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, 1998
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, 1998 and 1997
Statement of Changes in Net Assets Available for Benefits
for each of the two years ended December 31, 1998 and 1997
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 28, 1999
Financial Statements
and Supplemental Schedules
Textron Savings Plan
Years ended December 31, 1998 and 1997
with Report of Independent Auditors
Textron Savings Plan
Financial Statements
and Supplemental Schedules
Years ended December 31, 1998 and 1997
Contents
Report of Independent Auditors 1
Audited Financial Statements
Statement of Net Assets Available for Benefits With Fund 2
Information, December 31, 1998
Statement of Net Assets Available for Benefits With Fund 3
Information, December 31, 1997
Statement of Changes in Net Assets Available for Benefits With 4
Fund Information, Year ended December 31, 1998
Statement of Changes in Net Assets Available for Benefits With 5
Fund Information, Year ended December 31, 1997
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
Textron Inc.
Plan Sponsor
Textron Savings Plan
We have audited the accompanying statements of net assets available for benefits
of Textron Savings Plan as of December 31, 1998 and 1997, 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, 1998 and 1997, 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, 1998, and reportable
transactions for the year then ended, are presented for purpose of additional
analysis and are not a required part of the financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These supplemental schedules are the responsibility of
the Plan's management. 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 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
ERNST & YOUNG LLP
May 27, 1999
<PAGE>1
<TABLE>
Textron Savings Plan
Statement of Net Assets Available for Benefits with Fund Information
(In Thousands)
December 31, 1998
<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 3):
Textron Inc. Common Stock $1,694,963 $ - $ - $ - $ - $1,694,963
U.S. Government securities - - 3,875 - - 3,875
Mortgage-backed securities - - 11,430 - - 11,430
Common/collective trust funds 1,102 201,030 20,249 211 - 222,592
Participant notes receivable - - - - 16,391 16,391
Total investments 1,696,065 201,030 35,554 211 16,391 1,949,251
Insurance contracts, at contract
value (Notes 2 and 3) - - 116,155 - - 116,155
Total investments 1,696,065 201,030 151,709 211 16,391 2,065,406
Receivables:
Employee contributions - 301 65 - - 366
Investment income 6,354 - 97 1 74 6,526
Interfund receivable (payable) (1,331) 536 795 - - -
Other 27 84 130 - - 241
Total receivables 5,050 921 1,087 1 74 7,133
Total assets 1,701,115 201,951 152,796 212 16,465 2,072,539
Liabilities
Payables:
Excess employer contributions 1,638 - - - - 1,638
Total liabilities 1,638 - - - - 1,638
Net assets available for benefits $1,699,477 $201,951 $152,796 $ 212 $16,465 $2,070,901
</TABLE>
See notes to financial statements.
<PAGE>2
<TABLE>
Textron Savings Plan
Statement of Net Assets Available for Benefits with Fund Information
(In Thousands)
December 31, 1997
<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 3):
Textron Inc. Common Stock $1,475,645 $ - $ - $ - $ - $ 1,475,645
U. S. Government securities - - 11,882 - - 11,882
Common/collective trust funds 4,160 155,836 7,555 75 - 167,626
Participant notes receivable - - - - 5,533 5,533
Total investments 1,479,805 155,836 19,437 75 5,533 1,660,686
Insurance contracts, at contract
value (Notes 2 and 3) - - 128,530 - - 128,530
Total investments 1,479,805 155,836 147,967 75 5,533 1,789,216
Receivables:
Investment income 5,897 4 763 - - 6,664
Interfund receivable (payable) (405) 47 358 - - -
Other 57 1 - - - 58
Total receivables 5,549 52 1,121 - - 6,722
Total assets 1,485,354 155,888 149,088 75 5,533 1,795,938
Liabilities
Payables:
Excess employer contributions 595 197 172 - - 964
Investments purchased 1,981 - 709 - - 2,690
Total liabilities 2,576 197 881 - - 3,654
Net assets available for benefits $1,482,778 $155,691 $148,207 $ 75 $ 5,533 $ 1,792,284
</TABLE>
See notes to financial statements.
<PAGE>3
<TABLE>
Textron Savings Plan
Statement of Changes in Net Assets Available for Benefits with Fund Information
(In Thousands)
Year ended December 31, 1998
<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 3) $ 310,610 $ 44,545 $ 25 $- $ - $ 355,180
Dividends 25,883 - - - - 25,883
Interest 124 31 9,305 9 1,047 10,516
336,617 44,576 9,330 9 1,047 391,579
Contributions:
Participants 69,074 15,349 9,340 - - 93,763
Employer, net 39,847 - - - - 39,847
108,921 15,349 9,340 - - 133,610
Total additions 445,538 59,925 18,670 9 1,047 525,189
Deductions from net assets
attributed to:
Benefits paid to participants 204,225 15,548 19,757 56 4,636 244,222
Administrative expenses 1,945 217 188 - - 2,350
Total deductions 206,170 15,765 19,945 56 4,636 246,572
Net increase (decrease) prior 239,368 44,160 (1,275) (47) (3,589) 278,617
to interfund transfers
Interfund transfers, net (22,669) 2,100 5,864 184 14,521 -
Net increase 216,699 46,260 4,589 137 10,932 278,617
Net assets available for benefits:
Beginning of year 1,482,778 155,691 148,207 75 5,533 1,792,284
End of year $ 1,699,477 $ 201,951 $152,796 $ 21 $16,465 $2,070,901
</TABLE>
See notes to financial statements.
<PAGE>4
<TABLE>
Textron Savings Plan
Statement of Changes in Net Assets Available for Benefits with Fund Information
(In Thousands)
<CAPTION>
Year ended December 31, 1997
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 (depreciation)
in fair value of investments
(Note 3) $375,300 $ 38,944 $ (59) $ - $ - $414,185
Dividends 24,104 - - - - 24,104
Interest 121 21 9,676 8 1 9,827
399,525 38,965 9,617 8 1 448,116
Contributions:
Participants 61,433 12,934 8,388 - - 82,755
Employer, net 35,263 - - - - 35,263
96,696 12,934 8,388 - - 118,018
Total additions 496,221 51,899 18,005 8 1 566,134
Deductions from net assets
attributed to:
Benefits paid to participants 206,854 16,731 28,319 131 79 252,114
Participant rollovers due to
sale of division (Note 5) 7,967 1,070 1,229 - - 10,266
Administrative expenses 1,425 140 172 - - 1,737
Total deductions 216,246 17,941 29,720 131 79 264,117
Net increase (decrease) prior 279,975 33,958 (11,715) (123) (78) 302,017
to interfund transfers
Interfund transfers, net (6,627) 1,976 (956) 37 5,570 -
Net increase (decrease) 273,348 35,934 (12,671) (86) 5,492 302,017
Net assets available for benefits:
Beginning of year 1,209,430 119,757 160,878 161 41 1,490,267
End of year $1,482,778 $ 155,691 $ 148,207 $ 75 $ 5,533 $ 1,792,284
</TABLE>
See notes to financial statements.
<PAGE>5
Textron Savings Plan
Notes to Financial Statements
December 31, 1998 and 1997
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 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
March 3, 1997, with State Street Bank and Trust Company (the "Trustee").
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 State Street Bank S&P 500 Index with Futures
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, mortgage-backed securities, short-term securities, money
market instruments and other fixed income instruments at the discretion of
Textron or an investment manager designated by Textron.
<PAGE>6
Fund H is invested in the State Street Bank and Trust Company Short Term
Investment 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 (State Street Bank and Trust Company Short Term Investment Fund).
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% of the first 5% of eligible salary by Textron subject to certain
ERISA restrictions and plan limits, are recorded when Textron makes payroll
deductions from participants' wages. For the years ending December 31, 1998 and
1997, employee contributions included rollovers of approximately $3.4 million
and $3.2 million, respectively.
Textron makes contributions to the Plan based on estimated contribution levels.
In addition, Textron may make additional discretionary contributions. There
were no discretionary contributions made by Textron in 1998 or 1997. The excess
of the estimated contributions over the actual contributions by the participants
is not allocated to participant accounts; rather such amounts are used to reduce
future Textron contributions and are disclosed as an excess contribution in the
statement of net assets available for benefits. In addition, 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.
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.
<PAGE>7
At December 31, the number of units outstanding and the values for each unit
were:
1998 1997
Number of Value Number Value
Fund Units per Unit Of Units per Unit
B 22,952,153 $ 8.798796 23,021,704 $ 6.762800
C 56,121,219 2.722600 58,043,594 2.553375
H 99,952 2.123869 17,183 4.368733
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
$5,000 when the account first becomes distributable. If the value of the
account is $5,000 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 the 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 Benefits 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.
<PAGE>8
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.
Plan Termination
Although it has not expressed any intent to do so, Textron has the right under
the Plan to discontinue its contributions at any time and to terminate the Plan
subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100 percent vested in their accounts.
Participant Notes Receivable
Active participants may have one loan outstanding and may borrow a minimum of
$1,000 up to a maximum of the lesser of one-half of their vested balance or
$50,000 less the participant's highest outstanding loan balance during the
twelve-month period preceding the new loan request. Interest is charged at a
rate of Bankers Trust Prime Rate plus 1%. A $50 fee will be charged to the
participant to cover the cost of administration. The loan terms may range from
one to five years and are repaid primarily through automatic payroll deductions.
<PAGE>9
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 State Street S&P
500 Index with Futures 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. Valuations of equity investments in mortgage-backed securities are
estimated by external asset managers. Factors such as real estate type, market
conditions, property performance, valuation of comparable properties, and
consultation with external real estate advisors are considered in determining
fair value. The State Street Bank and Trust Company Short Term Investment Fund
includes pooled temporary investments and are stated at cost which approximates
market value. Participant notes receivable are valued at their outstanding
balances which approximates fair value.
Insurance contracts are fully benefit responsive and are valued at contract
value (Note 3) 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.
<PAGE>10
Administrative Expenses
All administrative expenses are paid from Plan assets.
3. Fair Value of Investments
The Plan's investments are held by a bank-administered trust fund. The fair
value of individual investments that represent 5% or more of the fair value of
the Plan's net assets is as follows:
<TABLE>
December 31
1998 1997
(Dollar amounts in thousands)
<S> <C> <C>
Investments at fair value as determined by
quoted market price:
Textron Inc. Common Stock $ 1,694,963 $ 1,475,645
Investments at estimated fair value:
State Street S&P 500 Index with
Futures Fund 200,848 154,501
</TABLE>
During 1998 and 1997, the Plan's investments (including investments bought,
sold, and held during the year) appreciated (depreciated) in fair value as
follows:
<TABLE>
December 31
1998 1997
(In thousands)
<S> <C> <C>
Investments at fair value as determined by
quoted market price:
Textron Inc. Common Stock $ 310,610 $ 375,300
U.S. Government securities 51 (18)
310,661 375,282
Investments at estimated fair value:
Common/collective trust funds 44,545 38,944
Mortgage-backed securities (26) (41)
$ 355,180 $ 414,185
</TABLE>
<PAGE>11
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 $116 million and $131 million at December 31, 1998 and 1997,
respectively. The average yield approximated 4.48% and 5.70% for the years
ended December 31, 1998 and 1997, respectively, on contracts with crediting
interest rates ranging from 4.67% to 8.28% for both 1998 and 1997.
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. 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.
4. 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>
December 31
1998 1997
(In thousands)
<S> <C> <C>
Net assets available for benefits
per financial statements $ 2,070,901 $ 1,792,284
Amounts allocated to withdrawn (36,910) (24,866)
participants
Net assets available for benefits
per Form 5500 $ 2,033,991 $ 1,767,418
</TABLE>
<PAGE>12
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
1998 19967
(In thousands)
Benefits paid to participants per the
financial statements $ 244,222 $ 252,114
Add: Amounts allocated on Form 5500
to withdrawn participants at the
end of the year 36,910 24,866
Less: Amounts allocated on Form 5500
to withdrawn participants at the
beginning of the year (24,866) (41,632)
Benefits paid to participants per Form 5500 $ 256,266 $ 235,348
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.
5. Participant Rollovers due to Sale of Division
During 1996, Textron sold the Textron Aerostructures division. In conjunction
with this sale, during 1997, the accounts of the participants employed by this
division were rolled into the qualified plan of the purchaser.
6. Party-in-Interest Transactions
The Plan invests in mutual funds managed by State Street Bank and Trust Company,
who is also the Plan's trustee. Therefore, these transactions qualify as party-
in-interest transactions.
7. 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.
<PAGE>13
8. Subsequent Events
Effective October 1999, Putnam Investments will become the Plan's recordkeeper
and trustee. The Plan will move from a monthly to a daily valuation and will
provide participants the opportunity to increase diversification and utilize the
Plan more effectively.
9. Year 2000 Issue (Unaudited)
Many computer programs, including those used by Textron and Textron's suppliers
(including third-party service providers to the Plan), use only two digits to
identify a year, and were not designed to handle years beginning after 1999.
These programs, some of which are critical to operations, could fail to properly
process data that contain dates after 1999 unless they are modified. Textron
commenced a company-wide effort to substantially complete the necessary
modifications to its computer programs by early 1999. Textron also is working
with its principal suppliers (including third-party service providers to the
Plan) and customers to ensure that problems in their computer programs will not
materially affect Textron or the Plan. Textron believes it is on track to
resolve this issue in a timely fashion without having a material adverse effect
on the business, operations or financial condition of Textron and of the Plan.
<PAGE>14
Supplemental Schedules
Textron Savings Plan
<TABLE>
Employer Identification Number 05-0315468
Plan Number 030
Line 27a--Schedule of Assets Held for Investment Purposes
(In Thousands)
December 31, 1998
<CAPTION>
Number of Shares
or Units Fair
Identity of Issue Cost Value
<S> <C> <C> <C>
Common Stock:
Textron Inc.* 22,321 $ 559,126 $1,694,963
Common/Collective Trust Funds:
State Street S&P 500 Index w/Futures
Fund* 981 $ 130,847 $ 200,848
State Street Bank and Trust Company
Short Term Investment Fund* 21,744 21,744 21,744
Total Common/Collective Trust Funds: $ 152,591 $ 222,592
Insurance Contracts:
Metropolitan Life Ins. Co.*
Matures 3/01/99; 5.27% 1,925 $ 1,925 $ 1,925
Matures 3/31/99; 5.11% 3,196 3,196 3,196
Matures 5/15/99; 7.38% 6,957 6,957 6,957
N.Y. Life Insurance Co.
Matures 8/16/99; 7.33% 6,834 6,834 6,835
Commonwealth Life Insurance Co.
Matures 1/5/99; 8.28% 6,867 6,867 6,867
Hartford Life Insurance Co.
Matures 1/4/99; 7.97% 6,788 6,788 6,788
AIG Life Insurance Co.
Matures 9/15/01; 6.90% 5,822 5,822 5,826
Allstate Insurance Co.
Matures 12/15/00; 6.87% 10,031 10,031 10,036
Cuisse Des Depots Group
Matures 12/15/00: 5.64% 9,900 9,900 9,901
<PAGE>15
John Hancock Mutual Life Ins. Co.
Matures 6/15/01; 6.71% 5,612 5,612 5,615
Matures 6/30/00; 6.50% 6,201 6,201 6,203
Matures 9/15/01; 7.15% 5,855 5,855 5,859
State Street Bank
Matures 9/15/06; 6.2%* 19,364 19,364 19,385
Principal Mutual Life
Matures 6/14/01; 6.58% 8,947 8,947 8,952
SunAmerica Life Insurance Co.
Matures 6/15/00; 5.85% 11,856 11,856 11,858
Total Insurance Contracts $ 116,155 $ 116,203
Mortgage-backed Securities:
Residential Asset Security Mortgage
Matures 3/25/26; 5.46% 2,720 2,727 2,727
Country Wide Home Equity
Matures 1/15/28; 5.72% 3,771 3,770 3,708
First USA Credit Card
Matures 9/18/06: 5.28% 5,000 4,995 4,995
Total Mortgage-backed Securities: $ 11,492 $ 11,430
U.S. Government Securities
Federal Home Loan Mortgage
Matures 5/15/21; 5.00% 4,000 $ 3,824 $ 3,875
Participant notes receivable (with
interest rates ranging from 9.5% - 16,391
to 11%)
Total assets held for investment purposes $ 843,188 $ 2,065,454
</TABLE>
* Indicates party-in-interest to the Plan
<PAGE>16
<TABLE>
Textron Savings Plan
Employer Identification Number 05-0315468
Plan Number 030
Line 27d--Schedule of Reportable Transactions
(In Thousands)
Year ended December 31, 1998
<CAPTION>
Current
Purchase Selling Cost of Value of Net Gain
Identity of Description Price Price Assets Asset on (Loss)
Party Transaction
Date
Category (iii) -- Individual transactions in excess of 5% of plan assets
<S> <S> <C> <C> <C> <C> <C>
** Sale of 6,255 shares of
Textron Inc. Common Stock
in 23 transactions $ 285,128 $ 145,644 $ 139,484
** Purchase of 4,965 shares
of Textron Inc. Common
Stock in 86 transactions $ 193,837 193,837 $193,837
State Street Sale of 212,405 shares of
Bank* State Street Bank and Trust
Co. Short Term Investment
Fund in 188 transactions 212,405 212,405
State Street Purchase of 221,024 shares of
Bank* State Street Bank and Trust
Co. Short Term Investment
Fund in 313 transactions 221,024 221,024 221,024
</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.
<PAGE>17
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 our report dated
May 27, 1999, 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, 1998.
By:/s/Ernst & Young LLP
ERNST & YOUNG LLP
Providence, Rhode Island
June 28, 1999
