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Textron Systems was also awarded acontract to support work on the U.S.Air Force’s Ground Based StrategicDeterrent (GBSD) missile system, underprime contractor Northrop Grumman.The GBSD is intended to serve as acornerstone of the nation’s nuclear triadand to provide a reliable nuclear deterrent.Textron Aviation delivered its firstBeechcraft AT-6 Wolverine to the Air Force.This multi-mission aircraft is designed tomeet a wide-mission spectrum includingtraining, manned Intelligence Surveillanceand Reconnaissance (ISR), and lightprecision attack. As government, militaryand commercial customers look forairborne solutions for critical missions,Textron Aviation’s special missions anddefense business is well positioned tomeet their needs.MOVING FORWARD ON NEWPRODUCT PROGRAMSIn May, Textron Aviation’s CessnaSkyCourier, the new clean-sheet twinengine, large-utility turboprop aircraft,made its first flight. By the end of theyear, there were three test articles in thecertification program with more than 400flight hours completed. The SkyCourieris on track for entry into service in thesecond half of 2021.Demonstrating our commitment torefreshing our product lineup, TextronAviation also brought innovation to itsiconic Beechcraft King Air turbopropproduct line with the introduction of twoaircraft: the King Air 360, its updatedflagship turboprop, and the King Air260, which builds on the platform’s richhistory of rugged reliability and versatility.Both aircraft offer the latest technologicaladvancements in the cockpit andenhancements to passenger comfort.Textron Aviation began deliveries of theKing Air 360 during the fourth quarter,delivering eight units.4TEXTRON 2020 ANNUAL REPORTBell completed several key certificationactivities with the Bell 525 Relentlessas it moves closer to becoming thefirst certified commercial fly-by-wirehelicopter in the market. As Bell’s largestcommercial product, the Bell 525 featuresbest-in-class design, offers exceptionalvisibility and superior payload and rangecapabilities for customers.For the third consecutive year, a Bellinnovation was named one of PopularScience’s Best of What’s New in theAerospace category. For 2020, Bell’sElectrically Distributed Anti-Torque(EDAT) system was recognized.EDAT is comprised of four small fanselectrically powered by four separatemotors that replace a conventional tailrotor, enhancing on-the-ground safetyand reducing noise pollution, carbonemissions and operating costs.In addition to EDAT, Textron Systems’RIPSAW M5 unmanned ground vehiclewas also recognized by Popular Sciencein the Security category. The RIPSAW M5features an open architecture, giving theArmy a highly configurable and leadingunmanned ground system. With variantsthat include hybrid-electric and all-electricpowertrains, the RIPSAW M5 providesthe Army with extreme mobility and speedfor multiple missions. The M5 deliversfull mobility using its powerful electricdrivetrain and can extend run-time witha modular range extender in the hybridelectric variant. This vehicle keeps soldierssafe by providing an unmanned systemto undertake the most hazardous andstrenuous missions.As Textron Systems supports the Armywith Shadow unmanned aircraft in thelatest Block III configuration, the teamis leveraging its more than 30 years ofunmanned systems experience withthe Aerosonde Hybrid Quad (HQ) forthe Army’s Future Tactical UnmannedJULYATAC SELECTED TO PROVIDEADVERSARY AIR LIVE TRAININGFOR TWO AIR FORCE BASES USINGRECENTLY ACQUIRED FLEET OFMIRAGE F1 AIRCRAFTAUGUSTTEXTRON AVIATION INTRODUCESNEW BEECHCRAFT KING AIR 360,REPRESENTING NEXT GENERATIONOF BEECHCRAFT’S FLAGSHIPTURBOPROP AIRCRAFTSEPTEMBERBELL APT 70 SUCCESSFULLYCOMPLETES JOINT FLIGHTDEMONSTRATION WITH NASA

OCTOBERTUG UNVEILS NEW ALPHA 1AIRCRAFT PUSHBACKNOVEMBERAEROSONDE SMALL UNMANNEDAIRCRAFT SYSTEM (SUAS) ACHIEVES500,000 FLIGHT HOURSDECEMBERBEECHCRAFT KING AIR 260TURBOPROP INTRODUCED,OFFERING STATE-OF-THE-ARTUPGRADES AND NEXT-GENERATIONCAPABILITYSystems (FTUAS) program. In 2019,the Army selected Textron Systems toparticipate in Phase 1 of the FTUASprogram. Over the past year, TextronSystems has continued flight testing asit competes for this program to protecttomorrow’s warfighters.TSV focused on new productdevelopment, particularly leveragingelectric technology and connectedvehicle experiences for its products.Building on the success pioneered ingolf by E-Z-GO’s ELiTE series of lithiumpowered golf cars, TSV launched aJacobsen Eclipse 360 ELiTE ridinggreens mower, a fully electric machine.Powered by an energy-efficient,zero-maintenance battery system, theEclipse 360 ELiTE performs silentlyand provides course operators withsignificant operational savings.As a recognized leader in hybrid fuelsystems solutions, Kautex has asolid understanding of its automotivecustomers’ current and futurerequirements. During the year, Kautexwon contracts with major OEMs for itsfuel systems while continuing its focuson innovation, particularly around thetechnologies for hybrid fuel systems,electric and hybrid-electric batterysystems and sensor cleaning solutionsfor autonomous driving technologies.DELIVERING ON CUSTOMERSERVICE AND SUPPORTAs we continued to move forwardwith our products and technologies,we kept our focus on strengtheningour customer service and support.During the year, we acquired ZhenjiangAerochine Aviation Limited to increaseBell’s helicopter maintenance, repairand overhaul capabilities in China andalso opened three Bell AuthorizedMaintenance Centers in Europe forour rotorcraft customers. Meanwhile,Textron Aviation’s acquisition ofPremiair Aviation Maintenance Pty Ltd.in Australia strengthened and expandedsupport for our Beechcraft, Cessna andHawker customers.To ensure we’re building a pipelineof future customers, Textron Aviationcontinued to partner with leading pilottraining programs through its Top Hawkinitiative. This initiative provides trainingprograms and universities across thecountry with a factory-new, custombranded Cessna Skyhawk aircraft forstudent pilot training and to promotepilot training at air shows, aviationcontests and recruiting events. This isan opportunity to introduce the nextgeneration of pilots to our products.WELL POSITIONED FOR GROWTH2020 was a challenging year for ouremployees, personally and professionally.I am proud of the way our teamsresponded. While we dealt with significantoperational disruptions, we continuedto support our customers throughoutthe pandemic and responded to bothdramatic reductions and increasesto customer demand over the courseof the year. Our teams also achievedcritical milestones on the programs andproduct development efforts that areimportant to our future growth.As we enter 2021, we take a pragmaticapproach to the challenges that mayremain but are confident that ourteams will deliver for our customerstoday while continuing to execute onour growth strategies for tomorrow.SCOTT C. DONNELLYChairman and Chief Executive OfficerTEXTRON 2020 ANNUAL REPORT5

LEADERSHIPBOARD OF DIRECTORSScott C. Donnelly (1)Chairman, President and CEOTextron Inc.Kathleen M. Bader (2) (3)President and CEO (Retired)NatureWorks LLCR. Kerry Clark(1) (2)Chairman and CEO (Retired)Cardinal Health, Inc.James T. Conway (1) (3)Paul E. Gagné (1) (2) (4) (5)Chairman (Retired)Wajax CorporationRalph D. Heath (2) (4)Senior Vice President andTreasurer (Retired)PepsiCo, Inc.Executive Vice President,Aeronautics (Retired)Lockheed Martin CorporationJames L. Ziemer (1) (4)Deborah Lee James (2) (3)Maria T. Zuber (3) (4)23rd Secretary of theU.S. Air Force (Retired)General (Retired)U.S. Marine CorpsPresident and CEO (Retired)Harley-Davidson, Inc.Vice President, ResearchMassachusetts Institute ofTechnologyEXECUTIVE OFFICERSCORPORATEOFFICERSScott C. DonnellyLisa M. AthertonMark S. BamfordFrank T. ConnorExecutive Vice President andChief Financial OfficerTextron Inc.Julie G. DuffyExecutive Vice President –Human ResourcesTextron Inc.E. Robert LuponeExecutive Vice President,General Counsel, Secretary andChief Compliance OfficerTextron Inc.President and CEOTextron SystemsRonald DraperPresident and CEOTextron AviationGunnar KlevelandPresident and CEOTextron SpecializedVehiclesR. Danny MaldonadoPresident and CEOTextron FinancialJörg RautenstrauchPresident and CEOIndustrial Segment andKautexMitch SnyderPresident and CEOBellTEXTRON 2020 ANNUAL REPORTNumbers Indicate CommitteeMemberships:(1) Executive Committee:Chair, Scott C. Donnelly(2) Audit Committee:Chair, R. Kerry Clark(3) Nominating and CorporateGovernance Committee:Chair, James T. Conway(4) Organization andCompensation Committee:Chair, James L. Ziemer(5) Lead Director:Paul E. GagnéSEGMENT ANDBUSINESS UNITPRESIDENTSChairman, President andChief Executive OfficerTextron Inc.6Lionel L. Nowell III (2) (3)Vice President andCorporate ControllerTextron Inc.Janet S. FogartyVice President andDeputy General CounselTextron Inc.Dana L. GoldbergVice President – TaxTextron Inc.Scott P. HegstromVice President –Mergers & Acquisitions andStrategyTextron Inc.Stewart HolmesSenior Vice President –Washington OperationsTextron Inc.Lawrence J. La SalaVice President andDeputy General Counsel –LitigationTextron Inc.Kimberly A. MackenrothVice President andChief Information OfficerTextron Inc.Thomas N. NichiporVice President –Textron Audit ServicesTextron Inc.Eric SalanderVice President – InvestorRelations and TreasurerTextron Inc.

FOOTNOTE TO SELECTED YEAR-OVER-YEAR FINANCIAL DATAADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHAREAdjusted net income and adjusted diluted earnings per share exclude special charges, net of tax, and an inventory charge, net of tax and a taxbenefit both related to TRU Simulation Training Canada Inc. (TRU Canada) in connection with the restructuring plan and disposition ofthis company. We consider items recorded in special charges, such as enterprise-wide restructuring, certain asset impairment charges, andacquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative of ongoing operations. AtTRU Canada, the inventory charge is excluded as it relates to the write-down of inventory in connection with an action taken under the restructuringplan. Due to the substantial decline in demand and order cancellations for flight simulators resulting from the impact of the pandemic on thecommercial air transportation business, we ceased manufacturing at TRU Canada’s Montreal facility, resulting in the production suspension of itscommercial air transport simulators. As a result of this action and market conditions, the related inventory was written down to its net realizablevalue. In the fourth quarter of 2020, we reached a definitive agreement to sell TRU Canada, which resulted in the recognition of an 8 million taxbenefit. We believe this inventory charge and tax benefit are of a non-recurring nature and are not indicative of ongoing operations.NET INCOME AND DILUTED EARNINGS PER SHARE GAAP TO NON-GAAP RECONCILIATION2020(Dollars in Millions, Except Per Share Amounts)2019Net income—GAAPSpecial charges, net of taxesInventory charge, net of taxTax benefit—TRU assets held for sale 309 8151195555 —(8)—Adjusted net income—Non-GAAP 475 870Diluted earnings per share:Net income—GAAP 1.35 3.50Special charges, net of taxes0.520.24Inventory charge, net of tax0.24 —Tax benefit—TRU assets held for sale(0.04)—Adjusted net income—Non-GAAP 2.07 3.74MANUFACTURING CASH FLOW BEFORE PENSION CONTRIBUTIONSManufacturing cash flow before pension contributions adjusts net cash from operating activities (GAAP) for the following: Deducts capital expenditures and includes proceeds from an insurance recovery and the sale of property, plant and equipment to arrive at the net capitalinvestment required to support ongoing manufacturing operations;E xcludesdividends received from Textron Financial Corporation (TFC) and capital contributions to TFC provided under the Support Agreement and debt agreementsas these cash flows are not representative of manufacturing operations;dds back pension contributions as we consider our pension obligations to be debt-like liabilities. Additionally, these contributions can fluctuate Asignificantlyfrom period to period and we believe that they are not representative of cash used by our manufacturing operations during the period; Excludes taxes paid related to the gain realized in 2018 on the Tools and Test business disposition. We have made this adjustment to the non-GAAPmeasure because we believe this use of cash is not representative of cash used by our manufacturing operations.While we believe this measure provides a focus on cash generated from manufacturing operations, before pension contributions, and may be usedas an additional relevant measure of liquidity, it does not necessarily provide the amount available for discretionary expenditures since we havecertain non-discretionary obligations that are not deducted from the measure.MANUFACTURING CASH FLOW BEFORE PENSION CONTRIBUTIONS GAAP TO NON-GAAP RECONCILIATION Millions)2018201720202019Net cash provided by operating activities of continuing operations—GAAPLess: Capital expendituresDividends received from TFCPlus: Total pension contributionsProceeds from an insurance recovery and sale of property, plant and equipmentTaxes paid on gain on business disposition 833(317)—4733— 960(339)(50)51911Manufacturing cash flow before pension contributions—Non-GAAP 596 642(In Millions)TEXTRON 2020 ANNUAL REPORT7

SUPPORTINGOUR COMMUNITIESTHE GLOBAL PANDEMIC CAUSED BY COVID-19 HADA PROFOUND EFFECT ON THE WORLD. ACROSSTEXTRON, OUR EMPLOYEES DISPLAYED REMARKABLEDEDICATION AND COMMITMENT TO OUR CUSTOMERS,OUR COMMUNITIES AND TO ONE ANOTHER.We put into place measures to create safe work environmentsto protect the health and safety of our teams for the continuedoperation of our businesses. We also responded to the needswithin our communities. When there was a critical shortage ofsupplies, we donated personal protective equipment and cleaningsupplies to local healthcare facilities and community organizationsand used our facilities to sew face masks and manufacture protectiveplastic shields for healthcare workers and first responders. We aregrateful to our people for their work during difficult circumstances.8Our businesses donated masks and personalprotective equipment to local healthcare facilitiesand hospitals.With safeguards in place to protect our employees, we kept ourcommitments to customers.Employees volunteered their time to produce facemasks.Teams manufactured plastic face shields for local healthcare workers.Businesses used their expertise to help RON2020ANNUALREPORT

UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended January 2, 2021or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from to .Commission File Number 1-5480Textron 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, RI02903(Address of principal executive offices)(Zip code)Registrant’s Telephone Number, Including Area Code: (401) 421-2800Securities registered pursuant to Section 12(b) of the Act:Title of Each ClassTrading Symbol(s)Name of Each Exchange on WhichRegisteredCommon Stock — par value 0.125TXTNew York Stock ExchangeSecurities registered pursuant to Section 12(g) of the Act: NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. xYes NoIndicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act . Yes x NoIndicate 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 thepreceding 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 thepast 90 days. x Yes NoIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of RegulationS-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes NoIndicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerginggrowth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 ofthe Exchange Act (Check one):Large accelerated filerNon-accelerated filerx Accelerated filerSmaller reporting company Emerging 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 orrevised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control overfinancial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its auditreport. Yes NoIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes NoThe aggregate market value of the registrant’s Common Stock held by non-affiliates at July 4, 2020 was approximately 7.4 billion based on the New York StockExchange closing price for such shares on that date. The registrant has no non-voting common equity.At February 6, 2021, 226,284,488 shares of Common Stock were outstanding.Documents Incorporated by ReferencePart III of this Report incorporates information from certain portions of the registrant’s Definitive Proxy Statement for its Annual Meeting of Shareholders to beheld on April 28, 2021.Textron 2020 Annual Report1

Textron Inc.Index to Annual Report on Form 10-KFor the Fiscal Year Ended January 2, 2021PagePART IItem 1.Business3Item 1A.Risk Factors9Item 1B.Unresolved Staff Comments16Item 2.Properties17Item 3.Legal Proceedings17Item 4.Mine Safety Disclosures17Item 5.Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases ofEquity Securities18Item 6.Selected Financial Data19Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations20Item 7A.Quantitative and Qualitative Disclosures About Market Risk32Item 8.Financial Statements and Supplementary Data34Item 9.Changes In and Disagreements With Accountants on Accounting and Financial Disclosure73Item 9A.Controls and Procedures73Item 10.Directors, Executive Officers and Corporate Governance75Item 11.Executive Compensation75Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters75Item 13.Certain Relationships and Related Transactions and Director Independence75Item 14.Principal Accountant Fees and Services75Exhibits and Financial Statement Schedules76Form 10-K Summary79PART IIPART IIIPART IVItem 15.Item 16.Signatures280Textron 2020 Annual Report2

PART IItem 1. BusinessTextron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses toprovide customers with innovative products and services around the world. References to “Textron Inc.,” the “Company,” “we,”“our” and “us” in this Annual Report on Form 10-K, unless otherwise indicated, refer to Textron Inc. and its consolidatedsubsidiaries.We conduct our business through five operating segments: Textron Aviation, Bell, Textron Systems and Industrial, whichrepresent our manufacturing businesses, and Finance, which represents our captive finance business. Our segments includeoperations that are unincorporated divisions of Textron Inc. and others that are separately incorporated subsidiaries. Totalrevenues by segment and customer type for 2020 are presented below.2020 Total Revenues by SegmentTextron Aviation34%Bell28%Finance1%Textron Systems11%Industrial26%2020 Total Revenues

Popular . Science’s Best of What’s New in the Aerospace category. For 2020, Bell’s Electrically Distributed Anti-Torque (EDAT) system was recognized. EDAT is comprised of four small fans electrically powered by four separate motors that replace a conventional tail rotor, enhancing