2019 Proxy Statement

42 TEXTRON 2019 PROXY STATEMENT Under the Textron Retirement Account Plan, Textron makes annual contributions to a participant’s account equal to 2 of eligible compensation up to the Internal Revenue Code limit, and the account balance is adjusted for investment gains and losses. The participant may receive the account in a lump sum or as an actuarially equivalent annuity upon termination of employment at any age. The value of any distribution from the Textron Retirement Account Plan offsets bene¿ts accrued after 2006 under the pension formula. Effective January 1, 2010, the TRP was closed to new entrants, and new employees, including Mr. Lupone, instead receive an annual company contribution to the Textron Savings Plan equal to of eligible compensation up to the Internal Revenue Code Limit. SPP: Spillover Pension Plan Textron maintains the Spillover Pension Plan (“SPP”) to compensate certain Textron executives for pension bene¿ts that would have been earned but for limitations imposed on tax quali¿ed plans under federal law. The formula for the SPP is the same as the formula for the de¿ned bene¿t portion of the quali¿ed plan (the TRP). Eligible compensation components include base salary and annual incentive compensation paid in a given year. The amount included in the formula equals the total of these components (whether or not deferred), less the Internal Revenue Code limit noted above ($275,000 in 201 ). Bene¿ts under the SPP also vest after ¿ve years of qualifying service, and are generally paid under the same age and service requirements as the de¿ned bene¿t portion of the TRP. This plan is unfunded and not quali¿ed for tax purposes. In 200 , an appendix was added to the SPP for certain designated participants hired on or after January 1, 200 , including Mr. Donnelly, to provide a “wrap around pension bene¿t.” This appendix will recognize an additional bene¿t service accrual identi¿ed in the offer letter of the designated participant and the resulting calculation will be offset by the prior employer age 65 bene¿t as described in the offer letter, and any quali¿ed and non quali¿ed age 65 bene¿t provided by Textron. Speci¿c to Mr. Donnelly, refer to the CD&A for details on his “wrap around” bene¿t. Effective January 1, 2010, the SPP was closed to new entrants except for those who were participants in the Textron Retirement Program on December 1, 2009. Mr. Lupone, therefore, is not eligible to participate in the SPP. TSPPSO: Textron Supplemental Pension Plan in Lieu of Stock Options The Textron Supplemental Pension Plan in Lieu of Stock Options (“TSPPSO”) is a pension enhancement bene¿t that was provided to a select group of employees whose stock option grants were reduced beginning in 200 . The plan increases pensionable earnings for these employees by approximately 10 15 . Bene¿ts under the TSPPSO also vest after ¿ve years of qualifying service, and are generally paid under the same age and service requirements as the de¿ned bene¿t portion of the TRP. This plan is unfunded and not quali¿ed for tax purposes. The TSPPSO is no longer open to new entrants. Based on Ms. Duffy’s position in 200 , she is the only NEO who is eligible to participate in the plan.