2019 Proxy Statement

TEXTRON 2019 PROXY STATEMENT 41 PENSION BENEFITS IN FISCAL 2018 The table below sets forth information on the pension bene¿ts for the NEOs under each of the Company’s pension plans: A brief description of each of the Company’s pension plans referenced above follows. TRP: Textron Retirement Program Textron’s retirement bene¿ts for U.S. salaried and eligible bargained employees, the Textron Retirement Program (“TRP”), is designed to be a “Àoor offset” arrangement which has two parts. The ¿rst is a traditional de¿ned pension bene¿t 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 de¿ned contribution bene¿t called the Textron Retirement Account Plan. The TRP is funded and tax quali¿ed. Bene¿ts 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), bene¿ts are based on a one percent annual bene¿t for eligible compensation up to the “covered compensation” level ($66, 9 in 201 ), 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 ($275,000 in 201 ). The bene¿t formula is calculated based on eligible employees’ highest consecutive ¿ve year average eligible compensation throughout their career at Textron. Provided an employee meets the ¿ve years of qualifying service to become vested in the TRP, the accumulated bene¿t earned during an employee’s career is payable in monthly installments after retirement. :hile the normal retirement age under the TRP is 65, eligible employees who meet de¿ned age and service criteria can retire and begin collecting a reduced bene¿t as early as age 55. Mr. Donnelly, Mr. Connor and Ms. Duffy qualify for the early retirement bene¿t under the TRP. (1) The present value of the accumulated bene¿t has been calculated consistent with the assumptions set forth in Note 1 Retirement Plans in Textron’s Annual Report on Form 10 . for the ¿scal year ended December 29, 201 . (2) Years of extra service granted to the executive by employment letter. ( ) Mr. Lupone is not eligible to participate in any of our pension plans. Plan Name TRP Spillover :rap Around TRP Spillover Add’l Credited Service N A TRP Spillover TSPPSO Number of Years of Credited Service 10.50 10.50 29.50 (2) 9. 2 9. 2 .00 (2) N A 21.50 21.50 21.50 Total Total Total Payments During Last Fiscal Year ($) 0 0 0 0 0 0 N A 0 0 0 Name Scott C. Donnelly Frank T. Connor E. Robert Lupone ( ) Julie G. Duffy Present Value of Accumulated BeneÀt ($) (1) ,91 ,169, 92 5,622,259 9,1 6,06 7,999 1, ,590 691, 2, 6 , 2 N A 6 0,725 7 7, 10 221, 7 1,6 0,022