2018 Proxy Statement

41 TEXTRON 2018 PROXY STATEMENT Plan Name Spillover Savings Plan Spillover Savings Plan Spillover Savings Plan Deferred Income Plan Spillover Savings Plan Deferred Income Plan Spillover Savings Plan Registrant Contributions in Last FY ($)(1) 46,058 36,019 61,921 0 6,661 0 0 Aggregate Earnings in Last FY ($)(2) 95,059 53,814 30,528 1,127 3,414 4,541 2,612 4,352 6,964 Aggregate Withdrawals/ Distributions ($) 0 0 0 0 0 0 0 0 Total Total Total Total Aggregate Balance at Last FYE ($)(3) 709,711 411,722 385,934 19,270 30,499 49,769 65,247 30,382 95,629 Name Scott C. Donnelly Frank T. Connor E. Robert Lupone Julie G. Duffy Cheryl H. Johnson NONQUALIFIED DEFERRED COMPENSATION 7KH WDEOH EHORZ VKRZV WKH GHIHUUHG FRPSHQVDWLRQ DFWLYLW\ IRU HDFK 1(2 GXULQJ XQGHU QRQTXDOL¿HG GHIHUUHG FRPSHQVDWLRQ plans maintained by Textron. 1RQTXDOLÀHG 'HIHUUHG &RPSHQVDWLRQ (1) The amounts shown in this column include contributions made by Textron into each executive’s notional deferred income account in the Textron Spillover Savings Plan (the “SSP”) in 2017. There are two types of Company contributions made under the SSP. First, if a participant contributes at least 10% of eligible FRPSHQVDWLRQ WR WKH WD[ TXDOL¿HG 7H[WURQ 6DYLQJV 3ODQ ³763´ WKHQ WKH SDUWLFLSDQW¶V VWRFN XQLW DFFRXQW ZLWKLQ WKH 663 LV FUHGLWHG ZLWK D PDWFK HTXDO WR of eligible compensation reduced by the matching contribution under the TSP. Second, for Mr. Lupone and other employees hired after 2009 who are not HOLJLEOH IRU D GH¿QHG EHQH¿W SHQVLRQ SODQ WKH &RPSDQ\ FUHGLWV WKH LQWHUHVW EHDULQJ 0RRG\¶V DFFRXQW ZLWKLQ WKH 663 ZLWK DQ DPRXQW HTXDO WR RI HOLJLEOH compensation reduced by the contribution that was made by the Company under the TSP. These amounts are also reported in the “All Other Compensation” column in the Summary Compensation table on page 34. 7KH DPRXQWV LQ WKLV FROXPQ UHÀHFW DJJUHJDWH HDUQLQJV GXULQJ WKH ¿VFDO \HDU RQ DPRXQWV DFFUXHG LQ WKH SDUWLFLSDQWV¶ DFFRXQWV XQGHU WKH 663 DQG WKH ',3 LI DSSOLFDEOH EDVHG XSRQ WKH WHUPV RI HDFK SODQ DV GHVFULEHG EHORZ 7R WKH H[WHQW WKH FUHGLWHG UDWH H[FHHGV RI WKH ORQJ WHUP DSSOLFDEOH IHGHUDO UDWH VXFK HDUQLQJV DUH FRQVLGHUHG ³DERYH PDUNHW HDUQLQJV´ 7KH DPRXQW RI DERYH PDUNHW HDUQLQJV LQ WKH ',3 ZDV IRU 0V 'XII\ DQG IRU 0V -RKQVRQ 7KHVH HDUQLQJV DUH DOVR UHSRUWHG LQ WKH ³&KDQJH LQ 3HQVLRQ 9DOXH DQG 1RQTXDOL¿HG 'HIHUUHG &RPSHQVDWLRQ (DUQLQJV´ FROXPQ LQ WKH 6XPPDU\ &RPSHQVDWLRQ 7DEOH 2I WKHVH EDODQFHV WKH IROORZLQJ DPRXQWV ZHUH UHSRUWHG LQ 6XPPDU\ &RPSHQVDWLRQ 7DEOHV LQ SULRU \HDU SUR[\ VWDWHPHQWV 0U 'RQQHOO\ Mr. Connor $203,114, Mr. Lupone $247,819 and Ms. Johnson $23,375. This information is provided to clarify the extent to which amounts payable as deferred compensation represent compensation reported in our prior proxy statements, rather than additional currently earned compensation. A brief description of the Company’s deferred compensation plans referenced above follows: DIP: DEFERRED INCOME PLAN FOR TEXTRON EXECUTIVES NEOs deferring compensation into the Deferred Income Plan for Textron Executives (“DIP”) have forgone current compensation in exchange for an unsecured promise from the Company to pay the deferred amount after their employment ends. NEOs can GHIHU XS WR RI WKHLU EDVH VDODU\ DQG FHUWDLQ RWKHU FDVK FRPSHQVDWLRQ LQFOXGLQJ DQQXDO LQFHQWLYH FRPSHQVDWLRQ DQG ORQJ WHUP LQFHQWLYH GLVWULEXWLRQV VHWWOHG LQ FDVK 7KH ³SULQFLSDO´ DPRXQW WKDW LV GHIHUUHG FDQ EH FUHGLWHG ZLWK HLWKHU D 0RRG\¶V EDVHG interest rate or a rate of return that approximates the return on investment for a share of Textron common stock, including dividend equivalents, based upon the elections made annually by each NEO. The interest rate applicable to the Moody’s account is the average Moody’s Corporate Bond Yield Index as published by Moody’s Investors Service, Inc. The compounded Moody’s yield for 2017 was 3.79%, which was applied to all deferrals made subsequent to December 31, 2001. SSP: TEXTRON SPILLOVER SAVINGS PLAN 7KH 7H[WURQ 6SLOORYHU 6DYLQJV 3ODQ WKH ³663´ PDNHV XS IRU IRUJRQH &RPSDQ\ PDWFKHV LQWR WKH WD[ TXDOL¿HG 7H[WURQ 6DYLQJV Plan because of federal compensation limits, as a result of deferring income under the DIP, and for employees hired or rehired DIWHU ZKR DUH QRW HOLJLEOH IRU D GH¿QHG EHQH¿W SHQVLRQ SODQ 1(2 FRQWULEXWLRQV WR WKH TXDOL¿HG VDYLQJV SODQ DUH FDSSHG DW 10% of eligible compensation up to the Internal Revenue Code limit ($270,000 in 2017). The contribution amount for employees hired or rehired after 2009 is based on 4% of eligible compensation. Contributions under the SSP are tracked in the form of XQIXQGHG ERRN HQWU\ DFFRXQWV FUHGLWHG DV VWRFN XQLWV ZKLFK HDUQ GLYLGHQG HTXLYDOHQWV DQG ZKLFK DUH UHLQYHVWHG LQWR VWRFN XQLWV NEOs are not permitted to make contributions to the SSP.