FORM 10-K

56 Other Comprehensive Income (Loss) The before and after-tax components of other comprehensive income (loss) are presented below: 2017 2016 2015 (In millions) Pre-Tax Amount Tax (Expense) Benefit After- Tax Amount Pre-Tax Amount Tax (Expense) Benefit After- Tax Amount Pre-Tax Amount Tax (Expense) Benefit After- Tax Amount Pension and postretirement benefits adjustments: Unrealized gains (losses) $ 18 $ (1) $ 17 $ (382) $ 135 $ (247) $ 136 $ (44) $ 92 Amortization of net actuarial loss* 136 (48) 88 104 (39) 65 150 (53) 97 Amortization of prior service cost (credit)* 7 (2) 5 (7) 4 (3) (7) 2 (5) Recognition of prior service credit (cost) (1) — (1) 12 (5) 7 — — — Pension and postretirement benefits adjustments, net 160 (51) 109 (273) 95 (178) 279 (95) 184 Deferred gains (losses) on hedge contracts: Current deferrals 10 (2) 8 11 (4) 7 (33) 7 (26) Reclassification adjustments 7 (1) 6 17 (4) 13 19 (4) 15 Deferred gains (losses) on hedge contracts, net 17 (3) 14 28 (8) 20 (14) 3 (11) Foreign currency translation adjustments 100 7 107 (36) (13) (49) (55) (10) (65) Total $ 277 $ (47) $ 230 $ (281) $ 74 $ (207) $ 210 $ (102) $ 108 *These components of other comprehensive income (loss) are included in the computation of net periodic pension cost. See Note 11 for additional information. Note 10. Share-Based Compensation Our 2015 Long-Term Incentive Plan (Plan), which replaced our 2007 Long-Term Incentive Plan in April 2015, authorizes awards to selected employees in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, performance stock, performance share units and other awards. A maximum of 17 million shares is authorized for issuance for all purposes under the Plan plus any shares that become available upon cancellation, forfeiture or expiration of awards granted under the 2007 Long- Term Incentive Plan. No more than 17 million shares may be awarded pursuant to incentive stock options, and no more than 4.25 million shares may be issued pursuant to awards of restricted stock, restricted stock units, performance stock or other awards that are payable in shares. Through our Deferred Income Plan for Textron Executives, we provide certain executives the opportunity to voluntarily defer up to 80% of their base salary, along with incentive compensation. Elective deferrals may be put into either a stock unit account or an interest-bearing account. Participants cannot move amounts between the two accounts while actively employed by us and cannot receive distributions until termination of employment. The intrinsic value of amounts paid under this deferred income plan was not significant in 2017, 2016 and 2015. Share-based compensation costs are reflected primarily in selling and administrative expense. Compensation expense included in net income for our share-based compensation plans is as follows: (In millions) 2017 2016 2015 Compensation expense $ 77 $ 71 $ 63 Income tax benefit (28) (26) (23) Total net compensation expense included in net income $ 49 $ 45 $ 40 Compensation expense included $20 million, $20 million and $21 million in 2017, 2016 and 2015, respectively, for a portion of the fair value of stock options issued and the portion of previously granted options for which the requisite service has been rendered. Compensation cost for awards subject only to service conditions that vest ratably are recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award. As of December 30, 2017, we had not recognized $45 million of total compensation costs associated with unvested awards subject only to service conditions. We expect to recognize compensation expense for these awards over a weighted-average period of approximately two years.