2018 Proxy Statement

TEXTRON 2018 PROXY STATEMENT 24 7KH WDEOH EHORZ OLVWV WKH WDOHQW SHHU JURXS FRPSDQLHV DQG 7H[WURQ VKRZLQJ ¿VFDO UHYHQXHV 7KH WDOHQW SHHU group was referenced in setting target pay for 2018. 2017 Talent Peer Group 2016 Revenue Company Name Industry ($ in billions) Honeywell International Inc. Aerospace/Defense $39.3 General Dynamics Corporation Aerospace/Defense 31.4 Northrop Grumman Corporation Aerospace/Defense 24.5 Eaton Corporation Plc General Manufacturing 19.7 Lear Corporation Automotive 18.6 The Goodyear Tire & Rubber Company Automotive 15.2 Emerson Electric Co. Technology/Engineering 14.5 Illinois Tool Works Inc. General Manufacturing 13.6 Ingersoll ώ Rand Plc General Manufacturing 13.5 Parker ώ +DQQL¿Q &RUSRUDWLRQ *HQHUDO 0DQXIDFWXULQJ L3 Technologies, Inc. Aerospace/Defense 10.5 BorgWarner Inc. Automotive 9.1 Harris Corporation Technology/Defense 7.5 Spirit AeroSystems Holdings, Inc. Aerospace/Defense 6.8 Oshkosh Corporation General Manufacturing 6.3 Rockwell Automation Inc. Technology/Engineering 5.9 Rockwell Collins, Inc. Aerospace/Defense 5.3 Terex Corporation General Manufacturing 4.4 .%5 ,QF 7HFKQRORJ\ (QJLQHHULQJ 75th Percentile 16.9 Median 11.4 25th Percentile 6.5 Textron Inc. 13.8 7H[WURQ 3HUFHQWLOH 5DQN 7KH IRUHJRLQJ WDOHQW SHHU JURXS UHÀHFWV FKDQJHV PDGH WR WKH WDOHQW SHHU JURXS ZKLFK ZDV UHSRUWHG LQ RXU 3UR[\ 6WDWHPHQW DQG UHIHUHQFHG LQ VHWWLQJ WDUJHW SD\ IRU 7KH FKDQJHV ZHUH WR UHPRYH )HGHUDO 0RJXO +ROGLQJV &RUSRUDWLRQ because it was acquired, and add Harris Corporation, which is also a current performance peer.