Special Charges

12 Months Ended

Dec. 31, 2011

Special Charges [Abstract]

Special charges

Note 11. Special Charges

There were no amounts recorded within special charges in 2011. In 2010 and 2009, special charges included restructuring charges related to a global restructuring program that totaled $99 million and $237 million, respectively. In the fourth quarter of 2008, we initiated a restructuring program to reduce overhead costs and improve productivity across the company and announced the exit of portions of our commercial finance business. This restructuring program primarily included corporate and segment direct and indirect workforce reductions and the closure and consolidation of certain operations. With the completion of this program at the end of 2010, we terminated approximately 12,100 positions worldwide representing approximately 28% of our global workforce since the inception of the program and exited 30 leased and owned facilities and plants at a total program cost of $400 million. We record restructuring costs in special charges as these costs are generally of a nonrecurring nature and are not included in segment profit, which is our measure used for evaluating performance and for decision-making purposes.

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 the fourth quarter of 2009, we recorded a goodwill impairment charge of $80 million in connection with our annual goodwill impairment test for the Golf and Turf Care reporting unit, which is part of our Industrial segment.

Special charges by segment for 2010 and 2009 are as follows:

	Restructuring Program
(In millions)	Severance Costs		Curtailment Charges, Net			Asset Impairments		Contract Terminations		Total Restructuring		Other Charges		Total
2010
Cessna	$	34	$	—		$	6	$	3	$	43	$	—	$	43
Finance		7		—			1		3		11		91		102
Corporate		1		—			—		—		1		—		1
Industrial		5		—			9		1		15		—		15
Bell		10		—			—		—		10		—		10
Textron Systems		19		—			—		—		19		—		19
	$	76	$	—		$	16	$	7	$	99	$	91	$	190
2009
Cessna	$	80	$	26		$	54	$	7	$	167	$	—	$	167
Finance		11		1			—		1		13		—		13
Corporate		34		—			—		1		35		—		35
Industrial		6		(4	)		—		3		5		80		85
Bell		9		—			—		—		9		—		9
Textron Systems		5		2			—		1		8		—		8
	$	145	$	25		$	54	$	13	$	237	$	80	$	317

An analysis of our restructuring reserve activity is summarized below:

(In millions)	Severance Costs			Curtailment Charges, Net			Asset Impairment			Contract Terminations			Total
Balance at January 3, 2009	$	36		$	—		$	—		$	1		$	37
Provision in 2009		152			25			54			13			244
Reversals		(7	)		—			—			—			(7	)
Non-cash settlement and loss recognition		—			(25	)		(54	)		—			(79	)
Cash paid		(133	)		—			—			(11	)		(144	)
Balance at January 2, 2010		48			—			—			3			51
Provision in 2010		79			—			16			7			102
Reversals		(3	)		—			—			—			(3	)
Non-cash settlement		—			—			(16	)		—			(16	)
Cash paid		(67	)		—			—			(5	)		(72	)
Balance at January 1, 2011		57			—			—			5			62
Cash paid		(42	)		—			—			(2	)		(44	)
Balance at December 31, 2011	$	15		$	—		$	—		$	3		$	18