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Textron Inc. Annual Report ● 2012 71
Units Payable in Stock Units Payable in Cash
(Shares/Units in thousands)
Number of
Shares
Weighted-
Average Grant
Date Fair Value
Number of
Units
Weighted-
Average Grant
Date Fair Value
Outstanding at beginning of year, nonvested 638 $ 35.53 2,927 $ 17.33
Granted 386 27.44 837 27.65
Vested (275) (39.02) (913) (15.76)
Forfeited (39) (32.56) (311) (21.45)
Outstanding at end of year, nonvested 710 $ 29.94 2,540 $ 20.79
The fair value of the restricted stock awards that vested and/or amounts paid under these awards during the respective periods is as
follows:
(In millions) 2012 2011 2010
Fair value of awards vested $ 35 $ 41 $ 31
Cash paid 25 23 13
Performance Share Units
The fair value of share-based compensation awards accounted for as liabilities includes performance share units, which are paid in
cash in the first quarter of the year following vesting. Payouts under performance share units vary based on certain performance
criteria generally set for each year of a three-year performance period. The performance share units vest at the end of three years.
The fair value of these awards is based on the trading price of our common stock and is remeasured at each reporting period date.
The 2012 activity for our performance share units is as follows:
(Units in thousands)
Number of
Units
Weighted-
Average
Grant Date
Fair Value
Outstanding at beginning of year, nonvested 859 $ 22.98
Granted 535 27.76
Vested (429) (20.21)
Forfeited (90) (24.18)
Outstanding at end of year, nonvested 875 $ 27.14
The fair value of the performance share units that vested and/or amounts paid under these awards during the respective periods is
as follows:
(In millions) 2012 2011 2010
Fair value of awards vested 10 33 11
Cash paid 52 1 5
Note 13. Retirement Plans
Our defined benefit and defined contribution plans cover substantially all of our employees. A significant number of our U.S.-
based employees participate in the Textron Retirement Plan, which is designed to be a “floor-offset” arrangement with both a
defined benefit component and a defined contribution component. The defined benefit component of the arrangement includes the
Textron Master Retirement Plan (TMRP) and the Bell Helicopter Textron Master Retirement Plan (BHTMRP), and the defined
contribution component is the Retirement Account Plan (RAP). The defined benefit component provides a minimum guaranteed
benefit (or “floor” benefit). Under the RAP, participants are eligible to receive contributions from Textron of 2% of their eligible
compensation but may not make contributions to the plan. Upon retirement, participants receive the greater of the floor benefit or
the value of the RAP. Both the TMRP and the BHTMRP are subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA). Effective on January 1, 2010, the Textron Retirement Plan was closed to new participants, and
employees hired after that date receive an additional 4% annual cash contribution to their Textron Savings Plan account based on
their eligible compensation.