2019 Proxy Statement

TEXTRON 2019 PROXY STATEMENT 39 OUTSTANDING EQUITY AWARDS AT 2018 FISCAL YEAR-END The following table sets forth information with respect to the NEOs concerning unexercised options, stock awards that have not yet vested, and equity incentive plan awards as of the end of our 201 ¿scal year. (1) Stock option awards associated with each annual grant vest ratably over three years on each anniversary of the grant date. (2) The exercise price of stock options is equal to the closing price of our common stock on the date of grant. ( ) The following types of stock awards are shown in this table: (a) “ PSU ” refers to performance share units. These units reward achievement of long term goals over a three year performance period, vesting at the end of the third ¿scal year. They are settled in cash and valued based on the average closing price of Textron common stock for the ¿rst ten trading days of the ¿scal year following vesting. Further information about these awards can be found in the CD&A. (b) “ RSU ” refers to restricted stock units. RSUs vest over ¿ve years, in three equal annual installments, beginning on the third anniversary of the grant date. Upon vesting, common stock will be issued to the executive. RSUs are granted with the right to receive dividend equivalents. ( ) The market value of RSUs that have not vested as of December 29, 201 was calculated using the ¿scal year end closing share price of $ 5.65 multiplied by the number of unvested units as of that date. (5) PSUs granted in 2017 and 201 vest, to the extent earned, on December 2 , 2019 and January 2, 2021, respectively. The market value of PSUs that have not vested as of year end 201 was calculated using the ¿scal year end closing share price of $ 5.65 multiplied by the number of unvested units assuming that 100 of the units are earned and assuming a median TSR performance modi¿er for the three year performance period (representing the target performance level), except with respect to Ms. Duffy’s 2017 PSUs which are not subject to the TSR modi¿er. Grant Date (1) Number of Securities Underlying Unexercised Options (#) Exercisable Number of Securities Underlying Unexercised Options (#) Unexercisable Option Exercise Price ($) (2) Option Expiration Date Type of Stock Award (3) Grant Year Number of Shares or Units of Stock That Have Not Vested (#) Market Value of Shares or Units of Stock That Have Not Vested ($) (4) Equity Incentive Plan Awards: Number of Unearned Shares, Units, or Other Rights That Have Not Vested (#) Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units, or Other Rights That Have Not Vested ($) (5) Name Scott C. Donnelly Frank T. Connor E. Robert Lupone Julie G. Duffy 3/1/2018 0 193,820 58.24 3/1/2028 PSU 2018 88,582 3,235,015 3/1/2017 73,207 146,412 49.58 3/1/2027 RSU 2018 53,149 2,426,252 3/1/2016 159,052 79,526 34.50 3/1/2026 PSU 2017 100,583 3,673,291 3/1/2015 194,546 0 44.31 3/1/2025 RSU 2017 60,350 2,754,978 3/1/2014 222,319 0 39.70 3/1/2024 RSU 2016 71,700 3,273,105 3/1/2013 243,157 0 28.47 3/1/2023 RSU 2015 41,716 1,904,335 3/1/2012 300,000 0 27.76 3/1/2022 RSU 2014 23,630 1,078,710 3/1/2011 227,766 0 26.25 3/1/2021 3/1/2010 235,602 0 20.21 3/1/2020 3/1/2018 0 56,179 58.24 3/1/2028 PSU 2018 25,676 937,688 3/1/2017 20,864 41,727 49.58 3/1/2027 RSU 2018 15,405 703,238 3/1/2016 45,812 22,906 34.50 3/1/2026 PSU 2017 28,666 1,046,882 3/1/2015 56,705 0 44.31 3/1/2025 RSU 2017 17,199 785,134 3/1/2014 63,361 0 39.70 3/1/2024 RSU 2016 20,652 942,764 3/1/2013 72,000 0 28.47 3/1/2023 RSU 2015 12,158 555,013 3/1/2012 91,607 0 27.76 3/1/2022 RSU 2014 6,734 307,407 3/1/2011 69,566 0 26.25 3/1/2021 3/1/2010 83,933 0 20.21 3/1/2020 3/1/2018 0 24,906 58.24 3/1/2028 PSU 2018 11,383 415,707 3/1/2017 9,352 18,704 49.58 3/1/2027 RSU 2018 6,829 311,744 3/1/2016 20,728 10,363 34.50 3/1/2026 PSU 2017 12,849 469,245 3/1/2015 26,114 0 44.31 3/1/2025 RSU 2017 7,709 351,916 3/1/2014 29,752 0 39.70 3/1/2024 RSU 2016 9,344 426,554 3/1/2013 34,831 0 28.47 3/1/2023 RSU 2015 5,599 255,594 RSU 2014 3,162 144,345 3/1/2018 0 14,044 58.24 3/1/2028 PSU 2018 6,419 234,422 3/1/2017 2,087 4,173 49.58 3/1/2027 RSU 2018 3,851 175,798 3/1/2016 4,673 2,336 34.50 3/1/2026 PSU 2017 2,293 104,675 3/1/2015 5,727 0 44.31 3/1/2025 RSU 2017 1,720 78,518 RSU 2016 2,106 96,139 RSU 2015 1,228 56,058 RSU 2014 697 31,818 Outstanding Equity Awards at 2018 Fiscal Year-End Option Awards Stock Awards