SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[ ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
for the fiscal year ended December 31, 1996
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, 1996 and 1995
Statement of Changes in Net Assets Available for Benefits
for each of the two years ended December 31, 1996 and 1995
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 24, 1997
Financial Statements
and Supplemental Schedules
Textron Savings Plan
Years ended December 31, 1996 and 1995
with Report of Independent Auditors
Textron Savings Plan
Financial Statements
and Supplemental Schedules
Years ended December 31, 1996 and 1995
Contents
Report of Independent Auditors 1
Audited Financial Statements
Statement of Net Assets Available for Benefits With Fund
Information, December 31, 1996 2
Statement of Net Assets Available for Benefits With Fund
Information, December 31, 1995 3
Statement of Changes in Net Assets Available for Benefits With Fund
Information, December 31, 1996 4
Statement of Changes in Net Assets Available for Benefits With Fund
Information, December 31, 1995 5
Notes to Financial Statements 6
Supplemental Schedules
Line 27a--Schedule of Assets Held for Investment Purposes 15
Line 27d--Schedule of Reportable Transactions 17
Report of Independent Auditors
The Benefits Committee
Textron Savings Plan
We have audited the accompanying statements of net assets available for benefits
of Textron 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 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, 1996 and 1995, 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 purposes as of December 31, 1996, 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 statements 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
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 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.
May 2, 1997
<TABLE>
Textron Savings Plan
Statement of Net Assets Available for Benefits with Fund Information
(In Thousands)
December 31, 1996
<CAPTION>
Fund Information
Fund Fund Fund Fund Loan
A B C H Fund Total
Assets
<S> <C> <C> <C> <C> <C> <C>
Investments, at fair value (Notes
2 and 4):
Textron Inc. Common Stock $1,205,830 $ - $ - $ - $ - $1,205,830
U. S. Government securities - - 9,103 - - 9,103
Common/collective trust funds 1,467 120,775 7,518 160 - 129,920
Participant notes receivable - - - - 41 41
1,207,297 120,775 16,621 160 41 1,344,894
Insurance contracts, at contract
value (Notes 2 and 4) - - 144,641 - - 144,641
Total investments 1,207,297 120,775 161,262 160 41 1,489,535
Receivables:
Investment income 5,664 3 862 1 - 6,530
Interfund receivable (payable) 5 (74) 69 - - -
Other - 15 2 - - 17
Total receivables 5,669 (56) 933 1 - 6,547
Total assets 1,212,966 120,719 162,195 161 41 1,496,082
Liabilities
Payables:
Excess employer contributions 2,541 600 537 - - 3,678
Investments purchased 995 362 780 - - 2,137
Total liabilities 3,536 962 1,317 - - 5,815
Net assets available for benefits $1,209,430 $119,757 $160,878 $161 $41 $1,490,267
</TABLE>
See notes to financial statements.
<TABLE>
Textron Savings Plan
Statement of Net Assets Available for Benefits with Fund Information
(In Thousands)
December 31, 1995
<CAPTION>
Fund Information
Fund Fund Fund Fund Loan
A B C H Fund Total
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments, at fair value (Notes
2 and 4):
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
Total investments 943,796 94,755 18,112 24 52 1,056,739
Insurance contracts, at contract
value (Notes 2 and 4) - - 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 receivable (payable) 34 (48) 14 - - -
Other 31 66 27 - - 124
Total receivables 5,497 19 921 - - 6,437
Total assets 949,293 94,774 169,335 24 52 1,213,478
Liabilities
Payables:
Excess employer contributions 1,294 251 295 - - 1,840
Investments purchased 826 - 787 - - 1,613
Total liabilities 2,120 251 1,082 - - 3,453
Net assets available for benefits $947,173 $94,523 $168,253 $24 $52 $1,210,025
</TABLE>
See notes to financial statements.
<TABLE>
Textron Savings Plan
Statement of Changes in Net Assets Available for Benefits with Fund Information
(In Thousands)
Year ended December 31, 1996
<CAPTION>
Fund Information
Fund Fund Fund Fund Loan
A B C H Fund Total
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Investment income:
Net appreciation in fair value
of investments (Note 4) $ 355,525 $ 22,250 $ 13 $ - $ - $ 377,788
Dividends 23,074 - - - - 23,074
Interest 135 5 9,992 8 1 10,141
378,734 22,255 10,005 8 1 411,003
Contributions:
Participants 51,301 10,523 7,581 - - 69,405
Employer 31,991 - - - - 31,991
83,292 10,523 7,581 - - 101,396
Total additions 462,026 32,778 17,586 8 1 512,399
Deductions from net assets
attributed to:
Benefits paid to participants (191,755) (11,355) (26,309) (31) (12) (229,462)
Forfeitures (1,470) (31) (25) - - (1,526)
Administrative expenses (929) (92) (148) - - (1,169)
Total deductions (194,154) (11,478) (26,482) (31) (12) (232,157)
Net increase (decrease) prior to
interfund transfers 267,872 21,300 (8,896) (23) (11) 280,242
Interfund transfers, net (5,615) 3,934 1,521 160 - -
Net increase (decrease) 262,257 25,234 (7,375) 137 (11) 280,242
Net assets available for benefits:
Beginning of year 947,173 94,523 168,253 24 52 1,210,025
End of year $1,209,430 $119,757 $160,878 $161 $41 $1,490,267
</TABLE>
See notes to financial statements.
<TABLE>
Textron Savings Plan
Statement of Changes in Net Assets Available for Benefits with Fund Information
(In Thousands)
Year ended December 31, 1995
<CAPTION>
Fund Information
Fund Fund Fund Fund Loan
A B C H Fund Total
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Investment income:
Net appreciation in fair value of
investments (Note 4) $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 - 305,892
Contributions:
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)
Interest 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
</TABLE>
See notes to financial statements.
Textron Savings Plan
Notes to Financial Statements
December 31, 1996 and 1995
1. Description of Plan
General
The Textron Savings Plan (the "Plan") is an employee stock ownership plan
covering substantially all domestic employees of Textron Inc. ("Textron"). 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. The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 ("ERISA").
The Plan is currently administered under the terms of a Trust Agreement, dated
May 1, 1989, with Bankers Trust Company (the "Trustee"). During 1997, Textron
terminated the Trust Agreement with Bankers Trust Company and entered into a
trust agreement with State Street Bank and Trust Company.
Investment Options
The Plan allows participants to direct their employee contributions to Fund A,
B, or C. Participants 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
service with Textron. Employer contributions are invested entirely in Fund A.
Fund A invests primarily in Textron Inc. Common Stock that is either purchased
by the Trustee or contributed by Textron.
Fund B invests primarily in the Bankers Trust 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 common stocks included in 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 or an investment manager
designated by Textron.
1. Description of Plan (continued)
Fund H is invested in the Bankers Trust Pyramid Directed Account Cash Fund,
which is a portfolio of short-term instruments comprised primarily of 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 (Bankers Trust Pyramid Directed Account Cash Fund and Bankers Trust
Pyramid Discretionary Account Cash Fund).
At December 31, 1996, there were approximately 30,100 participants in Fund A,
12,000 in Fund B, 14,000 in Fund C and 6 in Fund H.
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 forfeitures) made by Textron is
limited by the Textron Board of Directors to $40 million for a calendar year.
For the years ending December 31, 1996 and 1995, employee contributions included
rollovers of approximately $1.2 million and $1.8 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.
This is disclosed as an excess contribution in the statement of net assets
available for benefits. 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.
For the year ended December 31, 1995, Textron's contributions were also reduced
by approximately $23.2 million representing the market value of excess shares
that were released as a result of loan payments (see Note 3). Additional
contributions required by Textron to fund debt service payments on the senior
note amounted to $8.3 million in 1995 (see Note 3). The senior note was paid in
full during 1995.
1. Description of Plan (continued)
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:
1996 1995
Number of Value Number Value
Fund Units per Unit of Units per Unit
B 23,518,513 $4.993703 22,949,673 $4.048529
C 66,201,075 2.351977 74,169,927 2.211828
H 85,748 1.877012 13,393 1.778853
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 to participants whose accounts hold more
than forty whole shares of Textron Inc. Common Stock shall be in the form of
Textron Inc. Common Stock. Distributions to participants whose accounts hold
forty or less whole shares of Textron Inc. Common Stock shall be in the form of
cash unless the participant or beneficiary expressly requests Textron Inc.
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 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. Benefits are recorded when paid.
1. Description of Plan (continued)
Vesting
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.
Termination
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.
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. Prior to its merger into the Plan, TCAP 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.
2. Significant Accounting Policies
Basis of Accounting
The financial statements of the Plan are prepared under the accrual method of
accounting.
Use of Estimates
The preparation of financial statements in conformity 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.
Investment Valuation and Income Recognition
Textron Inc. 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 Bankers Trust
Pyramid Large Capitalization Equity Index Fund is valued at the redemption price
established by the fund's Trustee which is generally based on the fair value of
the underlying assets. The Bankers Trust Pyramid Directed Account Cash Fund and
Bankers Trust Pyramid Discretionary Account Cash Fund include pooled temporary
investments and are stated at cost which approximates market value. Participant
notes receivable are valued at cost which approximates fair value.
Insurance contracts are fully benefit responsive and are valued at contract
value (Note 4) which represents contributions made under the contract, plus
accrued interest less funds used to pay employee withdrawals and administrative
expenses.
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.
Administrative Expenses
All administrative expenses are paid from Plan assets.
3. Unallocated Shares and Senior Note
During 1989, coincident with the conversion of the Plan to an employee stock
ownership plan, the Plan purchased from Textron 3,652,969 shares of Textron Inc.
Common Stock with the proceeds of a $100 million bank loan. Such shares of
Textron Inc. 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 Inc. Common Stock allocated as matching
contributions and dividends was the average fair market value for the period the
shares were 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.
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. The note was paid in
full October 3, 1995.
4. Fair Value of 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
1996 1995
(Share and dollar amounts in
thousands)
Investments at fair value as determined by quoted
market price:
Textron Inc. Common Stock*, 12,794 and 13,945
shares, respectively $1,205,830 $ 941,263
Investments at estimated fair value:
BT Pyramid Capitalization Equity Index Fund*,
71 and 69 shares, respectively 120,412 94,755
Total Investments at fair value $1,326,242 $1,036,018
*Indicates party-in-interest to the Plan.
4. Fair Value of Investments (continued)
During 1996 and 1995, the Plan's investments (including investments bought,
sold, and held during the year) appreciated in fair value by $377,788,000 and
$272,269,000 as follows:
December 31
1996 1995
(In thousands)
Investments at fair value as determined by quoted
market price:
Textron Inc. Common Stock $355,525 $246,117
U.S. Government Securities 13 792
Net change in fair value 355,538 246,909
Investments at estimated fair value:
Common/collective trust funds 22,250 25,360
Net change in fair value $377,788 $272,269
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 $147,000,000 and $155,000,000 at December 31, 1996 and 1995,
respectively. The average yield approximated 5.99% and 6.14% for the years
ended December 31, 1996 and 1995, respectively, on contracts with crediting
interest rates ranging from 4.67% to 8.36% and 4.18% to 8.36% for 1996 and 1995,
respectively.
The fair values of insurance contracts presented herein 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.
4. Fair Value of Investments (continued)
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.
5. 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:
<TABLE>
<CAPTION>
December 31
1996 1995
(In thousands)
<S> <C> <C>
Net assets available for benefits per financial
statements $1,490,267 $1,210,026
Amounts allocated to withdrawn participants (41,632) (36,154)
Net assets available for benefits per Form 5500 $1,448,635 $1,173,872
</TABLE>
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
<TABLE>
<CAPTION>
December 31
1996 1995
(In thousands)
<S> <C> <C>
Benefits paid to participants per the financial
statements $229,462 $182,431
Add: Amounts allocated on Form 5500 to withdrawn
participants at December 31, 1996 41,632 36,154
Less: Amounts allocated on Form 5500 to withdrawn
participants at December 31, 1995 (36,154) (16,153)
Benefits paid to participants per Form 5500 $234,940 $202,432
</TABLE>
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.
6. 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 Internal
Revenue Service 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 is qualified and the related trust is tax exempt as of the
financial statement date.
<TABLE>
Supplementary Schedules
Textron Savings Plan
Line 27a--Schedule of Assets Held for Investment Purposes
(In Thousands)
December 31, 1996
<CAPTION>
Number of Cost/
Shares or Contract Value Fair
Units Value
<S> <C> <C> <C>
Fund A
Textron Inc. Common Stock* 12,794 $ 483,642 $1,205,830
BT Pyramid Directed Account Cash Fund* 1,467 1,467 1,467
Total Fund A $ 485,109 $1,207,297
Fund B
BT Pyramid Large Capitalization Equity
Index Fund* 71 $ 76,822 $ 120,412
BT Pyramid Discretionary Account Cash
Fund* 363 363
Total Fund B $ 77,185 $ 120,775
Fund C
Insurance Contracts:
Metropolitan Life Ins. Co.
Matures through 6/30/98; 4.67% 11,631 $ 11,631 $ 11,503
Matures through 3/1/99; 5.27% 1,737 1,737 1,713
Matures through 3/31/99; 5.11% 2,893 2,893 2,841
Matures through 5/15/99; 7.38% 12,067 12,067 12,398
Prudential Asset Management
Matures 6/1/97; 7.08% 5,988 5,988 6,027
Matures 7/31/97; 6.3% 11,782 11,782 11,828
N. Y. Life Insurance Co.
Matures 3/31/97; 7.7% 7,825 7,825 7,872
Matures 9/9/98; 5.2% 11,827 11,827 11,693
Matures through 8/16/99; 7.33% 11,834 11,834 12,259
Commonwealth Life Insurance Co.
Matures 1/5/99; 8.28% 5,857 5,857 6,152
Matures 3/1/04, 6.67% 9,469 9,469 9,702
Hartford Life Insurance Co.
Matures 1/4/99; 7.97% 5,823 5,823 6,077
AIG Life Insurance Co.
Matures 9/15/01, 6.90% 5,095 5,095 5,261
</TABLE>
<TABLE>
Textron Savings Plan
Line 27a--Schedule of Assets Held for Investment Purposes (continued)
(In Thousands)
<CAPTION>
Number of Cost/
Shares or Contract Fair
Units Value Value
<S> <C> <C> <C>
Fund C (continued)
Allstate Insurance Co.
Matures 12/15/00; 6.87% 11,158 11,158 11,486
John Hancock Mutual Life Ins. Co.
Matures 6/30/01; 6.75% 5,485 5,485 5,623
Matures 1/2/96; 8.36% 5,099 5,099 5,328
Matures 6/30/00; 6.50% 5,467 5,467 5,545
Mass Mutual Life Ins. Co.
Matures through 1/31/97; 6.11% 3,022 3,022 3,025
SunAmerica Life Insurance Co.
Matures 1/31/97; 6.11% 10,582 10,582 10,491
Government Obligations:
Federal National Mortgage Association
Matures 4/25/17; 6.5% 5,102 5,102 5,092
Matures 9/25/07; 5.8% 1,283 1,283 1,277
United States Dept. Veterans Affairs
Matures 3/15/01 2,723 2,718 2,734
BT Pyramid Directed Acct. Cash Fund * 7,518 7,518 7,518
Total Fund C $161,262 $163,445
Fund H
BT Pyramid Directed Acct. Cash Fund* 160 $ 160 $ 160
Total Fund H $ 160 $ 160
Total all funds $723,716 $1,491,677
Loans
Loans Receivable (9.5% - 11%) 41 $ 41 $ 41
</TABLE>
* Indicates party-in-interest to the Plan
<TABLE>
Textron Savings Plan
Line 27d--Schedule of Reportable Transactions
(In Thousands)
Year ended December 31, 1996
<CAPTION>
Current
Value of
Asset on
Identity Purchase Selling Cost of Transactio Net Gain
of Party Description Price Price Assets Date (Loss)
Category (iii)--Series of transactions in excess of 5% of plan assets
<C> <S> <C> <C> <C> <C> <C>
** Purchase of 1,145,083 shares of
Textron Inc. Common Stock in 229
transactions $94,453 $94,453 $94,453
Sale of 2,295,767 shares of
Textron Inc. Common Stock $185,411 75,809 $109,602
Bankers Purchase of 139,971,410 units of
Trust BT Pyramid Directed Account
Company* Cash Fund in 210 transactions 139,971 139,971 139,971
Sale of 139,638,222 units of BT
Pyramid Directed Account Cash
Fund in 217 transactions 139,638 139,638 139,638
</TABLE>
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.
TEXTRON SAVINGS PLAN
ANNUAL REPORT ON FORM 11-K
FOR FISCAL YEAR ENDED DECEMBER 31, 1996
EXHIBIT INDEX
Exhibit Number Description
23 Consent of Independent Auditors
Exhibit 23
Consent of Independent Auditors
We consent to the incorporation by reference in the Registration
Statement (Form S-8 No. 33-63741) pertaining to the Textron
Savings Plan of Textron Inc. of our report dated May 2, 1997,
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, 1996.
ERNST & YOUNG LLP
Providence, Rhode Island
June 23, 1997
