Revenues

6 Months Ended

Jul. 04, 2020

Revenues

Revenues

Note 12. Revenues

Disaggregation of Revenues

Our revenues disaggregated by major product type are presented below:

	Three Months Ended				Six Months Ended
	July 4,		June 29,		July 4,		June 29,
(In millions)	2020		2019		2020		2019
Aircraft	$	478	$	733	$	993	$	1,499
Aftermarket parts and services		269		390		626		758
Textron Aviation		747		1,123		1,619		2,257
Military aircraft and support programs		602		482		1,222		990
Commercial helicopters, parts and services		220		289		423		520
Bell		822		771		1,645		1,510
Unmanned systems		169		135		317		269
Marine and land systems		43		60		91		108
Simulation, training and other		114		113		246		238
Textron Systems		326		308		654		615
Fuel systems and functional components		271		592		736		1,186
Specialized vehicles		291		417		566		735
Industrial		562		1,009		1,302		1,921
Finance		15		16		29		33
Total revenues	$	2,472	$	3,227	$	5,249	$	6,336

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

(In millions)	Textron Aviation		Bell		Textron Systems		Industrial		Finance		Total
Three months ended July 4, 2020
Customer type:
Commercial	$	716	$	216	$	57	$	559	$	15	$	1,563
U.S. Government		31		606		269		3		—		909
Total revenues	$	747	$	822	$	326	$	562	$	15	$	2,472
Geographic location:
United States	$	518	$	681	$	276	$	287	$	8	$	1,770
Europe		70		21		11		127		—		229
Asia and Australia		50		66		15		76		—		207
Other international		109		54		24		72		7		266
Total revenues	$	747	$	822	$	326	$	562	$	15	$	2,472
Three months ended June 29, 2019
Customer type:
Commercial	$	1,077	$	279	$	83	$	1,004	$	16	$	2,459
U.S. Government		46		492		225		5		—		768
Total revenues	$	1,123	$	771	$	308	$	1,009	$	16	$	3,227
Geographic location:
United States	$	736	$	571	$	249	$	466	$	7	$	2,029
Europe		164		47		17		291		—		519
Asia and Australia		65		79		13		84		2		243
Other international		158		74		29		168		7		436
Total revenues	$	1,123	$	771	$	308	$	1,009	$	16	$	3,227
Six months ended July 4, 2020
Customer type:
Commercial	$	1,564	$	414	$	128	$	1,298	$	29	$	3,433
U.S. Government		55		1,231		526		4		—		1,816
Total revenues	$	1,619	$	1,645	$	654	$	1,302	$	29	$	5,249
Geographic location:
United States	$	1,115	$	1,371	$	562	$	616	$	14	$	3,678
Europe		154		45		23		355		1		578
Asia and Australia		173		116		35		129		1		454
Other international		177		113		34		202		13		539
Total revenues	$	1,619	$	1,645	$	654	$	1,302	$	29	$	5,249
Six months ended June 29, 2019
Customer type:
Commercial	$	2,169	$	509	$	157	$	1,909	$	33	$	4,777
U.S. Government		88		1,001		458		12		—		1,559
Total revenues	$	2,257	$	1,510	$	615	$	1,921	$	33	$	6,336
Geographic location:
United States	$	1,525	$	1,149	$	506	$	855	$	15	$	4,050
Europe		347		67		40		602		1		1,057
Asia and Australia		88		161		29		161		3		442
Other international		297		133		40		303		14		787
Total revenues	$	2,257	$	1,510	$	615	$	1,921	$	33	$	6,336

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 4, 2020, we had $9.1 billion in remaining performance obligations of which we expect to recognize revenues of approximately 68% through 2021, an additional 24% 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 July 4, 2020 and January 4, 2020, contract assets totaled $542 million and $567 million, respectively, and contract liabilities totaled $927 million and $830 million, respectively, reflecting timing differences between revenue recognized, billings

and payments from customers. During the second quarter and first half of 2020, we recognized revenues of $121 million and $352 million, respectively, that were included in the contract liability balance at January 4, 2020. We recognized revenues of $146 million and $457 million in the second quarter and first half of 2019, respectively, that were included in the contract liability balance at December 29, 2018.