| (Dollars in millions, except per share amounts) | 2020 | 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | |
| Revenues1 | ||||||||||
| Textron Aviation | 872 | 747 | 795 | 1,560 | 3,974 | 1,134 | 1,123 | 1,201 | 1,729 | 5,187 |
| Bell | 823 | 822 | 793 | 871 | 3,309 | 739 | 771 | 783 | 961 | 3,254 |
| Textron Systems | 328 | 326 | 302 | 357 | 1,313 | 307 | 308 | 311 | 399 | 1,325 |
| Industrial | 740 | 562 | 832 | 866 | 3,000 | 912 | 1,009 | 950 | 927 | 3,798 |
| Finance | 14 | 15 | 13 | 13 | 55 | 17 | 16 | 14 | 19 | 66 |
| Total Revenues | 2,777 | 2,472 | 2,735 | 3,667 | 11,651 | 3,109 | 3,227 | 3,259 | 4,035 | 13,630 |
| Segment Profit (Loss) | ||||||||||
| Textron Aviation | 3 | (66) | (29) | 108 | 16 | 106 | 105 | 104 | 134 | 449 |
| Bell | 115 | 118 | 119 | 110 | 462 | 104 | 103 | 110 | 118 | 435 |
| Textron Systems | 26 | 37 | 40 | 49 | 152 | 28 | 49 | 31 | 33 | 141 |
| Industrial | 9 | (11) | 58 | 55 | 111 | 50 | 76 | 47 | 44 | 217 |
| Finance | 3 | 4 | 1 | 2 | 10 | 6 | 6 | 5 | 11 | 28 |
| Total Segment Profit | 156 | 82 | 189 | 324 | 751 | 294 | 339 | 297 | 340 | 1,270 |
| Segment Profit (Loss) Margins | ||||||||||
| Textron Aviation | 0.3% | (8.8)% | (3.6)% | 6.9% | 0.4% | 9.3% | 9.4% | 8.7% | 7.8% | 8.7% |
| Bell | 14.0% | 14.4% | 15.0% | 12.6% | 14.0% | 14.1% | 13.4% | 14.0% | 12.3% | 13.4% |
| Textron Systems | 7.9% | 11.3% | 13.2% | 13.7% | 11.6% | 9.1% | 15.9% | 10.0% | 8.3% | 10.6% |
| Industrial | 1.2% | (2.0)% | 7.0% | 6.4% | 3.7% | 5.5% | 7.5% | 4.9% | 4.7% | 5.7% |
| Finance | 21.4% | 26.7% | 7.7% | 15.4% | 18.2% | 35.3% | 37.5% | 35.7% | 57.9% | 42.4% |
| Total Profit Margin | 5.6% | 3.3% | 6.9% | 8.8% | 6.4% | 9.5% | 10.5% | 9.1% | 8.4% | 9.3% |
| Corporate expenses and other, net | (14) | (30) | (28) | (50) | (122) | (47) | (24) | (17) | (22) | (110) |
| Interest expense, net for the Manufacturing Group | (34) | (37) | (38) | (36) | (145) | (35) | (36) | (39) | (36) | (146) |
| Special charges2 | (39) | (78) | (7) | (23) | (147) | — | — | — | (72) | (72) |
| Inventory charge3 | — | (55) | — | — | (55) | — | — | — | — | — |
| Income tax (expense) benefit | (19) | 26 | (1) | 21 | 27 | (33) | (62) | (21) | (11) | (127) |
| Net income (loss)—GAAP | 50 | (92) | 115 | 236 | 309 | 179 | 217 | 220 | 199 | 815 |
| Special charges, net of taxes | 30 | 67 | 6 | 16 | 119 | — | — | — | 55 | 55 |
| Inventory charge, net of tax | — | 55 | — | — | 55 | — | — | — | — | — |
| Tax benefit—TRU assets held for sale | — | — | — | (8) | (8) | — | — | — | — | — |
| Adjusted net income—Non-GAAP4 | 80 | 30 | 121 | 244 | 475 | 179 | 217 | 220 | 254 | 870 |
| Diluted EPS—GAAP | 0.22 | (0.40) | 0.50 | 1.03 | 1.35 | 0.76 | 0.93 | 0.95 | 0.87 | 3.50 |
| Special charges, net of tax | 0.13 | 0.29 | 0.03 | 0.07 | 0.52 | — | — | — | — | — |
| Inventory charge, net of tax | — | 0.24 | — | — | 0.24 | — | — | — | 0.24 | 0.24 |
| Tax benefit—TRU assets held for sale | — | — | — | (0.04) | (0.04) | — | — | — | — | — |
| Adjusted Diluted EPS—Non-GAAP4 | 0.35 | 0.13 | 0.53 | 1.06 | 2.07 | 0.76 | 0.93 | 0.95 | 1.11 | 3.74 |
| 1 | At the beginning of 2018, we adopted ASC 606 using a modified retrospective basis and as a result, the comparative information has not been restated and is reported under the accounting standards in effect for these years. |
| 2 | In 2020, special charges included $108 million recorded under a restructuring plan, primarily impacting the TRU Simulation + Training (TRU) business within the Textron Systems segment, and the Textron Aviation and Industrial segments, and $39 million of charges related to the impairment of indefinite-lived trade name intangible assets, primarily in the Textron Aviation segment. In 2019, $72 million was recorded under a restructuring plan principally impacting the Industrial and Textron Aviation segments. In 2018, $73 million was recorded under a restructuring plan for the Specialized Vehicles businesses within our Industrial segment. In 2017 and 2016, special charges included $90 million and $123 million, respectively, related to our 2016 restructuring plan and $40 million in 2017, for a restructuring plan related to the Arctic Cat acquisition. |
| 3 | In connection with the 2020 restructuring plan, we ceased manufacturing at TRU’s facility in Montreal, Canada, resulting in the production suspension of its commercial air transport simulators. As a result of market conditions and the cessation of manufacturing at this facility, we incurred a $55 million charge to write-down the related inventory to its net realizable value. |
| 4 | Adjusted net income and adjusted diluted earnings per share exclude special charges, net of tax, and an inventory charge, net of tax and a tax benefit both related to TRU Simulation + Training Canada Inc. (TRU Canada) in connection with the restructuring plan and disposition of this company. We consider items recorded in special charges, such as enterprise-wide restructuring, certain asset impairment charges, and acquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative of ongoing operations. At TRU Canada, the inventory charge is excluded as it relates to the write-down of inventory in connection with an action taken under the restructuring plan described above. In the fourth quarter of 2020, we reached a definitive agreement to sell TRU Canada, which resulted in the recognition of an $8 million tax benefit. We believe this inventory charge and tax benefit are of a non-recurring nature and are not indicative of ongoing operations. |