2018 Proxy Statement

27 TEXTRON 2018 PROXY STATEMENT PERFORMANCE ANALYSIS WHICH COMPANIES DOES THE COMMITTEE USE TO COMPARE OUR PERFORMANCE? 7KH WDEOH EHORZ VKRZV WKH OLVW RI SHUIRUPDQFH SHHU JURXS FRPSDQLHV FKHFNPDUNV LQ WKH FROXPQV XQGHU 7H[WURQ¶V manufacturing segments mean that the peer company competes in some way, or operates in similar industries, with that segment. 2017 Performance Peer Group 2016 Revenue Company Name ($ in billions) Aviation Bell Industrial Systems The Boeing Company $94.6 United Technologies Corporation 57.2 Lockheed Martin Corporation 47.2 Honeywell International Inc. 39.3 General Dynamics Corporation 31.4 Deere & Company 26.6 Northrop Grumman Corporation 24.5 Raytheon Company 24.1 Eaton Corporation Plc 19.7 ,QJHUVROO 5DQG 3OF L3 Technologies, Inc. 10.5 BorgWarner Inc. 9.1 Harris Corporation 7.5 Spirit AeroSystems Holdings, Inc. 6.8 Rockwell Collins, Inc. 5.3 Textron Inc. 13.8 The foregoing performance peer group for 2017 remains unchanged from 2016, as reported in last year’s proxy statement. 7KH SHUIRUPDQFH SHHU JURXS ZLOO EH XVHG WR PHDVXUH UHODWLYH 765 SHUIRUPDQFH IRU WKH 368 DZDUGV JUDQWHG to NEOs in 2017. WHAT WERE OUR PERFORMANCE GOALS? 3HUIRUPDQFH JRDOV IRU WKH DQQXDO LQFHQWLYH FRPSHQVDWLRQ SURJUDP DQG 368V XQGHU WKH ORQJ WHUP LQFHQWLYH FRPSHQVDWLRQ SURJUDP ODUJHO\ IRFXVHG RQ SUR¿WDELOLW\ DQG FDVK ÀRZ ZLWK DQ DGGLWLRQDO JRDO UHODWHG WR ZRUNIRUFH GLYHUVLW\ 7KH SUR¿WDELOLW\ WDUJHW IRFXVHG H[HFXWLYHV RQ GHOLYHU\ RI VHJPHQW SUR¿W LQ HDFK RI RXU VHJPHQWV 7KH FDVK ÀRZ WDUJHW IRFXVHG H[HFXWLYHV RQ LPSURYLQJ RSHUDWLRQDO HI¿FLHQF\ DQG VXVWDLQLQJ WKH VWUHQJWK RI WKH EDODQFH VKHHW 7KH GLYHUVLW\ PHWULF DSSOLFDEOH MXVW WR DQQXDO LQFHQWLYH FRPSHQVDWLRQ IRFXVHG PDQDJHPHQW RQ KDYLQJ D GLYHUVH HPSOR\HH SUR¿OH ,Q DGGLWLRQ 368V DUH VXEMHFW WR D GLVFUHWLRQDU\ 765 PRGL¿HU WKDW FDQ GHFUHDVH EXW QRW LQFUHDVH WKH SD\RXW E\ DV PXFK DV EDVHG RQ KRZ 7H[WURQ¶V WKUHH \HDU 765 FRPSDUHV to our performance peer group.