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67 Textron Inc. Annual Report • 2013
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) 2013 2012 2011
Fair value of awards vested $ 13 $ 10 $ 33
Cash paid 11 52 1
Note 11. 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.
We also have domestic and foreign funded and unfunded defined benefit pension plans that cover certain of our U.S. and foreign
employees. In addition, several defined contribution plans are sponsored by our various businesses, of which the largest plan is the
Textron Savings Plan, which is a qualified 401(k) plan subject to ERISA. Our defined contribution plans cost approximately $93
million, $88 million and $85 million in 2013, 2012 and 2011, respectively; these amounts include $19 million, $21 million and $23
million, respectively, in contributions to the RAP. We also provide postretirement benefits other than pensions for certain retired
employees in the U.S., which include healthcare, dental care, Medicare Part B reimbursement and life insurance benefits.
Periodic Benefit Cost
The components of our net periodic benefit cost and other amounts recognized in OCI are as follows:
Pension Benefits
Postretirement Benefits
Other than Pensions
(In millions) 2013 2012 2011 2013 2012 2011
Net periodic benefit cost
Service cost $ 133 $ 119 $ 129 $ 6 $ 6 $ 8
Interest cost 290 305 327 19 25 33
Expected return on plan assets (418) (407) (393) — — —
Amortization of prior service cost (credit) 15 16 16 (17) (11) (8)
Amortization of net actuarial loss 183 118 75 6 7 11
Curtailment and special termination charges — — (1) — — —
N
et periodic benefit cos
t
$ 203 $ 151 $ 153 $ 14 $ 27 $ 44
Other changes in plan assets and benefit obligations
recognized in OCI
Current year actuarial loss (gain) $ (964) $ 402 $ 556 $ (55) $ 15 $ (17)
Current year prior service cost (credit) 16 — 7 (45) (2) (23)
Amortization of net actuarial loss (183) (118) (75) (6) (7) (11)
Amortization of prior service credit (cost) (15) (16) (16) 17 11 8
Curtailments and settlements — — 1 — — —
Total recognized in OCI, before taxes $ (1,146) $ 268 $ 473 $ (89) $ 17 $ (43)
Total recognized in net periodic benefit cost and OCI $ (943) $ 419 $ 626 $ (75) $ 44 $ 1