Textron 2021 Proxy Statement

42 TEXTRON 2021 PROXY STATEMENT (3) The amounts that appear in this column represent the grant date fair value of stock options granted during the fiscal year. The grant date fair values have been determined based on the assumptions and methodologies set forth in Note 15 Share-Based Compensation in Textron’s Annual Report on Form 10-K for the fiscal year ended January 2, 2021. The number of shares underlying the stock options granted to each NEO during 2020 is detailed in the Grants of Plan- Based Awards in Fiscal 2020 table on page 43. (4) The amounts in this column reflect annual incentive compensation earned under Textron’s annual incentive compensation program. (5) The amounts in this column are attributable to the change in actuarial present value from December 31, 2019 to December 31, 2020 of accumulated pension benefits under all defined benefit plans in which the NEOs participate. For Ms. Duffy, this column also includes $231 in above-market non-qualified deferred compensation earnings that were posted to her interest-bearing account under the Deferred Income Plan for Textron Executives. Earnings are considered “above-market” if they were higher than 120% of the long-term applicable federal rate with compounding. (6) The amounts in this column include the value of other benefits and the incremental cost to Textron in 2020 of providing various perquisites in 2020, as detailed below: Benefit Type Mr. Donnelly Mr. Connor Mr. Lupone Ms. Duffy Spillover Savings Plan Contribution (a) $40,419 $32,865 $66,061 $14,115 Contributions to Textron Savings Plan 14,250 14,250 25,650 14,250 Contributions to Retirement Plans 5,700 5,700 0 5,700 Perquisites (b) 18,745 17,856 0 0 Total $79,114 $70,671 $91,711 $34,065 (a) These amounts represent the value of cash-settled Textron stock units credited to the NEO’s Spillover Savings Plan(“SSP”) account during the year. For Mr. Lupone, who is not eligible for a defined benefit pension plan, the Company credits an interest-bearing Moody’s account within the SSP with an amount equal to 4% of eligible compensation, reduced by the contribution that was made by the Company under the Textron Savings Plan. (b) This amount includes the following: (i) $3,000 for parking for each of Mr. Donnelly and Mr. Connor, (ii) $4,785 for an annual physical exam for Mr. Donnelly, (iii) $10,960 for Mr. Donnelly’s usage of corporate aircraft to attend meetings of an outside board of directors on which he serves at the request of the Company’s board which is deemed to be personal travel under SEC rules, (iv) $3,192 for the incremental cost to the Company of corporate aircraft dropping off or picking up Mr. Connor at an alternative airport for his personal convenience and (v) $11,664 for Mr. Connor, representing the Company paid portion of the costs for hangar space utilized by his personal aircraft. In addition, family members and invited guests of Mr. Donnelly occasionally fly as additional passengers on business flights. In those cases, the aggregate incremental cost to the Company is a de minimis amount and, as a result, no amount is reflected in the Summary Compensation Table. Textron values the personal use of corporate aircraft by using an incremental cost method that multiplies the hours flown on a personal flight by an hourly direct operating cost rate for the aircraft flown. The rate per flight hour is derived from the aircraft’s variable operating costs which include landing fees, fuel, hangar fees, maintenance, catering, security fees, crew expenses, de-icing costs and other direct operating expenses. The incremental cost of locating aircraft to the origin of a trip or returning aircraft from the completion of a trip are also included in the amount reported.