2018 Proxy Statement

TEXTRON 2018 PROXY STATEMENT 36 Estimated Possible Payouts Under Non-Equity Incentive Plan Awards (1) Estimated Future Payouts Under Equity Incentive Plan Awards (2) All Other Stock All Other Grant Awards: Option Exercise Date Fair Number Awards: or Base Value of Shares Number of Price of Stock of Stock Securities of Option and or Stock Underlying Awards Option Grant Grant Target Maximum Target Maximum Units (#) Options (#) ($/sh) Awards Name Date Type ($) ($) ($) ($) (3) (4) (5) (6) GRANTS OF PLAN-BASED AWARDS IN FISCAL 2017 7KH IROORZLQJ WDEOH VHWV IRUWK LQIRUPDWLRQ RQ SODQ EDVHG FRPSHQVDWLRQ DZDUGV JUDQWHG WR WKH 1(2V GXULQJ 7H[WURQ¶V ¿VFDO year. Annual equity awards were approved on January 27, 2017 for grant on March 1, 2017. Scott C. Donnelly Annual IC 1,800,000 3,600,000 3/1/2017 PSUs 4,553,594 6,830,390 1,329,841 3/1/2017 RSUs 60,350 2,992,153 3/1/2017 Stock Options 219,619 49.58 3,030,742 3/1/2017 PSUs (7) 2,331,700 Frank T. Connor Annual IC 850,000 1,700,000 3/1/2017 PSUs 1,297,767 1,946,651 379,003 3/1/2017 RSUs 17,199 852,726 3/1/2017 Stock Options 62,591 49.58 863,756 3/1/2017 PSUs (7) 675,847 E. Robert Lupone Annual IC 547,500 1,095,000 3/1/2017 PSUs 581,700 872,550 169,881 3/1/2017 RSUs 7,709 382,212 3/1/2017 Stock Options 28,056 49.58 387,173 3/1/2017 PSUs (7) 308,684 Julie G. Duffy Annual IC 285,000 570,000 3/1/2017 PSUs (8) 129,761 194,641 37,896 3/1/2017 RSUs 1,720 85,278 3/1/2017 Stock Options 6,260 49.58 86,388 3/1/2017 PSUs (7)(8) 68,567 Cheryl H. Johnson Annual IC 3/1/2017 PSUs 324,419 486,629 94,744 3/1/2017 RSUs 4,299 213,144 3/1/2017 Stock Options 15,647 49.58 215,929 3/1/2017 PSUs (7) 168,215 7KHVH DPRXQWV UHIHU WR DZDUGV RI DQQXDO LQFHQWLYH FRPSHQVDWLRQ PDGH XQGHU RXU 6KRUW 7HUP ,QFHQWLYH 3ODQ 7KH SHUIRUPDQFH PHWULFV DQG PHWKRGRORJ\ IRU calculating payments are described in the CD&A. 7KHVH DPRXQWV UHIHU WR 368 JUDQWV PDGH XQGHU WKH 7H[WURQ ,QF /RQJ 7HUP ,QFHQWLYH 3ODQ ZKLFK DUH SHUIRUPDQFH EDVHG ORQJ WHUP JUDQWV RI VKDUH XQLWV SDLG LQ FDVK GHVLJQHG WR UHZDUG WKH DFKLHYHPHQW RI VSHFL¿HG JRDOV RYHU WKUHH GLVWLQFW ¿VFDO \HDU SHUIRUPDQFH SHULRGV 7KH SHUIRUPDQFH PHWULFV DQG PHWKRGRORJ\ IRU FDOFXODWLQJ SD\PHQWV DUH GHVFULEHG LQ WKH &' $ *UDQWV RI 368V LQ YHVW DW WKH HQG RI ¿VFDO 7KH ³WDUJHW´ DPRXQW WR EH SDLG LQ DVVXPHV HDUQHG DQG LV EDVHG RQ WKH ¿VFDO \HDU HQG VKDUH SULFH RI 7KH ³PD[LPXP´ WKDW FDQ EH SDLG SHU WKH SODQ GHVLJQ LV RI WKH 368V JUDQWHG DV GHVFULEHG LQ WKH &' $ %RWK WDUJHW DQG PD[LPXP DPRXQWV DVVXPH PHGLDQ 765 SHUIRUPDQFH IRU WKH WKUHH \HDU SHUIRUPDQFH SHULRG 7KHVH DPRXQWV UHSUHVHQW WKH QXPEHU RI 568V JUDQWHG LQ SXUVXDQW WR WKH 7H[WURQ ,QF /RQJ 7HUP ,QFHQWLYH 3ODQ 568V HDUQ GLYLGHQG HTXLYDOHQWV until vested and vest ratably over three years, beginning on March 1, 2020, three years after the grant date, and annually thereafter. 7KHVH DPRXQWV UHSUHVHQW WKH QXPEHU RI VWRFN RSWLRQV JUDQWHG LQ SXUVXDQW WR WKH 7H[WURQ ,QF /RQJ 7HUP ,QFHQWLYH 3ODQ $OO DQQXDO JUDQWV RI VWRFN options vest ratably over three years, beginning on March 1, 2018, and annually thereafter. 5HÀHFWV WKH H[HUFLVH SULFH IRU WKH VWRFN RSWLRQV JUDQWHG RQ 0DUFK ZKLFK LV HTXDO WR WKH FORVLQJ SULFH RQ WKH JUDQW GDWH (6) Represents the grant date fair value of each equity award listed in the table as determined in accordance with generally accepted accounting principles. With UHVSHFW WR 368V JUDQWHG LQ WKH DPRXQWV LQ WKLV FROXPQ UHSUHVHQW WKH YDOXH RI RQO\ WKH SRUWLRQ RI WKH JUDQW VLQFH WKH JUDQW LV VXEMHFW WR WKUHH VLQJOH \HDU SHUIRUPDQFH SHULRGV DQG 5HSUHVHQWV JUDQW GDWH IDLU YDOXH RI WKH SRUWLRQ RI WKH DQG 368 DZDUGV 0V 'XII\¶V 368V DUH QRW VXEMHFW WR WKH 765 PRGL¿HU DV GHVFULEHG LQ WKH &' $