TXT Textron Inc

2018 Proxy Statement and Notice of Annual Meeting of Shareholders Wednesday, April 25, 2018 at 11:00 a.m. 40 Westminster Street Providence, Rhode Island

NOTICE OF ANNUAL MEETING To the Shareholders of Textron Inc.: The 2018 annual meeting of shareholders of Textron Inc. will be held on Wednesday, April 25, 2018 at 11:00 a.m. at the &RPSDQ¶V SULQFLSDO H[HFXWLYH RI¿FH ORFDWHG DW 40 :HVWPLQVWHU 6WUHHW, 3URYLGHQFH, 5KRGH ,VODQG IRU WKH IROORZLQJ SXUSRVHV: 1. 7R HOHFW WKH HOHYHQ GLUHFWRU QRPLQHHV QDPHG LQ WKH SUR[ VWDWHPHQW WR KROG RI¿FH XQWLO WKH QH[W DQQXDO VKDUHKROGHUV¶ PHHWLQJ; 2. 7R DSSURYH 7H[WURQ¶V H[HFXWLYH FRPSHQVDWLRQ RQ DQ DGYLVRU EDVLV; 3. To ratify the appointment by the Audit Committee of Ernst & Young LLP DV 7H[WURQ¶V LQGHSHQGHQW UHJLVWHUHG SXEOLF DFFRXQWLQJ ¿UP IRU 2018; 4. If properly presented at the meeting, to consider and act upon two shareholder proposals, set forth beginning on page 51 in the accompanying proxy statement, which are opposed by the Board RI 'LUHFWRUV; DQG 5. To transact any other business as may properly come before the meeting or any adjournment or postponement of the meeting. You are entitled to vote all shares of common stock registered in your name at the close of business on February 26, 2018. If your shares are held in the name of your broker or bank and you wish to attend the meeting in person and vote your shares, your broker or bank must issue to you a proxy covering your shares. As permitted by the rules of the Securities and Exchange Commission, we are making our proxy materials available to shareholders primarily via the Internet, rather than mailing printed copies of these materials to shareholders. On March 7, 2018, we mailed to many of our shareholders a Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access and review our proxy materials, including our Proxy Statement and the Annual Report to Shareholders, and vote online. This process is designed to expedite shareholders’ receipt of proxy materials, lower the cost of the annual meeting, and help conserve natural resources. If you received a Notice by mail, you will not receive a printed copy of the proxy materials unless you request one. If you would prefer to receive printed proxy materials, please follow the instructions included in the Notice. Shareholders who requested paper copies of the proxy materials or previously elected to receive our proxy materials electronically did not receive the Notice and will receive the proxy materials in the format requested. Whether or not you plan to attend the meeting, we urge you to cast your vote as soon as possible so that your shares may be represented at the meeting. You may vote your shares via the Internet or by telephone by following the instructions included on the Notice. Alternatively, if you received paper copies of the proxy materials by mail, you can also vote by mail by following the instructions on the proxy card. A list of shareholders entitled to vote at the 2018 annual meeting will be open to examination by any shareholder for any SXUSRVH JHUPDQH WR WKH PHHWLQJ, IRU WHQ GDV SULRU WR WKH PHHWLQJ, DW 7H[WURQ¶V SULQFLSDO H[HFXWLYH RI¿FH, 40 :HVWPLQVWHU Street, Providence, Rhode Island 02903. By order of the Board of Directors, E. Robert Lupone Executive Vice President, General Counsel and Secretary Providence, Rhode Island March 7, 2018 1 TEXTRON 2018 PROXY STATEMENT Date and Time Wednesday, April 25, 2018 11:00 a.m. Eastern Daylight Time Place &RPSDQ·V SULQFLSDO H[HFXWLYH RIÀFH 40 Westminster Street Providence, Rhode Island

TEXTRON 2018 PROXY STATEMENT 3 YOUR VOTE IS IMPORTANT Brokers are not permitted to vote on the election of directors or on certain other proposals without instructions IURP WKH EHQHÀFLDO RZQHU 7KHUHIRUH, LI RXU VKDUHV DUH KHOG LQ WKH QDPH RI RXU EURNHU RU EDQN, LW LV LPSRUWDQW that you vote. We encourage you to vote promptly, even if you intend to attend the annual meeting. IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON APRIL 25, 2018: The Company’s Proxy Statement for the 2018 Annual Meeting of Shareholders, the Annual Report to Shareholders IRU WKH ¿VFDO HDU HQGHG 'HFHPEHU 30, 2017 DQG WKH &RPSDQ¶V $QQXDO 5HSRUW RQ )RUP 10-. IRU WKH ¿VFDO HDU HQGHG 'HFHPEHU 30, 2017 DUH DYDLODEOH DW KWWS //LQYHVWRU.WH[WURQ.FRP/LQYHVWRUV/LQYHVWRU-UHVRXUFHV. 7KH &RPSDQ ZLOO SURYLGH E PDLO, ZLWKRXW FKDUJH, D FRS RI LWV $QQXDO 5HSRUW RQ )RUP 10-., DW WKH UHTXHVW RI VKDUHKROGHUV. 3OHDVH GLUHFW DOO LQTXLULHV WR WKH &RPSDQ DW (401) 457-2353 RU E VXEPLWWLQJ D ZULWWHQ UHTXHVW WR WKH 6HFUHWDU DW 7H[WURQ ,QF., 40 Westminster Street, Providence, Rhode Island 02903.

Contents Information About the Annual Meeting 1 Shareholders Who May Vote 1 Voting 1 Changing or Revoking a Proxy 2 Costs of Proxy Solicitation 2 Attending the Meeting 2 %RDUG 0HPEHUVKLS 4XDOL¿FDWLRQV 3 Corporate Governance 9 Director Independence 10 Meeting Attendance 11 Board Committees 11 Corporate Governance Guidelines and Policies 13 Shareholder Communications to the Board 13 Changes to Director Compensation Program for 2018 14 $QWL-+HGJLQJ DQG 3OHGJLQJ 3ROLF 15 6HFWLRQ 16(D) %HQH¿FLDO 2ZQHUVKLS 5HSRUWLQJ &RPSOLDQFH 17 Compensation Committee Report 19 4 TEXTRON 2018 PROXY STATEMENT Audit Committee Report18 Security Ownership16 Director Stock Ownership Requirements15 Compensation of Directors13 Code of Ethics13 Risk Oversight12 Other Directorships11 Leadership Structure10 Governance Highlights9 Nominees for Director3 Election of Directors3 &RQ¿GHQWLDO 9RWLQJ 3ROLF 2 Required Vote2 Savings Plan Participants1 Internet Availability of Proxy Materials1 General1

Compensation Discussion and Analysis 20 Overview and Objectives of Executive Compensation Program 22 Incentive Compensation 26 Risks Related to Compensation 31 Role of Independent Compensation Consultant 31 $QWL-+HGJLQJ DQG 3OHGJLQJ 3ROLF 32 Compensation Arrangements Relating to Termination of Employment 32 Executive Compensation 34 *UDQWV RI 3ODQ-%DVHG $ZDUGV LQ )LVFDO 2017 36 Option Exercises and Stock Vested in Fiscal 2017 38 1RQTXDOL¿HG 'HIHUUHG &RPSHQVDWLRQ 41 Pay Ratio 46 Evaluation of Risk in Compensation Plans 47 Advisory Vote to Approve Textron’s Executive Compensation 49 Fees to Independent Auditors 50 Shareholder Proposal Regarding Director Tenure Limit 53 Shareholder Proposals and Other Matters for 2019 Annual Meeting 55 5 TEXTRON 2018 PROXY STATEMENT Delivery of Documents to Shareholders Sharing an Address56 Other Matters to Come Before the Meeting55 Shareholder Proposal Regarding Shareholder Action by Written Consent51 5DWLÀFDWLRQ RI $SSRLQWPHQW RI ,QGHSHQGHQW 5HJLVWHUHG 3XEOLF $FFRXQWLQJ )LUP 50 Transactions with Related Persons48 Equity Compensation Plan Information47 Potential Payments Upon Termination or Change in Control42 3HQVLRQ %HQH¿WV LQ )LVFDO 2017 39 2XWVWDQGLQJ (TXLW $ZDUGV DW 2017 )LVFDO <HDU-(QG 37 Summary Compensation Table34 Tax Considerations33 Clawback Policy32 Stock Ownership Requirements31 Other Compensation Programs31 Performance Analysis27 Target Pay23 Executive Summary20

INFORMATION ABOUT THE ANNUAL MEETING GENERAL 7KLV SUR[ VWDWHPHQW, ZKLFK LV ¿UVW EHLQJ PDGH DYDLODEOH WR VKDUHKROGHUV RQ RU DERXW 0DUFK 7, 2018, LV IXUQLVKHG LQ connection with the solicitation by the Board of Directors of Textron Inc. of proxies to be voted at the annual meeting of VKDUHKROGHUV WR EH KHOG RQ $SULO 25, 2018, DW 11:00 D.P. DW WKH &RPSDQ¶V SULQFLSDO H[HFXWLYH RI¿FH, ORFDWHG DW 40 :HVWPLQVWHU Street, Providence, Rhode Island, and at any adjournments or postponements thereof. SHAREHOLDERS WHO MAY VOTE All shareholders of record at the close of business on February 26, 2018 will be entitled to vote. As of February 26, 2018, Textron had outstanding 259,333,523 shares of common stock, each of which is entitled to one vote with respect to each matter to be voted upon at the meeting. Proxies are solicited to give all shareholders who are entitled to vote on the matters that come before the meeting the opportunity to do so whether or not they attend the meeting in person. INTERNET AVAILABILITY OF PROXY MATERIALS As permitted by the rules of the Securities and Exchange Commission, we are making our proxy materials available to shareholders primarily via the Internet, rather than mailing printed copies of these materials to shareholders. On March 7, 2018, we mailed to many of our shareholders a Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access and review our proxy materials, including our Proxy Statement and the Annual Report to Shareholders, and vote online. This process is designed to expedite shareholders’ receipt of proxy materials, lower the cost of the annual meeting, and help conserve natural resources. If you received a Notice by mail, you will not receive a printed copy of the proxy materials unless you request one. If you would prefer to receive printed proxy materials, please follow the instructions included in the Notice. Shareholders who requested paper copies of the proxy materials or previously elected to receive our proxy materials electronically did not receive the Notice and will receive the proxy materials in the format requested. VOTING 6KDUHKROGHUV RI UHFRUG PD YRWH YLD WKH ,QWHUQHW RU E XVLQJ WKH WROO-IUHH WHOHSKRQH QXPEHU OLVWHG RQ WKH SUR[ FDUG RU 1RWLFH. Please follow the instructions for Internet or telephone voting provided on the proxy card or Notice. Alternatively, if you received paper copies of the proxy materials by mail, you can vote by mail by following the instructions on the proxy card. If you vote via the Internet or by telephone, please do not return a signed proxy card. Shareholders who hold their shares through a bank or broker can vote via the Internet or by telephone if these options are offered by the bank or broker. If you received the proxy materials in paper form from your bank or broker, the materials include a voting instruction card so you can instruct the holder of record on how to vote your shares. If voting by mail, please complete, sign, date and return your proxy card enclosed with the proxy statement in the DFFRPSDQLQJ SRVWDJH-SDLG HQYHORSH. <RX FDQ VSHFLI KRZ RX ZDQW RXU VKDUHV YRWHG RQ HDFK SURSRVDO E PDUNLQJ WKH appropriate boxes on the proxy card. If your proxy card is signed and returned without specifying a vote or an abstention on any proposal, it will be voted according to the recommendation of the Board of Directors on that proposal. That recommendation is shown for each proposal on the proxy card. You also may vote in person at the meeting. If your shares are held in the name of your broker or bank and you wish to vote in person at the meeting, you must request your broker or bank to issue you a proxy covering your shares. SAVINGS PLAN PARTICIPANTS If you are a participant in a Textron savings plan with a Textron stock fund as an investment option, the accompanying proxy card shows the number of shares allocated to your account under the plan. When you vote via the Internet or by telephone, or your proxy card is returned properly signed, the plan trustee will vote your proportionate interest in the plan shares in the manner you direct, or if you vote by mail and make no direction, in proportion to directions received from the other plan participants (except for any shares allocated to your Tax Credit Account under the Textron Savings Plan which will be voted only as you direct). All GLUHFWLRQV ZLOO EH KHOG LQ FRQ¿GHQFH. 1 TEXTRON 2018 PROXY STATEMENT

CHANGING OR REVOKING A PROXY Whether voting by mail, via the Internet or by telephone, if you are a shareholder of record, you may change or revoke your proxy at any time before it is voted by submitting a new proxy with a later date, voting via the Internet or by telephone at a later time, delivering a written notice of revocation to Textron’s Secretary, or voting in person at the meeting. If your shares are held in the name of your broker or bank, you may change or revoke your voting instructions by contacting the bank or EURNHUDJH ¿UP RU RWKHU QRPLQHH KROGLQJ WKH VKDUHV RU E REWDLQLQJ D OHJDO SUR[ IURP VXFK LQVWLWXWLRQ DQG YRWLQJ LQ SHUVRQ at the annual meeting. REQUIRED VOTE A quorum is required to conduct business at the meeting. A quorum requires the presence, in person or by proxy, of the KROGHUV RI D PDMRULW RI WKH LVVXHG DQG RXWVWDQGLQJ VKDUHV HQWLWOHG WR YRWH DW WKH PHHWLQJ $EVWHQWLRQV DQG EURNHU ³QRQ-YRWHV´ DUH FRXQWHG DV SUHVHQW DQG HQWLWOHG WR YRWH IRU SXUSRVHV RI GHWHUPLQLQJ D TXRUXP $ EURNHU QRQ-YRWH RFFXUV ZKHQ RX IDLO WR provide voting instructions to your broker for shares owned by you but held in the name of your broker and your broker does not have authority to vote without instructions from you. Under those circumstances, your broker may be authorized to vote for RX ZLWKRXW RXU LQVWUXFWLRQV RQ URXWLQH PDWWHUV EXW LV SURKLELWHG IURP YRWLQJ ZLWKRXW RXU LQVWUXFWLRQV RQ QRQ-URXWLQH PDWWHUV 7KH UDWL¿FDWLRQ RI LQGHSHQGHQW SXEOLF DFFRXQWDQWV LV D URXWLQH PDWWHU RQ ZKLFK RXU EURNHU PD YRWH RXU VKDUHV ZLWKRXW RXU LQVWUXFWLRQV 1RQ-URXWLQH PDWWHUV LQFOXGH WKH HOHFWLRQ RI GLUHFWRUV, WKH DGYLVRU YRWH WR DSSURYH 7H[WURQ¶V H[HFXWLYH FRPSHQVDWLRQ DQG WKH VKDUHKROGHU SURSRVDOV 7KRVH LWHPV IRU ZKLFK RXU EURNHU FDQQRW YRWH UHVXOW LQ EURNHU QRQ-YRWHV Election of each of the nominees for director requires a vote of the majority of the votes cast at the meeting, which means that the number of shares voted “for” a nominee for director must exceed the number of shares voted “against” that nominee. $EVWHQWLRQV DQG EURNHU QRQ-YRWHV DUH QRW FRXQWHG IRU WKLV SXUSRVH DQG ZLOO KDYH QR HIIHFW RQ WKH RXWFRPH RI WKH HOHFWLRQ $SSURYDO RI DOO RWKHU PDWWHUV WR EH YRWHG RQ DW WKH PHHWLQJ UHTXLUHV WKH DI¿UPDWLYH YRWH RI D PDMRULW RI WKH VKDUHV SUHVHQW LQ person or represented by proxy and entitled to vote on the matter. Abstentions will have the same effect as votes “against” the SURSRVDO, DQG EURNHU QRQ-YRWHV (ZKHQ DSSOLFDEOH) ZLOO KDYH QR HIIHFW RQ WKH RXWFRPH RI WKH YRWH COSTS OF PROXY SOLICITATION Textron pays the cost of this solicitation of proxies. Textron will request that persons who hold shares for others, such as EDQNV DQG EURNHUV, VROLFLW WKH RZQHUV RI WKRVH VKDUHV DQG ZLOO UHLPEXUVH WKHP IRU WKHLU UHDVRQDEOH RXW-RI-SRFNHW H[SHQVHV IRU those solicitations. In addition to solicitation by mail, Textron employees may solicit proxies by telephone, by electronic means DQG LQ SHUVRQ, ZLWKRXW DGGLWLRQDO FRPSHQVDWLRQ IRU WKHVH VHUYLFHV 7H[WURQ KDV KLUHG $OOLDQFH $GYLVRUV, //& RI %ORRP¿HOG, New Jersey, a proxy solicitation organization, to assist in this solicitation process for a fee of $15,500, plus reasonable RXW-RI-SRFNHW H[SHQVHV CONFIDENTIAL VOTING POLICY 8QGHU 7H[WURQ¶V SROLF RQ FRQ¿GHQWLDO YRWLQJ, LQGLYLGXDO YRWHV RI VKDUHKROGHUV DUH NHSW FRQ¿GHQWLDO IURP 7H[WURQ¶V GLUHFWRUV, RI¿FHUV DQG HPSORHHV, H[FHSW IRU FHUWDLQ VSHFL¿F DQG OLPLWHG H[FHSWLRQV &RPPHQWV RI VKDUHKROGHUV ZULWWHQ RQ SUR[LHV RU ballots are transcribed and provided to Textron’s Secretary. Votes are counted by Broadridge Financial Solutions, Inc. and FHUWL¿HG E DQ LQGHSHQGHQW ,QVSHFWRU RI (OHFWLRQ ATTENDING THE MEETING If your shares are held in the name of your bank or broker and you plan to attend the meeting, please bring proof of ownership with you to the meeting. A bank or brokerage account statement showing that you owned voting stock of Textron on February 26, 2018 is acceptable proof to obtain admittance to the meeting. If you are a shareholder of record, no proof of RZQHUVKLS LV UHTXLUHG $OO VKDUHKROGHUV RU WKHLU SUR[LHV VKRXOG EH SUHSDUHG WR SUHVHQW JRYHUQPHQW-LVVXHG SKRWR LGHQWL¿FDWLRQ upon request for admission to the meeting. 2 TEXTRON 2018 PROXY STATEMENT

ELECTION OF DIRECTORS BOARD MEMBERSHIP QUALIFICATIONS The Board of Directors believes that the Board, as a whole, should possess a combination of skills, professional experience and diversity of backgrounds necessary to oversee the Company’s business. In addition, the Board believes that there are FHUWDLQ DWWULEXWHV WKDW HYHU GLUHFWRU VKRXOG SRVVHVV, DV UHÀHFWHG LQ WKH %RDUG¶V PHPEHUVKLS FULWHULD. $FFRUGLQJO, WKH %RDUG DQG WKH 1RPLQDWLQJ DQG &RUSRUDWH *RYHUQDQFH &RPPLWWHH FRQVLGHU WKH TXDOL¿FDWLRQV RI GLUHFWRUV DQG GLUHFWRU FDQGLGDWHV individually and in the broader context of the Board’s overall composition and the Company’s current and future needs. The Nominating and Corporate Governance Committee is responsible for developing and recommending criteria for director QRPLQHHV WR WKH %RDUG IRU DSSURYDO. $OO RI RXU FXUUHQW %RDUG PHPEHUV VKDUH FHUWDLQ TXDOL¿FDWLRQV DQG DWWULEXWHV FRQVLVWHQW with these criteria, which are set forth in the Company’s Corporate Governance Guidelines and Policies and are summarized below under “Board Committees—Nominating and Corporate Governance Committee”. These criteria include possessing VSHFL¿F VNLOOV DQG H[SHULHQFH DOLJQHG ZLWK 7H[WURQ¶V VWUDWHJLF GLUHFWLRQ DQG RSHUDWLQJ FKDOOHQJHV DQG WKDW FRPSOHPHQW WKH overall composition of the Board. In addition, each Board member has demonstrated core business competencies, including KLJK DFKLHYHPHQW DQG D UHFRUG RI VXFFHVV. $OO RI RXU %RDUG PHPEHUV DUH HQWKXVLDVWLF DERXW 7H[WURQ DQG GHYRWH VXI¿FLHQW WLPH to be fully engaged in their role as a Textron Board member. Finally, all of our directors, other than our current CEO, satisfy the independence standards established by the New York Stock Exchange. NOMINEES FOR DIRECTOR $W WKH 2018 DQQXDO PHHWLQJ, HOHYHQ GLUHFWRUV DUH WR EH HOHFWHG WR KROG RI¿FH XQWLO WKH 2019 DQQXDO PHHWLQJ DQG XQWLO WKHLU VXFFHVVRUV KDYH EHHQ HOHFWHG DQG TXDOL¿HG. $OO HOHYHQ QRPLQHHV DUH FXUUHQWO 7H[WURQ GLUHFWRUV. 0V. -DPHV ZDV DSSRLQWHG DV D GLUHFWRU E WKH %RDUG HIIHFWLYH -XO 1, 2017; VKH ZDV UHFRPPHQGHG E D WKLUG SDUW VHDUFK ¿UP ZKLFK DVVLVWHG WKH &RPSDQ in identifying and evaluating director candidates and to which the Company paid a fee. It is the intention of the persons named on the accompanying proxy card, unless otherwise instructed, to vote “for” each of the directors who have been nominated for election. If any director nominee is unable or unwilling to serve as a nominee at the time of the annual meeting, the persons named as proxies will vote for the balance of the nominees and may vote for a substitute nominee designated by the present Board. Ivor J. Evans, a director since 2003, will be retiring from our Board, effective as of the annual meeting, in accordance with our retirement policy. Textron’s directors have experience with businesses that operate in industries in which Textron operates, such as the defense, DYLDWLRQ, PDQXIDFWXULQJ DQG ¿QDQFH LQGXVWULHV, RU WKDW LQYROYH VNLOOV, VXFK DV PDUNHWLQJ RU SURGXFW EUDQGLQJ, WKDW DUH LQWHJUDO to Textron’s operations. Our Nominating and Corporate Governance Committee and our Board have determined that each of RXU GLUHFWRUV KDV WKH H[SHULHQFH, DWWULEXWHV DQG VNLOOV QHHGHG WR FROOHFWLYHO FRPSULVH DQ HIIHFWLYH DQG ZHOO-IXQFWLRQLQJ %RDUG. %LRJUDSKLFDO LQIRUPDWLRQ DERXW HDFK QRPLQHH, DV ZHOO DV KLJKOLJKWV RI WKH VSHFL¿F H[SHULHQFH, TXDOL¿FDWLRQV, DWWULEXWHV DQG VNLOOV of our individual Board members, are included below: 7H[WURQ LQ -XQH 2008 DV ([HFXWLYH 9LFH 3UHVLGHQW DQG &KLHI 2SHUDWLQJ 2I¿FHU DQG ZDV SURPRWHG WR 3 TEXTRON 2018 PROXY STATEMENT Scott C. Donnelly Director Since 2009 Chairman 0U. 'RQQHOO, 56, LV &KDLUPDQ, 3UHVLGHQW DQG &KLHI ([HFXWLYH 2I¿FHU RI 7H[WURQ. 0U. 'RQQHOO MRLQHG 3UHVLGHQW DQG &KLHI 2SHUDWLQJ 2I¿FHU LQ -DQXDU 2009. +H ZDV DSSRLQWHG WR WKH %RDUG RI 'LUHFWRUV LQ 2FWREHU 2009, EHFDPH &KLHI ([HFXWLYH 2I¿FHU RI 7H[WURQ LQ 'HFHPEHU 2009 DQG &KDLUPDQ RI WKH %RDUG LQ September 2010. Previously, Mr. Donnelly was the President and CEO of General Electric (GE) Company’s Aviation business unit, a position he had held since July 2005. GE’s Aviation business unit is a leading maker of commercial and military jet engines and components as well as integrated digital, electric power and mechanical systems for aircraft. Prior to July 2005, Mr. Donnelly served as Senior Vice President of *( *OREDO 5HVHDUFK, RQH RI WKH ZRUOG¶V ODUJHVW DQG PRVW GLYHUVL¿HG LQGXVWULDO UHVHDUFK RUJDQL]DWLRQV ZLWK facilities in the U.S., India, China and Germany and held various other management positions since joining GE in 1989. In 2013, Mr. Donnelly joined the board of directors of Medtronic plc. ([SHULHQFH, 4XDOLÀFDWLRQV, $WWULEXWHV DQG 6NLOOV ‡ 6LJQL¿FDQW H[SHULHQFH LQ WKH DHURVSDFH DQG GHIHQVH VHFWRU • Deep operational experience in innovation, manufacturing, sales and marketing, portfolio management, talent development and business processes ‡ )LUVW-KDQG, UHDO-WLPH H[SHULHQFH LQ, DQG XQGHUVWDQGLQJ RI, 7H[WURQ RSHUDWLRQV

proprietary plastic resins and was formerly known as Cargill Dow LLC, until her retirement in January &RPSDQ D GLYHUVL¿HG FKHPLFDO FRPSDQ 6KH MRLQHG 'RZ LQ 1973 DQG KHOG YDULRXV PDQDJHPHQW DQG &KLHI ([HFXWLYH 2I¿FHU RI &DUJLOO 'RZ //& DW WKH WLPH DQ HTXDO MRLQW YHQWXUH EHWZHHQ 'RZ DQG 2I¿FHU RI 1DWXUH:RUNV LQ )HEUXDU 2005 IROORZLQJ &DUJLOO¶V DFTXLVLWLRQ RI 'RZ¶V LQWHUHVW LQ &DUJLOO provider of services supporting the health care industry. He joined Cardinal Health in April 2006 September 2009. Prior to joining Cardinal Health he was Vice Chairman of the Board, P&G Family 4 TEXTRON 2018 PROXY STATEMENT R. Kerry Clark Director Since 2003 Audit Committee (Chair) 0U &ODUN 65 LV WKH UHWLUHG &KDLUPDQ DQG &KLHI ([HFXWLYH 2I¿FHU RI &DUGLQDO +HDOWK ,QF D OHDGLQJ DV 3UHVLGHQW DQG &KLHI ([HFXWLYH 2I¿FHU EHFDPH &KDLUPDQ LQ 1RYHPEHU 2007 DQG UHWLUHG LQ Health, and a director of The Procter and Gamble Company, which markets consumer products in RYHU 140 FRXQWULHV IURP 2002-2006 +H MRLQHG 3URFWHU DQG *DPEOH LQ 1974 DQG VHUYHG LQ YDULRXV key executive positions before becoming Vice Chairman of the Board in 2002, and held that position until leaving the company in April 2006. Mr. Clark became a director of General Mills, Inc. in 2009, a director of Avnet, Inc. in 2012 and a director of Anthem, Inc. in 2014. He is also a director of Hauser 3ULYDWH (TXLW //& DQ LQYHVWPHQW ¿UP ([SHULHQFH, 4XDOLÀFDWLRQV, $WWULEXWHV DQG 6NLOOV • Extensive expertise in establishing brand equity worldwide and extending strategic initiatives globally • Leadership skills in enhancing customer service and advancing customer relationships ‡ 6LJQL¿FDQW H[SHULHQFH LQ FRUSRUDWH JRYHUQDQFH WDOHQW GHYHORSPHQW FKDQJH PDQDJHPHQW marketing and business development • Audit Committee Financial Expert Kathleen M. Bader Director Since 2004 Lead Director Nominating and Corporate Governance Committee (Chair) 0V %DGHU 67 ZDV 3UHVLGHQW DQG &KLHI ([HFXWLYH 2I¿FHU RI 1DWXUH:RUNV //& ZKLFK PDNHV 2006. Formerly she was a Business President of a $4.2 billion plastics portfolio at the Dow Chemical positions in Dow’s global and North American operations, before becoming Chairman, President Cargill Incorporated, in February 2004. She assumed the position of President and Chief Executive Dow. Ms. Bader previously served as a director of Tyson Foods, Inc., from 2011 to 2015. She also served for seven years on President Bush’s Homeland Security Advisory Council. ([SHULHQFH, 4XDOLÀFDWLRQV, $WWULEXWHV DQG 6NLOOV • Comprehensive experience in strategic planning and change management • Expertise in managing strategic business process implementation within global industrial business environments • Extensive experience in advancing customer loyalty and employee satisfaction • Expertise in expansion of international business

Commandant of the Marine Corps from 2006 through his retirement in 2010 and concurrently as DV 'LUHFWRU RI 2SHUDWLRQV (--3) RQ WKH -RLQW &KLHIV RI 6WDII $PRQJ KLV SUHYLRXV SRVWLQJV ZHUH combat tours in Iraq), Commanding General of the 1st Marine Division, and President of the Marine PXOWL-VWDWH EDQN KROGLQJ FRPSDQ +H ZDV QDPHG &KDLUPDQ, 3UHVLGHQW DQG &KLHI ([HFXWLYH 2I¿FHU DQG WKH WLWOH RI &KLHI ([HFXWLYH 2I¿FHU LQ 2007 DQG UHWLULQJ LQ 0DUFK 2009 0U )LVK DOVR VHUYHV DV Tiffany & Co. (since 2008) and previously served as a director of National Bank Holdings Corporation 5 TEXTRON 2018 PROXY STATEMENT Lawrence K. Fish Director Since 1999 Nominating and Corporate Governance Committee Organization and Compensation Committee 0U )LVK, 73, LV WKH UHWLUHG &KDLUPDQ DQG &KLHI ([HFXWLYH 2I¿FHU RI &LWL]HQV )LQDQFLDO *URXS, ,QF , D upon joining the bank in 1992 and held that position until relinquishing the title of President in 2005 &KDLUPDQ RI WKH %RDUG RI 'LUHFWRUV RI +RXJKWRQ 0LIÀLQ +DUFRXUW (VLQFH 2010) DQG DV D GLUHFWRU RI from 2010 through 2015. ([SHULHQFH, 4XDOLÀFDWLRQV, $WWULEXWHV DQG 6NLOOV ‡ 6LJQL¿FDQW OHDGHUVKLS H[SHULHQFH LQ WKH ¿QDQFLDO VHFWRU ‡ ([WHQVLYH H[SHULHQFH LQ EDQNLQJ DQG FRPPHUFLDO ¿QDQFH, FRUSRUDWH ¿QDQFH DQG WKH GRPHVWLF DQG LQWHUQDWLRQDO ¿QDQFLDO PDUNHWV • Expertise in corporate governance and risk oversight James T. Conway Director Since 2011 Audit Committee Nominating and Corporate Governance Committee Mr. Conway, 70, is a retired General in the United States Marine Corps who served as the 34th a member of the Joint Chiefs of Staff. Prior to being named Commandant, Mr. Conway served Commanding General of I Marine Expeditionary Force from 2002 through 2004 (which involved two Corps University. Mr. Conway was named a director of xG Technology, Inc. in 2015. ([SHULHQFH, 4XDOLÀFDWLRQV, $WWULEXWHV DQG 6NLOOV • Experience managing complex operational and strategic issues • Deep understanding of the U.S. military • Broad knowledge of the defense industry and international security issues • Demonstrated leadership and management skills

support service provider of mobile equipment, industrial components and power systems, a position SXEOLFO-WUDGHG &DQDGLDQ IRUHVW SURGXFWV FRPSDQ VHUYLQJ LQ WKDW FDSDFLW IURP 1991 XQWLO 1RYHPEHU producer of paper and tissue, as a consultant in corporate strategic planning, serving in that capacity since 2011, and he previously served as a director of CAE Inc. from 2006 through 2017. a global security and aerospace company. He joined Lockheed in 1975 and became Executive Vice 3UHVLGHQW & *HQHUDO 0DQDJHU )-22 5DSWRU 3URJUDP ,Q 2005 KH EHFDPH ([HFXWLYH 9LFH 3UHVLGHQW² RI WKH &-130 SURJUDP LQWHUQDWLRQDO H[SDQVLRQ RI WKH )-16 SURJUDP DQG WKH GHYHORSPHQW DQG GHOLYHU RI 2013-2014 SULRU WR 7H[WURQ¶V DFTXLVLWLRQ RI WKH %HHFKFUDIW EXVLQHVV 6 TEXTRON 2018 PROXY STATEMENT Ralph D. Heath Director Since 2017 Audit Committee Organization and Compensation Committee Mr. Heath, 69, is the retired Executive Vice President—Aeronautics of Lockheed Martin Corporation, 3UHVLGHQW & &KLHI 2SHUDWLQJ 2I¿FHU $HURQDXWLFV LQ 1999 XQWLO KLV DSSRLQWPHQW LQ 2002 DV ([HFXWLYH 9LFH Aeronautics, a role he held until his retirement in 2012. During his tenure, Mr. Heath led the revitalization WKH )-22 DQG )-35 ¿JKWHU DLUFUDIW 0U +HDWK VHUYHG RQ WKH %RDUG RI 'LUHFWRUV RI +DZNHU %HHFKFUDIW IURP ([SHULHQFH, 4XDOLÀFDWLRQV, $WWULEXWHV DQG 6NLOOV • Extensive expertise in developing and growing business within aerospace and defense industry • Deep understanding of working with the Department of Defense, including government defense program management ‡ 6LJQL¿FDQW H[SHULHQFH LQ LQWHUQDWLRQDO EXVLQHVV GHYHORSPHQW LQ DHURVSDFH DQG GHIHQVH PDUNHWV • Audit Committee Financial Expert Paul E. Gagné Director Since 1995 Audit Committee Organization and Compensation Committee Mr. Gagné, 71, recently retired as Chairman of Wajax Corporation, a leading Canadian distributor and KH KDG KHOG VLQFH 2006 +H SUHYLRXVO ZDV 3UHVLGHQW DQG &KLHI ([HFXWLYH 2I¿FHU RI $YHQRU ,QF D 1997 ZKHQ KH OHIW WKH FRPSDQ ,Q 1998 0U *DJQp MRLQHG .UXJHU ,QF D &DQDGLDQ SULYDWHO KHOG until December 2002. He is also a director of Norbord Inc. (formerly, Ainsworth Lumber Co. Ltd.) ([SHULHQFH, 4XDOLÀFDWLRQV, $WWULEXWHV DQG 6NLOOV ‡ 6LJQL¿FDQW H[HFXWLYH PDQDJHPHQW DQG ¿QDQFLDO PDQDJHPHQW H[SHULHQFH • Expertise in corporate strategic planning and risk management • Considerable experience with Canadian business opportunities and practices and other international business opportunities • Audit Committee Financial Expert

Ms. James, 59, is the retired 23rd Secretary of the United States Air Force, as position she held from December 2013 to January 2017. Prior to her role as Secretary of the Air Force, Ms. James held YDULRXV H[HFXWLYH SRVLWLRQV GXULQJ D 12-HDU WHQXUH DW 6FLHQFH $SSOLFDWLRQV ,QWHUQDWLRQDO &RUSRUDWLRQ (SAIC), a provider of services and solutions in the areas of defense, health, energy, infrastructure, intelligence, surveillance, reconnaissance and cybersecurity to agencies of the U.S. Department of Defense (DoD), the intelligence community, the U.S. Department of Homeland Security, foreign governments and other customers, most recently serving as Sector President, Technical and Engineering of the Government Solutions Group, a position she held from February through December of 2013. She previously served as SAIC’s Executive Vice President for Communications and Government Affairs, a position she assumed in 2010. Ms. James joined SAIC in 2002 as the Director of Homeland Security within SAIC, then in 2005 became Business Unit General Manager of the Command, Control, Communications, Computers, and Information Technology business unit. Earlier in her career, Ms. James served as Professional Staff Member for the House Armed Services Committee and as the DoD Assistant Secretary of Defense for Reserve Affairs. In August 2017, Ms. James became a director of Unisys Corporation. 0U. 7URWWHU 72 LV D PDQDJLQJ SDUWQHU RI *HQ1[ 360 &DSLWDO 3DUWQHUV D SULYDWH HTXLW EXRXW ¿UP IRFXVHG RQ LQGXVWULDO EXVLQHVV-WR-EXVLQHVV FRPSDQLHV. 0U. 7URWWHU ZDV 9LFH &KDLUPDQ RI *HQHUDO (OHFWULF &RPSDQ D GLYHUVL¿HG WHFKQRORJ PHGLD DQG ¿QDQFLDO VHUYLFHV FRPSDQ DQG 3UHVLGHQW DQG &KLHI ([HFXWLYH 2I¿FHU RI *( ,QGXVWULDO RQH RI *(¶V SULQFLSDO EXVLQHVVHV D UROH KH DVVXPHG LQ 2006 and held until his retirement in February 2008. Mr. Trotter previously was Executive Vice President of 2SHUDWLRQV RI *( DQG IURP 2004 WR 2006 KH VHUYHG DV 3UHVLGHQW DQG &KLHI ([HFXWLYH 2I¿FHU RI *( Consumer and Industrial, a role he assumed following the 2004 merger of GE’s Consumer Products, Industrial Systems and Supply businesses. He began his GE career in 1970 and held various production, technology and management positions in several GE businesses, before being named D *( 6HQLRU 9LFH 3UHVLGHQW DQG 3UHVLGHQW DQG &KLHI ([HFXWLYH 2I¿FHU RI ,QGXVWULDO 6VWHPV LQ 1998. Mr. Trotter also served as a director of PepsiCo, Inc. from 2008 through 2017 and serves as a director of Meritor, Inc. (since 2015). He also previously served on the supervisory board of Daimler A.G. (from 2009 through 2014). 7 TEXTRON 2018 PROXY STATEMENT Lloyd G. Trotter Director Since 2008 Organization and Compensation Committee (Chair) ([SHULHQFH, 4XDOLÀFDWLRQV, $WWULEXWHV DQG 6NLOOV ‡ 6LJQL¿FDQW OHDGHUVKLS H[SHULHQFH LQ D YDULHW RI ¿HOGV RI LPSRUWDQFH WR 7H[WURQ ‡ %URDG H[SHUWLVH LQ EXLOGLQJ SRZHUIXO EUDQGV ZRUOGZLGH LPSOHPHQWLQJ ZRUOG-FODVV SURFHVVHV and talent development • Comprehensive knowledge of manufacturing operations, supply chain management, corporate JRYHUQDQFH ¿QDQFH LQIRUPDWLRQ WHFKQRORJ DQG WKH GHYHORSPHQW RI LQWHUQDWLRQDO EXVLQHVV opportunities Deborah Lee James Director Since 2017 Audit Committee Nominating and Corporate Governance Committee ([SHULHQFH, 4XDOLÀFDWLRQV, $WWULEXWHV DQG 6NLOOV • Deep expertise in national security ‡ 6LJQL¿FDQW H[SHULHQFH LQ 8.6. JRYHUQPHQW SURFXUHPHQW DQG ORJLVWLFV • Demonstrated leadership and management skills ‡ ([WHQVLYH H[SHULHQFH LQ WKH FEHUVHFXULW ¿HOG

,QF XQWLO KLV UHWLUHPHQW LQ $SULO 2009 +DUOH-'DYLGVRQ ,QF LV WKH SDUHQW FRPSDQ IRU WKH JURXS RI VLQFH 'HFHPEHU 2004 DQG ZDV QDPHG 3UHVLGHQW DQG &KLHI ([HFXWLYH 2I¿FHU LQ $SULO 2005 +H 1990 WR $SULO 2005 DQG 3UHVLGHQW RI WKH +DUOH-'DYLGVRQ )RXQGDWLRQ ,QF IURP 1993 WR 2006 at the Massachusetts Institute of Technology where she has been a member of the faculty in the for Research, to which she was appointed in 2013, she has overall responsibility for research interdisciplinary research laboratories and centers, and plays a central role in research relationships $WPRVSKHULF DQG 3ODQHWDU 6FLHQFHV DW 0,7 IURP 2003-2011 6LQFH 1990 VKH KDV KHOG OHDGHUVKLS serving as Principal Investigator for NASA’s Gravity Recovery and Interior Laboratory (GRAIL) The Board of Directors recommends a vote “FOR” each of the director nominees (Items 1a through 1k on the proxy card). 8 TEXTRON 2018 PROXY STATEMENT Maria T. Zuber Director Since 2016 Nominating and Corporate Governance Committee Organization and Compensation Committee Ms. Zuber, 59, is the Vice President for Research and the E.A. Griswold Professor of Geophysics Department of Earth, Atmospheric and Planetary Sciences since 1995. In her role as Vice President administration and policy at MIT, overseeing MIT Lincoln Laboratory and more than a dozen with the federal government. Previously she served as the Head of the Department of Earth, UROHV DVVRFLDWHG ZLWK VFLHQWL¿F H[SHULPHQWV RU LQVWUXPHQWDWLRQ RQ QLQH 1$6$ PLVVLRQV QRWDEO PLVVLRQ DQ HIIRUW WR PDS WKH 0RRQ¶V JUDYLWDWLRQDO ¿HOG ,Q 2013 3UHVLGHQW 2EDPD DSSRLQWHG 0V Zuber to the National Science Board, and, in May 2016, she was elected Board Chair. In December 2017, Ms. Zuber became a director of Bank of America Corporation. ([SHULHQFH, 4XDOLÀFDWLRQV, $WWULEXWHV DQG 6NLOOV ‡ ([WHQVLYH H[SHUWLVH LQ VFLHQWL¿F UHVHDUFK • Considerable leadership experience, including in relationships with the federal government • Deep understanding of emerging technologies James L. Ziemer Director Since 2007 Audit Committee Organization and Compensation Committee 0U =LHPHU 68 ZDV WKH 3UHVLGHQW DQG &KLHI ([HFXWLYH 2I¿FHU DQG D GLUHFWRU RI +DUOH-'DYLGVRQ FRPSDQLHV GRLQJ EXVLQHVV DV +DUOH-'DYLGVRQ 0RWRU &RPSDQ ZKLFK GHVLJQ PDQXIDFWXUH DQG VHOO PRWRUFFOHV DQG UHODWHG SDUWV DQG DFFHVVRULHV DQG +DUOH-'DYLGVRQ )LQDQFLDO 6HUYLFHV ZKLFK SURYLGHV UHODWHG ¿QDQFLQJ DQG LQVXUDQFH 0U =LHPHU KDG EHHQ D GLUHFWRU RI +DUOH-'DYLGVRQ ,QF SUHYLRXVO VHUYHG DV 9LFH 3UHVLGHQW DQG &KLHI )LQDQFLDO 2I¿FHU RI +DUOH-'DYLGVRQ IURP 'HFHPEHU Mr. Ziemer is also a director of Thor Industries, Inc. (since 2010). ([SHULHQFH, 4XDOLÀFDWLRQV, $WWULEXWHV DQG 6NLOOV • Extensive expertise in establishing brand equity worldwide • Leadership experience in fostering outstanding customer satisfaction and loyalty ‡ 6LJQL¿FDQW H[SHULHQFH ZLWK WKH FDSWLYH ¿QDQFH EXVLQHVV PRGHO • Audit Committee Financial Expert

CORPORATE GOVERNANCE GOVERNANCE HIGHLIGHTS Textron is committed to sound corporate governance practices, including the following: • 11 of our 12 current directors and 10 of our 11 director nominees are independent, with our CEO being the only management director. Director Independence • Our three principal Board committees, the Audit, Nominating and Corporate Governance and Organization and Compensation Committees, are each composed entirely of independent directors. • The independent directors meet regularly in executive session without management present. • Recently, the Board updated our Lead Director selection and rotation process. Beginning in April 2018, the independent directors will elect a director from DPRQJ WKHP WR VHUYH DV /HDG 'LUHFWRU, JHQHUDOO IRU D WKUHH-HDU WHUP, ZLWK DQQXDO UDWL¿FDWLRQ Independent Lead Director • 7KH /HDG 'LUHFWRU LV DVVLJQHG FOHDUO GH¿QHG DQG H[SDQVLYH GXWLHV • The Lead Director presides at executive sessions of the independent directors without management present at each regularly scheduled Board meeting. • All directors must stand for election annually and be elected by a majority of votes cast in uncontested elections. Board Accountability and Practices • During 2017, each director attended at least 75% of the total number of Board and applicable committee meetings, and all director nominees attended the Annual Meeting of Shareholders. • In 2017, the Board decreased the limit on the number of other public company boards on which our directors may serve. • The Board and each of its three principal committees perform annual VHOI-HYDOXDWLRQV • Directors may not stand for reelection after their 75th birthday. • Shareholders holding 25% of our outstanding shares may call a special meeting of shareholders. • 2XU %-/DZV SURYLGH IRU SUR[ DFFHVV WR DOORZ HOLJLEOH VKDUHKROGHUV WR LQFOXGH their own director nominees in the Company’s proxy materials. Shareholder Rights • We have robust stock ownership requirements for both our directors and our senior executives, all of whom currently meet their respective requirements. • Our executives and our directors are prohibited from hedging or pledging Textron securities. Textron Stock 9 TEXTRON 2018 PROXY STATEMENT

DIRECTOR INDEPENDENCE The Board of Directors has determined that Ms. Bader, Messrs. Clark, Conway, Evans, Fish, Gagné, Heath, Ms. James, Messrs. 7URWWHU DQG =LHPHU DQG 0V. =XEHU, DUH LQGHSHQGHQW, DV GH¿QHG XQGHU WKH OLVWLQJ VWDQGDUGV RI WKH 1HZ <RUN 6WRFN ([FKDQJH, based on the criteria set forth in the Textron Corporate Governance Guidelines and Policies which are posted on Textron’s website DV GHVFULEHG EHORZ. 7KH %RDUG KDG SUHYLRXVO GHWHUPLQHG WKDW 'DLQ 0. +DQFRFN DQG /RUG 3RZHOO RI %DVZDWHU, .&0*, ZKR served as directors for a portion of the year, were independent under such standards as well. In making its determination, the %RDUG H[DPLQHG UHODWLRQVKLSV EHWZHHQ GLUHFWRUV RU WKHLU DI¿OLDWHV ZLWK 7H[WURQ DQG LWV DI¿OLDWHV DQG GHWHUPLQHG WKDW HDFK VXFK UHODWLRQVKLS GLG QRW LPSDLU WKH GLUHFWRU¶V LQGHSHQGHQFH. 6SHFL¿FDOO, WKH %RDUG FRQVLGHUHG WKH IDFW WKDW, LQ 2017, WKH 7H[WURQ Charitable Trust made a $20,000 donation to The Marine Corps University Foundation, an organization for which Mr. Conway serves as Chairman, and a $21,000 donation to the Semper Fi Wounded Warrior Fund, an organization for which Mr. Conway’s wife serves as Board Vice President. In addition, the Board considered that, in 2017, the Textron Charitable Trust made a $50,000 donation to The Atlantic Council, an organization for which Ms. James serves as a director. Textron has supported The Atlantic Council since 2002, with the amount of its contribution being $50,000 annually since 2011. The Board determined that these donations have not compromised either director’s independence as a Textron director. LEADERSHIP STRUCTURE +LVWRULFDOO, DV UHÀHFWHG LQ 7H[WURQ¶V &RUSRUDWH *RYHUQDQFH *XLGHOLQHV DQG 3ROLFLHV, WKH %RDUG KDV GHWHUPLQHG WKDW WKH SUDFWLFH RI FRPELQLQJ WKH SRVLWLRQV RI &KDLUPDQ RI WKH %RDUG DQG &KLHI ([HFXWLYH 2I¿FHU VHUYHV WKH EHVW LQWHUHVWV RI 7H[WURQ and its shareholders. This is because the Board believes that the CEO, with his extensive knowledge of the Company’s businesses and full time focus on the business affairs of the Company, makes a more effective Chairman than an independent GLUHFWRU, HVSHFLDOO JLYHQ WKH VL]H DQG PXOWL-LQGXVWU QDWXUH RI WKH &RPSDQ¶V EXVLQHVV. 7KH %RDUG KDV FRPPLWWHG WR UHYLHZ, DW least once every two years, whether combining these positions serves the best interests of Textron and its shareholders. The Nominating and Corporate Governance Committee recently recommended to the Board, and, in February 2018, the Board of Directors approved, changes to our Corporate Governance Guidelines and Policies such that, beginning in April 2018, WKH LQGHSHQGHQW GLUHFWRUV ZLOO KDYH WKH ÀH[LELOLW WR VHOHFW DQ GLUHFWRU DPRQJ WKHP WR VHUYH DV /HDG 'LUHFWRU. 7KH /HDG 'LUHFWRU JHQHUDOO ZLOO EH H[SHFWHG WR VHUYH IRU D WKUHH-HDU WHUP, ZLWK WKH DSSRLQWPHQW UDWL¿HG DQQXDOO. 3UHYLRXVO, RXU /HDG 'LUHFWRU ZDV VHOHFWHG IURP DPRQJ WKH &RPPLWWHH FKDLUV RQ D URWDWLQJ EDVLV DQG VHUYHG D RQH-HDU WHUP. 7KH %RDUG EHOLHYHV WKDW PRUH ÀH[LELOLW LQ FKRRVLQJ WKH /HDG 'LUHFWRU ZLOO HQDEOH WKH %RDUG WR FKRRVH WKH PRVW HIIHFWLYH LQGLYLGXDO IRU WKH UROH, DQG D WKUHH-HDU WHUP ZLOO SURYLGH JUHDWHU FRQWLQXLW IURP HDU WR HDU, HQKDQFLQJ WKH YDOXH RI WKH /HDG 'LUHFWRU¶V UROH. 7KH /HDG 'LUHFWRU LV DVVLJQHG FOHDUO GH¿QHG DQG H[SDQVLYH GXWLHV XQGHU RXU &RUSRUDWH *RYHUQDQFH *XLGHOLQHV DQG Policies, including (i) presiding at all meetings of the Board at which the Chairman is not present, including all executive sessions of the Board, (ii) serving, when needed, as liaison between the CEO and the independent directors, (iii) identifying, together with the CEO, key strategic direction and operational issues upon which the Board’s annual core agenda is based, (iv) discussing agenda items and time allocated for agenda items with the CEO prior to each Board meeting, including the authority to make changes and approve the agenda for the meeting, (v) determining the type of information to be provided to the directors for each scheduled Board meeting, (vi) convening additional executive sessions of the Board, (vii) determining to meet with Textron shareholders, as appropriate, after consultation with the CEO and General Counsel, and (viii) such other functions as the Board may direct. Textron’s Corporate Governance Guidelines and Policies also require that the Board meet in executive session for independent directors without management present at each regularly scheduled Board meeting. Textron’s Lead Director presides at such sessions. Additional executive sessions may be convened at any time at the request of a director, and, in such event, the Lead Director presides. During 2017, the independent directors met in executive session without management present during each of the Board’s seven meetings. Currently, Ms. Bader serves as Lead Director. The functions of the Board are carried out by the full Board, and, when delegated, by the Board committees, with each director being a full and equal participant. The Board is committed to high standards of corporate governance and its Corporate Governance Guidelines and Policies were designed, in part, to ensure the independence of the Board and LQFOXGH D IRUPDO SURFHVV IRU WKH HYDOXDWLRQ RI &(2 SHUIRUPDQFH E DOO QRQ-PDQDJHPHQW %RDUG PHPEHUV. 7KH HYDOXDWLRQ is used by the Organization and Compensation Committee as a basis to recommend the compensation of the CEO. In addition, the Audit Committee, the Nominating and Corporate Governance Committee, and the Organization and Compensation Committee are composed entirely of independent directors. Each of these committees’ charters provides that the committee may seek the counsel of independent advisors and each routinely meets in executive session without PDQDJHPHQW SUHVHQW. 7KH %RDUG DQG HDFK RI LWV WKUHH SULQFLSDO FRPPLWWHHV SHUIRUP DQ DQQXDO VHOI-HYDOXDWLRQ. 10 TEXTRON 2018 PROXY STATEMENT

MEETING ATTENDANCE During 2017, the Board of Directors held six regular meetings and one special meeting. Directors are expected to regularly attend Board meetings and meetings of committees on which they serve, as well as the annual meeting of shareholders. Each director attended at least 75% of the total number of Board and applicable committee meetings. All director nominees attended the 2017 annual meeting of shareholders. OTHER DIRECTORSHIPS Textron’s Corporate Governance Guidelines and Policies were revised in July 2017 to decrease the number of other SXEOLF FRPSDQ ERDUGV RQ ZKLFK QRQ-PDQDJHPHQW GLUHFWRUV PD VHUYH IURP ¿YH WR IRXU LQ WKH FDVH RI D GLUHFWRU ZKR LV QRW D SXEOLF FRPSDQ FKLHI H[HFXWLYH RI¿FHU DQG IURP WKUHH WR WZR LQ WKH FDVH RI D GLUHFWRU ZKR LV D FKLHI H[HFXWLYH RI¿FHU RI D SXEOLF FRPSDQ BOARD COMMITTEES EXECUTIVE COMMITTEE Textron’s Board maintains an Executive Committee which has the power, between meetings of the Board of Directors, to H[HUFLVH DOO RI WKH SRZHUV RI WKH IXOO %RDUG, H[FHSW DV VSHFL¿FDOO OLPLWHG E 7H[WURQ¶V $PHQGHG DQG 5HVWDWHG %-/DZV DQG Delaware law. Currently, Mr. Donnelly, Ms. Bader, Mr. Clark and Mr. Trotter comprise the Executive Committee, which did not meet during 2017. AUDIT COMMITTEE The Audit Committee pursuant to its charter, as amended in December 2017, assists the Board of Directors with its RYHUVLJKW RI (L) WKH LQWHJULW RI 7H[WURQ¶V ¿QDQFLDO VWDWHPHQWV, (LL) 7H[WURQ¶V FRPSOLDQFH ZLWK OHJDO DQG UHJXODWRU UHTXLUHPHQWV, (LLL) WKH LQGHSHQGHQW DXGLWRU¶V TXDOL¿FDWLRQV DQG LQGHSHQGHQFH, (LY) WKH SHUIRUPDQFH RI 7H[WURQ¶V LQWHUQDO DXGLW IXQFWLRQ and independent auditor, and (v) risk management. The Audit Committee is directly responsible for the appointment, compensation, retention and oversight of Textron’s independent auditors. A copy of the charter is posted on Textron’s website, www.textron.com, under “Investors—Corporate Governance—Committee Charters,” and is also available in print upon request to Textron’s Secretary. The following seven independent directors presently comprise the committee: Mr. Clark (Chair), Mr. Conway, Mr. Evans, Mr. Gagné, Mr. Heath, Ms. James and Mr. Ziemer. The Board has determined that each PHPEHU RI WKH FRPPLWWHH LV LQGHSHQGHQW DV GH¿QHG IRU DXGLW FRPPLWWHH PHPEHUV LQ WKH OLVWLQJ VWDQGDUGV RI WKH 1HZ <RUN Stock Exchange. No member of the committee simultaneously serves on the audit committees of more than three public companies. The Board of Directors has determined that Mr. Clark, Mr. Evans, Mr. Gagné, Mr. Heath and Mr. Ziemer each DUH ³DXGLW FRPPLWWHH ¿QDQFLDO H[SHUWV´ XQGHU WKH FULWHULD DGRSWHG E WKH 6HFXULWLHV DQG ([FKDQJH &RPPLVVLRQ 'XULQJ 2017, the committee met ten times. NOMINATING AND CORPORATE GOVERNANCE COMMITTEE 7KH 1RPLQDWLQJ DQG &RUSRUDWH *RYHUQDQFH &RPPLWWHH SXUVXDQW WR LWV FKDUWHU, DV DPHQGHG LQ 'HFHPEHU 2012, (L) LGHQWL¿HV individuals to become Board members, and recommends that the Board select the director nominees for the next annual meeting of shareholders, (ii) develops and recommends to the Board a set of corporate governance principles applicable to Textron, (iii) oversees the evaluation of the Board and its committees and (iv) makes recommendations on compensation of the Board of Directors. A copy of the committee’s charter is posted on Textron’s website, www.textron.com, under “Investors—Corporate Governance—Committee Charters,” and is also available in print upon request to Textron’s Secretary. In making its recommendations on director nominees to the Board, the committee will consider suggestions regarding possible candidates from a variety of sources, including shareholders. Nominees suggested by shareholders will be communicated to WKH FRPPLWWHH IRU FRQVLGHUDWLRQ LQ WKH FRPPLWWHH¶V VHOHFWLRQ SURFHVV 6KDUHKROGHU-UHFRPPHQGHG FDQGLGDWHV DUH HYDOXDWHG XVLQJ WKH VDPH FULWHULD XVHG IRU RWKHU FDQGLGDWHV 7KH FRPPLWWHH DOVR SHULRGLFDOO UHWDLQV D WKLUG-SDUW VHDUFK ¿UP WR DVVLVW LQ WKH LGHQWL¿FDWLRQ DQG HYDOXDWLRQ RI FDQGLGDWHV 7KRXJK WKH FRPPLWWHH GRHV QRW KDYH D IRUPDO SROLF IRU FRQVLGHULQJ GLYHUVLW LQ identifying nominees for director, it seeks a variety of occupational and personal backgrounds on the Board in order to obtain a range of viewpoints and perspectives. 11 TEXTRON 2018 PROXY STATEMENT

7H[WURQ¶V $PHQGHG DQG 5HVWDWHG %-/DZV FRQWDLQ D SURYLVLRQ ZKLFK LPSRVHV FHUWDLQ UHTXLUHPHQWV XSRQ QRPLQDWLRQV IRU GLUHFWRUV made by shareholders at the annual meeting of shareholders or a special meeting of shareholders at which directors are to be elected. Shareholders wishing to nominate an individual for director at the annual meeting must submit timely notice of nomination within the time limits described below under the heading “Shareholder Proposals and Other Matters for 2019 Annual Meeting” RQ SDJH 55, WR WKH FRPPLWWHH, F/R 7H[WURQ¶V 6HFUHWDU, DORQJ ZLWK WKH LQIRUPDWLRQ GHVFULEHG LQ RXU %-/DZV. The committee annually reviews the Board of Directors’ composition, the appropriate size of the Board, the results of the review of the Board’s overall performance and the strategy of the Company to determine future requirements for Board members. All candidates are evaluated against those requirements and the criteria for membership to the Board set forth in the Corporate *RYHUQDQFH *XLGHOLQHV DQG 3ROLFLHV LQFOXGLQJ (L) H[HPSODU SHUVRQDO HWKLFV DQG LQWHJULW; (LL) VSHFL¿F VNLOOV DQG H[SHULHQFH DOLJQHG ZLWK 7H[WURQ¶V VWUDWHJLF GLUHFWLRQ DQG RSHUDWLQJ FKDOOHQJHV DQG WKDW FRPSOHPHQW WKH RYHUDOO FRPSRVLWLRQ RI WKH %RDUG; (LLL) FRUH EXVLQHVV FRPSHWHQFLHV RI KLJK DFKLHYHPHQW DQG D UHFRUG RI VXFFHVV; (LY) ¿QDQFLDO OLWHUDF DQG D KLVWRU RI PDNLQJ JRRG EXVLQHVV GHFLVLRQV DQG H[SRVXUH WR EHVW SUDFWLFHV; (Y) LQWHUSHUVRQDO VNLOOV WKDW PD[LPL]H JURXS GQDPLFV, LQFOXGLQJ UHVSHFW IRU RWKHUV; (YL) VWURQJ FRPPXQLFDWLRQV VNLOOV DQG FRQ¿GHQFH WR DVN WRXJK TXHVWLRQV; DQG (YLL) HQWKXVLDVP IRU 7H[WURQ DQG VXI¿FLHQW WLPH WR EH IXOO HQJDJHG. 7KH FRPPLWWHH PXVW DOVR WDNH LQWR DFFRXQW RXU %-/DZV ZKLFK SURYLGH WKDW QR SHUVRQ VKDOO be elected a director who has attained the age of 75. In addition, the Guidelines and Policies provide that a substantial majority of the Company’s directors must be independent under the standards of the New York Stock Exchange. All recommendations of nominees to the Board by the committee are made solely on the basis of merit. ,Q PDNLQJ LWV UHFRPPHQGDWLRQV RQ %RDUG FRPSHQVDWLRQ, WKH FRPPLWWHH DQQXDOO UHYLHZV WKH GLUHFWRU FRPSHQVDWLRQ DQG EHQH¿WV program and consults with independent board compensation advisors, as appropriate. The following six independent directors presently comprise the committee: Ms. Bader (Chair), Mr. Conway, Mr. Evans, Mr. Fish, Ms. James and Ms. Zuber. The Board of Directors has determined that each member of the committee is independent under the New York Stock Exchange listing standards. During 2017, the committee met three times. ORGANIZATION AND COMPENSATION COMMITTEE The Organization and Compensation Committee pursuant to its charter, as amended in December 2015, (i) approves FRPSHQVDWLRQ DUUDQJHPHQWV, LQFOXGLQJ PHULW VDODU LQFUHDVHV DQG DQ DQQXDO DQG ORQJ-WHUP LQFHQWLYH FRPSHQVDWLRQ, ZLWK UHVSHFW WR WKH &KLHI ([HFXWLYH 2I¿FHU DQG RWKHU H[HFXWLYH RI¿FHUV RI WKH &RPSDQ; (LL) RYHUVHHV DQG, ZKHUH DSSURSULDWH, DSSURYHV FRPSHQVDWLRQ DUUDQJHPHQWV DSSOLFDEOH WR RWKHU FRUSRUDWH RI¿FHUV; (LLL) DPHQGV DQ H[HFXWLYH FRPSHQVDWLRQ SODQ RU QRQTXDOL¿HG GHIHUUHG FRPSHQVDWLRQ SODQ RI WKH &RPSDQ DQG LWV VXEVLGLDULHV WR WKH VDPH H[WHQW WKDW WKH SODQ PD EH DPHQGHG E WKH %RDUG; (LY) DGPLQLVWHUV WKH H[HFXWLYH FRPSHQVDWLRQ SODQV DQG QRQTXDOL¿HG GHIHUUHG FRPSHQVDWLRQ SODQV RI WKH &RPSDQ DQG LWV VXEVLGLDULHV; (Y) DSSURYHV WKH &KLHI ([HFXWLYH 2I¿FHU¶V DQG RWKHU H[HFXWLYH RI¿FHUV¶ UHVSRQVLELOLWLHV DQG SHUIRUPDQFH DJDLQVW SUH-HVWDEOLVKHG SHUIRUPDQFH JRDOV; DQG (YL) SODQV IRU WKH VXFFHVVLRQ of the Company’s management. A copy of the committee’s charter is posted on Textron’s website, www.textron.com, under “Investors—Corporate Governance—Committee Charters,” and is also available in print upon request to Textron’s Secretary. See the Compensation Discussion and Analysis (CD&A), beginning on page 20 for more information on the committee’s processes and the role of management and consultants in determining the form and amount of executive compensation. The following six independent directors presently comprise the committee: Mr. Trotter (Chair), Mr. Fish, Mr. Gagné, Mr. Heath, Mr. Ziemer and Ms. Zuber. The Board of Directors has determined that each member of the FRPPLWWHH LV LQGHSHQGHQW DV GH¿QHG XQGHU WKH 1HZ <RUN 6WRFN ([FKDQJH OLVWLQJ VWDQGDUGV DSSOLFDEOH WR FRPSHQVDWLRQ committee members. During 2017, the committee met six times. RISK OVERSIGHT The Board oversees the Company’s enterprise risk management process. Management reviews the process, including LGHQWL¿FDWLRQ RI NH ULVNV DQG VWHSV WDNHQ WR DGGUHVV WKHP, ZLWK WKH IXOO %RDUG RQ D SHULRGLF EDVLV. 7KHVH UHYLHZV occur at an annual dedicated risk management session and as part of the Board’s annual review of the Company’s strategy. Although the full Board is responsible for this oversight function, the Organization and Compensation Committee, the Nominating and Corporate Governance Committee and the Audit Committee assist the Board in discharging its oversight duties. 12 TEXTRON 2018 PROXY STATEMENT

The Organization and Compensation Committee reviews risks related to the subject matters enumerated in its charter, including risks associated with the Company’s compensation programs, to provide incentive compensation arrangements for senior executives that do not encourage inappropriate risk taking. The Nominating and Corporate Governance &RPPLWWHH FRQVLGHUV ULVNV UHODWHG WR WKH VXEMHFW PDWWHUV IRU ZKLFK LW LV UHVSRQVLEOH DV LGHQWL¿HG LQ LWV FKDUWHU LQFOXGLQJ risks associated with corporate governance. Similarly, the Audit Committee discusses with management and the independent auditor, as appropriate, (i) risks related to its duties and responsibilities as described in its charter, (ii) management’s policies and processes for risk assessment and risk management, including with respect to cybersecurity risks, and (iii) in the period between the Board’s risk oversight reviews, management’s evaluation of the Company’s major risks and the steps management has taken or proposes to take to monitor and mitigate such risks. Accordingly, while each of the three committees contributes to the risk management oversight function by assisting the Board in the manner outlined above, the Board itself remains responsible for the oversight of the Company’s risk management program. CORPORATE GOVERNANCE GUIDELINES AND POLICIES Textron’s Corporate Governance Guidelines and Policies, originally adopted in 1996 and most recently revised in February 2018, meet or exceed the listing standards adopted by the New York Stock Exchange and are posted on Textron’s website, www.textron.com, under “Investors—Corporate Governance/Corporate Governance Guidelines and Policies,” and are also available in print upon request to Textron’s Secretary. CODE OF ETHICS Textron’s Business Conduct Guidelines, originally adopted in 1979 and most recently revised in September 2010, are DSSOLFDEOH WR DOO HPSORHHV RI 7H[WURQ LQFOXGLQJ WKH SULQFLSDO H[HFXWLYH RI¿FHU WKH SULQFLSDO ¿QDQFLDO RI¿FHU DQG WKH SULQFLSDO DFFRXQWLQJ RI¿FHU 7KH %XVLQHVV &RQGXFW *XLGHOLQHV DUH DOVR DSSOLFDEOH WR GLUHFWRUV ZLWK UHVSHFW WR WKHLU responsibilities as members of the Board of Directors. The Business Conduct Guidelines are posted on Textron’s website, www.textron.com, under “About—Our Commitment—Ethics and Compliance/Business Conduct Guidelines,” and are also DYDLODEOH LQ SULQW XSRQ UHTXHVW WR 7H[WURQ¶V 6HFUHWDU :H LQWHQG WR SRVW RQ RXU ZHEVLWH DW WKH DGGUHVV VSHFL¿HG DERYH any amendments to the Business Conduct Guidelines or the grant of a waiver from a provision of the Business Conduct Guidelines requiring disclosure under applicable Securities and Exchange Commission rules within four business days following the date of the amendment or waiver. SHAREHOLDER COMMUNICATIONS TO THE BOARD Shareholders or other interested parties wishing to communicate with the Board of Directors, the Lead Director, the QRQ-PDQDJHPHQW GLUHFWRUV DV D JURXS RU ZLWK DQ LQGLYLGXDO GLUHFWRU PD GR VR E FDOOLQJ (866) 698-6655 (WROO-IUHH) RU (401) 457-2269 ZULWLQJ WR %RDUG RI 'LUHFWRUV DW 7H[WURQ ,QF 40 :HVWPLQVWHU 6WUHHW 3URYLGHQFH 5KRGH ,VODQG 02903 RU E H-PDLO WR textrondirectors@textron.com. The telephone numbers and addresses are also listed on the Textron website. All communications received via the above methods will be sent to the Board of Directors, the Lead Director, WKH QRQ-PDQDJHPHQW GLUHFWRUV RU WKH VSHFL¿HG GLUHFWRU COMPENSATION OF DIRECTORS 'XULQJ 2017 IRU WKHLU VHUYLFH RQ WKH %RDUG QRQ-HPSORHH GLUHFWRUV ZHUH SDLG DQ DQQXDO UHWDLQHU RI $235 000 ($120 000 RI which was required to be deferred and paid in the form of stock units, as discussed below). The annual retainer is prorated for directors who join the Board during the year. Each member of the Audit Committee (including the chair) received an additional retainer of $15,000, and the chairs of the Audit Committee, the Nominating and Corporate Governance Committee and the Organization and Compensation Committee received, respectively, an additional $15,000, $10,000 and $12,500, and the Lead Director an additional $25,000. In addition, Textron reimburses each director for his or her expenses in attending Board or committee meetings. 13 TEXTRON 2018 PROXY STATEMENT

7H[WURQ PDLQWDLQV D 'HIHUUHG ,QFRPH 3ODQ IRU 1RQ-(PSORHH 'LUHFWRUV (WKH ³'LUHFWRUV 'HIHUUHG ,QFRPH 3ODQ´) XQGHU which they can defer all or part of their cash compensation until retirement from the Board. Deferrals are made either into DQ LQWHUHVW-EHDULQJ DFFRXQW ZKLFK EHDUV LQWHUHVW DW D PRQWKO UDWH WKDW LV RQH-WZHOIWK RI WKH JUHDWHU RI 8% DQG WKH average for the month of the Moody’s Corporate Bond Yield Index, but in either case, not to exceed a monthly rate equal to 120% of the Applicable Federal Rate as provided under Section 1274(d) of the Internal Revenue Code, or into an account consisting of Textron stock units, which are equivalent in value to Textron common stock. Textron credits dividend equivalents to the stock unit account. Directors were required to defer a minimum of $120,000 of their 2017 annual retainer into the stock unit account. Textron sponsors a Directors Charitable Award Program that was closed to new participants in 2004. Under the program, Textron contributes up to $1,000,000 to the Textron Charitable Trust on behalf of each participating director upon his or KHU GHDWK DQG WKH 7UXVW GRQDWHV 50% RI WKDW DPRXQW LQ DFFRUGDQFH ZLWK WKH GLUHFWRU¶V UHFRPPHQGDWLRQ DPRQJ XS WR ¿YH charitable organizations. Textron currently maintains life insurance policies on the lives of the participating directors, the proceeds of which may be used to fund these contributions. The premiums on the policies insuring our current directors who participate in this program (Ms. Bader and Messrs. Clark, Evans, Fish and Gagné) have been fully paid so there ZHUH QR H[SHQGLWXUHV DVVRFLDWHG ZLWK WKHVH SROLFLHV GXULQJ 2017 7KH GLUHFWRUV GR QRW UHFHLYH DQ GLUHFW ¿QDQFLDO EHQH¿W IURP WKLV SURJUDP VLQFH WKH LQVXUDQFH SURFHHGV DQG FKDULWDEOH GHGXFWLRQV DFFUXH VROHO WR 7H[WURQ 1RQ-HPSORHH directors also are eligible to participate in the Textron Matching Gift Program under which Textron will match contributions RI GLUHFWRUV DQG IXOO-WLPH HPSORHHV WR HOLJLEOH FKDULWDEOH RUJDQL]DWLRQV DW D 1:1 UDWLR XS WR D PD[LPXP RI $7 500 SHU HDU 1RQ-HPSORHH GLUHFWRUV DUH HOLJLEOH WR UHFHLYH DZDUGV JUDQWHG XQGHU WKH 7H[WURQ ,QF 2015 /RQJ-7HUP ,QFHQWLYH 3ODQ 2WKHU WKDQ D RQH-WLPH JUDQW RI UHVWULFWHG VWRFN UHFHLYHG XSRQ MRLQLQJ WKH %RDUG WKH FXUUHQWO GR QRW UHFHLYH DQ VXFK awards. This grant of restricted stock, in the amount of 2,000 shares, does not vest until the director has completed at OHDVW ¿YH HDUV RI %RDUG VHUYLFH DQG DOO VXFFHVVLYH WHUPV RI %RDUG VHUYLFH WR ZKLFK KH RU VKH LV QRPLQDWHG DQG HOHFWHG or in the event of death or disability or a change in control of Textron. None of our directors receive compensation for serving on the Board from any shareholder or other third party. Employee directors do not receive fees or other compensation for their service on the Board or its committees. CHANGES TO DIRECTOR COMPENSATION PROGRAM FOR 2018 In December 2017, the Nominating and Corporate Governance Committee conducted its annual review of the type and DPRXQW RI FRPSHQVDWLRQ SDLG WR RXU QRQ-HPSORHH GLUHFWRUV IRU WKHLU VHUYLFH RQ RXU %RDUG DQG LWV FRPPLWWHHV 7KH Committee considered the results of an analysis prepared by its independent compensation consultant, Semler Brossy &RQVXOWLQJ *URXS ZKLFK LQFOXGHG QRQ-HPSORHH GLUHFWRU FRPSHQVDWLRQ WUHQGV DQG GDWD IURP 7H[WURQ¶V 7DOHQW 3HHU *URXS FRPSDQLHV DV ZHOO DV FRPSDQLHV LQFOXGHG LQ WKH 2016-2017 1$&' $QQXDO 'LUHFWRU &RPSHQVDWLRQ 6XUYH $IWHU LWV UHYLHZ WKH &RPPLWWHH UHFRPPHQGHG DQG WKH %RDUG DSSURYHG FKDQJHV WR WKH FRPSHQVDWLRQ SURJUDP IRU RXU QRQ-HPSORHH directors for 2018, as follows: • Increase the annual Board retainer from $235,000 to 260,000, of which at least $135,000 must be deferred into the stock unit account of the Directors’ Deferred Income Plan • Increase the annual Lead Director retainer from $25,000 to $30,000 • Increase the annual retainer for the Nominating and Corporate Governance Committee chair from $10,000 to $15,000 and for the Organization and Compensation Committee chair from $12,500 to $20,000 These changes are intended to align Textron’s program more closely with peer company practices. The Board believes that modest, biennial increases are preferable to less frequent, larger increases which otherwise would be needed to keep pace with peer company levels. 14 TEXTRON 2018 PROXY STATEMENT

Director Compensation Table The following table provides 2017 compensation information for our directors other than Mr. Donnelly, whose compensation is reported in the Summary Compensation Table on page 34. 5 .HUU &ODUN 145 000 120 000 7 500 272 500 Ivor J. Evans 130,000 120,000 250,000 Paul E. Gagné 130,000 120,000 250,000 Ralph D. Heath (4) 130,000 218,500 348,500 /RUG 3RZHOO RI %DVZDWHU .&0* (3) 28 750 46 785 75 535 James L. Ziemer 130,000 120,000 250,000 (1) The amounts in this column represent the grant date fair value of the portion of the director’s annual retainer mandatorily deferred into the stock unit account under the Directors Deferred Income Plan. These amounts are converted to stock units at a grant date fair value equal to the average share price for the calendar quarter in which the fees were payable. In addition, for Mr. Heath and Ms. James who both joined the Board in 2017, the amounts include the grant date fair value of 2,000 restricted shares which they each received upon joining the Board. (2) The amounts in this column represent the amounts of matching contributions made by the Company on behalf of participating directors pursuant to the Textron Matching Gift Program. These amounts were paid by Textron in 2017 to match contributions made in 2016. (3) Both Mr. Hancock and Lord Powell retired from the Board effective as of the 2017 Annual Meeting of Shareholders. (4) Mr. Heath joined the Board effective January 1, 2017, and Ms. James joined the Board effective July 1, 2017. DIRECTOR STOCK OWNERSHIP REQUIREMENTS ,Q RUGHU WR DOLJQ WKH ¿QDQFLDO LQWHUHVWV RI RXU GLUHFWRUV ZLWK WKH LQWHUHVWV RI RXU VKDUHKROGHUV ZH UHTXLUH WKDW RXU GLUHFWRUV PDLQWDLQ D VSHFL¿HG OHYHO RI VWRFN RZQHUVKLS HTXDO WR HLJKW WLPHV WKH SRUWLRQ RI WKHLU DQQXDO UHWDLQHU SDDEOH LQ FDVK; WRZDUG WKLV HQG ZH UHTXLUH DOO QRQ-HPSORHH GLUHFWRUV WR GHIHU D PLQLPXP RI $120 000 RI WKHLU DQQXDO UHWDLQHU LQWR WKH stock unit account of the Directors Deferred Income Plan. As described above, the amount required to be deferred into the stock unit account has been increased to $135,000 for 2018. All directors currently meet the stock ownership requirement which allows them to achieve the required level of ownership over time in the case of directors who have more recently MRLQHG WKH %RDUG :H DOVR KDYH D VWRFN UHWHQWLRQ SROLF UHVWULFWLQJ QRQ-HPSORHH GLUHFWRUV IURP WUDQVIHUULQJ VWRFN XQLWV or restricted stock while they serve on the Board. ANTI-HEDGING AND PLEDGING POLICY Our directors are prohibited from (i) pledging Textron securities as collateral for any loan or holding Textron securities in a PDUJLQ DFFRXQW RU (LL) HQJDJLQJ LQ VKRUW VDOHV RI 7H[WURQ VHFXULWLHV RU WUDQVDFWLRQV LQ SXEOLFO-WUDGHG RSWLRQV RU GHULYDWLYH securities based on Textron’s securities. 15 TEXTRON 2018 PROXY STATEMENT Maria T. Zuber115,000120,000235,000 Lloyd G. Trotter135,535120,000255,535 Deborah Lee James (4)65,000155,460220,460 Dain M. Hancock (3)33,57146,78580,356 /DZUHQFH . )LVK 115 000 120 000 235 000 James T. Conway130,000120,0005,000255,000 Fees Earned orStockAll Other NamePaid in Cash ($)Awards ($)(1) Compensation ($)(2)Total ($) .DWKOHHQ 0 %DGHU 141 964 120 000 261 964

SECURITY OWNERSHIP 7KH IROORZLQJ WDEOH VHWV IRUWK LQIRUPDWLRQ UHJDUGLQJ WKH EHQH¿FLDO RZQHUVKLS RI RXU FRPPRQ VWRFN DV RI 'HFHPEHU 31, 2017, unless otherwise noted, by: • (DFK SHUVRQ RU JURXS NQRZQ E XV WR RZQ EHQH¿FLDOO PRUH WKDQ 5% RI RXU FRPPRQ VWRFN; • (DFK RI RXU GLUHFWRUV; • (DFK RI RXU QDPHG H[HFXWLYH RI¿FHUV, DV GH¿QHG XQGHU 6HFXULWLHV DQG ([FKDQJH &RPPLVVLRQ UXOHV (³1(2V´); DQG • $OO RI RXU FXUUHQW GLUHFWRUV DQG H[HFXWLYH RI¿FHUV DV D JURXS %HQH¿FLDO RZQHUVKLS LV GHWHUPLQHG LQ DFFRUGDQFH ZLWK WKH UXOHV RI WKH 6HFXULWLHV DQG ([FKDQJH &RPPLVVLRQ DQG JHQHUDOO includes any shares over which a person exercises sole or shared voting or investment power. Shares of common stock subject to options that are exercisable, or restricted stock units that will vest, within 60 days of December 31, 2017, and VKDUHV KHOG IRU WKH H[HFXWLYH RI¿FHUV E WKH WUXVWHH XQGHU WKH 7H[WURQ 6DYLQJV 3ODQ, DUH FRQVLGHUHG RXWVWDQGLQJ DQG EHQH¿FLDOO RZQHG E WKH SHUVRQ KROGLQJ WKH RSWLRQ RU XQLW RU SDUWLFLSDWLQJ LQ WKH 3ODQ EXW DUH QRW WUHDWHG DV RXWVWDQGLQJ for the purpose of computing the percentage ownership of any other person. (DFK VKDUHKROGHU OLVWHG EHORZ KDV VROH YRWLQJ DQG LQYHVWPHQW SRZHU ZLWK UHVSHFW WR WKH VKDUHV EHQH¿FLDOO RZQHG, H[FHSW in those cases in which the voting or investment power is shared with the trustee or as otherwise noted. 5 .HUU &ODUN 7,000 (1) * -DPHV 7 &RQZD 2,028 (1) * -XOLH * 'XII 36,987 (2)(3) * /DZUHQFH . )LVK 2,000 (1) * 5DOSK ' +HDWK 2,000 * &KHUO + -RKQVRQ 85,347 (2)(3) * /ORG * 7URWWHU 2,104 (1) * 0DULD 7 =XEHU 2,002 (1) * %HQHÀFLDO +ROGHUV RI 0RUH WKDQ 5% Capital Research Global Investors (5) 18,706,394 7.1% The Vanguard Group, Inc. (7) 24,659,532 9.4% * /HVV WKDQ 1% RI WKH RXWVWDQGLQJ VKDUHV RI FRPPRQ VWRFN (1) ([FOXGHV VWRFN XQLWV KHOG E RXU QRQ-HPSORHH GLUHFWRUV XQGHU WKH 'LUHFWRUV 'HIHUUHG ,QFRPH 3ODQ WKDW DUH SDLG LQ FDVK IROORZLQJ WHUPLQDWLRQ RI VHUYLFH DV D GLUHFWRU, EDVHG XSRQ WKH YDOXH RI 7H[WURQ FRPPRQ VWRFN, DV IROORZV: 0V %DGHU, 58,417 VKDUHV; 0U &ODUN, 77,117 VKDUHV; 0U &RQZD, 21,896 VKDUHV; 0U (YDQV, 79,800 VKDUHV; 0U )LVK, 95,098 VKDUHV; 0U *DJQp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¿FHUV DV RI 2017 HDU-HQG DV D JURXS, 2,815,370 VKDUHV 16 TEXTRON 2018 PROXY STATEMENT T. Rowe Price Associates, Inc. (6)33,927,68313.0% BlackRock, Inc. (4)18,851,9007.2% $OO FXUUHQW GLUHFWRUV DQG H[HFXWLYH RI¿FHUV DV D JURXS (15 SHUVRQV) 3,246,162 (1) 1 2% -DPHV / =LHPHU 2,145 (1) * ( 5REHUW /XSRQH 216,125 (2)(3) * 'HERUDK /HH -DPHV 2,000 * 3DXO ( *DJQp 5,242 (1) * ,YRU - (YDQV 7,000 (1) * 6FRWW & 'RQQHOO 2,281,741 (2)(3) * )UDQN 7 &RQQRU 662,993 (2)(3) * Number of Shares of 'LUHFWRUV DQG ([HFXWLYH 2IÀFHUV &RPPRQ 6WRFN 3HUFHQW RI &ODVV .DWKOHHQ 0 %DGHU 14,795 (1) *

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AUDIT COMMITTEE REPORT The Audit Committee of the Board of Directors has furnished the following report on its activities: 7KH FRPPLWWHH UHYLHZHG DQG GLVFXVVHG WKH DXGLWHG FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV DQG WKH UHODWHG VFKHGXOH LQ WKH Annual Report referred to below with management. The committee also reviewed with management and the independent UHJLVWHUHG SXEOLF DFFRXQWLQJ ¿UP (WKH ³LQGHSHQGHQW DXGLWRUV´) WKH UHDVRQDEOHQHVV RI VLJQL¿FDQW MXGJPHQWV DQG WKH FODULW RI GLVFORVXUHV LQ WKH ¿QDQFLDO VWDWHPHQWV, WKH TXDOLW, QRW MXVW WKH DFFHSWDELOLW, RI WKH &RPSDQ¶V DFFRXQWLQJ SULQFLSOHV and such other matters as are required to be discussed with the committee by applicable requirements of the Public Company Accounting Oversight Board. In addition, the committee discussed with the independent auditors the auditors’ independence from management and the Company, including the matters in the written disclosures and the letter from the independent auditors required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountant’s communication with the audit committee concerning independence, and considered the SRVVLEOH HIIHFW RI QRQ-DXGLW VHUYLFHV RQ WKH DXGLWRUV¶ LQGHSHQGHQFH. The committee discussed with the Company’s internal and independent auditors the overall scope and plans for their respective audits and met with the internal and independent auditors, with and without management present, to discuss the UHVXOWV RI WKHLU H[DPLQDWLRQV, WKHLU HYDOXDWLRQV RI WKH &RPSDQ¶V LQWHUQDO FRQWUROV, LQFOXGLQJ LQWHUQDO FRQWUROV RYHU ¿QDQFLDO UHSRUWLQJ, DQG WKH RYHUDOO TXDOLW RI WKH &RPSDQ¶V ¿QDQFLDO UHSRUWLQJ. 7KH FRPPLWWHH DOVR UHYLHZHG WKH &RPSDQ¶V compliance program. Ten committee meetings were held during the year. In reliance on the reviews and discussions referred to above, the committee recommended to the Board of Directors that WKH DXGLWHG FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV DQG WKH UHODWHG VFKHGXOH EH LQFOXGHG LQ WKH $QQXDO 5HSRUW RQ )RUP 10-. IRU WKH ¿VFDO HDU HQGHG 'HFHPEHU 30, 2017, WR EH ¿OHG ZLWK WKH 6HFXULWLHV DQG ([FKDQJH &RPPLVVLRQ. 7KH FRPPLWWHH also reported to the Board that it had selected Ernst & Young LLP as the Company’s independent auditors for 2018, and UHFRPPHQGHG WKDW WKLV VHOHFWLRQ EH VXEPLWWHG WR WKH VKDUHKROGHUV IRU UDWL¿FDWLRQ. ,Q GHWHUPLQLQJ ZKHWKHU WR UHDSSRLQW (UQVW & Young LLP as the Company’s independent auditor, the committee took into consideration a number of factors, including the quality of the committee’s ongoing discussions with Ernst & Young LLP and an assessment of the professional TXDOL¿FDWLRQV DQG SDVW SHUIRUPDQFH RI WKH OHDG DXGLW SDUWQHU DQG (UQVW & <RXQJ //3. 5. .(55< &/$5., &+$,5 JAMES T. CONWAY IVOR J. EVANS PAUL E. GAGNÉ RALPH D. HEATH DEBORAH LEE JAMES JAMES L. ZIEMER 18 TEXTRON 2018 PROXY STATEMENT

COMPENSATION COMMITTEE REPORT The Organization and Compensation Committee of the Board of Directors has furnished the following report: The Committee reviewed the Compensation Discussion and Analysis to be included in Textron’s 2018 Proxy Statement and discussed that Analysis with management. Based on its review and discussions with management, the Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in Textron’s 2018 Proxy Statement and Textron’s Annual Report on )RUP 10-. IRU WKH ¿VFDO HDU HQGHG 'HFHPEHU 30 2017 This report is submitted by the Organization and Compensation Committee. LLOYD G. TROTTER, CHAIR /$:5(1&( . ),6+ PAUL E. GAGNÉ RALPH D. HEATH JAMES L. ZIEMER MARIA T. ZUBER 19 TEXTRON 2018 PROXY STATEMENT

COMPENSATION DISCUSSION AND ANALYSIS EXECUTIVE SUMMARY BUSINESS OVERVIEW During 2017, we maintained focus on investing in our businesses through continued development of new products and services and the acquisition of Arctic Cat, a platform to expand and grow our Textron Specialized Vehicles business. In addition, we continued to take cost reduction actions through the execution of our restructuring plans and integration activities LQ RUGHU WR UHDOLJQ RXU EXVLQHVVHV LPSURYH RYHUDOO RSHUDWLQJ HI¿FLHQF DQG EHWWHU SRVLWLRQ RXU EXVLQHVVHV IRU WKH IXWXUH. We generated $947 million in cash from operating activities of our manufacturing businesses, which contributed to our investments of $634 million in research and development activities, $423 million in capital expenditures, and $316 million to acquire Arctic Cat, consistent with our strategy of developing new products and services and completing strategic acquisitions WR VXSSRUW JURZWK DQG FUHDWH ORQJ-WHUP VKDUHKROGHU YDOXH. ,Q DGGLWLRQ ZH UHWXUQHG $603 PLOOLRQ WR RXU VKDUHKROGHUV WKURXJK share repurchases and dividend payments. Our 2017 revenues were $14.2 billion, an increase of 3% over 2016 revenues, ZKLOH VHJPHQW SUR¿W IRU WKH HDU ZDV $1.2 ELOOLRQ D GHFUHDVH RI 11% IURP 2016. &RQWLQXHG H[HFXWLRQ RI RXU 2016 UHVWUXFWXULQJ plan and the restructuring and integration of the Arctic Cat acquisition resulted in special charges of $130 million. $0 $0 Despite the year’s challenges, we had a number of notable accomplishments during the year that we expect to contribute to ORQJ-WHUP VKDUHKROGHU YDOXH LQFOXGLQJ WKH IROORZLQJ • Textron Aviation’s Citation Latitude achieved its milestone 100th customer delivery during the fourth quarter of 2017, and the EXVLQHVV FRQWLQXHG WR SUHSDUH LWV QHZHVW ODUJH-FDELQ MHW WKH &LWDWLRQ /RQJLWXGH IRU )$$ FHUWL¿FDWLRQ DQG HQWU LQWR VHUYLFH ZKLFK LV H[SHFWHG LQ HDUO 2018. 7H[WURQ $YLDWLRQ DOVR LQWURGXFHG WKH &HVVQD 6N&RXULHU D QHZ WZLQ-HQJLQH ODUJH-XWLOLW turboprop for which FedEx Express has signed on as launch customer with an initial order for 50 aircraft and an option to order 50 more. • 7KH %HOO 9-280 9DORU DFKLHYHG LWV ¿UVW ÀLJKW LQ 'HFHPEHU. 7KLV QH[W JHQHUDWLRQ YHUWLFDO OLIW DLUFUDIW LV EHLQJ GHYHORSHG DV SDUW of the Joint Multi Role Technology Demonstrator initiative in order to compete to replace aging utility and attack helicopters for the U.S. Armed Forces over the next decade. On the commercial side, customers began taking deliveries of Bell’s QHZHVW DLUFUDIW WKH %HOO 505 -HW 5DQJHU ; DQG ÀLJKW WHVWLQJ UHVXPHG IRU WKH %HOO 525 5HOHQWOHVV SURJUDP. • :LWK WKH DFTXLVLWLRQ RI $UFWLF &DW LQ 0DUFK 7H[WURQ 6SHFLDOL]HG 9HKLFOHV VLJQL¿FDQWO H[SDQGHG LWV SURGXFW OLQH-XS DQG LWV GHDOHU QHWZRUN ZKLOH LQWURGXFLQJ QHZ SURGXFWV OLNH WKH +DYRF ; VLGH-E-VLGH DQG WKH $UFWLF &DW =5200 VQRZPRELOH. 769 DOVR LQWURGXFHG WKH QHZ (-=-*2 (/L7( JROI FDU SRZHUHG E D OLWKLXP-LRQ EDWWHU WKDW ORZHUV PDLQWHQDQFH FRVWV and fuel emissions. • Textron Systems received a Foreign Military Sales order for the Afghan National Army for 55 Mobile Strike Force Vehicles with the potential for up to 200 additional units. Textron Systems introduced its new NIGHTWARDEN Tactical Unmanned $LUFUDIW 6VWHP (78$6) DV LWV QH[W-JHQHUDWLRQ SODWIRUP. • .DXWH[ ZRQ FRQWUDFWV ZLWK 6KDQJKDL $XWRPRWLYH ,QGXVWU &RUSRUDWLRQ (6$,&) IRU VHYHQ QHZ YHKLFOH SURJUDPV. 20 TEXTRON 2018 PROXY STATEMENT Revenues ($ in millions)Segment Profit ($ in millions) $15,000$1,400 $13,788$14,198$1,309 201620172016 $1,169 2017

EXECUTIVE COMPENSATION HIGHLIGHTS Executive compensation decisions at Textron are made by our Board’s Organization and Compensation Committee. The Committee strives to keep pace with evolving best practices in executive compensation. The following summarizes key aspects of our executive compensation program: • Pay for performance—substantial portion of executives’ compensation tied to Company performance against goals set by the Committee • Pay aligned with shareholder interests—over 75% of CEO’s target compensation LV LQ WKH IRUP RI HTXLW-EDVHG ORQJ-WHUP LQFHQWLYHV Best practices adopted by the Committee • &ODZEDFN SROLF DSSOLHV WR DOO DQQXDO DQG ORQJ-WHUP LQFHQWLYH FRPSHQVDWLRQ • Committee annually conducts performance analysis against performance peer group using operating metrics and total shareholder return • 1R VLQJOH WULJJHU YHVWLQJ XSRQ FKDQJH-LQ-FRQWURO RI ORQJ-WHUP LQFHQWLYH DZDUGV granted after 2013 • 1R WD[ JURVV XSV IRU RI¿FHUV KLUHG DIWHU 2008 • 1R HPSORPHQW FRQWUDFWV JXDUDQWHHLQJ ¿[HG WHUP HPSORPHQW RU ERQXVHV WR executives and no individual termination protection since 2008 • Limited executive perquisites Practices eliminated by the Committee in recent years • Robust stock ownership requirements Textron Stock • No hedging or pledging Textron securities • No repricing or exchanging stock options without shareholder approval 2017 SAY-ON-PAY ADVISORY VOTE ON EXECUTIVE COMPENSATION $W RXU 2017 DQQXDO PHHWLQJ, VKDUHKROGHUV H[SUHVVHG VXEVWDQWLDO VXSSRUW IRU WKH FRPSHQVDWLRQ RI RXU QDPHG H[HFXWLYH RI¿FHUV (³1(2V´ RU ³H[HFXWLYHV´), ZLWK DSSUR[LPDWHO 94% RI WKH YRWHV FDVW IRU DSSURYDO RI WKH VD-RQ-SD DGYLVRU YRWH RQ H[HFXWLYH compensation. The Committee evaluated the results of the 2017 advisory vote at its July meeting and made no changes to our executive compensation program and policies as a result of the vote. COMPENSATION PHILOSOPHY Textron’s compensation philosophy is to establish target total pay with reference to a talent peer group and to tie a substantial portion of our executives’ compensation to performance against objective business goals and stock price performance. This approach helps us to recruit and retain talented executives, incentivizes our executives to achieve desired business goals and aligns their interests with the interests of our shareholders. 21 TEXTRON 2018 PROXY STATEMENT

COMPENSATION PROGRAM COMPONENTS 7RWDO SD IRU 7H[WURQ¶V H[HFXWLYHV FRQVLVWV RI EDVH VDODU, DQQXDO LQFHQWLYH FRPSHQVDWLRQ DQG ORQJ-WHUP LQFHQWLYH compensation. Our annual incentive compensation program is designed to reward performance against annual business goals HVWDEOLVKHG E WKH &RPPLWWHH DW WKH EHJLQQLQJ RI HDFK HDU DQG LV SDDEOH LQ FDVK 7KH ORQJ-WHUP LQFHQWLYH FRPSHQVDWLRQ program is directly linked to stock price through three award types: stock options, restricted stock units (“RSUs”) and performance share units (“PSUs”). PSUs reward performance against annual business goals set by the Committee for each HDU RI D WKUHH-HDU SHUIRUPDQFH SHULRG 7KH &RPPLWWHH WKHQ PD XVH LWV QHJDWLYH GLVFUHWLRQ WR GHFUHDVH WKH SDRXW EDVHG RQ KRZ 7H[WURQ¶V WKUHH-HDU WRWDO VKDUHKROGHU UHWXUQ (³765´) FRPSDUHV WR D SHUIRUPDQFH SHHU JURXS 368V DUH SDDEOH LQ cash based upon our stock price. 2017 INCENTIVE COMPENSATION PAYOUTS The two main performance goals set by the Committee for 2017—applicable to our annual incentive compensation program as ZHOO DV WR WKH 368V XQGHU RXU ORQJ-WHUP LQFHQWLYH FRPSHQVDWLRQ SURJUDP²IRFXVHG RQ SUR¿WDELOLW DQG FDVK ÀRZ, ZKLFK DUH NH business priorities for Textron. )RU 2017, WKH DQQXDO LQFHQWLYH FRPSHQVDWLRQ SURJUDP SDLG RXW DW 120 0% RI WDUJHW IRU RXU H[HFXWLYHV, UHÀHFWLQJ SHUIRUPDQFH WKDW H[FHHGHG WDUJHWV VHW DW WKH EHJLQQLQJ RI WKH HDU 368V DZDUGHG IRU WKH 2015-2017 SHUIRUPDQFH FFOH ZHUH VXEMHFW WR EXVLQHVV JRDOV VHW DQQXDOO E WKH &RPPLWWHH GXULQJ WKH WKUHH-HDU SHUIRUPDQFH SHULRG 7KHVH DZDUGV ZHUH DOVR VXEMHFW WR D QHJDWLYH discretionary adjustment by the Committee. Performance against these goals resulted in a multiplier of 106.8% of the number of 368V JUDQWHG, KRZHYHU, WKH &RPPLWWHH DSSOLHG D 34% GLVFUHWLRQDU UHGXFWLRQ 7KLV DGMXVWPHQW UHVXOWHG LQ D ¿QDO QXPEHU RI XQLWV SDLG RI 70 5% RI WKH LQLWLDO QXPEHU RI 2015-2017 368V JUDQWHG OVERVIEW AND OBJECTIVES OF EXECUTIVE COMPENSATION PROGRAM 7KH REMHFWLYHV RI 7H[WURQ¶V FRPSHQVDWLRQ SURJUDP IRU H[HFXWLYH RI¿FHUV DUH: • Encouraging world class performance • $WWUDFWLQJ DQG UHWDLQLQJ KLJK-SHUIRUPLQJ WDOHQW • Focusing executives on delivering balanced performance by providing (i) both cash and equity incentives and (LL) ERWK DQQXDO DQG ORQJ-WHUP LQFHQWLYHV • Aligning executive compensation with shareholder value 7R DFKLHYH WKHVH REMHFWLYHV, WKH &RPPLWWHH XVHV WKH IROORZLQJ ¿YH JXLGHOLQHV IRU GHVLJQLQJ DQG LPSOHPHQWLQJ H[HFXWLYH compensation programs at Textron: • First, target total pay should be set in reference to the median target total pay of a talent peer group • Second, incentive compensation should pay higher when Textron performs well and lower if Textron performs poorly • 7KLUG, SHUIRUPDQFH JRDOV VKRXOG DOLJQ LQWHUHVWV RI H[HFXWLYHV ZLWK ORQJ-WHUP LQWHUHVWV RI VKDUHKROGHUV • Fourth, compensation programs should not incentivize executives to conduct business in ways which could put the Company at undue risk • )LIWK, LQGLUHFW FRPSHQVDWLRQ VKRXOG SURYLGH WKH VDPH OHYHO RI EHQH¿WV JLYHQ WR RWKHU VDODULHG HPSORHHV 22 TEXTRON 2018 PROXY STATEMENT

TARGET PAY HOW DOES THE COMMITTEE SET TARGET PAY? 7DUJHW WRWDO SD FRQVLVWV RI WKUHH FRPSRQHQWV (L) EDVH VDODU (LL) WDUJHW DQQXDO LQFHQWLYH FRPSHQVDWLRQ DQG (LLL) WDUJHW ORQJ-term incentive compensation. In setting target pay, the Committee addresses each component with reference to a talent peer group median and makes its determinations based on individual responsibilities, complexity of position versus that of the market benchmarks, performance, experience, and future potential. The target incentive compensation components are set as a percentage of base salary, varying for each NEO. The objectives of the three components are as follows: Component Objective position and performance HOW DOES THE COMMITTEE SELECT THE TALENT PEER GROUP? The Committee references a “talent” peer group of companies, recommended by its independent compensation consultant and approved by the Committee, as part of its process in establishing target pay for each NEO. The Committee believes that complexity and size are the most important factors in establishing this group of companies to provide appropriate references for target pay levels, with industry playing a secondary role. In addition to market capitalization and enterprise value, as well as the availability of information in the compensation survey database, selection criteria for the talent peer group for 2017 included: • 3XEOLFO-WUDGHG FRPSDQLHV WKDW DUH KHDGTXDUWHUHG LQ WKH 8 6 • Revenue of approximately $5 billion to $40 billion, with at least 10% from outside the U.S. • Median revenue for peer group approximates Textron’s revenue • Revenue in the aerospace/defense, technology/engineering, general manufacturing and/or automotive industries 23 TEXTRON 2018 PROXY STATEMENT Base Salary • 3URYLGH PDUNHW-FRPSHWLWLYH ¿[HG SD UHÀHFWLYH RI DQ H[HFXWLYH¶V UHVSRQVLELOLWLHV At-Risk Compensation Target Annual Incentive • )RFXV H[HFXWLYHV RQ H[HFXWLQJ WKH &RPSDQ¶V VKRUW-WHUP EXVLQHVV JRDOV 7DUJHW /RQJ-7HUP Incentive • $OLJQ H[HFXWLYH FRPSHQVDWLRQ ZLWK LQFUHDVLQJ ORQJ-WHUP VKDUHKROGHU YDOXH

7KH WDEOH EHORZ OLVWV WKH 2017 WDOHQW SHHU JURXS FRPSDQLHV DQG 7H[WURQ VKRZLQJ ¿VFDO 2016 UHYHQXHV. 7KH 2017 WDOHQW SHHU group was referenced in setting target pay for 2018. 2017 Talent Peer Group General Dynamics Corporation Aerospace/Defense 31.4 Eaton Corporation Plc General Manufacturing 19.7 The Goodyear Tire & Rubber Company Automotive 15.2 Illinois Tool Works Inc. General Manufacturing 13.6 Parker+DQQL¿Q &RUSRUDWLRQ *HQHUDO 0DQXIDFWXULQJ 11..4 BorgWarner Inc. Automotive 9.1 Spirit AeroSystems Holdings, Inc. Aerospace/Defense 6.8 Rockwell Automation Inc. Technology/Engineering 5.9 Terex Corporation General Manufacturing 4.4 75th Percentile Median 25th Percentile 16.9 11.4 6.5 7H[WURQ 3HUFHQWLOH 5DQN 62% 7KH IRUHJRLQJ WDOHQW SHHU JURXS UHÀHFWV FKDQJHV PDGH WR WKH 2016 WDOHQW SHHU JURXS, ZKLFK ZDV UHSRUWHG LQ RXU 2017 3UR[ 6WDWHPHQW DQG UHIHUHQFHG LQ VHWWLQJ WDUJHW SD IRU 2017. 7KH FKDQJHV ZHUH WR UHPRYH )HGHUDO-0RJXO +ROGLQJV &RUSRUDWLRQ, because it was acquired, and add Harris Corporation, which is also a current performance peer. 24 TEXTRON 2018 PROXY STATEMENT Textron Inc.13.8 .%5, ,QF. 7HFKQRORJ/(QJLQHHULQJ .4.3 Rockwell Collins, Inc.Aerospace/Defense5.3 Oshkosh CorporationGeneral Manufacturing6.3 Harris CorporationTechnology/Defense7.5 L3 Technologies, Inc.Aerospace/Defense10.5 IngersollRand PlcGeneral Manufacturing13.5 Emerson Electric Co.Technology/Engineering14.5 Lear CorporationAutomotive18.6 Northrop Grumman CorporationAerospace/Defense24.5 2016 Revenue Company NameIndustry($ in billions) Honeywell International Inc.Aerospace/Defense$39.3

HOW DID THE COMMITTEE MAKE 2017 TARGET PAY DECISIONS? Prior to making decisions on compensation, the Committee reviewed the following items: • Compensation data for each NEO • A detailed compensation benchmarking study comparing each NEO’s current target compensation by component to the market median of the talent peer group • An executive retention analysis • 3RWHQWLDO VKDUH-GHULYHG ZHDOWK DQG VWRFN RZQHUVKLS LQIRUPDWLRQ IRU HDFK 1(2 Additionally, the CEO provided input to the O&C Committee regarding compensation decisions for NEOs other than himself, including his assessment of each individual’s responsibilities and performance, the complexity of their position against market benchmarks, their experience and future potential. In approving 2017 target pay, the Committee considered the CEO’s input and made its own assessment of competitive pay and performance. As a result, the Committee increased the target total pay of each NEO. The Committee increased Mr. Donnelly’s base salary by approximately 4%, his target annual incentive compensation E 10 SHUFHQWDJH SRLQWV (WR 150% RI KLV EDVH VDODU) DQG KLV WDUJHW ORQJ-WHUP LQFHQWLYH FRPSHQVDWLRQ E DSSUR[LPDWHO 6%. These increases are consistent with the Committee’s philosophy for Mr. Donnelly’s compensation of achieving or ultimately VXUSDVVLQJ PDUNHW PHGLDQ PRUH WKURXJK DQQXDO LQFHQWLYH DQG ORQJ-WHUP LQFHQWLYH LQFUHDVHV WKDQ WKURXJK EDVH VDODU LQFUHDVHV. With respect to the other NEOs, the Committee increased the base salary, with the corresponding increases in target annual and WDUJHW ORQJ-WHUP LQFHQWLYH FRPSHQVDWLRQ, RI 0U. &RQQRU, WKH &RPSDQ¶V &)2, E DSSUR[LPDWHO 5%; 0U. /XSRQH, WKH &RPSDQ¶V *HQHUDO &RXQVHO, E DSSUR[LPDWHO 4%; DQG 0V. -RKQVRQ, WKH &RPSDQ¶V (93, +5, E DSSUR[LPDWHO 6%. 7KH LQFUHDVHV LQ compensation for Mr. Connor, Mr. Lupone and Ms. Johnson were determined based on scope of responsibility and years of experience and with consideration toward how their compensation compares against compensation for similar positions at the talent peer group companies. In July 2017, Ms. Johnson left the Company to pursue other opportunities and the Board appointed Julie G. Duffy, the Company’s Vice President, Deputy General Counsel—Litigation, to succeed Ms. Johnson as Executive Vice President, Human Resources. The Committee established Ms. Duffy’s compensation for her new role at the same level as Ms. Johnson’s 2017 target total pay. WHAT IS THE TARGET PAY AND PAY MIX FOR OUR EXECUTIVES? The following table shows 2017 target total pay, along with the target for each component of target total pay, for Textron’s NEOs: Frank T. Connor CFO 1,000,000 850,000 (85% of salary) 2,850,000 (285% of salary) 4,700,000 Julie G. Duffy EVP, HR 475,000 285,000 (60% of salary) 712,500 (150% of salary) 1,472,500 25 TEXTRON 2018 PROXY STATEMENT Cheryl H. JohnsonFormer475,000285,000712,5001,472,500 EVP, HR(60% of salary)(150% of salary) E. Robert LuponeGeneral730,000547,5001,277,5002,555,000 Counsel(75% of salary)(175% of salary) At-Risk Compensation Target AnnualTarget Long-TermTarget NamePositionBase SalaryIncentiveIncentiveTotal Pay Scott C. DonnellyCEO$1,200,000$1,800,000$10,000,000$13,000,000 (150% of salary)(833% of salary)

CEO Target Pay Mix NEO Target Pay Mix (Excluding CEO) Base Salary 9% Base Salary 26% Target e Target Long-Term Incentive 77% Target Long-Term Incentive 55% Target Annual Incentive 19% INCENTIVE COMPENSATION HOW DOES OUR INCENTIVE COMPENSATION WORK? 2XU DQQXDO DQG ORQJ-WHUP LQFHQWLYH FRPSHQVDWLRQ SURJUDPV DUH VXPPDUL]HG LQ WKH IROORZLQJ WDEOH /RQJ-WHUP LQFHQWLYH compensation consists of three award types: PSUs, RSUs and stock options. This mix of award types encourages executives to focus on meeting performance goals established by the Committee, remaining with Textron as awards vest, and increasing ORQJ-WHUP VKDUHKROGHU YDOXH • 6SDQ D WKUHH-HDU SHUIRUPDQFH SHULRG ZLWK YHVWLQJ DW WKH HQG RI WKH WKLUG ¿VFDO HDU annually by the Committee for each year of the performance period DV 40% EDVHG RQ KRZ 7H[WURQ¶V WKUHH-HDU 765 FRPSDUHV WR WKH SHUIRUPDQFH SHHU JURXS build shareholder value • Final value depends on the change in stock price over the vesting period upon vesting regardless of stock price direct incentive to increase Textron’s stock price • 7KH SHUIRUPDQFH JRDOV DUH HQWHUSULVH-ZLGH JRDOV WKDW DJJUHJDWH WKH VHSDUDWH JRDOV IRU upon the achievement of performance goals management’s performance 26 TEXTRON 2018 PROXY STATEMENT At-Risk Compensation ComponentAward TypeDescription Target Long-Term Incentive Performance Share Units 40% • Represent cash value of one share of common stock • Percentage earned (0% to 150%) is based upon the achievement of performance goals set • 3DRXW LV VXEMHFW WR D GLVFUHWLRQDU 765 PRGL¿HU WKDW FDQ GHFUHDVH WKH SDRXW E DV PXFK • Incentivize achievement of Company performance goals over a sustained period in order to Restricted Stock Units 30% • Represent the right to receive one share of common stock upon vesting • The Committee believes that RSUs help to retain executives because they have value Stock Options 30% • Provide value only if the stock price goes up during the term of the option, resulting in a Target Annual Incentive • 7DUJHW YDOXH DQG SHUIRUPDQFH JRDOV DUH VHW LQ WKH ¿UVW TXDUWHU RI HDFK HDU each of our business units which are set to focus the businesses primarily on generating SUR¿WDELOLW DQG FDVK ÀRZ FRQVLVWHQW ZLWK H[SHFWHG PDUNHW FRQGLWLRQV • 3HUFHQWDJH HDUQHG (0% WR 200%) LV GHWHUPLQHG DIWHU WKH HQG RI WKH ¿VFDO HDU EDVHG • Payout is subject to adjustments based on the Committee’s and Board’s judgment of $SSUR[LPDWHO 91% RI RXU CEO’s pay mix and an average of approximately 74% RI RXU RWKHU 1(2V· pay mix is tied to Company performance (“at-risk”).

PERFORMANCE ANALYSIS WHICH COMPANIES DOES THE COMMITTEE USE TO COMPARE OUR PERFORMANCE? 7KH WDEOH EHORZ VKRZV WKH OLVW RI SHUIRUPDQFH SHHU JURXS FRPSDQLHV; FKHFNPDUNV LQ WKH FROXPQV XQGHU 7H[WURQ¶V manufacturing segments mean that the peer company competes in some way, or operates in similar industries, with that segment. 2017 Performance Peer Group United Technologies Corporation 57.2 Honeywell International Inc. 39.3 Deere & Company 26.6 Raytheon Company 24.1 ,QJHUVROO-5DQG 3OF 13 5 BorgWarner Inc. 9.1 Spirit AeroSystems Holdings, Inc. 6.8 Textron Inc. 13.8 The foregoing performance peer group for 2017 remains unchanged from 2016, as reported in last year’s proxy statement. 7KH 2017 SHUIRUPDQFH SHHU JURXS ZLOO EH XVHG WR PHDVXUH UHODWLYH 765 SHUIRUPDQFH IRU WKH 2017-2019 368 DZDUGV JUDQWHG to NEOs in 2017. WHAT WERE OUR PERFORMANCE GOALS? 3HUIRUPDQFH JRDOV IRU WKH 2017 DQQXDO LQFHQWLYH FRPSHQVDWLRQ SURJUDP DQG 368V XQGHU WKH ORQJ-WHUP LQFHQWLYH FRPSHQVDWLRQ SURJUDP ODUJHO IRFXVHG RQ SUR¿WDELOLW DQG FDVK ÀRZ ZLWK DQ DGGLWLRQDO JRDO UHODWHG WR ZRUNIRUFH GLYHUVLW 7KH SUR¿WDELOLW WDUJHW IRFXVHG H[HFXWLYHV RQ GHOLYHU RI VHJPHQW SUR¿W LQ HDFK RI RXU VHJPHQWV 7KH FDVK ÀRZ WDUJHW IRFXVHG H[HFXWLYHV RQ LPSURYLQJ RSHUDWLRQDO HI¿FLHQF DQG VXVWDLQLQJ WKH VWUHQJWK RI WKH EDODQFH VKHHW 7KH GLYHUVLW PHWULF, DSSOLFDEOH MXVW WR DQQXDO LQFHQWLYH FRPSHQVDWLRQ, IRFXVHG PDQDJHPHQW RQ KDYLQJ D GLYHUVH HPSORHH SUR¿OH ,Q DGGLWLRQ, 368V DUH VXEMHFW WR D GLVFUHWLRQDU 765 PRGL¿HU WKDW FDQ GHFUHDVH, EXW QRW LQFUHDVH, WKH SDRXW E DV PXFK DV 40%, EDVHG RQ KRZ 7H[WURQ¶V WKUHH-HDU 765 FRPSDUHV to our performance peer group. 27 TEXTRON 2018 PROXY STATEMENT Rockwell Collins, Inc.5.3 Harris Corporation7.5 L3 Technologies, Inc.10.5 Eaton Corporation Plc19.7 Northrop Grumman Corporation24.5 General Dynamics Corporation31.4 Lockheed Martin Corporation47.2 2016 Revenue Company Name($ in billions)AviationBellIndustrialSystems The Boeing Company$94.6

ANNUAL INCENTIVE COMPENSATION PAYOUTS AND PERFORMANCE ANALYSIS The Committee established the weighting for the 2017 annual incentive compensation performance goals described above as 60% SUR¿WDELOLW 35% FDVK ÀRZ DQG 5% ZRUNIRUFH GLYHUVLW. 7H[WURQ¶V QHW RSHUDWLQJ SUR¿W JRDO IRU 2017 ZDV ORZHU WKDQ LQ WKH SUHYLRXV HDU GXH WR DQWLFLSDWHG SUR¿W DQG PDUJLQ SUHVVXUH DW RXU PDMRU PDQXIDFWXULQJ VHJPHQWV. 2XU FDVK ÀRZ JRDO ZDV VHW DW D VLJQL¿FDQW LQFUHDVH IURP WKH SUHYLRXV HDU WR IRFXV PDQDJHPHQW RQ FRVW UHGXFWLRQ DFWLRQV DQG LPSURYLQJ FDVK ÀRZ SHUIRUPDQFH through better working capital management. Both targets were challenging in light of uncertain global economic and market conditions. Payouts for each individual could range from 0% to 200% of target based on performance. The formula for determining 2017 DQQXDO LQFHQWLYH FRPSHQVDWLRQ IRU H[HFXWLYH RI¿FHUV DQG WKH UHVXOWLQJ SHUFHQWDJH HDUQHG DUH GHWDLOHG EHORZ: Component 0% Payout 100% Payout 200% Payout -1.0% 1.0% 3.0% (1) ³(QWHUSULVH 123´ PHDQV RXU WRWDO ³6HJPHQW SUR¿W´ DV UHSRUWHG LQ RXU $QQXDO 5HSRUW RQ )RUP 10-.. 6HJPHQW SUR¿W IRU WKH PDQXIDFWXULQJ VHJPHQWV H[FOXGHG interest expense, certain corporate expenses and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense. (2) ³0DQXIDFWXULQJ &DVK )ORZ´ JHQHUDOO UHSUHVHQWV ³0DQXIDFWXULQJ FDVK ÀRZ EHIRUH SHQVLRQ FRQWULEXWLRQV´ (D QRQ-*$$3 PHDVXUH) DV UHSRUWHG LQ RXU TXDUWHUO earnings releases. This measure adjusts net cash from operating activities of continuing operations for dividends received from Textron Financial Corporation (“TFC”), capital contributions provided under the Support Agreement with TFC and debt agreements, capital expenditures, proceeds from the sale of property, SODQW DQG HTXLSPHQW DQG FRQWULEXWLRQV WR RXU SHQVLRQ SODQV. )RU 2017 WKH 7H[WURQ FDVK ÀRZ PHWULF H[FOXGHV UHVWUXFWXULQJ FDVK RXWÀRZV DV ZHOO DV $UFWLF &DW related deal and integration payments. (3) ³,PSURYHPHQW LQ :RUNIRUFH 'LYHUVLW´ PHDQV WKH FKDQJH LQ WKH QXPEHU RI 8.6. IXOO-WLPH VDODULHG GLYHUVH HPSORHHV LQ UHODWLRQ WR DOO IXOO-WLPH 8.6. salaried employees. At its January 2018 meeting, the Committee discussed the annual incentive compensation awards to be paid to the NEOs for the 2017 performance period and considered input from the full Board. The Committee concluded that the calculated payouts DSSURSULDWHO UHÀHFWHG WKH &RPSDQ¶V SHUIRUPDQFH IRU 2017 DQG DSSURYHG WKH SDRXWV DV FDOFXODWHG DERYH. Annual incentive compensation targets and payouts for 2015, 2016 and 2017 for each NEO are shown below: Frank T. Connor CFO 765,000 890,000 807,500 809,000 850,000 1,020,000 Julie G. Duffy EVP, HR N/A N/A N/A N/A 285,000 342,000 The Committee believes that a pay for performance analysis should compare Company performance vs. peer performance over the time period an incentive is earned and that operating metrics are the appropriate performance comparator for annual incentive awards. Therefore, to validate that Textron’s annual incentive compensation is appropriately linked to the executives’ performance, the Committee reviewed the annual incentive compensation paid to Textron’s CEO in 2017, with respect to WKH SUHYLRXV HDU FRPSDUHG WR 7H[WURQ¶V HDU-RYHU-HDU RSHUDWLQJ SHUIRUPDQFH IRU WKDW HDU UHODWLYH WR WKH DQQXDO LQFHQWLYH FRPSHQVDWLRQ SDLG WR WKH SHHU FRPSDQLHV¶ &(2V FRPSDUHG WR WKH HDU-RYHU-HDU RSHUDWLQJ SHUIRUPDQFH RI WKH SHUIRUPDQFH peer group companies for the corresponding year. While exactly comparable data was not available for all peer companies, LQGLFDWLYH FRPSDULVRQV ZHUH PDGH XVLQJ SXEOLFO-UHSRUWHG *$$3 RSHUDWLQJ FDVK ÀRZV DQG SUH-WD[ HDUQLQJV IURP FRQWLQXLQJ operations. As was the case for previous years, the Committee’s comparative analysis conducted in 2017 for payouts related WR WKH 2016 SHUIRUPDQFH SHULRG FRQ¿UPHG WKH VWURQJ FRUUHODWLRQ EHWZHHQ 7H[WURQ¶V DQQXDO LQFHQWLYH FRPSHQVDWLRQ SDRXWV and its performance relative to its peers. 28 TEXTRON 2018 PROXY STATEMENT E. Robert LuponeGeneral Counsel506,250589,000525,000526,000547,500657,000 201520162017 NamePositionTargetPayoutTargetPayoutTargetPayout Scott C. DonnellyCEO$1,561,000 $1,817,000$1,615,600$1,619,000$1,800,000$2,160,000 2017 Annual Incentive Compensation Calculation ($ in millions) Weighting ThresholdTargetMaximum Enterprise NOP (1)Actual: $1,16960% $769$1,173$1,459 Manufacturing Cash Flow (2)Actual: $99335% $449$799$1,150 Improvement in WorkforceActual: 1.5%5% Diversity (3) 6.2% 54.4% 120.0% 59.4% Total Earned Component Payout

LONG-TERM INCENTIVE COMPENSATION PAYOUTS AND PERFORMANCE ANALYSIS Performance Share Units 3DRXWV IRU WKH 2015-2017 368 FFOH ZHUH EDVHG XSRQ SHUIRUPDQFH IRU HDFK RI WKH DQQXDO SHULRGV ZLWKLQ WKH 2015-2017 FFOH DJDLQVW SHUIRUPDQFH JRDOV VHW IRU WKUHH RQH-HDU SHUIRUPDQFH SHULRGV, ZHLJKWHG HTXDOO, ZLWK D PRGL¿HU EDVHG XSRQ TSR relative to our performance peer companies. The performance achieved against the threshold, target and maximum SDRXWV IRU WKH 2015-2017 368 FFOH, DQG WKH UHVXOWLQJ SHUFHQWDJH HDUQHG E WKH H[HFXWLYH RI¿FHUV, DUH GHWDLOHG EHORZ Weighting Enterprise Actual: $591 Cash Flow 40% Actual: $993 40% Cash Flow The performance metrics for 2017 are described in more detail in the “2017 Annual Incentive Compensation Calculation” chart above and for previous years are described in the proxy statement for the applicable year. Payouts for each individual could range from 0% to 150% of target based on performance. Two measures impact the value of PSU payouts: (i) the number of units earned is based on Textron’s performance against operating metrics and may be adjusted downward (but not upward) in the Committee’s discretion, based upon TSR compared to its peer companies and (ii) the value of each unit earned is based on Textron’s stock price. The tables below show the PSU awards granted in 2015 and associated payouts by executive in terms of both units and value. To validate that the Company’s PSU awards link pay to performance, the Committee evaluated the PSU payouts on the basis of both relative performance (TSR performance vs. peers) and absolute performance (change in stock price) and concluded that the payouts were appropriately linked to Textron’s overall performance. 29 TEXTRON 2018 PROXY STATEMENT 2017 2016 2015 2015-2017 Performance Share Unit Calculation ($ in millions) Component ThresholdTargetMaximum 50% Payout100% Payout150% Payout NOPActual: $1,25560% $830$1,241$1,526 Manufacturing Cash FlowActual: $63140% $100$480$863 Enterprise NOPActual: $1,30960% $871$1,348$1,665 Manufacturing $185$543$901 Enterprise NOPActual: $1,169 60% $769$1,173$1,459 Manufacturing $449$799$1,150 Units Earned as Percent of Original Award: 106.8% TSR Modifier Applied by O&C Committee:-34% Final Payout as % of Original Award: 70.5% 51.1% 110.8% 59.7% 42.7% 100.2% 57.5% 47.9% 109.4% 61.5% Total Earned Component Payout

Performance Share Units and Value Awarded and Earned for Period Frank T. Connor CFO 30,398 21,427 1,346,935 1,251,765 Cheryl H. Johnson3 EVP, HR 7,555 5,325 334,762 311,087 (1) 7KH &RPPLWWHH H[HUFLVHG LWV QHJDWLYH GLVFUHWLRQ DQG DSSOLHG WKH 765 PRGL¿HU WR UHGXFH WKH XQLWV SDLG E DQ DGGLWLRQDO 34% DIWHU DGMXVWLQJ IRU RSHUDWLQJ performance. (2) 7KH YDOXH RI WKH ¿QDO SDRXW ZDV ORZHU WKDQ WKH YDOXH RI WKH RULJLQDO DZDUG DV D UHVXOW RI WKH &RPSDQ¶V UHODWLYH 765 SHUIRUPDQFH FRPSDUHG WR WKH SHUIRUPDQFH SHHU JURXS HVWDEOLVKHG LQ 2015 IRU WKH 2015-2017 368 DZDUGV 7KH &RPSDQ¶V 765 SHUIRUPDQFH ZDV EHORZ WKH PHGLDQ RI WKH SHUIRUPDQFH peer group. (3 ) 0V -RKQVRQ UHFHLYHG D SDRXW IRU KHU 2015-2017 368 DZDUG EHFDXVH VKH ZDV UHWLUHPHQW HOLJLEOH ZKHQ VKH WHUPLQDWHG KHU HPSORPHQW ZKLFK HQWLWOHG her to continued vesting of outstanding PSU awards. 0V 'XII¶V 2015-2017 368 DZDUG LV QRW UHÀHFWHG LQ WKH SUHFHGLQJ FKDUW EHFDXVH LW ZDV JUDQWHG ZKLOH VKH VHUYHG LQ KHU SUHYLRXV UROH DQG, FRQVLVWHQW ZLWK WKH WHUPV RI JUDQWV PDGH WR RWKHU QRQ-H[HFXWLYH RI¿FHUV, ZDV QRW VXEMHFW WR WKH 765 PRGL¿HU 7KH DPRXQW SDLG LV UHÀHFWHG LQ WKH 2SWLRQ ([HUFLVHV DQG 6WRFN 9HVWHG LQ )LVFDO 2017 WDEOH RQ SDJH 38 7KH FKDUW EHORZ VKRZV RXU &(2¶V 2015-2017 FFOH 368 DZDUG IURP JUDQW GDWH YDOXH, DV DGMXVWHG E WKH &RPSDQ¶V SHUIRUPDQFH DJDLQVW WKH JRDOV VHW E WKH &RPPLWWHH DQG DV DGMXVWHG IRU WKH 765 PRGL¿HU, WR UHDOL]HG YDOXH (¿QDO SDRXW YDOXH), UHÀHFWLQJ WKH LQFUHDVH LQ 7H[WURQ¶V VWRFN SULFH GXULQJ WKH SHUIRUPDQFH SHULRG Restricted Stock Units and Stock Options ,Q DGGLWLRQ WR 368V, WKH &RPSDQ¶V ORQJ-WHUP LQFHQWLYH FRPSHQVDWLRQ SURJUDP FRQVLVWV RI 568V DQG VWRFN RSWLRQV The ultimate value of these awards to the executives, upon the vesting of RSUs or the exercise of stock options, is directly based upon Textron’s stock price. For the value realized by the executives upon the vesting or exercise of these awards, see “Option Exercises and Stock Vested in Fiscal 2017” on page 38. 30 TEXTRON 2018 PROXY STATEMENT 2015-2017 PSU Award Value: Scott C. DonnellyReflects performance adjustment, TSR modifier and stock price $6,000,000increase of 31.8% $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 70.5% Value After TSR Modifier 92.9% Realized Value 100.0% Grant Date Award Value 106.8% Value After Performance Adjustment E. Robert LuponeGeneral Counsel13,9999,868620,296576,489 2015-2017 Units2015-2017 Value NamePositionOriginal AwardUnits Paid1Original AwardFinal Payout2 Scott C. DonnellyCEO104,29073,512$4,621,090$ 4,294,571

RISKS RELATED TO COMPENSATION The Committee strives to set compensation policies for senior executives which do not encourage excessive risk-taking that could endanger the Company. For 2017, the Committee completed a full review of managing risk within the executive compensation programs. This annual review helps the Committee to structure executive compensation programs that are designed to avoid exposing the Company to unwarranted risk. OTHER COMPENSATION PROGRAMS $V PHQWLRQHG DERYH, 7H[WURQ SURYLGHV FHUWDLQ RWKHU FRPSHQVDWLRQ SURJUDPV (VXFK DV UHWLUHPHQWVGHDWK EHQH¿WV) WKDW DUH GHVLJQHG WR SURYLGH WR 1(2V WKH VDPH OHYHO RI EHQH¿WV SURYLGHG WR QRQ-H[HFXWLYH RI¿FHUV DQG, LQ PRVW FDVHV, DOO VDODULHG HPSORHHV. &HUWDLQ RI WKHVH SURJUDPV SURYLGH EHQH¿WV RYHU DQ FDSV PDQGDWHG E JRYHUQPHQW UHJXODWLRQV, LQFOXGLQJ • Textron Spillover Pension Plan: 1RQ-TXDOL¿HG EHQH¿W SODQ WR PDNH XS IRU ,56 OLPLWV WR TXDOL¿HG SHQVLRQ SODQV DQG, LQ WKH FDVH RI 0U. 'RQQHOO, WR SURYLGH D ³ZUDS-DURXQG´ SHQVLRQ EHQH¿W ZKLFK WDNHV LQWR DFFRXQW KLV ¿QDO DYHUDJH FRPSHQVDWLRQ ZLWK 7H[WURQ DQG KLV FRPELQHG VHUYLFH ZLWK 7H[WURQ DQG *( DQG UHGXFHV WKLV EHQH¿W E WKH DPRXQW RI DQ RWKHU SHQVLRQ EHQH¿WV which he is eligible to receive under Textron and GE pension plans. • Textron Spillover Savings Plan: 1RQ-TXDOL¿HG EHQH¿W SODQ WR PDNH XS IRU ,56 OLPLWV WR TXDOL¿HG VDYLQJV SODQV. 7H[WURQ SURYLGHV D SURJUDP WR H[HFXWLYHV ZKLFK EHQHILWV WKHP E DOORZLQJ IRU WD[ SODQQLQJ DQG DOVR EHQHILWV WKH &RPSDQ, LQ that cash payments by the Company are delayed • Deferred Income Plan for Textron Executives: 1RQ-TXDOL¿HG SODQ WKDW DOORZV SDUWLFLSDQWV WR GHIHU FRPSHQVDWLRQ. ROLE OF INDEPENDENT COMPENSATION CONSULTANT Under its charter, the Committee has the authority to retain outside consultants or advisors as it deems necessary to provide GHVLUHG H[SHUWLVH DQG FRXQVHO. ,Q 2017, WKH &RPPLWWHH HQJDJHG WKH VHUYLFHV RI 3D *RYHUQDQFH //& DV LWV FRPSHQVDWLRQ FRQVXOWDQW. 3D *RYHUQDQFH //& UHSRUWV GLUHFWO DQG H[FOXVLYHO WR WKH &RPPLWWHH DQG SURYLGHV DGYLFH UHJDUGLQJ FXUUHQW DQG HPHUJLQJ EHVW SUDFWLFHV ZLWK UHJDUG WR H[HFXWLYH FRPSHQVDWLRQ. $ UHSUHVHQWDWLYH IURP 3D *RYHUQDQFH //& DWWHQGHG HDFK RI WKH &RPPLWWHH¶V VL[ PHHWLQJV LQ 2017. 3D *RYHUQDQFH //& GRHV QRW SURYLGH DQ RWKHU VHUYLFHV WR WKH &RPPLWWHH RU WKH &RPSDQ. 7KH &RPPLWWHH KDV GHWHUPLQHG WKDW 3D *RYHUQDQFH //& LV LQGHSHQGHQW DQG WKDW WKH ZRUN RI 3D *RYHUQDQFH //& ZLWK WKH &RPPLWWHH IRU 2017 KDV QRW UDLVHG DQ FRQÀLFW RI LQWHUHVW. STOCK OWNERSHIP REQUIREMENTS 2QH REMHFWLYH RI RXU H[HFXWLYH FRPSHQVDWLRQ SURJUDP LV WR DOLJQ WKH ¿QDQFLDO LQWHUHVWV RI RXU 1(2V ZLWK WKH LQWHUHVWV RI RXU shareholders. As a result, we require that senior executives accumulate and maintain a minimum level of stock ownership in the Company which may be achieved through direct ownership of shares, Textron Savings Plan shares, unvested RSUs, and vested/ XQYHVWHG VKDUH HTXLYDOHQWV LQ 7H[WURQ FRPSHQVDWLRQ DQG EHQH¿W SODQV. 0LQLPXP RZQHUVKLS OHYHOV DUH H[SUHVVHG DV D PXOWLSOH RI EDVH VDODU DV IROORZV ¿YH WLPHV IRU WKH &(2 DQG WKUHH WLPHV IRU RWKHU 1(2V. 1HZ H[HFXWLYH RI¿FHUV DUH JLYHQ ¿YH HDUV WR reach their required ownership level. All NEOs currently meet their respective stock ownership requirements or are within their LQLWLDO ¿YH-HDU SHULRG. 31 TEXTRON 2018 PROXY STATEMENT

ANTI-HEDGING AND PLEDGING POLICY Our executives, including our NEOs, are prohibited from engaging in short sales of Textron securities and from engaging in WUDQVDFWLRQV LQ SXEOLFO-WUDGHG RSWLRQV, VXFK DV SXWV, FDOOV DQG RWKHU GHULYDWLYH VHFXULWLHV EDVHG RQ 7H[WURQ¶V VHFXULWLHV LQFOXGLQJ any hedging, monetization or similar transactions designed to decrease the risks associated with holding Textron securities VXFK DV ]HUR-FRVW FROODUV DQG IRUZDUG VDOHV FRQWUDFWV. ,Q DGGLWLRQ, RXU 1(2V DUH SURKLELWHG IURP SOHGJLQJ 7H[WURQ VHFXULWLHV as collateral for any loan or holding Textron securities in a margin account. CLAWBACK POLICY 2XU 2015 /RQJ-7HUP ,QFHQWLYH 3ODQ, DV ZHOO DV RXU 6KRUW-7HUP ,QFHQWLYH 3ODQ, LQFOXGH D FODZEDFN SURYLVLRQ ZKLFK SURYLGHV WKDW WKH &RPPLWWHH VKDOO UHTXLUH UHLPEXUVHPHQW RI DQ DQQXDO LQFHQWLYH SDPHQW RU ORQJ-WHUP LQFHQWLYH SDPHQW XQGHU DQ DZDUG WR DQ H[HFXWLYH RI¿FHU ZKHUH (L) WKH SDPHQW ZDV SUHGLFDWHG XSRQ DFKLHYLQJ FHUWDLQ ¿QDQFLDO UHVXOWV WKDW ZHUH VXEVHTXHQWO WKH VXEMHFW RI D VXEVWDQWLDO UHVWDWHPHQW RI &RPSDQ ¿QDQFLDO VWDWHPHQWV, (LL) WKH &RPPLWWHH GHWHUPLQHV WKH executive engaged in intentional misconduct that caused or substantially caused the need for the restatement and (iii) a ORZHU SDPHQW ZRXOG KDYH EHHQ PDGH WR WKH H[HFXWLYH EDVHG XSRQ WKH UHVWDWHG ¿QDQFLDO UHVXOWV. ,Q DGGLWLRQ, WKH &RPSDQ¶V ORQJ-WHUP LQFHQWLYH DZDUG DJUHHPHQWV SURYLGH WKDW DQ H[HFXWLYH ZKR YLRODWHV WKH QRQFRPSHWLWLRQ provisions of the award during employment or within two years after termination of employment with the Company forfeits future rights under the award and must repay to the Company value received during the period beginning 180 days prior to the earlier of termination or the date the violation occurred. 7KH &RPSDQ DOVR LV VXEMHFW WR WKH ³FODZEDFN´ SURYLVLRQ RI 6HFWLRQ 304 RI WKH 6DUEDQHV-2[OH $FW RI 2002 ZKLFK JHQHUDOO UHTXLUHV SXEOLF FRPSDQ FKLHI H[HFXWLYH RI¿FHUV DQG FKLHI ¿QDQFLDO RI¿FHUV WR GLVJRUJH ERQXVHV, RWKHU LQFHQWLYH-RU HTXLW-EDVHG FRPSHQVDWLRQ, DQG SUR¿WV RQ VDOHV RI FRPSDQ VWRFN WKDW WKH UHFHLYH ZLWKLQ WKH 12-PRQWK SHULRG IROORZLQJ WKH SXEOLF UHOHDVH RI ¿QDQFLDO LQIRUPDWLRQ LI WKHUH LV D UHVWDWHPHQW EHFDXVH RI PDWHULDO QRQFRPSOLDQFH, GXH WR PLVFRQGXFW, ZLWK ¿QDQFLDO reporting requirements under the federal securities laws. COMPENSATION ARRANGEMENTS RELATING TO TERMINATION OF EMPLOYMENT 0U. 'RQQHOO¶V OHWWHU DJUHHPHQW ZLWK 7H[WURQ SURYLGHV IRU SDPHQW RI YDULQJ EHQH¿WV WR KLP XSRQ HYHQWV VXFK DV GHDWK, disability, retirement and termination under voluntary, involuntary (for cause), involuntary (not for cause or for good reason), RU FKDQJH LQ FRQWURO FLUFXPVWDQFHV. 0U. 'RQQHOO¶V WHUPLQDWLRQ EHQH¿WV DUH FRQVLVWHQW ZLWK WKH WHUPV RI RXU SUHYLRXV &(2¶V agreement and were approved by the Committee upon Mr. Donnelly’s initial hiring in 2008 in order to attract him to Textron. Since hiring Mr. Donnelly, the Committee no longer agrees to formal employment contracts which provide for individual WHUPLQDWLRQ SURWHFWLRQ. 0U. &RQQRU, 0U. /XSRQH DQG 0V. 'XII DUH HDFK HOLJLEOH IRU WHUPLQDWLRQ EHQH¿WV WKDW DUH DYDLODEOH WR DOO FRUSRUDWH RI¿FHUV DV SURYLGHG E WKH 6HYHUDQFH 3ODQ IRU 7H[WURQ .H ([HFXWLYHV. :LWK UHJDUG WR UHWLUHPHQW EHQH¿WV, LQ RUGHU IRU 7H[WURQ WR DWWUDFW 0U. 'RQQHOO WR MRLQ WKH &RPSDQ DIWHU KLV 19-HDU FDUHHU DW *(, KLV SHQVLRQ EHQH¿WV ZHUH GHVLJQHG WR WDNH LQWR DFFRXQW KLV HDUV RI VHUYLFH DW *( VR WKDW KH ZRXOG QRW EH GLVDGYDQWDJHG E MRLQLQJ 7H[WURQ. 7KLV EHQH¿W KDV EHHQ effected through the adoption of an amendment to the Textron Spillover Pension Plan adding an appendix which provides a ³ZUDS-DURXQG SHQVLRQ EHQH¿W´ WR 0U. 'RQQHOO LQ RUGHU WR FRPSHQVDWH IRU SHQVLRQ EHQH¿WV DW *( WKDW ZRXOG RWKHUZLVH QRW NHHS SDFH ZLWK KLV LQFUHDVLQJ FRPSHQVDWLRQ RYHU WKH FRXUVH RI KLV FDUHHU XSRQ MRLQLQJ 7H[WURQ. 7KH EHQH¿W WDNHV LQWR DFFRXQW KLV VHUYLFH ZLWK ERWK *( DQG 7H[WURQ DQG XVHV WKH GH¿QLWLRQ RI SHQVLRQDEOH FRPSHQVDWLRQ DQG ¿QDO DYHUDJH FRPSHQVDWLRQ LQ WKH 7H[WURQ 6SLOORYHU 3HQVLRQ 3ODQ. 7KLV QRQTXDOL¿HG SHQVLRQ EHQH¿W ZLOO EHFRPH 100% YHVWHG XSRQ WKH HDUOLHU RI KLV completion of ten years of service with Textron or his attainment of age 62 while employed by Textron and will be reduced by WKH FRPELQHG YDOXH RI DQ RWKHU EHQH¿W ZKLFK KH LV HOLJLEOH WR UHFHLYH XQGHU (L) D WD[-TXDOL¿HG GH¿QHG EHQH¿W SODQ PDLQWDLQHG E *(, (LL) D WD[-TXDOL¿HG GH¿QHG EHQH¿W SODQ PDLQWDLQHG E 7H[WURQ DQG (LLL) WKH 7H[WURQ 6SLOORYHU 3HQVLRQ 3ODQ. 0U. &RQQRU¶V OHWWHU DJUHHPHQW SURYLGHV IRU DQ HQKDQFHG SHQVLRQ EHQH¿W ZKLFK ZLOO JLYH KLP DQ DGGLWLRQDO WKUHH HDUV RI credited service under the Textron Spillover Pension Plan, subject to the vesting terms of that Plan. Neither Mr. Lupone QRU 0V. 'XII KDV EHHQ SURYLGHG DQ VXSSOHPHQWDO RU HQKDQFHG SHQVLRQ EHQH¿WV. 32 TEXTRON 2018 PROXY STATEMENT

TAX CONSIDERATIONS Section 162(m) of the Internal Revenue Code provides that no U.S. income tax deduction is allowable to a publicly held corporation for compensation in excess of $1 million paid to a “covered employee” (generally the NEOs). Under the tax law DSSOLFDEOH LQ 2017 DQG SULRU HDUV ³SHUIRUPDQFH-EDVHG FRPSHQVDWLRQ´ ZDV H[HPSW IURP WKH $1 PLOOLRQ OLPLWDWLRQ LI LW ZDV SDDEOH XSRQ PHHWLQJ SUH-HVWDEOLVKHG DQG REMHFWLYH SHUIRUPDQFH JRDOV HVWDEOLVKHG E WKH &RPPLWWHH XQGHU D SODQ WKDW KDG EHHQ DSSURYHG E VKDUHKROGHUV DQG RWKHU WD[ FRGH UHTXLUHPHQWV ZHUH PHW. ,Q DGGLWLRQ XQGHU SULRU ODZ WKH SULQFLSDO ¿QDQFLDO RI¿FHU was not treated as a covered employee. 2XU SROLF JHQHUDOO KDV EHHQ WR VHHN WR TXDOLI YDULRXV HOHPHQWV RI WKH FRPSHQVDWLRQ SDDEOH WR H[HFXWLYHV DV SHUIRUPDQFH-EDVHG FRPSHQVDWLRQ DOWKRXJK ZH PD SD QRQ-GHGXFWLEOH FRPSHQVDWLRQ LQ RUGHU WR SUHVHUYH WKH &RPPLWWHH¶V DELOLW WR structure our executive compensation program to meet the objectives discussed above, including to reward individual and team performance. Because there are uncertainties as to the application of regulations under Section 162(m), as with most tax matters, LW LV SRVVLEOH WKDW WKH TXDOL¿FDWLRQ RI DZDUGV XQGHU RXU H[HFXWLYH FRPSHQVDWLRQ SURJUDP DV SHUIRUPDQFH-EDVHG FRPSHQVDWLRQ for purposes of Section 162(m), and any deductions we have claimed based thereon prior to our 2018 tax year, may be challenged or disallowed. In December 2017, the Tax Cuts and Jobs Act (the “Tax Act”) eliminated the exemption from Section 162(m)’s deduction limit for SHUIRUPDQFH-EDVHG FRPSHQVDWLRQ HIIHFWLYH IRU WD[DEOH HDUV EHJLQQLQJ DIWHU 'HFHPEHU 31 2017 XQOHVV LW TXDOL¿HV IRU WUDQVLWLRQ relief applicable to certain arrangements in place as of November 2, 2017. In addition, the Tax Act broadened the list of covered HPSORHHV WR LQFOXGH WKH SULQFLSDO ¿QDQFLDO RI¿FHU. $V D UHVXOW RI WKH 7D[ $FW EHJLQQLQJ ZLWK RXU 2018 WD[ HDU FRPSHQVDWLRQ SDLG WR RXU QDPHG H[HFXWLYH RI¿FHUV LQFOXGLQJ SHUIRUPDQFH-EDVHG FRPSHQVDWLRQ LQ H[FHVV RI $1 PLOOLRQ JHQHUDOO ZLOO QRW EH WD[-GHGXFWLEOH ZLWK WKH H[FHSWLRQ RI FHUWDLQ FRPSHQVDWLRQ SDDEOH XQGHU DUUDQJHPHQWV LQ SODFH DV RI 1RYHPEHU 2 2017. 33 TEXTRON 2018 PROXY STATEMENT

EXECUTIVE COMPENSATION 7KH IROORZLQJ 6XPPDU &RPSHQVDWLRQ 7DEOH VHWV IRUWK LQIRUPDWLRQ FRQFHUQLQJ FRPSHQVDWLRQ RI RXU SULQFLSDO H[HFXWLYH RI¿FHU, SULQFLSDO ¿QDQFLDO RI¿FHU, HDFK RWKHU LQGLYLGXDO ZKR ZDV VHUYLQJ DV DQ H[HFXWLYH RI¿FHU DW WKH HQG RI 7H[WURQ¶V 2017 ¿VFDO HDU DQG RQH IRUPHU H[HFXWLYH RI¿FHU (HDFK, DQ ³1(2´ DQG FROOHFWLYHO, WKH ³1(2V´). SUMMARY COMPENSATION TABLE Frank T. Connor Executive Vice President and &KLHI )LQDQFLDO 2I¿FHU 2017 2016 2015 990,385 940,385 925,000 1,907,576 1,744,836 1,855,658 863,756 709,857 795,571 1,020,000 809,000 890,000 596,815 456,185 194,912 88,292 68,296 51,550 5,466,824 4,728,559 4,712,691 Julie G. Duffy Executive Vice President, Human Resources 2017 403,216 191,741 86,388 342,000 347,325 25,561 1,396,231 (1) %DVH VDODU LQFUHDVHV, LI DQ, DUH LPSOHPHQWHG LQ WKH ¿UVW SD SHULRG LQ 0DUFK RI HDFK HDU; WKHUHIRUH, DPRXQWV VKRZQ LQ WKLV FROXPQ PD QRW H[DFWO PDWFK the base salaries disclosed in the CD&A. (2) 7 KH QXPEHUV VKRZQ LQ WKLV FROXPQ UHSUHVHQW WKH JUDQW GDWH IDLU YDOXHV RI HTXLW DZDUGV JUDQWHG GXULQJ WKH ¿VFDO HDU, ZKHWKHU VHWWOHG LQ VWRFN RU FDVK. 7KH amounts for 2017 include PSUs (granted in 2015, 2016 and 2017 for all NEOs) and RSUs (granted in 2017), which are described in the CD&A. The grant date fair values have been determined based on the closing share price on the date of grant. For PSUs, since performance criteria are established on an annual EDVLV, WKH DPRXQWV VKRZQ DUH IRU WKH ¿UVW HDU RI WKH WKUHH-HDU SHUIRUPDQFH FFOH EHJLQQLQJ LQ 2017, SOXV WKH VHFRQG HDU RI WKH WKUHH-HDU SHUIRUPDQFH FFOH EHJLQQLQJ LQ 2016, SOXV WKH WKLUG HDU RI WKH WKUHH-HDU SHUIRUPDQFH FFOH EHJLQQLQJ LQ 2015. 7KH JUDQW GDWH IDLU YDOXH RI HDFK HTXLW-EDVHG FRPSRQHQW IRU 2017 is detailed below. Mr. Donnelly Mr. Connor Mr. Lupone Ms. Duffy Ms. Johnson Performance Share Units Restricted Stock Units $3,661,541 2,992,153 $1,054,850 852,726 $478,565 382,212 $106,463 85,278 $262,959 213,144 Total $6,653,694 $1,907,576 $860,777 $191,741 $476,103 The PSU values above represent target performance. Assuming maximum performance is achieved, then the grant date fair value of the PSUs would be: Mr. Donnelly $5,492,312, Mr. Connor $1,582,274, Mr. Lupone $717,847, Ms. Duffy $159,694 and Ms. Johnson $394,439. TEXTRON 2018 PROXY STATEMENT 34 Cheryl H. Johnson (7)2017261,923476,103215,9290334,58017,9481,306,483 Executive Vice President,2016445,192423,083176,963271,000422,73127,5601,766,529 Human Resources2015426,923432,877197,725297,000191,58026,6461,572,751 E. Robert Lupone2017724,231860,777387,173657,000086,2212,715,402 Executive Vice President,2016695,192798,448321,170526,000086,1272,426,937 General Counsel and Secretary 2015696,154865,509366,379589,000086,1342,603,176 Change in Pension Value and 1RQTXDOLÀHG Non-EquityDeferred StockOptionIncentive Plan CompensationAll Other SalaryAwardsAwards CompensationEarningsCompensation Name and Principal PositionYear($)(1)($)(2)($)(3)($)(4)($)(5)($)(6)Total ($) Scott C. Donnelly2017 1,191,154 6,653,6943,030,7422,160,0001,676,783112,95714,825,330 Chairman, President and2016 1,146,500 6,056,2072,464,5111,619,0001,302,71783,23612,672,171 &KLHI ([HFXWLYH 2I¿FHU 2015 1,151,154 6,376,555 2,729,480 1,817,000 237,150 80,689 12,392,028

(3) 7KH DPRXQWV WKDW DSSHDU LQ WKLV FROXPQ UHSUHVHQW WKH JUDQW GDWH IDLU YDOXH RI VWRFN RSWLRQV JUDQWHG GXULQJ WKH ¿VFDO HDU. 7KH JUDQW GDWH IDLU YDOXHV KDYH EHHQ GHWHUPLQHG EDVHG RQ WKH DVVXPSWLRQV DQG PHWKRGRORJLHV VHW IRUWK LQ 1RWH 10 6KDUH-%DVHG &RPSHQVDWLRQ LQ 7H[WURQ¶V $QQXDO 5HSRUW RQ )RUP 10-. IRU WKH ¿VFDO HDU HQGHG 'HFHPEHU 30, 2017. 7KH QXPEHU RI VKDUHV XQGHUOLQJ WKH VWRFN RSWLRQV JUDQWHG WR HDFK 1(2 GXULQJ 2017 LV GHWDLOHG LQ WKH *UDQWV RI 3ODQ-%DVHG $ZDUGV LQ )LVFDO 2017 WDEOH RQ SDJH 36. (4) 7KH DPRXQWV LQ WKLV FROXPQ UHÀHFW DQQXDO LQFHQWLYH FRPSHQVDWLRQ HDUQHG XQGHU 7H[WURQ¶V DQQXDO LQFHQWLYH FRPSHQVDWLRQ SURJUDP. (5) The amounts in this column are attributable to the change in actuarial present value from January 1, 2017 to December 30, 2017 of accumulated pension EHQH¿WV XQGHU DOO GH¿QHG EHQH¿W SODQV LQ ZKLFK WKH 1(2V SDUWLFLSDWH. )RU 0V. 'XII DQG 0V. -RKQVRQ, WKLV FROXPQ DOVR LQFOXGHV $608 DQG $596, UHVSHFWLYHO, LQ DERYH-PDUNHW QRQ-TXDOL¿HG GHIHUUHG FRPSHQVDWLRQ HDUQLQJV WKDW ZHUH SRVWHG WR WKHLU LQWHUHVW-EHDULQJ DFFRXQWV XQGHU WKH 'HIHUUHG ,QFRPH 3ODQ IRU 7H[WURQ ([HFXWLYHV (³',3´). (DUQLQJV DUH FRQVLGHUHG ³DERYH-PDUNHW´ LI WKH ZHUH KLJKHU WKDQ 120% RI WKH ORQJ-WHUP DSSOLFDEOH IHGHUDO UDWH ZLWK FRPSRXQGLQJ. (6) 7KH DPRXQWV LQ WKLV FROXPQ LQFOXGH WKH YDOXH RI RWKHU EHQH¿WV DQG WKH LQFUHPHQWDO FRVW WR 7H[WURQ LQ 2017 RI SURYLGLQJ YDULRXV SHUTXLVLWHV LQ 2017, as detailed below: Mr. Donnelly Mr. Connor Mr. Lupone Ms. Duffy Ms. Johnson Spillover Savings Plan Contribution (a) Contributions to Textron Savings Plan Contributions to Retirement Plans Perquisites (b) $ 46,058 13,500 5,400 47,999 $36,019 13,500 5,400 33,373 $61,921 24,300 0 0 $ 6,661 13,500 5,400 0 $ 0 12,548 5,400 0 Total $112,957 $88,292 $86,221 $25,561 $17,948 (D) 7KHVH DPRXQWV UHSUHVHQW WKH YDOXH RI FDVK-VHWWOHG 7H[WURQ VWRFN XQLWV FUHGLWHG WR WKH 1(2¶V 6SLOORYHU 6DYLQJV 3ODQ DFFRXQW GXULQJ WKH HDU. )RU 0U. /XSRQH, ZKR LV QRW HOLJLEOH IRU D GH¿QHG EHQH¿W SHQVLRQ SODQ, WKH &RPSDQ FUHGLWV DQ LQWHUHVW-EHDULQJ 0RRG¶V DFFRXQW ZLWKLQ WKH 663 ZLWK DQ DPRXQW HTXDO WR 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) $4,563 for an annual physical exam for Mr. Donnelly, (iii) $17,856 for Mr. Donnelly’s usage of corporate aircraft for personal travel and 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) $21,944 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) $22,580 and $8,429 for Mr. Donnelly and Mr. Connor, respectively, representing the Company paid portion of the costs for hangar space utilized by the executives’ personal aircraft. In addition, IDPLO PHPEHUV DQG LQYLWHG JXHVWV RI 0U. 'RQQHOO RFFDVLRQDOO À DV DGGLWLRQDO SDVVHQJHUV RQ EXVLQHVV ÀLJKWV. ,Q WKRVH FDVHV, WKH DJJUHJDWH LQFUHPHQWDO FRVW WR WKH &RPSDQ LV D GH PLQLPLV DPRXQW DQG, DV D UHVXOW, QR DPRXQW LV UHÀHFWHG LQ WKH 6XPPDU &RPSHQVDWLRQ 7DEOH. 7H[WURQ YDOXHV WKH SHUVRQDO XVH RI FRUSRUDWH DLUFUDIW E XVLQJ DQ LQFUHPHQWDO FRVW PHWKRG WKDW PXOWLSOLHV WKH KRXUV ÀRZQ RQ D SHUVRQDO ÀLJKW E DQ KRXUO GLUHFW RSHUDWLQJ FRVW UDWH IRU WKH DLUFUDIW ÀRZQ. 7KH UDWH SHU ÀLJKW KRXU LV GHULYHG IURP WKH DLUFUDIW¶V YDULDEOH RSHUDWLQJ FRVWV ZKLFK LQFOXGH ODQGLQJ IHHV, IXHO, KDQJDU IHHV, PDLQWHQDQFH, FDWHULQJ, VHFXULW IHHV, FUHZ H[SHQVHV, GH-LFLQJ FRVWV DQG RWKHU GLUHFW RSHUDWLQJ H[SHQVHV. 7KH LQFUHPHQWDO FRVW RI ORFDWLQJ DLUFUDIW WR WKH RULJLQ RI D WULS, RU returning aircraft from the completion of a trip are also included in the amount reported. (7) Ms. Johnson voluntarily terminated her employment with Textron on July 17, 2017. 35 TEXTRON 2018 PROXY STATEMENT

GRANTS OF PLAN-BASED AWARDS IN FISCAL 2017 7KH IROORZLQJ WDEOH VHWV IRUWK LQIRUPDWLRQ RQ SODQ-EDVHG FRPSHQVDWLRQ DZDUGV JUDQWHG WR WKH 1(2V GXULQJ 7H[WURQ¶V 2017 ¿VFDO year. Annual equity awards were approved on January 27, 2017 for grant on March 1, 2017. Frank T. Connor Annual IC PSUs RSUs Stock Options PSUs (7) 850,000 1,700,000 3/1/2017 3/1/2017 3/1/2017 3/1/2017 1,297,767 1,946,651 379,003 852,726 863,756 675,847 17,199 62,591 49.58 Julie G. Duffy Annual IC PSUs (8) RSUs Stock Options PSUs (7)(8) 285,000 570,000 3/1/2017 3/1/2017 3/1/2017 3/1/2017 129,761 194,641 37,896 85,278 86,388 68,567 1,720 6,260 49.58 (1) 7KHVH DPRXQWV UHIHU WR DZDUGV RI DQQXDO LQFHQWLYH FRPSHQVDWLRQ PDGH XQGHU RXU 6KRUW-7HUP ,QFHQWLYH 3ODQ. 7KH SHUIRUPDQFH PHWULFV DQG PHWKRGRORJ IRU calculating payments are described in the CD&A. (2) 7KHVH DPRXQWV UHIHU WR 368 JUDQWV PDGH XQGHU WKH 7H[WURQ ,QF. 2015 /RQJ-7HUP ,QFHQWLYH 3ODQ ZKLFK DUH SHUIRUPDQFH-EDVHG ORQJ-WHUP JUDQWV RI VKDUH XQLWV SDLG LQ FDVK GHVLJQHG WR UHZDUG WKH DFKLHYHPHQW RI VSHFL¿HG JRDOV RYHU WKUHH GLVWLQFW ¿VFDO-HDU SHUIRUPDQFH SHULRGV. 7KH SHUIRUPDQFH PHWULFV DQG PHWKRGRORJ IRU FDOFXODWLQJ SDPHQWV DUH GHVFULEHG LQ WKH &'&$. *UDQWV RI 368V LQ 2017 YHVW DW WKH HQG RI ¿VFDO 2019. 7KH ³WDUJHW´ DPRXQW WR EH SDLG LQ 2020 DVVXPHV 100% HDUQHG DQG LV EDVHG RQ WKH 2017 ¿VFDO HDU-HQG VKDUH SULFH RI $56.59. 7KH ³PD[LPXP´ WKDW FDQ EH SDLG SHU WKH SODQ GHVLJQ LV 150% RI WKH 368V JUDQWHG DV GHVFULEHG LQ WKH &'&$. %RWK WDUJHW DQG PD[LPXP DPRXQWV DVVXPH PHGLDQ 765 SHUIRUPDQFH IRU WKH WKUHH-HDU SHUIRUPDQFH SHULRG. (3) 7KHVH DPRXQWV UHSUHVHQW WKH QXPEHU RI 568V JUDQWHG LQ 2017 SXUVXDQW WR WKH 7H[WURQ ,QF. 2015 /RQJ-7HUP ,QFHQWLYH 3ODQ. 568V HDUQ GLYLGHQG HTXLYDOHQWV until vested and vest ratably over three years, beginning on March 1, 2020, three years after the grant date, and annually thereafter. (4) 7KHVH DPRXQWV UHSUHVHQW WKH QXPEHU RI VWRFN RSWLRQV JUDQWHG LQ 2017 SXUVXDQW WR WKH 7H[WURQ ,QF. 2015 /RQJ-7HUP ,QFHQWLYH 3ODQ. $OO DQQXDO JUDQWV RI VWRFN options vest ratably over three years, beginning on March 1, 2018, and annually thereafter. (5) 5HÀHFWV WKH H[HUFLVH SULFH IRU WKH VWRFN RSWLRQV JUDQWHG RQ 0DUFK 1 2017 ZKLFK LV HTXDO WR WKH FORVLQJ SULFH RQ WKH JUDQW GDWH. (6) Represents the grant date fair value of each equity award listed in the table as determined in accordance with generally accepted accounting principles. With UHVSHFW WR 368V JUDQWHG LQ 2017 WKH DPRXQWV LQ WKLV FROXPQ UHSUHVHQW WKH YDOXH RI RQO WKH 2017 SRUWLRQ RI WKH 2017-2019 JUDQW VLQFH WKH JUDQW LV VXEMHFW WR WKUHH VLQJOH-HDU SHUIRUPDQFH SHULRGV (2017 2018 DQG 2019). (7) 5HSUHVHQWV JUDQW GDWH IDLU YDOXH RI WKH 2017 SRUWLRQ RI WKH 2015-2017 DQG 2016-2018 368 DZDUGV. (8) 0V. 'XII¶V 368V DUH QRW VXEMHFW WR WKH 765 PRGL¿HU DV GHVFULEHG LQ WKH &'&$. 36 TEXTRON 2018 PROXY STATEMENT Cheryl H. JohnsonAnnual IC 3/1/2017PSUs324,419486,62994,744 3/1/2017RSUs4,299213,144 3/1/2017 Stock Options15,64749.58215,929 3/1/2017PSUs (7)168,215 E. Robert LuponeAnnual IC547,500 1,095,000 3/1/2017PSUs581,700872,550169,881 3/1/2017RSUs7,709382,212 3/1/2017 Stock Options28,05649.58387,173 3/1/2017PSUs (7)308,684 All Other StockAll OtherGrant Estimated PossibleEstimated Future Awards:OptionExercise Date Fair Payouts UnderPayouts UnderNumberAwards:or BaseValue Non-Equity IncentiveEquity Incentive of Shares Number ofPriceof Stock Plan Awards (1)Plan Awards (2)of StockSecuritiesof Optionand or Stock Underlying AwardsOption GrantGrantTargetMaximumTargetMaximum Units (#)Options (#)($/sh)Awards NameDateType($)($)($)($)(3)(4)(5)(6) Scott C. DonnellyAnnual IC1,800,000 3,600,000 3/1/2017PSUs4,553,594 6,830,3901,329,841 3/1/2017RSUs60,3502,992,153 3/1/2017 Stock Options219,61949.583,030,742 3/1/2017PSUs (7)2,331,700

OUTSTANDING EQUITY AWARDS AT 2017 FISCAL YEAR-END The following table sets forth information with respect to the NEOs concerning unexercised options, stock awards that have not HW YHVWHG DQG HTXLW LQFHQWLYH SODQ DZDUGV DV RI WKH HQG RI RXU 2017 ¿VFDO HDU Option Awards Stock Awards Frank T. Connor 3/1/2017 3/1/2016 3/1/2015 3/1/2014 3/1/2013 3/1/2012 3/1/2011 3/1/2010 8/5/2009 0 22,906 37,804 63,361 72,000 91,607 69,566 83,933 80,000 62,591 45,812 18,901 0 0 0 0 0 0 49.58 34.50 44.31 39.70 28.47 27.76 26.25 20.21 14.34 3/1/2027 3/1/2026 3/1/2025 3/1/2024 3/1/2023 3/1/2022 3/1/2021 3/1/2020 8/5/2019 PSU RSU PSU RSU RSU RSU RSU 2017 2017 2016 2016 2015 2014 2013 28,666 1,297,767 17,199 973,291 34,420 1,558,262 20,652 18,238 13,469 8,742 1,168,697 1,032,088 762,211 494,710 Julie G. Duffy 3/1/2017 3/1/2016 3/1/2015 3/1/2014 0 2,337 3,818 6,562 6,260 4,672 1,909 0 49.58 34.50 44.31 39.70 3/1/2027 3/1/2026 3/1/2025 3/1/2024 PSU RSU PSU RSU RSU RSU RSU 2017 2017 2016 2016 2015 2014 2013 2,293 129,761 1,720 97,335 2,808 158,905 2,106 1,842 1,395 928 119,179 104,239 78,943 52,516 (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. 37 TEXTRON 2018 PROXY STATEMENT Cheryl H. Johnson (6) 3/1/2017015,64749.58 7/17/2021PSU20177,166324,419 3/1/20165,71111,42034.50 7/17/2021RSU20174,299243,280 3/1/20159,3964,69744.31 7/17/2021PSU20168,581388,479 3/1/201413,731039.70 7/17/2021RSU20165,148291,325 3/1/201314,210028.47 7/17/2020RSU20154,533256,522 3/1/20124,419027.76 7/17/2020RSU20142,919165,186 3/1/20111,628026.25 7/17/2020 E. Robert Lupone3/1/2017028,05649.583/1/2027PSU201712,849581,700 3/1/201610,36420,72734.503/1/2026RSU20177,709436,252 3/1/201517,4108,70444.313/1/2025PSU201615,573705,021 3/1/201429,752039.703/1/2024RSU20169,344528,777 3/1/201334,831028.473/1/2023RSU20158,399475,299 3/1/201245,000027.763/1/2022RSU20146,324357,875 RSU20134,229239,319 Number ofNumber of SecuritiesSecurities UnderlyingUnderlyingOption Grant Unexercised Unexercised Exercise Option Date Options (#)Options (#)Price Expiration Name(1)Exercisable Unexercisable ($)(2)Date Equity EquityIncentive IncentivePlan Plan Awards: Market Awards:Market or ValueNumber of Payout Number of of Shares Unearned Value of Shares oror Shares,Unearned Units ofUnits ofUnits, or Shares, Units, StockStockOtheror Other Type ofThat Have That Have Rights That Rights That StockNot NotHave NotHave Not AwardGrant VestedVested VestedVested (3)Year(#)($)(4)(#)($)(5) Scott C. Donnelly3/1/20170219,61949.583/1/2027PSU2017100,5834,553,594 3/1/201679,526159,05234.503/1/2026RSU201760,3503,415,207 3/1/2015 129,69864,84844.313/1/2025PSU2016119,5015,410,049 3/1/2014 222,319039.703/1/2024RSU201671,7004,057,503 3/1/2013 243,157028.473/1/2023RSU201562,5743,541,063 3/1/2012 300,000027.763/1/2022RSU201447,2612,674,500 3/1/2011 227,766026.253/1/2021RSU201329,5241,670,763 3/1/2010 235,602020.213/1/2020 2/27/200983,04705.65 2/27/2019 7/3/2008 200,000047.847/3/2018 Outstanding Equity Awards at 2017 Fiscal Year-End

(3) The following types of stock awards are shown in this table: (a) “PSU” UHIHUV WR SHUIRUPDQFH VKDUH XQLWV. 7KHVH XQLWV UHZDUG DFKLHYHPHQW RI ORQJ-WHUP JRDOV RYHU D WKUHH-HDU SHUIRUPDQFH SHULRG, YHVWLQJ DW WKH HQG RI WKH WKLUG ¿VFDO HDU. 7KH DUH VHWWOHG LQ FDVK DQG YDOXHG EDVHG RQ WKH DYHUDJH FORVLQJ SULFH RI 7H[WURQ FRPPRQ VWRFN IRU WKH ¿UVW WHQ WUDGLQJ GDV RI WKH ¿VFDO HDU IROORZLQJ YHVWLQJ. )XUWKHU LQIRUPDWLRQ DERXW WKHVH DZDUGV FDQ EH IRXQG LQ WKH &'&$. (b) “RSU” refers to restricted stock units. RSUs vest ratably over three years 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. (4) 7KH PDUNHW YDOXH RI 568V WKDW KDYH QRW YHVWHG DV RI 'HFHPEHU 30, 2017 ZDV FDOFXODWHG XVLQJ WKH ¿VFDO HDU-HQG FORVLQJ VKDUH SULFH RI $56.59 PXOWLSOLHG E the number of unvested units as of that date. (5) PSUs granted in 2016 and 2017 vest, to the extent earned, on December 29, 2018 and December 28, 2019, respectively. The market value of PSUs that have QRW YHVWHG DV RI HDU-HQG 2017 ZDV FDOFXODWHG XVLQJ WKH ¿VFDO HDU-HQG FORVLQJ VKDUH SULFH RI $56.59 PXOWLSOLHG E WKH QXPEHU RI XQYHVWHG XQLWV DVVXPLQJ WKDW 100% RI WKH XQLWV DUH HDUQHG DQG DVVXPLQJ D PHGLDQ 765 SHUIRUPDQFH PRGL¿HU IRU WKH WKUHH-HDU SHUIRUPDQFH SHULRG (UHSUHVHQWLQJ WKH WDUJHW SHUIRUPDQFH OHYHO), H[FHSW ZLWK UHVSHFW WR 0V. 'XII¶V 368V ZKLFK DUH QRW VXEMHFW WR WKH 765 PRGL¿HU. (6) Because Ms. Johnson was eligible for retirement when she voluntarily terminated her employment with the Company, her unvested stock options will continue to vest per their respective vesting schedules for 48 months after termination, and vested stock options will remain exercisable until the earlier of the remaining term of the options or 48 months after termination. Her PSUs and RSUs also will continue to vest according to their vesting schedules. OPTION EXERCISES AND STOCK VESTED IN FISCAL 2017 The following table provides information concerning option exercises and the vesting of stock, including PSUs and RSUs, during 7H[WURQ¶V 2017 ¿VFDO HDU IRU HDFK 1(2. Option Awards Stock Awards Frank T. Connor 0 0 PSU RSU 21,427 26,132 1,251,765 1,295,625 2,547,390 Total Julie G. Duffy 0 0 PSU RSU 2,623 2,799 153,236 138,774 292,010 Total (1) “PSU” and “RSU” are described in more detail in footnote 3 to the previous table. (2) Valuation methodology for the PSUs is described in footnote 5 to the previous table, using actual performance results. (3) 1,524 RSUs held by Ms. Johnson vested upon the termination of her employment with Textron. 38 TEXTRON 2018 PROXY STATEMENT Cheryl H. Johnson00PSU5,325311,087 RSU10,450 (3)519,763 Total830,850 E. Robert Lupone00PSU9,868576,489 RSU22,3691,084,795 Total1,661,284 Number ofValue SharesRealized on Acquired onExercise NameExercise (#)($) Number of Type ofShares or UnitsValue Equity AcquiredRealized on Awardon Vesting Vesting (1)(#)($)(2) Scott C. Donnelly17,699753,800PSU73,5124,294,571 RSU88,0484,365,420 Total8,659,991 Option Exercises and Stock Vested in Fiscal 2017

PENSION BENEFITS IN FISCAL 2017 7KH WDEOH EHORZ VHWV IRUWK LQIRUPDWLRQ RQ WKH SHQVLRQ EHQH¿WV IRU WKH 1(2V XQGHU HDFK RI WKH &RPSDQ¶V SHQVLRQ SODQV: 3HQVLRQ %HQHÀWV 8.42 8.42 3.00 (2) 0 0 0 0 Frank T. Connor TRP Spillover Add’l Credited Service 319,903 1,620,810 691,739 2,632,452 Total Julie G. Duffy TRP Spillover TSPPSO 20.50 20.50 20.50 660,174 628,934 202,300 0 0 0 1,491,408 Total (1) 7KH SUHVHQW YDOXH RI WKH DFFXPXODWHG EHQH¿W KDV EHHQ FDOFXODWHG FRQVLVWHQW ZLWK WKH DVVXPSWLRQV VHW IRUWK LQ 1RWH 11 5HWLUHPHQW 3ODQV LQ 7H[WURQ¶V $QQXDO 5HSRUW RQ )RUP 10-. IRU WKH ¿VFDO HDU HQGHG 'HFHPEHU 30 2017 (2) Years of extra service granted to the executive by employment letter. (3) Mr. Lupone is not eligible to participate in any of our pension plans. A brief description of each of the Company’s pension plans referenced above follows: TRP: TEXTRON RETIREMENT PROGRAM (IIHFWLYH -DQXDU 1 2007 7H[WURQ FRQVROLGDWHG LWV UHWLUHPHQW EHQH¿WV IRU 8 6 VDODULHG DQG HOLJLEOH EDUJDLQHG HPSORHHV LQWR D VLQJOH SURJUDP WKH 7H[WURQ 5HWLUHPHQW 3URJUDP (³753´) 7KH 753 LV GHVLJQHG WR EH D ³ÀRRU-RIIVHW´ DUUDQJHPHQW ZKLFK KDV WZR SDUWV 7KH ¿UVW LV D WUDGLWLRQDO GH¿QHG SHQVLRQ EHQH¿W ZKLFK SURYLGHV D VHW PRQWKO LQFRPH (SHQVLRQ) DW UHWLUHPHQW WKURXJK D IRUPXOD EDVHG RQ DJH HDUV RI VHUYLFH DQG DQQXDO FRPSHQVDWLRQ 7KH VHFRQG LV D QHZ GH¿QHG FRQWULEXWLRQ EHQH¿W FDOOHG WKH Textron Retirement Account Plan. Transition rules between the prior plan design and the new plan design provide that participants ZKR PHHW FHUWDLQ UXOHV ZLOO EH JUDQGIDWKHUHG HQWLWOLQJ WKHP WR WKH ODUJHU RI WKH EHQH¿W FDOFXODWHG XQGHU WKH SULRU SHQVLRQ IRUPXOD DQG WKH EHQH¿W FDOFXODWHG XQGHU WKH 753 1RQH RI WKH 1(2V PHW WKH JUDQGIDWKHULQJ UXOHV XQGHU WKH 753 KRZHYHU 0V -RKQVRQ did meet the grandfathering rules under the Spillover Pension Plan (described below) which entitles her to the larger amount of WKH WZR FDOFXODWLRQV XQGHU WKDW 3ODQ 7KH 753 LV IXQGHG DQG WD[ TXDOL¿HG %HQH¿WV XQGHU WKH QHZ GH¿QHG SHQVLRQ IRUPXOD DUH EDVHG RQ RQH DQG RQH-WKLUG SHUFHQW RI HOLJLEOH FRPSHQVDWLRQ %HQH¿WV XQGHU WKH SULRU IRUPXOD DUH EDVHG RQ D RQH SHUFHQW DQQXDO EHQH¿W IRU HOLJLEOH FRPSHQVDWLRQ XS WR WKH ³FRYHUHG FRPSHQVDWLRQ´ OHYHO ($64 251 LQ 2017) SOXV DQ DGGLWLRQDO DPRXQW HTXDO WR RQH DQG RQH-KDOI SHUFHQW RI HOLJLEOH FRPSHQVDWLRQ LQ H[FHVV RI covered compensation. “Eligible Compensation” includes base salary plus annual incentive payments in a given year, up to WKH ,QWHUQDO 5HYHQXH &RGH OLPLW ($270 000 LQ 2017) 7KH EHQH¿W IRUPXOD LV FDOFXODWHG EDVHG RQ HOLJLEOH HPSORHHV¶ KLJKHVW FRQVHFXWLYH ¿YH-HDU DYHUDJH HOLJLEOH FRPSHQVDWLRQ WKURXJKRXW WKHLU FDUHHU DW 7H[WURQ 3URYLGHG DQ HPSORHH PHHWV WKH ¿YH HDUV RI TXDOLILQJ VHUYLFH WR EHFRPH YHVWHG LQ WKH 753 WKH DFFXPXODWHG EHQH¿W HDUQHG GXULQJ DQ HPSORHH¶V FDUHHU LV SDDEOH in monthly installments after retirement. While the normal retirement age under the TRP is 65, eligible grandfathered employees FDQ HDUQ D IXOO EHQH¿W XSRQ DWWDLQPHQW RI DJH 62 (OLJLEOH HPSORHHV ZKR PHHW GH¿QHG DJH DQG VHUYLFH FULWHULD FDQ UHWLUH DQG 39 TEXTRON 2018 PROXY STATEMENT Cheryl H. JohnsonTRP (Bell)3.50132,3310 TRP (Textron)15.75606,5420 Spillover (Bell)3.50154,5120 Spillover (Textron)15.75743,6010 Total1,636,9860 E. Robert Lupone (3)N/AN/AN/AN/A Number ofPresent ValuePayments Years ofof AccumulatedDuring Last PlanCredited%HQHÀW Fiscal Year NameNameService($)(1)($) Scott C. DonnellyTRP9.50333,9730 Spillover9.502,841,2950 Wrap Around28.50 (2)5,548,4990 Total8,723,7670

EHJLQ FROOHFWLQJ D UHGXFHG EHQH¿W DV HDUO DV DJH 55. %RWK 0U. &RQQRU DQG 0V. -RKQVRQ TXDOLI IRU WKH HDUO UHWLUHPHQW EHQH¿W under the TRP. 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 DW DQ DJH. 7KH YDOXH RI DQ GLVWULEXWLRQ IURP WKH 7H[WURQ 5HWLUHPHQW $FFRXQW 3ODQ RIIVHWV EHQH¿WV DFFUXHG DIWHU 2006 XQGHU 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 4% of eligible compensation up to the Internal Revenue Code Limit. SPP: SPILLOVER PENSION PLAN 7H[WURQ PDLQWDLQV WKH 6SLOORYHU 3HQVLRQ 3ODQ (³633´) WR FRPSHQVDWH FHUWDLQ 7H[WURQ H[HFXWLYHV IRU SHQVLRQ EHQH¿WV WKDW ZRXOG KDYH EHHQ HDUQHG EXW IRU OLPLWDWLRQV LPSRVHG RQ WD[-TXDOL¿HG SODQV XQGHU IHGHUDO ODZ. 7KH IRUPXOD IRU WKH 633 LV WKH VDPH DV WKH IRUPXOD IRU WKH GH¿QHG EHQH¿W SRUWLRQ RI WKH TXDOL¿HG SODQ (WKH 753). (OLJLEOH FRPSHQVDWLRQ FRPSRQHQWV LQFOXGH EDVH VDODU and annual incentive compensation paid in a given year. The amount included in the formula equals the total of these components (ZKHWKHU RU QRW GHIHUUHG) OHVV WKH ,QWHUQDO 5HYHQXH &RGH OLPLW QRWHG DERYH ($270 000 LQ 2017). %HQH¿WV XQGHU WKH 633 DOVR YHVW DIWHU ¿YH HDUV RI TXDOLILQJ VHUYLFH DQG DUH JHQHUDOO SDLG XQGHU WKH VDPH DJH DQG VHUYLFH UHTXLUHPHQWV DV WKH GH¿QHG EHQH¿W SRUWLRQ RI WKH 753. 7KLV SODQ LV XQIXQGHG DQG QRW TXDOL¿HG IRU WD[ SXUSRVHV. In 2008, an appendix was added to the SPP for certain designated participants hired on or after January 1, 2008, including Mr. 'RQQHOO WR SURYLGH D ³ZUDS-DURXQG SHQVLRQ EHQH¿W.´ 7KLV DSSHQGL[ ZLOO UHFRJQL]H DQ DGGLWLRQDO EHQH¿W VHUYLFH DFFUXDO LGHQWL¿HG LQ WKH RIIHU OHWWHU RI WKH GHVLJQDWHG SDUWLFLSDQW DQG WKH UHVXOWLQJ FDOFXODWLRQ ZLOO EH RIIVHW E WKH SULRU HPSORHU DJH 65 EHQH¿W DV GHVFULEHG LQ WKH RIIHU OHWWHU DQG DQ TXDOL¿HG DQG QRQ-TXDOL¿HG DJH 65 EHQH¿W SURYLGHG E 7H[WURQ. 6SHFL¿F WR 0U. 'RQQHOO UHIHU WR WKH &'&$ IRU GHWDLOV RQ KLV ³ZUDS-DURXQG´ EHQH¿W. Effective January 1, 2010, the SPP was closed to new entrants except for those who were participants in the Textron Retirement Program on December 31, 2009. Mr. Lupone, therefore, is not eligible to participate in the SPP. TSPPSO: TEXTRON SUPPLEMENTAL PENSION PLAN IN LIEU OF STOCK OPTIONS 7KH 7H[WURQ 6XSSOHPHQWDO 3HQVLRQ 3ODQ LQ /LHX RI 6WRFN 2SWLRQV (³763362´) LV D SHQVLRQ HQKDQFHPHQW EHQH¿W WKDW ZDV provided to a select group of employees whose stock option grants were reduced beginning in 2003. The plan increases SHQVLRQDEOH HDUQLQJV IRU WKHVH HPSORHHV E DSSUR[LPDWHO 10-15%. %HQH¿WV XQGHU WKH 763362 DOVR YHVW DIWHU ¿YH HDUV RI TXDOLILQJ VHUYLFH DQG DUH JHQHUDOO SDLG XQGHU WKH VDPH DJH DQG VHUYLFH UHTXLUHPHQWV DV WKH GH¿QHG EHQH¿W SRUWLRQ RI WKH 753. 7KLV SODQ LV XQIXQGHG DQG QRW TXDOL¿HG IRU WD[ SXUSRVHV. The TSPPSO is no longer open to new entrants. Based on Ms. Duffy’s position in 2003, she is the only NEO who is eligible to participate in the plan. 40 TEXTRON 2018 PROXY STATEMENT

NONQUALIFIED DEFERRED COMPENSATION 7KH WDEOH EHORZ VKRZV WKH GHIHUUHG FRPSHQVDWLRQ DFWLYLW IRU HDFK 1(2 GXULQJ 2017 XQGHU QRQTXDOL¿HG GHIHUUHG FRPSHQVDWLRQ plans maintained by Textron. 1RQTXDOLÀHG 'HIHUUHG &RPSHQVDWLRQ 53,814 0 411,722 Frank T. Connor Spillover Savings Plan 36,019 1,127 3,414 0 0 19,270 30,499 Julie G. Duffy Deferred Income Plan Spillover Savings Plan 0 6,661 Total 4,541 Total49,769 Spillover Savings Plan 0 0 4,352 30,382 (1) The amounts shown in this column include contributions made by Textron into each executive’s notional deferred income account in the Textron Spillover Savings Plan (the “SSP”) in 2017. There are two types of Company contributions made under the SSP. First, if a participant contributes at least 10% of eligible FRPSHQVDWLRQ WR WKH WD[-TXDOL¿HG 7H[WURQ 6DYLQJV 3ODQ (³763´), WKHQ WKH SDUWLFLSDQW¶V VWRFN XQLW DFFRXQW ZLWKLQ WKH 663 LV FUHGLWHG ZLWK D PDWFK HTXDO WR 5% of eligible compensation reduced by the matching contribution under the TSP. Second, for Mr. Lupone and other employees hired after 2009 who are not HOLJLEOH IRU D GH¿QHG EHQH¿W SHQVLRQ SODQ, WKH &RPSDQ FUHGLWV WKH LQWHUHVW-EHDULQJ 0RRG¶V DFFRXQW ZLWKLQ WKH 663 ZLWK DQ DPRXQW HTXDO WR 4% RI HOLJLEOH compensation reduced by the contribution that was made by the Company under the TSP. These amounts are also reported in the “All Other Compensation” column in the Summary Compensation table on page 34. (2) 7 KH DPRXQWV LQ WKLV FROXPQ UHÀHFW DJJUHJDWH HDUQLQJV GXULQJ WKH ¿VFDO HDU RQ DPRXQWV DFFUXHG LQ WKH SDUWLFLSDQWV¶ DFFRXQWV XQGHU WKH 663 DQG WKH ',3, LI DSSOLFDEOH, EDVHG XSRQ WKH WHUPV RI HDFK SODQ, DV GHVFULEHG EHORZ. 7R WKH H[WHQW WKH FUHGLWHG UDWH H[FHHGV 120% RI WKH ORQJ-WHUP DSSOLFDEOH IHGHUDO UDWH, VXFK HDUQLQJV DUH FRQVLGHUHG ³DERYH-PDUNHW HDUQLQJV´. 7KH DPRXQW RI DERYH-PDUNHW HDUQLQJV LQ WKH ',3 ZDV $608 IRU 0V. 'XII DQG $596 IRU 0V. -RKQVRQ. 7KHVH HDUQLQJV DUH DOVR UHSRUWHG LQ WKH ³&KDQJH LQ 3HQVLRQ 9DOXH DQG 1RQTXDOL¿HG 'HIHUUHG &RPSHQVDWLRQ (DUQLQJV´ FROXPQ LQ WKH 6XPPDU &RPSHQVDWLRQ 7DEOH. (3) 2I WKHVH EDODQFHV, WKH IROORZLQJ DPRXQWV ZHUH UHSRUWHG LQ 6XPPDU &RPSHQVDWLRQ 7DEOHV LQ SULRU-HDU SUR[ VWDWHPHQWV: 0U. 'RQQHOO $323,412, Mr. Connor $203,114, Mr. Lupone $247,819 and Ms. Johnson $23,375. This information is provided to clarify the extent to which amounts payable as deferred compensation represent compensation reported in our prior proxy statements, rather than additional currently earned compensation. A brief description of the Company’s deferred compensation plans referenced above follows: DIP: DEFERRED INCOME PLAN FOR TEXTRON EXECUTIVES NEOs deferring compensation into the Deferred Income Plan for Textron Executives (“DIP”) have forgone current compensation in exchange for an unsecured promise from the Company to pay the deferred amount after their employment ends. NEOs can GHIHU XS WR 80% RI WKHLU EDVH VDODU DQG FHUWDLQ RWKHU FDVK FRPSHQVDWLRQ LQFOXGLQJ DQQXDO LQFHQWLYH FRPSHQVDWLRQ DQG ORQJ-WHUP LQFHQWLYH GLVWULEXWLRQV VHWWOHG LQ FDVK. 7KH ³SULQFLSDO´ DPRXQW WKDW LV GHIHUUHG FDQ EH FUHGLWHG ZLWK HLWKHU D 0RRG¶V-EDVHG interest rate or a rate of return that approximates the return on investment for a share of Textron common stock, including dividend equivalents, based upon the elections made annually by each NEO. The interest rate applicable to the Moody’s account is the average Moody’s Corporate Bond Yield Index as published by Moody’s Investors Service, Inc. The compounded Moody’s yield for 2017 was 3.79%, which was applied to all deferrals made subsequent to December 31, 2001. SSP: TEXTRON SPILLOVER SAVINGS PLAN 7KH 7H[WURQ 6SLOORYHU 6DYLQJV 3ODQ (WKH ³663´) PDNHV XS IRU IRUJRQH &RPSDQ PDWFKHV LQWR WKH WD[-TXDOL¿HG 7H[WURQ 6DYLQJV Plan because of federal compensation limits, as a result of deferring income under the DIP, and for employees hired or rehired DIWHU 2009 ZKR DUH QRW HOLJLEOH IRU D GH¿QHG EHQH¿W SHQVLRQ SODQ. 1(2 FRQWULEXWLRQV WR WKH TXDOL¿HG VDYLQJV SODQ DUH FDSSHG DW 10% of eligible compensation up to the Internal Revenue Code limit ($270,000 in 2017). The contribution amount for employees hired or rehired after 2009 is based on 4% of eligible compensation. Contributions under the SSP are tracked in the form of XQIXQGHG ERRN-HQWU DFFRXQWV FUHGLWHG DV VWRFN XQLWV, ZKLFK HDUQ GLYLGHQG HTXLYDOHQWV DQG ZKLFK DUH UHLQYHVWHG LQWR VWRFN XQLWV. NEOs are not permitted to make contributions to the SSP. 41 TEXTRON 2018 PROXY STATEMENT Cheryl H. JohnsonDeferred Income Plan02,612065,247 Total6,9640Total95,629 E. Robert LuponeSpillover Savings Plan61,92130,5280385,934 RegistrantAggregateAggregateAggregate ContributionsEarningsWithdrawals/Balance at Planin Last FYin Last FYDistributionsLast FYE NameName($)(1)($)(2)($)($)(3) Scott C. DonnellySpillover Savings Plan46,05895,0590709,711

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL 7KH GLVFXVVLRQ DQG WDEOHV EHORZ UHÀHFW WKH DPRXQW RI FRPSHQVDWLRQ WKDW ZRXOG EHFRPH SDDEOH WR HDFK RI WKH 1(2V (RWKHU than Ms. Johnson) under existing plans and arrangements if the named executive’s employment had terminated and/or a change LQ FRQWURO KDG RFFXUUHG RQ 'HFHPEHU 29, 2017, WKH ODVW EXVLQHVV GD RI 7H[WURQ¶V 2017 ¿VFDO HDU ,QIRUPDWLRQ LV SURYLGHG ZLWK respect to the following termination scenarios—voluntary, “for cause”, death or disability, “not for cause” or “good reason”, change in control—and is based upon the named executive’s compensation and service levels as of such date and, if applicable, based on the Company’s closing stock price on that date. In addition, in connection with any future actual termination of employment, the Company may determine to enter into an DJUHHPHQW RU WR HVWDEOLVK DQ DUUDQJHPHQW SURYLGLQJ DGGLWLRQDO EHQH¿WV RU DPRXQWV RU DOWHULQJ WKH WHUPV RI EHQH¿WV GHVFULEHG below, as the Organization and Compensation Committee believes appropriate. The actual amounts that would be paid upon a NEO’s termination of employment can be determined only at the time of such executive’s separation from the Company. Due to WKH QXPEHU RI IDFWRUV WKDW DIIHFW WKH QDWXUH DQG DPRXQW RI DQ EHQH¿WV SURYLGHG XSRQ WKH HYHQWV GLVFXVVHG EHORZ, DQ DFWXDO amounts paid or distributed may be higher or lower than reported below. Factors that could affect these amounts include the timing during the year of any such event, the Company’s share price and the executive’s age. PAYMENTS MADE UPON A VOLUNTARY TERMINATION BY AN EXECUTIVE Voluntary termination occurs when the NEO leaves the Company at his or her own will (e.g., voluntary resignation or retirement). Upon a voluntary termination executives are entitled only to their vested or accrued obligations. Additionally, because Ms. Duffy is retirement eligible under the terms of grants made prior to 2014 (at least 20 years of service to Textron) as of December 30, 2017, XSRQ KHU YROXQWDU WHUPLQDWLRQ, KHU 568V LVVXHG SULRU WR 2014 ZRXOG DFFHOHUDWH DQG YHVW SUR-UDWD PAYMENTS MADE UPON A TERMINATION “FOR CAUSE” BY THE COMPANY A “for cause” termination occurs when a NEO is separated from Textron after engaging in one or more activities including, but not limited to: (i) conviction of, or pleading nolo contendere RU JXLOW WR, D IHORQ (RWKHU WKDQ D WUDI¿F LQIUDFWLRQ RU D FULPH LQYROYLQJ vicarious liability under certain circumstances), (ii) willful misrepresentation, fraud or dishonesty for personal enrichment at the expense of Textron, (iii) willful misconduct or behavior, willful violation of the Company’s Business Conduct Guidelines, or breach RI WKH 1(2¶V ¿GXFLDU GXWLHV, LQ HDFK FDVH, WKDW UHVXOWV LQ PDWHULDO KDUP WR 7H[WURQ, RU (LY) ZLOOIXO IDLOXUH WR DWWHPSW WR SHUIRUP KLV RU her duties or willful failure to attempt to follow the legal written direction of the Board. Upon a termination “for cause,” each of the NEOs would be entitled only to their vested or accrued obligations. PAYMENTS MADE UPON A TERMINATION IN CONNECTION WITH DEATH OR DISABILITY Upon a termination in connection with death or disability, each of the NEOs would be entitled to their vested or accrued obligations as well as the following: • 568V LVVXHG SULRU WR 2014 ZRXOG DFFHOHUDWH DQG YHVW SUR-UDWD, DQG 568V LVVXHG LQ 2014 RU ODWHU ZRXOG YHVW LQ IXOO XSRQ WKH occurrence of the event. • 368V ZRXOG DFFHOHUDWH DQG YHVW SUR-UDWD • ,Q WKH HYHQW RI GLVDELOLW, RSWLRQV ZRXOG UHPDLQ H[HUFLVDEOH XQWLO WKH RULJLQDO H[SLUDWLRQ GDWH; LQ WKH HYHQW RI GHDWK, WKH UHPDLQ exercisable until the earlier of the remaining term of the option or 12 months after the date of death. Unvested stock options LVVXHG LQ 2014 RU ODWHU ZRXOG YHVW LQ IXOO; RSWLRQV ZRXOG EH H[HUFLVDEOH XQWLO WKH HDUOLHU RI ¿YH HDUV DIWHU GLVDELOLW/GHDWK RU WKH remaining term of the option. • )XOO YHVWLQJ RI EHQH¿WV XQGHU WKH 7H[WURQ 6DYLQJV 3ODQ, 663, ',3 DQG 5HWLUHPHQW $FFRXQW 3ODQ PAYMENTS MADE UPON A “NOT FOR CAUSE” TERMINATION BY THE COMPANY OR BY AN EXECUTIVE FOR “GOOD REASON” Mr. Donnelly A “not for cause” termination (also called “involuntary termination”) occurs when employment ends either at the initiation of Textron, but without circumstances that would indicate a “for cause” situation, or at the initiation of the executive for “Good 5HDVRQ ´ 0U 'RQQHOO¶V OHWWHU DJUHHPHQW ZLWK WKH &RPSDQ SURYLGHV FHUWDLQ VHYHUDQFH EHQH¿WV LQ WKH HYHQW RI D ³QRW IRU FDXVH´ or “Good Reason” termination. “Good Reason” means the occurrence of one or more of the following: (i) the assignment to Mr. Donnelly of duties that are materially inconsistent with his position, (ii) the material reduction of Mr. Donnelly’s position, 42 TEXTRON 2018 PROXY STATEMENT

(LLL) WKH IRUFHG UHORFDWLRQ RI 0U. 'RQQHOO¶V SULQFLSDO RI¿FH, (LY) D UHGXFWLRQ LQ 0U. 'RQQHOO¶V VDODU RU RWKHU EHQH¿WV, (Y) WKH IDLOXUH of the Company to deliver to Mr. Donnelly a satisfactory written agreement from any successor to the Company to assume and agree to perform under the letter agreement, or (vi) other material breach by Textron of the letter agreement. Upon a termination “not for cause,” or for “Good Reason,” Mr. Donnelly would be entitled to his vested or accrued obligations as well as the following: • &DVK 6HYHUDQFH %HQH¿W &RPSULVHG RI – Two times the sum of (i) base salary and (ii) the greater of (a) the termination year target annual cash incentive compensation DQG (E) WKH DYHUDJH DQQXDO FDVK LQFHQWLYH FRPSHQVDWLRQ HDUQHG GXULQJ WKH ODVW WKUHH ¿VFDO HDUV, SDLG LQ PRQWKO installments over two years ± $ SUR-UDWHG DQQXDO FDVK LQFHQWLYH FRPSHQVDWLRQ SDPHQW (EDVHG RQ DFWXDO SHUIRUPDQFH) IRU WKH HDU RI WHUPLQDWLRQ, SDLG LQ a lump sum in the year following termination • 7UHDWPHQW RI /RQJ-7HUP ,QFHQWLYH $ZDUGV – Unvested stock options would be subject to full vesting acceleration for that portion of the awards that would have vested within two years after termination ± 368V ZRXOG YHVW SUR-UDWD • %HQH¿WV XQGHU 5HWLUHPHQW 3ODQV ± &UHGLW IRU DQ DGGLWLRQDO WZR DQG RQH KDOI HDUV RI DJH DQG VHUYLFH DQG FRPSHQVDWLRQ XQGHU DOO GH¿QHG EHQH¿W-WSH UHWLUHPHQW plans (including the SPP) ± $ OXPS VXP SDPHQW HTXDO WR WZR WLPHV WKH DPRXQW RI PD[LPXP &RPSDQ DQQXDO FRQWULEXWLRQ RU PDWFK WR DQ GH¿QHG FRQWULEXWLRQ-WSH SODQ LQ ZKLFK WKH H[HFXWLYH SDUWLFLSDWHV • Continuation of Insurance Coverage: Continued coverage (or the cash equivalent thereof) for two years under the Company’s WHUP OLIH LQVXUDQFH DQG ORQJ-WHUP GLVDELOLW LQVXUDQFH SODQV, DQG, WR WKH H[WHQW HOLJLEOH RQ WKH GDWH RI WHUPLQDWLRQ, XQGHU WKH accidental death and dismemberment insurance and dependent life insurance plans OTHER NEOS 7KH 6HYHUDQFH 3ODQ IRU 7H[WURQ .H ([HFXWLYHV, LQ ZKLFK HDFK RI WKH RWKHU 1(2V SDUWLFLSDWHV, SURYLGHV VHYHUDQFH SD IRU involuntary termination only if the executive signs a release provided in and required by the plan document. This severance pay is equal to the sum of: (i) the executive’s annual rate of base salary at the date of severance, and (ii) the larger of (a) the average of his or her three most recent actual awards of annual incentive compensation (whether or not deferred) and (b) his or her current target incentive compensation under the annual incentive compensation plan. PAYMENTS MADE UPON A TERMINATION IN CONNECTION WITH A “CHANGE IN CONTROL” Mr. Donnelly A “change in control” termination would occur if Mr. Donnelly experiences a “not for cause” termination during the period beginning 180 days before a change in control and ending on the second anniversary of the change in control. Mr. Donnelly’s OHWWHU DJUHHPHQW ZLWK WKH &RPSDQ SURYLGHV FHUWDLQ VHYHUDQFH EHQH¿WV LQ WKH HYHQW RI D ³FKDQJH LQ FRQWURO´ WHUPLQDWLRQ. )RU purposes of Mr. Donnelly’s letter agreement, a “change in control” means the occurrence of any of the following events: (i) any person unrelated to Textron acquires more than 30% of Textron’s then outstanding voting stock, (ii) a majority of the members of WKH %RDUG RI 'LUHFWRUV DUH UHSODFHG LQ DQ WZR-HDU SHULRG RWKHU WKDQ LQ VSHFL¿F FLUFXPVWDQFHV, (LLL) WKH FRQVXPPDWLRQ RI D PHUJHU or consolidation of Textron with any other corporation, other than a merger or consolidation in which Textron’s voting securities outstanding immediately prior to such merger or consolidation continue to represent at least 50% of the combined voting securities of Textron or such surviving entity immediately after such merger or consolidation, or (iv) shareholder approval of an agreement for the sale or disposition of all or substantially all of Textron’s assets or a plan of complete liquidation. Upon a termination in connection with a “change in control,” Mr. Donnelly would be entitled to his vested or accrued obligations as well as the following: • &DVK 6HYHUDQFH %HQH¿W, 3DDEOH LQ D /XPS 6XP, &RPSULVHG RI – Three times base salary ± 3UR-UDWHG SRUWLRQ RI WKH JUHDWHU RI (L) WKH WHUPLQDWLRQ HDU WDUJHW DQQXDO FDVK LQFHQWLYH FRPSHQVDWLRQ DQG (LL) WKH SULRU HDU annual cash incentive compensation – Three times the greater of (i) the average annual cash incentive compensation over the three years prior to the earlier of the change of control or the termination and (ii) the termination year target annual cash incentive compensation 43 TEXTRON 2018 PROXY STATEMENT

• 7UHDWPHQW RI /RQJ-7HUP ,QFHQWLYH $ZDUGV: – Outstanding unvested stock options, PSUs and RSUs would be subject to immediate and full vesting acceleration as of the change in control – PSUs granted in 2016 and 2017 will be paid based on actual performance through the change in control and based on target performance after the change in control • %HQH¿WV XQGHU 5HWLUHPHQW 3ODQV: ± )XOO YHVWLQJ DQG FUHGLW IRU DQ DGGLWLRQDO WKUHH HDUV RI DJH DQG VHUYLFH DQG FRPSHQVDWLRQ XQGHU DOO GH¿QHG EHQH¿W-WSH retirement plans (including the SPP) – Full vesting acceleration under the Spillover Savings Plan ± $ SDPHQW HTXDO WR WKUHH WLPHV WKH DPRXQW RI PD[LPXP &RPSDQ DQQXDO FRQWULEXWLRQ RU PDWFK WR DQ GH¿QHG FRQWULEXWLRQ-type plan in which the executive participates • Continuation of Insurance Coverage: Continued coverage (or the cash equivalent thereof) for three years under the Company’s WHUP OLIH LQVXUDQFH DQG ORQJ-WHUP GLVDELOLW LQVXUDQFH SODQV, DQG, WR WKH H[WHQW HOLJLEOH RQ WKH GDWH RI WHUPLQDWLRQ, XQGHU WKH accidental death and dismemberment insurance and dependent life insurance plans • Additional Perquisites: Outplacement assistance for up to one year following termination • 7D[ *URVV-8S 3DPHQW: 6XEMHFW WR FHUWDLQ FRQGLWLRQV, WKH &RPSDQ ZRXOG JURVV-XS VHYHUDQFH SDPHQWV WR FRYHU WKH executive’s excise taxes, if any, determined in accordance with Sections 4999 and 280G of the Internal Revenue Code OTHER NEOS 7KH 6HYHUDQFH 3ODQ IRU 7H[WURQ .H ([HFXWLYHV, LQ ZKLFK HDFK RI WKH RWKHU 1(2V SDUWLFLSDWHV, SURYLGHV VHYHUDQFH SD DQG VHYHUDQFH EHQH¿WV LQ WKH HYHQW RI DQ LQYROXQWDU WHUPLQDWLRQ RU WHUPLQDWLRQ IRU ³JRRG UHDVRQ´ E WKH H[HFXWLYH IROORZLQJ D FKDQJH of control only if the executive signs a release provided in and required by the plan document. The severance pay, payable in a lump sum, is equal to the sum of: (i) the executive’s annual rate of base salary at the date of severance, and (ii) the larger of (a) the average of his or her three most recent actual awards of annual incentive compensation (whether or not deferred) and (b) his or her current target incentive compensation under the annual incentive compensation plan. In addition, medical and dental EHQH¿WV ZRXOG EH SURYLGHG E 7H[WURQ WR WKH H[HFXWLYH DQG WR KLV RU KHU GHSHQGHQWV, RQ WHUPV ZKLFK DUH QRW OHVV IDYRUDEOH WR WKHP WKDQ WKH WHUPV H[LVWLQJ LPPHGLDWHO EHIRUH VHYHUDQFH 6XFK VHYHUDQFH EHQH¿WV ZRXOG EH FRQWLQXHG IRU HLJKWHHQ PRQWKV following severance (or, if less, until the executive or dependent obtains comparable coverage under another employer’s plan or Medicare). 8QGHU WKH 6HYHUDQFH 3ODQ IRU 7H[WURQ .H ([HFXWLYHV, ³FKDQJH RI FRQWURO´ PHDQV WKH RFFXUUHQFH RI DQ RI WKH IROORZLQJ HYHQWV: (L) DQ SHUVRQ XQUHODWHG WR 7H[WURQ (D) EHFRPHV (RWKHU WKDQ E DFTXLVLWLRQ IURP 7H[WURQ) WKH EHQH¿FLDO RZQHU RI PRUH WKDQ 50% of Textron’s then outstanding voting stock, (b) acquires more than 30% of Textron’s then outstanding voting stock, or (c) acquires all or substantially all of the total gross fair market value of all of the assets of Textron, (ii) a merger or consolidation of Textron with any other corporation occurs, other than a merger or consolidation that would result in the voting securities of Textron outstanding immediately before the merger or consolidation continuing to represent 50% or more of the combined voting power of the voting securities of Textron or such surviving entity outstanding immediately after such merger or consolidation, or (iii) during any 12-PRQWK SHULRG, D PDMRULW RI WKH PHPEHUV RI WKH %RDUG LV UHSODFHG E GLUHFWRUV ZKRVH DSSRLQWPHQW RU HOHFWLRQ LV QRW HQGRUVHG by a majority of the members of the Board of Directors before the date of their appointment or election. In addition, in the event of a not for cause or good reason termination in connection with a change of control, the other NEOs ZRXOG UHFHLYH (L) IXOO YHVWLQJ DFFHOHUDWLRQ XQGHU WKH 633, 663 DQG 763 DQG (LL) IXOO YHVWLQJ RI ORQJ-WHUP LQFHQWLYH DZDUGV ZKLFK would be payable in the same manner described above for Mr. Donnelly. The following tables show additional or accelerated payments which would be payable to our NEOs under existing agreements, plans or other arrangements, for various scenarios triggered by a termination of employment, assuming the termination date to be December 29, 2017, and, where applicable, using the closing price of our common stock of $56.59 (as reported on the New York 6WRFN ([FKDQJH RQ 'HFHPEHU 29, 2017, WKH ODVW WUDGLQJ GD RI RXU ¿VFDO HDU) 44 TEXTRON 2018 PROXY STATEMENT

Scott C. Donnelly Annual Incentive / Severance RSU settled in stock (2) Stock Options (2) Cash settlement of PSUs (2) 3HQVLRQ EHQH¿W (3) 2WKHU EHQH¿WV (4) $0 0 0 0 0 0 $ 0 $ 0 $0 0 0 0 0 0 $ 6,000,000 0 5,336,147 5,486,910 9,447,604 142,029 $ 9,000,000 15,359,035 5,849,321 10,331,587 10,134,206 383,044 15,303,351 15,303,351 5,849,321 5,486,910 5,548,499 0 5,849,321 5,486,910 902,229 0 Frank T. Connor Annual Incentive / Severance RSU settled in stock (2) Stock Options (2) Cash settlement of PSUs (2) 3HQVLRQ EHQH¿W 2WKHU EHQH¿WV (4) $0 0 0 0 0 0 $ 0 $ 0 $0 0 0 0 0 0 $1,856,333 0 0 0 0 0 $ 1,856,333 4,430,997 1,682,854 2,961,508 0 19,018 4,414,529 4,414,529 1,682,854 1,575,333 0 0 1,682,854 1,575,333 0 0 E. Robert Lupone Annual Incentive / Severance RSU settled in stock (2) Stock Options (2) Cash settlement of PSUs (2) 3HQVLRQ EHQH¿W 2WKHU EHQH¿WV (4) $0 0 0 0 0 0 $ 0 $ 0 $0 0 0 0 0 0 $1,297,333 0 0 0 0 0 $1,297,333 2,037,523 761,417 1,334,246 0 12,524 2,029,600 2,029,600 761,417 710,706 0 0 761,417 710,706 0 0 Julie G. Duffy Annual Incentive / Severance RSU settled in stock (2) Stock Options (2) Cash settlement of PSUs (2) 3HQVLRQ EHQH¿W 2WKHU EHQH¿WV (4) $ 0 $ 0 $ 0 $0 0 0 0 0 0 $760,000 50,818 0 0 0 0 $ 760,000 452,211 170,530 299,216 0 19,018 50,818 450,513 450,513 0 0 0 0 170,530 159,730 0 0 170,530 159,730 0 0 (1) Amounts reported in the “Change in Control” column for RSUs, stock options and PSUs granted prior to 2014 are paid upon a Change in Control, and all other amounts in the “Change in Control” column are paid only upon a “not for cause” or “good reason” termination in connection with a Change in Control. (2) $PRXQWV UHSRUWHG IRU 568V, VWRFN RSWLRQV DQG 368V UHÀHFW DFFHOHUDWHG DQG/RU SURUDWHG YHVWLQJ WULJJHUHG E WHUPLQDWLRQ HYHQW XQGHU HDFK VFHQDULR, UHVSHFWLYHO 368 DPRXQWV KDYH EHHQ FDOFXODWHG DVVXPLQJ WKDW WKH 2016-2018 368 FFOH ZLOO EH SDLG DW 83 0% RI WDUJHW DQG WKH 2017-2019 368 FFOH ZLOO EH SDLG DW 82 9% RI WDUJHW 7KHVH ¿JXUHV DUH EDVHG RQ DFWXDO &RPSDQ SHUIRUPDQFH DJDLQVW JRDOV IRU 2016 DQG 2017, DQG WDUJHW &RPSDQ SHUIRUPDQFH DJDLQVW JRDOV IRU 2018 DQG 2019 ,Q DGGLWLRQ, WKH ¿JXUHV DVVXPH PHGLDQ WRWDO VKDUHKROGHU UHWXUQ SHUIRUPDQFH RYHU HDFK 3-HDU 368 FFOH (3) 3RWHQWLDO SHQVLRQ EHQH¿WV KDYH EHHQ FDOFXODWHG DVVXPLQJ D GLVFRXQW UDWH RI 3 75% (4) ,QFOXGHV (L) IRU 0U 'RQQHOO, XQGHU WKH ³1RW IRU &DXVH´ VFHQDULR, $12,114 LQ FRQWLQXDWLRQ RI LQVXUDQFH FRYHUDJH DQG $129,915 LQ DGGLWLRQDO EHQH¿WV XQGHU UHWLUHPHQW SODQV, DQG, XQGHU WKH ³&KDQJH LQ &RQWURO´ VFHQDULR, $18,171 LQ FRQWLQXDWLRQ RI LQVXUDQFH FRYHUDJH, $194,873 LQ DGGLWLRQDO EHQH¿WV XQGHU UHWLUHPHQW SODQV DQG RXWSODFHPHQW DVVLVWDQFH YDOXHG DW $170,000, (LL) IRU 0U &RQQRU DQG 0V 'XII, FRQWLQXDWLRQ RI KHDOWK EHQH¿WV YDOXHG DW $19,018 DQG (LLL) IRU 0U /XSRQH, FRQWLQXDWLRQ RI KHDOWK EHQH¿WV YDOXHG DW $12,524 45 TEXTRON 2018 PROXY STATEMENT Amount Triggered due to Termination$50,818$780,773$780,773$0$810,818$1,700,975 ForNot ForChange in VoluntaryDisabilityDeathCauseCauseControl (1) Amount Triggered due to Termination$0$3,501,723$3,501,723$0$1,297,333$5,443,043 ForNot ForChange in VoluntaryDisabilityDeathCauseCauseControl (1) Amount Triggered due to Termination$0$7,672,716$7,672,716$0$1,856,333$10,950,710 ForNot ForChange in VoluntaryDisabilityDeathCauseCauseControl (1) Amount Triggered due to Termination$0$32,188,081$27,541,811$0$26,412,690$51,057,193 ForNot ForChange in VoluntaryDisabilityDeathCauseCauseControl (1)

NAMED EXECUTIVE OFFICER WHO TERMINATED EMPLOYMENT DURING 2017 For Cheryl H. Johnson who was retirement eligible at the time that she voluntarily terminated her employment with the Company during 2017, the following table shows payments made or expected to be made to her under existing agreements and plans, in addition to amounts disclosed in the Summary Compensation Table on page 34. Annual Incentive / Severance RSUs settled in stock (1) Stock Options (1)(2) Cash settlement of PSUs (1)(3) 3HQVLRQ EHQH¿W 2WKHU EHQH¿WV (4) $ 0 1,046,489 419,632 738,952 1,636,986 97,593 (1) $PRXQWV UHSRUWHG IRU 568V, VWRFN RSWLRQV DQG 368V UHÀHFW DFFHOHUDWHG DQG/RU SURUDWHG YHVWLQJ (LQ WKH FDVH RI 568V LVVXHG SULRU WR 2014) DQG FRQWLQXHG vesting triggered by Ms. Johnson’s termination of employment. (2) $PRXQWV UHÀHFW WKH LQWULQVLF YDOXH RI RXWVWDQGLQJ XQYHVWHG RSWLRQV DW WKH HQG RI WKH ¿VFDO HDU. 0V. -RKQVRQ¶V XQYHVWHG VWRFN RSWLRQV ZLOO FRQWLQXH WR vest per their respective vesting schedules. (3) 368 DPRXQWV KDYH EHHQ FDOFXODWHG DVVXPLQJ WKDW WKH 2016-2018 368 FFOH ZLOO EH SDLG DW 83.0% RI WDUJHW DQG WKH 2017-2019 368 FFOH ZLOO EH SDLG DW 82.9% RI WDUJHW. 7KHVH ¿JXUHV DUH EDVHG RQ DFWXDO &RPSDQ SHUIRUPDQFH DJDLQVW JRDOV IRU 2016 DQG 2017, DQG WDUJHW &RPSDQ SHUIRUPDQFH DJDLQVW JRDOV IRU 2018 DQG 2019. ,Q DGGLWLRQ, WKH ¿JXUHV DVVXPH PHGLDQ WRWDO VKDUHKROGHU UHWXUQ SHUIRUPDQFH RYHU HDFK 3-HDU 368 FFOH. (4) Includes a $65,466 distribution from Ms. Johnson’s previously vested DIP and a $32,127 distribution from Ms. Johnson’s previously vested SSP. PAY RATIO :H DUH UHTXLUHG E WKH 'RGG-)UDQN :DOO 6WUHHW 5HIRUP DQG &RQVXPHU 3URWHFWLRQ $FW DQG 6HFXULWLHV DQG ([FKDQJH &RPPLVVLRQ (³6(&´) UXOHV WR SURYLGH WKH UDWLR RI WKH DQQXDO WRWDO FRPSHQVDWLRQ RI 0U. 'RQQHOO, RXU &KLHI ([HFXWLYH 2I¿FHU, WR WKDW RI DQ employee whose annual compensation is at the median of all our employees. Textron and its consolidated subsidiaries together have approximately 37,000 employees located throughout the world, with approximately 74% in the U.S., 15% in Europe, 6% in Canada and Mexico combined, 4% in Asia and 1% elsewhere. To identify WKH HPSORHH ZLWK FRPSHQVDWLRQ DW WKH PHGLDQ RI DOO HPSORHHV IRU RXU 2017 ¿VFDO HDU, ZH XVHG ³DQQXDO UDWH´, DV UHÀHFWHG LQ RXU HQWHUSULVH-ZLGH KXPDQ UHVRXUFHV LQIRUPDWLRQ VVWHP, DV RI 2FWREHU 1, 2017, IRU DOO RI RXU HPSORHHV, LQFOXGLQJ SDUW WLPH, WHPSRUDU DQG VHDVRQDO HPSORHHV. 7KH DQQXDO UDWH IRU VDODULHG HPSORHHV UHÀHFWV EDVH VDODU SDLG RQ DQ DQQXDO EDVLV. )RU KRXUO HPSORHHV, WKH DQQXDO UDWH LV DUULYHG DW XVLQJ WKHLU KRXUO UDWH DQG VWDQGDUG ZRUN KRXUV. :H GLG QRW PDNH DQ FRVW-RI-living adjustments despite the large variety of labor markets in which our employees work, nor did we make any adjustments to account for the variety of compensation arrangements used to pay employees in varying roles (e.g., we did not include overtime, FRPPLVVLRQV, ERQXVHV RU RWKHU WSHV RI QRQ-¿[HG FRPSHQVDWLRQ). 8VLQJ WKLV PHWKRGRORJ, ZH GHWHUPLQHG WKDW WKH ³PHGLDQ HPSORHH´ ZDV D IXOO-WLPH, KRXUO HPSORHH ORFDWHG LQ WKH 8.6. ZLWK WRWDO FRPSHQVDWLRQ IRU WKH 2017 ¿VFDO HDU LQ WKH DPRXQW RI $90,025. ³$QQXDO WRWDO FRPSHQVDWLRQ´ RI WKH PHGLDQ HPSORHH LQFOXGHV regular and overtime earnings, any applicable annual bonus payment, Company contributions to a 401(k) plan on behalf of the HPSORHH, DQG WKH &RPSDQ-SDLG SRUWLRQ RI KHDOWK DQG ZHOIDUH EHQH¿WV. ³$QQXDO WRWDO FRPSHQVDWLRQ´ IRU 0U. 'RQQHOO IRU WKH 2017 ¿VFDO HDU ZDV $14,845,764, ZKLFK LV D $20,434 LQFUHDVH RYHU WKH DPRXQW UHÀHFWHG LQ WKH 7RWDO FROXPQ LQ WKH 6XPPDU &RPSHQVDWLRQ 7DEOH DERYH. 7KH LQFUHDVH UHÀHFWV WKH LQFOXVLRQ RI 0U. 'RQQHOO¶V KHDOWK DQG ZHOIDUH EHQH¿WV ZKLFK DUH H[FOXGHG IURP WKH 6XPPDU &RPSHQVDWLRQ 7DEOH DPRXQWV XQGHU 6(& UXOHV. Based upon this information, for 2017 the ratio of the annual total compensation of Mr. Donnelly to the annual total compensation of the median employee was 165 to 1. 46 TEXTRON 2018 PROXY STATEMENT Amount Triggered due to Termination$3,939,652 Type of Compensation

EQUITY COMPENSATION PLAN INFORMATION 7KH IROORZLQJ WDEOH VHWV IRUWK FHUWDLQ LQIRUPDWLRQ, DV RI WKH HQG RI 7H[WURQ¶V 2017 ¿VFDO HDU, IRU DOO 7H[WURQ FRPSHQVDWLRQ SODQV previously approved by shareholders. There are no compensation plans not previously approved by shareholders. Equity compensation plans not approved by shareholders N/A N/A N/A (1) Includes 668,093 unvested shares that may be issued under previously granted RSUs. (2) 7KLV YDOXH UHÀHFWV WKH ZHLJKWHG DYHUDJH H[HUFLVH SULFH RI RXWVWDQGLQJ VWRFN RSWLRQV RQO. (3) &RQVLVWV RI VKDUHV UHPDLQLQJ DYDLODEOH IRU LVVXDQFH XQGHU WKH 7H[WURQ ,QF. 2015 /RQJ-7HUP ,QFHQWLYH 3ODQ WKDW PD EH LVVXHG SXUVXDQW WR VWRFN RSWLRQV, stock appreciation rights, performance stock, restricted stock, RSUs and other awards, provided that no more than 3,892,622 shares may be issued pursuant to awards other than stock options and stock appreciation rights. EVALUATION OF RISK IN COMPENSATION PLANS In addition to the Company’s incentive compensation arrangements applicable to senior executives throughout the enterprise, the Company’s business units maintain incentive compensation plans and programs in which business unit employees below the senior executive level participate (such as sales incentive plans and incentive programs linked to safety and customer service, etc.). Textron’s management reviews these business unit incentive compensation plans and programs as they relate WR ULVN PDQDJHPHQW SUDFWLFHV DQG ULVN-WDNLQJ LQFHQWLYHV. 47 TEXTRON 2018 PROXY STATEMENT Total9,912,173$37.0213,571,348 Number of Securities Remaining Available for Number of Securities toWeighted-AverageFuture Issuance Under Equity be Issued Upon Exercise Exercise Price ofCompensation Plans of Outstanding Options,Outstanding Options,(([FOXGLQJ 6HFXULWLHV 5HÁHFWHG Warrants and RightsWarrants and Rightsin Column (a)) (a)(b)(c) Equity compensation plans approved by shareholders9,912,173 (1)$37.02 (2)13,571,348 (3)

TRANSACTIONS WITH RELATED PERSONS ([FHSW DV GHVFULEHG EHORZ, VLQFH WKH EHJLQQLQJ RI 7H[WURQ¶V 2017 ¿VFDO HDU, WKHUH KDYH EHHQ QR WUDQVDFWLRQV DQG WKHUH DUH no currently proposed transactions, in which Textron was or is to be a participant and the amount involved exceeds $120,000 and in which any related person had or will have a direct or indirect material interest. Both Mr. Donnelly and Mr. Connor are licensed pilots who each own a Citation business jet which they use for both personal and business purposes. Each executive holds their aircraft through a limited liability company (“LLC”) which has entered into an Amended and Restated Hangar License and Services Agreement with the Company related to the sublease by the respective LLCs of a portion of the Company’s leased hangar space and the provision of other services. These Amended and Restated Hangar License and Services Agreements each provide that the Company will provide certain aircraft maintenance and other services, including pilot services, for the executives’ personal aircraft. Each of Mr. Donnelly and Mr. Connor pays $1,500 per month rent for the hangar space used by his aircraft. The Company pays the difference in cost for the portion of hangar space utilized by the executives’ aircraft above this $1,500 per month payment which amount is included in “All Other Compensation” in the Summary Compensation Table on page 34. Fees for maintenance, pilot services and all other services are set at market rates, and the executives’ LLCs fully reimburse the Company at such market rates. Pursuant to the Hangar Agreements, the Company permits the executives’ LLCs to purchase fuel from the Company’s bulk fuel storage facility at the discounted bulk rate paid by the Company, and the Company’s Aviation Department facilitates the executives’ SHUVRQDO ÀLJKWV DQG SHUIRUPV YDULRXV DGPLQLVWUDWLYH GXWLHV LQ FRQQHFWLRQ ZLWK WKHVH DLUFUDIW. %RWK $PHQGHG DQG 5HVWDWHG Hangar License and Services Agreements have been approved by the Nominating and Corporate Governance Committee. 'XULQJ RXU 2017 ¿VFDO HDU, 0U. &RQQRU¶V //& DQG 0U. 'RQQHOO¶V //& SDLG WRWDO FRVWV WR 7H[WURQ XQGHU WKHVH DJUHHPHQWV RI $54,420 and $50,169, respectively. Also, Mr. Donnelly’s LLC and Mr. Connor’s LLC each engaged Textron Aviation’s service centers to perform certain maintenance work on their aircraft during 2017 for which they paid an arms’ length price of $68,941 and $33,656, respectively. In addition, the Nominating and Corporate Governance Committee has approved Mr. Donnelly’s and Mr. Connor’s use of their personal aircraft for business travel and has adopted a revised policy which sets forth regulatory, safety, insurance and other requirements applicable to use of personal aircraft by these executives for business purposes. The policy provides for reimbursement of only direct operating expenses to the executives, subject to a cap of $150,000 annually. During our 2017 ¿VFDO HDU, GLUHFW RSHUDWLQJ H[SHQVHV IRU EXVLQHVV ÀLJKWV RQ WKH H[HFXWLYHV¶ SHUVRQDO DLUFUDIW WRWDOHG $42,779 IRU 0U. 'RQQHOO and $1,434 for Mr. Connor. Under Textron’s Corporate Governance Guidelines and Policies, all related party transactions are subject to approval or UDWL¿FDWLRQ E WKH 1RPLQDWLQJ DQG &RUSRUDWH *RYHUQDQFH &RPPLWWHH. 5HODWHG SDUW WUDQVDFWLRQV, UHIHUUHG WR DV ³,QWHUHVWHG 7UDQVDFWLRQV ZLWK 5HODWHG 3DUWLHV´ XQGHU WKH *XLGHOLQHV, DUH JHQHUDOO GH¿QHG DV DQ WUDQVDFWLRQ, DUUDQJHPHQW RU UHODWLRQVKLS or series of similar transactions, arrangements or relationships (including any indebtedness or guarantee of indebtedness) ZKHUH WKH &RPSDQ LV D SDUWLFLSDQW, LQ ZKLFK WKH DJJUHJDWH DPRXQW LQYROYHG VLQFH WKH EHJLQQLQJ RI WKH &RPSDQ¶V ODVW ¿VFDO HDU H[FHHGV RU LV H[SHFWHG WR H[FHHG $100,000 DQG DQ H[HFXWLYH RI¿FHU, GLUHFWRU, QRPLQHH RU JUHDWHU WKDQ 5% EHQH¿FLDO holder or immediate family member of any of the foregoing has or will have a direct or indirect interest (other than solely as D UHVXOW RI EHLQJ D GLUHFWRU RU D OHVV WKDQ 10% EHQH¿FLDO RZQHU RI DQRWKHU HQWLW). ,Q GHWHUPLQLQJ ZKHWKHU WR DSSURYH RU UDWLI such a transaction, the committee takes into account, among other factors it deems appropriate, whether the transaction is on WHUPV QR OHVV IDYRUDEOH WKDQ WHUPV JHQHUDOO DYDLODEOH WR DQ XQDI¿OLDWHG WKLUG SDUW XQGHU WKH VDPH RU VLPLODU FLUFXPVWDQFHV and the extent of the related person’s interest in the transaction. 48 TEXTRON 2018 PROXY STATEMENT

ADVISORY VOTE TO APPROVE TEXTRON’S EXECUTIVE COMPENSATION 7KH %RDUG KDV DGRSWHG D SROLF SURYLGLQJ IRU DQ DQQXDO ³VD-RQ-SD´ DGYLVRU YRWH ,Q DFFRUGDQFH ZLWK WKLV SROLF DQG 6HFWLRQ 14$ RI WKH 6HFXULWLHV ([FKDQJH $FW RI 1934, DV DPHQGHG, HQDFWHG DV SDUW RI WKH 'RGG-)UDQN :DOO 6WUHHW 5HIRUP and Consumer Protection Act, and as a matter of good corporate governance, we are providing our shareholders with an DGYLVRU (QRQ-ELQGLQJ) YRWH WR DSSURYH WKH FRPSHQVDWLRQ RI RXU QDPHG H[HFXWLYH RI¿FHUV DV GLVFORVHG LQ WKLV SUR[ VWDWHPHQW 7KLV YRWH LV DGYLVRU RQO, DQG LW LV QRW ELQGLQJ RQ 7H[WURQ RU RQ RXU %RDUG RI 'LUHFWRUV $OWKRXJK WKH YRWH LV QRQ-ELQGLQJ, WKH Organization and Compensation Committee (the “Committee”) and the Board will carefully consider the outcome of the vote when making future compensation decisions. Textron’s compensation philosophy is to establish target total pay with reference to a talent peer group and to tie a substantial portion of our executives’ compensation to performance against objective business goals and stock price performance. This approach helps us to recruit and retain talented executives, incentivizes our executives to achieve desired business goals and aligns their interests with the interests of our shareholders. For a full discussion of our executive compensation programs and 2017 compensation decisions made by the Committee, see “Compensation Discussion and Analysis” beginning on page 20. Textron’s Board of Directors believes that the Company’s executive compensation program is working to align management’s LQWHUHVWV ZLWK WKRVH RI RXU VKDUHKROGHUV WR VXSSRUW ORQJ-WHUP YDOXH FUHDWLRQ $FFRUGLQJO, 7H[WURQ VKDUHKROGHUV DUH EHLQJ asked to vote “FOR” the following advisory resolution at the annual meeting: “RESOLVED, that the shareholders approve, on an advisory basis, the Company’s compensation of its named executive RI¿FHUV, DV GLVFORVHG LQ WKH 3UR[ 6WDWHPHQW IRU WKH 2018 $QQXDO 0HHWLQJ RI 6KDUHKROGHUV SXUVXDQW WR WKH FRPSHQVDWLRQ disclosure rules of the Securities and Exchange Commission, including the Compensation Discussion and Analysis and the FRPSHQVDWLRQ WDEOHV UHJDUGLQJ QDPHG H[HFXWLYH RI¿FHU FRPSHQVDWLRQ, WRJHWKHU ZLWK WKH DFFRPSDQLQJ QDUUDWLYH GLVFORVXUH ´ 8QOHVV WKH %RDUG PRGL¿HV LWV SROLF RQ WKH IUHTXHQF RI IXWXUH VD-RQ-SD DGYLVRU YRWHV, WKH QH[W VD-RQ-SD DGYLVRU YRWH will be held at the 2019 Annual Meeting of Shareholders. The Board of Directors recommends a vote “FOR” the resolution approving the Company’s executive compensation (Item 2 on the proxy card). 49 TEXTRON 2018 PROXY STATEMENT

RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Audit Committee is responsible for the appointment, compensation, retention and oversight of the independent registered SXEOLF DFFRXQWLQJ ¿UP UHWDLQHG WR DXGLW 7H[WURQ¶V ¿QDQFLDO VWDWHPHQWV. 7KH $XGLW &RPPLWWHH KDV DSSRLQWHG (UQVW & <RXQJ //3 WR VHUYH DV WKH &RPSDQ¶V LQGHSHQGHQW UHJLVWHUHG SXEOLF DFFRXQWLQJ ¿UP IRU 2018. (UQVW & <RXQJ //3 RU LWV SUHGHFHVVRUV KDYH VHUYHG DV WKH LQGHSHQGHQW UHJLVWHUHG SXEOLF DFFRXQWLQJ ¿UP IRU WKH &RPSDQ IRU RYHU WZHQW HDUV. ,Q DGGLWLRQ WR ensuring the regular rotation of the lead audit partner as required by law, the Audit Committee is involved in the selection of, and reviews and evaluates, the lead audit partner. 7KH $XGLW &RPPLWWHH DQG WKH %RDUG EHOLHYH WKDW WKH DSSRLQWPHQW RI WKH ¿UP RI (UQVW & <RXQJ //3 WR DXGLW 7H[WURQ¶V FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV IRU 2018 LV LQ WKH EHVW LQWHUHVWV RI WKH &RPSDQ DQG LWV VKDUHKROGHUV DQG SURSRVH DQG recommend that the shareholders ratify the Audit Committee’s appointment of Ernst & Young LLP as independent registered SXEOLF DFFRXQWLQJ ¿UP IRU 2018. $OWKRXJK UDWL¿FDWLRQ LV QRW UHTXLUHG E RXU %-/DZV RU RWKHUZLVH WKH $XGLW &RPPLWWHH LV VXEPLWWLQJ WKH VHOHFWLRQ RI (UQVW & Young LLP to shareholders as a matter of good corporate governance. If shareholders do not ratify the appointment, the Audit Committee will reconsider its selection. A representative or representatives of Ernst & Young LLP will be present at the annual meeting and will have the opportunity to make a statement and be available to respond to appropriate questions. FEES TO INDEPENDENT AUDITORS The following table presents fees billed for professional services rendered by Ernst & Young LLP for the audit of Textron’s DQQXDO ¿QDQFLDO VWDWHPHQWV WKH UHYLHZV RI WKH ¿QDQFLDO VWDWHPHQWV LQ 7H[WURQ¶V )RUPV 10-4 DQG RWKHU VHUYLFHV LQ FRQQHFWLRQ ZLWK VWDWXWRU DQG UHJXODWRU ¿OLQJV DQG HQJDJHPHQWV IRU 2016 DQG 2017 DQG IHHV ELOOHG IRU DXGLW-UHODWHG VHUYLFHV WD[ VHUYLFHV and all other services rendered by Ernst & Young LLP in 2016 and 2017. ($ in thousands) Audit Fees $XGLW-5HODWHG )HHV (1) Tax Fees (2) All Other Fees $8,844 713 112 0 $ 9,434 1 475 66 0 (1) $XGLW-UHODWHG IHHV LQFOXGH IHHV IRU HPSORHH EHQH¿W SODQ DXGLWV DWWHVW VHUYLFHV QRW UHTXLUHG E VWDWXWH RU UHJXODWLRQ DQG FRQVXOWDWLRQV FRQFHUQLQJ ¿QDQFLDO DFFRXQWLQJ DQG UHSRUWLQJ PDWWHUV QRW FODVVL¿HG DV DXGLW. (2) Tax fees include fees for tax services relating to consultations and compliance. 8QGHU WKH $XGLW DQG 1RQ-$XGLW 6HUYLFHV 3UH-$SSURYDO 3ROLF DGRSWHG E WKH $XGLW &RPPLWWHH DOO DXGLW DQG QRQ-DXGLW VHUYLFHV WR EH SHUIRUPHG E WKH LQGHSHQGHQW DXGLWRU IRU 7H[WURQ UHTXLUH SUH-DSSURYDO E WKH $XGLW &RPPLWWHH. 7KH $XGLW &RPPLWWHH PD GHOHJDWH SUH-DSSURYDO DXWKRULW WR RQH RU PRUH RI LWV PHPEHUV. $Q SUH-DSSURYDOV SXUVXDQW WR GHOHJDWHG DXWKRULW VKDOO EH UHSRUWHG WR WKH $XGLW &RPPLWWHH DW LWV QH[W VFKHGXOHG PHHWLQJ. 7KH $XGLW &RPPLWWHH FDQQRW GHOHJDWH SUH-DSSURYDO authority to management. $OO DXGLW-UHODWHG VHUYLFHV WD[ VHUYLFHV DQG RWKHU VHUYLFHV IRU 2017 ZHUH SUH-DSSURYHG E WKH $XGLW &RPPLWWHH ZKLFK determined that such services would not impair the independence of the auditor and are consistent with the Securities and Exchange Commission’s rules on auditor independence. 7KH %RDUG RI 'LUHFWRUV UHFRPPHQGV D YRWH ´)25µ UDWLÀFDWLRQ RI WKH DSSRLQWPHQW E WKH $XGLW &RPPLWWHH RI Ernst & Young LLP (Item 3 on the proxy card). 50 TEXTRON 2018 PROXY STATEMENT Total Fees$9,669$10,975 20162017

SHAREHOLDER PROPOSAL REGARDING SHAREHOLDER ACTION BY WRITTEN CONSENT 0U. .HQQHWK 6WHLQHU RI 14 6WRQHU $YH., 20, *UHDW 1HFN, 1< 11021, RZQHU RI DW OHDVW 500 VKDUHV RI RXU FRPPRQ VWRFN, KDV given notice of his designation of John Chevedden as his proxy to introduce the following resolution at the annual meeting. The shareholder proposal and supporting statement appear as received by us. Following the shareholder proposal is our response. Proposal 4—Right to Act by Written Consent Resolved, Shareholders request that our board of directors undertake such steps as may be necessary to permit written consent by shareholders entitled to cast the minimum number of votes that would be necessary to authorize the action at a meeting at which all shareholders entitled to vote thereon were present and voting. This written consent is to be consistent with applicable law and consistent with giving shareholders the fullest power to act by written consent consistent with applicable law. This includes shareholder ability to initiate any topic for written consent consistent with applicable law. 7KLV SURSRVDO WRSLF ZRQ PDMRULW VKDUHKROGHU VXSSRUW DW 13 PDMRU FRPSDQLHV LQ D VLQJOH HDU. 7KLV LQFOXGHG 67%-VXSSRUW DW both Allstate and Sprint. Hundreds of major companies enable shareholder action by written consent. Taking action by written consent in lieu of a meeting is a means shareholders can use to raise important matters outside the normal annual meeting cycle. A shareholder right to act by written consent and to call a special meeting are 2 complimentary ways to bring an important matter to the attention of both management and shareholders outside the annual meeting cycle. Taking action by written consent saves the expense of holding a special shareholder meeting. Our Company now requires 25% of shares to call a special meeting—a higher level than the 10% of shares permitted by Delaware law. Scores of Fortune 500 companies provide for both shareholder rights—to act by written consent and to call a special meeting. Our higher 25% threshold for shareholders to call a special meeting is one more reason that we should KDYH WKH ULJKW WR DFW E ZULWWHQ FRQVHQW. (7KH IDFW WKDW RXU /HDG 'LUHFWRU FDQQRW FDOO D VSHFLDO PHHWLQJ PD EH D UHG ÀDJ that our Board does not believe in the role of a strong Lead Director.) 6KDUHKROGHU ZULWWHQ FRQVHQW DQG VKDUHKROGHU-FDOOHG VSHFLDO PHHWLQJV FDQ EH 2 PHDQV WR HOHFW GLUHFWRUV ZLWK EHWWHU TXDOL¿FDWLRQV WKDQ FXUUHQW GLUHFWRUV DIWHU 2018. 2XU %RDUG PD KDYH D UHIUHVKPHQW SUREOHP ZLWK IRXU GLUHFWRUV KDYLQJ WHQXUH EHRQG 16-HDUV 3DXO *DJQp /DZUHQFH )LVK &KDUOHV 3RZHOO .DWKOHHQ %DGHU 22-HDUV 18-HDUV 16-HDUV 16-HDUV Plus, Paul Gagné had previous directorships tainted by bankruptcies and nonetheless is on the audit and executive pay committees. Mr. Fish has a previous directorship tainted by a bankruptcy and nonetheless is on the nomination and executive pay committees. Mr. Powell is also on our nomination committee. Ms. Bader is also the Board’s Lead Director, an important role which demands greater independence. Long tenure can challenge the independence of any director no matter how TXDOL¿HG. $QG 3 GLUHFWRUV ZHUH EHRQG DJH 74. 3OHDVH YRWH WR LQFUHDVH RXU RSWLRQV WR HQVXUH WKH EHVW TXDOL¿HG GLUHFWRUV Right to Act by Written Consent—Proposal 4 Our Response to the Shareholder Proposal The Board of Directors recommends a vote AGAINST this shareholder proposal. The Board has carefully considered the shareholder proposal and the rejection by Textron’s shareholders of a substantially similar proposal submitted by the same proponent at the 2014 Annual Meeting of Shareholders. As in 2014, the Board believes that the proposal is contrary to the best interests of Textron and its shareholders. Moreover, it is unnecessary in light of the existing ability of Textron’s shareholders to call special meetings of shareholders and our shareholders’ right to proxy access. For the reasons discussed below, the Board recommends that shareholders vote AGAINST the proposal. The Board believes that Textron’s current governance processes, whereby corporate actions proposed by shareholders are FRQVLGHUHG DQG YRWHG RQ DW DQ DQQXDO RU VSHFLDO PHHWLQJ RI WKH VKDUHKROGHUV RI ZKLFK DOO VKDUHKROGHUV DUH QRWL¿HG, SURYLGH GH¿QLWLYH SURWHFWLRQV DQG EHQH¿WV WR RXU VKDUHKROGHUV WKDW DUH DEVHQW LQ WKH ZULWWHQ FRQVHQW SURFHVV FDOOHG IRU E WKLV SURSRVDO. 51 TEXTRON 2018 PROXY STATEMENT

7H[WURQ¶V 5HVWDWHG &HUWL¿FDWH RI ,QFRUSRUDWLRQ VSHFL¿FDOO SURKLELWV VKDUHKROGHU DFWLRQ E OHVV WKDQ XQDQLPRXV ZULWWHQ FRQVHQW. 7KLV is to ensure that all shareholders are informed of critical matters affecting the Company and of the Board’s views before shareholder DFWLRQ LV UHTXHVWHG DQG WDNHQ DYRLGLQJ DEXVLYH VLWXDWLRQV WKDW FDQ DULVH ZKHQ VKDUHKROGHUV FDQ DFW E ZULWWHQ FRQVHQW VXFK DV VKRUW-term shareholders acting without notice and without opportunity for all shareholders to consider a proposed action. 7H[WURQ¶V $PHQGHG DQG 5HVWDWHG %-/DZV FRQWDLQ VXEVWDQWLDO VDIHJXDUGV WR SURWHFW WKH LQWHUHVWV RI VKDUHKROGHUV E UHTXLULQJ that shareholders proposing business for a shareholder vote either submit their proposals for consideration at the annual meeting pursuant to the SEC’s shareholder proposal process or provide advance notice to the Company of any proposed director nomination or proposed business. If a proposal or nomination is not included in Textron’s proxy statement, the advance QRWLFH E-ODZ UHTXLUHV VKDUHKROGHUV WR SURYLGH FHUWDLQ LQIRUPDWLRQ DERXW WKHPVHOYHV DQ QRPLQHH DQG WKH SURSRVHG EXVLQHVV including a description of the proposed business, the reason for conducting the business at the meeting and disclosure of any material interest of the proponent in such proposed business. Under this process, the Company is able to make certain that all shareholders are made aware of the matters that are to be considered at a meeting of shareholders, and the Board is able to present an analysis of such proposals and its recommendations to the Company’s shareholders. Moreover, when proposals or nominations are considered at a meeting of shareholders, shareholders are assured of having an appropriate time to consider such matters, engage in dialogue with the Company and other shareholders and to vote for or against the matter. In contrast, authorizing shareholder action by written consent, as requested by the proposal, would enable a small group of shareholders to accumulate Textron shares for only a short time and use the consent procedure to take action without the procedural safeguards attendant to a shareholders’ meeting, including without notice to other shareholders and without affording all shareholders the right to vote on the matter. Without these procedural safeguards, action by written consent PD EH XVHG WR IRUFH ZKROHVDOH DPHQGPHQWV WR WKH &RPSDQ¶V %-/DZV RU WR HIIHFW RWKHU VLJQL¿FDQW FRUSRUDWH DFWLRQV without advance notice to, or participation by, all shareholders. Shareholder action by written consent as contemplated by WKH SURSRVDO ZRXOG HOLPLQDWH WKH EHQH¿WV RI DGYDQFH QRWLFH DERXW WKH SURSRQHQW RU WKH SURSRVDO DQG ZRXOG HOLPLQDWH WKH EHQH¿W RI KHDULQJ WKH YLHZV RI RWKHU VKDUHKROGHUV RU RI WKH %RDUG. 7KHUHIRUH DOORZLQJ DFWLRQ E ZULWWHQ FRQVHQW FDQ UHVXOW LQ a majority of shareholders not being informed about the proposed action until after the action has already been taken, thereby disenfranchising those shareholders who do not have the opportunity to be informed or to participate. This could result in the taking of an action that otherwise would not have been taken if all of our shareholders were afforded the opportunity to discuss and vote on the matter. As a result, this proposal could have adverse consequences to our shareholders and the Company. Shareholder action by written consent as requested by the proposal also has the potential to create substantial confusion among our shareholders. Multiple groups of shareholders would be able to solicit written consents at any time and as often as WKH FKRRVH RQ PDWWHUV RI VSHFLDO LQWHUHVW WR WKHP. 7KHUH DOVR LV WKH SRVVLELOLW WKDW FRQVHQW VROLFLWDWLRQV PD FRQÀLFW ZLWK RQH another or be duplicative, be disruptive to the Company’s operations and cause the Company to incur substantial expense. 0RUHRYHU LQ DGGLWLRQ WR WKH SURWHFWLRQV DQG VDIHJXDUGV SURYLGHG E RXU FXUUHQW JRYHUQDQFH SURFHVVHV RXU E-ODZV SURYLGH RXU shareholders with additional rights that make adoption of this proposal unnecessary. Those rights include the right to proxy access, implemented by the Board in 2016, which allows eligible shareholders to include their own director nominees in the Company’s SUR[ PDWHULDOV IRU FRQVLGHUDWLRQ DW RXU DQQXDO PHHWLQJ. ,Q DGGLWLRQ XQGHU RXU %-/DZV VKDUHKROGHUV ZKR KROG WZHQW-¿YH SHUFHQW of our outstanding shares have the right to call special meetings of shareholders if the need arises for shareholders to consider DQG YRWH RQ PDWWHUV EHWZHHQ DQQXDO PHHWLQJV. 2XU %-/DZV LPSRVH QRWLFH DQG RWKHU UHTXLUHPHQWV WR H[HUFLVH WKH ULJKW WR SUR[ DFFHVV DQG RQ WKH VSHFLDO PHHWLQJ SURFHVV WR JXDUG DJDLQVW WKH H[HUWLRQ RI LQDSSURSULDWH LQÀXHQFH E VKDUHKROGHUV ZLWK VSHFLDO LQWHUHVWV WKDW PD EH LQFRQVLVWHQW ZLWK WKH ORQJ-WHUP EHVW LQWHUHVWV RI 7H[WURQ DQG RXU VKDUHKROGHUV LQ JHQHUDO. 7KH %RDUG EHOLHYHV RXU H[LVWLQJ E-ODZ SURYLVLRQV DOORZLQJ VKDUHKROGHUV SUR[ DFFHVV DQG WKH ULJKW WR FDOO VSHFLDO PHHWLQJV strike the right balance between the rights of shareholders to have a voice in driving the Company’s governance, on the one hand, and protecting against abusive actions that may disrupt the effective management of the Company and be detrimental to shareholder interests, on the other. In contrast, adopting this proposal and giving shareholders the ability to act by written consent would allow any shareholder, regardless of ownership interest, to initiate a potentially unlimited number of consent solicitations on any topic at any time which could enable a single shareholder to advance its own special interests to the detriment of the majority of shareholders. The Board believes that the potential for abuse and disenfranchisement of minority shareholders and other adverse consequences associated with the right to act by less than unanimous written consent RXWZHLJKV DQ SRWHQWLDO EHQH¿WV WR RXU VKDUHKROGHUV IURP WKLV SURSRVDO. Accordingly, the Board of Directors recommends a vote AGAINST this proposal (Item 4 on the proxy card). 52 TEXTRON 2018 PROXY STATEMENT

SHAREHOLDER PROPOSAL REGARDING DIRECTOR TENURE LIMIT 0U. :LOOLDP 6WHLQHU ZLWK DQ DGGUHVV F/R .RPORVV /DZ, 3$, 4700 6KHULGDQ 6W. 6XLWH -, +ROOZRRG, )/ 33021, RZQHU RI DW OHDVW 500 shares of our common stock, has given notice of his designation of John Chevedden as his proxy to introduce the following resolution at the annual meeting. The shareholder proposal and supporting statement appear as received by us. Following the shareholder proposal is our response. Proposal 5—Director Tenure Limit 6KDUHKROGHUV UHTXHVW RXU %RDUG RI 'LUHFWRUV WR DGRSW DV SROLF D 15-HDU WHQXUH OLPLW IRU VHUYLFH RQ WKH %RDUG RI 'LUHFWRUV. 7KH %RDUG RI 'LUHFWRUV ZRXOG KDYH GLVFUHWLRQ WR GHWHUPLQH WKH GHWDLOV RI WKH GH¿QLWLRQ RI WKH 15-HDU OLPLW (ZLWK DFFRPSDQLQJ MXVWL¿FDWLRQ) VXFK DV DOORZLQJ XS WR 15-HDUV DQG 364 GDV VHUYLFH. 7KLV ZRXOG LQFOXGH D SURYLVLRQ WKDW PDQDJHPHQW ZRXOG KDYH WKH GLVFUHWLRQ WR implement an orderly transition to this requirement should there be a temporary deviation in meeting this requirement. /RQJ-WHQXUH FDQ LPSDLU WKH LQGHSHQGHQFH RI D GLUHFWRU QR PDWWHU KRZ ZHOO TXDOL¿HG. $QG LQGHSHQGHQFH LV DQ DOO-LPSRUWDQW TXDOL¿FDWLRQ IRU D 'LUHFWRU. $ GLUHFWRU ZKR ODFNV LQGHSHQGHQFH FDQQRW SURWHFW WKH LQWHUHVW RI VKDUHKROGHUV. $W 7H[WURQ, WKH IROORZLQJ directors had excessive tenure: 3DXO *DJQp /DZUHQFH )LVK &KDUOHV 3RZHOO .DWKOHHQ %DGHU 22-HDUV 18-HDUV 16-HDUV 16-HDUV Please vote to enhance the independence of our directors: Director Tenure Limit – Proposal 5 Our Response to the Shareholder Proposal The Board of Directors recommends a vote AGAINST this shareholder proposal. The Board has carefully considered this shareholder proposal and believes that the proposal is contrary to the best interests RI 7H[WURQ DQG LWV VKDUHKROGHUV. 7KH %RDUG EHOLHYHV WKDW WHUP OLPLWV DUH QRW DSSURSULDWH EHFDXVH WKH FRXOG SUHYHQW TXDOL¿HG, experienced and effective directors from serving on the Board. In addition, the Board believes that term limits are unnecessary due to the Board’s robust nomination process, recent board succession actions, emphasis on director independence, and other corporate governance practices. To assess the composition of the Board and the future requirements for Board members, the Nominating and Corporate *RYHUQDQFH &RPPLWWHH DQQXDOO UHYLHZV WKH UHVXOWV RI WKH VHOI-HYDOXDWLRQ FRQGXFWHG E WKH %RDUG DQG HDFK RI LWV WKUHH FRPPLWWHHV, WKH &RPSDQ¶V EXVLQHVV VWUDWHJ DQG WKH VNLOOV, TXDOL¿FDWLRQV, DQG H[SHULHQFH QHHGHG RQ WKH %RDUG WR VXSSRUW WKDW VWUDWHJ, DQG WKH PL[ RI VNLOOV, TXDOL¿FDWLRQV, DQG H[SHULHQFH RI RXU H[LVWLQJ GLUHFWRUV. :LWK WZR UHFHQW UHWLUHPHQWV (/RUG 3RZHOO and Mr. Hancock) and one upcoming retirement (Mr. Evans) due to our Board’s mandatory retirement age, our Board has engaged in a careful and thorough board refreshment process over the past two years which resulted in the addition of three exceptional new members to our Board. Ms. Zuber, Mr. Heath and Ms. James each bring to our Board a variety of backgrounds, skills and experience that will help support our Company and our Board. The Board believes that its robust Board succession, HYDOXDWLRQ, DQG QRPLQDWLRQ SURFHVV LV VXSHULRU WR WKH LPSRVLWLRQ RI LQÀH[LEOH %RDUG TXDOL¿FDWLRQ FULWHULD VXFK DV WHUP OLPLWV. 53 TEXTRON 2018 PROXY STATEMENT

7KH %RDUG EHOLHYHV WKDW LW EHQH¿WV IURP WKH NQRZOHGJH DQG LQVLJKW FRQFHUQLQJ WKH &RPSDQ¶V RSHUDWLRQV, LQGXVWU DQG ORQJ-WHUP strategies that experienced directors bring, and believes that it is inappropriate to limit service by a particular individual on the EDVLV RI WHQXUH DORQH. ,QVWHDG, WKH EDODQFH RI ORQJHU DQG VKRUWHU WHQXUHV RQ RXU %RDUG FRPELQHV WKH EHQH¿W RI IUHVK RXWORRNV DQG QHZ SHUVSHFWLYHV ZLWK GHHS H[SHULHQFH VSHFL¿F WR RXU &RPSDQ DQG LWV YDULRXV EXVLQHVV DFWLYLWLHV. With regard to the independence of our directors, the Company’s Corporate Governance Guidelines and Policies require that a substantial majority of our directors meet stringent independence standards which comply with New York Stock Exchange OLVWLQJ VWDQGDUGV. 7KH %RDUG DQQXDOO UHYLHZV DQG GHWHUPLQHV WKH LQGHSHQGHQFH RI HDFK 'LUHFWRU DQG QR 'LUHFWRU TXDOL¿HV DV ³LQGHSHQGHQW´ XQOHVV WKH %RDUG RI 'LUHFWRUV DI¿UPDWLYHO GHWHUPLQHV WKDW WKH 'LUHFWRU KDV QR PDWHULDO UHODWLRQVKLS ZLWK WKH &RPSDQ (HLWKHU GLUHFWO RU DV D SDUWQHU, VKDUHKROGHU RU RI¿FHU RI DQ RUJDQL]DWLRQ WKDW KDV D UHODWLRQVKLS ZLWK WKH &RPSDQ). All of our directors, other than Mr. Donnelly, are independent under these stringent standards. For the foregoing reasons, the Board believes that the arbitrary term limit contemplated by this proposal is unnecessary and FRXQWHUSURGXFWLYH WR RXU %RDUG¶V DSSURDFK WR LGHQWLILQJ, UHFUXLWLQJ DQG UHWDLQLQJ TXDOL¿HG, H[SHULHQFHG DQG HIIHFWLYH GLUHFWRUV who contribute to the diversity of background, skills and experiences represented on the Board and who work hard to support shareholder value. Accordingly, the Board of Directors recommends a vote AGAINST this proposal (Item 5 on the proxy card). 54 TEXTRON 2018 PROXY STATEMENT

OTHER MATTERS TO COME BEFORE THE MEETING 7KH %RDUG RI 'LUHFWRUV GRHV QRW NQRZ RI DQ PDWWHUV ZKLFK ZLOO EH EURXJKW EHIRUH WKH PHHWLQJ RWKHU WKDQ WKRVH VSHFL¿FDOO VHW forth in the notice thereof. If any other matter properly comes before the meeting, it is intended that the persons named in and acting under the enclosed form of proxy or their substitutes will vote thereon in accordance with their best judgment. SHAREHOLDER PROPOSALS AND OTHER MATTERS FOR 2019 ANNUAL MEETING Shareholder proposals to be considered for inclusion in the proxy statement and form of proxy relating to the 2019 annual meeting RI VKDUHKROGHUV XQGHU 5XOH 14D-8 XQGHU WKH 6HFXULWLHV ([FKDQJH $FW RI 1934 DV DPHQGHG PXVW EH UHFHLYHG E 7H[WURQ DW 40 Westminster Street, Providence, Rhode Island 02903, Attention: Executive Vice President, General Counsel and Secretary, on or before November 7, 2018. Our shareholders have proxy access, which allows a shareholder or group of up to 20 shareholders owning in the aggregate 3% or more of our outstanding common stock continuously for at least three years to nominate and include in our proxy materials GLUHFWRU QRPLQHHV FRQVWLWXWLQJ XS WR 20% RI WKH QXPEHU RI GLUHFWRUV LQ RI¿FH RU WZR QRPLQHHV ZKLFKHYHU LV JUHDWHU SURYLGHG WKH VKDUHKROGHU(V) DQG QRPLQHH(V) VDWLVI WKH UHTXLUHPHQWV LQ 7H[WURQ¶V $PHQGHG DQG 5HVWDWHG %-/DZV. ,I D VKDUHKROGHU RU JURXS of shareholders wishes to nominate one or more director candidates to be included in the Company’s proxy statement for the 2019 annual meeting, we must receive proper written notice of the nomination not less than 120 or more than 150 days before WKH DQQLYHUVDU GDWH WKDW WKH GH¿QLWLYH SUR[ VWDWHPHQW ZDV ¿UVW UHOHDVHG WR VKDUHKROGHUV LQ FRQQHFWLRQ ZLWK WKH LPPHGLDWHO preceding annual meeting, or between the close of business on October 7, 2018 and the close of business on November 7, 2018 IRU WKH 2019 DQQXDO PHHWLQJ DQG WKH QRPLQDWLRQ PXVW RWKHUZLVH FRPSO ZLWK RXU %-/DZV. ,I WKH DQQXDO PHHWLQJ LV FDOOHG IRU D date that is more than 30 days before or after the anniversary date, then the notice must be received no later than the close of business on the 120th day prior to such meeting and no earlier than the close of business on the 150th day prior to such meeting RU 10 GDV DIWHU SXEOLF GLVFORVXUH RI WKH PHHWLQJ LV ¿UVW PDGH ZKLFKHYHU RFFXUV ODWHU. If shareholders instead wish to bring other business before a shareholder meeting, timely notice must be received by Textron in DGYDQFH RI WKH PHHWLQJ. 8QGHU 7H[WURQ¶V %-/DZV VXFK QRWLFH PXVW EH UHFHLYHG QRW OHVV WKDQ 90 QRU PRUH WKDQ 150 GDV EHIRUH the anniversary date of the immediately preceding annual meeting of shareholders or, between November 26, 2018 and the close of business on January 25, 2019, for the 2019 annual meeting (but if the annual meeting is called for a date that is more than 30 days before or more than 60 days after the anniversary date, then the notice must be received no later than the close of EXVLQHVV RQ WKH 90WK GD EHIRUH WKH GDWH RI WKH DQQXDO PHHWLQJ RU 10 GDV DIWHU SXEOLF GLVFORVXUH RI WKH PHHWLQJ LV ¿UVW PDGH ZKLFKHYHU RFFXUV ODWHU). 7KH QRWLFH PXVW LQFOXGH WKH LQIRUPDWLRQ UHTXLUHG E RXU %-/DZV. 7KHVH UHTXLUHPHQWV DUH VHSDUDWH IURP WKH UHTXLUHPHQWV D VKDUHKROGHU PXVW PHHW WR KDYH D SURSRVDO LQFOXGHG LQ 7H[WURQ¶V SUR[ VWDWHPHQW XQGHU 5XOH 14D-8. 7KHVH WLPH OLPLWV DOVR DSSO WR QRPLQDWLRQV VXEPLWWHG E VKDUHKROGHUV XQGHU RXU %-/DZV DQG LQ GHWHUPLQLQJ ZKHWKHU QRWLFH LV timely for purposes of rules adopted by the Securities and Exchange Commission relating to the exercise of discretionary voting authority by Textron. 55 TEXTRON 2018 PROXY STATEMENT

DELIVERY OF DOCUMENTS TO SHAREHOLDERS SHARING AN ADDRESS 7KH EURNHU, EDQN RU RWKHU QRPLQHH IRU DQ VKDUHKROGHU ZKR LV D EHQH¿FLDO RZQHU, EXW QRW WKH UHFRUG KROGHU, RI WKH &RPSDQ¶V VKDUHV PD GHOLYHU RQO RQH FRS RI WKH &RPSDQ¶V SUR[ VWDWHPHQW DQG DQQXDO UHSRUW, RU D 1RWLFH RI ,QWHUQHW $YDLODELOLW (D “Notice”), as applicable, to multiple shareholders who share the same address, unless that broker, bank or other nominee has UHFHLYHG FRQWUDU LQVWUXFWLRQV IURP RQH RU PRUH RI WKH VKDUHKROGHUV. 7KH &RPSDQ ZLOO GHOLYHU SURPSWO, XSRQ ZULWWHQ RU RUDO UHTXHVW, D VHSDUDWH FRS RI WKH SUR[ VWDWHPHQW DQG DQQXDO UHSRUW RU D 1RWLFH, DV DSSOLFDEOH, WR D VKDUHKROGHU DW D VKDUHG DGGUHVV WR ZKLFK D VLQJOH FRS ZDV GHOLYHUHG. $ VKDUHKROGHU ZKR ZLVKHV WR UHFHLYH D VHSDUDWH FRS RI WKH SUR[ VWDWHPHQW DQG DQQXDO UHSRUW RU D 1RWLFH, QRZ RU LQ WKH IXWXUH, VKRXOG VXEPLW WKHLU UHTXHVW WR WKH &RPSDQ E WHOHSKRQH DW (401) 457-2288 RU E VXEPLWWLQJ D ZULWWHQ UHTXHVW WR WKH 6HFUHWDU DW 7H[WURQ ,QF., 40 :HVWPLQVWHU 6WUHHW, 3URYLGHQFH, 5KRGH ,VODQG 02903. %HQH¿FLDO owners sharing an address who are receiving multiple copies of these materials and wish to receive a single copy of such materials in the future will need to contact their broker, bank or other nominee to request that only a single copy of each document be mailed to all shareholders at the shared address in the future. % RUGHU RI WKH %RDUG RI 'LUHFWRUV, E. Robert Lupone Executive Vice President, General Counsel and Secretary 0DUFK 7, 2018 YOUR VOTE IS IMPORTANT. WHETHER OR NOT YOU PLAN TO ATTEND THE MEETING IN PERSON, PLEASE VOTE YOUR PROXY VIA INTERNET OR TELEPHONE OR, IF YOU RECEIVED PRINTED PROXY MATERIALS, FILL IN, SIGN, DATE AND RETURN THE ACCOMPANYING PROXY CARD IN THE ENVELOPE PROVIDED. TETXETXRTORONN20210818PRPOROXYXYSTSATTAETMEMENETNT 564

40 Westminster Street Providence, RI 02903 (401) 421-2800 www.textron.com © 2018 TEXTRON INC.

VIEW MATERIALS & VOTE w SCAN TO TEXTRON INC. 40 WESTMINSTER STREET PROVIDENCE, RI 02903 VOTE BY INTERNET - www.proxyvote.com or scan the QR Barcode above Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the meeting date. Have your proxy card in hand, and follow the instructions to cast your vote. ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years. VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the meeting date. Have your proxy card in hand when you call and then follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. SAVING PLAN SHARES Voting instructions for shares in the Textron savings plans, whether voted by Internet, phone or mail, must be received by 11:59 P.M. Eastern Time on April 22, 2018. TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: E37730-P01183-Z71648 KEEP THIS PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLY THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. TEXTRON INC. The Board of Directors recommends you vote "FOR" the following nominees: 1. Election of Directors For ! ! ! ! ! ! ! ! ! ! ! Against ! ! ! ! ! ! ! ! ! ! ! Abstain ! ! ! ! ! ! ! ! ! ! ! 1a. Scott C. Donnelly The Board of Directors recommends you vote "FOR" Proposals 2 and 3. For Against Abstain ! ! ! ! ! ! 1b. Kathleen M. Bader 2. Approval of the advisory (non-binding) resolution to approve executive compensation. Ratification of appointment of independent registered public accounting firm. 1c. R. Kerry Clark 3. 1d. James T. Conway The Board of Directors recommends you vote "AGAINST" Proposals 4 and 5. ! ! ! ! ! ! 1e. Lawrence K. Fish 4. Shareholder proposal regarding shareholder action by written consent. Shareholder proposal regarding director tenure limit. 1f. Paul E. Gagné 5. 1g. Ralph D. Heath 1h. Deborah Lee James 1i. Lloyd G. Trotter 1j. James L. Ziemer 1k. Maria T. Zuber ! For address changes and/or comments, please check this box and write them on the back where indicated. Please indicate if you plan to attend this meeting. Note: In their discretion, the proxies are authorized to vote on such other business as may properly come before the meeting or any adjournment thereof. ! Yes ! No Note: Please sign exactly as your name or names appear on this proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. If the signer is a partnership, please sign in partnership name by authorized person. Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date

ANNUAL MEETING OF SHAREHOLDERS OF TEXTRON INC. Wednesday, April 25, 2018, 11:00 a.m. EDT Textron Inc. 40 Westminster Street Providence, Rhode Island IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON APRIL 25, 2018 The Company's Proxy Statement for the 2018 Annual Meeting of Shareholders and the Annual Report to Shareholders for the fiscal year ended December 30, 2017, including the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2017, are available at http://investor.textron.com/investors/investor-resources. E37731-P01183-Z71648 TEXTRON INC. Proxy Solicited on Behalf of the Board of Directors for Annual Meeting of Shareholders, April 25, 2018 The undersigned hereby appoint(s) Scott C. Donnelly, Frank T. Connor and E. Robert Lupone, or any one of them, attorneys with full power of substitution and revocation to each, for and in the name of the undersigned with all the powers the undersigned would possess if personally present, to vote the shares of the undersigned in Textron Inc. as indicated on the proposals referred to on the reverse side hereof at the annual meeting of its shareholders to be held on Wednesday, April 25, 2018, and at any adjournments thereof, and in their or his discretion upon any other matter which may properly come before said meeting. This card also constitutes voting instructions to the trustees under the Textron savings plans to vote, in person or by proxy, the proportionate interest of the undersigned in the shares of Common Stock of Textron Inc. held by the trustees under the plans, as described in the proxy statement. All voting instructions for shares in the Textron savings plans, whether voted by mail, telephone or Internet, must be received by 11:59 p.m. Eastern Time on April 22, 2018, so that the trustees of the plans (who vote the shares on behalf of participants in the plans) have adequate time to tabulate the voting instructions. Your voting instructions will be kept confidential. This proxy, when properly signed, will be voted as directed by the undersigned shareholder(s). If no direction is made, this proxy will be voted FOR the nominees listed herein, FOR Proposals 2 and 3, and AGAINST Proposals 4 and 5. If the card constitutes voting instructions to a savings plan trustee, the trustee will vote as described in the proxy statement. (If you noted any Address Changes/Comments above, please mark corresponding box on the reverse side.) (Continued and to be signed on reverse side) Address Changes/Comments: