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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:
EMPLOYEES' RETIREMENT SAVINGS PLAN
FOR PRECISION STAMPING DIVISION OF
ELCO TEXTRON INC.
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 Employees' Retirement Savings
Plan for Precision Stamping Division of Elco Textron Inc.(formerly known as
Employees' Retirement Savings Plan for the Precision Stamping Division Of Elco
Industries, Inc.) 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........................................12
Reportable Transactions ..........................................13
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Shareholders Employees' Retirement Savings Plan for
the Precision Stamping Division of Elco Industries, Inc.
We have audited the accompanying statements of net assets available for plan
benefits of the Employees' Retirement Savings Plan for the Precision Stamping
Division of Elco Industries, Inc. (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 audits.
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
<TABLE>
<CAPTION>
Employees' Retirement Savings Plan
for the Precision Stamping Division of
Elco Industries, Inc.
Statements of Net Assets Available for Plan Benefits
December 31, 1995
Money High Equity Small
Main Market Income Capitalization Balanced Loan
Fund Fund Fund Fund Fund Fund Total
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<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value:
Parkstone Prime Obligation Money
Market Fund .......................... $ 31,247 $ 97,021 $ 45,541 $ 62,356 $ 12,703 $ - $ 248,868
Parkstone High Income Equity Fund . - - 346,673 - - - 346,673
Parkstone Small Capitalization Fund - - - 574,846 - - 574,846
Parkstone Balanced Fund ........... - - - - 201,300 - 201,300
Loans to participants ............. - - - - - 28,302 28,302
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Total investments .................... 31,247 97,021 392,214 637,202 214,003 28,302 1,399,989
Receivables:
Participant contributions ......... - 1,661 6,011 8,416 3,320 - 19,408
Company contributions ............. - 375 1,084 967 667 - 3,093
Accrued income .................... 165 420 183 237 80 - 1,085
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Total receivables .................... 165 2,456 7,278 9,620 4,067 - 23,586
Due (to) from other funds ............ (31,412) 4,584 649 (24,770) 50,949 - -
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Net assets available for
plan benefits ..................... $ - $ 104,061 $ 400,141 $ 622,052 $ 269,019 $ 28,302 $1,423,575
Cash ................................ $ - $ 815 $ 1,731 $ 2,317 $ 1,153 $ - $ 6,016
Investments, at fair value:
Parkstone Prime Obligation Money
Market Fund .......................... 10,480 75,078 2,281 2,929 1,431 - 92,199
Parkstone High Income Equity Fund . - - 218,821 - - - 218,821
Parkstone Small Capitalization Fund - - - 340,611 - - 340,611
Parkstone Balanced Fund ........... - - - - 185,367 - 185,367
Loans to participants ............. - - - - - 26,791 26,791
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Total investments .................... 10,480 75,078 221,102 343,540 186,798 26,791 863,789
Receivables:
Participant contributions ......... - 391 1,256 1,631 809 - 4,087
Company contributions ............. - 235 653 738 463 - 2,089
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Total receivables .................... - 626 1,909 2,369 1,272 - 6,176
Cash overdraft ....................... (5,658) - - - - - (5,658)
Due (to) from other funds ............ (4,822) 7,474 3,794 4,087 (10,533) - -
Accrued fees ......................... - (22) (22) (22) (22) - (88)
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Net assets available for plan benefit $ - $ 83,971 $ 228,514 $ 352,291 $ 178,668 $ 26,791 $ 870,235
</TABLE>
<TABLE>
<CAPTION>
Employees' Retirement Savings Plan
for the Precision Stamping Division of
Elco Industries, Inc.
Statement of Changes in Net Assets Available for Plan Benefits
Year Ended December 31, 1995
Money High Equity Small
Main Market Income Capitalization Balanced Loan
Fund Fund Fund Fund Fund Fund Total
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<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Net realized and unrealized
appreciation in fair value of
investments ................... $ - $ - $ 54,850 $ 73,513 $ 27,504 $ - $ 155,867
Interest and dividend income - 4,844 17,519 70,219 14,855 2,525 109,962
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Investment income ............. - 4,844 72,369 143,732 42,359 2,525 265,829
Contributions:
Participants ............... - 26,968 92,664 124,085 51,453 - 295,170
Company .................... - 4,296 14,250 18,547 8,500 - 45,593
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Total contributions ........... - 31,264 106,914 142,632 59,953 - 340,763
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Total additions ............... - 36,108 179,283 286,364 102,312 2,525 606,592
Benefit and withdrawal payments - 54 2,925 5,960 41,068 - 50,007
Administrative expenses ....... - 467 858 1,195 725 - 3,245
Transfers between funds ....... - 15,497 3,873 9,448 (29,832) 1,014 -
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Net deductions ................ - 16,018 7,656 16,603 11,961 1,014 53,252
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Net increase in net assets available
for plan benefits .......... - 20,090 171,627 269,761 90,351 1,511 553,340
Net assets available for plan benefits,
beginning of year .......... - 83,971 228,514 352,291 178,668 26,791 870,235
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Net assets available for plan benefits,
end of year ................ $ - $ 104,061 $ 400,141 $ 622,052 $ 269,019 $ 28,302 $1,423,575
</TABLE>
Employees' Retirement Savings Plan
for the Precision Stamping Division of
Elco Industries, Inc
Notes to Financial Statements
December 31, 1995
1. Description of the Plan
The following brief description of the Employees' Retirement Savings Plan for
the Precision Stamping Division of Elco Industries, Inc. (the Plan) is
provided for general information purposes only. Participants should refer to
the Summary Plan Description for more complete information.
General
The Plan is a defined contribution plan formed to provide a retirement savings
plan to employees of the Precision Stamping Division of Elco Textron Inc.
(Elco). Elco was purchased in October 1995 and changed its name from Elco
Industries, Inc. to Elco Textron Inc. The Plan was continued in its
pre-acquisition form. The Plan provides for participant tax-deferred savings
under Section 401(k) of the Internal Revenue (IRC) and is subject to the
provisions of the Department of Labor's Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Income Security Act of 1974
(ERISA). The Plan is administered by an administrative committee consisting of
not fewer than three members selected by the Board of Directors of Elco.
Eligibility
All employees of the Precision Stamping Division of Elco are eligible to
participate in the Plan after completing one year of service, as defined in
the Plan.
Vesting and Forfeitures
Participants are always fully vested in the value of their contributions and
related allocation of trust income or loss.
Participants become fully vested in the value of contributions made by Elco
and related allocations of trust income or loss after five years of credited
service.
Any forfeitures are allocated to remaining Plan participants.
Employees' Retirement Savings Plan
for the Precision Stamping Division of
Elco Industries, Inc.
Notes to Financial Statements (continued)
1. Description of the Plan (continued)
Contributions
Active participants can make pre-tax contributions based on a percentage of
their compensation, subject to various percentage and dollar limitations
($9,240 for 1995).
Effective January 1, 1994, Elco's Board of Directors amended the Plan to
provide an employer matching contribution on the portion of the participant's
pre-tax contribution, as defined in the plan documents (currently between 15%
and 25% on the participant's first 4% deferral). The Plan also provides for
discretionary company contributions, none of which were made in 1995.
All contributions are funded currently with the trustee.
Investment Options
Participants are allowed to direct contributions to one or a combination of
the following investment funds:
Money Market Fund
High Equity Income Fund
Small Capitalization Fund
Balanced Fund
Allocations
Semiannually, the allocation of trust income or loss is made in the same ratio
that a participant's account bears to the sum of the balances of all
participants' accounts, taking into consideration the dates on which
additional contributions are made.
Distribution of Plan Benefits
Distribution of the vested value of a participant's account is made by the
trustee within sixty (60) days after the end of the Plan year in which occurs
a participants' normal retirement date, early retirement date, late retirement
date, disability retirement date, severance date or death.
The vested value of such distribution includes any pre-tax contributions made
to the participant's account during the Plan year and is determined subsequent
to the inclusion of his allocable share of trust income or loss.
Custody of Assets
In accordance with the terms of the trust agreement, the trustee has custody
of all trust assets.
Tax Status
The Plan has received a determination letter, dated April 6, 1995, from the
IRS indicating that it meets the requirements of Section 401(a) of the IRC and
is, therefore, not subject to tax under present income tax law. Once
qualified, the Plan is required to operate in conformity with the IRC to
maintain its qualification. The plan administrator 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. Summary of Significant Accounting Policies
Certain services are provided to the Plan by Elco without charge.
Participant loans are stated at their outstanding balances, which approximate
fair value.
The fair value of investments in the mutual and money market funds is
determined by reference to published market or redemption prices as of the
last business day of the Plan year.
The preparation of financial statements in conformity 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.
3. Termination Priorities
Although it has not expressed any intent to do so, Elco has the right under
the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of termination,
participants become 100% vested in their accounts.
4. Investments
During 1995, Plan investments (including investments bought, sold, as well as
held during the year) appreciated in fair value as follows:
Parkstone High Income Equity Fund $ 54,850
Parkstone Small Capitalization Fund 73,513
Parkstone Balanced Fund 27,504
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$155,867
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The fair values of investments that exceed 5% of the net assets available for
plan benefits are as follows:
December 31
1995 1994
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Parkstone Prime Obligation Money Market Fund $248,868 $ 92,199
Parkstone High Income Equity Fund 346,673 218,821
Parkstone Small Capitalization Fund 574,846 340,611
Parkstone Balanced Fund 201,300 185,367
5. Related-Party Transactions
The Plan had the following related-party transactions with funds administered
by an affiliate of the Plan's trustee for the year ended December 31, 1995:
Purchases Sales
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Parkstone Prime Obligation Money
Market Fund $817,601 $660,932
Parkstone Mutual Funds 304,934 82,781
Employees' Retirement Savings Plan
for the Precision Stamping Division of
Elco Industries, Inc.
Assets Held for Investment
December 31, 1995
Number
of Shares
or Face
Amount Cost Current Value
---------- ---------- ----------------
Parkstone Prime Obligation Money
Market Fund 248,868 $ 248,868 $ 248,868
Mutual funds:
Parkstone High Income Equity Fund 21,721 303,509 346,673
Parkstone Small Capitalization Fund 21,346 459,620 574,846
Parkstone Balanced Fund 16,053 177,591 201,300
Participant loans - bearing interest
rates of 7.25% to 10.00% per annum,
with various maturity dates 28,302 28,302 28,302
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$1,217,890 $1,399,989
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Employees' Retirement Savings Plan
for the Precision Stamping Division of
Elco Industries, Inc.
Reportable Transactions
Year ended December 31, 1995
Proceeds
from
Cost of Sales or
Purchases Redemptions
Number of Transactions During the During the Realized
Description Purchases Sales Year Year Gain
(Loss)
- ------------------------------------------------------------------------------
Category (iii) - Series of transactions in excess of 5 percent of plan assets
Parkstone Prime
Obligation
Money Market Fund 272 151 $817,601 $660,932 $ -
Parkstone High
Income Equity
Fund 26 - 73,002 - -
Parkstone Small
Capitalization
Fund 12 - 160,722 - -
Parkstone Balanced
Fund 27 5 71,210 82,781 7,942
There were no Category (ii) or (iv) reportable transactions. Category (i)
reportable transactions are included in Category (iii) reportable 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.
EMPLOYEES' RETIREMENT SAVINGS PLAN
FOR PRECISION STAMPING DIVISION OF
ELCO TEXTRON INC.
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
