Textron Inc. Discloses Exit Costs and Impairments

TL;DR

Textron's filing shows they're taking hits on exits/impairments - watch earnings.

AI Summary

On December 18, 2024, Textron Inc. filed an 8-K report detailing cost-associated exit or disposal activities, material impairments, and other events. The filing indicates potential financial impacts related to these activities, though specific dollar amounts and the nature of the impairments are not detailed in this initial report.

Why It Matters

This filing signals potential restructuring or asset write-downs by Textron, which could impact future earnings and investor outlook.

Risk Assessment

Risk Level: medium — The filing indicates potential financial charges related to disposal activities and impairments, which could negatively affect the company's financial performance.

Key Players & Entities

• TEXTRON INC. (company) — Registrant
• Delaware (jurisdiction) — State of Incorporation
• 40 Westminster Street (address) — Principal executive offices
• Providence (location) — City of principal executive offices
• Rhode Island (location) — State of principal executive offices
• 02903 (zip_code) — ZIP code of principal executive offices
• ( 401 ) 421-2800 (phone_number) — Registrant's telephone number

FAQ

Key Financial Figures

• $0.125 — ch registered Common Stock – par value $0.125 TXT New York Stock Exchange Indicate
• $165 million — from the previously announced range of $165 million to $170 million to a range of $190 mill
• $170 million — usly announced range of $165 million to $170 million to a range of $190 million to $205 mill
• $190 million — 5 million to $170 million to a range of $190 million to $205 million. The increased charges
• $205 million — 0 million to a range of $190 million to $205 million. The increased charges of $25 million t
• $25 million — $205 million. The increased charges of $25 million to $35 million are related to contract
• $35 million — The increased charges of $25 million to $35 million are related to contract termination cos
• $30 million — entory valuation charge in the range of $30 million to $40 million to write down production
• $40 million — n charge in the range of $30 million to $40 million to write down production-related powers
• $0.12 — ngs per share for 2024 by approximately $0.12 to $0.16. SIGNATURES Pursuant to the
• $0.16 — hare for 2024 by approximately $0.12 to $0.16. SIGNATURES Pursuant to the requirem

Filing Documents

• txt-20241218.htm (8-K) — 22KB
• 0000217346-24-000094.txt ( ) — 141KB
• txt-20241218.xsd (EX-101.SCH) — 2KB
• txt-20241218_lab.xml (EX-101.LAB) — 21KB
• txt-20241218_pre.xml (EX-101.PRE) — 12KB
• txt-20241218_htm.xml (XML) — 3KB

05 Cost Associated with Exit or Disposal Activities

Item 2.05 Cost Associated with Exit or Disposal Activities

06 Material Impairments

Item 2.06 Material Impairments

01 Other Events

Item 8.01 Other Events Textron Inc. is pursuing strategic alternatives for its Powersports product line within the Industrial segment's Textron Specialized Vehicles (TSV) business. The consumer end market demand for powersports products continues to remain soft. As a result, and in conjunction with its annual operating plan process, TSV has begun to pause production of its powersports products as Textron's management reviews strategic alternatives for the business. Upon completion of limited production runs to satisfy customer commitments, production of TSV's powersports products will be paused indefinitely in the first half of 2025. As a result of these developments, on December 18, 2024, Textron management approved additional actions at the Industrial segment under Textron's 2023 restructuring plan. Total pretax special charges related to the 2023 restructuring plan are now expected to increase from the previously announced range of $165 million to $170 million to a range of $190 million to $205 million. The increased charges of $25 million to $35 million are related to contract termination costs associated with the powersports production pause. These charges will be recorded in the fourth quarter of 2024, with additional cash outlays of $25 million to $35 million expected primarily in the first half of 2025. We expect the plan to be substantially completed in the first half of 2025. In addition, due to the indefinite production pause, the Company expects to incur an inventory valuation charge in the range of $30 million to $40 million to write down production-related powersports inventory to its net realizable value.

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure The inventory valuation charge discussed above is expected to reduce Adjusted earnings per share for 2024 by approximately $0.12 to $0.16.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. TEXTRON INC. (Registrant) By: /s/Mark S. Bamford Mark S. Bamford Vice President and Corporate Controller Date: December 18, 2024