2018 Proxy Statement

TEXTRON 2018 PROXY STATEMENT 18 AUDIT COMMITTEE REPORT The Audit Committee of the Board of Directors has furnished the following report on its activities: 7KH FRPPLWWHH UHYLHZHG DQG GLVFXVVHG WKH DXGLWHG FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV DQG WKH UHODWHG VFKHGXOH LQ WKH Annual Report referred to below with management. The committee also reviewed with management and the independent UHJLVWHUHG SXEOLF DFFRXQWLQJ ¿UP WKH ³LQGHSHQGHQW DXGLWRUV´ WKH UHDVRQDEOHQHVV RI VLJQL¿FDQW MXGJPHQWV DQG WKH FODULW\ RI GLVFORVXUHV LQ WKH ¿QDQFLDO VWDWHPHQWV WKH TXDOLW\ QRW MXVW WKH DFFHSWDELOLW\ RI WKH &RPSDQ\¶V DFFRXQWLQJ SULQFLSOHV and such other matters as are required to be discussed with the committee by applicable requirements of the Public Company Accounting Oversight Board. In addition, the committee discussed with the independent auditors the auditors’ independence from management and the Company, including the matters in the written disclosures and the letter from the independent auditors required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountant’s communication with the audit committee concerning independence, and considered the SRVVLEOH HIIHFW RI QRQ DXGLW VHUYLFHV RQ WKH DXGLWRUV¶ LQGHSHQGHQFH The committee discussed with the Company’s internal and independent auditors the overall scope and plans for their respective audits and met with the internal and independent auditors, with and without management present, to discuss the UHVXOWV RI WKHLU H[DPLQDWLRQV WKHLU HYDOXDWLRQV RI WKH &RPSDQ\¶V LQWHUQDO FRQWUROV LQFOXGLQJ LQWHUQDO FRQWUROV RYHU ¿QDQFLDO UHSRUWLQJ DQG WKH RYHUDOO TXDOLW\ RI WKH &RPSDQ\¶V ¿QDQFLDO UHSRUWLQJ 7KH FRPPLWWHH DOVR UHYLHZHG WKH &RPSDQ\¶V compliance program. Ten committee meetings were held during the year. In reliance on the reviews and discussions referred to above, the committee recommended to the Board of Directors that WKH DXGLWHG FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV DQG WKH UHODWHG VFKHGXOH EH LQFOXGHG LQ WKH $QQXDO 5HSRUW RQ )RUP . IRU WKH ¿VFDO \HDU HQGHG 'HFHPEHU WR EH ¿OHG ZLWK WKH 6HFXULWLHV DQG ([FKDQJH &RPPLVVLRQ 7KH FRPPLWWHH also reported to the Board that it had selected Ernst & Young LLP as the Company’s independent auditors for 2018, and UHFRPPHQGHG WKDW WKLV VHOHFWLRQ EH VXEPLWWHG WR WKH VKDUHKROGHUV IRU UDWL¿FDWLRQ ,Q GHWHUPLQLQJ ZKHWKHU WR UHDSSRLQW (UQVW Young LLP as the Company’s independent auditor, the committee took into consideration a number of factors, including the quality of the committee’s ongoing discussions with Ernst & Young LLP and an assessment of the professional TXDOL¿FDWLRQV DQG SDVW SHUIRUPDQFH RI WKH OHDG DXGLW SDUWQHU DQG (UQVW <RXQJ //3 5 .(55< &/$5. &+$,5 JAMES T. CONWAY IVOR J. EVANS PAUL E. GAGNÉ RALPH D. HEATH DEBORAH LEE JAMES JAMES L. ZIEMER