Textron 2020 Proxy Statement

TEXTRON 2020 PROXY STATEMENT 43 PENSION BENEFITS IN FISCAL 2019 The table below sets forth information on the pension benefits for the NEOs under each of the Company’s pension plans: Plan Name TRP Spillover Wrap Around TRP Spillover Add’l Credited Service N/A TRP Spillover TSPPSO Number of Years of Credited Service 11.50 11.50 30.50 (2) 10.42 10.42 3.00 (2) N/A 22.50 22.50 22.50 Total Total Total Payments During Last Fiscal Year ($) 0 0 0 0 0 0 N/A 0 0 0 Name Scott C. Donnelly Frank T. Connor E. Robert Lupone (3) Julie G. Duffy Present Value of Accumulated Benefit ($) (1) 465,486 4,846,515 7,880,157 13,192,158 452,594 2,708,470 910,386 4,071,450 N/A 839,541 1,384,311 345,396 2,569,248 (1) The present value of the accumulated benefit has been calculated consistent with the assumptions set forth in Note 16 Retirement Plans in Textron’s Annual Report on Form 10-K for the fiscal year ended January 4, 2020. (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 Textron’s retirement benefits for U.S. salaried and eligible bargained employees, the Textron Retirement Program (“TRP”), is designed to be a “floor-offset” arrangement which has two parts. The first is a traditional defined pension benefit which provides a set monthly income (pension) at retirement through a formula based on age, years of service and annual compensation. The second is a defined contribution benefit called the Textron Retirement Account Plan. The TRP is funded and tax qualified. Benefits under the TRP are based on one and one-third percent of eligible compensation, provided that, for service years prior to 2007 (which only applies to Ms. Duffy), benefits are based on a one percent annual benefit for eligible compensation up to the “covered compensation” level ($68,676 in 2019), plus an additional amount equal to one and one-half percent of eligible compensation in excess of covered compensation. “Eligible Compensation” includes base salary plus annual incentive payments in a given year, up to the Internal Revenue Code limit ($280,000 in 2019). The benefit formula is calculated based on eligible employees’ highest consecutive five-year average eligible compensation throughout their career at Textron. Provided an employee meets the five years of qualifying service to become vested in the TRP, the accumulated benefit earned during an employee’s career is payable in monthly installments after retirement. While the normal retirement age under the TRP is 65, eligible employees who meet defined age and service criteria can retire and begin collecting a reduced benefit as early as age 55. Mr. Donnelly, Mr. Connor and Ms. Duffy qualify for the early retirement benefit under the TRP.