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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>/in/edgar/work/20000626/0000217346-00-000005/0000217346-00-000005.txt : 20000920
<SEC-HEADER>0000217346-00-000005.hdr.sgml : 20000920
ACCESSION NUMBER:		0000217346-00-000005
CONFORMED SUBMISSION TYPE:	11-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	19991231
FILED AS OF DATE:		20000626

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TEXTRON INC
		CENTRAL INDEX KEY:			0000217346
		STANDARD INDUSTRIAL CLASSIFICATION:	 [3720
]		IRS NUMBER:				050315468
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231
</COMPANY-DATA>

		FILING VALUES:
			FORM TYPE:		11-K
			SEC ACT:		
			SEC FILE NUMBER:	001-05480
			FILM NUMBER:		660598
</FILING-VALUES>

			BUSINESS ADDRESS:	
				STREET 1:		40 WESTMINSTER ST
				CITY:			PROVIDENCE
				STATE:			RI
				ZIP:			02903
				BUSINESS PHONE:		4014212800
</BUSINESS-ADDRESS>

				MAIL ADDRESS:	
					STREET 1:		40 WESTMINSTER ST
					CITY:			PROVIDENCE
					STATE:			RI
					ZIP:			02903
</MAIL-ADDRESS>

					FORMER COMPANY:	
						FORMER CONFORMED NAME:	AMERICAN TEXTRON INC
						DATE OF NAME CHANGE:	19710510
</FORMER-COMPANY>
</FILER>
</SEC-HEADER>
<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>0001.htm
<TEXT>


[TYPE]
<HTML>

<head>
<TITLE>SECURITIES AND EXCHANGE COMMISSION</TITLE>
</head>

<body>

<font FACE="Classic">
<p ALIGN="center">&nbsp;</p>
<p ALIGN="center">SECURITIES AND EXCHANGE COMMISSION</p>
<p ALIGN="center">&nbsp;</p>
<p ALIGN="center">WASHINGTON, D.C. 20549</p>
<p ALIGN="center">&nbsp;</p>
<p ALIGN="center">&nbsp;</p>
<p ALIGN="center">FORM 11-K</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
</font>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="649">
  <tr>
    <td WIDTH="9%" VALIGN="TOP"><font FACE="Classic">
      <p ALIGN="JUSTIFY">[X]</font></td>
    <td WIDTH="91%" VALIGN="TOP"><font FACE="Classic">
      <p ALIGN="JUSTIFY">ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934<br>
      for the fiscal year ended December 31, 1999<br>
      Commission File Number 1-5480</font></td>
  </tr>
</TABLE>
<font FACE="Classic">
<p ALIGN="JUSTIFY">&nbsp;</p>
</font>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="649">
  <tr>
    <td WIDTH="9%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="91%" VALIGN="TOP"><font FACE="Classic">
      <p ALIGN="JUSTIFY">A. Full title of the plan and address of the plan:</font></td>
  </tr>
</TABLE>
<font FACE="Classic">
<p ALIGN="CENTER">TEXTRON SAVINGS PLAN</p>
<p ALIGN="CENTER">40 Westminster Street</p>
<p ALIGN="CENTER">Providence, Rhode Island 02903</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
</font>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="649">
  <tr>
    <td WIDTH="9%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="91%" VALIGN="TOP"><font FACE="Classic">
      <p ALIGN="JUSTIFY">B. Name of issuer of the securities held pursuant to the plan and address of its principal executive<br>
      </font>&nbsp;&nbsp;&nbsp; <font FACE="Classic">office</font></td>
  </tr>
</TABLE>
<font FACE="Classic">
<p ALIGN="CENTER"><br>
<br>
TEXTRON INC.</p>
<p ALIGN="CENTER">40 Westminster Street</p>
<p ALIGN="CENTER">Providence, Rhode Island 02903</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<blockquote>
  <blockquote>
    <p ALIGN="JUSTIFY">REQUIRED INFORMATION</p>
    <p ALIGN="JUSTIFY"><u>Financial Statements and Exhibit</p>
    </u>
    <p ALIGN="JUSTIFY">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:</p>
    <p ALIGN="JUSTIFY">&nbsp;</p>
    <p ALIGN="JUSTIFY">Report of Independent Auditors<br>
    Statement of Net Assets Available for Benefits for each of<br>
    the two years ended December 31, 1999 and 1998<br>
    Statement of Changes in Net Assets Available for Benefits<br>
    for each of the two years ended December 31, 1999 and 1998<br>
    Notes to financial statements</p>
    <p ALIGN="JUSTIFY">Supplemental Schedules:</p>
    <p ALIGN="JUSTIFY">Schedule H, Line 4i - Schedule of Assets Held for
    Investment Purposes at End of Year<br>
    Schedule H, Line 4j - Schedule of Reportable Transactions</p>
    <p ALIGN="JUSTIFY">The Consent of Independent Auditors is filed as an
    exhibit to this Annual Report.</p>
  </blockquote>
</blockquote>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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.</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
</font>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="590">
  <tr>
    <td WIDTH="50%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="50%" VALIGN="TOP"><font FACE="Classic">
      <p ALIGN="JUSTIFY">TEXTRON SAVINGS PLAN</font></td>
  </tr>
  <tr>
    <td WIDTH="50%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="50%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="50%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="50%" VALIGN="TOP"><font FACE="Classic">
      <p ALIGN="JUSTIFY">By<u>: /s/Michael D. Cahn<br>
      </u>&nbsp;&nbsp;&nbsp;&nbsp; Attorney-in-fact</font></td>
  </tr>
  <tr>
    <td WIDTH="50%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="50%" VALIGN="TOP"><font FACE="Classic">
      <p ALIGN="JUSTIFY">Date: June 26, 2000</font></td>
  </tr>
</TABLE>
<font FACE="Classic">
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
</font><b><font SIZE="4">
<p ALIGN="CENTER">&nbsp;</p>
<blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
          </font></b><font SIZE="4">
        <p ALIGN="left">Financial Statements</p>
        </blockquote>
        <p ALIGN="left">and Supplemental Schedules</p>
      </font>
      <blockquote>
        <font SIZE="4">
        <p ALIGN="left">Textron Savings Plan</p>
            </font><i><font SIZE="2">
        </blockquote>
        </blockquote>
        <p ALIGN="CENTER">Years ended December 31, 1999 and 1998</p>
      </font></i>
    <blockquote>
      <i><font SIZE="2">
      <p ALIGN="CENTER">with Report of Independent Auditors</p>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <p ALIGN="CENTER">&nbsp;</p>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
      </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
</font></i><font SIZE="4">
<p ALIGN="CENTER">Textron Savings Plan</p>
<p ALIGN="CENTER">Financial Statements<br>
and Supplemental Schedules</p>
</font><font SIZE="2">
<p ALIGN="CENTER">Years ended December 31, 1999 and 1998</p>
</font><b><font SIZE="4">
<p ALIGN="CENTER">Contents</p>
</font></b><font SIZE="2">
<p>&nbsp;</p>
<p>Report of Independent
Auditors.........................................................................................................................1</p>
<p>Audited Financial Statements</p>
<blockquote>
  <p>Statements of Net Assets Available for
  Benefits................................................................................2<br>
  Statements of Changes in Net Assets Available for
  Benefits.......................................................... 3</p>
</blockquote>
<p>Notes to Financial
Statements.............................................................................................................................
4</p>
<p>Supplemental Schedules</p>
<p>Schedule H, Line 4i, Schedule of Assets Held for Investment Purposes</font> <font SIZE="2">at
End of Year.......................... 12<br>
Schedule H, Line 4j, Schedule of Reportable
Transactions...........................................................................
14</p>
</font><font SIZE="4">
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">Report of Independent Auditors</p>
</font><font SIZE="2">
<p>Textron Inc.<br>
Plan Sponsor<br>
Textron Savings Plan</p>
<p ALIGN="JUSTIFY">We have audited the accompanying statements of net assets
available for benefits of the Textron Savings Plan as of December 31, 1999 and
1998, 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&#39;s management. Our responsibility is to express an opinion on
these financial statements based on our audits.</p>
<p ALIGN="JUSTIFY">We conducted our audits in accordance with auditing standards
generally accepted in the United States. 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.</p>
<p ALIGN="JUSTIFY">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, 1999 and 1998, and the changes in its net assets
available for benefits for the years then ended, in conformity with accounting
principles generally accepted in the United States.</p>
<p ALIGN="JUSTIFY">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 at end of year as
of December 31, 1999, and reportable transactions for the year then ended, are
presented for purposes of additional analysis and are not a required part of the
financial statements but are supplementary information required by the
Department of Labor&#39;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&#39;s management. The
supplemental schedules 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.</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <p ALIGN="JUSTIFY">ERNST & YOUNG LLP</p>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
<p>May 26, 2000</p>
</font><font SIZE="4">
<p ALIGN="CENTER">Textron Savings Plan</p>
</font><font SIZE="4">
<p ALIGN="CENTER">Statements of Net Assets Available for Benefits</p>
<i>
<p ALIGN="CENTER">(In Thousands)</p>
</i>
</font>
<table CELLSPACING="1" WIDTH="582">
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="39%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER">December 31</font></b></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">1999</font></b></td>
    <td WIDTH="20%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">1998</font></b></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP"><b><font SIZE="2">
      <p>Assets</font></b></td>
    <td WIDTH="20%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP"><font SIZE="2">
      <p>Investments, at fair or contract value</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>$1,977,771</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>$2,065,406</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p>Non-interest bearing cash
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>301</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>&#45;</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>1,978,072</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>2,065,406</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p>Receivables:
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Investment income
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>7,323</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>6,526</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Participants&#39; contributions
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>&#45;</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>366</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Other
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>&#45;</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>241</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p>Total receivables
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>7,323</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>7,133</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p>Total assets
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>1,985,395</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>2,072,539</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <b><font SIZE="2">
        <p>Liabilities
        </font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p>Excess employer contributions
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>&#45;</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>1,638</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p>Other
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>352</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>&#45;</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p>Net assets available for benefits
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>$1,985,043</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>$2,070,901</font></td>
  </tr>
</TABLE>
<font SIZE="2"><i>
<p>See accompanying notes.</p>
</i>
<p ALIGN="CENTER">&nbsp;</p>
</font><font SIZE="4">
<p ALIGN="CENTER">Textron Savings Plan</p>
</font><font SIZE="2">
<p ALIGN="CENTER">&nbsp;</p>
</font><font SIZE="4">
<p ALIGN="CENTER">Statements of Changes in Net Assets Available for Benefits</p>
<i>
<p ALIGN="CENTER">(In Thousands)</p>
</i>
</font>
<table CELLSPACING="1" WIDTH="582">
  <tr>
    <td WIDTH="61%" VALIGN="TOP"></td>
    <td WIDTH="39%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER">Year ended December 31</font></b></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">1999</font></b></td>
    <td WIDTH="20%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">1998</font></b></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP"><b><font SIZE="2">
      <p>Additions</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP"><font SIZE="2">
      <p>Investment income:</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25; margin-top: 0; margin-bottom: 0">Net appreciation in fair value of investments
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p style="margin-top: 0; margin-bottom: 0">$ 66,161</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-top: 0; margin-bottom: 0">$ 355,180</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25; margin-top: 0; margin-bottom: 0">Interest and dividends
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p style="margin-top: 0; margin-bottom: 0">38,372</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-top: 0; margin-bottom: 0">36,399</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>104,533</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>391,579</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p>Contributions:
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Participants
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>93,561</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>93,763</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Employer
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>37,678</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>39,847</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>131,239</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>133,610</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p>Total additions
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>235,772</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>525,189</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <b><font SIZE="2">
        <p>Deductions
        </font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Benefits paid to participants
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>320,122</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>244,222</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Administrative expenses
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>1,508</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>2,350</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p>Total deductions
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>321,630</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>246,572</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Net increase (decrease)
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>(85,858)</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>278,617</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p>Net assets available for benefits:
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Beginning of year
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>2,070,901</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>1,792,284</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">End of year
      </font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p>$1,985,043</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p>$2,070,901</font></td>
  </tr>
</TABLE>
<font SIZE="2">
<i>
<p>See accompanying notes.</p>
</i>
<p ALIGN="CENTER">&nbsp;</font><font SIZE="4">Textron Savings Plan</p>
<p ALIGN="CENTER">&nbsp;Notes to Financial Statements</p>
<p ALIGN="CENTER">&nbsp;</font><font SIZE="2">Years ended December 31, 1999 and 1998</p>
<b>
<p>1.&nbsp;&nbsp; Description of Plan</p>
<p ALIGN="JUSTIFY">General</p>
</b>
<p ALIGN="JUSTIFY">The Textron Savings Plan (the &#147;Plan&#148;) is an
employee stock ownership plan covering substantially all domestic employees of
Textron Inc. (&#147;Textron&#148;). 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 (&#147;ERISA&#148;).</p>
<p ALIGN="JUSTIFY">The Plan is currently administered under the terms of a Trust
Agreement, dated September 1, 1999, with Putnam Fiduciary Trust Company (the
&#147;Trustee&#148; or &#147;Putnam&#148;). The Plan was
formerly administered under the terms of a Trust Agreement, dated March 3, 1997,
with State Street Bank and Trust Company. Putnam also serves as the
Plan&#39;s recordkeeper, replacing MetLife effective September 1, 1999.</p>
<b>
<p ALIGN="justify" style="margin-top: 12">Investment Options</p>
</b>
<p ALIGN="JUSTIFY">Effective September 1, 1999, participants may elect to direct
their employee contributions to the following funds: Textron Stock Fund, Putnam
International Growth Fund, Putnam Voyager Fund, Putnam S&P 500 Index Fund,
The George Putnam Fund of Boston, One Group Bond Fund, and the Stable Value
Fund. Employer contributions are invested entirely in the Textron Stock Fund.
Prior to September 1, 1999, participants directed their contributions to three
funds, with a fourth fund available after age 55 and ten years of service with
Textron.</p>
<p ALIGN="JUSTIFY"><b>Contributions</p>
</b>
<p ALIGN="JUSTIFY">Participants of the Plan are entitled to elect compensation
deferrals within the limits prescribed by Section 401(k) of the Internal Revenue
Code (the &#147;Code&#148;). 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&#39; wages. For the
years ending December 31, 1999 and 1998, employee contributions included
rollovers of approximately $4.2 million and $3.4 million, respectively.</p>
<p ALIGN="JUSTIFY">Textron makes contributions to the Plan based on actual
contribution levels, effective September 1, 1999. Prior to September 1, 1999,
estimated contributions were made. In addition, Textron may make additional
discretionary contributions. There were no discretionary contributions made by
Textron in 1999 or 1998. The excess of the estimated contributions by Textron
over the actual contributions by the participants is not allocated to
participant accounts; rather such amounts are used to reduce future Textron
contributions. In addition, all forfeitures arising out of a
participant&#39;s termination of employment for reasons other than
retirement, disability or death are used to reduce future Textron contributions.</p>
<p ALIGN="JUSTIFY"><b>Benefits</p>
</b>
<p ALIGN="JUSTIFY">In the event a participant ceases to be an employee or
becomes totally disabled while employed, all of his or her account, 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&#39;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.</p>
<b>
<p ALIGN="JUSTIFY">Vesting</p>
</b>
<p ALIGN="JUSTIFY">Textron&#39;s 50% matching contributions vest based on
the length of participation in the Plan as follows:</p>
</font>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="552">
  <tr>
    <td WIDTH="61%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="left">Months of Participation</font></b></td>
    <td WIDTH="39%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">Ownership Interest</font></b></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="39%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP"><font SIZE="2">
      <p style="line-height: 100%">24 months but less than 36 months</font></td>
    <td WIDTH="39%" VALIGN="TOP" align="center"><font SIZE="2">
      <p ALIGN="center" style="line-height: 100%">25%</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP"><font SIZE="2">
      <p style="line-height: 100%">36 months but less than 48 months</font></td>
    <td WIDTH="39%" VALIGN="TOP" align="center"><font SIZE="2">
      <p ALIGN="center" style="line-height: 100%">50%</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP"><font SIZE="2">
      <p style="line-height: 100%">48 months but less than 60 months</font></td>
    <td WIDTH="39%" VALIGN="TOP" align="center"><font SIZE="2">
      <p ALIGN="center" style="line-height: 100%">75%</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP"><font SIZE="2">
      <p style="line-height: 100%">60 months or more</font></td>
    <td WIDTH="39%" VALIGN="TOP" align="center"><font SIZE="2">
      <p ALIGN="center" style="line-height: 100%">100%</font></td>
  </tr>
</TABLE>
<font SIZE="2">
<p ALIGN="JUSTIFY">A separate account is maintained for each participant and is
increased by (a) the participant&#39;s contributions and compensation
deferrals, (b) Textron&#39;s 50% matching contribution, and by the pro rata
share of additional discretionary contributions made by Textron, if any, and (c)
plan income, and charged with an allocation of administrative expenses.
Allocations are based on participant earnings or account balances as defined.
The benefit to which a participant is entitled is the benefit that can be
provided from the participant&#39;s vested account.</p>
<p ALIGN="JUSTIFY"><b>Plan Termination</p>
</b>
<p ALIGN="JUSTIFY">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.</p>
<b>
<p>Participant Notes Receivable</p>
</b>
<p ALIGN="JUSTIFY">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&#39;s highest outstanding
loan balance during the twelve-month period preceding the new loan request.
Interest is charged at a rate of Wall Street Journal Prime Rate plus 1%, as of
the first business day of the month. 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.</p>
<p ALIGN="JUSTIFY"><b>2. Significant Accounting Policies</p>
<p ALIGN="JUSTIFY">Basis of Accounting</p>
</b>
<p ALIGN="JUSTIFY">The financial statements have been prepared on the accrual
basis of accounting.</p>
<p ALIGN="JUSTIFY"><b>Investment Valuation and Income Recognition</b></p>
<p ALIGN="JUSTIFY">Except for the investment contracts, the Plan&#39;s
investments are stated at fair value which equals the quoted market price on the
last business day of the Plan year. The shares of registered investment
companies are valued at quoted market prices which represent the net asset
values of shares held by the Plan at year end. The participant loans are valued
at their outstanding balances, which approximate fair value.</p>
<p ALIGN="JUSTIFY">Insurance contracts are recorded at their contract values,
which represent contributions and reinvested income, less any withdrawals, plus
accrued interest, because these investments have fully benefit responsive
features. For example, participants may ordinarily direct the withdrawal or
transfer all or a portion of their investment at contract value. However,
withdrawals influenced by Company-initiated events, such as in connection with
the sale of a business, may result in a distribution at other than contract
value. There are no reserves against contract values for credit risk of contract
issues or<b> </b>otherwise. The fair value of the investment contracts at
December 31, 1999 and 1998, was approximately $120 million and $116 million,
respectively. The average yield was approximately 6.7% and 6.1%, respectively.
The crediting interest rate for these investment contracts is reset annually by
the issuer but cannot be less than zero and ranged from 5.5% to 6.9% for 1999,
and 4.7% to 8.3% for 1998.</p>
<p ALIGN="JUSTIFY">The fair values of insurance contracts presented above 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.</p>
<p ALIGN="JUSTIFY">Purchases and sales of securities are recorded on a
trade-date basis. Interest income is recorded on the accrual basis. Dividends
are recorded on the ex-dividend date.</p>
<b>
<p ALIGN="JUSTIFY">Administrative Expenses</p>
<p ALIGN="JUSTIFY"></b>All administrative expenses are paid from Plan assets.</p>
<p ALIGN="JUSTIFY"><b>Use of Estimates</b></p>
<p ALIGN="JUSTIFY">The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.</p>
<p ALIGN="JUSTIFY"><b>Reclassification</b></p>
<p ALIGN="JUSTIFY">The Plan has adopted Statement of Position 99-3,
&#147;Accounting for and Reporting of Certain Defined Contribution Benefit
Plan Investments and Other Disclosure Matters&#148; for the 1999 financial
statement presentation. Accordingly, 1998 amounts have been reclassified to
conform with Statement of Position 99-3.</p>
<b>
<p ALIGN="JUSTIFY">3. Investments</p>
</b>
<p ALIGN="JUSTIFY">During 1999 and 1998, the Plan&#39;s investments
(including investments purchased, sold, as well as held during the year)
appreciated (depreciated) in fair value as follows:</p>
</font>
<table CELLSPACING="0" WIDTH="586" cellpadding="0">
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="37%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER">December 31</font></b></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="19%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">1999</font></b></td>
    <td WIDTH="19%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">1998</font></b></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="37%" VALIGN="TOP" COLSPAN="2"><i><font SIZE="2">
      <p ALIGN="CENTER">(In thousands)</font></i></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP"><font SIZE="2">Investments at fair value as
      determined by quoted market price:</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="19%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">
        <font SIZE="2">
        <p style="line-height: 100%; margin-left: 25; margin-bottom: 0">Textron Inc. common stock
      </font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p ALIGN="right" style="line-height: 100%; margin-bottom: 0">$24,924</font></b></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="line-height: 100%; margin-bottom: 0">$310,610</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">
        <font SIZE="2">
        <p style="line-height: 100%; margin-left: 25; margin-bottom: 0">U.S. Government securities
      </font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p ALIGN="right" style="line-height: 100%; margin-bottom: 0">&#45;</font></b></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="line-height: 100%; margin-bottom: 0">51</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Mutual funds
      </font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p ALIGN="right">25,135</font></b></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">&#45;</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p ALIGN="right">50,059</font></b></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">310,661</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP"><font SIZE="2">
      <p>Investments at estimated fair value:</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="19%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">
        <font SIZE="2">
        <p style="line-height: 100%; margin-left: 25; margin-bottom: 0">Common/collective trust funds
      </font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p ALIGN="right">16,102</font></b></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">44,545</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">
        <font SIZE="2">
        <p style="line-height: 100%; margin-left: 25; margin-bottom: 0">Mortgage-backed securities
      </font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p ALIGN="right">&#45;</font></b></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">(26)</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p ALIGN="right">$66,161</font></b></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">$355,180</font></td>
  </tr>
</TABLE>
<font SIZE="2">
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">Investments that represent 5% or more of the fair value of
the Plan&#39;s net assets available for benefits are as follows:</p>
</font>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="596">
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="39%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER">December 31</font></b></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">1999</font></b></td>
    <td WIDTH="20%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">1998</font></b></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="39%" VALIGN="TOP" COLSPAN="2"><i><font SIZE="2">
      <p ALIGN="CENTER">(In thousands)</font></i></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP"><font SIZE="2">Textron Inc. common stock*</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p ALIGN="right">$1,572,722</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">$1,694,963</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP"><font SIZE="2">Putnam S&P 500 Index Fund</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p ALIGN="right">232,971</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">&#45;</font></td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP"><font SIZE="2">State Street S&P 500 Index
      with Futures Fund</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p ALIGN="right">&#45;</font></b></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">200,848</font></td>
  </tr>
</TABLE>
<font SIZE="2">
<p ALIGN="JUSTIFY">* Nonparticipant directed</p>
<b>
<p ALIGN="JUSTIFY">4.&nbsp;&nbsp; Nonparticipant-Directed Investments</p>
</b>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">Information about the net assets and the significant
components of changes in net assets related to the nonparticipant-directed
investments is as follows:</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
</font>
<table CELLSPACING="1" WIDTH="598">
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="37%" VALIGN="TOP" COLSPAN="3"><b><font SIZE="2">
      <p ALIGN="CENTER">December 31</font></b></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">1999</font></b></td>
    <td WIDTH="19%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER">1998</font></b></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="37%" VALIGN="TOP" COLSPAN="3"><i><font SIZE="2">
      <p ALIGN="CENTER">(In thousands)</font></i></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP"><font SIZE="2">Investments, at fair value:</font></td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="top"><font SIZE="2">
        <p style="margin-left: 25">Textron Inc. common stock
      </font></td>
    <td WIDTH="18%" VALIGN="top" COLSPAN="2" align="right"><b><font SIZE="2">
      <p ALIGN="right">$1,572,722</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right"><font SIZE="2">
      <p ALIGN="right">$1,694,963</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" align="right">
      <p ALIGN="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right">
      <p ALIGN="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP"><font SIZE="2">Changes in net assets:</font></td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" align="right">
      <p ALIGN="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right">
      <p ALIGN="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Contributions
      </font></td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" align="right"><b><font SIZE="2">
      <p ALIGN="right">$ 102,726</font></b></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">$ 108,920</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Dividends
      </font></td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" align="right"><b><font SIZE="2">
      <p ALIGN="right">26,944</font></b></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">25,883</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Net appreciation
      </font></td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" align="right"><b><font SIZE="2">
      <p ALIGN="right">24,924</font></b></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">310,610</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Benefits paid to participants
      </font></td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" align="right"><b><font SIZE="2">
      <p ALIGN="right">(256,117)</font></b></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">(213,487)</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Transfers to participant-directed investments
      </font></td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" align="right"><b><font SIZE="2">
      <p ALIGN="right">(22,354)</font></b></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">(13,407)</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP"><font SIZE="2">Total</font></td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" align="right"><b><font SIZE="2">
      <p ALIGN="right">$ (123,877)</font></b></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">$ 218,519</font></td>
  </tr>
</TABLE>
<font SIZE="2"><b>
<p>5.&nbsp;&nbsp; Differences between Financial Statements and Form 5500</p>
</b>
<p ALIGN="JUSTIFY">The following is a reconciliation of net assets available for
benefits per the financial statements to the Form 5500:<br>
</p>
</font>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="598">
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="37%" VALIGN="TOP" COLSPAN="3"><b><font SIZE="2">
      <p ALIGN="CENTER">December 31</font></b></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">1999</font></b></td>
    <td WIDTH="19%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER">1998</font></b></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="37%" VALIGN="TOP" COLSPAN="3"><i><font SIZE="2">
      <p ALIGN="CENTER">(In thousands)</font></i></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP"><font SIZE="2">Net assets available for
      benefits per financial statements</font></td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" align="right"><b><font SIZE="2">
      <p ALIGN="right">$1,985,043</font></b></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">$2,070,901</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP"><font SIZE="2">
      <p>Amounts allocated to withdrawn participants</font></td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" align="right"><b><font SIZE="2">
      <p ALIGN="right">(3,230)</font></b></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">(36,910)</font></td>
  </tr>
  <tr>
    <td WIDTH="63%" VALIGN="TOP"><font SIZE="2">
      <p>Net assets available for benefits per Form 5500</font></td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" align="right"><b><font SIZE="2">
      <p ALIGN="right">$1,981,813</font></b></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right">$2,033,991</font></td>
  </tr>
</TABLE>
<font SIZE="2">
<p ALIGN="JUSTIFY">The following is a reconciliation of benefits paid to
participants per the financial statements to the Form 5500:</p>
</font>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="595">
  <tr>
    <td WIDTH="64%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="19%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">1999</font></b></td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">1998</font></b></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="36%" VALIGN="TOP" COLSPAN="2"><i><font SIZE="2">
      <p ALIGN="CENTER">(In thousands)</font></i></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="19%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP"><font SIZE="2">Benefits paid to participants
      per the financial statements</font></td>
    <td WIDTH="19%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">$320,122</font></b></td>
    <td WIDTH="18%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="right">$244,222</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP"><font SIZE="2">Add: Amounts allocated on Form
      5500 to withdrawn participants at the end of the year</font></td>
    <td WIDTH="19%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right"><br>
      3,230</font></b></td>
    <td WIDTH="18%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="right"><br>
      36,910</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP"><font SIZE="2">Less: Amounts allocated on Form
      5500 to withdrawn participants at the beginning of the year</font></td>
    <td WIDTH="19%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right"><br>
      (36,910)</font></b></td>
    <td WIDTH="18%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="right"><br>
      (24,866)</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP"><font SIZE="2">
      <p>Benefits paid to participants per Form 5500</font></td>
    <td WIDTH="19%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">$286,442</font></b></td>
    <td WIDTH="18%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="right">$256,266</font></td>
  </tr>
</TABLE>
<font SIZE="2">
<p ALIGN="JUSTIFY">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.</p>
<b>
<p>6.&nbsp;&nbsp; Party-in-Interest Transactions</p>
</b>
<p ALIGN="JUSTIFY">The Plan invests in mutual funds managed by Putnam Fiduciary
Trust Company, who became the Plan&#39;s trustee on September 1, 1999. Prior
to that, the Plan invested in mutual funds managed by State Street Bank and
Trust Company, who at the time was the Plan&#39;s trustee. Therefore, these
transactions qualify as party-in-interest transactions.</p>
<b>
<p>7.&nbsp;&nbsp; Income Tax Status</p>
</b>
<p ALIGN="JUSTIFY">The Plan has received a determination letter from the
Internal Revenue Service dated October 3, 1995, stating that the Plan is
qualified under Section 401(a) of the Internal Revenue Code (the Code) and,
therefore, the related trust is exempt from taxation. Once qualified, the Plan
is required to operate in conformity with the Code to maintain its
qualification. The Plan Administrator believes the Plan is being operated in
compliance with the applicable requirements of the Code and, therefore, believes
that the Plan is qualified and the related trust is tax exempt.</p>
<p ALIGN="CENTER">&nbsp;</p>
</font><font SIZE="4">
<p ALIGN="CENTER">Textron Savings Plan</p>
<p ALIGN="CENTER">Employer Identification Number 05-0315468</p>
<p ALIGN="CENTER">Plan Number 030</p>
<p ALIGN="CENTER">Schedule H, Line 4i, Schedule of Assets Held for Investment
Purposes</p>
<p ALIGN="CENTER">at End of Year</p>
</font><i><font SIZE="2">
<p ALIGN="CENTER">(In Thousands)</p>
</font></i><font SIZE="2">
<p ALIGN="CENTER">December 31, 1999</p>
</font>
<table CELLSPACING="1" WIDTH="652">
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER"><br>
      Identity of Issue</font></b></td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">Number of Shares or Units</font></b></td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER"><br>
      Cost</font></b></td>
    <td WIDTH="19%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">Current<br>
      Value</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">
      <p>Common Stock:</font></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">
      <blockquote>
        <font SIZE="2">
        <p>Textron Inc.*
        </blockquote>
      </font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">20,463</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">$640,028</font></b></td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">$1,572,722</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">
      <p>Common/Collective Trust Funds:</font></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SEI Stable Asset
      Fund</font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">18,129</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">18,129</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Dwight Managed
      Unwrapped</font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">13,182</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">13,182</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      The Boston Company
      Money Market Fund</font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">1,810</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">1,810</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">
      <p>Total Common/Collective Trust Funds</font></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">33,121</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">
      <p>Mutual Funds:</font></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Putnam S&P 500
      Index Fund*</font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">6,668</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">232,971</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Putnam Voyager
      Fund*</font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">177</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">5,597</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Putnam
      International Growth Fund*</font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">114</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">3,386</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      The George Putnam
      Fund of Boston*</font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">48</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">780</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      One Group Bond Fund</font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">71</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">713</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">
      <p>Total Mutual Funds</font></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">243,447</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP"><font SIZE="2">
      <p>Insurance Contracts:</font></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">
        <font SIZE="2">
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AIG Life Insurance Co.
      </font></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">
        <font SIZE="2">
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Matures 9/15/01; 6.90%
      </font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">6,224</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">6,588</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">
        <font SIZE="2">
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Matures 12/15/04; 6.05%
      </font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">5,231</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">6,282</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">
        <font SIZE="2">
        <p>Allstate Insurance Co.
      </font></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">
        <font SIZE="2">
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Matures 12/15/00; 6.87%
      </font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">10,031</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">10,288</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">
        <font SIZE="2">
        <p>CDC Investment Management Co.
      </font></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">
        <font SIZE="2">
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Matures 12/15/00; 5.73%
      </font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">14,837</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">15,050</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">
        <font SIZE="2">
        <p>John Hancock Mutual Life Ins. Co.
      </font></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">
        <font SIZE="2">
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Matures 6/30/00; 6.50%
      </font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">6,604</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">6,670</font></b></td>
  </tr>
  <tr>
    <td WIDTH="45%" VALIGN="TOP">
        <font SIZE="2">
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Matures 6/15/01; 6.71%
      </font></td>
    <td WIDTH="18%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">5,988</font></b></td>
    <td WIDTH="18%" VALIGN="top" align="right">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="19%" VALIGN="top" align="right"><b><font SIZE="2">
      <p align="right">6,251</font></b></td>
  </tr>
</TABLE>
<font SIZE="2">
<p ALIGN="CENTER">&nbsp;</font><font SIZE="4">Textron Savings Plan</p>
<p ALIGN="CENTER">Employer Identification Number 05-0315468</p>
<p ALIGN="CENTER">Plan Number 030</p>
<p ALIGN="CENTER">Schedule H, Line 4i, Schedule of Assets Held for Investment
Purposes</p>
<p ALIGN="CENTER">at End of Year (continued)</p>
</font><i><font SIZE="2">
<p ALIGN="CENTER">(In Thousands)</p>
</font></i><font SIZE="2">
<p ALIGN="CENTER">&nbsp;</p>
</font>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="640">
  <tr>
    <td WIDTH="43%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER"><br>
      Identity of Issue</font></b></td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">Number of Shares or Units</font></b></td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER"><br>
      Cost</font></b></td>
    <td WIDTH="21%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">Current<br>
      Value</font></b></td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP"><font SIZE="2">Insurance Contracts (continued)</font></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP"><font SIZE="2">State Street Bank</font></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Matures 9/15/06; 6.36%
      </font></td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">19,702</font></b></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">26,517</font></b></td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Principal Life Insurance Co.
      </font></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Matures 6/14/01; 6.58%
      </font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p ALIGN="right">9,535</font></b></td>
    <td WIDTH="18%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP" align="right"><b><font SIZE="2">
      <p ALIGN="right">9,932</font></b></td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Matures 12/14/02; 5.52%
      </font></td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">5,271</font></b></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">5,688</font></b></td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP"><font SIZE="2">SunAmerica Life Insurance Co.</font></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Matures 6/15/00; 5.85%
      </font></td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">12,550</font></b></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">12,621</font></b></td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP"><font SIZE="2">Massachusetts Mutual Life
      Insurance Co.</font></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Matures 6/15/04; 6.15%
      </font></td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">7,267</font></b></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">8,559</font></b></td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP"><font SIZE="2">Monumental Life Insurance Co.</font></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP">
        <font SIZE="2">
        <p style="margin-left: 25">Matures 12/16/02; 5.51%
      </font></td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">5,272</font></b></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">5,488</font></b></td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP"><font SIZE="2">Total Insurance Contracts</font></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">119,934</font></b></td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP"><font SIZE="2">Participant notes receivable</font></td>
    <td WIDTH="18%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="CENTER">9.5% to 11%</font></b></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">19,942</font></b></td>
  </tr>
  <tr>
    <td WIDTH="43%" VALIGN="TOP"><font SIZE="2">
      <p>Total assets held for investment purposes</font></td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="right">$1,989,166</font></b></td>
  </tr>
</TABLE>
<font SIZE="2">
<p>&nbsp;* Indicates party-in-interest to the Plan</p>
<p ALIGN="CENTER">Textron Savings Plan</p>
<p ALIGN="CENTER">Employer Identification Number 05-0315468</p>
<p ALIGN="CENTER">Plan Number 030</p>
<p ALIGN="CENTER">Schedule H, Line 4j, Schedule of Reportable Transactions</p>
<i>
<p ALIGN="CENTER">(In Thousands)</p>
</i>
</font><font SIZE="3">
<p ALIGN="CENTER">Year ended December 31, 1999</p>
<p ALIGN="CENTER">&nbsp;</p>
</font>
<table CELLSPACING="1" WIDTH="907">
  <tr>
    <td WIDTH="19%" VALIGN="TOP"><b><font SIZE="3">
      <p ALIGN="CENTER"><br>
      <br>
      Identity of Party</font></b></td>
    <td WIDTH="26%" VALIGN="TOP"><b><font SIZE="3">
      <p ALIGN="CENTER">&nbsp;<br>
      <br>
      <br>
      Description</font></b></p>
    </td>
    <td WIDTH="11%" VALIGN="TOP"><b><font SIZE="3">
      <p ALIGN="CENTER">&nbsp;<br>
      <br>
      Purchase Price</font></b></p>
    </td>
    <td WIDTH="11%" VALIGN="TOP"><b><font SIZE="3">
      <p ALIGN="CENTER">&nbsp;<br>
      <br>
      Selling<br>
      Price</font></b></p>
    </td>
    <td WIDTH="11%" VALIGN="TOP"><b><font SIZE="3">
      <p ALIGN="CENTER">&nbsp;<br>
      <br>
      Cost of<br>
      Assets</font></b></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP"><b><font SIZE="3">
      <p ALIGN="CENTER">Current Value<br>
      &nbsp;of Asset on<br>
      &nbsp;Transaction<br>
      &nbsp;Date</font></b></td>
    <td WIDTH="10%" VALIGN="TOP"><b><font SIZE="3">
      <p ALIGN="CENTER">&nbsp;<br>
      <br>
      Net Gain<br>
      (Loss)</font></b></p>
    </td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="7">&nbsp;</td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="7"><u><font SIZE="3">
      <p>Category (iii) &#45; Series of transactions in excess of 5% of plan
      assets</font></u></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="7">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p>*</font></td>
    <td WIDTH="26%" VALIGN="TOP"><font SIZE="3">
      <p>Purchase of 2,288 shares of Textron Inc. Common Stock in 221
      transactions</font></td>
    <td WIDTH="11%" VALIGN="TOP"><b><font SIZE="3">
      <p align="right"><br>
      <br>
      $192,700</font></b></td>
    <td WIDTH="11%" VALIGN="TOP">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="11%" VALIGN="TOP"><b><font SIZE="3">
      <p align="right"><br>
      <br>
      $192,700</font></b></td>
    <td WIDTH="13%" VALIGN="TOP"><b><font SIZE="3">
      <p align="right"><br>
      <br>
      $192,700</font></b></td>
    <td WIDTH="10%" VALIGN="TOP">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="19%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="26%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="11%" VALIGN="TOP">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="11%" VALIGN="TOP">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="13%" VALIGN="TOP">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="10%" VALIGN="TOP">
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p>*</font></td>
    <td WIDTH="26%" VALIGN="TOP"><font SIZE="3">
      <p>Sale of 4,146 shares of Textron Inc. Common Stock in 291 transactions</font></td>
    <td WIDTH="11%" VALIGN="TOP">
      <p align="right">&nbsp;</p>
    </td>
    <td WIDTH="11%" VALIGN="TOP"><b><font SIZE="3">
      <p align="right"><br>
      $258,430</font></b></td>
    <td WIDTH="11%" VALIGN="TOP"><b><font SIZE="3">
      <p align="right"><br>
      111,798</font></b></td>
    <td WIDTH="13%" VALIGN="TOP"><b><font SIZE="3">
      <p align="right"><br>
      258,430</font></b></td>
    <td WIDTH="10%" VALIGN="TOP"><b><font SIZE="3">
      <p align="right"><br>
      $146,632</font></b></td>
  </tr>
</TABLE>
<font SIZE="3">
<p>There were no category (i), (ii), or (iv) reportable transactions during the
year ended December 31, 1999.</p>
<p>* Transactions made on the market.</p>
</font><font SIZE="2"></font><font FACE="Classic">
<p ALIGN="JUSTIFY">&nbsp;</p>
</font>

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