SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark one)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission file number 001-5480
A. Full title of the plan and the address of the plan, if different for
that the issuer named below:
ELCO TEXTRON INC.
PROFIT SHARING AND SAVINGS 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
Financial Statements
and Supplemental Schedules
Elco Textron Inc.
Profit Sharing and Savings Plan
Years ended December 31, 1996 and 1995
Elco Textron Inc.
Profit Sharing and Savings Plan
Financial Statements and
Supplemental Schedules
Years ended December 31, 1996 and 1995
Contents
Report of Independent Auditors 1
Financial Statements
Statements of Net Assets Available for Benefits with Fund Information 2
Statements of Changes in Net Assets Available Benefits with Fund
Information 4
Notes to Financial Statements 6
Supplemental Schedules
Line 27a--Schedule of Assets Held for Investment Purposes 13
Line 27d--Schedule of Reportable Transactions 19
Report of Independent Auditors
Elco Textron Inc. Profit Sharing and Savings Plan
Administration Committee
We have audited the accompanying statements of net assets available for benefits
of the Elco Textron Inc. Profit Sharing and Savings Plan (the Plan) as of
December 31, 1996 and 1995, 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 PlanOs 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, 1996 and 1995, and the changes in its net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1996, and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of LaborOs Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the financial statements. The Fund Information in the
statements of net assets available for benefits and 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 and changes in 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 financial statements and, in our opinion, are fairly stated in all
material respects in relation to the financial statements taken as a whole.
June 23, 1997
<TABLE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Statement of Net Assets Available for Benefits
with Fund Information
December 31, 1996
<CAPTION>
Fund Information
Money Textron
Market Balanced Mortgage & Stock Total
Fund Fund Bond Fund Fund Funds
<S> <C> <C> <C> <C> <C>
Assets
Investments, at fair value
(Note 4):
Mortgage notes $ - $ - $5,062,770 $ - $ 5,062,770
Common stocks - 25,183,741 - 6,189,760 31,373,501
Preferred stocks - 2,147,187 - - 2,147,187
U.S. Government and Agency
obligations - 7,801,308 6,627,276 - 14,428,584
Corporate and municipal
obligations - 2,302,400 3,833,272 - 6,135,672
Foreign bonds - 148,500 348,467 - 496,967
Short-term investments 6,483,572 7,749,102 607,092 - 14,839,766
Loans to participants - - 50,182 - 50,182
Total investments 6,483,572 45,332,238 16,529,059 6,189,760 74,534,629
Receivables:
Employer's contribution 534,463 1,634,238 449,241 466,940 3,084,882
Participants' contribution 15,863 88,666 21,354 27,832 153,715
Interest and dividends 26,369 213,891 139,455 28,899 408,614
Total receivables 576,695 1,936,795 610,050 523,671 3,647,211
Due to (from) other fund (24,820) 77,522 (52,702) - -
Other 136 150,257 5,868 4,377 160,638
Cash 1,246 4,708 82,599 15,655 104,208
$7,036,829 $47,501,520 $17,174,874 $6,733,463 $78,446,686
</TABLE>
See accompanying notes.
<TABLE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Statement of Net Assets Available for Benefits
with Fund Information
December 31, 1995
<CAPTION>
Fund Information
Money
Market Balanced Mortgage & Total
Fund Fund Bond Fund Funds
<S> <C> <C> <C> <C>
Assets
Investments, at fair value (Note 4):
Mortgage notes $ - $ - $ 6,124,887 $ 6,124,887
Common stocks - 19,616,737 - 19,616,737
Preferred stocks - 1,411,713 - 1,411,713
U.S. Government and Agency
obligations - 7,868,687 6,740,495 14,609,182
Corporate and municipal obligations
- 1,645,356 3,235,413 4,880,769
Foreign bonds - 97,138 - 97,138
Short-term investments 1,245,289 4,855,118 1,046,161 7,146,568
Loans to participants - - 5,498 5,498
Total investments 1,245,289 35,494,749 17,152,454 53,892,492
Receivables:
Employer's contribution - 512,624 - 512,624
Interest and dividends 5,381 216,068 139,628 361,077
Total receivables 5,381 728,692 139,628 873,701
Due to (from) other fund 22,449 (92,830) 70,381 -
Cash 8,550 143,324 209,960 361,834
$ 1,281,669 $ 36,273,935 $ 17,572,423 $ 55,128,027
</TABLE>
See accompanying notes.
<TABLE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Statement of Changes in Net Assets Available for Benefits
with Fund Information
Year ended December 31, 1996
<CAPTION>
Fund Information
Money Mortgage Textron
Market Balanced and Bond Stock Total
Fund Fund Fund Fund Funds
<S> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments
(Note 4) $ - $4,091,825 $ (176,520) $ 565,170 $ 4,480,475
Interest and dividends 161,923 1,430,172 1,144,428 57,254 2,793,777
161,923 5,521,997 967,908 622,424 7,274,252
Contributions:
Participants 129,881 1,066,492 369,713 174,376 1,740,462
Employer 534,463 1,634,238 449,241 466,940 3,084,882
664,344 2,700,730 818,954 641,316 4,825,344
Total additions 826,267 8,222,727 1,786,862 1,263,740 12,099,596
Deductions from net assets
attributed to:
Benefits paid to
participants 733,204 1,187,757 1,662,179 28,076 3,611,216
Administrative expenses - 233,906 53,056 386 287,348
Total deductions 733,204 1,421,663 1,715,235 28,462 3,898,564
Net increase (decrease)
prior to transfers 93,063 6,801,064 71,627 1,235,278 8,201,032
Transfer from Elco
Industries, Inc.
Employee
Stock Ownership Plan 2,249,811 8,433,912 2,370,760 2,063,144 15,117,627
Interfund transfers (net) 3,412,286 (4,007,391) (2,839,936) 3,435,041 -
Net increase (decrease) 5,755,160 11,227,585 (397,549) 6,733,463 23,318,659
Net assets available for
benefits, beginning of
year 1,281,669 36,273,935 17,572,423 - 55,128,027
Net assets available for
benefits, end of year $7,036,829 $47,501,520 $17,174,874 $6,733,463 $78,446,686
</TABLE>
See accompanying notes.
<TABLE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Statement of Changes in Net Assets Available for Benefits
with Fund Information
Year ended December 31, 1995
<CAPTION>
Fund Information
Money Mortgage
Market Balanced and Bond Total
Fund Fund Fund Funds
<S> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments
(Note 4) $ - $ 6,903,221 $ 851,973 $ 7,755,194
Interest and dividends 65,177 1,091,529 1,150,798 2,307,504
65,177 7,994,750 2,002,771 10,062,698
Contributions:
Participants 33,226 884,381 464,986 1,382,593
Employer 21,654 1,092,881 67,889 1,182,424
54,880 1,977,262 532,875 2,565,017
Total additions 120,057 9,972,012 2,535,646 12,627,715
Deductions from net assets
attributed to:
Benefits paid to 97,807 672,324 1,504,066 2,274,197
participants
Administrative expenses - 154,698 49,213 203,911
Total deductions 97,807 827,022 1,553,279 2,478,108
Net increase (decrease) prior
to transfers 22,250 9,144,990 982,367 10,149,607
Interfund transfers (net) 1,259,419 (473,071) (786,348) -
Net increase (decrease) 1,281,669 8,671,919 196,019 10,149,607
Net assets available for
benefits, beginning of - 27,602,016 17,376,404 44,978,420
year
Net assets available for
benefits, end of year $1,281,669 $36,273,935 $17,572,423 $55,128,027
</TABLE>
See accompanying notes.
1. Description of the Plan
The following description of the Elco Textron Inc. Profit Sharing and Savings
Plan (Plan) (formerly the Elco Industries, Inc. Profit Sharing and Savings Plan)
provides only general information. Participants should refer to the Summary Plan
Description for a more complete description of the Plan.
General
The Plan is a defined contribution plan formed to provide profit sharing
benefits to employees of Elco Textron Inc. (the Company). Elco Industries, Inc.
was purchased in October 1995 by Textron Inc. and changed its name to Elco
Textron Inc. All full-time employees of the CompanyOs Corporate Division,
Precision Automotive Division, Precision Commercial Division, Heat Treat and
Finishes Division, Tool Manufacturing Division, Construction Products Division
and Elco Consumer Products Corp. are eligible to participate in the Plan,
commencing with the first annual anniversary of their employment. The Plan is
subject to the provisions of the Employee Retirement Income Security Act of 1974
(ERISA).
Effective June 30, 1996, Elco Textron Inc. Employee Stock Ownership Plan (ESOP)
was terminated. The assets of the ESOP were transferred into the participants'
new or existing accounts in the Elco Thermoplastics, Inc. Profit Sharing Plan,
the Elco Anchor Wire, Inc. Retirement Plan, the Employees' Retirement Savings
Plan for the Precision Stamping Division of Elco Textron Inc. or the Plan, as
applicable. Assets distributed to the Plan were distributed to the participants'
investment funds as directed by each participant.
The Plan is administered by an administrative committee consisting of not fewer
than three members selected by the Board of Directors of the Company.
1. Description of the Plan (continued)
Vesting
Participants are immediately vested in their contributions plus actual earnings
thereon. Participants become 100% vested in the Company contribution upon
retirement at the Plan's normal retirement age, disability or death.
Upon a participant's severance date, for any other reason occurring after July
1, 1996, a percentage of the value of his or her Company contribution account
shall become nonforfeitable in accordance with the following schedule:
Years of Credited Service Vested Percentage
Less than 2 0%
2 25%
3 50%
4 75%
5 or more 100%
Upon a participant's severance date, for any other reason occurring before July
1, 1996, a percentage of the value of his or her Company contribution account
shall become nonforfeitable based upon the number of years of credited service
prior to his severance date, in accordance with the following schedule:
Years of Credited Service Vested Percentage
Less than 2 0%
2 10%
3 20%
4 40%
5 60%
6 80%
7 or more 100%
1. Description of the Plan (continued)
Contributions
The Company annually contributes to the Plan the lesser of 10 percent of the
Company's net profits for the plan year plus an additional amount, which shall
be authorized at the discretion of its Board of Directors, or 15 percent of the
aggregate compensation paid to all Plan participants for the plan year.
Effective July 1, 1996, the Company may make an additional contribution in such
amount as determined at the Board's discretion. The Company made a
discretionary contribution of $1,120,000 during the year ended December 31,
1996. Active participants may elect to make contributions not to exceed 14
percent of their earnings.
Investment Options
Effective July 1, 1996, participants were granted the option of investing in the
Textron Stock Fund, which is invested exclusively in Textron Inc. common stock.
Cash dividends, if any, on Textron common stock will be reinvested in shares of
Textron common stock. Fractional interests in the shares of Textron common
stock held by the Textron Stock Fund are allocated to participants' accounts.
Upon enrollment in the Plan, a participant may direct employer and employee
contributions in 10% increments in any of the four investment options:
Money Market Fund - Funds are primarily invested mutual funds which
invest primarily exclusively in short-term, interest-bearing paying
securities issued by or guaranteed by the U.S. Government or its
agencies.
Balanced Fund - Funds are primarily invested in a combination of common
stocks, short- and medium-term domestic and foreign corporate bonds and
fixed income government securities.
Mortgage and Bond Fund - Funds are primarily invested in a combination
of short- and medium-term domestic and foreign corporate bonds and fixed
income government securities as well as home mortgages of employees of
the Company having maturity of ten years.
1. Description of the Plan (continued)
Textron Stock Fund - Funds are primarily invested exclusively in Textron
Inc. Common Stock.
Participants may change their investment options January 1 and July 1.
Participant Accounts
The allocation of Plan income or loss to active participants is made in the same
ratio that a participantOs account bears to the sum of the balances of all
participantsO accounts, taking into consideration the dates on which additional
contributions and withdrawals are made.
The allocation of Company contributions and forfeitures is based on participant
earnings, plus years of service, as defined by the Plan document.
Payment of Benefits
The benefit to which a participant is entitled is the benefit that can be
provided from the participantOs account balance. On termination of service, a
participant may elect to receive either a lump-sum amount equal to the vested
portion of his account, or periodic payments over a period of time as defined by
the Plan.
2. Summary of Significant Accounting Policies
Investment Valuation
The Plan's investments are stated at fair value. Common stocks, preferred
stocks, U.S. Government and Agency obligations, foreign bonds, and corporate and
municipal obligations are carried at fair value based on quoted market values.
The values of investments in mortgage notes and loans to participants represent
the uncollected principal balances, which approximate fair value. Short-term
investments are reported at cost, which approximates fair value.
2. Summary of Significant Accounting Policies (continued)
Use of Estimates
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates that affect the
amounts reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
Administrative Expense
Certain administrative services are provided to the Plan by the Company without
charge.
3. Termination Priorities
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contribution at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of termination,
participants will become 100% vested in their accounts.
4. Investments
In accordance with the terms of the trust agreement, as amended January 1, 1976,
a bank administered trust fund has custody of all plan assets, except cash,
participant loans, and mortgage notes.
The fair value of individual investments that exceed five percent of net assets
is as follows:
<TABLE>
1996 1995
<S> <C> <C>
U.S. Treasury notes, 5.125%, due $ * $ 3,486,875
12/31/98
Parkstone U.S. Government Obligations
Money Market Fund, 10,304,534 and
4,210,996 units, respectively 10,304,534 4,210,996
Parkstone Prime Obligations Money Market
Fund, 4,535,232 and 2,935,572 units,
respectively 4,535,232 2,935,572
Textron Inc. Common Stock, 65,674 shares 6,189,760 -
</TABLE>
* Fair value is less than 5% of net assets for the given year.
4. Investments (continued)
During 1996 and 1995, Plan investments (including investments bought, sold, as
well as held during the year) appreciated (depreciated) in fair value by
$4,480,475 and $7,755,194, as follows:
<TABLE>
1996 1995
<S> <C> <C>
Investments at fair value as determined
by quoted market prices:
Common stocks $ 4,193,570 $ 6,187,450
Preferred stocks 550,810 67,634
U.S. Government and Agency obligations (281,640) 1,061,506
Corporate and municipal obligations (5,980) 494,341
Foreign bonds 23,715 (55,737)
$ 4,480,475 $ 7,755,194
</TABLE>
The Plan invests in mortgage notes receivable from certain employees of the
Company in northern Illinois who may or may not be Plan participants. The Plan's
policy restricts these investments to first mortgages on personal residences,
including subsequent home improvements, and requires approval by the
administrative committee. The mortgage amount may not exceed 80 percent of the
appraised value of the property for non-plan participants. For Plan
participants, the mortgage amount may not exceed 80 percent of the appraised
value of the property plus 50 percent of the participant's vested
benefit in their profit sharing account. The maximum amount loaned is limited to
the appraised value, but may not exceed $50,000. Interest rates currently range
from 7.5% to 8.5%. The notes are granted with maturities of up to ten years and
payment schedules based on periods of up to twenty-five years. At the maturity
date, unpaid loan balances are reviewed by the administrative committee and,
upon approval, are refinanced at prevailing interest rates.
5. Income Tax Status
The Internal Revenue Service ruled on April 6, 1995, that the Plan qualifies
under Section 401(b) of the Internal Revenue Code (IRC) and, therefore, the
related trust is 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 might adversely affect the Plan's qualified
status.
6. Related-Party Transactions
During the year, the Plan had purchase and sale transactions with mutual funds
administered by an affiliate of the Plan's trustee and the common stock of
Textron Inc., parent company of Elco.
<TABLE>
Supplemental Schedules
Elco Textron Inc.
Profit Sharing and Savings Plan
Employer Identification Number 36-1033080
Plan Number 010
Line 27a--Schedule of Assets Held for Investment Purposes
December 31, 1996
<CAPTION>
Par Value Current
Identity /Description or Shares Cost Value
<S> <C> <C> <C>
Mortgage notes, interest rates of 7.5% D
8.5%, maturing at various dates through
2005* - $5,062,770 $5,062,770
Common stocks:
Allstate Corporation 2,785 96,531 161,182
American Home Products Corporation 6,350 277,336 372,268
American Water Works Company 7,900 150,099 162,936
Amerin Corporation 8,100 176,175 208,575
Anheuser Busch Companies Incorporated 9,800 368,504 392,000
Arrow Electronics Incorporated 5,200 194,220 278,200
Atlantic Richfield Company 2,850 328,522 377,625
Bandag Incorporated Class A Common 2,600 134,462 118,950
BankNorth Group Incorporated Delaware 4,000 139,964 166,000
Belden Incorporated 10,200 265,058 377,400
Berg Electronics Corporation 7,000 180,600 205,625
Black Box Corporation Delaware 7,600 152,000 313,500
Brady WH Company Class A 11,000 243,046 270,875
Bristol Meyers Squibb Company 3,700 310,673 403,300
Browning Ferris Industries 17,500 508,143 459,375
Burlington Resources, Inc. 10,500 398,030 528,937
Casey's General Stores 28,500 356,105 537,375
Central and South West Corporation 5,400 153,732 138,375
Coca Cola Company 6,500 195,169 342,062
Comcast Corporation Class A Special 22,000 346,063 391,885
Consolidated Natural Gas Company 4,600 248,543 254,150
Corning Incorporated 12,600 359,805 582,750
Cox Communications Incorporated New
Class A 18,000 360,900 416,250
Cuno Incorporated 11,800 175,525 175,525
Dentsply International Incorporated 9,700 354,975 460,750
Dial Corporation New 17,300 251,857 253,012
Duke Power Company 7,200 303,345 333,000
Emerson Electric Company 5,100 377,983 494,061
</TABLE>
<TABLE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Employer Identification Number 36-1033080
Plan Number 010
Line 27a--Schedule of Assets Held for Investment Purposes (continued)
<CAPTION>
Par Value Current
Identity /Description or Shares Cost Value
<S> <C> <C> <C>
Common stocks (continued):
Enron Corporation Common
Exchangeable EOG 9,850 $243,015 $236,400
Family Dollar Store Incorporated 31,000 468,867 631,625
Federal National Mortgage Association
Common 14,000 256,073 526,750
Financial Security Assurance Holdings
Limited 6,200 178,297 203,825
First Financial Corporation Wisconsin 99,400 46,083 230,300
First Tennessee National Corporation 5,450 159,781 204,375
Fisher Scientific International
Incorporated 8,100 261,486 380,700
Flowers Industries Incorporated 15,200 239,674 326,800
Fluke Corporation 4,700 178,835 209,436
FPL Group Incorporated 7,800 312,905 358,800
Frontier Corporation 9,900 234,486 223,987
G & K Services, Incorporated Class A 7,500 66,962 283,125
General Instrument Corporation 8,700 190,747 189,225
GPU Incorporated 4,700 162,388 158,036
Grey Advertising Incorporated 500 109,500 126,500
Haemonetics Corporation 14,500 299,534 273,687
Harnishfeger Industries Incorporated 3,700 139,601 178,062
Intimate Brands Incorporated Class A 13,250 258,083 226,905
Johnson & Johnson 7,100 239,969 353,225
Jostens Incorporated 32,700 687,020 690,787
Kimberly Clark Corporation 3,900 301,987 371,475
Lilly and Company, Eli 7,100 296,441 518,300
Liqui Box Corporation 9,900 288,050 321,750
Mac Frugal's Bargains Close-Outs
Incorporated 15,000 367,485 390,875
Marshall & Ilsley 6,900 69,000 238,912
May Department Stores Company 3,700 150,633 172,975
MBNA Corporation 12,350 242,690 514,069
Measurex Corporation 10,100 285,250 242,400
Methode Electronics Incorporated
Class A 7,900 139,238 159,975
Mobil Corporation 1,850 177,241 226,163
Moneygram Payment Systems Incorporated 15,500 186,000 205,375
Occidental Petroleum Corporation 8,850 210,733 206,869
</TABLE>
<TABLE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Employer Identification Number 36-1033080
Plan Number 010
Line 27a--Schedule of Assets Held for Investment Purposes (continued)
Par Value Current
Identity /Description or Shares Cost Value
<S> <C> <C> <C>
Common stocks (continued):
Old Republic International Corporation 10,800 $168,301 $228,900
OM Group Incorporated 6,900 179,400 186,300
Pall Corporation 25,500 511,492 653,438
Patterson Dental Company 6,000 138,000 169,500
PNC Bank Corporation 4,800 145,621 180,600
Progressive Corporation Ohio 5,000 179,630 336,875
Questar Corporation 4,750 156,546 174,563
Raychem Corporation 6,000 248,016 480,750
Regal Beloit Corporation 14,500 134,449 284,563
Royal Dutch Petroleum Company 1,850 227,612 315,887
Ryans Steak House 34,000 284,185 233,750
Sears Roebuck and Company 8,950 328,226 411,700
Security Capital Industrial Trust 9,900 170,775 211,612
Sirrom Capital Corporation 5,200 176,800 191,100
Snap On Incorporated 7,575 220,183 269,859
Sungard Data Systems Incorporated 7,900 83,648 312,050
Sybron International Corporation 6,600 80,190 217,800
Textron Inc.* 65,674 5,624,612 6,189,774
United Technologies Corporation 6,000 221,785 397,500
UST Incorporated 11,150 334,895 360,981
Watts Industries Class A 18,000 394,364 429,750
Wausau Paper Mills Company 5,225 88,825 96,662
Xerox Corporation 4,250 176,816 223,656
25,129,790 31,373,501
Convertible preferred stocks:
Alco Standard 2,650 212,908 253,075
Allstate Corporation 3,500 145,652 165,375
Bowater Incorporated 4,450 140,609 135,725
First USA, Incorporated 8,100 312,617 477,900
Houghton Mifflin Company 2,150 168,533 210,700
Money Store Incorporated 7,600 201,898 208,050
Morgan Stanley Group Incorporated 2,600 172,900 260,000
Sunamerica Incorporated 1,750 114,748 170,187
1,469,865 1,881,012
</TABLE>
<TABLE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Employer Identification Number 36-1033080
Plan Number 010
Line 27a--Schedule of Assets Held for Investment Purposes (continued)
<CAPTION>
Par Value Current
Identity /Description or Shares Cost Value
<S> <C> <C> <C>
Nonconvertible preferred stocks -
Sunamerica Incorporated 6,300 $236,250 $266,175
236,250 266,175
U.S. Government obligations:
U.S. Treasury note, 5.125%, due 12/31/98 3,000,000 2,968,542 2,950,320
U.S. Treasury note, 5.625%, due 11/30/00 750,000 725,078 736,410
U.S. Treasury note, 5.750%, due 10/31/00 1,650,000 1,619,414 1,628,352
U.S. Treasury note, 6.375%, due 7/15/99 1,300,000 1,319,627 1,312,194
U.S. Treasury note, 7.875%, due 11/15/04 650,000 649,188 709,313
7,281,849 7,336,589
U.S. Government Agency obligations:
FHLB, 6.877% DTD 9/13/95, due 9/13/00 500,000 500,781 500,650
FHLB, 7.050% DTD 12/21/95, due 12/21/05 700,000 700,000 688,870
FHLB, 7.100% DTD 2/07/96, due 2/07/11 600,000 600,000 582,000
FHLB, 7.200% DTD 2/22/96, due 2/22/11 750,000 750,000 731,025
FHLB, 7.250% DTD 3/04/96, due 3/04/96 750,000 746,400 732,450
FHLB, 7.300% DTD 12/28/95, due 12/27/05 800,000 800,000 783,280
FHLB, 7.325% DTD 12/28/95, due 12/28/10 600,000 600,000 588,180
FHLB, 7.625% DTD 12/09/96, due 12/09/11 300,000 300,000 294,840
FHLB, 7.750% DTD 12/12/96, due 12/12/96 500,000 500,000 494,200
FHLB, 8.010% DTD 8/26/96, due 8/26/11 100,000 100,000 100,220
FHLB, 8.080% DTD 8/28/95, due 12/27/10 500,000 500,000 500,650
FHLMC Debenture, 6.780% DTD 2/12/93, due
2/12/03 500,000 499,297 494,850
SLMA, 6.970% DTD 8/23/95, due 8/23/00 600,000 601,500 600,780
7,197,978 7,091,995
Corporate and municipal obligations:
American Express Master Trust CMO, 6.050%,
due 7/15/97 200,000 199,418 200,530
Analog Devices Incorporated, 3.500%,
dueE12/01/00 150,000 155,031 206,250
Anheuser Busch, Inc., 8.750%, due 12/01/99 300,000 320,478 318,093
Bear Stearns Companies, 9.375%, due 6/01/01 150,000 153,314 164,883
Coca Cola Enterprises, Inc., 7.875%,
dueE2/01/02 300,000 298,050 316,028
</TABLE>
<TABLE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Employer Identification Number 36-1033080
Plan Number 010
Line 27a--Schedule of Assets Held for Investment Purposes (continued)
<CAPTION>
Par Value Current
Identity /Description or Shares Cost Value
<S> <C> <C> <C>
Corporate and municipal obligations:
E I DuPont De Nemours & Co., 8.500%,
dueE2/15/03 400,000 $421,559 $427,000
First Financial Management Corporation,
5.000%, due 12/15/99 90,000 125,387 154,688
Ford Motor Company, 9.000%, due 9/15/01 300,000 305,625 326,811
Ford Motor Credit Company, 6.250%, due
11/08/00 200,000 204,040 198,124
General Instrument Corporation, 7.000%,
dueE9/15/02 500,000 527,311 505,000
Great Western Financial Corporation,
6.375%, due 7/01/00 200,000 198,666 198,812
Healthsouth Rehabilitation Corporation,
5.000%, due 4/01/01 215,000 300,881 436,719
HFS Incorporated, 4.750%, due 3/01/03 215,000 224,144 245,100
Home Depot Incorporated, 5.000%, due
10/01/01 335,000 345,638 326,625
Manga International Incorporated, 5.000%,
due 10/15/02 140,000 149,629 161,175
Mens Warehouse Incorporated, 5.250%, due
3/01/03 155,000 155,612 151,900
Northern Telecom, 6.875%, due 10/01/02 300,000 300,000 303,000
Pacific Gas and Electric Co., 5.375%,
dueE8/01/98 500,000 498,175 494,530
Phycor Incorporated, 4.500%, due 2/15/03 200,000 200,995 197,750
Texas Instruments, Inc., 9.000%, due 350,000 371,350 380,461
3/15/01
USB Finance Delaware Incorporated,
2.500%, due 3/01/01 300,000 302,044 352,500
VLSI Technology Incorporated, 8.250%,
due 10/01/05 70,000 69,620 69,693
5,826,967 6,135,672
Foreign bonds :
Solectron Euro Bond, 6.000%, due 3/01/06 150,000 149,889 148,500
Walt Disney Company Senior Global Bond,
6.375%, due 3/30/01 350,000 350,000 348,467
499,889 496,967
</TABLE>
<TABLE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Employer Identification Number 36-1033080
Plan Number 010
Line 27a--Schedule of Assets Held for Investment Purposes (continued)
<CAPTION>
Par Value Current
Identity /Description or Shares Cost Value
<S> <C> <C> <C>
Short-term investments:
Parkstone Prime Obligations Money
Market Fund* 4,535,232 $ 4,535,232 $ 4,535,232
Parkstone U.S. Government Obligations
Money Market Fund* 10,304,534 10,304,534 10,304,534
14,839,766 14,839,766
Loans to participants, 8.5%* 50,182 50,182
$ 67,595,306 $74,534,629
</TABLE>
* Indicates party-in-interest to the Plan.
<TABLE>
Elco Textron Inc. Profit Sharing and Savings Plan
Employer Identification Number 36-1033080
Plan Number 010
Line 27d--Schedule of Reportable Transactions
Year ended December 31, 1996
<CAPTION>
Current Value
of Asset on
Transaction Net
Identity of Description of Purchase Selling Cost of Date Gain
Party Involved Assets Price Price Asset (Loss)
Category (i)--Individual transactions in excess of 5% of plan assets
<S> <C> <C> <C> <C> <C> <C>
Parkstone Government
Money Market Fund* Purchase of
2,862,750 units $2,862,750 $2,862,750 $2,862,750
Sale of 4,437,220
units $4,437,220 4,437,220 4,437,220
Parkstone Prime
Obligations
MoneyMarket Fund* Purchase of
5,498,185 units 5,498,185 5,498,185 5,498,185
Textron Inc. Common
Stock* Purchase of 37,600
shares 3,221,132 3,221,132 3,221,132
Category (iii)_Series of transactions in excess of 5% of plan assets
Parkstone Governmen Purchased
Money Market Fund* 23,925,707 units
in 98
transactions 23,925,707 23,925,707 23,925,707
Sale of 17,832,169
units in 45
transactions 17,832,169 17,832,169 17,832,169
Parkstone Prime Purchased
Obligations Money 24,305,469 units
Market Fund* in 199
transactions 24,305,469 24,305,469 24,305,469
Sale of 22,705,809
units in 81
transactions 22,705,809 22,705,809 22,705,809
Textron Inc. Common Purchased 65,677
Stock* shares in
transactions 5,624,869 5,624,869 5,624,869
Sale of 3 shares
in 1 transaction 265 257 265 $8
There were no category (ii) or (iv) reportable transactions for the year
ended December 31, 1996.
</TABLE>
*Indicates party-in-interest to the Plan.
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 TEXTRON INC. PROFIT SHARING
AND SAVINGS PLAN
ELCO TEXTRON INC., Plan Administrator
DATE June 25, 1997 By:/s/Kenneth L. Heal
Title: Secretary/Treasurer
Consent of Independent Auditors
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 333-07121) pertaining to the Elco Textron Inc. Profit Sharing and
Savings Plan of Textron Inc. of our report dated June 23, 1997, with respect to
the financial statements and schedules of the Elco Textron Inc. Profit Sharing
and Savings Plan included in this Annual Report (Form 11-K) for the year ended
December 31, 1996.
ERNST & YOUNG LLP
Providence, Rhode Island
June 25, 1997
