-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Vjazbadhb97dJLIOzhQbXZqksoda+ai40HTGMiBc8fIojfwAtV3avjoHOctxn3Cr JgBn0p2eFg0knABt/oUSjQ== 0000217346-99-000010.txt : 19990629 0000217346-99-000010.hdr.sgml : 19990629 ACCESSION NUMBER: 0000217346-99-000010 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990628 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEXTRON INC CENTRAL INDEX KEY: 0000217346 STANDARD INDUSTRIAL CLASSIFICATION: AIRCRAFT & PARTS [3720] IRS NUMBER: 050315468 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-05480 FILM NUMBER: 99653721 BUSINESS ADDRESS: STREET 1: 40 WESTMINSTER ST CITY: PROVIDENCE STATE: RI ZIP: 02903 BUSINESS PHONE: 4014212800 MAIL ADDRESS: STREET 1: 40 WESTMINSTER ST CITY: PROVIDENCE STATE: RI ZIP: 02903 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN TEXTRON INC DATE OF NAME CHANGE: 19710510 11-K 1 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 1 Textron Savings Plan Statement of Net Assets Available for Benefits with Fund Information (In Thousands) December 31, 1998
Fund Information Fund Fund Fund Fund Loan A B C H Fund Total 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
See notes to financial statements. 2 Textron Savings Plan Statement of Net Assets Available for Benefits with Fund Information (In Thousands) December 31, 1997
Fund Information Fund Fund Fund Fund Loan A B C H Fund Total 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
See notes to financial statements. 3 Textron Savings Plan Statement of Changes in Net Assets Available for Benefits with Fund Information (In Thousands) Year ended December 31, 1998
Fund Information Fund Fund Fund Fund Loan A B C H Fund Total 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
See notes to financial statements. 4 Textron Savings Plan Statement of Changes in Net Assets Available for Benefits with Fund Information (In Thousands)
Year ended December 31, 1997 Fund Information Fund Fund Fund Fund Loan A B C H Fund Total 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
See notes to financial statements. 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. 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. 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. 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. 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. 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: December 31 1998 1997 (Dollar amounts in thousands) 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
During 1998 and 1997, the Plan's investments (including investments bought, sold, and held during the year) appreciated (depreciated) in fair value as follows: December 31 1998 1997 (In thousands) 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
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: December 31 1998 1997 (In thousands) 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
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. 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. 14 Supplemental Schedules Textron Savings Plan Employer Identification Number 05-0315468 Plan Number 030 Line 27a--Schedule of Assets Held for Investment Purposes (In Thousands) December 31, 1998
Number of Shares or Units Fair Identity of Issue Cost Value 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 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
* Indicates party-in-interest to the Plan 16 Textron Savings Plan Employer Identification Number 05-0315468 Plan Number 030 Line 27d--Schedule of Reportable Transactions (In Thousands) Year ended December 31, 1998
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 ** 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
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. 17 EX-23 2 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 -----END PRIVACY-ENHANCED MESSAGE-----