2018 Proxy Statement

TEXTRON 2018 PROXY STATEMENT 38 Number of Shares Acquired on Exercise (#) 17,699 0 0 0 0 Value Realized on Exercise ($) 753,800 0 0 0 0 Type of Equity Award (1) PSU RSU PSU RSU PSU RSU PSU RSU PSU RSU Number of Shares or Units Acquired on Vesting (#) 73,512 88,048 21,427 26,132 9,868 22,369 2,623 2,799 5,325 10,450 (3) Total Total Total Total Total Value Realized on Vesting ($)(2) 4,294,571 4,365,420 8,659,991 1,251,765 1,295,625 2,547,390 576,489 1,084,795 1,661,284 153,236 138,774 292,010 311,087 519,763 830,850 Name Scott C. Donnelly Frank T. Connor E. Robert Lupone Julie G. Duffy Cheryl H. Johnson OPTION EXERCISES AND STOCK VESTED IN FISCAL 2017 The following table provides information concerning option exercises and the vesting of stock, including PSUs and RSUs, during 7H[WURQ¶V ¿VFDO \HDU IRU HDFK 1(2 Option Exercises and Stock Vested in Fiscal 2017 Option Awards Stock Awards (1) “PSU” and “RSU” are described in more detail in footnote 3 to the previous table. (2) Valuation methodology for the PSUs is described in footnote 5 to the previous table, using actual performance results. (3) 1,524 RSUs held by Ms. Johnson vested upon the termination of her employment with Textron. (3) The following types of stock awards are shown in this table: (a) “PSU” UHIHUV WR SHUIRUPDQFH VKDUH XQLWV 7KHVH XQLWV UHZDUG DFKLHYHPHQW RI ORQJ WHUP JRDOV RYHU D WKUHH \HDU SHUIRUPDQFH SHULRG YHVWLQJ DW WKH HQG RI WKH WKLUG ¿VFDO \HDU 7KH\ DUH VHWWOHG LQ FDVK DQG YDOXHG EDVHG RQ WKH DYHUDJH FORVLQJ SULFH RI 7H[WURQ FRPPRQ VWRFN IRU WKH ¿UVW WHQ WUDGLQJ GD\V RI WKH ¿VFDO \HDU IROORZLQJ YHVWLQJ )XUWKHU LQIRUPDWLRQ DERXW WKHVH DZDUGV FDQ EH IRXQG LQ WKH &' $ (b) “RSU” refers to restricted stock units. RSUs vest ratably over three years beginning on the third anniversary of the grant date. Upon vesting, common stock will be issued to the executive. RSUs are granted with the right to receive dividend equivalents. 7KH PDUNHW YDOXH RI 568V WKDW KDYH QRW YHVWHG DV RI 'HFHPEHU ZDV FDOFXODWHG XVLQJ WKH ¿VFDO \HDU HQG FORVLQJ VKDUH SULFH RI PXOWLSOLHG E\ the number of unvested units as of that date. (5) PSUs granted in 2016 and 2017 vest, to the extent earned, on December 29, 2018 and December 28, 2019, respectively. The market value of PSUs that have QRW YHVWHG DV RI \HDU HQG ZDV FDOFXODWHG XVLQJ WKH ¿VFDO \HDU HQG FORVLQJ VKDUH SULFH RI PXOWLSOLHG E\ WKH QXPEHU RI XQYHVWHG XQLWV DVVXPLQJ WKDW RI WKH XQLWV DUH HDUQHG DQG DVVXPLQJ D PHGLDQ 765 SHUIRUPDQFH PRGL¿HU IRU WKH WKUHH \HDU SHUIRUPDQFH SHULRG UHSUHVHQWLQJ WKH WDUJHW SHUIRUPDQFH OHYHO H[FHSW ZLWK UHVSHFW WR 0V 'XII\¶V 368V ZKLFK DUH QRW VXEMHFW WR WKH 765 PRGL¿HU (6) Because Ms. Johnson was eligible for retirement when she voluntarily terminated her employment with the Company, her unvested stock options will continue to vest per their respective vesting schedules for 48 months after termination, and vested stock options will remain exercisable until the earlier of the remaining term of the options or 48 months after termination. Her PSUs and RSUs also will continue to vest according to their vesting schedules.