10-Q 1 txt-20220402.htm 10-Q txt-20220402
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 2, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______.
Commission File Number 1-5480
Textron Inc.
(Exact name of registrant as specified in its charter)
Delaware05-0315468
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
40 Westminster Street, Providence, RI
02903
(Address of principal executive offices)(Zip code)
(401) 421-2800
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol (s)Name of each exchange on which registered
Common stock, $0.125 par valueTXT
New York Stock Exchange (NYSE)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check one):
Large accelerated filerþAccelerated filerNon-accelerated filer
Smaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No þ
As of April 15, 2022, there were 215,083,317 shares of common stock outstanding.


TEXTRON INC.
Index to Form 10-Q
For the Quarterly Period Ended April 2, 2022

    
Page
2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

TEXTRON INC.
Consolidated Statements of Operations (Unaudited)
Three Months Ended
(In millions, except per share amounts)April 2,
2022
April 3,
2021
Revenues
Manufacturing product revenues$2,448 $2,403 
Manufacturing service revenues537 461 
Finance revenues16 15 
Total revenues3,001 2,879 
Costs, expenses and other
Cost of products sold2,069 2,061 
Cost of services sold423 339 
Selling and administrative expense305 298 
Interest expense33 40 
Non-service components of pension and postretirement income, net(61)(40)
Special charges 6 
Gain on business disposition (15)
Total costs, expenses and other2,769 2,689 
Income before income taxes232 190 
Income tax expense39 19 
Net income$193 $171 
Earnings per share
Basic$0.89 $0.75 
Diluted$0.88 $0.75 
See Notes to the Consolidated Financial Statements.
3

TEXTRON INC.
Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended
(In millions)April 2,
2022
April 3,
2021
Net income$193 $171 
Other comprehensive income, net of tax
Pension and postretirement benefits adjustments, net of reclassifications17 30 
Foreign currency translation adjustments, net of reclassifications(14)(18)
Deferred gains on hedge contracts, net of reclassifications7 4 
Other comprehensive income10 16 
Comprehensive income$203 $187 
See Notes to the Consolidated Financial Statements.
4

TEXTRON INC.
Consolidated Balance Sheets (Unaudited)
(Dollars in millions)April 2,
2022
January 1,
2022
Assets
Manufacturing group
Cash and equivalents$1,978 $1,922 
Accounts receivable, net800 838 
Inventories3,663 3,468 
Other current assets1,055 1,018 
Total current assets7,496 7,246 
Property, plant and equipment, less accumulated depreciation
   and amortization of $4,914 and $4,888, respectively
2,488 2,538 
Goodwill2,147 2,149 
Other assets3,025 3,027 
Total Manufacturing group assets15,156 14,960 
Finance group
Cash and equivalents148 195 
Finance receivables, net578 605 
Other assets29 67 
Total Finance group assets755 867 
Total assets$15,911 $15,827 
Liabilities and shareholders’ equity
Liabilities
Manufacturing group
Current portion of long-term debt$7 $6 
Accounts payable823 786 
Other current liabilities2,507 2,344 
Total current liabilities3,337 3,136 
Other liabilities1,912 2,005 
Long-term debt3,178 3,179 
Total Manufacturing group liabilities8,427 8,320 
Finance group
Other liabilities97 110 
Debt470 582 
Total Finance group liabilities567 692 
Total liabilities8,994 9,012 
Shareholders’ equity
Common stock28 28 
Capital surplus1,924 1,863 
Treasury stock(314)(157)
Retained earnings6,058 5,870 
Accumulated other comprehensive loss(779)(789)
Total shareholders’ equity6,917 6,815 
Total liabilities and shareholders’ equity$15,911 $15,827 
Common shares outstanding (in thousands)215,751 216,935 
See Notes to the Consolidated Financial Statements.
5

TEXTRON INC.
Consolidated Statements of Cash Flows (Unaudited)
For the Three Months Ended April 2, 2022 and April 3, 2021, respectively
Consolidated
(In millions)20222021
Cash flows from operating activities
Net income$193 $171 
Adjustments to reconcile net income to net cash provided by operating activities:
Non-cash items:
Depreciation and amortization93 90 
Deferred income taxes(52)11 
Gain on business disposition (15)
Other, net36 38 
Changes in assets and liabilities:
Accounts receivable, net37 (103)
Inventories(176)(178)
Other assets(4)(17)
Accounts payable38 259 
Other liabilities26 (105)
Income taxes, net71 (11)
Pension, net(41)(23)
Captive finance receivables, net18 69 
Other operating activities, net2 (5)
Net cash provided by operating activities241 181 
Cash flows from investing activities
Capital expenditures(48)(53)
Proceeds from sale of property, plant and equipment18  
Net proceeds from business disposition 39 
Finance receivables repaid13 13 
Other investing activities, net45 6 
Net cash provided by investing activities28 5 
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt(121)(287)
Purchases of Textron common stock(157)(91)
Dividends paid(5)(5)
Proceeds from options exercised28 27 
Other financing activities, net(3)(3)
Net cash used in financing activities(258)(359)
Effect of exchange rate changes on cash and equivalents(2)(3)
Net increase (decrease) in cash and equivalents9 (176)
Cash and equivalents at beginning of period2,117 2,254 
Cash and equivalents at end of period$2,126 $2,078 
See Notes to the Consolidated Financial Statements.
6


TEXTRON INC.
Consolidated Statements of Cash Flows (Unaudited) (Continued)
For the Three Months Ended April 2, 2022 and April 3, 2021, respectively

Manufacturing GroupFinance Group
(In millions)2022202120222021
Cash flows from operating activities
Net income (loss)$185 $177 $8 $(6)
Adjustments to reconcile net income (loss) to net cash
   provided by (used in) operating activities:
Non-cash items:
Depreciation and amortization93 88  2 
Deferred income taxes(45)11 (7) 
Gain on business disposition (15)  
Other, net37 39 (1)(1)
Changes in assets and liabilities:
Accounts receivable, net37 (103)  
Inventories(176)(178)  
Other assets(4)(17)  
Accounts payable38 259   
Other liabilities37 (103)(11)(2)
Income taxes, net62 (23)9 12 
Pension, net(41)(23)  
Other operating activities, net2 (5)  
Net cash provided by (used in) operating activities225 107 (2)5 
Cash flows from investing activities
Capital expenditures(48)(53)  
Proceeds from sale of property, plant and equipment18    
Net proceeds from business disposition 39   
Finance receivables repaid  40 89 
Finance receivables originated  (9)(7)
Other investing activities, net2  43 6 
Net cash provided by (used in) investing activities(28)(14)74 88 
Cash flows from financing activities
Principal payments on long-term debt and nonrecourse debt(2)(267)(119)(20)
Purchases of Textron common stock(157)(91)  
Dividends paid(5)(5)  
Proceeds from options exercised28 27   
Other financing activities, net(3)(3)  
Net cash used in financing activities(139)(339)(119)(20)
Effect of exchange rate changes on cash and equivalents(2)(3)  
Net increase (decrease) in cash and equivalents56 (249)(47)73 
Cash and equivalents at beginning of period1,922 2,146 195 108 
Cash and equivalents at end of period$1,978 $1,897 $148 $181 
See Notes to the Consolidated Financial Statements.
7


TEXTRON INC.
Notes to the Consolidated Financial Statements (Unaudited)

Note 1. Basis of Presentation
Our Consolidated Financial Statements include the accounts of Textron Inc. (Textron) and its majority-owned subsidiaries.  We have prepared these unaudited consolidated financial statements in accordance with accounting principles generally accepted in the U.S. for interim financial information.  Accordingly, these interim financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements.  The consolidated interim financial statements included in this quarterly report should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 1, 2022.  In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.
Our financings are conducted through two separate borrowing groups.  The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems and Industrial segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance.  To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.  All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group.
Use of Estimates
We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements.  Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined.
Contract Estimates
For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period.  Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable.  
In the first quarter of 2022, our cumulative catch-up adjustments decreased segment profit by $17 million and net income by $13 million, $0.06 per diluted share. In the first quarter of 2021, our cumulative catch-up adjustments increased segment profit by $14 million and net income by $11 million, $0.05 per diluted share. Gross favorable profit adjustments totaled $16 million and $36 million in the first quarter of 2022 and 2021, respectively, and gross unfavorable profit adjustments totaled $33 million and $22 million, respectively. We reduced revenues by $12 million and recognized revenues of $18 million in the first quarter of 2022 and 2021, respectively, from performance obligations satisfied in prior periods that related to changes in profit booking rates.
Note 2. Business Acquisition
On April 15, 2022, we acquired Pipistrel, a manufacturer of electrically powered aircraft, for a cash purchase price of approximately $240 million. Beginning with the second quarter of 2022, this business will be included in a new reporting segment, Textron eAviation, which will be focused on the development of sustainable aircraft.


8

Note 3. Accounts Receivable and Finance Receivables
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)April 2,
2022
January 1,
2022
Commercial$711 $704 
U.S. Government contracts115 158 
826 862 
Allowance for credit losses(26)(24)
Total accounts receivable, net$800 $838 
Finance Receivables
Finance receivables are presented in the following table:
(In millions)April 2,
2022
January 1,
2022
Finance receivables$603 $630 
Allowance for credit losses(25)(25)
Total finance receivables, net$578 $605 
Finance Receivable Portfolio Quality
We internally assess the quality of our finance receivables based on a number of key credit quality indicators and statistics such as delinquency, loan balance to estimated collateral value and the financial strength of individual borrowers and guarantors.  Because many of these indicators are difficult to apply across an entire class of receivables, we evaluate individual loans on a quarterly basis and classify these loans into three categories based on the key credit quality indicators for the individual loan. These three categories are performing, watchlist and nonaccrual.
We classify finance receivables as nonaccrual if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically classify accounts as nonaccrual once they are contractually delinquent by more than three months unless collection of principal and interest is not doubtful. Accounts are classified as watchlist when credit quality indicators have deteriorated as compared with typical underwriting criteria, and we believe collection of full principal and interest is probable but not certain. All other finance receivables that do not meet the watchlist or nonaccrual categories are classified as performing.
We measure delinquency based on the contractual payment terms of our finance receivables.  In determining the delinquency aging category of an account, any/all principal and interest received is applied to the most past-due principal and/or interest amounts due. If a significant portion of the contractually due payment is delinquent, the entire finance receivable balance is reported in accordance with the most past-due delinquency aging category.
Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:
(Dollars in millions)April 2,
2022
January 1,
2022
Performing$526$536
Nonaccrual7794
Nonaccrual as a percentage of finance receivables12.77%14.92%
Current and less than 31 days past due$599$624
31-60 days past due25
61-90 days past due2
Over 90 days past due1
60+ days contractual delinquency as a percentage of finance receivables0.33%0.16%
At April 2, 2022, 39% of our performing finance receivables were originated since the beginning of 2020 and 27% were originated from 2017 to 2019. For finance receivables categorized as nonaccrual, 71% were originated from 2017 to 2019.
9

On a quarterly basis, we evaluate individual larger balance accounts for impairment. A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality indicators described above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of principal and interest remains probable, but the account’s original terms have been, or are expected to be, significantly modified. If the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification.
A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles.
(In millions)April 2,
2022
January 1,
2022
Finance receivables evaluated collectively$436 $441 
Finance receivables evaluated individually77 94 
Allowance for credit losses based on collective evaluation21 21 
Allowance for credit losses based on individual evaluation4 4 
Impaired finance receivables with specific allowance for credit losses$27 $33 
Impaired finance receivables with no specific allowance for credit losses50 61 
Unpaid principal balance of impaired finance receivables92 109 
Allowance for credit losses on impaired finance receivables4 4 
Average recorded investment of impaired finance receivables85 117 
Note 4. Inventories
Inventories are composed of the following:
(In millions)April 2,
2022
January 1,
2022
Finished goods$1,100 $1,071 
Work in process1,686 1,548 
Raw materials and components877 849 
Total inventories$3,663 $3,468 
Note 5. Warranty Liability
Changes in our warranty liability are as follows:
Three Months Ended
(In millions)April 2,
2022
April 3,
2021
Beginning of period$127 $119 
Provision16 14 
Settlements(19)(20)
Adjustments*6 3 
End of period$130 $116 
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.

Note 6. Leases
We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide through operating leases. Our operating leases have remaining lease terms up to 27 years, which include options to extend the lease term for periods up to 25 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $17 million and $16 million in the first quarter of 2022 and 2021, respectively. Variable and short-term lease costs were not significant. Cash paid for operating leases totaled $17 million and $16 million in the first quarter of 2022 and 2021, respectively, and is classified in cash flows from operating activities. Noncash transactions totaled $7 million and $45 million in the first quarter of 2022 and 2021, respectively, reflecting the recognition of operating lease assets and liabilities for new or extended leases.
10

Balance sheet and other information related to our operating leases is as follows:
(Dollars in millions)April 2,
2022
January 1,
2022
Other assets$367$374
Other current liabilities5656
Other liabilities317325
Weighted-average remaining lease term (in years)10.310.5
Weighted-average discount rate3.18%3.19%
At April 2, 2022, maturities of our operating lease liabilities on an undiscounted basis totaled $52 million for the remainder of 2022, $62 million for 2023, $53 million for 2024, $46 million for 2025, $35 million for 2026 and $216 million thereafter.
Note 7. Derivative Instruments and Fair Value Measurements
We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  We prioritize the assumptions that market participants would use in pricing the asset or liability into a three-tier fair value hierarchy. This fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs in which little or no market data exist, requiring companies to develop their own assumptions.  Observable inputs that do not meet the criteria of Level 1, which include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets and liabilities in markets that are not active, are categorized as Level 2.  Level 3 inputs are those that reflect our estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances.  Valuation techniques for assets and liabilities measured using Level 3 inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data.  These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain.
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
We manufacture and sell our products in a number of countries throughout the world, and, therefore, we are exposed to movements in foreign currency exchange rates.  We primarily utilize foreign currency exchange contracts with maturities of no more than three years to manage this volatility.  These contracts qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales, inventory purchases and overhead expenses. Net gains and losses recognized in earnings and Accumulated other comprehensive loss on cash flow hedges, including gains and losses related to hedge ineffectiveness, were not significant in the periods presented.
Our foreign currency exchange contracts are measured at fair value using the market method valuation technique.  The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers. These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2.  At April 2, 2022 and January 1, 2022, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $345 million and $272 million, respectively. At April 2, 2022, the fair value amounts of our foreign currency exchange contracts were a $7 million asset and a $2 million liability. At January 1, 2022, the fair value amounts of our foreign currency exchange contracts were a $4 million asset and a $3 million liability.
Our Finance group enters into interest rate swap agreements to mitigate certain exposures to fluctuations in interest rates. By using these contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. At April 2, 2022, we had a swap agreement for a notional amount of $280 million with a maturity of August 2023 and a fair value of a $5 million asset. At January 1, 2022, we had a swap agreement for a notional amount of $289 million with a maturity of August 2023 and an insignificant fair value. The fair value of these swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2.
11

Assets and Liabilities Not Recorded at Fair Value
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
April 2, 2022January 1, 2022
CarryingEstimatedCarryingEstimated
(In millions)ValueFair ValueValueFair Value
Manufacturing group
Debt, excluding leases$(3,180)$(3,118)$(3,181)$(3,346)
Finance group
Finance receivables, excluding leases394 400 413 444 
Debt(470)(414)(582)(546)
Fair value for the Manufacturing group debt is determined using market observable data for similar transactions (Level 2).  The fair value for the Finance group debt was determined primarily based on discounted cash flow analyses using observable market inputs from debt with similar duration, subordination and credit default expectations (Level 2). Fair value estimates for finance receivables were determined based on internally developed discounted cash flow models primarily utilizing significant unobservable inputs (Level 3), which include estimates of the rate of return, financing cost, capital structure and/or discount rate expectations of current market participants combined with estimated loan cash flows based on credit losses, payment rates and expectations of borrowers’ ability to make payments on a timely basis.
Note 8. Shareholders’ Equity
A reconciliation of Shareholders’ equity is presented below:
(In millions)Common
Stock
Capital
Surplus
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Shareholders'
Equity
Three months ended April 2, 2022
Beginning of period$28 $1,863 $(157)$5,870 $(789)$6,815 
Net income— — — 193 — 193 
Other comprehensive income— — — — 10 10 
Share-based compensation activity— 61 — — — 61 
Dividends declared— — — (5)— (5)
Purchases of common stock— — (157)— — (157)
End of period$28 $1,924 $(314)$6,058 $(779)$6,917 
Three months ended April 3, 2021
Beginning of period$29 $1,785 $(203)$5,973 $(1,739)$5,845 
Net income— — — 171 — 171 
Other comprehensive income— — — — 16 16 
Share-based compensation activity— 60 — — — 60 
Dividends declared— — — (5)— (5)
Purchases of common stock— — (91)— — (91)
End of period$29 $1,845 $(294)$6,139 $(1,723)$5,996 
Dividends per share of common stock were $0.02 for both the first quarter of 2022 and 2021.
Earnings Per Share
We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period.  Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options.  
12

The weighted-average shares outstanding for basic and diluted EPS are as follows:
Three Months Ended
(In thousands)April 2,
2022
April 3,
2021
Basic weighted-average shares outstanding217,010 227,009 
Dilutive effect of stock options2,597 1,275 
Diluted weighted-average shares outstanding219,607 228,284 
Stock options to purchase 1.0 million and 4.3 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for the first quarter of 2022 and 2021, respectively, as their effect would have been anti-dilutive.
Accumulated Other Comprehensive Loss and Other Comprehensive Income
The components of Accumulated other comprehensive loss are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments
Foreign
Currency
Translation
Adjustments
Deferred
Gains (Losses)
on Hedge
Contracts
Accumulated
Other
Comprehensive
Loss
Balance at January 1, 2022$(799)$9 $1 $(789)
Other comprehensive loss before reclassifications (14)7 (7)
Reclassified from Accumulated other comprehensive loss17   17 
Balance at April 2, 2022$(782)$(5)$8 $(779)
Balance at January 2, 2021$(1,780)$42 $(1)$(1,739)
Other comprehensive loss before reclassifications (32)4 (28)
Reclassified from Accumulated other comprehensive loss30 14  44 
Balance at April 3, 2021$(1,750)$24 $3 $(1,723)
The before and after-tax components of Other comprehensive income are presented below:
April 2, 2022April 3, 2021
(In millions)Pre-Tax
Amount
Tax
(Expense)
Benefit
After-tax
Amount
Pre-Tax
Amount
Tax
(Expense)
Benefit
After-tax
Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial loss*$21 $(5)$16 $38 $(9)$29 
Amortization of prior service cost*2 (1)1 2 (1)1 
Pension and postretirement benefits adjustments, net23 (6)17 40 (10)30 
Foreign currency translation adjustments:
Foreign currency translation adjustments(14) (14)(32) (32)
Business disposition   14  14 
Foreign currency translation adjustments, net(14) (14)(18) (18)
Deferred gains on hedge contracts:
Current deferrals10 (3)7 5 (1)4 
Deferred gains on hedge contracts, net10 (3)7 5 (1)4 
Total$19 $(9)$10 $27 $(11)$16 
*These components of other comprehensive income are included in the computation of net periodic pension cost (income). See Note 15 of our 2021 Annual Report on Form 10-K for additional information.

13

Note 9. Segment Information
We operate in, and report financial information for, the following five business segments: Textron Aviation, Bell, Textron Systems, Industrial and Finance. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes interest expense, certain corporate expenses, gains/losses on major business dispositions and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.
Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below:
Three Months Ended
(In millions)April 2,
2022
April 3,
2021
Revenues
Textron Aviation$1,040 $865 
Bell834 846 
Textron Systems273 328 
Industrial838 825 
Finance16 15 
Total revenues$3,001 $2,879 
Segment Profit
Textron Aviation$121 $47 
Bell98 105 
Textron Systems33 51 
Industrial43 47 
Finance9 6 
Segment profit304 256 
Corporate expenses and other, net(44)(40)
Interest expense, net for Manufacturing group(28)(35)
Special charges (6)
Gain on business disposition 15 
Income before income taxes$232 $190 
Note 10. Revenues
Disaggregation of Revenues
Our revenues disaggregated by major product type are presented below:
Three Months Ended
(In millions)April 2,
2022
April 3,
2021
Aircraft$646 $535 
Aftermarket parts and services394 330 
Textron Aviation1,040 865 
Military aircraft and support programs597 577 
Commercial helicopters, parts and services237 269 
Bell834 846 
Textron Systems273 328 
Fuel systems and functional components464 497 
Specialized vehicles374 328 
Industrial838 825 
Finance16 15 
Total revenues$3,001 $2,879 
14

Our revenues for our segments by customer type and geographic location are presented below:
(In millions)Textron
Aviation
BellTextron
Systems
IndustrialFinanceTotal
Three months ended April 2, 2022
Customer type:
Commercial$1,021 $234 $19 $835 $16 $2,125 
U.S. Government19 600 254 3  876 
Total revenues$1,040 $834 $273 $838 $16 $3,001 
Geographic location:
United States$732 $670 $246 $426 $5 $2,079 
Europe119 28 8 190 1 346 
Other international189 136 19 222 10 576 
Total revenues$1,040