		(9)
Other assets		(88)		34		(54)
Other liabilities		(223)		59		(164)
Net cash provided by operating activities of continuing operations		1,109		—		1,109