Textron (TXT) 10-K risk factor changes: FY2022 vs FY2021

Our business [removed: is being] [added: was] adversely impacted, and [removed: is expected to continue to] [added: may again] be adversely impacted, by the coronavirus (COVID-19) pandemic.

The effects of COVID-19 have included and could continue to include disruption of the operation [removed: or temporary closure] of certain of our facilities or the facilities of our customers, suppliers or business partners, as well as other disruptions in our supply chains or our customers’ supply [removed: chains, particularly in the supply chains serving our recreational vehicle products and in our automotive OEM supply chains, disruptions in which have caused and may continue to cause reduced demand for our automotive products.][added: chains.]

[removed: Unexpected events, such as the COVID-19 pandemic, have adversely impacted] [added: The] demand for our aircraft products [added: has been adversely impacted by unexpected events] and may [removed: continue to do so.][added: be impacted by such events in the future.]

Changes in economic conditions [removed: has] [added: have] in the past caused, and in the future may cause, customers to request that firm orders be rescheduled, deferred or cancelled.

During [removed: 2021,] [added: 2022,] we derived approximately [removed: 26%] [added: 22%] of our revenues from sales to a variety of U.S. Government entities.

The use of certain contract award types by the U.S. Government [added: and the competitive bidding process] increases pricing pressure and [removed: cost.][added: cost and may result in delayed revenues and profit.]

The U.S. Government [removed: increasingly] relies upon competitive contract award types, including indefinite-delivery, indefinite-quantity, other transaction agreements and multi-award contracts, which have the potential to create increased pricing pressure, as well as to increase our cost by requiring that we submit multiple bids or share in costs.

Even if we are successful in obtaining an award, we may encounter bid protests from unsuccessful bidders on new program [removed: awards.][added: awards, such as the protest filed by our competitor on the FLRAA program.]

Bid protests could result in significant expenses associated with justifying the selection or due to potential program [removed: delays,] [added: delays] and could result in contract modifications that alter schedule or scope or even cause the loss of the contract award.

Under fixed-price contracts, generally we receive a fixed price irrespective of the actual costs we incur, and, consequently, [added: we absorb] any costs in excess of the fixed [removed: price are absorbed by us.][added: price.]

Under fixed-price incentive contracts, we share with the U.S. Government cost underrun savings, which are derived from total cost being less than target costs; we also share in cost overruns, which occur when total costs exceed target costs up to a negotiated cost [removed: ceiling, but] [added: ceiling; however, we] are solely responsible for costs above the ceiling.

Under cost-reimbursement contracts that are subject to a contract-ceiling amount, we are reimbursed for allowable costs and paid a fee, which may be fixed or [removed: performance based,] [added: performance-based;] however, if our costs exceed the contract ceiling or are not allowable under the provisions of the contract or applicable regulations, we may not be able to obtain reimbursement for all such costs.

Under each type of contract, if we are unable to control costs or if our initial cost estimates [added: are incorrect, our]

[removed: are incorrect, our] cash flows, results of operations and financial condition could be adversely affected.

If we are unable to continue to compete successfully against our current or future [removed: competitors or] [added: competitors,] do not win government programs with significant long-term [removed: revenues,] [added: revenues or do not prevail in bid protests,] we may experience declines in future [removed: revenues,] [added: revenues and profitability,] which could have a material adverse effect on our financial position, results of operations [removed: and] or cash flows.

These delays [added: or cost overruns] could be caused by unanticipated technological hurdles, production changes to meet customer demands, unanticipated difficulties in obtaining required regulatory certifications of new aircraft or other products, [removed: coordination with joint venture partners] or failure on the part of our suppliers to deliver components as agreed.

We also could be adversely affected if our research and development efforts are less successful than expected or if [removed: we do not adequately protect the intellectual property developed through] these [removed: efforts.][added: efforts require significantly more funding to achieve our goals than anticipated.]

[removed: Likewise,] [added: In addition,] new products and technologies could generate unanticipated safety or other concerns resulting in expanded product liability risks, potential product recalls and other regulatory issues that could have an adverse impact on us.

As a U.S. defense contractor, we face persistent security threats, including threats to our IT infrastructure and unlawful attempts to gain access to our information via [removed: phishing / malware] [added: phishing/malware] campaigns and other cyberattack methods, as well as threats to the physical security of our facilities and employees, as do our customers, suppliers, subcontractors and joint venture partners.

While we have experienced cybersecurity attacks, [added: such attacks have not resulted in a material information security breach and] we have not suffered any material losses relating to such [removed: attacks, and we believe our threat detection and mitigation processes and procedures are robust.][added: attacks.]

Our suppliers may be [removed: less likely than us to be able] [added: unable] to quickly recover from natural disasters and other events beyond their control and may be subject to additional risks such as [added: material or labor shortages, inflationary conditions or other] financial problems that limit their ability to conduct their operations.

[removed: For example, certain of our businesses have been, and] may continue to be, adversely impacted by suppliers which [removed: were] [added: have been] unable to perform as anticipated due to impacts of the [removed: pandemic.][added: pandemic and/or the war between Russia and Ukraine.]

During [removed: 2021,] [added: 2022,] we derived approximately [removed: 31%] [added: 32%] of our revenues from international business, including U.S. exports.

[added: Risks related to international operations include import, export, economic sanctions and other trade restrictions; changing U.S. and foreign procurement policies and practices; changes in international trade policies, including higher tariffs on imported goods and materials and renegotiation of free trade agreements; potential retaliatory tariffs imposed by foreign countries against U.S. goods; impacts on our non-U.S. suppliers and customers due to acts of war occurring internationally; restrictions on] technology transfer; difficulties in protecting intellectual property; increasing complexity of employment and environmental, health and safety regulations; foreign investment laws; exchange controls; repatriation of earnings or cash settlement challenges; compliance with increasingly rigorous data privacy and protection laws; competition from foreign and multinational firms with home country advantages; economic and government [removed: instability,] [added: instability;] acts of [added: industrial espionage, acts of war and] terrorism and related safety concerns.

Natural disasters, including hurricanes, fires, tornados, floods and other forms of severe weather, the intensity and frequency of which are being exacerbated by climate change, [added: along with] other impacts of climate change, such as rising sea waters, as well as other events outside of our control including public health [removed: crises or] [added: crises,] pandemics, power outages and industrial accidents, have in the past and could in the future disrupt our operations and adversely affect our business.

[removed: Any of these events could result in physical damage to and/or complete or partial closure of one or more of our facilities, temporary or long-term disruption of our] operations or the operations of our suppliers by causing business interruptions or by impacting the availability and cost of materials needed for manufacturing or otherwise impacting our ability to deliver products and services to our customers.

Portfolio quality can be adversely affected by several factors, including finance receivable underwriting procedures, collateral value, geographic or industry concentrations, and the effect of general economic [removed: conditions such as the recent deterioration of the economy due to the impact from the COVID-19 pandemic.][added: conditions.]

Risks Related to [removed: Regulatory and] [added: Regulatory,] Legal [added: and Other] Matters

Compliance with laws and regulations of increasing scope and complexity is even more challenging in our [removed: current] business environment in which reducing our operating costs is often necessary to remain competitive.

[removed: Any repurchases or recalls of our products or an imposition of] fines or penalties could be costly to us and could damage the reputation or the value of our brands.

Moreover, our investors, customers, employees and other stakeholders increasingly expect us to reduce [removed: the] greenhouse gas emissions generated by our operations [removed: and our products] [added: by implementing more efficient manufacturing technologies] and [removed: publicly report] [added: increasing the amount of renewable energy used within] our [removed: plans and progress on these efforts.][added: facilities.]

[removed: Laws] [added: We expect that compliance with such laws] and regulations [removed: addressing climate change, and our efforts to meet the expectations of our stakeholders, could lead to the necessity of] [added: will require] additional [added: internal resources and may necessitate larger] investment in product [removed: development, changes to our] [added: development and] manufacturing [removed: processes,] [added: equipment and/or facilities, as well as] sourcing from new [removed: suppliers, changes to our facilities] [added: suppliers] and/or [removed: equipment and greater internal resources,] [added: higher costs from existing suppliers,] all of which [removed: could] [added: would] increase our [added: direct and indirect] costs and negatively impact our business, results of operations, financial condition and competitive position.

We are subject to legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; [added: disputes with suppliers,] production [removed: partners;] [added: partners or other third parties;] product liability; patent and trademark infringement; employment disputes; and environmental, safety and health matters.

[removed: The] [added: Our] inability to enforce these intellectual property rights could have an adverse effect on our results of operations.

Because many of our businesses experience cyclical [added: market] demand, they face challenges in maintaining their workforce at levels [removed: appropriate to] [added: aligned with] market demand which in the past has necessitated workforce reductions at some of our businesses as demand decreased.

Approximately [removed: 7,000,] [added: 7,300,] or 27%, of our U.S. employees are unionized, and many of our non-U.S. employees are represented by organized councils.

In particular, the success of Textron eAviation depends in large part, on our ability to develop and certify new electric and hybrid electric aircraft products in order to achieve our long-term strategy of offering a family of sustainable aircraft for urban air mobility, general aviation, cargo and special mission roles.

The global economic impacts of Russia’s war with Ukraine could adversely affect our business, financial condition or operating results.

The war between Russia and Ukraine and the resulting economic sanctions imposed by the international community have impacted the global economy and given rise to potential global security issues that may adversely affect international business and economic conditions.

Certain of our direct or indirect suppliers have been negatively impacted by these events, resulting in increased costs to us for certain materials and components as well as shortages and delays of critical components for certain of our products.

These cost increases, along with increased energy and shipping costs, have and may continue to negatively impact our profitability, and component shortages and delays have and may continue to result in production delays for certain of our products.

In addition, these events have caused additional disruption in the supply chains of our automotive OEM customers, already experiencing disruption due to the impacts of the COVID-19 pandemic, which has caused, and may continue to cause, reduced demand for our automotive products.

The continuation of the war could lead to other supply chain disruptions, increased inflationary pressures, and volatility in global markets and industries that could negatively impact our operations.

Furthermore, the potential for retaliatory acts of cyberwarfare from Russia against U.S. companies in response to increasing sanctions on Russia could result in increased cyber-attacks against us.

We believe our threat detection and mitigation processes and procedures are robust.

For example, certain of our businesses have been, and

The impact of any one or more of these or other factors could adversely affect our business, financial condition or operating results.

In addition, disruptions in our automotive OEM supply chains have caused and may continue to cause reduced demand for our automotive products.

Any of these events could result in physical damage to and/or complete or partial closure of one or more of our facilities and temporary or long-term disruption of our

Any repurchases or recalls of our products or an imposition of

Such laws and regulations are likely to include more prescriptive reporting on environmental metrics, climate change related risks and associated financial impacts, as well as increased oversight of and reporting on our supply chain and other compliance requirements.

Stricter limits on greenhouse gas emissions generated by our facilities or by our products that produce carbon emissions could also be imposed.

Our failure to adequately comply with such laws and regulations could jeopardize our ability to receive contract awards from the U.S. government and other customers.

While we are engaged in efforts to transition to a lower carbon economy by reducing the emissions generated by our operations and increasing our use of renewable energy, these efforts take time and resources and may increase our energy acquisition and other costs and require capital investment.

In addition, our stakeholders expect us to reduce greenhouse gas emissions from the use of our products, including by developing and incorporating sustainable technologies into our products.

Our businesses are expected to require significant research and development investment to succeed in developing the new technologies and products that will enable us to significantly reduce such emissions from the use of our products and successfully compete in a lower carbon economy.

We may not realize the anticipated benefits of our investments and actions for a variety of reasons, including technological challenges, evolving government and customer requirements and our ability to anticipate them and develop the desired technologies and products on a timely basis.

Our competitors may develop these technologies and products before we do and they may be deemed by our customers to be superior to technologies and products we may develop, and they may otherwise gain industry acceptance in advance of, or instead of, our products.

In addition, as we and our competitors develop increasingly sustainable technologies, demand for our existing offerings may decrease or become nonexistent.

Such challenges in aligning the size of our businesses’ workforces with current or future business needs have resulted and may, in the future result in increased costs, production delays or other adverse impacts on our business and results of operations.

Risks Related to the COVID-19 Pandemic

In addition, new regulations by U.S. or foreign governments and government agencies addressed to the aviation or travel industry could impose additional regulatory, aircraft security, travel restrictions or other requirements or restrictions related to the pandemic that could adversely impact demand for aircraft and rotorcraft or significantly reduce hours flown, resulting in a reduction in revenues and/or increased costs.

See also risks related to our Finance Segment under Financial Risks section below.

Risks related to international operations include import, export, economic sanctions and other trade restrictions; changing U.S. and foreign procurement policies and practices; changes in international trade policies, including higher tariffs on imported goods and materials and renegotiation of free trade agreements; potential retaliatory tariffs imposed by foreign countries against U.S. goods; impacts related to the voluntary exit of the United Kingdom from the European Union (Brexit); restrictions on

As a result of the pandemic, our Finance segment modified a significant number of the loans in its portfolio in order to provide temporary payment relief to its customers and has provided extended payment relief to certain customers.

While a majority of these modified loans have returned to paying status, our ultimate recovery on these assets could be delayed or impacted.

Such laws and regulations may include more restrictive or expansive standards, such as stricter limits on greenhouse gas emissions by our facilities or our products that produce carbon emissions, more prescriptive reporting of environmental, social and governance metrics and/or other compliance requirements.

Because the impact of any future climate change-related legislative, regulatory, or product standard requirements on our global businesses and products is dependent on the timing and design of mandates or standards, we are unable to predict their potential impact at this time.

[removed: In 2021, Textron’s] [added: Textron Aviation’s] revenues increased [removed: 6% and segment profit increased 51%,] [added: $507 million, 11%, in 2022,] compared with [removed: 2020,] [added: 2021,] reflecting higher volume and [removed: pricing, along with performance improvements.][added: mix of $302 million and higher pricing of $205 million.]

[removed: Key financial] [added: Financial] highlights for [removed: 2021] [added: 2022 also] include:

[removed: - Improved our ratio of debt, net] [added: | Net debt (net] of cash and [removed: equivalents,] [added: equivalents)] to capital [removed: to 16%, from 21% in 2020.][added: | | | 15% | | | 16% | | |]

- Invested [removed: $619] [added: $601] million in research and development projects and [removed: $375] [added: $354] million in capital expenditures.

- Returned [removed: $921] [added: $867] million to our shareholders through [removed: repurchasing 13.5] [added: the repurchase of 13.1] million shares of our common stock.

A discussion of our financial condition and operating results for [removed: 2021] [added: 2022] compared with [removed: 2020] [added: 2021] is provided below, while a discussion of [removed: 2020] [added: 2021] compared with [removed: 2019] [added: 2020] can be found in Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended January [removed: 2, 2021.][added: 1, 2022.]

| *(Dollars in millions)* | | | [removed: 2021] [added: 2022] | | | [removed: 2020] [added: 2021] | | | [removed: 2019] [added: 2020] | | | [removed: 2021] [added: 2022] | | | [removed: 2020] [added: 2021] | | |

| Revenues | | | $ | [removed: 12,382] [added: 12,869] | | $ | [removed: 11,651] [added: 12,382] | | $ | [removed: 13,630] [added: 11,651] | | [removed: 6%] [added: 4%] | | | [removed: (15)%] [added: 6%] | | |

| Cost of sales | | | [removed: 10,297] [added: 10,800] | | | [removed: 10,094] [added: 10,297] | | | [removed: 11,406] [added: 10,094] | | | [removed: 2%] [added: 5%] | | | [removed: (12)%] [added: 2%] | | |

| Gross margin as a percentage of Manufacturing revenues | | | [removed: 16.5%] [added: 15.7%] | | | [removed: 13.0%] [added: 16.5%] | | | [removed: 15.9%] [added: 13.0%] | | | | | | | | |

| Selling and administrative expense | | | [removed: 1,221] [added: 1,186] | | | [removed: 1,045] [added: 1,221] | | | [removed: 1,152] [added: 1,045] | | | [removed: 17%] [added: (3)%] | | | [removed: (9)%] [added: 17%] | | |

| Interest [removed: expense] [added: expense, net] | | | [removed: 142] [added: 107] | | | [removed: 166] [added: 142] | | | [removed: 171] [added: 166] | | | [removed: (14)%] [added: (25)%] | | | [removed: (3)%] [added: (14)%] | | |

In [removed: 2021,] [added: 2022,] cost of sales increased [removed: $203] [added: $503] million, [removed: 2%,] [added: 5%,] compared with [removed: 2020,] [added: 2021,] largely due to [removed: higher net volume and mix described above and] an unfavorable impact from inflation of [removed: $117] [added: $385] million, principally reflecting higher material costs in the Industrial [removed: segment.][added: and Textron Aviation segments.]

Gross margin as a percentage of Manufacturing revenues [removed: increased 350] [added: decreased 80] basis points in [removed: 2021,] [added: 2022,] compared with [removed: 2020, primarily due to] [added: 2021, as] higher margin at the Textron Aviation [removed: segment] [added: segment,] reflecting [removed: the impact of] higher [removed: product sales.][added: volume and mix and pricing, was more than offset by lower margin at the other Manufacturing segments, primarily at the Bell segment due to lower volume and mix.]

Interest [removed: Expense][added: Expense, Net]

Interest [removed: expense on the Consolidated Statements of Operations] [added: expense, net] includes interest [added: expense] for both the Finance and Manufacturing borrowing [removed: groups] [added: groups,] with interest [removed: related to] [added: on] intercompany borrowings [removed: eliminated.][added: eliminated, and interest income earned on cash and equivalents.]

[removed: Consolidated] [added: In 2022,] interest [removed: expense] [added: expense, net] decreased [removed: $24] [added: $35] million, [removed: 14%, in 2021,] [added: 25%,] compared with [removed: 2020,] [added: 2021,] primarily due to [added: an increase in interest income of $22 million and] lower average debt outstanding.

Special charges of $25 million [removed: and $147 million] in [removed: 2021 and 2020, respectively,] [added: 2021,] primarily include restructuring activities [removed: and 2020 intangible asset impairment charges] as described in Note 16 to the Consolidated Financial Statements in Item 8.

| | | | [removed: 2021] [added: 2022] | | | [removed: 2020] [added: 2021] | | | [removed: 2019] [added: 2020] | | |

| Effective tax rate | | | [removed: 14.4%] [added: 15.2%] | | | [removed: (9.6%)] [added: 14.4%] | | | [removed: 13.5%] [added: (9.6%)] | | |

Segment profit for the manufacturing segments [added: includes non-service components of net periodic benefit cost/(income) and] excludes interest expense, [added: net;] certain corporate [removed: expenses,] [added: expenses;] gains/losses on major business [removed: dispositions,] [added: dispositions;] special [removed: charges] [added: charges;] and an inventory charge related to the 2020 COVID-19 restructuring plan, as discussed in Note 16 to the Consolidated Financial Statements in Item 8.

Approximately [removed: 26%] [added: 22%] of our [removed: 2021] [added: 2022] revenues were derived from contracts with the U.S. Government, including those under the U.S. Government-sponsored foreign military sales program.

Changes in segment profit for these contracts are typically expressed in terms of volume and mix and performance; these include cumulative catch-up adjustments associated with a) revisions to the transaction price that may reflect contract modifications or changes in assumptions related to award fees and other [removed: variable consideration or b) changes in the total estimated costs at completion due to improved or deteriorated operating performance.]

| *(Dollars in millions)* | | | [removed: 2021] [added: 2022] | | | [removed: 2020] [added: 2021] | | | [removed: 2019] [added: 2020] | | | [removed: 2021] [added: 2022] | | | [removed: 2020] [added: 2021] | | |

| Aircraft | | | $ | [removed: 3,116] [added: 3,387] | | $ | [removed: 2,714] [added: 3,116] | | $ | [removed: 3,592] [added: 2,714] | | [removed: 15%] [added: 9%] | | | [removed: (24)%] [added: 15%] | | |

| Aftermarket parts and services | | | [removed: 1,450] [added: 1,686] | | | [removed: 1,260] [added: 1,450] | | | [removed: 1,595] [added: 1,260] | | | [removed: 15%] [added: 16%] | | | [removed: (21)%] [added: 15%] | | |

| Total revenues | | | [removed: 4,566] [added: 5,073] | | | [removed: 3,974] [added: 4,566] | | | [removed: 5,187] [added: 3,974] | | | [removed: 15%] [added: 11%] | | | [removed: (23)%] [added: 15%] | | |

| Operating expenses | | | [removed: 4,188] [added: 4,489] | | | [removed: 3,958] [added: 4,188] | | | [removed: 4,738] [added: 3,958] | | | [removed: 6%] [added: 7%] | | | [removed: (16)%] [added: 6%] | | |

| Segment profit | | | [removed: 378] [added: $] | [added: 584] | | [removed: 16] [added: $] | [added: 378] | | [removed: 449] [added: $] | [added: 16] | | [removed: 2,263%] [added: 54%] | | | [removed: (96)%] [added: 2,263%] | | |

| Profit margin | | | [removed: 8.3%] [added: 11.5%] | | | [removed: 0.4%] [added: 8.3%] | | | [removed: 8.7%] [added: 0.4%] | | | | | | | | |

| Backlog | | | $ | [removed: 4,120] [added: 6,387] | | $ | [removed: 1,603] [added: 4,120] | | $ | [removed: 1,714] [added: 1,603] | | [removed: 157%] [added: 55%] | | | [removed: (6)%] [added: 157%] | | |

Factors contributing to the [removed: 2021] [added: 2022] year-over-year revenue change are provided below:

| *(In millions)* | | | [removed: 2021] [added: 2022] versus [removed: 2020] [added: 2021] | | |

| Volume and mix | | | $ | [removed: 519] [added: (25)] | |

| Pricing | | | [removed: 73] [added: 59] | | |

| Total change | | | $ | [removed: 592] [added: (91)] | |

We delivered [removed: 167] [added: 178] Citation jets and [removed: 125] [added: 146] commercial turboprops in [removed: 2021,] [added: 2022,] compared with [removed: 132] [added: 167] Citation jets and [removed: 113] [added: 125] commercial turboprops in [removed: 2020.][added: 2021.]

Textron Aviation’s operating expenses increased [removed: $230] [added: $301] million, [removed: 6%,] [added: 7%,] in [removed: 2021,] [added: 2022,] compared with [removed: 2020,] [added: 2021,] largely due to higher volume and mix described [removed: above.][added: above and inflation of $114 million.]

Factors contributing to [removed: 2021] [added: 2022] year-over-year segment profit change are provided below:

In 2022, Textron’s revenues increased 4% and segment profit increased 8%, compared with 2021, reflecting the impact of higher pricing and higher volume and mix at both the Textron Aviation and Industrial segments, partially offset by lower volume and mix at the Bell and Textron Systems segments.

Our backlog increased 31%, to $13.3 billion by the end of 2022, reflecting increased demand in many of our businesses, including a 55% increase in backlog at the Textron Aviation segment.

During 2022, we continued to manage through the impacts of ongoing global supply chain shortages/delays and labor shortages, in order to meet customer demand.

In December 2022, Bell was awarded the development contract for the U.S. Army’s Future Long-Range Assault Aircraft (FLRAA) program as discussed in Item 1.

Business.

| Non-service components of pension and postretirement income, net | | | 240 | | | 159 | | | 83 | | | 51% | | | 92% | | |

Revenues increased $487 million, 4%, in 2022, compared with 2021.

The revenue increase primarily included the following factors:

- Higher Textron Aviation revenues of $507 million, reflecting higher volume and mix of $302 million and higher pricing of $205 million.

- Higher Industrial revenues of $335 million due to a favorable impact from pricing of $227 million, principally in the Specialized Vehicles product line, and higher volume and mix of $203 million in both product lines, partially offset by an unfavorable impact from exchange rate fluctuations of $95 million.

- Lower Textron Systems revenues of $101 million, largely due to lower volume of $121 million, which included an $88 million decrease from our Afghanistan fee-for-service and aircraft support contracts.

Selling and administrative expense decreased $35 million, 3%, in 2022, compared with 2021, primarily reflecting lower share-based compensation expense.

For 2022, 2021 and 2020, gross interest expense totaled $129 million, $142 million and $166 million, respectively.

Non-service Components of Pension and Postretirement Income, Net

Non-service components of pension and postretirement income, net increased by $81 million, 51%, in 2022, compared with 2021.

The increase is based on our annual valuation at the end of 2021 and is primarily driven by an increase in the discount rate utilized for our domestic qualified pension plans and the impact of actual pension asset returns that exceeded our expected return on plan assets.

There were no special charges recorded in 2022.

In 2022, the effective tax rate of 15.2% was lower than the U.S. federal statutory tax rate of 21%, largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income.

We conduct our business through six operating segments: Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation, which represent our manufacturing businesses, and Finance, which represents our captive finance business.

variable consideration or b) changes in the total estimated costs at completion due to improved or deteriorated operating performance.

| Pricing | | | 205 | | |

The increase in volume and mix was largely due to higher Citation jet and aftermarket volume, partially offset by lower pre-owned volume.

The higher aftermarket volume reflected increased aircraft utilization.

Under the current contracts, production is expected to end by 2023 for the H-1 helicopter and 2025 for the V-22 tiltrotor.

In December 2022, Bell was awarded the development contract for the next stage of the FLRAA program, as discussed in Item 1 Business.

Bell’s revenues decreased $273 million, 8%, in 2022, compared with 2021, largely due to lower military revenues of $333 million, primarily in the H-1 program due to lower aircraft and spares production volume reflecting lower demand.

Commercial revenues increased $60 million, largely due to higher pricing.

Bell’s segment profit decreased $91 million, 22%, in 2022, compared with 2021, largely reflecting lower volume and mix described above, partially offset by a favorable impact from performance of $45 million.

Performance included lower research and development costs, pension costs and selling and administrative expense of $113 million, partially offset by an unfavorable change in net program adjustments.

Bell’s backlog increased $910 million, 24%, in 2022, largely due to new orders in excess of deliveries and revenues recognized.

Bell was awarded a $1.4 billion 5-year contract with the U.S. Government for spares and logistic support for the V-22 tiltrotor aircraft in the first quarter of 2022.

| Pricing | | | $ | 227 | |

| Volume and mix | | | 203 | | |

| Performance | | | (10) | | |

| Pricing, net of inflation | | | 1 | | |

Segment profit for the Industrial segment increased $25 million, 18%, in 2022, compared with 2021, primarily due to higher volume and mix of $44 million as described above, partially offset by an unfavorable impact from foreign exchange rate fluctuations of $10 million and performance of $10 million.

Textron eAviation

Textron eAviation was formed upon the acquisition of Pipistrel, a manufacturer of electrically powered aircraft, on April 15, 2022, as discussed in Note 2 to the Consolidated Financial Statements in Item 8.

This segment includes the operating results of Pipistrel, along with research and development costs for initiatives related to the development of sustainable aviation solutions.

In 2022, Textron eAviation segment revenues totaled $16 million and segment loss totaled $26 million.

Higher earnings and working capital improvements during the year resulted in a year-over-year increase of $636 million in net cash flows from operating activities from our manufacturing businesses.

While most of our commercial businesses have not yet returned to 2019 pre-pandemic levels, we experienced a rebound in customer demand in these businesses during 2021.

Customer demand for our Textron Aviation aircraft products, in particular, increased throughout the year, enabling the business to return to a more normalized and efficient manufacturing cadence and resulted in a $2.5 billion, 157%, increase in backlog.

During the year, we have been impacted by ongoing pandemic-related global supply chain shortages and delays, as well as inflation, primarily in the Industrial segment, and we continue to manage through these challenges.

Financial Statements and Supplementary Data.

Revenues increased $731 million, 6%, in 2021, compared with 2020, primarily at the Textron Aviation and Industrial segments.

Textron Aviation revenues were higher by $592 million, largely due to higher Citation jet volume of $330 million, and higher aftermarket volume of $204 million.

Revenues at Industrial were higher by $130 million, largely due to a favorable impact of $142 million from pricing, principally in the Specialized Vehicles product line.

These increases were partially offset by the impact of costs incurred in 2020, including idle facility costs of $142 million, primarily at the Textron Aviation segment, and a $55 million inventory charge related to the TRU Canada business discussed in Note 16 to the Consolidated Financial Statements in Item 8.

Selling and administrative expense increased $176 million, 17%, in 2021, compared with 2020, primarily at the Textron Aviation and Industrial segments as more normalized operating activities resumed during 2021 compared to 2020, which included temporary cost reduction activities related to the pandemic, and higher share-based compensation expense due to stock appreciation.

Interest expense for the Finance segment is included within segment profit and includes intercompany interest.

In 2020, the effective tax rate of (9.6)% was lower than the U.S. federal statutory tax rate of 21%, primarily due to an audit settlement with respect to certain state income tax returns that resulted in a $52 million benefit and the favorable impact of research and development credits.

We operate in, and report financial information for, the following five business segments: Textron Aviation, Bell, Textron Systems, Industrial and Finance.

Textron Aviation’s revenues increased $592 million, 15%, in 2021, compared with 2020, largely due to higher Citation jet volume of $330 million and higher aftermarket volume of $204 million, reflecting higher aircraft utilization.

Operating expenses in 2020 were also negatively impacted by idle facility costs of $115 million and inventory valuation charges, largely resulting from the pandemic, partially offset by cost reduction activities, including employee furloughs instituted during the first half of 2020.

Performance included the impact of idle facility costs of $115 million in 2020 and lower inventory charges of $59 million, partially offset by higher selling and administrative costs as more normalized operating activities resumed during 2021 compared to 2020, which included temporary cost reduction activities related to the pandemic.

Over the next several years, the H-1 helicopter program with the U.S. Government will be transitioning from the production stage to the support stage.

Bell’s segment profit decreased $54 million, 12%, in 2021, compared with 2020, largely reflecting an unfavorable impact of $36 million from performance, which included higher research and development costs discussed above and higher selling and administrative costs.

The increase in revenues attributed to volume and mix above had an unfavorable impact on segment profit due to the mix of military and commercial products sold.

Bell’s backlog decreased $1.5 billion, 28%, in 2021, primarily as a result of revenues recognized on our U.S. Government contracts in excess of new contracts received.

| Volume | | | $ | (16) | |

The other decrease of $24 million in the table above included the impact of a $28 million reduction in revenues as a result of the cessation of manufacturing at the TRU Simulation + Training Canada Inc. (TRU Canada) facility which occurred in the second quarter of 2020 related to the impact of the pandemic on that business.

In January 2021, we sold TRU Canada as discussed in Note 2 to the Consolidated Financial Statements in Item 8.

| Performance and other | | | $ | 52 | |

Textron Systems’ segment profit increased $37 million, 24%, in 2021, compared with 2020, due to a favorable impact from performance and other, which included a $19 million impact from TRU Canada related to unfavorable performance and other in 2020.

Textron Systems Backlog

Backlog at Textron Systems’ decreased $412 million in 2021, primarily due to revenues recognized in excess of new contracts received.

| Pricing | | | $ | 142 | |

These increases were partially offset by lower volume and mix of $62 million, largely in the Fuel Systems and Functional Components product line due to the impact of global supply chain shortages on our original equipment manufacturer customers.

Since the first quarter of 2020, the Finance segment has worked with certain customers impacted by the pandemic to provide payment relief through loan modifications.

The majority of loans modified have returned to paying principal and interest.

We believe our allowance for credit losses adequately covers our exposure on these loans as our estimated collateral values largely exceed the outstanding loan amounts.

Loan modifications and key portfolio quality indicators are discussed in Note 4 to the Consolidated Financial Statements in Item 8.

| Net debt (net of cash and equivalents) to capital | | | 16% | | | 21% | | |

In August 2021, we repaid $50 million of the Finance Group’s $150 million variable-rate loan due September 2021.

On September 20, 2021, the loan was amended to extend the maturity date to September 2022 for the remaining $100 million principal amount.

The annual interest rate was unchanged at LIBOR plus 1.55%, which is an annual interest rate of 1.65% at January 1, 2022.

The working capital improvements reflected the impact of lower payments to settle accounts payable in 2021, compared with 2020, which had a $613 million cash outflow, and a $253 million year-over-year increase in contract liabilities, largely reflecting higher customer deposits at the Textron Aviation segment, partially offset by year-over-year changes in inventories and accounts receivable.

In 2020, cash flows provided by financing activities included $1.1 billion of net proceeds from the issuance of long-term debt and $377 million of proceeds from borrowings against corporate-owned life insurance policies, partially offset by $548 million of payments on long-term debt, $377 million of payments on borrowings against corporate-owned life insurance policies, and $183 million of cash paid to repurchase an aggregate of 4.1 million shares of our common stock.

Consolidated cash flows from operating activities were $1.6 billion in 2021, compared with $769 million in 2020.

The notional amount of outstanding foreign currency exchange contracts was [removed: $272] [added: $354] million and [removed: $318] [added: $272] million at [removed: January 1,] [added: December 31,] 2022 and January [removed: 2, 2021,] [added: 1, 2022,] respectively.

We had [removed: an] interest rate swap [removed: agreement] [added: agreements] with a [added: total] notional amount of [removed: $289] [added: $297] million at [removed: January 1,] [added: December 31,] 2022 and [removed: $294] [added: $289] million at January [removed: 2, 2021,] [added: 1, 2022,] which effectively converted certain floating-rate debt to a fixed-rate equivalent.

| | | | [removed: January 1,] [added: December 31,] 2022 | | | | | | | | | January [removed: 2, 2021] [added: 1, 2022] | | | | | | | | |

| Debt | | | $ | (6) | | $ | (6) | | $ | (1) | | $ | [removed: (10)] [added: (6)] | | $ | [removed: (10)] [added: (6)] | | $ | (1) | |

| Foreign currency exchange contracts | | | [removed: 1] [added: (11)] | | | [removed: 1] [added: (11)] | | | [removed: 21] [added: 28] | | | [removed: 3] [added: 1] | | | [removed: 3] [added: 1] | | | [removed: 22] [added: 21] | | |

| Debt | | | $ | [removed: (3,181)] [added: (3,175)] | | $ | [removed: (3,346)] [added: (2,872)] | | $ | [removed: (24)] [added: (51)] | | $ | [removed: (3,690)] [added: (3,181)] | | $ | [removed: (3,986)] [added: (3,346)] | | $ | [removed: (16)] [added: (24)] | |

| Finance receivables | | | $ | [removed: 413] [added: 390] | | $ | [removed: 444] [added: 369] | | $ | [removed: 7] [added: 10] | | $ | [removed: 549] [added: 413] | | $ | [removed: 599] [added: 444] | | $ | [removed: 9] [added: 7] | |

| Debt | | | [removed: (582)] [added: (375)] | | | [removed: (546)] [added: (294)] | | | [removed: —] [added: (1)] | | | [removed: (662)] [added: (582)] | | | [removed: (587)] [added: (546)] | | | — | | |

| | | | $ | (17) | | $ | (17) | | $ | 27 | | $ | (5) | | $ | (5) | | $ | 20 | |

| | | | $ | (5) | | $ | (5) | | $ | 20 | | $ | (7) | | $ | (7) | | $ | 21 | |

We conduct our business through [removed: five] [added: six] operating segments: Textron Aviation, Bell, Textron [removed: Systems] [added: Systems, Industrial] and [removed: Industrial,] [added: Textron eAviation,] which represent our manufacturing businesses, and Finance, which represents our captive finance business.

Total revenues by segment and customer type for [removed: 2021] [added: 2022] are presented below.

[removed: ][added: ]

Aftermarket parts and services includes commercial parts [removed: sales,] [added: sales] and maintenance, inspection and repair services.

Textron Aviation’s turboprop aircraft include the Beechcraft King Air 260, King Air 360ER and King Air 360, and the Cessna [removed: Caravan and] [added: Caravan,] Grand Caravan [removed: EX.][added: EX and SkyCourier, which was certified in March 2022.]

In addition, Textron Aviation’s military trainer and defense aircraft include the T-6 trainer, which has been used to train pilots from more than 20 countries, and the AT-6 light attack military [added: aircraft, which achieved military type certification from the U.S. Air Force in July 2022, enabling international sales of the] aircraft.

Textron Aviation also offers piston engine aircraft including the Beechcraft Baron [added: G58] and [removed: Bonanza,] [added: Bonanza G36,] and the Cessna Skyhawk, Skylane, [added: Turbo Skylane,] and [removed: the] Turbo Stationair HD.

In support of its family of aircraft, Textron Aviation operates a global network of [removed: 21] [added: more than 20] service centers, two of which are co-located with Bell, along with more than 300 authorized independent service centers located throughout the world.

Textron Aviation also provides its customers with around-the-clock parts support and offers a mobile support program with [removed: approximately] [added: over] 70 mobile service units.

Bell’s primary U.S. Government programs are for the production and support of [removed: the] V-22 tiltrotor [removed: aircraft and] [added: aircraft, primarily for] the [added: U.S. Department of Defense, and] H-1 [removed: helicopters.][added: helicopters for the U.S. Marine Corps.]

Bell is one of the leading suppliers of helicopters to the U.S. Government and, in association with The Boeing [removed: Company (Boeing),] [added: Company,] the only supplier of military tiltrotor aircraft.

[removed: Through its strategic alliance with Boeing, Bell produces and supports] [added: Under] the [added: U.S. Government-sponsored foreign military sales program, Bell offers its] V-22 tiltrotor aircraft [removed: primarily for the U.S. Department of Defense,] and [removed: also offers this aircraft] [added: H-1 helicopter products for sale] to other [removed: countries under the U.S. Government-sponsored foreign military sales program.][added: countries.]

Through its commercial business, Bell is a leading supplier of commercially certified helicopters and support to corporate, private, law enforcement, [removed: utility] [added: utility, public safety] and emergency medical helicopter operators, and [removed: the] U.S. and foreign governments.

The commercial helicopters currently offered by Bell include the 429, 407GXi, 412EPX, 412EPI, [removed: 412EP,] 505 Jet Ranger X and Huey II.

For both its military programs and its commercial products, Bell provides post-sale support and service for an installed base of approximately 13,000 helicopters through a network of [removed: six] [added: eight] Company-operated service centers, four global parts distribution centers and [removed: nearly 100] [added: approximately 85] independent service centers located in approximately 35 countries.

[removed: In October 2019,] Bell [removed: announced] [added: is developing] a new rotorcraft, the Bell 360 Invictus, [removed: which it is developing as its entrant] for the U.S. Army's Future Attack Reconnaissance Aircraft (FARA) Competitive Prototype Program, [added: which is also] part of the U.S. government's [removed: Future Vertical Lift (FVL)] [added: FVL] initiative.

[removed: During 2021,] Bell [removed: continued] [added: continues] to progress on its development of the 360 Invictus [removed: Prototype.][added: Prototype under this phase.]

Bell is [removed: continuing development of] [added: developing] the V-280 Valor, a next generation vertical lift aircraft [removed: that is in competition] for the Future Long Range Assault Aircraft (FLRAA) program, which is part of the U.S. Army’s [removed: FVL] [added: Future Vertical Lift (FVL)] initiative.

The V-280 achieved its first flight in December 2017, conducted over 200 hours of flight testing, and has demonstrated all key performance objectives established by the U.S. Army, including flying [removed: at] [added: in excess of] 300 knots airspeed.

Notable products developed and produced by the Textron Systems segment include the Shadow, the U.S. Army's premier tactical unmanned aircraft system; the Aerosonde Small Unmanned Aircraft [removed: Systems,] [added: System,] a multi-mission capable unmanned aircraft system for commercial and military operations; the U.S. Navy's next generation Landing Craft Air Cushion, developed as part of the Ship-to-Shore Connector program; and piston aircraft engines under the Lycoming brand.

Notable service offerings of the segment include fee-for-service programs using unmanned aircraft systems and live military air-to-air and air-to-ship training and support services for U.S. Navy, Marine and Air Force personnel provided by Airborne Tactical Advantage [removed: Company (ATAC).][added: Company.]

In addition, Kautex produces plastic tanks for selective catalytic reduction systems used to reduce emissions from diesel [removed: engines] [added: engines,] and other fuel system components.

Kautex’s business model is focused on developing and maintaining long-term customer relationships with leading global [removed: OEMs.][added: original equipment manufacturers (OEMs).]

Kautex operates over 30 plants in [removed: 14] [added: 13] countries in close proximity to [removed: our] [added: its] customers, along with [removed: 10] [added: 9] engineering/research and development locations around the world.

[removed: Their] [added: The] diversified customer base for the Specialized Vehicles product line includes golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users such as factories, warehouses, airlines, planned communities, hunting preserves, educational and corporate campuses, sporting [removed: venues, municipalities] [added: venues] and landscaping professionals.

Sales are made through a network of independent distributors and dealers worldwide and the Bass Pro Shops and [removed: Cabela’s] [added: Cabela's] retail outlets, which sell our products under the Tracker [removed: Off-Road] [added: Off Road] brand, as well as factory direct resources.

A substantial number of the originations in our finance receivable portfolio are cross-border transactions for aircraft sold outside of the U.S. In [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] our Finance group paid our Manufacturing group [removed: $100] [added: $92] million and [removed: $195] [added: $100] million, respectively, related to the sale of Textron-manufactured products to third parties that were financed by the Finance group.

Our backlog at the end of [removed: 2021] [added: 2022] and [removed: 2020] [added: 2021] is summarized below:

| *(In millions)* | | | [removed: January 1,] [added: December 31,] 2022 | | | January [removed: 2, 2021] [added: 1, 2022] | | |

| Bell | | | [removed: $] [added: 4,781] | [removed: 3,871] | | [removed: $] [added: 3,871] | [removed: 5,342] | |

| Textron Aviation | | | [removed: 4,120] [added: $] | [added: 6,387] | | [removed: 1,603] [added: $] | [added: 4,120] | |

| Textron Systems | | | [removed: 2,144] [added: 2,098] | | | [removed: 2,556] [added: 2,144] | | |

| Total backlog | | | $ | [removed: 10,135] [added: 13,266] | | $ | [removed: 9,501] [added: 10,135] | |

Contracts with the U.S. Government, including contracts under the U.S. Government-sponsored foreign military sales program, generated approximately [removed: 26%] [added: 22%] of our consolidated revenues in [removed: 2021,] [added: 2022,] primarily in our Bell and Textron Systems segments.

Risk Factors for additional information related to regulation of U.S. Government [removed: business herein.][added: business.]

[removed: Commercial] [added: Our commercial] aircraft [removed: products manufactured by our Textron Aviation and Bell segments] [added: manufacturing businesses] are [removed: required to comply with] [added: regulated by the] FAA [removed: regulations] in the U.S. and [removed: the regulations of other] [added: by] similar aviation regulatory governing authorities internationally, including, the European Aviation Safety Agency.

Financial Statements and Supplementary Data, and Business and Operational Risks and Risks Related to [removed: Regulatory and] [added: Regulatory,] Legal [added: and Other] Matters sections in Item 1A.

At [removed: January 1,] [added: December 31,] 2022, we employed approximately [removed: 33,000] [added: 34,000] employees worldwide, with approximately [removed: 75%] [added: 80%] located in the U.S. and the remainder located outside of the U.S. Approximately [removed: 7,000,] [added: 7,300,] or 27%, of our U.S. employees, most of whom work for our Bell and Textron Aviation segments, are represented by unions under collective bargaining agreements, and certain of our non-U.S. employees are represented by organized works councils.

The [added: health and] safety of our employees has been a priority throughout [removed: our response to] the [added: duration of the] COVID-19 pandemic.

Our enterprise-wide pandemic response teams, formed early in the pandemic, guided our operations in the processes and procedures to comply with applicable government-imposed health and safety-related operating restrictions, to enhance the safety of our facilities to protect the health of our employees and to monitor [removed: trends in infection rates at locations where we have facilities.][added: trends.]

Textron Aviation is developing the Denali, a high-performance single engine turboprop aircraft that will be powered by an engine expected to be up to 20% more efficient than similarly sized engines.

The Denali achieved its first flight in November 2021 and is currently in the flight testing process.

After an extended competitive process, in December 2022, Bell was awarded the development contract for the next stage of the FLRAA program.

A competitor has filed a protest with the Government Accountability Office (GAO) regarding the award of the FLRAA contract to Bell, and a stop-work order has been issued pending resolution of the protest.

We expect the GAO to issue its decision on the protest by April 7, 2023.

In addition, we also manufacture products for OEMs for resale to customers under the OEM’s branding.

Textron eAviation Segment

Textron eAviation was formed in the second quarter of 2022 following our acquisition of Pipistrel, a manufacturer of electrically powered aircraft, on April 15, 2022.

Pipistrel offers a family of light aircraft and gliders with both electric and combustion engines.

Pipistrel’s Velis Electro is the world’s first, and currently only, electric aircraft to receive full type certification from the European Union Aviation Safety Agency and, in 2022, it earned UK Civil Aviation Authority type certification.

The Textron eAviation segment includes Pipistrel along with other research and development initiatives related to sustainable aviation solutions.

During 2022, these teams continued to operate as needed, updating response actions as government guidance and orders evolved, and we have continued to communicate with our employees as appropriate.

- Risks related to a competitor's protest of the award of the FLRAA contract to Bell.

Textron Aviation is developing the Cessna SkyCourier, a twin-engine, high-wing, large-utility turboprop aircraft, which achieved its first flight in May 2020.

The aircraft is continuing to progress through the certification process having accomplished over 2,100 hours of flight test activity.

The Denali, a high-performance single engine turboprop aircraft currently under development, achieved its first flight in November 2021.

While the U.S. Marine Corps is the primary customer for H-1 helicopters, we also sell these helicopters under the U.S. Government-sponsored foreign military sales program.

In March 2020, the U.S. Army awarded Bell a Competitive Demonstration and Risk Reduction contract for the next stage of the FLRAA program; the scope and period of performance for this contract was extended in March 2021.

The U.S. Army is expected to award the contract for the FLRAA program in 2022.

These teams continue to operate as needed, updating enterprise guidance as the pandemic has continued and the medical science and government guidance and orders have evolved.

Our businesses continue to enforce COVID-19 health and safety protocols and have implemented protocols to address actual and suspected cases of COVID-19 and resulting contact tracing and quarantine requirements.

Throughout the pandemic, we have been communicating regularly with our employees and monitoring their views on issues related to COVID-19 and the workplace as well as general levels of engagement through regular pulse surveys.

In addition, management has regularly updated our Board of Directors on our COVID-19 status and response, including with respect to employee safety.

On December 24, 2019, IWA filed an Amended Complaint in the now entitled [removed: *In] [added: In] re Textron Inc. Securities [removed: Litigation*.][added: Litigation.]

We also are subject to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; [added: disputes with suppliers,] production [removed: partners;] [added: partners or other third parties;] product liability; patent and trademark infringement; employment disputes; and environmental, health and safety matters.

On June 23, 2022, as a result of a mediation process overseen by an independent mediator, the Parties entered into a settlement agreement to settle plaintiff’s claims for an amount not material to Textron.

On November 21, 2022, the Court entered an order giving final approval of the settlement and final judgment in the case.

Neither Textron nor any of the other defendants admitted any wrongdoing with respect to the allegations in the case.

We intend to continue to vigorously defend this lawsuit.

[Table of [removed: Content](#ia3b2c1588ae44834bf6ab6617886767e_7)[s](#ia3b2c1588ae44834bf6ab6617886767e_7)][added: Content](#i6b9bcdaa820142b5bea13ad0ca89a054_7)[s](#i6b9bcdaa820142b5bea13ad0ca89a054_7)]

For the fiscal year ended [removed: January 1,] [added: December 31,] 2022

☒ Yes [removed: ¨No][added: ¨ No]

The aggregate market value of the registrant’s Common Stock held by non-affiliates at July [removed: 3, 2021] [added: 2, 2022] was approximately [removed: $15.4] [added: $12.9] billion based on the New York Stock Exchange closing price for such shares on that date.

At February [removed: 5, 2022, 216,682,177] [added: 4, 2023, 205,216,698] shares of Common Stock were outstanding.

Part III of this Report incorporates information from certain portions of the registrant’s Definitive Proxy Statement for its Annual Meeting of Shareholders to be held on April [removed: 27, 2022.][added: 26, 2023.]

For the Fiscal Year Ended [removed: January 1,] [added: December 31,] 2022

| [Item [removed: 1.](#ia3b2c1588ae44834bf6ab6617886767e_13)] [added: 1.](#i6b9bcdaa820142b5bea13ad0ca89a054_13)] | | | [removed: [Business](#ia3b2c1588ae44834bf6ab6617886767e_13)] [added: [Business](#i6b9bcdaa820142b5bea13ad0ca89a054_13)] | | | [removed: [3](#ia3b2c1588ae44834bf6ab6617886767e_13)] [added: [3](#i6b9bcdaa820142b5bea13ad0ca89a054_13)] | | |

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| [Item [removed: 1B.](#ia3b2c1588ae44834bf6ab6617886767e_19)] [added: 1B.](#i6b9bcdaa820142b5bea13ad0ca89a054_19)] | | | [Unresolved Staff [removed: Comments](#ia3b2c1588ae44834bf6ab6617886767e_19)] [added: Comments](#i6b9bcdaa820142b5bea13ad0ca89a054_19)] | | | [removed: [16](#ia3b2c1588ae44834bf6ab6617886767e_19)] [added: [17](#i6b9bcdaa820142b5bea13ad0ca89a054_19)] | | |

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| [Item [removed: 5.](#ia3b2c1588ae44834bf6ab6617886767e_34)] [added: 5.](#i6b9bcdaa820142b5bea13ad0ca89a054_34)] | | | [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#ia3b2c1588ae44834bf6ab6617886767e_34)] [added: Securities](#i6b9bcdaa820142b5bea13ad0ca89a054_34)] | | | [removed: [18](#ia3b2c1588ae44834bf6ab6617886767e_34)] [added: [18](#i6b9bcdaa820142b5bea13ad0ca89a054_34)] | | |

| [Item [removed: 7.](#ia3b2c1588ae44834bf6ab6617886767e_40)] [added: 7.](#i6b9bcdaa820142b5bea13ad0ca89a054_37)] | | | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#ia3b2c1588ae44834bf6ab6617886767e_40)] [added: Operations](#i6b9bcdaa820142b5bea13ad0ca89a054_37)] | | | [removed: [19](#ia3b2c1588ae44834bf6ab6617886767e_40)] [added: [20](#i6b9bcdaa820142b5bea13ad0ca89a054_37)] | | |

| [Item [removed: 7A.](#ia3b2c1588ae44834bf6ab6617886767e_76)] [added: 7A.](#i6b9bcdaa820142b5bea13ad0ca89a054_70)] | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#ia3b2c1588ae44834bf6ab6617886767e_76)] [added: Risk](#i6b9bcdaa820142b5bea13ad0ca89a054_70)] | | | [removed: [30](#ia3b2c1588ae44834bf6ab6617886767e_76)] [added: [31](#i6b9bcdaa820142b5bea13ad0ca89a054_70)] | | |

| [Item [removed: 8.](#ia3b2c1588ae44834bf6ab6617886767e_79)] [added: 8.](#i6b9bcdaa820142b5bea13ad0ca89a054_73)] | | | [Financial Statements and Supplementary [removed: Data](#ia3b2c1588ae44834bf6ab6617886767e_79)] [added: Data](#i6b9bcdaa820142b5bea13ad0ca89a054_73)] | | | [removed: [31](#ia3b2c1588ae44834bf6ab6617886767e_79)] [added: [32](#i6b9bcdaa820142b5bea13ad0ca89a054_73)] | | |

| [Item [removed: 9.](#ia3b2c1588ae44834bf6ab6617886767e_175)] [added: 9.](#i6b9bcdaa820142b5bea13ad0ca89a054_169)] | | | [Changes In and Disagreements With Accountants on Accounting and Financial [removed: Disclosure](#ia3b2c1588ae44834bf6ab6617886767e_175)] [added: Disclosure](#i6b9bcdaa820142b5bea13ad0ca89a054_169)] | | | [removed: [68](#ia3b2c1588ae44834bf6ab6617886767e_175)] [added: [69](#i6b9bcdaa820142b5bea13ad0ca89a054_169)] | | |

| [Item [removed: 9A.](#ia3b2c1588ae44834bf6ab6617886767e_178)] [added: 9A.](#i6b9bcdaa820142b5bea13ad0ca89a054_172)] | | | [Controls and [removed: Procedures](#ia3b2c1588ae44834bf6ab6617886767e_178)] [added: Procedures](#i6b9bcdaa820142b5bea13ad0ca89a054_172)] | | | [removed: [68](#ia3b2c1588ae44834bf6ab6617886767e_178)] [added: [69](#i6b9bcdaa820142b5bea13ad0ca89a054_172)] | | |

| [Item [removed: 9C.](#ia3b2c1588ae44834bf6ab6617886767e_1771)] [added: 9C.](#i6b9bcdaa820142b5bea13ad0ca89a054_178)] | | | [Disclosure Regarding Foreign Jurisdictions that Prevent [removed: Inspections](#ia3b2c1588ae44834bf6ab6617886767e_1771)] [added: Inspections](#i6b9bcdaa820142b5bea13ad0ca89a054_178)] | | | [removed: [70](#ia3b2c1588ae44834bf6ab6617886767e_1771)] [added: [71](#i6b9bcdaa820142b5bea13ad0ca89a054_178)] | | |

| [Item [removed: 10.](#ia3b2c1588ae44834bf6ab6617886767e_187)] [added: 10.](#i6b9bcdaa820142b5bea13ad0ca89a054_184)] | | | [Directors, Executive Officers and Corporate [removed: Governance](#ia3b2c1588ae44834bf6ab6617886767e_187)] [added: Governance](#i6b9bcdaa820142b5bea13ad0ca89a054_184)] | | | [removed: [70](#ia3b2c1588ae44834bf6ab6617886767e_187)] [added: [71](#i6b9bcdaa820142b5bea13ad0ca89a054_184)] | | |

| [Item [removed: 11.](#ia3b2c1588ae44834bf6ab6617886767e_190)] [added: 11.](#i6b9bcdaa820142b5bea13ad0ca89a054_187)] | | | [Executive [removed: Compensation](#ia3b2c1588ae44834bf6ab6617886767e_190)] [added: Compensation](#i6b9bcdaa820142b5bea13ad0ca89a054_187)] | | | [removed: [70](#ia3b2c1588ae44834bf6ab6617886767e_190)] [added: [71](#i6b9bcdaa820142b5bea13ad0ca89a054_187)] | | |

| [Item [removed: 12.](#ia3b2c1588ae44834bf6ab6617886767e_193)] [added: 12.](#i6b9bcdaa820142b5bea13ad0ca89a054_190)] | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#ia3b2c1588ae44834bf6ab6617886767e_193)] [added: Matters](#i6b9bcdaa820142b5bea13ad0ca89a054_190)] | | | [removed: [70](#ia3b2c1588ae44834bf6ab6617886767e_193)] [added: [71](#i6b9bcdaa820142b5bea13ad0ca89a054_190)] | | |

| [Item [removed: 13.](#ia3b2c1588ae44834bf6ab6617886767e_196)] [added: 13.](#i6b9bcdaa820142b5bea13ad0ca89a054_193)] | | | [Certain Relationships and Related Transactions and Director [removed: Independence](#ia3b2c1588ae44834bf6ab6617886767e_196)] [added: Independence](#i6b9bcdaa820142b5bea13ad0ca89a054_193)] | | | [removed: [70](#ia3b2c1588ae44834bf6ab6617886767e_196)] [added: [71](#i6b9bcdaa820142b5bea13ad0ca89a054_193)] | | |

| [Item [removed: 14.](#ia3b2c1588ae44834bf6ab6617886767e_199)] [added: 14.](#i6b9bcdaa820142b5bea13ad0ca89a054_196)] | | | [Principal Accountant Fees and [removed: Services](#ia3b2c1588ae44834bf6ab6617886767e_199)] [added: Services](#i6b9bcdaa820142b5bea13ad0ca89a054_196)] | | | [removed: [70](#ia3b2c1588ae44834bf6ab6617886767e_199)] [added: [71](#i6b9bcdaa820142b5bea13ad0ca89a054_196)] | | |

| [Item [removed: 15.](#ia3b2c1588ae44834bf6ab6617886767e_205)] [added: 15.](#i6b9bcdaa820142b5bea13ad0ca89a054_202)] | | | [Exhibits and Financial Statement [removed: Schedules](#ia3b2c1588ae44834bf6ab6617886767e_205)] [added: Schedules](#i6b9bcdaa820142b5bea13ad0ca89a054_202)] | | | [removed: [71](#ia3b2c1588ae44834bf6ab6617886767e_205)] [added: [72](#i6b9bcdaa820142b5bea13ad0ca89a054_202)] | | |

| [Item [removed: 16.](#ia3b2c1588ae44834bf6ab6617886767e_208)] [added: 16.](#i6b9bcdaa820142b5bea13ad0ca89a054_205)] | | | [Form 10-K [removed: Summary](#ia3b2c1588ae44834bf6ab6617886767e_208)] [added: Summary](#i6b9bcdaa820142b5bea13ad0ca89a054_205)] | | | [removed: [74](#ia3b2c1588ae44834bf6ab6617886767e_208)] [added: [75](#i6b9bcdaa820142b5bea13ad0ca89a054_205)] | | |

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b) ☐

| [PART I](#i6b9bcdaa820142b5bea13ad0ca89a054_10) | | | | | | | | |

| [PART II](#i6b9bcdaa820142b5bea13ad0ca89a054_31) | | | | | | | | |

| [PART III](#i6b9bcdaa820142b5bea13ad0ca89a054_181) | | | | | | | | |

| [PART IV](#i6b9bcdaa820142b5bea13ad0ca89a054_199) | | | | | | | | |

| [Signatures](#i6b9bcdaa820142b5bea13ad0ca89a054_208) | | | | | | [76](#i6b9bcdaa820142b5bea13ad0ca89a054_208) | | |

| [PART I](#ia3b2c1588ae44834bf6ab6617886767e_10) | | | | | | | | |

| [PART II](#ia3b2c1588ae44834bf6ab6617886767e_31) | | | | | | | | |

| [PART III](#ia3b2c1588ae44834bf6ab6617886767e_184) | | | | | | | | |

| [PART IV](#ia3b2c1588ae44834bf6ab6617886767e_202) | | | | | | | | |

| [Signatures](#ia3b2c1588ae44834bf6ab6617886767e_211) | | | | | | [75](#ia3b2c1588ae44834bf6ab6617886767e_211) | | |

On [removed: January 1,] [added: December 31,] 2022, we operated a total of [removed: 52] [added: 54] plants located throughout the U.S. and [removed: 45] [added: 44] plants outside the U.S. We own 58 plants and lease the remainder for a total manufacturing space of approximately [removed: 23.3] [added: 23.6] million square feet.

The principal market on which our common stock is traded is the New York Stock Exchange under the symbol "TXT." At [removed: January 1,] [added: December 31,] 2022, there were approximately [removed: 5,800] [added: 5,500] record holders of Textron common stock.

The following provides information about our fourth quarter [removed: 2021] [added: 2022] repurchases of equity securities that are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended:

These shares were purchased pursuant to a plan authorizing the repurchase of up to 25 million shares of Textron common stock that was announced on [removed: February 25,2020, which had] [added: January 25,2022 and has] no expiration date.*

The following graph compares the total return on a cumulative basis at the end of each year of $100 invested in our common stock on December 31, [removed: 2016] [added: 2017] with the Standard & Poor’s (S&P) 500 Stock Index, the S&P 500 Aerospace & Defense (A&D) Index and the S&P 500 Industrials Index, all of which include Textron.

[removed: ][added: ]

| | | | [removed: 2016 | | |] 2017 | | | 2018 | | | 2019 | | | 2020 | | | 2021 | | | [added: 2022 | | |]

| October 2, 2022 – November 5, 2022 | | | 750 | | | $ | 64.62 | | 750 | | | 14,500 | | |

| November 6, 2022 – December 3, 2022 | | | 1,635 | | | 69.67 | | | 1,635 | | | 12,865 | | |

| December 4, 2022 – December 31, 2022 | | | 940 | | | 70.12 | | | 940 | | | 11,925 | | |

| Total | | | 3,325 | | | $ | 68.66 | | 3,325 | | | | | |

| Textron Inc. | | | $ | 100.00 | | $ | 80.77 | | $ | 79.29 | | $ | 85.86 | | $ | 137.31 | | $ | 126.08 | |

| S&P 500 | | | 100.00 | | | 94.80 | | | 125.91 | | | 148.85 | | | 191.58 | | | 156.88 | | |

| S&P 500 A&D | | | 100.00 | | | 90.72 | | | 124.44 | | | 100.56 | | | 113.86 | | | 133.64 | | |

| S&P 500 Industrials | | | 100.00 | | | 96.09 | | | 128.30 | | | 157.60 | | | 201.56 | | | 162.45 | | |

| October 3, 2021 – November 6, 2021 | | | 1,025 | | | $ | 72.19 | | 1,025 | | | 11,270 | | |

| November 7, 2021 – December 4, 2021 | | | 1,915 | | | 74.78 | | | 1,915 | | | 9,355 | | |

| December 5, 2021 – January 1, 2022 | | | 1,598 | | | 73.76 | | | 1,598 | | | 7,757 | | |

| Total | | | 4,538 | | | $ | 73.84 | | 4,538 | | | | | |

On January 25, 2022, we announced the authorization of the repurchase of up to 25 million shares of our common stock.

This new plan has no expiration date and replaced the existing plan adopted in 2020 that had 7.8 million remaining shares available for repurchase.

| Textron Inc. | | | $ | 100.00 | | $ | 116.72 | | $ | 94.28 | | $ | 92.55 | | $ | 100.22 | | $ | 160.28 | |

| S&P 500 | | | 100.00 | | | 121.83 | | | 115.49 | | | 153.40 | | | 181.35 | | | 233.41 | | |

| S&P 500 A&D | | | 100.00 | | | 141.38 | | | 128.27 | | | 175.93 | | | 142.18 | | | 160.98 | | |

| S&P 500 Industrials | | | 100.00 | | | 122.56 | | | 117.77 | | | 157.25 | | | 193.16 | | | 247.04 | | |

| [Consolidated Statements of Operations for each of the years in the three-year period [removed: ended](#ia3b2c1588ae44834bf6ab6617886767e_82) January 1,] [added: ended](#i6b9bcdaa820142b5bea13ad0ca89a054_76) December 31,] 2022 | | | | | | | | | [removed: [32](#ia3b2c1588ae44834bf6ab6617886767e_82)] [added: [33](#i6b9bcdaa820142b5bea13ad0ca89a054_76)] | | |

| [Consolidated Statements of Comprehensive Income for each of the years in the three-year period [removed: ended](#ia3b2c1588ae44834bf6ab6617886767e_85) January 1,] [added: ended](#i6b9bcdaa820142b5bea13ad0ca89a054_79) December 31,] 2022 | | | | | | | | | [removed: [33](#ia3b2c1588ae44834bf6ab6617886767e_85)] [added: [34](#i6b9bcdaa820142b5bea13ad0ca89a054_79)] | | |

| [Consolidated Balance Sheets as [removed: of](#ia3b2c1588ae44834bf6ab6617886767e_88)] [added: of](#i6b9bcdaa820142b5bea13ad0ca89a054_82) December 31, 2022 [and](#i6b9bcdaa820142b5bea13ad0ca89a054_82)] January 1, 2022 [removed: [and](#ia3b2c1588ae44834bf6ab6617886767e_88) January 2, 2021] | | | | | | | | | [removed: [34](#ia3b2c1588ae44834bf6ab6617886767e_88)] [added: [35](#i6b9bcdaa820142b5bea13ad0ca89a054_82)] | | |

| [Consolidated Statements of Shareholders’ Equity for each of the years in the three-year period [removed: ended](#ia3b2c1588ae44834bf6ab6617886767e_91) January 1,] [added: ended](#i6b9bcdaa820142b5bea13ad0ca89a054_85) December 31,] 2022 | | | | | | | | | [removed: [35](#ia3b2c1588ae44834bf6ab6617886767e_91)] [added: [36](#i6b9bcdaa820142b5bea13ad0ca89a054_85)] | | |

| [Consolidated Statements of Cash Flows for each of the years in the three-year period [removed: ended](#ia3b2c1588ae44834bf6ab6617886767e_94) January 1,] [added: ended](#i6b9bcdaa820142b5bea13ad0ca89a054_88) December 31,] 2022 | | | | | | | | | [removed: [36](#ia3b2c1588ae44834bf6ab6617886767e_94)] [added: [37](#i6b9bcdaa820142b5bea13ad0ca89a054_88)] | | |

| [Notes to the Consolidated Financial [removed: Statements](#ia3b2c1588ae44834bf6ab6617886767e_97)] [added: Statements](#i6b9bcdaa820142b5bea13ad0ca89a054_94)] | | | | | | | | | | | |

| | | | [Note [removed: 1.](#ia3b2c1588ae44834bf6ab6617886767e_100)] [added: 1.](#i6b9bcdaa820142b5bea13ad0ca89a054_97)] | | | [Summary of Significant Accounting [removed: Policies](#ia3b2c1588ae44834bf6ab6617886767e_100)] [added: Policies](#i6b9bcdaa820142b5bea13ad0ca89a054_97)] | | | [removed: [38](#ia3b2c1588ae44834bf6ab6617886767e_100)] [added: [39](#i6b9bcdaa820142b5bea13ad0ca89a054_97)] | | |

| [added: Business disposition] | | | [removed: [Note 2.](#ia3b2c1588ae44834bf6ab6617886767e_103)] [added: —] | | | [removed: [Business Disposition](#ia3b2c1588ae44834bf6ab6617886767e_103)] [added: —] | | | [removed: [44](#ia3b2c1588ae44834bf6ab6617886767e_103)] [added: —] | | | [added: 14 | | | — | | | 14 | | | — | | | — | | | — | | |]

| | | | [Note [removed: 3.](#ia3b2c1588ae44834bf6ab6617886767e_106)] [added: 3.](#i6b9bcdaa820142b5bea13ad0ca89a054_103)] | | | [Goodwill and Intangible [removed: Assets](#ia3b2c1588ae44834bf6ab6617886767e_106)] [added: Assets](#i6b9bcdaa820142b5bea13ad0ca89a054_103)] | | | [removed: [44](#ia3b2c1588ae44834bf6ab6617886767e_106)] [added: [45](#i6b9bcdaa820142b5bea13ad0ca89a054_103)] | | |

| | | | [Note [removed: 4.](#ia3b2c1588ae44834bf6ab6617886767e_109)] [added: 4.](#i6b9bcdaa820142b5bea13ad0ca89a054_106)] | | | [Accounts Receivable and Finance [removed: Receivables](#ia3b2c1588ae44834bf6ab6617886767e_109)] [added: Receivables](#i6b9bcdaa820142b5bea13ad0ca89a054_106)] | | | [removed: [45](#ia3b2c1588ae44834bf6ab6617886767e_109)] [added: [46](#i6b9bcdaa820142b5bea13ad0ca89a054_106)] | | |

| | | | [Note [removed: 6.](#ia3b2c1588ae44834bf6ab6617886767e_115)] [added: 6.](#i6b9bcdaa820142b5bea13ad0ca89a054_112)] | | | [Property, Plant and Equipment, [removed: Net](#ia3b2c1588ae44834bf6ab6617886767e_115)] [added: Net](#i6b9bcdaa820142b5bea13ad0ca89a054_112)] | | | [removed: [47](#ia3b2c1588ae44834bf6ab6617886767e_115)] [added: [48](#i6b9bcdaa820142b5bea13ad0ca89a054_112)] | | |

| | | | [removed: [Note](#ia3b2c1588ae44834bf6ab6617886767e_121) [7](#ia3b2c1588ae44834bf6ab6617886767e_121)[.](#ia3b2c1588ae44834bf6ab6617886767e_121)] [added: [Note 7.](#i6b9bcdaa820142b5bea13ad0ca89a054_115)] | | | [Other Current [removed: Liabilities](#ia3b2c1588ae44834bf6ab6617886767e_121)] [added: Liabilities](#i6b9bcdaa820142b5bea13ad0ca89a054_115)] | | | [removed: [47](#ia3b2c1588ae44834bf6ab6617886767e_121)] [added: [48](#i6b9bcdaa820142b5bea13ad0ca89a054_115)] | | |

| | | | [removed: [Note](#ia3b2c1588ae44834bf6ab6617886767e_130) [9](#ia3b2c1588ae44834bf6ab6617886767e_130)[.](#ia3b2c1588ae44834bf6ab6617886767e_130)] [added: [Note 9.](#i6b9bcdaa820142b5bea13ad0ca89a054_124)] | | | [Debt and Credit [removed: Facilities](#ia3b2c1588ae44834bf6ab6617886767e_130)] [added: Facilities](#i6b9bcdaa820142b5bea13ad0ca89a054_124)] | | | [removed: [48](#ia3b2c1588ae44834bf6ab6617886767e_130)] [added: [49](#i6b9bcdaa820142b5bea13ad0ca89a054_124)] | | |

| | | | [removed: [Note.1](#ia3b2c1588ae44834bf6ab6617886767e_133)[0](#ia3b2c1588ae44834bf6ab6617886767e_133)[.](#ia3b2c1588ae44834bf6ab6617886767e_133)] [added: [Note](#i6b9bcdaa820142b5bea13ad0ca89a054_127) [](#i6b9bcdaa820142b5bea13ad0ca89a054_127)[10.](#i6b9bcdaa820142b5bea13ad0ca89a054_127)] | | | [Derivative Instruments and Fair Value [removed: Measurements](#ia3b2c1588ae44834bf6ab6617886767e_133)] [added: Measurements](#i6b9bcdaa820142b5bea13ad0ca89a054_127)] | | | [removed: [49](#ia3b2c1588ae44834bf6ab6617886767e_133)] [added: [50](#i6b9bcdaa820142b5bea13ad0ca89a054_127)] | | |

| | | | [Note [removed: 1](#ia3b2c1588ae44834bf6ab6617886767e_139)[2](#ia3b2c1588ae44834bf6ab6617886767e_139)[.](#ia3b2c1588ae44834bf6ab6617886767e_139)] [added: 12.](#i6b9bcdaa820142b5bea13ad0ca89a054_133)] | | | [Segment and Geographic [removed: Data](#ia3b2c1588ae44834bf6ab6617886767e_139)] [added: Data](#i6b9bcdaa820142b5bea13ad0ca89a054_133)] | | | [removed: [52](#ia3b2c1588ae44834bf6ab6617886767e_139)] [added: [53](#i6b9bcdaa820142b5bea13ad0ca89a054_133)] | | |

| | | | [Note [removed: 1](#ia3b2c1588ae44834bf6ab6617886767e_148)[4](#ia3b2c1588ae44834bf6ab6617886767e_148)[.](#ia3b2c1588ae44834bf6ab6617886767e_148)] [added: 14.](#i6b9bcdaa820142b5bea13ad0ca89a054_142)] | | | [Share-Based [removed: Compensation](#ia3b2c1588ae44834bf6ab6617886767e_148)] [added: Compensation](#i6b9bcdaa820142b5bea13ad0ca89a054_142)] | | | [removed: [55](#ia3b2c1588ae44834bf6ab6617886767e_148)] [added: [56](#i6b9bcdaa820142b5bea13ad0ca89a054_142)] | | |

| | | | [Note [removed: 1](#ia3b2c1588ae44834bf6ab6617886767e_160)[8](#ia3b2c1588ae44834bf6ab6617886767e_160)[.](#ia3b2c1588ae44834bf6ab6617886767e_160)] [added: 18.](#i6b9bcdaa820142b5bea13ad0ca89a054_154)] | | | [Commitments and [removed: Contingencies](#ia3b2c1588ae44834bf6ab6617886767e_160)] [added: Contingencies](#i6b9bcdaa820142b5bea13ad0ca89a054_154)] | | | [removed: [65](#ia3b2c1588ae44834bf6ab6617886767e_160)] [added: [66](#i6b9bcdaa820142b5bea13ad0ca89a054_154)] | | |

| | | | [removed: [Note](#ia3b2c1588ae44834bf6ab6617886767e_163) [19](#ia3b2c1588ae44834bf6ab6617886767e_163)[.](#ia3b2c1588ae44834bf6ab6617886767e_163)] [added: [Note 19.](#i6b9bcdaa820142b5bea13ad0ca89a054_157)] | | | [Supplemental Cash Flow [removed: Information](#ia3b2c1588ae44834bf6ab6617886767e_163)] [added: Information](#i6b9bcdaa820142b5bea13ad0ca89a054_157)] | | | [removed: [65](#ia3b2c1588ae44834bf6ab6617886767e_163)] [added: [66](#i6b9bcdaa820142b5bea13ad0ca89a054_157)] | | |

| [Report of Independent Registered Public Accounting [removed: Firm](#ia3b2c1588ae44834bf6ab6617886767e_166)] [added: Firm](#i6b9bcdaa820142b5bea13ad0ca89a054_160)] | | | | | | | | | [removed: [66](#ia3b2c1588ae44834bf6ab6617886767e_166)] [added: [67](#i6b9bcdaa820142b5bea13ad0ca89a054_160)] | | |

| | | | [Schedule II – Valuation and Qualifying [removed: Accounts](#ia3b2c1588ae44834bf6ab6617886767e_172)] [added: Accounts](#i6b9bcdaa820142b5bea13ad0ca89a054_166)] | | | | | | [removed: [68](#ia3b2c1588ae44834bf6ab6617886767e_172)] [added: [69](#i6b9bcdaa820142b5bea13ad0ca89a054_166)] | | |

For each of the years in the three-year period ended [removed: January 1,] [added: December 31,] 2022

| *(In millions, except per share data)* | | | [removed: 2021] [added: 2022] | | | [removed: 2020] [added: 2021] | | | [removed: 2019] [added: 2020] | | |

| Manufacturing product revenues | | | $ | [removed: 10,541] [added: 10,945] | | $ | [removed: 9,720] [added: 10,541] | | $ | [removed: 11,690] [added: 9,720] | |

| Manufacturing service revenues | | | [removed: 1,792] [added: 1,872] | | | [removed: 1,876] [added: 1,792] | | | [removed: 1,874] [added: 1,876] | | |

| Finance revenues | | | [removed: 49] [added: 52] | | | [removed: 55] [added: 49] | | | [removed: 66] [added: 55] | | |

| Total revenues | | | [removed: 12,382] [added: 12,869] | | | [removed: 11,651] [added: 12,382] | | | [removed: 13,630] [added: 11,651] | | |

| Cost of products sold | | | [removed: 8,955] [added: 9,380] | | | [removed: 8,715] [added: 8,955] | | | [removed: 9,982] [added: 8,715] | | |

| Cost of services sold | | | [removed: 1,342] [added: 1,420] | | | [removed: 1,379] [added: 1,342] | | | [removed: 1,424] [added: 1,379] | | |

| Selling and administrative expense | | | [removed: 1,221] [added: 1,186] | | | [removed: 1,045] [added: 1,221] | | | [removed: 1,152] [added: 1,045] | | |

| Interest [removed: expense] [added: expense, net] | | | [removed: 142] [added: 107] | | | [removed: 166] [added: 142] | | | [removed: 171] [added: 166] | | |

| Special charges | | | [removed: 25] [added: —] | | | [removed: 147] [added: 25] | | | [removed: 72] [added: 147] | | |

| Non-service components of pension and postretirement income, net | | | [removed: (159)] [added: (240)] | | | [removed: (83)] [added: (159)] | | | [removed: (113)] [added: (83)] | | |

| Gain on business disposition | | | [removed: (17)] [added: —] | | | [removed: —] [added: (17)] | | | — | | |

| Total costs, expenses and other | | | [removed: 11,509] [added: 11,853] | | | [removed: 11,369] [added: 11,509] | | | [removed: 12,688] [added: 11,369] | | |

| Income from continuing operations before income taxes | | | [removed: 873] [added: 1,016] | | | [removed: 282] [added: 873] | | | [removed: 942] [added: 282] | | |

| Income tax expense (benefit) | | | [removed: 126] [added: 154] | | | [removed: (27)] [added: 126] | | | [removed: 127] [added: (27)] | | |

| Income from continuing operations | | | $ | [removed: 747] [added: 862] | | $ | [removed: 309] [added: 747] | | $ | [removed: 815] [added: 309] | |

| Loss from discontinued operations | | | (1) | | | [removed: —] [added: (1)] | | | — | | |

| Net income | | | $ | [removed: 746] [added: 861] | | $ | [removed: 309] [added: 746] | | $ | [removed: 815] [added: 309] | |

| Continuing operations | | | $ | [removed: 3.33] [added: 4.05] | | $ | [removed: 1.35] [added: 3.33] | | $ | [removed: 3.52] [added: 1.35] | |

| | | | [Note 2.](#i6b9bcdaa820142b5bea13ad0ca89a054_100) | | | [Business](#i6b9bcdaa820142b5bea13ad0ca89a054_100) [Acquisition and](#i6b9bcdaa820142b5bea13ad0ca89a054_100) [Disposition](#i6b9bcdaa820142b5bea13ad0ca89a054_100) | | | [45](#i6b9bcdaa820142b5bea13ad0ca89a054_100) | | |

| | | | [Note 5.](#i6b9bcdaa820142b5bea13ad0ca89a054_109) | | | [Inventories](#i6b9bcdaa820142b5bea13ad0ca89a054_109) | | | [48](#i6b9bcdaa820142b5bea13ad0ca89a054_109) | | |

| | | | [Note 8.](#i6b9bcdaa820142b5bea13ad0ca89a054_118) | | | [Leases](#i6b9bcdaa820142b5bea13ad0ca89a054_118) | | | [49](#i6b9bcdaa820142b5bea13ad0ca89a054_118) | | |

| | | | [Note 11.](#i6b9bcdaa820142b5bea13ad0ca89a054_130) | | | [Shareholders’ Equity](#i6b9bcdaa820142b5bea13ad0ca89a054_130) | | | [51](#i6b9bcdaa820142b5bea13ad0ca89a054_130) | | |

| | | | [Note 13.](#i6b9bcdaa820142b5bea13ad0ca89a054_136) | | | [Revenues](#i6b9bcdaa820142b5bea13ad0ca89a054_136) | | | [55](#i6b9bcdaa820142b5bea13ad0ca89a054_136) | | |

| | | | [Note 15.](#i6b9bcdaa820142b5bea13ad0ca89a054_145) | | | [Retirement Plans](#i6b9bcdaa820142b5bea13ad0ca89a054_145) | | | [58](#i6b9bcdaa820142b5bea13ad0ca89a054_145) | | |

| | | | [Note 16.](#i6b9bcdaa820142b5bea13ad0ca89a054_148) | | | [Special Charges](#i6b9bcdaa820142b5bea13ad0ca89a054_148) | | | [62](#i6b9bcdaa820142b5bea13ad0ca89a054_148) | | |

| | | | [Note 17.](#i6b9bcdaa820142b5bea13ad0ca89a054_151) | | | [Income Taxes](#i6b9bcdaa820142b5bea13ad0ca89a054_151) | | | [63](#i6b9bcdaa820142b5bea13ad0ca89a054_151) | | |

| Other comprehensive income | | | — | | | — | | | — | | | — | | | 177 | | | 177 | | |

| Retirement of treasury stock | | | (2) | | | (127) | | | 940 | | | (811) | | | — | | | — | | |

| Balance at December 31, 2022 | | | $ | 26 | | $ | 1,880 | | $ | (84) | | $ | 5,903 | | $ | (612) | | $ | 7,113 | |

| Decrease in short-term debt | | | (14) | | | (1) | | | — | | |

| Decrease in short-term debt | | | (14) | | | (1) | | | — | | | — | | | — | | | — | | |

standalone selling price of each performance obligation.

In 2022, our cumulative catch-up adjustments decreased segment profit by $16 million and net income by $12 million, ($0.06 per diluted share).

The majority of our inventories are valued using the last-in, first-out (LIFO) method, while the remaining inventories are generally valued using the first-in, first-out (FIFO) method.

option.

2022 Business Acquisition

On April 15, 2022, we acquired Pipistrel, a manufacturer of electrically powered aircraft, for a cash purchase price of $239 million, which included the assumption of $35 million of debt and other contractual obligations under the agreement and a final fixed payment of $21 million due in 2024.

Beginning in the second quarter of 2022, this business is included in a new reporting segment, Textron eAviation, which combines the operating results of Pipistrel along with other research and development initiatives related to sustainable aviation solutions.

We allocated the purchase price for this business to the assets acquired and liabilities assumed based on their estimated fair values at the acquisition date and recorded $141 million in goodwill, related to expected synergies and the value of the assembled workforce, and $76 million in intangible assets, primarily developed technologies.

The intangible assets were primarily valued using the relief-from-royalty method.

This method utilizes significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy and requires us to make estimates and assumptions about sales, growth rates, royalty rates and discount rates based on marketplace data.

| Acquisitions | | | 3 | | | 2 | | | — | | | — | | | 141 | | | 146 | | |

| Balance at December 31, 2022 | | | $ | 633 | | $ | 37 | | $ | 1,010 | | $ | 465 | | $ | 138 | | $ | 2,283 | |

| | | | 879 | | | 862 | | |

At both December 31, 2022 and January 1, 2022, 71% of inventories were valued using the LIFO method.

| | | | | | | | | | | | | 7,607 | | | 7,426 | | |

| Total | | | $ | 20 | | $ | 367 | | $ | 384 | | $ | 356 | | $ | 406 | |

This new facility replaces the existing five-year facility, which was scheduled to expire in October 2024.

At December 31, 2022 and January 1, 2022, there were no amounts borrowed against either facility.

| Balance at December 31, 2022 | | | $ | (516) | | $ | (94) | | $ | (2) | | $ | (612) | |

The Textron eAviation segment manufactures a family of light aircraft and gliders with both electric and combustion engines, and also performs other research and development initiatives related to sustainable aviation solutions.

| Textron eAviation | | | 16 | | | — | | | — | | | (26) | | | — | | | — | | |

| Textron eAviation | | | 278 | | | — | | | 1 | | | — | | | — | | | 2 | | | — | | | — | | |

| Other international | | | 2,699 | | | 2,441 | | | 2,372 | | | 198 | | | 216 | | |

| Textron eAviation | | | 16 | | | — | | | — | | |

| | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| 2022 | | | | | | | | | | | | | | | | | | | | | | | |

| | | | [Note 5.](#ia3b2c1588ae44834bf6ab6617886767e_112) | | | [Inventories](#ia3b2c1588ae44834bf6ab6617886767e_112) | | | [47](#ia3b2c1588ae44834bf6ab6617886767e_112) | | |

| | | | [Note](#ia3b2c1588ae44834bf6ab6617886767e_124) [8](#ia3b2c1588ae44834bf6ab6617886767e_124)[.](#ia3b2c1588ae44834bf6ab6617886767e_124) | | | [Leases](#ia3b2c1588ae44834bf6ab6617886767e_124) | | | [48](#ia3b2c1588ae44834bf6ab6617886767e_124) | | |

| | | | [Note 1](#ia3b2c1588ae44834bf6ab6617886767e_136)[1](#ia3b2c1588ae44834bf6ab6617886767e_136)[.](#ia3b2c1588ae44834bf6ab6617886767e_136) | | | [Shareholders’ Equity](#ia3b2c1588ae44834bf6ab6617886767e_136) | | | [50](#ia3b2c1588ae44834bf6ab6617886767e_136) | | |

| | | | [Note 1](#ia3b2c1588ae44834bf6ab6617886767e_142)[3](#ia3b2c1588ae44834bf6ab6617886767e_142)[.](#ia3b2c1588ae44834bf6ab6617886767e_142) | | | [Revenues](#ia3b2c1588ae44834bf6ab6617886767e_142) | | | [53](#ia3b2c1588ae44834bf6ab6617886767e_142) | | |

| | | | [Note 1](#ia3b2c1588ae44834bf6ab6617886767e_151)[5](#ia3b2c1588ae44834bf6ab6617886767e_151)[.](#ia3b2c1588ae44834bf6ab6617886767e_151) | | | [Retirement Plans](#ia3b2c1588ae44834bf6ab6617886767e_151) | | | [57](#ia3b2c1588ae44834bf6ab6617886767e_151) | | |

| | | | [Note 1](#ia3b2c1588ae44834bf6ab6617886767e_154)[6](#ia3b2c1588ae44834bf6ab6617886767e_154)[.](#ia3b2c1588ae44834bf6ab6617886767e_154) | | | [Special Charges](#ia3b2c1588ae44834bf6ab6617886767e_154) | | | [61](#ia3b2c1588ae44834bf6ab6617886767e_154) | | |

| | | | [Note 1](#ia3b2c1588ae44834bf6ab6617886767e_157)[7](#ia3b2c1588ae44834bf6ab6617886767e_157)[.](#ia3b2c1588ae44834bf6ab6617886767e_157) | | | [Income Taxes](#ia3b2c1588ae44834bf6ab6617886767e_157) | | | [62](#ia3b2c1588ae44834bf6ab6617886767e_157) | | |

| Balance at December 29, 2018 | | | $ | 30 | | $ | 1,646 | | $ | (129) | | $ | 5,407 | | $ | (1,762) | | $ | 5,192 | |

| Retirement of treasury stock | | | (1) | | | (89) | | | 612 | | | (522) | | | — | | | — | | |

Product and service revenues and their related costs are reported on separate lines on the Consolidated Statement of Operations for 2021, and prior periods have been reclassified to conform to this presentation.

For 2021, 2020 and 2019, gross favorable adjustments totaled $154 million, $148 million and $173 million, respectively, and gross unfavorable adjustments totaled $73 million, $76 million and $82 million, respectively.

We value our inventories generally using the first-in, first-out (FIFO) method or the last-in, first-out (LIFO) method for certain qualifying inventories where LIFO provides a better matching of costs and revenues.

We determine costs for our commercial helicopters on an average cost basis by model considering the expended and estimated costs for the current production release.

The percentage is based on a combination of factors, including historical loss

The discount rate used to

amount of benefit that meets the more-likely-than-not threshold to be sustained.

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Balance at January 4, 2020 | | | $ | 614 | | $ | 31 | | $ | 1,033 | | $ | 472 | | $ | 2,150 | |

| Acquisitions | | | 4 | | | 4 | | | — | | | — | | | 8 | | |

| Reclassifications* | | | 12 | | | — | | | (24) | | | — | | | (12) | | |

| | | | | | | | | | | | | | | | | | |

Reclassifications include $12 million of goodwill classified as held for sale in connection with a business disposition described in Note 2 and amounts transferred between segments.*

| | | | 862 | | | 823 | | |

Since the first quarter of 2020, the Finance segment has worked with certain customers impacted by the pandemic to provide payment relief through loan modifications.

The types of temporary payment relief we offered to these customers included delays in the timing of required principal payments, deferrals of interest payments and/or interest-only payments.

The majority of these modified loans have returned to paying principal and interest.

For loan modifications that cover payment-relief periods in excess of six months, even if the loan was previously current, the loan is deemed a troubled debt restructuring and considered impaired.

These impaired loans are classified as either nonaccrual or watchlist based on a review of the credit quality indicators as discussed above.

During 2021, we modified finance receivable contracts for 25 customers with an outstanding balance at January 1, 2022 totaling $82 million, which were all categorized as troubled debt restructurings and included $70 million previously modified in 2020.

Due to the nature of these restructurings, the financial effects were not significant.

We had one customer default related to finance receivables previously modified as a troubled debt restructuring that had an insignificant outstanding balance.

We believe our allowance for credit losses adequately covers our exposure on these loans as our estimated collateral values largely exceed the outstanding loan amounts.

For accounts modified in 2021 and 2020 resulting from the pandemic, the origination date prior to the modification was maintained based on the types of temporary payment relief provided.

| | | | | | | | | | | | | 7,426 | | | 7,212 | | |

| 3.65% due 2021 | | | $ | — | | $ | 250 | |

| 5.95% due 2021 | | | — | | | 250 | | |

| Total | | | $ | 269 | | $ | 21 | | $ | 367 | | $ | 361 | | $ | 358 | |

| Balance at January 4, 2020 | | | $ | (1,811) | | $ | (36) | | $ | — | | $ | (1,847) | |

| Reclassified from Accumulated other comprehensive loss | | | 146 | | | — | | | (4) | | | 142 | | |

We performed an evaluation of the effectiveness of our disclosure controls and procedures as of [removed: January 1,] [added: December 31,] 2022.

Based on this evaluation, the CEO and CFO concluded that our disclosure controls and procedures were operating and effective as of [removed: January 1,] [added: December 31,] 2022.

Based on our evaluation under the 2013 Framework, we have concluded that Textron Inc. maintained, in all material respects, effective internal control over financial reporting as of [removed: January 1,] [added: December 31,] 2022.

The independent registered public accounting firm, Ernst & Young LLP (PCAOB ID: 42), has audited the Consolidated Financial Statements of Textron Inc. and has issued an attestation report on Textron’s internal controls over financial reporting as of [removed: January 1,] [added: December 31,] 2022, as stated in its report, which is included herein.

We have audited Textron Inc.’s internal control over financial reporting as of [removed: January 1,] [added: December 31,] 2022, based on criteria established in Internal Control— Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework), (the COSO criteria).

In our opinion, Textron, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of [removed: January 1,] [added: December 31,] 2022, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Consolidated Balance Sheets of the Company as of [removed: January 1,] [added: December 31,] 2022 and January [removed: 2, 2021,] [added: 1, 2022,] and the related Consolidated Statements of Operations, Comprehensive Income, Shareholders' Equity and Cash Flows for each of the three years in the period ended [removed: January 1,] [added: December 31,] 2022, and the related notes and the financial statement schedule contained on page [removed: 68,] [added: 70,] of the Company and our report dated February [removed: 17, 2022] [added: 16, 2023] expressed an unqualified opinion thereon.

February 16, 2023

February 17, 2022

The information appearing under “ELECTION OF DIRECTORS — Nominees for Director,” “CORPORATE GOVERNANCE — Corporate Governance Guidelines and Policies,” “— Code of Ethics,” and “— Board Committees — *Audit Committee*,” in the Proxy Statement for our [removed: 2022] [added: 2023] Annual Meeting of Shareholders is incorporated by reference into this Annual Report on Form 10-K.

The information appearing under “CORPORATE GOVERNANCE — Compensation of Directors,” “COMPENSATION COMMITTEE REPORT,” “COMPENSATION DISCUSSION AND ANALYSIS” and “EXECUTIVE COMPENSATION” in the Proxy Statement for our [removed: 2022] [added: 2023] Annual Meeting of Shareholders is incorporated by reference into this Annual Report on Form 10-K.

The information appearing under “SECURITY OWNERSHIP” and “EXECUTIVE COMPENSATION – Equity Compensation Plan Information” in the Proxy Statement for our [removed: 2022] [added: 2023] Annual Meeting of Shareholders is incorporated by reference into this Annual Report on Form 10-K.

The information appearing under “CORPORATE GOVERNANCE — Director Independence” and “EXECUTIVE COMPENSATION — Transactions with Related Persons” in the Proxy Statement for our [removed: 2022] [added: 2023] Annual Meeting of Shareholders is incorporated by reference into this Annual Report on Form 10-K.

The information appearing under “RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM — Fees to Independent Auditors” in the Proxy Statement for our [removed: 2022] [added: 2023] Annual Meeting of Shareholders is incorporated by reference into this Annual Report on Form 10-K.

Financial Statements and Schedules — See Index on Page [removed: 31.][added: 32.]

| 4.1B | | | | | | [Amendment to Support Agreement, dated as of December 23, 2015, by and between Textron Inc. and Textron Financial Corporation. Incorporated by reference to Exhibit 4.1B to Textron’s Annual Report on Form 10-K for the fiscal year ended January 2, [removed: 2016](https://www.sec.gov/Archives/edgar/data/217346/000110465916099562/a15-23451_1ex4d1b.htm) [(SEC] [added: 2016 (SEC] File No. [removed: 1-5480)](https://www.sec.gov/Archives/edgar/data/217346/000110465916099562/a15-23451_1ex4d1b.htm)[.](https://www.sec.gov/Archives/edgar/data/217346/000110465916099562/a15-23451_1ex4d1b.htm)] [added: 1-5480).](https://www.sec.gov/Archives/edgar/data/217346/000110465916099562/a15-23451_1ex4d1b.htm)] | | |

| 10.3A | | | | | | [Textron Inc. 2015 Long-Term Incentive Plan. Incorporated by reference to Exhibit 10.1 to Textron’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 4, [removed: 2015](https://www.sec.gov/Archives/edgar/data/217346/000110465915054257/a15-11861_1ex10d1.htm) [](https://www.sec.gov/Archives/edgar/data/217346/000110465915054257/a15-11861_1ex10d1.htm)[(SEC] [added: 2015 (SEC] File No. [removed: 1-5480)](https://www.sec.gov/Archives/edgar/data/217346/000110465915054257/a15-11861_1ex10d1.htm)[.](https://www.sec.gov/Archives/edgar/data/217346/000110465915054257/a15-11861_1ex10d1.htm)] [added: 1-5480).](https://www.sec.gov/Archives/edgar/data/217346/000110465915054257/a15-11861_1ex10d1.htm)] | | |

| 10.3B | | | | | | [Form of Non-Qualified Stock Option Agreement under 2015 Long-Term Incentive Plan. Incorporated by reference to Exhibit 10.1 to Textron’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 2, [removed: 2016](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d1.htm) [(SEC F](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d1.htm)[ile] [added: 2016 (SEC File] No. [removed: 1-5480)](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d1.htm)[.](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d1.htm)] [added: 1-5480).](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d1.htm)] | | |

| 10.3C | | | | | | [Form of Stock-Settled Restricted Stock Unit (with Dividend Equivalents) Grant Agreement under 2015 Long-Term Incentive Plan. Incorporated by reference to Exhibit 10.2 to Textron’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 2, [removed: 2016](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d2.htm) [(SEC] [added: 2016 (SEC] File No. [removed: 1-5480)](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d2.htm)[.](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d2.htm)] [added: 1-5480).](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d2.htm)] | | |

| 10.3D | | | | | | [Form of Performance Share Unit Grant Agreement under 2015 Long-Term Incentive Plan. Incorporated by reference to Exhibit 10.3 to Textron’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 2, [removed: 2016](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d3.htm) [(SEC] [added: 2016 (SEC] File No. [removed: 1-5480)](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d3.htm)[.](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d3.htm)] [added: 1-5480).](https://www.sec.gov/Archives/edgar/data/217346/000110465916114825/a16-6092_1ex10d3.htm)] | | |

| 10.4 | | | | | | [Textron Spillover Savings Plan, effective October 5, 2015. Incorporated by reference to Exhibit 10.4 to Textron’s Annual Report on Form 10-K for the fiscal year ended January 2, [removed: 2016](https://www.sec.gov/Archives/edgar/data/217346/000110465916099562/a15-23451_1ex10d4.htm) [(SEC] [added: 2016 (SEC] File No. [removed: 1-5480)](https://www.sec.gov/Archives/edgar/data/217346/000110465916099562/a15-23451_1ex10d4.htm)[.](https://www.sec.gov/Archives/edgar/data/217346/000110465916099562/a15-23451_1ex10d4.htm)] [added: 1-5480).](https://www.sec.gov/Archives/edgar/data/217346/000110465916099562/a15-23451_1ex10d4.htm)] | | |

| 10.6 | | | | | | [Deferred Income Plan for Textron Executives, Effective October 5, 2015. Incorporated by reference to Exhibit 10.6 to Textron’s Annual Report on Form 10-K for the fiscal year ended January 2, [removed: 2016](https://www.sec.gov/Archives/edgar/data/217346/000110465916099562/a15-23451_1ex10d6.htm) [(SEC] [added: 2016 (SEC] File No. [removed: 1-5480)](https://www.sec.gov/Archives/edgar/data/217346/000110465916099562/a15-23451_1ex10d6.htm)[.](https://www.sec.gov/Archives/edgar/data/217346/000110465916099562/a15-23451_1ex10d6.htm)] [added: 1-5480).](https://www.sec.gov/Archives/edgar/data/217346/000110465916099562/a15-23451_1ex10d6.htm)] | | |

| 10.10 | | | | | | [Form of Indemnity Agreement between Textron and its non-employee directors (approved by the Nominating and Corporate Governance Committee of the Board of Directors on July 21, 2009 and entered into with all non-employee directors, effective as of August 1, [removed: 2009](https://www.sec.gov/Archives/edgar/data/217346/000021734609000156/indemnityagmtdirector.htm) [or] [added: 2009 or] as of such later date as the director joined the [removed: Board](https://www.sec.gov/Archives/edgar/data/217346/000021734609000156/indemnityagmtdirector.htm)[).] [added: Board).] Incorporated by reference to Exhibit 10.1 to Textron’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 3, 2009. (SEC File No. 1-5480)](https://www.sec.gov/Archives/edgar/data/217346/000021734609000156/indemnityagmtdirector.htm) | | |

| 10.11C | | | | | | [Amended and Restated Hangar License and Services Agreement, made and entered into as of October 1, 2015, between Textron Inc. and Mr. Donnelly’s limited liability company. Incorporated by reference to Exhibit 10.2 to Textron’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 3, [removed: 2015](https://www.sec.gov/Archives/edgar/data/217346/000110465915073479/a15-17798_1ex10d2.htm) [(SEC](https://www.sec.gov/Archives/edgar/data/217346/000110465915073479/a15-17798_1ex10d2.htm) [File](https://www.sec.gov/Archives/edgar/data/217346/000110465915073479/a15-17798_1ex10d2.htm) [No. 1-5480)](https://www.sec.gov/Archives/edgar/data/217346/000110465915073479/a15-17798_1ex10d2.htm)[.](https://www.sec.gov/Archives/edgar/data/217346/000110465915073479/a15-17798_1ex10d2.htm)] [added: 2015 (SEC File No. 1-5480).](https://www.sec.gov/Archives/edgar/data/217346/000110465915073479/a15-17798_1ex10d2.htm)] | | |

| 10.12B | | | | | | [Amended and Restated Hangar License and Services Agreement, made and entered into on July 24, 2015, between Textron Inc. and Mr. Connor’s limited liability company. Incorporated by reference to Exhibit 10.3 to Textron’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 3, [removed: 2015](https://www.sec.gov/Archives/edgar/data/217346/000110465915073479/a15-17798_1ex10d3.htm) [(SEC] [added: 2015 (SEC] File No. [removed: 1-5480)](https://www.sec.gov/Archives/edgar/data/217346/000110465915073479/a15-17798_1ex10d3.htm)[.](https://www.sec.gov/Archives/edgar/data/217346/000110465915073479/a15-17798_1ex10d3.htm)] [added: 1-5480).](https://www.sec.gov/Archives/edgar/data/217346/000110465915073479/a15-17798_1ex10d3.htm)] | | |

| 10.16 | | | | | | [Director [removed: Compensation.](https://www.sec.gov/Archives/edgar/data/217346/000021734622000005/q4202110k-exx1016.htm)] [added: Compensation.](https://www.sec.gov/Archives/edgar/data/217346/000021734623000006/q4202210k-exx1016.htm)] | | |

| 10.18 | | | | | | [Credit Agreement, dated as of [removed: October 18, 2019,] [added: October](https://www.sec.gov/Archives/edgar/data/217346/000021734622000025/q3202210qex-101.htm) [21](https://www.sec.gov/Archives/edgar/data/217346/000021734622000025/q3202210qex-101.htm)[, 20](https://www.sec.gov/Archives/edgar/data/217346/000021734622000025/q3202210qex-101.htm)[22](https://www.sec.gov/Archives/edgar/data/217346/000021734622000025/q3202210qex-101.htm)[,] among Textron, the Lenders listed therein, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A. and Citibank, N.A., as Syndication Agents, and MUFG Bank, Ltd., as Documentation Agent. Incorporated by reference to Exhibit 10.1 to Textron’s Quarterly Report on Form 10-Q for the fiscal quarter [removed: ended September 28, 2019.](https://www.sec.gov/Archives/edgar/data/217346/000110465919055774/ex-10d1.htm)] [added: ended](https://www.sec.gov/Archives/edgar/data/217346/000021734622000025/q3202210qex-101.htm) [Octobe](https://www.sec.gov/Archives/edgar/data/217346/000021734622000025/q3202210qex-101.htm)[r](https://www.sec.gov/Archives/edgar/data/217346/000021734622000025/q3202210qex-101.htm) [](https://www.sec.gov/Archives/edgar/data/217346/000021734622000025/q3202210qex-101.htm)[1](https://www.sec.gov/Archives/edgar/data/217346/000021734622000025/q3202210qex-101.htm)[, 20](https://www.sec.gov/Archives/edgar/data/217346/000021734622000025/q3202210qex-101.htm)[22](https://www.sec.gov/Archives/edgar/data/217346/000021734622000025/q3202210qex-101.htm)[.](https://www.sec.gov/Archives/edgar/data/217346/000021734622000025/q3202210qex-101.htm)] | | |

| 21 | | | | | | [Certain subsidiaries of Textron. Other subsidiaries, which considered in the aggregate do not constitute a significant subsidiary, are omitted from such [removed: list.](https://www.sec.gov/Archives/edgar/data/217346/000021734622000005/q4202110k-exx21.htm)] [added: list.](https://www.sec.gov/Archives/edgar/data/217346/000021734623000006/q4202210k-exx21.htm)] | | |

| 23 | | | | | | [Consent of Independent Registered Public Accounting [removed: Firm.](https://www.sec.gov/Archives/edgar/data/217346/000021734622000005/q4202110k-exx23.htm)] [added: Firm.](https://www.sec.gov/Archives/edgar/data/217346/000021734623000006/q4202210k-exx23.htm)] | | |

| 24 | | | | | | [Power of [removed: attorney.](https://www.sec.gov/Archives/edgar/data/217346/000021734622000005/q4202110k-exx24.htm)] [added: attorney.](https://www.sec.gov/Archives/edgar/data/217346/000021734623000006/q4202210k-exx24.htm)] | | |

| 31.1 | | | | | | [Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of [removed: 2002.](https://www.sec.gov/Archives/edgar/data/217346/000021734622000005/q4202110k-exx311.htm)] [added: 2002.](https://www.sec.gov/Archives/edgar/data/217346/000021734623000006/q4202210k-exx311.htm)] | | |

| 31.2 | | | | | | [Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of [removed: 2002.](https://www.sec.gov/Archives/edgar/data/217346/000021734622000005/q4202110k-exx312.htm)] [added: 2002.](https://www.sec.gov/Archives/edgar/data/217346/000021734623000006/q4202210k-exx312.htm)] | | |

| 32.1 | | | | | | [Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of [removed: 2002.](https://www.sec.gov/Archives/edgar/data/217346/000021734622000005/q4202110k-exx321.htm)] [added: 2002.](https://www.sec.gov/Archives/edgar/data/217346/000021734623000006/q4202210k-exx321.htm)] | | |

| 32.2 | | | | | | [Certification of Chief Financial Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of [removed: 2002.](https://www.sec.gov/Archives/edgar/data/217346/000021734622000005/q4202110k-exx322.htm)] [added: 2002.](https://www.sec.gov/Archives/edgar/data/217346/000021734623000006/q4202210k-exx322.htm)] | | |

| 101 | | | | | | The following materials from Textron Inc.’s Annual Report on Form 10-K for the year ended [removed: January 1,] [added: December 31,] 2022, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, (vi) the Notes to the Consolidated Financial Statements, and (vii) Schedule II – Valuation and Qualifying Accounts. | | |

Pursuant to the requirement of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized on this [removed: 17th] [added: 16th] day of February [removed: 2022.][added: 2023.]

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below on this [removed: 17th] [added: 16th] day of February [removed: 2022] [added: 2023] by the following persons on behalf of the registrant and in the capacities indicated:

| | | | Richard F. Ambrose | | | | | | Director | | |

| | | | Thomas A. Kennedy | | | | | | Director | | |

| | | | * | | | | | | | | |

| | | | | | | | | | | | |

| | | | Paul E. Gagné | | | | | | Director | | |