2018 Proxy Statement

35 TEXTRON 2018 PROXY STATEMENT 7KH DPRXQWV WKDW DSSHDU LQ WKLV FROXPQ UHSUHVHQW WKH JUDQW GDWH IDLU YDOXH RI VWRFN RSWLRQV JUDQWHG GXULQJ WKH ¿VFDO \HDU 7KH JUDQW GDWH IDLU YDOXHV KDYH EHHQ GHWHUPLQHG EDVHG RQ WKH DVVXPSWLRQV DQG PHWKRGRORJLHV VHW IRUWK LQ 1RWH 6KDUH %DVHG &RPSHQVDWLRQ LQ 7H[WURQ¶V $QQXDO 5HSRUW RQ )RUP . IRU WKH ¿VFDO \HDU HQGHG 'HFHPEHU 7KH QXPEHU RI VKDUHV XQGHUO\LQJ WKH VWRFN RSWLRQV JUDQWHG WR HDFK 1(2 GXULQJ LV GHWDLOHG LQ WKH *UDQWV RI 3ODQ %DVHG $ZDUGV LQ )LVFDO WDEOH RQ SDJH 7KH DPRXQWV LQ WKLV FROXPQ UHÀHFW DQQXDO LQFHQWLYH FRPSHQVDWLRQ HDUQHG XQGHU 7H[WURQ¶V DQQXDO LQFHQWLYH FRPSHQVDWLRQ SURJUDP (5) The amounts in this column are attributable to the change in actuarial present value from January 1, 2017 to December 30, 2017 of accumulated pension EHQH¿WV XQGHU DOO GH¿QHG EHQH¿W SODQV LQ ZKLFK WKH 1(2V SDUWLFLSDWH )RU 0V 'XII\ DQG 0V -RKQVRQ WKLV FROXPQ DOVR LQFOXGHV DQG UHVSHFWLYHO\ LQ DERYH PDUNHW QRQ TXDOL¿HG GHIHUUHG FRPSHQVDWLRQ HDUQLQJV WKDW ZHUH SRVWHG WR WKHLU LQWHUHVW EHDULQJ DFFRXQWV XQGHU WKH 'HIHUUHG ,QFRPH 3ODQ IRU 7H[WURQ ([HFXWLYHV ³',3´ (DUQLQJV DUH FRQVLGHUHG ³DERYH PDUNHW´ LI WKH\ ZHUH KLJKHU WKDQ RI WKH ORQJ WHUP DSSOLFDEOH IHGHUDO UDWH ZLWK FRPSRXQGLQJ 7KH DPRXQWV LQ WKLV FROXPQ LQFOXGH WKH YDOXH RI RWKHU EHQH¿WV DQG WKH LQFUHPHQWDO FRVW WR 7H[WURQ LQ RI SURYLGLQJ YDULRXV SHUTXLVLWHV LQ as detailed below: Mr. Donnelly Mr. Connor Mr. Lupone Ms. Duffy Ms. Johnson Spillover Savings Plan Contribution (a) $ 46,058 $36,019 $61,921 $ 6,661 $ 0 Contributions to Textron Savings Plan 13,500 13,500 24,300 13,500 12,548 Contributions to Retirement Plans 5,400 5,400 0 5,400 5,400 Perquisites (b) 47,999 33,373 0 0 0 Total $112,957 $88,292 $86,221 $25,561 $17,948 D 7KHVH DPRXQWV UHSUHVHQW WKH YDOXH RI FDVK VHWWOHG 7H[WURQ VWRFN XQLWV FUHGLWHG WR WKH 1(2¶V 6SLOORYHU 6DYLQJV 3ODQ DFFRXQW GXULQJ WKH \HDU )RU 0U /XSRQH ZKR LV QRW HOLJLEOH IRU D GH¿QHG EHQH¿W SHQVLRQ SODQ WKH &RPSDQ\ FUHGLWV DQ LQWHUHVW EHDULQJ 0RRG\¶V DFFRXQW ZLWKLQ WKH 663 ZLWK DQ DPRXQW HTXDO WR of eligible compensation, reduced by the contribution that was made by the Company under the Textron Savings Plan. (b) This amount includes the following: (i) $3,000 for parking for each of Mr. Donnelly and Mr. Connor, (ii) $4,563 for an annual physical exam for Mr. Donnelly, (iii) $17,856 for Mr. Donnelly’s usage of corporate aircraft for personal travel and to attend meetings of an outside board of directors on which he serves at the request of the Company’s board, which is deemed to be personal travel under SEC rules, (iv) $21,944 for the incremental cost to the Company of corporate aircraft dropping off or picking up Mr. Connor at an alternative airport for his personal convenience and (v) $22,580 and $8,429 for Mr. Donnelly and Mr. Connor, respectively, representing the Company paid portion of the costs for hangar space utilized by the executives’ personal aircraft. In addition, IDPLO\ PHPEHUV DQG LQYLWHG JXHVWV RI 0U 'RQQHOO\ RFFDVLRQDOO\ À\ DV DGGLWLRQDO SDVVHQJHUV RQ EXVLQHVV ÀLJKWV ,Q WKRVH FDVHV WKH DJJUHJDWH LQFUHPHQWDO FRVW WR WKH &RPSDQ\ LV D GH PLQLPLV DPRXQW DQG DV D UHVXOW QR DPRXQW LV UHÀHFWHG LQ WKH 6XPPDU\ &RPSHQVDWLRQ 7DEOH 7H[WURQ YDOXHV WKH SHUVRQDO XVH RI FRUSRUDWH DLUFUDIW E\ XVLQJ DQ LQFUHPHQWDO FRVW PHWKRG WKDW PXOWLSOLHV WKH KRXUV ÀRZQ RQ D SHUVRQDO ÀLJKW E\ DQ KRXUO\ GLUHFW RSHUDWLQJ FRVW UDWH IRU WKH DLUFUDIW ÀRZQ 7KH UDWH SHU ÀLJKW KRXU LV GHULYHG IURP WKH DLUFUDIW¶V YDULDEOH RSHUDWLQJ FRVWV ZKLFK LQFOXGH ODQGLQJ IHHV IXHO KDQJDU IHHV PDLQWHQDQFH FDWHULQJ VHFXULW\ IHHV FUHZ H[SHQVHV GH LFLQJ FRVWV DQG RWKHU GLUHFW RSHUDWLQJ H[SHQVHV 7KH LQFUHPHQWDO FRVW RI ORFDWLQJ DLUFUDIW WR WKH RULJLQ RI D WULS RU returning aircraft from the completion of a trip are also included in the amount reported. (7) Ms. Johnson voluntarily terminated her employment with Textron on July 17, 2017.