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, 1995
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 for each of the two years ended
December 31, 1995 and 1994 Statement of Changes in Net
Assets Available for Benefits for each of the two years
ended December 31, 1995 and 1994
Notes to financial statements
Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment
Purposes
Item 27d - Schedule of Reportable Transactions
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/Michael D. Cahn
Attorney-in-fact
Date: June 27, 1996
Financial Statements
and Supplemental Schedules
Textron Savings Plan
Years ended December 31, 1995 and 1994
with Report of Independent Auditors
<PAGE>
Textron Savings Plan
Financial Statements
and Supplemental Schedules
Years ended December 31, 1995 and 1994
Contents
Report of Independent Auditors 1
Audited Financial Statements
Statement of Net Assets Available for Benefits, December 31, 1995 2
Statement of Net Assets Available for Benefits, December 31, 1994 3
Statement of Changes in Net Assets Available for Benefits,
December 31, 1995 4
Statement of Changes in Net Assets Available for Benefits,
December 31, 1994 5
Notes to Financial Statements 6
Supplemental Schedules
Item 27a - Schedule of Assets Held for Investment Purposes 15
Item 27d - Schedule of Reportable Transactions 17
<PAGE>
Report of Independent Auditors
The Benefits Committee
Textron Inc.
We have audited the accompanying statements of net assets
available for benefits of the Textron Savings Plan (the
Plan) as of December 31, 1995 and 1994, 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. 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 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, 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.
/s/ERNST & YOUNG LLP
New York, New York
May 10, 1996
<PAGE>1
<TABLE>
Textron Savings Plan
Statement of Net Assets Available for Benefits
December 31, 1995
<S> <C> <C> <C> <C> <C> <C>
Fund Fund Fund Fund Loan
A B C H Fund Total
Assets (In Thousands)
Investments, at fair value
(Notes 2,5 and 8):
Textron Inc. Common Stock $941,263 $ - $ - $ - $ - $ 941,263
U. S. Government securities - - 11,858 - - 11,858
Common/collective trust funds 2,533 94,755 6,254 24 - 103,566
Participant notes receivable - - - - 52 52
943,796 94,755 18,112 24 52 1,056,739
Insurance contracts, at
contract value (Notes 2 and 8) - - 150,302 - - 150,302
Total investments 943,796 94,755 168,414 24 52 1,207,041
Receivables:
Investment income 5,432 1 880 - - 6,313
Interfund 36 - 36 - - 72
Other 31 66 27 - - 124
Total receivables 5,499 67 943 - - 6,509
Total assets 949,295 94,822 169,357 24 52 1,213,550
Liabilities
Payables:
Contributions 1,294 251 295 - - 1,840
Investments purchased 826 - 787 - - 1,613
Interfund 2 48 22 - - 72
Total liabilities 2,122 299 1,104 - - 3,525
Net assets available for
benefits $947,173 $94,523 $168,523 $24 $52 $1,210,025
See notes to financial statements.
</TABLE>
<PAGE>2
<TABLE>
Textron Savings Plan
Statement of Net Assets Available for Benefits
December 31, 1994
<S> <C> <C> <C> <C> <C> <C>
Fund Fund Fund Fund Loan
A B C H Fund Total
Assets (In Thousands)
Investments, at fair value
(Notes 2,5 and 8):
Textron Inc. Common Stock $772,465 $ - $ - $ - $ - $ 772,465
U S. Government securities - - 18,411 - - 18,411
Common/collective trust
funds 1,875 67,711 11,437 65 - 81,088
Participant notes
receivable - - - - 72 72
774,340 67,711 29,848 65 72 872,036
Insurance contracts, at
contract value
(Notes 2 and 8) - - 146,995 - - 146,995
Total investments 774,340 67,711 176,843 65 72 1,019,031
Receivables:
Investment income 5,394 - 162 - - 5,556
Interfund - - 179 - - 179
Other 57 25 - - - 82
Total receivables 5,451 25 341 - - 5,817
Total assets 779,791 67,736 177,184 65 72 1,024,848
Liabilities
Payables:
Contributions 2,496 310 367 - - 3,173
Interest 160 - - - - 160
Investments purchased 2,548 - - - - 2,548
Interfund 164 15 - - - 179
5,368 325 367 - - 6,060
Senior note (Note 6) 14,195 - - - - 14,195
Total liabilities 19,563 325 367 - - 20,255
Net assets available for
benefits $760,228 $67,411 $176,817 $65 $72 $1,004,593
See notes to financial statements.
</TABLE>
<PAGE>3
<TABLE>
Textron Savings Plan
Statement of Changes in Net Assets Available for Benefits
December 31, 1995
<S> <C> <C> <C> <C> <C> <C>
Fund Fund Fund Fund Loan
A B C H Fund Total
(In Thousands)
Additions to net assets
attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments
(Note 8) $246,117 $25,360 $ 792 $ - $ - $ 272,269
Dividends 22,740 - - - - 22,740
Interest 97 35 10,749 2 - 10,883
268,954 25,395 11,541 2 0 305,892
Contributions, net:
Participants 49,349 9,565 8,437 - - 67,351
Employer 17,295 - - - - 17,295
66,644 9,565 8,437 - - 84,646
Total additions 335,598 34,960 19,978 2 - 390,538
Deductions from net assets
attributed to:
Benefits paid to participants (143,238) (9,736) (29,394) (43) (20) (182,431)
Forfeitures (1,209) - - - - (1,209)
Interst expense (262) - - - - (262)
Administrative expenses (914) (105) (185) - - (1,204)
Total deductions (145,623) (9,841) (29,579) (43) (20) (185,106)
Net increase (decrease) prior to
interfund transfers 189,975 25,119 (9,601) (41) (20) 205,432
Interfund transfers, net (3,030) 1,993 1,037 - - -
Net increase (decrease) 186,945 27,112 (8,564) (41) (20) 205,432
Net assets available for benefits:
Beginning of year 760,228 67,411 176,817 65 72 1,004,593
End of year $ 947,173 $ 94,523 $ 168,253 $ 24 $ 52 $1,210,025
See notes to financial statements.
</TABLE>
<PAGE>4
<TABLE>
Textron Savings Plan
Statement of Changes in Net Assets Available for Benefits
December 31, 1994
<S> <C> <C> <C> <C> <C> <C>
Fund Fund Fund Fund Loan
A B C H Fund Total
(In Thousands)
Additions to net assets
attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of invesetments
(Note 8) $(121,615) $ 1,032 $ (1,378) $ - $ - $ (121,961)
Dividends 22,565 - - - - 22,565
Interest 57 - 11,110 2 6 11,175
(98,993) 1,032 9,732 2 6 (88,221)
Contributions, net:
Participants 51,732 9,999 10,158 - - 71,889
Employer 20,874 - - - - 20,874
72,606 9,999 10,158 - - 92,763
Total additions (26,387) 11,031 19,890 2 6 4,542
Deductions from net assets
attributed to:
Benefits paid to participants (107,390) (7,234) (25,898) - - (140,522)
Forfeitures (2,178) - - - - (2,178)
Interest expense (699) - - - - (699)
Administrative expenses (657) (94) (134) - - (885)
Total deductions (110,924) (7,328) (26,032) - - (144,284)
Net increase (decrease) prior
to interfund transfers (137,311) 3,703 (6,142) 2 6 (139,742)
Interfund transfers, net (625) (267) 862 41 (11) -
Net increase (decrease) (137,936) 3,436 (5,280) 43 (5) (139,742)
Net assets available for benefits:
Beginning of year 898,164 63,975 182,097 22 77 1,144,335
End of year $ 760,228 $67,411 $176,817 $ 65 $ 72 $1,004,593
See notes to financial statements.
</TABLE>
<PAGE>5
Textron Savings Plan
Notes to Financial Statements (continued)
Textron Savings Plan
Notes to Financial Statements
December 31, 1995 and 1994
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. Summary of Significant Accounting Policies
General
The Plan is administered under the terms of a Trust Agreement,
dated May 1, 1989, with Bankers Trust Company (the "Trustee").
Investment Options
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 invests primarily in Textron Common Stock that is either
purchased by the Trustee or contributed by Textron.
Fund B invests primarily in the BT Pyramid Large Capitalization
Equity Index Fund which is principally a portfolio of common
stocks constructed and maintained with the objective of providing
investment results which approximate the overall performance of
the common stocks included in the Standard & Poor's Composite
Index of 500 stocks.
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 Textron Inc. or an Investment Manager designated by
Textron.
<PAGE>6
Textron Savings Plan
Notes to Financial Statements (continued)
2. Significant Accounting Policies (continued)
Fund H is invested in the BT Pyramid Directed Account Cash Fund,
which is a portfolio of short-term instruments, primarily demand
master notes, certificates of deposit, and commercial paper.
At the discretion of the Trustee or other Investment Manager, a
portion of the assets of Fund A, B, C, or H may be maintained in
cash or invested in short-term securities (BT Pyramid Directed
Account Cash Fund and BT Pyramid Discretionary Account Cash
Fund).
At December 31, 1995, there were approximately 30,200
participants in Fund A, 11,600 in Fund B, 14,600 in Fund C and 2
in Fund H.
Investment Valuation and Income Recognition
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 BT Pyramid Large Capitalization Equity
Index Fund and BT Pyramid Equity Index Fund are valued at the
redemption price established by the fund's Trustee which is
generally based on the fair value of the underlying assets. The
BT Pyramid Directed Account Cash Fund and BT Pyramid
Discretionary Account Cash Fund include pooled temporary
investments and are stated at cost which approximates market
value. Insurance contracts are valued at contract value which
represents contributions made, plus accrued interest, less funds
used to pay employee withdrawals and administrative expenses.
Participant notes receivable are valued at cost which
approximates fair value.
Purchases and sales of investments are recorded on a trade-date
basis. Interest income is recorded on the accrual basis.
Dividends are recorded on the ex-dividend date. Dividends,
interest and other distributions received by the Plan are
reinvested in the fund in which earned.
<PAGE> 7
Textron Savings Plan
Notes to Financial Statements (continued)
2. Significant Accounting Policies (continued)
Fair Value of Insurance Contracts
The fair values presented in Note 8 are estimates of the fair
value 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 an calendar year.
For the years ending December 31, 1995 and 1994, employee
contributions included rollovers of approximately $1.8 million
and $.9 million, respectively.
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, 1995 and 1994, employer contributions were reduced by
approximately $23.2 million and $22.8 million, respectively.
Additional contributions required by Textron to fund debt service
payments on the senior note amounted to $8.3 million in 1995 and
$7.7 million in 1994 (see Note 6). No such contributions will be
required in the future as the senior note was paid in full in
1995.
<PAGE> 8
Textron Savings Plan
Notes to Financial Statements (continued)
2. Significant Accounting Policies (continued)
Administrative Expenses
All administrative expenses are paid from Plan assets.
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, the number of units outstanding and the values
for each unit were:
1995 1994
Fund Number of Value per Number of Value per
Units Unit Units Unit
B 22,949,673 4.048529 22,676,686 2.972701
C 74,169,927 2.211828 88,759,885 2.110999
H 13,393 1.778853 39,095 1.662617
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 that 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
Textron 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.
<PAGE> 9
Textron Savings Plan
Notes to Financial Statements (continued)
4. Benefits (continued)
Textron's 50% matching contributions vest based on the length of
participation in the Plan as follows:
Months of Participation Ownership 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.
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 were released for allocation to the accounts of
participants as the loan was repaid. The Plan made loan
repayments with dividends received on unallocated shares and
certain other shares and contributions received from Textron.
Unallocated shares were collateral for the loan. The value of
the Textron Common Stock allocated as matching contributions and
dividends is the average
<PAGE> 10
Textron Savings Plan
Notes to Financial Statements (continued)
5. Unallocated Shares (continued)
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, 1995 all shares
were allocated; at December 31, 1994, Fund A included 433,754
shares with a market value of $21,850,353 and a cost of
$11,873,990 that were unallocated.
6. Senior Note
The Plan had a senior note payable to a bank that was guaranteed
by Textron which related to a $100 million term loan agreement
entered into during 1989. The agreement provided for the note to
be repaid over a seven-year period in quarterly installments
beginning April 3, 1990. The maturity date of the note was
subsequently changed to October 3, 1995. The note bore interest
at 85% of either the lower of the Eurodollar rate or a base rate.
Such rate was 4.50% at December 31, 1994. The note was paid in
full October 3, 1995.
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 repayments will be invested in Fund C.
<PAGE> 11
Textron Savings Plan
Notes to Financial Statements (continued)
8. Investments
The fair value of individual investments that represent 5% or
more of the fair value of the Plan's net assets is as follows:
December 31
1995 1994
(Share and dollar amounts in
thousands)
Investments at fair value as determined
by quoted market price
Textron Inc. Common Stock*, 13,945 and
15,334 shares, respectively $ 941,263 $772,465
Investments at estimated fair value
BT Pyramid Capitalization Equity Index
Fund*, 69 and 67 shares, respectively 94,755 67,711
Total Investments at fair value $1,036,018 $840,176
*Indicates party-in-interest to the Plan.
During 1995 and 1994, the Plan's investments (including
investments bought, sold, and held during the year) appreciated
(depreciated) in fair value by $272,269,000 and $(121,961,000) as
follows:
December 31
1995 1994
(In thousands)
Investments at fair value as determined
by quoted market price
Textron Inc. Common Stock $246,117 $(121,615)
U.S. Government Securities 792 (1,378)
Net change in fair value 246,909 (122,993)
Investments at estimated fair value
Common/collective trust funds 25,360 1,032
Net change in fair value $272,269 $(121,961)
<PAGE> 12
Textron Savings Plan
Notes to Financial Statements (continued)
8. Investments (continued)
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 $155,000,000 and $143,000,000 at December 31, 1995
and 1994, respectively.
9. Differences between Financial Statements and Form 5500
The following is a reconciliation of net assets available for
benefits per the financial statements to the Form 5500:
December 31,
1995 1994
(In thousands)
Net assets available for benefits per
financial statements $1,210,026 $1,004,593
Amounts allocated to withdrawn participants (36,154) (16,153)
Net assets available for benefits per
Form 5500 $1,173,872 $ 988,440
The following is a reconciliation of benefits paid to
participants per the financial statements to the Form 5500:
December 31,
1995 1994
(In thousands)
Benefits paid to participants per the
financial statements $182,431 $140,522
Add: Amounts allocated on Form 5500 to
withdrawn participants at December 31, 1995 36,154 16,153
Less: Amounts allocated on Form 5500 to
withdrawn participants at December 31, 1994 (16,153) (12,081)
Benefits paid to participants per Form 5500 $202,432 $144,594
<PAGE> 13
Textron Savings Plan
Notes to Financial Statements (continued)
9. Differences between Financial Statements and Form 5500 (continued)
Amounts allocated to withdrawn participants are recorded on the
Form 5500 for benefit claims that have been processed and
approved for payment prior to year end but not yet paid as of
that date.
10. Income Tax Status
The Internal Revenue Service has determined and informed the
Company by a letter dated October 3, 1995, that the Plan is
qualified and the trust established under the Plan is tax-exempt,
under the appropriate sections of the Code. The Plan has been
amended since receiving the determination letter. However, the
Plan administrator and the Plan's tax counsel believe that the
Plan is currently designed and being operated in compliance with
the applicable requirements of the Code. Therefore, they believe
that the Plan was qualified and the related trust was tax-exempt
as of the financial statement date.
<PAGE> 14
Supplemental Schedules
Textron Savings Plan
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1995
Number of Cost/
Shares or Contract Fair
Units Value Value
(In Thousands)
Fund A
Textron Inc. Common Stock * 13,945 $459,143 $941,263
BT Pyramid Directed Account Cash Fund* 2,533 2,533 2,533
Total Fund A $461,676 $943,796
Fund B
BT Pyramid Large Capitalization Equity
Index Fund* 69 $ 70,210 $ 94,755
Total Fund B $ 70,210 $ 94,755
Fund C
Insurance Contracts:
Metropolitan Life Ins. Co.
Matures through 6/30/98; 4.67% 16,668 $ 16,668 $ 16,542
Matures through 3/1/99; 5.27% 3,300 3,300 3,301
Matures through 3/31/99; 5.11% 5,504 5,504 5,491
Matures through 5/15/99; 7.38% 11,237 11,237 11,943
Prudential Asset Management
Matures 9/10/96; 4.18% 10,991 10,991 10,914
Matures 6/1/97; 7.08% 5,592 5,592 5,748
Matures 7/31/97; 6.3% 11,083 11,083 11,284
N. Y. Life Insurance Co.
Matures 7/31/96; 5.65% 7,237 7,237 7,259
Matures 3/31/97; 7.7% 7,264 7,264 7,500
Matures 9/9/98; 5.2% 11,242 11,242 11,232
Matures through 8/16/99; 7.3% 11,025 11,025 11,763
Commonwealth Life Insurance Co.
Matures 1/5/99; 8.28% 5,409 5,409 5,926
Hartford Life Insurance Co.
Matures 1/4/99; 7.97% 5,394 5,394 5,849
<PAGE> 15
Textron Savings Plan
Item 27a - Schedule of Assets Held for Investment Purposes
(continued)
Number of Cost/
Shares or Contract Fair
Units Value Value
(In Thousands)
Fund C (continued)
Allstate Insurance Co.
Matures 12/15/00; 6.87% 10,441 10,441 11,249
John Hancock Mutual Life Ins. Co.
Matures 6/30/01; 6.75% 5,139 5,139 5,535
Matures 1/2/96; 8.36% 11,946 11,946 11,949
Matures 6/30/00; 6.50% 5,134 5,134 5,409
Mass Mutual Life Ins. Co.
Matures through 1/31/97; 6.11% 5,696 5,696 5,720
Government Obligations:
Federal National Mortgage Association
Matures 9/25/07; 5.8% 2,450 2,452 2,445
Matures 4/25/17; 6.5% 9,000 8,999 8,992
Federal Home Loan Mortgage Corp.
Matures 12/15/19; 6.5% 422 407 421
BT Pyramid Directed Acct. Cash Fund* 6,254 6,254 6,254
Total Fund C $168,414 $ 172,726
Fund H
BT Pyramid Directed Acct. Cash Fund* 24 $ 24 $ 24
Total Fund H $ 24 $ 24
Total all funds $700,322 $1,216,484
Loans
Loans Receivable (9.5% - 11%) 53 $ 53 $ 53
* Indicates party-in-interest to the Plan
<PAGE> 16
<TABLE>
Textron Savings Plan
Item 27d - Schedule of Reportable Transactions
Year ended December 31, 1995
<S> <S> <C> <C> <C> <C> <C>
Current Value
of Asset on
Identity of Description Purchase Selling Cost of Transaction Net Gain
Party Price Price Assets Date (Loss)
(In Thousands)
Category (iii)--Series of transactions in excess of 5% of plan assets
** Purchase of 1,053,868 63,240 63,240 63,240
shares of Textron Inc.
Common Stock in 241
transactions
Sale of 2,443,523 shares 140,559 77,989 140,559 62,570
of Textron Inc. Common
Stock
Bankers Trust Purchase of 109,200,912 109,201 109,201 109,201
Company* units of BT Pyramid
Directed Account Cash
Fund in 183 transactions
Sale of 113,765,562 113,766 113,766 113,766
units of BT Pyramid
Directed Account Cash
Fund in 209 transactions
There were no category (i), (ii) or (iv) reportable transactions during the
year.
__________________________________
* Indicates party-in-interest to the Plan.
** Transactions made on the market.
</TABLE>
<PAGE> 17
TEXTRON SAVINGS PLAN
ANNUAL REPORT ON FORM 11-K
FOR FISCAL YEAR ENDED DECEMBER 31, 1995
EXHIBIT INDEX
Exhibit Number Description
23 Consent of Independent Auditors
25 Power of Attorney
EXHIBIT 23
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration
Statements (Form S-8 No. 33-00668, Form S-8 No. 33-37139 and
Form S-8 No. 33-63741) pertaining to the Textron Savings Plan
of Textron Inc. of our report dated May 10, 1996, 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, 1995.
/s/ ERNST & YOUNG LLP
New York, New York
June 26, 1996
EXHIBIT 25
POWER OF ATTORNEY
The undersigned members of the Committee administering the
Textron Savings Plan of Textron Inc. (the "Plan"), do hereby
constitute and appoint Wayne W. Juchatz, Arnold M. Friedman and
Michael D. Cahn, and each of them, with full powers of
substitution, their true and lawful attorneys and agents to do or
cause to be done any and all acts and things and to execute and
deliver any and all instruments and documents which said attorneys
and agents, or any of them, may deem necessary or advisable in
order to enable the Plan to comply with the Securities and
Exchange Act of 1934, as amended, and any requirements of the
Securities and Exchange Commission in respect thereof, in
connection with the filing of the Plan's Annual Report on
Form 11-K for the fiscal year ended December 31, 1995, including
specifically, but without limitation, power and authority to sign
the names of the undersigned in the capacities indicated below to
such Annual Report filed with the Securities and Exchange
Commission, to any and all amendments to such Annual Report, to
any instruments or documents or other writings in which the
original or copies thereof are to be filed as a part of or in
connection with such Annual Report or amendments thereto, and to
file or cause to be filed the same with the Securities and
Exchange Commission; and each of the undersigned hereby ratifies
and confirms all that such attorneys and agents, and each of them,
shall do or cause to be done hereunder and such attorneys and
agents, and each of them, shall have, and may exercise, all of the
powers hereby conferred.
IN WITNESS WHEREOF, each of the undersigned has signed his
name hereto, on the 21st day of June, 1996.
/s/ Wayne W. Juchatz /s/ William F. Wayland
Wayne W. Juchatz William F. Wayland
Committee Member Committee Member
/s/ Frank W. McNally /s/ Richard L. Yates
Frank W. McNally Richard L. Yates
Committee Member Committee Member
/s/ Richard A. Watson
Richard A. Watson
Committee Member
