SECURITES AND EXCHANGE COMMISSION
Washington, DC 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, 997
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
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, 1998 By: /s/August F. DeLuca
Vice President - Finance/CFO/Treasurer
Financial Statements
and Supplemental Schedules
Elco Textron Inc.
Profit Sharing and Savings Plan
Years ended December 31, 1997 and 1996
Elco Textron Inc.
Profit Sharing and Savings Plan
Financial Statements and
Supplemental Schedules
Years ended December 31, 1997 and 1996
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 for
Benefits With Fund Information 4
Notes to Financial Statements 6
Supplemental Schedules
Line 27a--Schedule of Assets Held for Investment Purposes 12
Line 27d--Schedule of Reportable Transactions 13
<PAGE>
Report of Independent Auditors
Administrative Committee
Elco Textron Inc. Profit Sharing and Savings Plan
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, 1997
and 1996, 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, 1997 and
1996, 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, 1997, 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 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.
/s/Ernst & Young LLP
April 17, 1998
<PAGE>
<TABLE>
Elco Textron, Inc.
Profit Sharing and Savings Plan
Statements of Net Assets Available for Benefits with Fund Information
December 31, 1997
Fund Information
<S> <C> <C> <C> <C> <C> <C>
Money Textron
Market Balanced Mortgage & Stock Loan Total
Fund Fund Bond Fund Fund Fund Funds
Assets
Investments, at fair value
(Note 3):
Shares of registered investment
companies:
Fixed income $5,576,828 $ - $14,259,829 $ - $ - $19,836,657
Balanced - 48,397,498 - - - 48,397,498
Common stocks - 261,014 - 17,292,250 - 17,553,264
Preferred stocks - 270,272 - - - 270,272
Short-term investments 26 103,081 98 1,027 - 104,232
Participant notes receivable - - - - 1,013,556 1,013,556
Total investments 5,576,854 49,031,865 14,259,927 17,293,277 1,013,556 87,175,479
Receivables:
Interest and dividends 16,776 55,250 10,842 69,882 - 152,750
Total receivables 16,776 55,250 10,842 69,882 - 152,750
Due to (from) other fund 6,677 (6,541) 2,235 (2,371) - -
Other (7,505) 13,165 7,803 (1,170) - 12,293
Cash 2 5 485 (10) - 482
Net assets available for benefits $5,592,804 $49,093,744 $14,281,292 $17,359,608 $1,013,556 $87,341,004
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
Elco Textron, Inc.
Profit Sharing and Savings Plan
Statements of Net Assets Available for Benefits with Fund Information
December 31, 1996
<S> <C> <C> <C> <C> <C> <C>
Fund Information
Money Textron
Market Balanced Mortgage & Stock Loan Total
Fund Fund Bond Fund Fund Fund Funds
Assets
Investments, at fair value
(Note 3):
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 - 7,801,308 6,627,276 - - 14,428,584
obligations
Corporate and municipal - 2,302,400 3,833,272 - - 6,135,672
obligations
Foreign bonds - 148,500 348,467 - - 496,967
Short-term investments 6,483,572 7,749,102 607,092 - - 14,839,766
Participant notes receivable - - - - 50,182 50,182
Total investments 6,483,572 45,332,238 16,478,877 6,189,760 50,182 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
Net assets available for
benefits $7,036,829 $47,501,520 17,124,692 $6,733,463 $50,182 $78,446,686
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
Elco Textron, Inc.
Profit Sharing and Savings Plan
Statements of Changes in Net Assets Available for Benefits with Fund Information
Year ended December 31, 1997
<S> <C> <C> <C> <C> <C> <C>
Fund Information
Money Textron
Market Balanced Mortgage & Stock Loan Total
Fund Fund Bond Fund Fund Fund Funds
Additions to net assets
attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments
(Note 3) $ (27,769) $ 8,012,971 $ 71,246 $ 2,179,114 $ - $10,235,562
Interest and dividend income 351,792 1,465,685 991,359 220,512 19,693 3,049,041
324,023 9,478,656 1,062,605 2,399,626 19,693 13,284,603
Contributions:
Participants 99,536 649,262 141,875 199,588 - 1,090,261
Employer 317,994 1,039,166 270,826 307,041 - 1,935,027
417,530 1,688,428 412,701 506,629 - 3,025,288
Total additions 741,553 11,167,084 1,475,306 2,906,255 19,693 16,309,891
Deductions from net assets
attributed to:
Benefits paid to participants 2,641,487 2,651,115 1,307,802 443,897 - 7,044,301
Administrative expenses 257 304,475 66,540 - - 371,272
Total deductions 2,641,744 2,955,590 1,374,342 443,897 - 7,415,573
Net increase (decrease) prior to (1,900,191) 8,211,494 100,964 2,462,358 19,693 8,894,318
transfers
Interfund transfers, net 456,166 (6,619,270) (2,944,364) 8,163,787 943,681 -
Net increase (decrease) (1,444,025) 1,592,224 (2,843,400) 10,626,145 963,374 8,894,318
Net assets available for 7,036,829 47,501,520 17,124,692 6,733,463 50,182 78,446,686
benefits, beginning of year
Net assets available for $5,592,804 $49,093,744 $14,281,292 $17,359,608 $1,013,556 $87,341,004
benefits, end of year
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
Elco Textron, Inc.
Profit Sharing and Savings Plan
Statements of Changes in Net Assets Available for Benefits with Fund Information
Year ended December 31, 1996
<S> <C> <C> <C> <C> <C> <C>
Fund Information
Money Textron
Market Balanced Mortgage & Stock Loan Total
Fund Fund Bond Fund Fund Fund Funds
Additions to net assets
attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ - $ 4,091,825 $ (176,520) $ 565,170 $ - $ 4,480,475
(Note 3)
Interest and dividend income 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 prior to transfers 93,063 6,801,064 71,627 1,235,278 - 8,201,032
Transfer from Elco Textron Inc.
Employee Stock Ownership Plan 2,249,811 8,433,912 2,370,760 2,063,144 - 15,117,627
(Note 1)
Interfund transfers, net 3,412,286 (4,007,391) (2,884,620) 3,435,041 44,684 -
Net increase (decrease) 5,755,160 11,227,585 (442,233) 6,733,463 44,684 23,318,659
Net assets available for 1,281,669 36,273,935 17,566,925 - 5,498 55,128,027
benefits, beginning of year
Net assets available for $7,036,829 $47,501,520 $17,124,692 $6,733,463 $50,182 $78,446,686
benefits, end of year
See accompanying notes.
</TABLE>
<PAGE>
1. Description of the Plan
The following description of the Elco Textron Inc. Profit
Sharing and Savings Plan (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) and Textron Inc. All full-time employees of
the Company's Corporate Division, Precision Formed Products
Division, Precision Commercial Division of Camcar, Heat
Treat and Finishes Division, Tool Manufacturing Division,
Construction Products Division and Textron Logistics Corp.
are eligible to participate in the Plan, commencing with the
first annual anniversary of their employment. During 1997,
the Plan was amended such that no employee shall become a
participant in the Plan after April 1, 1997. 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 Pla (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.
Contributions and Vesting
During 1997, the Plan was also amended such that all
participant and employer profit-sharing and additional
employer contributions were discontinued as of June 30,
1997. All participants became fully vested in the employer
match, profit-sharing and additional employer contributions
at June 30, 1997.
<PAGE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Notes to Financial Statements (continued)
1. Description of the Plan (continued)
Prior to June 30, 1997, the Company annually contributed to
the Plan the lesser of 10 percent of the Company's net
profits for the plan year plus an additional amount, which
was 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. In addition, the Company
could make an additional contribution in such amount as
determined at the Board's discretion. The Company made
discretionary contributions of $562,000 and $1,120,000
during the years ended December 31, 1997 and 1996,
respectively. Active participants could elect to make
contributions not to exceed 14 percent of their earnings
prior to June 30, 1997. All contributions were discontinued
June 30, 1997, when the Plan was frozen.
Investment Options
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 in
mutual funds which invest primarily 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 mutual
fund which invests primarily 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 mutual fund which invests primarily in a combination of
short- and medium-term domestic and foreign corporate
bonds and fixed income government securities.
Textron Stock Fund - Funds are primarily invested
exclusively in Textron Inc. Common Stock. Cash dividends,
if any, on Textron common stock are 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.
Participants may change their investment options as of
January 1 and July 1.
<PAGE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Notes to Financial Statements (continued)
1. Description of the Plan (continued)
Participant Accounts
The allocation of Plan income or loss to active participants
is made in the same ratio that a participant's account bears
to the sum of the balances of all participants' accounts,
taking into consideration the dates on which additional
contributions 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 participant's 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.
Participant Notes Receivable
Participants may borrow an amount that does not exceed the
lesser of $50,000 or one-half the nonforfeitable value of
their account balance. Loans must be repaid within five
years and bear interest at the current prime rate.
2. Summary of Significant Accounting Policies
Investment Valuation
The Plan's investments are stated at fair value. The shares
of the registered investment companies are valued at quoted
market prices which represent the net asset values of the
shares held by the Plan at year end. 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. Participant
notes receivable are valued at their outstanding balances,
which approximate fair value.
<PAGE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Notes to Financial Statements (continued)
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.
Reclassifications
Certain reclassifications were made to the 1996 balances to
conform to the 1997 presentation.
3. Investments
In accordance with the terms of the trust agreement, as
amended January 1, 1976, a trust fund administered by First
of America Trust Company (FOA) had custody of all plan
assets, except cash and participant loans.
The fair value of individual investments that exceed five
percent of the Plan's net assets is as follows:
1997 1996
Parkstone U.S. Government Obligations
Money Market Fund, 10,304,534 units * $10,304,534
Parkstone Prime Obligations Money
Market Fund, 4,535,233 units * 4,535,233
Textron Inc. Common Stock, 276,676 and
65,674 shares, respectively $17,292,250 6,189,760
Pegasus Fund, 1,873,150 units 19,836,656 *
George Putnam Fund, 2,691,650 units 48,409,881 *
* Fair value is less than 5% of net assets for the given
year.
<PAGE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Notes to Financial Statements (continued)
3. Investments (continued)
Plan investments (including investments bought, sold, as
well as held during the year) appreciated (depreciated) in
fair value by $10,235,562 and $4,480,475, as follows:
1997 1996
Investments at fair value as determined
by quoted market prices:
Common stocks $ 9,360,729 $4,193,570
Mutual funds 568,420 -
Preferred stocks (106,730) 550,810
U.S. Government and Agency obligations 238,325 (281,640)
Corporate obligations 151,471 (5,980)
Foreign bonds 23,347 23,715
$10,235,562 $4,480,475
The Plan invested 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
ranged 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. In 1997, the outstanding mortgage notes were
sold at approximately cost and the Plan no longer invests in
mortgage notes receivable from employees of the Company.
Effective January 2, 1998, the trust agreement with FOA was
terminated and NBD Bank was appointed trustee and Putnam
Fiduciary Trust Company was appointed as custodian of the
Plan assets.
<PAGE>
Elco Textron Inc.
Profit Sharing and Savings Plan
Notes to Financial Statements (continued)
4. 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.
5. 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 Textron Inc.
6. Plan Termination
As discussed in Note 1, the Plan was frozen effective June
30, 1997, and all participants are 100% vested in their
accounts. Although it has not made a decision to do so, the
Company has the right to terminate the Plan, subject to the
provisions of ERISA.
<PAGE>
Supplemental Schedules
<PAGE>
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, 1997
Par Value Current
Identity /Description or Shares Cost Value
Common stocks:
Raychem Corporation 6,000 $ 164,936 $ 258,379
Security Capital Group Inc. 502 3,953 2,635
Textron Inc.* 276,676 14,571,199 17,292,250
14,740,088 17,553,264
Convertible preferred
stocks:
The Money Store Inc. 12,250 321,798 270,271
Windmere Corporation 162 1 1
321,799 270,272
Short-term investments:
Parkstone Prime Obligations
Money Market Fund* 7,477 7,477 7,478
Principal cash 96,754 96,754 96,754
104,231 104,232
Mutual funds:
Pegasus Funds 1,873,150 19,930,314 19,836,657
George Putnam Fund 2,691,650 47,730,166 48,397,498
67,660,480 68,234,155
Participant notes 7.9% to 9.5%,
receivable various - 1,013,556
maturity dates
$82,826,598 $87,175,479
* Indicates party-in-interest to the Plan.
<PAGE>
<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, 1997
<S> <C> <C> <C> <C> <C> <C>
Current Value
Identity of Description of Purchase Selling Cost of of Asset on Net Gain
Party Involved Assets Price Price Asset Transaction (Loss)
Date
Category (i) - Individual security transactions in excess
of 5 percent of plan assets
First of America Parkstone Prime Obligations
Investment Money Market Fund* $ - $ 4,139,967 $ 4,139,967 $ 4,139,967 $ -
Corporation - 16,164,404 16,164,404 16,164,404 -
- 14,366,571 14,366,571 14,366,571 -
- 11,538,692 11,538,692 11,538,692 -
6,262,085 - 6,262,085 6,262,085 -
7,116,480 - 7,116,480 7,116,480 -
8,781,743 - 8,781,743 8,781,743 -
4,012,884 - 4,012,884 4,012,884 -
16,218,166 - 16,218,166 16,218,166 -
First of America Parkstone U.S.
Investment Government Obligations - 5,129,294 5,129,294 5,129,294 -
Corporation Money Market Fund* _ 19,256,511 19,256,511 19,256,511 -
- 5,907,569 5,907,569 5,907,569 -
14,605,664 - 14,605,664 14,605,664 -
Putnam George Putnam Fund 19,257,332 - 19,257,332 19,257,332 -
16,723,488 - 16,723,488 16,723,488 -
11,538,692 - 11,538,692 11,538,692 -
</TABLE>
<PAGE>
<TABLE>
Elco Textron Inc. Profit Sharing and Savings Plan
Employer Identification Number 36-1033080
Plan Number 010
Line 27d--Schedule of Reportable Transactions (continued)
<S> <C> <C> <C> <C> <C> <C>
Current Value
Identity of Description of Purchase Selling Cost of of Asset on Net Gain
Party Involved Assets Price Price Asset Transaction Date (Loss)
Category (i) - Individual security transactions in excess of 5 percent
of plan assets (continued)
Pegasus Pegasus Funds 14,366,571 - 14,366,571 14,366,571 -
5,907,569 - 5,907,569 5,907,569 -
Textron Inc. Common stock* 4,139,967 - 4,139,967 4,139,967 -
Category (iii) - Series of security transactions in excess of 5 percent
of plan assets
First of America Parkstone Prime Obligations
Investment Money Market Fund* - 87,037,353 87,037,353 87,037,353 -
Corporation
82,509,598 - 82,509,598 82,509,598 -
Parkstone U.S.
Government Obligations - 39,784,014 39,784,014 39,784,014 -
Money Market Fund * 29,479,481 - 29,479,481 29,479,481 -
Putnam George Putnam Fund - 600,743 601,154 600,743 (411)
48,343,529 - 48,343,529 48,343,529 -
Pegasus Pegasus Funds - 351,683 353,355 351,683 (1,672)
20,283,668 - 20,283,668 20,283,668 -
</TABLE>
<PAGE>
<TABLE>
Elco Textron Inc. Profit Sharing and Savings Plan
Employer Identification Number 36-1033080
Plan Number 010
Line 27d--Schedule of Reportable Transactions (continued)
<S> <C> <C> <C> <C> <C> <C>
Current Value
Identity of Description of Purchase Selling Cost of of Asset on Net Gain
Party Involved Assets Price Price Asset Transaction Date (Loss)
Category (iii) - Series of security transactions in excess of 5 percent of plan assets (continued)
U.S. Treasury U.S. Treasury Notes at
6.50%, due 10/15/2006 - 4,245,128 4,098,180 4,245,128 146,948
4,098,180 - 4,098,180 4,098,180 -
Textron Inc. Common stock* - 213,187 189,962 213,187 23,225
9,136,549 - 9,136,549 9,136,549 -
Amcore Mortgage notes - 4,362,535 4,363,328 4,363,328 (793)
There were no category (ii) or (iv) transactions in 1997.
* Indicates party-in-interest to the Plan.
</TABLE>
Exhibit 23
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 April 17, 1998, 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, 1997.
ERNST & YOUNG LLP
Providence, Rhode Island
June 23, 1998
