SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
for the fiscal year ended December 31, 1993
Commission File Number 1-5480
A. Full title of the plan and address of the plan:
TEXTRON SAVINGS PLAN
40 Westminster Street
Providence, Rhode Island 02903
B. Name of issuer of the securities held pursuant to
the plan and address of its principal executive
office:
TEXTRON INC.
40 Westminster Street
Providence, Rhode Island 02903
REQUIRED INFORMATION
Financial Statements and Exhibit
The following Plan financial statements and schedules
prepared in accordance with the financial reporting
requirements of the Employee Retirement Income Security Act
of 1974 are filed herewith, as permitted by Item 4 of Form
11-K:
Report of Independent Auditors
Statement of Net Assets Available for Benefits at December
31, 1993 and 1992
Statement of Changes in Net Assets Available for Benefits
for each of the two years ended December 31, 1993 and 1992
Notes to Financial Statements
Schedule I - Assets Held for Investment
Schedule II - Transactions or Series of Transactions in
Excess of 5% of the Current Value of Plan Assets
The Consent of Independent Auditors is filed as an exhibit
to this Annual Report.
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Committee appointed by the Board of Directors of
Textron Inc. to administer the Plan has duly caused this Annual
Report on Form 11-K to be signed by the undersigned hereunto
duly authorized.
TEXTRON SAVINGS PLAN
By: /s/Duncan I. Sutherland
Duncan I. Sutherland
Attorney-in-fact
Date: June 17,1994
<PAGE>
Financial Statements
and Supplemental Schedules
Textron Savings Plan
Years ended December 31, 1993 and 1992
with Report of Independent Auditors
<PAGE>
Textron Savings Plan
Financial Statements
and Supplemental Schedules
Years ended December 31, 1993 and 1992
Contents
Report of Independent Auditors 1
Audited Financial Statements
Statement of Net Assets Available for Benefits, December 31, 1993 2
Statement of Net Assets Available for Benefits, December 31, 1992 3
Statement of Changes in Net Assets Available for Benefits,
December 31, 1993 4
Statement of Changes in Net Assets Available for Benefits,
December 31, 1992 5
Notes to Financial Statements 6
Supplemental Schedules
Schedule I--Assets Held for Investment 14
Schedule II--Transactions or Series of Transactions in Excess of 5%
of the Current Value of Plan Assets 16
<page 1>
Report of Independent Auditors
The Benefits Committee
Textron Savings Plan
We have audited the accompanying statements of net assets available for
benefits of the Textron Savings Plan (the Plan) as of December 31, 1993 and
1992, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 1993 and 1992, and the changes in net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment as of December 31, 1993, and transactions or
series of transactions in excess of 5% of the current value of plan assets for
the year then ended are presented for purposes of complying with the Department
of Labor's Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974, and are not a required part of
the basic financial statements. The supplemental schedules have been subjected
to the auditing procedures applied in our audit of the 1993 financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the 1993 basic financial statements taken as a whole.
/s/ Ernst & Young
New York, New York
May 6, 1994
<page 2>
<TABLE>
<CAPTION>
Textron Savings Plan
Statement of Net Assets Available for Benefits
December 31, 1993
<S> <C> <C> <C> <C> <C> <C>
Fund Fund Fund Fund
A B C H Loans Total
(in thousands)
Assets
Investments, at market (Note 5):
Textron Inc. common stock $923,438 $ - $ - $ - $ - $ 923,438
U.S. Government securities - - 33,967 - - 33,967
Equity index fund - 63,627 - - - 63,627
Short-term investments 1,432 10 15,726 22 - 17,190
924,879 63,637 49,693 22 - 1,038,222
Guaranteed insurance contracts, at contract value - - 132,361 - - 132,361
Total investments 924,879 63,637 182,054 22 - 1,170,583
Receivables:
Investment income 4,921 - 370 - - 5,291
Interfund - 395 - - - 395
Loans - - - - 76 76
Other 456 39 10 - 1 506
Total Receivables 5,377 434 380 - 77 6,268
Total Assets 930,247 64,071 182,434 22 77 1,176,851
Liabilities
Payables:
Contributions 1,077 86 330 - - 1,493
Interest 208 - - - - 208
Investments purchased 815 10 - - - 825
Interfund 388 - 7 - - 395
2,488 96 337 - - 2,921
Senior note (Note 6) 29,595 - - - - 29,595
Total liabilities 32,083 96 337 - - 32,516
Net assets available for benefits $898,164 $63,975 $182,097 $22 $77 $1,144,335
</TABLE>
<page 3>
<TABLE>
<CAPTION>
Textron Savings Plan
Statement of Net Assets Available for Benefits
December 31, 1992
<S> <C> <C> <C> <C> <C> <C>
Fund Fund Fund Fund
A B C H Loans Total
(in thousands)
Assets
Investments, at market (Note 5):
Textron Inc. common stock $749,432 $ - $ - $ - $ - $ 749,432
U.S. Government securities - - 37,553 - - 37,553
Equity index fund - 52,167 - - - 52,167
Short-term investments 1,662 1 16,599 2 - 18,264
751,094 52,168 54,152 2 - 857,416
Guaranteed insurance contracts, at contract value - - 125,082 - - 125,082
Total investments 751,094 52,168 179,234 2 - 982,498
Receivables:
Investment income 4,695 - 239 - - 4,934
Interfund - 496 - - - 496
Loans - - - - 154 154
Other 14 17 23 - - 54
Total Receivables 4,709 513 262 - 154 5,638
Total Assets 755,803 52,681 179,496 2 154 988,136
Liabilities
Payables:
Contributions 1,305 145 227 - - 1,677
Interest 319 - - - - 319
Employee withdrawals 186 469 1,542 1 - 2,198
Investments purchased 1,854 - - - - 1,854
Interfund 363 - 133 - - 496
4,027 614 1,902 1 - 6,544
Senior note (Note 6) 44,995 - - - - 44,995
Total liabilities 49,022 614 1,902 1 - 51,539
Net assets available for benefits $706,781 $52,067 $177,594 $1 $154 $936,597
</TABLE>
<page 4>
<TABLE>
<CAPTION>
Textron Savings Plan
Statement of Changes in Net Assets Available for Benefits
December 31, 1993
<S> <C> <C> <C> <C> <C> <C>
Fund Fund Fund Fund
A B C H Loans Total
(in thousands)
Contributions, net:
Employee $ 49,291 $ 9,989 $ 11,690 $ - $ - $ 70,970
Employer 21,411 - - - - 21,411
70,702 9,989 11,690 - - 92,381
Repayment of loans 12 34 33 - (79) -
Investment income:
Dividends 21,029 - - - - 21,029
Interest - - 12,043 - 7 12,050
Short-term and equity index funds 36 - 540 - - 576
21,065 - 12,583 - 7 33,655
Increase in unrealized appreciation of
investments held 161,627 3,458 787 - - 165,872
Realized appreciation on stock distributed,
sold or forfeited 57,481 2,160 85 - - 59,726
310,887 15,641 25,178 - (72) 351,634
Employee withdrawals (110,758) (5,673) (23,388) - (5) (139,824)
Employee transfers (4,912) 2,025 2,866 21 - -
Employee forfeitures (2,187) - - - - (2,187)
Interest expense (996) - - - - (996)
Administrative expenses (651) (85) (153) - - (889)
(119,504) (3,733) (20,675) 21 (5) (143,896)
Net increase (decrease) 191,383 11,908 4,503 21 (77) 207,738
Net assets available for benefits:
Beginning of year 706,781 52,067 177,594 1 154 936,597
End of year $898,164 $63,975 $182,097 $22 $77 $1,144,335
</TABLE>
<page 5>
<TABLE>
<CAPTION>
Textron Savings Plan
Statement of Changes in Net Assets Available for Benefits
December 31, 1992
<S> <C> <C> <C> <C> <C> <C> <C>
Fund Fund Fund Fund Fund
A B C D H Loans Total
Contributions, net:
Employee $ 43,485 $ 9,095 $ 13,283 $ - $ - $ - $ 65,863
Employer 24,233 - - - - - 24,233
67,718 9,095 13,283 - - - 90,096
Repayment of loans 69 140 172 - - (381) -
Investment income:
Dividends 19,148 - - - - - 19,148
Interest - - 11,951 180 2 27 12,160
Short-term and equity
index funds 40 2 887 - - - 929
19,188 2 12,838 180 2 27 32,237
Increase in unrealized
appreciation of investments
held 53,038 2,053 200 - - - 55,291
Realized appreciation on stock
distributed, sold or forfeited 31,368 1,660 - - - - 33,028
171,381 12,950 26,493 180 2 (354) 210,652
Employee withdrawals (79,835) (4,942) (20,222) (315) (88) (27) (105,429)
Employee transfers (2,517) 2,642 9,209 (9,420) 86 - -
Employee forfeitures (2,322) - - - - - (2,322)
Interest expense (1,770) - - - - - (1,770)
Administrative expenses (142) (20) (36) - - - (198)
(86,586) (2,230) (11,049) (9,735) (2) (27) (109,719)
Net increase (decrease) 84,795 10,630 15,444 (9,555) - (381) 100,933
Net assets available for benefits:
Beginning of year 621,986 41,437 162,150 (9,555) 1 535 835,664
End of year $706,781 $52,067 $177,594 - $1 $154 $936,597
</TABLE>
<page 6>
Textron Savings Plan
Notes to Financial Statements
December 31, 1993 and 1992
1. Description of Plan
The Textron Savings Plan (the "Plan") is an employee stock ownership plan. For
a description of the Plan, refer to the Summary Plan Description that is on
file with the Department of Labor and available at the Human Resources office
of Textron Inc. ("Textron").
2. Significant Accounting Policies
Investments
The Plan is administered under the terms of a trust agreement, dated May 1,
1989, with Bankers Trust Company (the "Trustee").
The Plan allows employee contributions to be invested in Fund A, B, or C, based
on the election of the employee. The employee must contribute at least 50% to
Fund A. Fund H is available to any participant who has attained age 55 and
completed ten years of Textron service. Employer contributions are entirely
invested in Fund A.
Fund A is invested entirely in Textron Common Stock that is either purchased by
the Trustee or contributed by Textron. Fund B is invested in Bankers Trust
Company's (the Trustee) Equity Index Fund, which is a portfolio of common
stocks constructed with the objective of providing investment results that
approximate the overall performance of the common stocks included in the
Standard & Poors Corporate Index of 500 stocks.
The above mentioned funds are invested in their respective type of security
except during an administrative period when small amounts may be invested in
short-term securities or held uninvested.
Fund C may be invested in bonds, notes, debentures, government obligations,
insurance contracts, short-term securities, money market instruments and other
fixed income instruments at the discretion of the Textron Inc. or an investment
manager designated by Textron.
<page 7>
Textron Savings Plan
Notes to Financial Statements (continued)
2. Significant Accounting Policies (continued)
Fund D, which was merged into Fund C effective March 31, 1992, was primarily
invested in annuity contracts with life insurance companies. Fund D, which was
available to former participants of the Incentive Savings Plan for Salaried
Employees of Avco Corporation ("Avco-ISP"), was for distributions only. The
Avco-ISP was merged into the Plan as of December 31, 1985. Only former
Avco-ISP participants who chose at January 1, 1984, to have their retirement
income plan amounts transferred to Fund D were participants in such fund.
Fund H is invested in the trustee's Short-term Investment Fund, which is a
portfolio of short-term instruments, primarily demand master notes,
certificates of deposit, and commercial paper.
At December 31, 1993, there were approximately 30,700 participants in Fund A,
11,400 in Fund B, 15,900 in Fund C and 2 in Fund H.
Textron common stock is valued at the New York Stock Exchange closing price on
the last business day of the Plan year. U.S. Government securities are valued
at fair value as determined by quoted market price. The Equity Index Fund is
valued at the redemption price established by the fund's trustee which is
generally based on the fair value of the underlying assets. The Short-term
Investment Fund, sponsored by the trustee, includes pooled temporary
investments and is stated at cost which approximates market value. Insurance
contracts are valued at contract value that represents contributions made, plus
accrued interest, less funds used to pay employee withdrawals and
administrative expenses.
Investment income is recorded as earned on an accrual basis. Dividends,
interest and other distributions received by the Plan are reinvested in the
fund in which earned.
<page 8>
Textron Savings Plan
Notes to Financial Statements (continued)
2. Significant Accounting Policies (continued)
Changes in unrealized gains on investments in Funds A, B and C were calculated
as follows:
<TABLE>
<S> <C> <C> <C> <C>
Fund A Fund B Fund C Total
(In Thousands)
12/31/91 unrealized gains $256,959 $ 16,650 $ - $ 273,609
12/31/92 unrealized gains 309,997 18,703 200 328,900
1992 change in unrealized gains $ 53,038$ 2,053 $ 200 $ 55,291
12/31/92 unrealized gains $ 309,997 $ 18,703 $200 $ 328,900
12/31/93 unrealized gains 471,624 22,161 987 494,772
1993 change in unrealized gains $ 161,627 $ 3,458 $787 $ 165,872
</TABLE>
Fair Value of Insurance Contracts
The fair values presented in Note 8 are estimates of the fair values of the
insurance contracts at a specific point in time using available market
information and appropriate valuation methodologies. These estimates are
subjective in nature and involve uncertainties and significant judgment in the
interpretation of current market data. Therefore, the fair values presented
are not necessarily indicative of amounts the Plan could realize or settle
currently. The Plan does not necessarily intend to dispose of or liquidate
such instruments prior to maturity. See Note 8 for further information about
fair values of financial instruments.
Contributions
Participants of the Plan are entitled to elect compensation deferrals within
the limits prescribed by Section 401(k) of the Internal Revenue Code (the
"Code"). Contributions from employees and employee compensation deferrals,
which are matched 50% by Textron subject to certain ERISA restrictions and plan
limits, are recorded when Textron makes payroll deductions from participants'
wages. The total of the matching contributions (net of employee forfeitures)
made by Textron is limited by the Textron Board of Directors to $40 million for
any calendar year. For the years ending December 31, 1993 and 1992, employee
contributions included rollovers of approximately $1 million and $3.8 million,
respectively.
<page 9>
Textron Savings Plan
Notes to Financial Statements (continued)
2. Significant Accounting Policies (continued)
Textron makes contributions to the Plan based on estimated contribution
levels. In addition, Textron may make, at its own discretion, additional
contributions. To the extent actual contributions by the participants differ
from estimated contributions, a contribution receivable or payable from Textron
will result. All forfeitures arising out of a participant's termination of
employment for reasons other than retirement, disability or death, are used to
reduce future Textron contributions. Textron's contributions are also reduced
by the market value of any excess shares that are released as a result of the
loan payment (see Note 5). For the years ending December 31, 1993 and 1992,
employer contributions were reduced by approximately $10.7 million and $5.5
million, respectively.
Additional contributions may be required by Textron to fund debt service
payments on the senior note (see Note 6).
Administrative Expenses
All administrative expenses of the Plan were paid by Textron through September
30, 1992. Effective October 1, 1992, such expenses are paid by the Plan.
3. Unit Valuation
Plan equity is reported on a unit valuation basis except for Fund A, which is
reported on a per share basis. Unit values are determined by dividing the Plan
equity in each fund by the number of fund units outstanding.
At December 31, 1993, the number of units outstanding and the values for each
unit were:
Number of Units Value per unit
Fund
B 63,974,337 2.908502672
C 182,097,452 1.961163783
H 21,370 1.595634070
<page 10>
Textron Savings Plan
Notes to Financial Statements (continued)
4. Benefits
In the event a participant ceases to be an employee or becomes totally disabled
while employed, all of his or her accounts to the extent then vested shall
become distributable. Distributions of more than forty whole shares of Textron
stock shall be in the form of Textron Common Stock. Distributions of forty or
less whole shares of Textron Common Stock shall be in the form of cash unless
the participant or beneficiary expressly requests Textron Common Stock. All
other distributions shall be in the form of cash. An account will be
distributed in a single payment if the value of the account is less than $3,500
when the account first becomes distributable. If the value of the account is
$3,500 or more when the account first becomes distributable, a participant is
not required to take a distribution immediately. However, current federal law
requires Textron to begin to distribute accounts by April 1 of the year
following the year in which the participant reaches age 70 1/2. A participant
is always vested in those portions of his or her account attributable to his or
her own contributions and compensation deferrals and to discretionary
contributions by Textron. Employees of discontinued operations become fully
vested upon approval of the Administrative and Management Committee. The Plan
provides for full vesting of a participant's plan account in the event of his
or her termination of employment, other than for cause, within two years after
a change in control of Textron. Textron's 50% matching contributions vest
based on the length of participation in the Plan as follows:
Ownership
Months of Participation Interest
24 months but less than 36 months 25%
36 months but less than 48 months 50%
48 months but less than 60 months 75%
60 months or more 100%
A separate account is maintained for each participant and is increased monthly
by (a) the participant's contributions and compensation deferrals, (b)
Textron's 50% matching contribution, and annually by the pro rata share of
additional discretionary contributions made by Textron, if any, and (c) the pro
rata share of income.
While Textron has not expressed any intent to terminate the Plan, it is free to
do so at any time. In the event of termination, each participant automatically
becomes vested to the extent of the balance in his or her separate account.
<page 11>
Textron Savings Plan
Notes to Financial Statements (continued)
5. Unallocated Shares
During 1989, coincident with the conversion of the Plan to an employee stock
ownership plan, the Plan purchased from Textron Inc. 3,652,969 shares of
Textron Common Stock with the proceeds of a $100 million bank loan (see Note
6). Such shares of Textron Common Stock are released for allocation to the
accounts of participants as the loan is repaid. The Plan makes loan repayments
with dividends received on unallocated shares and certain other shares and
contributions received from Textron. Unallocated shares are collateral for the
loan. The value of the Textron Common Stock allocated as matching
contributions and dividends will be the average fair market value for the
period the shares are allocated to the participants' accounts, even though the
shares may have been purchased earlier at a different value as part of a block
purchase made by the Trustee. At December 31, 1993, Fund A includes 954,485
shares with a market value of $55,598,772 and a cost of $26,129,013 (1,472,109
shares with a market value of $65,877,000 and a cost of $40,299,000 at December
31, 1992) that remain unallocated.
6. Senior Note
The Plan has a senior note payable to a bank that is guaranteed by Textron.
The note is payable in quarterly installments beginning April 1, 1992, and
bears interest at 85% of either the lower of the Eurodollar rate or a base
rate. Such rate was 2.82% and 2.72% at December 31, 1993, and December 31,
1992, respectively. The note is prepayable in whole or in part on any interest
payment date without penalty.
Required payments during the next five years on the senior note outstanding at
December 31, 1993, are as follows:
(In thousands)
1994 $15,400
1995 14,195
$29,595
<page 12>
Textron Savings Plan
Notes to Financial Statements (continued)
7. Participant Loans
The Textron Capital Accumulation Plan and the Textron Capital Accumulation Plan
for Hourly Employees (collectively, "TCAP") were merged into the Plan effective
May 1, 1989. The TCAP, prior to their merger into the Plan, allowed
participants to receive loans from their pre-tax contribution accounts.
Because the Plan does not provide for participant loans, no new loans were made
to former TCAP participants after April 30, 1989. Existing loans must be
repaid with interest to the participant's pre-tax contribution account. The
loan repayments and related interest will be invested in the investment funds
in the same manner as the optional contributions to the Plan the participant is
then making. If the participant is not then making contributions to the Plan,
the loan payments will be invested in Fund C.
8. Investments
Investments that represent 5% or more of the fair value of the Plan's net
assets available for benefits at December 31, 1993, are as follows:
(In thousands)
Textron Inc. Common Stock* $ 923,438
Equity Index Fund* $ 63,627
* Indicates party-in-interest to the Plan.
Statement of Financial Accounting Standards No. 107, "Disclosures about Fair
Value of Financial Instruments" (FAS 107), requires disclosure of fair value
information about all financial instruments held or owned by a plan except for
certain excluded instruments and instruments for which it is not practicable to
estimate fair value. Note 2 describes the methods and assumptions used in
determining the fair value of all Plan investments except insurance contracts.
The estimated fair value of the Plan's investment in guaranteed insurance
contracts was determined by discounted cash flow analyses using U.S. Treasury
note interest rates with maturities similar to the remaining terms of the
guaranteed insurance contracts. The estimated fair value of such contracts was
approximately $136,738,000.
<page 13>
Textron Savings Plan
Notes to Financial Statements (continued)
9. Income Tax Status
The Internal Revenue Service (IRS) has ruled that the Plan qualifies under
Section 401(a) of the Internal Revenue Code (the Code) and that the related
trust is therefore exempt from federal income taxes under the provision of
Section 501(a) of the Code. In addition, the IRS has ruled that the plan
qualifies as an Employee Stock Ownership Plan under Section 4975(e)(7) of the
Code. Once qualified, the Plan is required to operate in conformity with the
Code to maintain its qualification. Textron is not aware of any course of
action or series of events that have occurred that might adversely affect the
Plan's qualified status.
<page 14>
<TABLE>
<CAPTION>
Supplemental Schedules
Textron Savings Plan
Schedule I--Assets Held for Investment
December 31, 1993
<S> <C> <C> <C>
Number Cost/
of Shares Contract
or Units Value Market
(In Thousands)
Fund A
Textron Inc. Common Stock* 15,853 $ 451,814 $ 923,438
Short-term Investment Fund* 1,432 1,432
Total Fund A $ 453,246 $ 924,870
Fund B
Equity Index Fund* 64 $ 41,466 $ 63,627
Short-term Investment Fund* 10 10
Total Fund B $ 41,476 $ 63,637
Fund C
Guaranteed Insurance Contracts:
Metropolitan Life Ins. Co.
Matures 6/30/98; 4.6% 15,213 $ 15,213 $ 14,888
Prudential Asset Management
Matures 12/31/93; 9.27% 7,764 7,764 7,764
Matures 7/31/95; 5% 2,142 2,142 2,169
Matures 7/31/97; 6.3% 9,809 9,809 10,274
Matures 9/10/96; 4.18% 10,126 10,126 10,029
NY Life Insurance Co.
Matures 7/31/94; 8.95% 5,361 5,361 5,543
Matures 7/31/95; 9.05% 5,378 5,378 5,806
Matures 3/31/97; 7.7% 6,264 6,264 6,838
Matures 7/31/96; 5.65% 6,484 6,484 6,672
Matures 9/9/98; 5.2% 10,158 10,158 10,182
Aetna
Matures 5/1/95; 9.12% 22,043 22,043 23,040
John Hancock Mutual Life Ins. Co.
Matures 1/3/95; 8.14% 11,377 11,377 11,908
Matures 1/2/96; 8.36% 10,174 10,174 11,058
</TABLE>
<page 15>
<TABLE>
<CAPTION>
Textron Savings Plan
Schedule I - Assets Held for Investment (continued)
December 31, 1993
<S> <C> <C> <C>
Number Cost/
of Shares Contract
or Units Value Market
(In Thousands)
Fund C (continued)
Mass Mutual Life Ins. Co.
Matures through 1/31/97; 6.11% 10,068 10,068 10,567
Government Obligations:
Federal National Mortgage Association:
Matures 9/25/01; 6.4% 3,000 2,950 3,062
Matures 9/25/07; 5.8% 5,695 5,698 5,759
Matures 10/25/13; 5.5% 8,000 7,830 8,062
Matures 4/25/17; 6.5% 9,000 8,999 9,217
Federal Home Loan Mortgage Corp.
Matures 2/15/01; 6.65% 2,000 1,968 2,048
Matures 3/15/13; 7.0% 2,000 1,963 2,060
Matures 2/15/17; 5.5% 698 680 698
Matures 12/15/19; 6.5% 3,000 2,892 3,061
Short-term Investment Fund* 15,726 15,726
Total Fund C 165,754 $ 181,067 $ 186,431
Fund H
Short-term Investment Fund* $ 22 $ 22
Total Fund H $ 22 $ 22
Total all funds $ 675,811 $1,174,960
Loans
Loans Receivable (9.5% - 11%) 9 $ 76 $ 76
* Indicates party-in-interest to the Plan.
</TABLE>
<page 16>
<TABLE>
<CAPTION>
Textron Savings Plan
Schedule II--Transactions or Series of Transactions in Excess of 5%
of the Current Value of Plan Assets
Year ended December 31, 1993
<S> <C> <C> <C> <C> <C> <C>
Current Value
Purchase Selling Cost of Transaction
Identity of Party Description Price Price Assets Date Net Gain
Category (iii)--series of transactions in excess of 5% of plan assets
Textron Inc.* Fund A--purchase of 1,423 shares
of Textron Inc. common stock in
334 transactions $ 86,522 $ 86,522 $ 86,522
Bankers Trust Company* Fund A, C, H--purchase of 120,521
units of Bankers Trust Pyramid
Directed Account Cash Fund in
257 transactions 120,521 120,521 120,521
Fund A, C, H--sale of 121,595
units of Bankers Trust Pyramid
Directed Account Cash Fund in 306
transactions 121,595 121,595 121,595
There were no category (i), (ii) or (iv) reportable
transactions during the year.
*Indicates party-in-interest to the Plan.
</TABLE>
EXHIBIT
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registra-
tion Statements (Forms S-8 No. 33-00668 and Form S-8 No. 33-
37139) pertaining to the Textron Savings Plan of Textron Inc.
of our report dated June 3, 1994, with respect to the financial
statements and schedules of the Textron Savings Plan included
in this Annual Report (Form 11-K) for the year ended December
31, 1993.
S/Ernst & Young
New York, New York
June 13, 1994
