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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 11-K
(Mark one)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from _________ to __________
Commission file number 001-05480
A. Full title of the plan and the address of the plan,
if different from that of the issuer named below:
ELCO THERMOPLASTICS INC.
PROFIT SHARING PLAN
1111 Samuelson Road
P.O. Box 7009
Rockford, Illinois 61125
B. Name of issuer of securities held pursuant to the plan
and address of its principal executive office:
TEXTRON INC.
40 Westminster Street
Providence, Rhode Island 02903
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REQUIRED INFORMATION
The following Financial Statements for the Elco Thermoplastics Inc.
Profit Sharing Plan (formerly known as Thermoplastics, Inc. Profit
Sharing Plan) are furnished herein:
Index
Report of Independent Auditors....................................... 3
Financial Statements
Statements of Net Assets Available for Plan Benefits............. 4
Statement of Changes in Net Assets Available for Plan Benefits... 6
Notes to Financial Statements.................................... 7
Supplemental Schedules
Assets Held for Investment...................................... 11
Reportable Transactions......................................... 12
REPORT OF INDEPENDENT AUDITORS
The Plan Administrator
Thermoplastics, Inc. Profit Sharing Plan
We have audited the accompanying statements of net assets available for
plan benefits of the Thermoplastics, Inc. Profit Sharing Plan (the Plan) as
of December 31, 1995 and 1994, and the related statements of changes in net
assets available for benefits for the year ended December 31, 1995. 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 audit.
We conducted our audits in accordance with generally accepted auditing
standards. Those 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, 1995 and 1994, and the changes in net assets available for
benefits for the year ended December 31, 1995, 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, 1995, and
reportable transactions 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
Fund Information in the statement of net assets available for benefits and
the statements of changes in net assets available for benefits is presented
for purposes of additional analysis rather than to present the net assets
available for benefits of each fund. The supplemental schedules and Fund
Information have been subjected to the auditing procedures applied in our
audits of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial
statements taken as a whole.
Ernst & Young LLP
Milwaukee, Wisconsin
May 31, 1996
Thermoplastics, Inc. Profit Sharing Plan
Statements of Net Assets Available for Plan Benefits
December 31, 1995
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Money
Market Balanced Equity Loan
Fund Fund Fund Account Total
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Assets
Investments, at fair value:
Parkstone Equity Fund $ - $239,802 $498,461 $ - $738,263
Parkstone Bond Fund - 345,610 - - 345,610
Parkstone Small
Capitalization Value Fund - 59,611 - - 59,611
Parkstone Government Money
Market Fund 410,473 23,284 6,265 13,105 453,127
Participant loans - - - 7,247 7,247
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Total investments 410,473 668,307 504,726 20,352 1,603,858
Receivables:
Employer contributions 95,105 91,055 64,390 - 250,550
Employee contributions 2,142 2,468 1,995 - 6,605
Accrued income 1,781 93 21 39 1,934
Other interfund receivable
(payable) 3,298 2,989 1,417 (7,704) -
Other - - - 99 99
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Total receivables 102,326 96,605 67,823 (7,566) 259,188
Cash - - - - -
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Total assets 512,799 764,912 572,549 12,786 1,863,046
Liabilities -
Other - - - 5,539 5,539
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Net assets available
for plan benefits $512,799 $764,912 $572,549 $ 7,247 $1,857,507
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Thermoplastics, Inc. Profit Sharing Plan
Statements of Net Assets Available for Plan Benefits
December 31, 1994
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Money
Market Balanced Equity Loan
Fund Fund Fund Account Total
- ------------------------------------------------------------------------------
Assets
Investments, at fair
value:
Parkstone Equity Fund $ - $145,295 $324,095 $ - $ 469,390
Parkstone Bond Fund - 209,807 - - 209,807
Parkstone Small
Capitalization
Value Fund - 53,150 - - 53,150
Parkstone Government
Money Market Fund 340,213 13,965 3,940 1,454 359,572
Participant loans - - - 2,741 2,741
- -----------------------------------------------------------------------------
Total investments 340,213 422,217 328,035 4,195 1,094,660
Receivables:
Employer contributions 36,323 43,593 28,850 - 108,766
Employee contributions 1,021 1,773 1,816 - 4,610
Accrued income - - - - -
Other interfund
receivable (payable) 202 900 382 (1,484) -
Other - - - - -
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Total receivables 37,546 46,266 31,048 (1,484) 113,376
Cash 1,981 1,103 1,058 30 4,172
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Total assets $379,740 $469,586 $360,141 $2,741 $1,212,208
Liabilities -
Other - - - - -
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Net assets available
for plan benefits $379,740 $469,586 $360,141 $ 2,741 $1,212,208
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Thermoplastics, Inc. Profit Sharing Plan
Statement of Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1995
Fund Information
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Money
Market Balanced Equity Holding
Fund Fund Fund Account Total
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Additions:
Investment income:
Interest and dividends $ 18,934 $ 35,754 $ 17,624 $ 906 $ 73,218
Net appreciation in
fair value of
investments - 84,603 92,958 - 177,561
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18,934 120,357 110,582 906 250,779
Contributions:
Employer 116,216 116,682 82,554 - 315,452
Employee 59,334 71,523 58,768 - 189,625
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175,550 188,205 141,322 - 505,077
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Total additions 194,484 308,562 251,904 906 755,856
Deductions -
Distributions to
participants or
their beneficiaries 19,562 61,136 29,859 - 110,557
Transfers, net (41,863) 47,900 (9,637) 3,600 -
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Net increase 133,059 295,326 212,408 4,506 645,299
Net assets available for
plan benefits
at beginning of year 379,740 469,586 360,141 2,741 1,212,208
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Net assets available for
plan benefits
at end of year $512,799 $764,912 $572,549 $7,247 $1,857,507
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Thermoplastics, Inc. Profit Sharing Plan
Notes to Financial Statements
December 31, 1995
1. Description of the Plan
The following brief description of the Thermoplastics, Inc. Profit Sharing
Plan (the Plan) is provided for general information only. Participants
should refer to the Summary Plan Description for more complete information.
General
The Plan is a defined contribution plan formed to provide profit-sharing
benefits to employees of Elco Thermoplastics Inc. (the Company), a
subsidiary of Elco Textron Inc., and to provide for participant
tax-deferred savings under Section 401(k) of the Internal Revenue Code
(IRC). All full-time employees of the Company with one year of service are
eligible to participate in the Plan. Participants have a 100% vested
interest in their account balances. The Plan allows participants to borrow
funds from their individual accounts under terms specified in the Plan.
Contributions
Active participants may make contributions as defined in the Plan. Such
contributions may be in the form of Employee Deferral Contributions (as a
percentage of the participant's compensation) or Nondeductible Employee
Contributions. The Company will contribute an amount equal to 50% of the
Employee Deferral Contributions related to the first 3% of earnings.
Additional Company contributions may be made at the sole discretion of the
Board of Directors.
Participant Loans
Participants may borrow an amount that does not exceed the lesser of
$50,000 or one-half the nonforfeitable value of their account balance.
Loans must be repaid within five years and bear interest at the current
prime rate.
Investment Option
The Plan allows participants to direct their contributions into one or a
combination of three different fund types: the Money Market Fund (fixed
income investments), the Balanced Fund (fixed income and equity
investments) or the Equity Fund (equity investments). The Company matching
contribution also is invested in the funds designated by the participant.
Allocations
Employee contributions and the Company's matching contribution are
allocated to each respective participant account. The additional Company
contribution, if any, is allocated to participant accounts based on
participant compensation, as defined by the Plan, in relation to the total
of such amounts for all participants.
Earnings within each fund are allocated as of June 30 and December 31 in
the proportion that each participant's beginning account balance (restated
for transfers), plus one-half of employee contributions made during the
six-month period, bears to the total of such amounts for all participants.
Benefit Payments
The benefit to which a participant is entitled is the benefit that can be
provided from the participant's account balance. On termination of service,
a participant may elect to receive either a lump-sum amount equal to the
participant's account balance, or annual installments over a period of time
as defined by the Plan.
Tax Status
The Plan was amended and restated in its entirety on June 28, 1994,
effective as of July 1, 1989. The restated Plan has received a favorable
tax determination letter from the Internal Revenue Service (IRS) dated June
12, 1995 that the Plan qualifies under Section 401(a) of the IRC and,
therefore, is not subject to tax under present income tax law. Once
qualified, a plan is required to operate in conformity with the IRC to
maintain its qualification. The Company is not aware of any course of
action or series of events that have occurred that might adversely affect
the Plan's qualified status.
2. Significant Accounting Policies
Valuation of Investments
The mutual funds are carried at fair value as determined from quoted market
values. The Government Money Market Fund and participant loans are reported
at cost and unpaid principal, respectively, which approximate fair value.
Use of Estimates
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results could differ from those estimates.
Administrative Expenses
Certain services are provided to the Plan without charge, and
administrative expenses are paid by the Company.
3. Termination Priorities
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan by the action of its Board of Directors, subject to the
provisions of the Employee Retirement Income Security Act of 1974.
4. Investments
The Plan's investments are held in a bank-administered trust fund. The
following table presents the estimated fair values of individual
investments that are 5% or more of the Plan's net assets at December 31,
1995 and 1994.
December 31
1995 1994
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Parkstone Government Money Market Fund $453,127 $359,572
Parkstone Equity Fund 738,263 469,390
Parkstone Bond Fund 345,610 209,807
4. Investments (continued)
During the year ended December 31, 1995, the Plan's investments (including
investments bought, sold, and held during the year) appreciated in fair
value by $177,561, as follows:
Investments at fair value as determined by quoted market prices:
Parkstone Equity Fund $138,872
Parkstone Bond Fund 28,558
Parkstone Small Capitalization Fund 10,131
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$177,561
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5. Inactive Accounts
Included in net assets available for Plan benefits at December 31, 1995 and
1994 is $66,184 and $48,990, respectively, which relates to account
balances for persons who have withdrawn from the Plan but have not yet been
paid. These amounts are presented as benefit claims payable on Form 5500.
6. Related-Party Transactions
During the year ended December 31, 1995, the Plan had the following
related-party transactions with funds administered by an affiliate of the
Plan's trustee:
Purchases Sales
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Parkstone Money Market Funds $754,397 $660,842
Parkstone mutual funds 260,152 26,576
Thermoplastics, Inc. Profit Sharing Plan
Assets Held for Investment
December 31, 1995
Description of
Investment, Rate of Current
Interest Cost Value
Identity of Issue, Borrower,
Lessor, or Similar Party
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Parkstone Government Money
Market Fund Money Market Fund $ 453,127 $ 453,127
Parkstone Equity Fund Mutual Fund 618,063 738,263
Parkstone Bond Fund Mutual Fund 336,949 345,610
Parkstone Small
Capitalization Value
Fund Mutual Fund 45,004 59,611
Participant loans 7.33% to 9.50%
per annum, with
varying maturity
dates 7,247 7,247
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$1,460,390 $1,603,858
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Thermoplastics, Inc. Profit Sharing Plan
Reportable Transactions
Year ended December 31, 1995
Proceeds From
Sales or Real-
Number of Cost of Redemptions ized
Transactions Purchases During Gain
Description Purchases Sales During the Year the Year (Loss)
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Category (iii) - Series of transactions in excess of 5 percent of plan assets
Parkstone Government
Money Market Fund 242 110 $754,397 $660,842 $ -
Parkstone Equity Fund 18 2 132,781 2,781 511
Parkstone Bond Fund 21 - 107,245 - -
There were no Category (ii) or (iv) reportable transactions. Category (i)
reportable transactions are included in Category (iii) transactions above.
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange
Act of 1934, the trustees (or other persons who administer the employee
benefit plan) have duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
ELCO THERMOPLASTICS INC. PROFIT
SHARING PLAN
ELCO TEXTRON INC., Plan Administrator
DATE June 28, 1996 By /s/ Kenneth L Heal
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Name: Kenneth L. Heal
Title: Secretary/Treasurer
