Special Charges

6 Months Ended

Jun. 29, 2024

Restructuring and Related Activities [Abstract]

On April 24, 2024, the Board of Directors approved the expansion of Textron’s 2023 restructuring plan to further reduce operating expenses through headcount reductions. In the first quarter of 2024, both the Shadow and Future Attack Reconnaissance Aircraft programs were cancelled at the Textron Systems and Bell segments, resulting in additional severance costs under the restructuring plan. Additionally, we increased our planned headcount reduction within the Industrial segment due to lower anticipated consumer demand for certain products at the Specialized Vehicles product line and reduced demand for fuel systems from European automotive manufacturers at Kautex.

In connection with this plan, special charges totaled $13 million in the second quarter of 2024, related to headcount reductions at the Industrial segment. In the first half of 2024, special charges totaled $27 million, which included $26 million in severance costs and $1 million in asset impairment charges; we recorded $15 million of these charges at the Industrial segment, $7 million at the Textron Systems segment and $5 million at the Bell segment. We expect to incur additional special charges in the second half of 2024 in the range of $12 million to $17 million, largely related to headcount reductions at the Industrial segment.

Since inception of the 2023 restructuring plan, we have incurred $153 million in special charges, including severance costs of $65 million, which included $35 million at the Industrial segment, $18 million at the Bell segment and $12 million at the Textron Systems segment; and asset impairment charges of $88 million at the Industrial segment.

Headcount reductions since inception of the plan are expected to total approximately 1,500 positions, representing 4% of our global workforce. We estimate that remaining future cash outlays under this plan will be in the range of $50 million to $55 million, most of which we expect to pay in 2024. We expect charges under this plan to be substantially completed by the end of 2024.

Our restructuring reserve activity is summarized below:


(In millions)	Severance Costs		Contract Terminations and Other		Total
Balance at December 30, 2023	$	42	$	5	$	47
Provision for 2023 Restructuring Plan	26		—		26
Cash paid	(29)		—		(29)

Foreign currency translation	(1)		—		(1)
Balance at June 29, 2024	$	38	$	5	$	43