2018 Proxy Statement

39 TEXTRON 2018 PROXY STATEMENT Plan Name TRP Spillover Wrap Around TRP Spillover Add’l Credited Service N/A TRP Spillover TSPPSO TRP (Bell) TRP (Textron) Spillover (Bell) Spillover (Textron) Number of Years of Credited Service 9.50 9.50 28.50 (2) 8.42 8.42 3.00 (2) N/A 20.50 20.50 20.50 3.50 15.75 3.50 15.75 Total Total Total Total Payments During Last Fiscal Year ($) 0 0 0 0 0 0 0 0 N/A 0 0 0 0 0 0 0 0 Name Scott C. Donnelly Frank T. Connor E. Robert Lupone (3) Julie G. Duffy Cheryl H. Johnson Present Value of Accumulated %HQHÀW ($)(1) 333,973 2,841,295 5,548,499 8,723,767 319,903 1,620,810 691,739 2,632,452 N/A 660,174 628,934 202,300 1,491,408 132,331 606,542 154,512 743,601 1,636,986 PENSION BENEFITS IN FISCAL 2017 7KH WDEOH EHORZ VHWV IRUWK LQIRUPDWLRQ RQ WKH SHQVLRQ EHQH¿WV IRU WKH 1(2V XQGHU HDFK RI WKH &RPSDQ\¶V SHQVLRQ SODQV 3HQVLRQ %HQHÀWV 7KH SUHVHQW YDOXH RI WKH DFFXPXODWHG EHQH¿W KDV EHHQ FDOFXODWHG FRQVLVWHQW ZLWK WKH DVVXPSWLRQV VHW IRUWK LQ 1RWH 5HWLUHPHQW 3ODQV LQ 7H[WURQ¶V $QQXDO 5HSRUW RQ )RUP . IRU WKH ¿VFDO \HDU HQGHG 'HFHPEHU (2) Years of extra service granted to the executive by employment letter. (3) Mr. Lupone is not eligible to participate in any of our pension plans. A brief description of each of the Company’s pension plans referenced above follows: TRP: TEXTRON RETIREMENT PROGRAM (IIHFWLYH -DQXDU\ 7H[WURQ FRQVROLGDWHG LWV UHWLUHPHQW EHQH¿WV IRU 8 6 VDODULHG DQG HOLJLEOH EDUJDLQHG HPSOR\HHV LQWR D VLQJOH SURJUDP WKH 7H[WURQ 5HWLUHPHQW 3URJUDP ³753´ 7KH 753 LV GHVLJQHG WR EH D ³ÀRRU RIIVHW´ DUUDQJHPHQW ZKLFK KDV WZR SDUWV 7KH ¿UVW LV D WUDGLWLRQDO GH¿QHG SHQVLRQ EHQH¿W ZKLFK SURYLGHV D VHW PRQWKO\ LQFRPH SHQVLRQ DW UHWLUHPHQW WKURXJK D IRUPXOD EDVHG RQ DJH \HDUV RI VHUYLFH DQG DQQXDO FRPSHQVDWLRQ 7KH VHFRQG LV D QHZ GH¿QHG FRQWULEXWLRQ EHQH¿W FDOOHG WKH Textron Retirement Account Plan. Transition rules between the prior plan design and the new plan design provide that participants ZKR PHHW FHUWDLQ UXOHV ZLOO EH JUDQGIDWKHUHG HQWLWOLQJ WKHP WR WKH ODUJHU RI WKH EHQH¿W FDOFXODWHG XQGHU WKH SULRU SHQVLRQ IRUPXOD DQG WKH EHQH¿W FDOFXODWHG XQGHU WKH 753 1RQH RI WKH 1(2V PHW WKH JUDQGIDWKHULQJ UXOHV XQGHU WKH 753 KRZHYHU 0V -RKQVRQ did meet the grandfathering rules under the Spillover Pension Plan (described below) which entitles her to the larger amount of WKH WZR FDOFXODWLRQV XQGHU WKDW 3ODQ 7KH 753 LV IXQGHG DQG WD[ TXDOL¿HG %HQH¿WV XQGHU WKH QHZ GH¿QHG SHQVLRQ IRUPXOD DUH EDVHG RQ RQH DQG RQH WKLUG SHUFHQW RI HOLJLEOH FRPSHQVDWLRQ %HQH¿WV XQGHU WKH SULRU IRUPXOD DUH EDVHG RQ D RQH SHUFHQW DQQXDO EHQH¿W IRU HOLJLEOH FRPSHQVDWLRQ XS WR WKH ³FRYHUHG FRPSHQVDWLRQ´ OHYHO LQ SOXV DQ DGGLWLRQDO DPRXQW HTXDO WR RQH DQG RQH KDOI SHUFHQW RI HOLJLEOH FRPSHQVDWLRQ LQ H[FHVV RI covered compensation. “Eligible Compensation” includes base salary plus annual incentive payments in a given year, up to WKH ,QWHUQDO 5HYHQXH &RGH OLPLW LQ 7KH EHQH¿W IRUPXOD LV FDOFXODWHG EDVHG RQ HOLJLEOH HPSOR\HHV¶ KLJKHVW FRQVHFXWLYH ¿YH \HDU DYHUDJH HOLJLEOH FRPSHQVDWLRQ WKURXJKRXW WKHLU FDUHHU DW 7H[WURQ 3URYLGHG DQ HPSOR\HH PHHWV WKH ¿YH \HDUV RI TXDOLI\LQJ VHUYLFH WR EHFRPH YHVWHG LQ WKH 753 WKH DFFXPXODWHG EHQH¿W HDUQHG GXULQJ DQ HPSOR\HH¶V FDUHHU LV SD\DEOH in monthly installments after retirement. While the normal retirement age under the TRP is 65, eligible grandfathered employees FDQ HDUQ D IXOO EHQH¿W XSRQ DWWDLQPHQW RI DJH (OLJLEOH HPSOR\HHV ZKR PHHW GH¿QHG DJH DQG VHUYLFH FULWHULD FDQ UHWLUH DQG