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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 1, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______.
Commission File Number 1-5480
Textron Inc.
(Exact name of registrant as specified in its charter)
Delaware05-0315468
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
40 Westminster Street, Providence, RI
02903
(Address of principal executive offices)(Zip code)
(401) 421-2800
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol (s)Name of each exchange on which registered
Common stock, $0.125 par valueTXT
New York Stock Exchange (NYSE)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check one):
Large accelerated filerþAccelerated filerNon-accelerated filer
Smaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No þ
As of April 14, 2023, there were 201,679,524 shares of common stock outstanding.


Table of Contents

TEXTRON INC.
Index to Form 10-Q
For the Quarterly Period Ended April 1, 2023

    
Page
Item 5.
Other Information
2

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

TEXTRON INC.
Consolidated Statements of Operations (Unaudited)
Three Months Ended
(In millions, except per share amounts)April 1,
2023
April 2,
2022
Revenues
Manufacturing product revenues$2,550 $2,448 
Manufacturing service revenues462 537 
Finance revenues12 16 
Total revenues3,024 3,001 
Costs, expenses and other
Cost of products sold2,176 2,069 
Cost of services sold355 423 
Selling and administrative expense305 305 
Interest expense, net20 32 
Non-service components of pension and postretirement income, net(59)(60)
Total costs, expenses and other2,797 2,769 
Income before income taxes227 232 
Income tax expense36 39 
Net income$191 $193 
Earnings per share
Basic$0.93 $0.89 
Diluted$0.92 $0.88 
See Notes to the Consolidated Financial Statements.
3

Table of Contents

TEXTRON INC.
Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended
(In millions)April 1,
2023
April 2,
2022
Net income$191 $193 
Other comprehensive income, net of tax
Pension and postretirement benefits adjustments, net of reclassifications 17 
Foreign currency translation adjustments28 (14)
Deferred gains (losses) on hedge contracts, net of reclassifications(2)7 
Other comprehensive income26 10 
Comprehensive income$217 $203 
See Notes to the Consolidated Financial Statements.
4

Table of Contents

TEXTRON INC.
Consolidated Balance Sheets (Unaudited)
(Dollars in millions)April 1,
2023
December 31,
2022
Assets
Manufacturing group
Cash and equivalents$1,719 $1,963 
Accounts receivable, net928 855 
Inventories3,934 3,550 
Other current assets949 1,033 
Total current assets7,530 7,401 
Property, plant and equipment, less accumulated depreciation
   and amortization of $5,168 and $5,084, respectively
2,505 2,523 
Goodwill2,289 2,283 
Other assets3,416 3,422 
Total Manufacturing group assets15,740 15,629 
Finance group
Cash and equivalents80 72 
Finance receivables, net555 563 
Other assets18 29 
Total Finance group assets653 664 
Total assets$16,393 $16,293 
Liabilities and shareholders’ equity
Liabilities
Manufacturing group
Current portion of long-term debt$357 $7 
Accounts payable1,281 1,018 
Other current liabilities2,651 2,645 
Total current liabilities4,289 3,670 
Other liabilities1,829 1,879 
Long-term debt2,826 3,175 
Total Manufacturing group liabilities8,944 8,724 
Finance group
Other liabilities74 81 
Debt367 375 
Total Finance group liabilities441 456 
Total liabilities9,385 9,180 
Shareholders’ equity
Common stock26 26 
Capital surplus1,942 1,880 
Treasury stock(464)(84)
Retained earnings6,090 5,903 
Accumulated other comprehensive loss(586)(612)
Total shareholders’ equity7,008 7,113 
Total liabilities and shareholders’ equity$16,393 $16,293 
Common shares outstanding (in thousands)201,980 206,161 
See Notes to the Consolidated Financial Statements.
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TEXTRON INC.
Consolidated Statements of Cash Flows (Unaudited)
For the Three Months Ended April 1, 2023 and April 2, 2022, respectively
Consolidated
(In millions)20232022
Cash flows from operating activities
Net income$191 $193 
Adjustments to reconcile net income to net cash provided by operating activities:
Non-cash items:
Depreciation and amortization92 93 
Deferred income taxes(32)(52)
Other, net39 36 
Changes in assets and liabilities:
Accounts receivable, net(69)37 
Inventories(380)(176)
Other assets128 (4)
Accounts payable261 38 
Other liabilities(74)26 
Income taxes, net50 71 
Pension, net(51)(41)
Captive finance receivables, net6 18 
Other operating activities, net2 2 
Net cash provided by operating activities163 241 
Cash flows from investing activities
Capital expenditures(62)(48)
Net proceeds from corporate-owned life insurance policies20 2 
Proceeds from sale of property, plant and equipment 18 
Finance receivables repaid12 13 
Other investing activities, net1 43 
Net cash provided by (used in) investing activities(29)28 
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt(17)(121)
Purchases of Textron common stock(377)(157)
Dividends paid(4)(5)
Proceeds from options exercised27 28 
Other financing activities, net(5)(3)
Net cash used in financing activities(376)(258)
Effect of exchange rate changes on cash and equivalents6 (2)
Net increase (decrease) in cash and equivalents(236)9 
Cash and equivalents at beginning of period2,035 2,117 
Cash and equivalents at end of period$1,799 $2,126 
See Notes to the Consolidated Financial Statements.
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TEXTRON INC.
Consolidated Statements of Cash Flows (Unaudited) (Continued)
For the Three Months Ended April 1, 2023 and April 2, 2022, respectively

Manufacturing GroupFinance Group
(In millions)2023202220232022
Cash flows from operating activities
Net income$185 $185 $6 $8 
Adjustments to reconcile net income to net cash
   provided by (used in) operating activities:
Non-cash items:
Depreciation and amortization92 93   
Deferred income taxes(32)(45) (7)
Other, net41 37 (2)(1)
Changes in assets and liabilities:
Accounts receivable, net(69)37   
Inventories(380)(176)  
Other assets121 (4)7  
Accounts payable261 38   
Other liabilities(65)37 (9)(11)
Income taxes, net48 62 2 9 
Pension, net(51)(41)  
Other operating activities, net2 2   
Net cash provided by (used in) operating activities153 225 4 (2)
Cash flows from investing activities
Capital expenditures(62)(48)  
Net proceeds from corporate-owned life insurance policies20 2   
Proceeds from sale of property, plant and equipment 18   
Finance receivables repaid  35 40 
Finance receivables originated  (17)(9)
Other investing activities, net  1 43 
Net cash provided by (used in) investing activities(42)(28)19 74 
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt(2)(2)(15)(119)
Purchases of Textron common stock(377)(157)  
Dividends paid(4)(5)  
Proceeds from options exercised27 28   
Other financing activities, net(5)(3)  
Net cash used in financing activities(361)(139)(15)(119)
Effect of exchange rate changes on cash and equivalents6 (2)  
Net increase (decrease) in cash and equivalents(244)56 8 (47)
Cash and equivalents at beginning of period1,963 1,922 72 195 
Cash and equivalents at end of period$1,719 $1,978 $80 $148 
See Notes to the Consolidated Financial Statements.
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TEXTRON INC.
Notes to the Consolidated Financial Statements (Unaudited)

Note 1. Basis of Presentation
Our Consolidated Financial Statements include the accounts of Textron Inc. (Textron) and its majority-owned subsidiaries.  We have prepared these unaudited consolidated financial statements in accordance with accounting principles generally accepted in the U.S. for interim financial information.  Accordingly, these interim financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements.  The consolidated interim financial statements included in this quarterly report should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022.  In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.
Our financings are conducted through two separate borrowing groups.  The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements. All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group.
Use of Estimates
We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements.  Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined.
Contract Estimates
For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period.  Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable.  
In the first quarter of 2023, our cumulative catch-up adjustments increased segment profit by $8 million and net income by $6 million, $0.03 per diluted share. In the first quarter of 2022, our cumulative catch-up adjustments decreased segment profit by $17 million and net income by $13 million, $0.06 per diluted share.
Note 2. Accounts Receivable and Finance Receivables
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)April 1,
2023
December 31,
2022
Commercial$824 $755 
U.S. Government contracts126 124 
950 879 
Allowance for credit losses(22)(24)
Total accounts receivable, net$928 $855 
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Finance Receivables
Finance receivables are presented in the following table:
(In millions)April 1,
2023
December 31,
2022
Finance receivables$577 $587 
Allowance for credit losses(22)(24)
Total finance receivables, net$555 $563 
Finance Receivable Portfolio Quality
We internally assess the quality of our finance receivables based on a number of key credit quality indicators and statistics such as delinquency, loan balance to estimated collateral value and the financial strength of individual borrowers and guarantors.  Because many of these indicators are difficult to apply across an entire class of receivables, we evaluate individual loans on a quarterly basis and classify these loans into three categories based on the key credit quality indicators for the individual loan. These three categories are performing, watchlist and nonaccrual.
We classify finance receivables as nonaccrual if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically classify accounts as nonaccrual once they are contractually delinquent by more than three months unless collection of principal and interest is not doubtful. Accounts are classified as watchlist when credit quality indicators have deteriorated as compared with typical underwriting criteria, and we believe collection of full principal and interest is probable but not certain. All other finance receivables that do not meet the watchlist or nonaccrual categories are classified as performing.
We measure delinquency based on the contractual payment terms of our finance receivables.  In determining the delinquency aging category of an account, any/all principal and interest received is applied to the most past-due principal and/or interest amounts due. If a significant portion of the contractually due payment is delinquent, the entire finance receivable balance is reported in accordance with the most past-due delinquency aging category.
Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:
(Dollars in millions)April 1,
2023
December 31,
2022
Performing$512$515
Watchlist2626
Nonaccrual3946
Nonaccrual as a percentage of finance receivables6.76%7.84%
Current and less than 31 days past due$570$579
31-60 days past due57
61-90 days past due2
Over 90 days past due1
60+ days contractual delinquency as a percentage of finance receivables0.35%0.17%
At April 1, 2023, 33% of our performing finance receivables were originated since the beginning of 2021 and 30% were originated from 2018 to 2020. For finance receivables categorized as watchlist 94% were originated since the beginning of 2020 and for nonaccrual, 65% were originated from 2018 to 2020.
On a quarterly basis, we evaluate individual larger balance accounts for impairment.  A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality indicators described above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of principal and interest remains probable, but the account’s original terms have been, or are expected to be, significantly modified.  If the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification.
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A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles.
(In millions)April 1,
2023
December 31,
2022
Finance receivables evaluated collectively$451 $450 
Finance receivables evaluated individually39 46 
Allowance for credit losses based on collective evaluation19 21 
Allowance for credit losses based on individual evaluation3 3 
Impaired finance receivables with specific allowance for credit losses$12 $15 
Impaired finance receivables with no specific allowance for credit losses27 31 
Unpaid principal balance of impaired finance receivables53 60 
Allowance for credit losses on impaired finance receivables3 3 
Average recorded investment of impaired finance receivables43 67 
Note 3. Inventories
Inventories are composed of the following:
(In millions)April 1,
2023
December 31,
2022
Finished goods$1,059 $991 
Work in process1,753 1,540 
Raw materials and components1,122 1,019 
Total inventories$3,934 $3,550 
Note 4. Warranty Liability
Changes in our warranty liability are as follows:
Three Months Ended
(In millions)April 1,
2023
April 2,
2022
Beginning of period$149 $127 
Provision15 16 
Settlements(18)(19)
Adjustments*3 6 
End of period$149 $130 
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Note 5. Leases
We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide through operating leases. Our operating leases have remaining lease terms up to 26 years, which include options to extend the lease term for periods up to 25 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $17 million in both the first quarter of 2023 and 2022. Variable and short-term lease costs were not significant. Cash paid for operating leases totaled $17 million in both the first quarter of 2023 and 2022, and is classified in cash flows from operating activities. Noncash transactions totaled $15 million and $7 million in the first quarter of 2023 and 2022, respectively, reflecting the recognition of operating lease assets and liabilities for new or extended leases.
Balance sheet and other information related to our operating leases is as follows:
(Dollars in millions)April 1,
2023
December 31,
2022
Other assets$375$372
Other current liabilities5554
Other liabilities328326
Weighted-average remaining lease term (in years)10.410.4
Weighted-average discount rate4.29%4.14%
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At April 1, 2023, maturities of our operating lease liabilities on an undiscounted basis totaled $53 million for the remainder of 2023, $63 million for 2024, $55 million for 2025, $42 million for 2026, $37 million for 2027 and $237 million thereafter.
Note 6. Derivative Instruments and Fair Value Measurements
We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  We prioritize the assumptions that market participants would use in pricing the asset or liability into a three-tier fair value hierarchy. This fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs in which little or no market data exist, requiring companies to develop their own assumptions. Observable inputs that do not meet the criteria of Level 1, which include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets and liabilities in markets that are not active, are categorized as Level 2. Level 3 inputs are those that reflect our estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Valuation techniques for assets and liabilities measured using Level 3 inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data. These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain.
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
We manufacture and sell our products in a number of countries throughout the world, and, therefore, we are exposed to movements in foreign currency exchange rates. We primarily utilize foreign currency exchange contracts with maturities of no more than three years to manage this volatility. These contracts qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales, inventory purchases and overhead expenses. Net gains and losses recognized in earnings and Accumulated other comprehensive loss on cash flow hedges, including gains and losses related to hedge ineffectiveness, were not significant in the periods presented.
Our foreign currency exchange contracts are measured at fair value using the market method valuation technique. The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers. These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2.  At April 1, 2023 and December 31, 2022, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $623 million and $354 million, respectively. At April 1, 2023, the fair value amounts of our foreign currency exchange contracts were a $2 million asset and a $11 million liability. At December 31, 2022, the fair value amount of our foreign currency exchange contracts was an $11 million liability.
Our Finance group enters into interest rate swap agreements to mitigate certain exposures to fluctuations in interest rates. By using these contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. At April 1, 2023 and December 31, 2022, we had a swap agreement for a notional amount of $272 million that matures in August 2023, and a swap agreement for a notional amount of $25 million that matures in June 2025. The fair value of these swap agreements was a $5 million asset at April 1, 2023 and an $8 million asset at December 31, 2022. The fair value of these swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2.
Assets and Liabilities Not Recorded at Fair Value
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
April 1, 2023December 31, 2022
CarryingEstimatedCarryingEstimated
(In millions)ValueFair ValueValueFair Value
Manufacturing group
Debt, excluding leases$(3,175)$(2,960)$(3,175)$(2,872)
Finance group
Finance receivables, excluding leases388 381 390 369 
Debt(367)(298)(375)(294)
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Fair value for the Manufacturing group debt is determined using market observable data for similar transactions (Level 2).  The fair value for the Finance group debt was determined primarily based on discounted cash flow analyses using observable market inputs from debt with similar duration, subordination and credit default expectations (Level 2). Fair value estimates for finance receivables were determined based on internally developed discounted cash flow models primarily utilizing significant unobservable inputs (Level 3), which include estimates of the rate of return, financing cost, capital structure and/or discount rate expectations of current market participants combined with estimated loan cash flows based on credit losses, payment rates and expectations of borrowers’ ability to make payments on a timely basis.
Note 7. Shareholders’ Equity
A reconciliation of Shareholders’ equity is presented below:
(In millions)Common
Stock
Capital
Surplus
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Shareholders'
Equity
Three months ended April 1, 2023
Beginning of period$26 $1,880 $(84)$5,903 $(612)$7,113 
Net income— — — 191 — 191 
Other comprehensive income— — — — 26 26 
Share-based compensation activity— 62 — — — 62 
Dividends declared— — — (4)— (4)
Purchases of common stock, including excise tax*— — (380)— — (380)
End of period$26 $1,942 $(464)$6,090 $(586)$7,008 
Three months ended April 2, 2022
Beginning of period$28 $1,863 $(157)$5,870 $(789)$6,815 
Net income— — — 193 — 193 
Other comprehensive income— — — — 10 10 
Share-based compensation activity— 61 — — — 61 
Dividends declared— — — (5)— (5)
Purchases of common stock— — (157)— — (157)
End of period$28 $1,924 $(314)$6,058 $(779)$6,917 
*Includes $3 million accrued for the excise tax imposed on common share repurchases beginning on January 1, 2023 as part of the Inflation Reduction Act.
Dividends per share of common stock were $0.02 for both the first quarter of 2023 and 2022.
Earnings Per Share
We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period.  Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options.  
The weighted-average shares outstanding for basic and diluted EPS are as follows:
Three Months Ended
(In thousands)April 1,
2023
April 2,
2022
Basic weighted-average shares outstanding204,835 217,010 
Dilutive effect of stock options2,176 2,597 
Diluted weighted-average shares outstanding207,011 219,607 
Stock options to purchase 2.0 million and 1.0 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for the first quarter of 2023 and 2022, respectively, as their effect would have been anti-dilutive.
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Accumulated Other Comprehensive Loss and Other Comprehensive Income
The components of Accumulated other comprehensive loss are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments
Foreign
Currency
Translation
Adjustments
Deferred
Gains (Losses)
on Hedge
Contracts
Accumulated
Other
Comprehensive
Loss
Balance at December 31, 2022$(516)$(94)$(2)$(612)
Other comprehensive income before reclassifications 28 (3)25 
Reclassified from Accumulated other comprehensive loss  1 1 
Balance at April 1, 2023$(516)$(66)$(4)$(586)
Balance at January 1, 2022$(799)$9 $1 $(789)
Other comprehensive loss before reclassifications (14)7 (7)
Reclassified from Accumulated other comprehensive loss17   17 
Balance at April 2, 2022$(782)$(5)$8 $(779)
The before and after-tax components of Other comprehensive income are presented below:
April 1, 2023April 2, 2022
(In millions)Pre-Tax
Amount
Tax
(Expense)
Benefit
After-tax
Amount
Pre-Tax
Amount
Tax
(Expense)
Benefit
After-tax
Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial (gain) loss*$(2)$1 $(1)$21 $(5)$16 
Amortization of prior service cost*2 (1)1 2 (1)1 
Pension and postretirement benefits adjustments, net   23 (6)17 
Foreign currency translation adjustments28  28 (14) (14)
Deferred gains (losses) on hedge contracts:
Current deferrals(4)1 (3)10 (3)7 
Reclassification adjustments2 (1)1    
Deferred gains (losses) on hedge contracts, net(2) (2)10 (3)7 
Total$26 $ $26 $19 $(9)$10 
*These components of other comprehensive income are included in the computation of net periodic pension cost (income). See Note 15 of our 2022 Annual Report on Form 10-K for additional information.
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Note 8. Segment Information
We operate in, and reported financial information for, the following six business segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation and Finance. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Beginning in 2023, we changed how we measure our manufacturing segment operating results to exclude the non-service components of pension and postretirement income, net; LIFO inventory provision; and intangible asset amortization. This measure also continues to exclude interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. The prior period has been recast to conform to this presentation. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.
Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below:
Three Months Ended
(In millions)April 1,
2023
April 2,
2022
Revenues
Textron Aviation$1,149 $1,040 
Bell621 834 
Textron Systems306 273 
Industrial932 838 
Textron eAviation4  
Finance12 16 
Total revenues$3,024 $3,001 
Segment Profit
Textron Aviation$125 $110 
Bell60 91 
Textron Systems34 28 
Industrial41 39 
Textron eAviation(9) 
Finance8 9 
Segment profit259 277 
Corporate expenses and other, net(39)(52)
Interest expense, net for Manufacturing group(17)(28)
LIFO inventory provision(25)(12)
Intangible asset amortization(10)(13)
Non-service components of pension and postretirement income, net59 60 
Income before income taxes$227 $232 
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Note 9. Revenues
Disaggregation of Revenues
Our revenues disaggregated by major product type are presented below:
Three Months Ended
(In millions)April 1,
2023
April 2,
2022
Aircraft$718 $646 
Aftermarket parts and services431 394 
Textron Aviation1,149 1,040 
Military aircraft and support programs385 597 
Commercial helicopters, parts and services236 237 
Bell621 834 
Textron Systems306 273 
Fuel systems and functional components488 464 
Specialized vehicles444 374 
Industrial932 838 
Textron eAviation4  
Finance12 16 
Total revenues$3,024 $3,001 
Our revenues for our segments by customer type and geographic location are presented below:
(In millions)Textron
Aviation
BellTextron
Systems
IndustrialTextron eAviationFinanceTotal
Three months ended April 1, 2023
Customer type:
Commercial$1,107 $232 $74 $927 $4 $12 $2,356 
U.S. Government42 389 232 5   668 
Total revenues$1,149 $621 $306 $932 $4 $12 $3,024 
Geographic location:
United States$836 $460 $275 $494 $1 $4 $2,070 
Europe66 19 14 204 2  305 
Other international247 142 17 234 1 8 649 
Total revenues$1,149 $621 $306 $932 $4 $12 $3,024 
Three months ended April 2, 2022
Customer type:
Commercial$1,021 $234 $65 $835 $ $16 $2,171 
U.S. Government