-----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,
 RlQUW0Yae6g7fa/Wi2V0BPpMOh1jWk+meZmPI54ynIQXcvcq2oyNzc+kAnigh04r
 udZMvka07zDSowzpM/OGJA==

<SEC-DOCUMENT>0000217346-02-000007.txt : 20020812
<SEC-HEADER>0000217346-02-000007.hdr.sgml : 20020812
<ACCEPTANCE-DATETIME>20020812142055
ACCESSION NUMBER:		0000217346-02-000007
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20020629
FILED AS OF DATE:		20020812

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:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-05480
		FILM NUMBER:		02726539

	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
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>tenq.htm
<TEXT>
<html>

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

<body>

<p>&nbsp;</p>
<b>
<p ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</p>
</b>
<p ALIGN="CENTER">Washington, DC 20549</p>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">_______________</p>
<b><font SIZE="5">
<p ALIGN="CENTER">FORM 10&#45;Q</p>
</font></b>
<p ALIGN="CENTER">&nbsp;</p>
<div align="center">
  <center>
<table CELLSPACING="0" WIDTH="660">
  <tr>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="3">
      <p>[X]</font></td>
    <td WIDTH="94%" VALIGN="TOP"><font SIZE="3">
      <p>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
      EXCHANGE ACT OF 1934<br>
      For the fiscal quarter ended June 29, 2002</font></td>
  </tr>
  <tr>
    <td WIDTH="6%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="94%" VALIGN="TOP"><font SIZE="3">
      <p>OR</font></td>
  </tr>
  <tr>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="3">
      <p>[&#160;&#160;]</font></td>
    <td WIDTH="94%" VALIGN="TOP"><font SIZE="3">
      <p>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
      EXCHANGE ACT OF 1934</font></td>
  </tr>
</table>
  </center>
</div>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">Commission file number 1&#45;5480</p>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">_______________</p>
<p ALIGN="CENTER">&nbsp;</p>
<b><font SIZE="5">
<p ALIGN="CENTER">TEXTRON INC.</p>
</font></b>
<p ALIGN="CENTER">&nbsp;</p>
<i>
<p ALIGN="CENTER">(Exact name of registrant as specified in its charter)</p>
</i>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">_______________</p>
<p ALIGN="CENTER">&nbsp;</p>
<div align="center">
  <center>
<table CELLSPACING="0" WIDTH="683">
  <tr>
    <td WIDTH="46%" VALIGN="TOP" HEIGHT="54">
      <p ALIGN="CENTER">Delaware<br>
      (State or other jurisdiction of<br>
      incorporation or organization)</td>
    <td WIDTH="18%" VALIGN="TOP" HEIGHT="54">
      <p></p>
    </td>
    <td WIDTH="36%" VALIGN="TOP" HEIGHT="54">
      <p>05&#45;0315468<br>
      (I.R.S. Employer Identification No.)</td>
  </tr>
</table>
  </center>
</div>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">40 Westminster Street, Providence, RI 02903<br>
401&#45;421&#45;2800<br>
<i>(Address and telephone number of principal executive offices)</p>
</i>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">_______________</p>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="JUSTIFY">Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports) and (2) has been subject
to such filing requirements for the past 90 days.</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="RIGHT">&nbsp;
<table CELLSPACING="0" CELLPADDING="1" WIDTH="643">
  <tr>
    <td VALIGN="TOP">
      <p ALIGN="RIGHT">Yes <u>&#160;X&#160;</u> No<u>&#160;&#160;&#160;</u></td>
  </tr>
</table>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="CENTER">Common stock outstanding at July 27, 2002 &#45;
138,121,000 shares</p>
<p ALIGN="RIGHT">2.</p>
<b><font SIZE="2">
<p ALIGN="CENTER">PART I. FINANCIAL INFORMATION</p>
</font></b><font SIZE="2">
<p><br>
Item 1. <u>FINANCIAL STATEMENTS</p>
</u><b>
<p ALIGN="CENTER"><br>
<br>
TEXTRON INC.<br>
<a NAME="income">Condensed Consolidated Statements of Income (unaudited)</a></b><br>
(Dollars in millions, except per share amounts)</p>
</font>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="704">
  <tr>
    <td WIDTH="46%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="26%" VALIGN="TOP" COLSPAN="4"><font SIZE="2">
      <p ALIGN="CENTER">Three Months Ended</font></td>
    <td WIDTH="26%" VALIGN="TOP" COLSPAN="4"><font SIZE="2">
      <p ALIGN="CENTER">Six Months Ended</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="CENTER">June 29,<br>
      2002</font></td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="CENTER">June 30,<br>
      2001</font></td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="CENTER">June 29,<br>
      2002</font></td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="CENTER">June 30<br>
      2001</font></td>
    <td WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><b><font SIZE="2">
      <p>Revenues</font></b></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Manufacturing revenues</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">2,676</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">3,124</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">4,949</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">5,993</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Finance revenues</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">148</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">164</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">293</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">335</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;Total revenues</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">2,824</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">3,288</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">5,242</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">6,328</font></td>
    <td WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><b><font SIZE="2">
      <p>Costs, expenses and other</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="10%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="10%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="10%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Cost of sales</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">2,175</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">2,524</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">4,054</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">4,837</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Selling and administrative</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">375</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">402</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">705</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">769</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Interest, net</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">73</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">110</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">150</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">232</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Provision for losses on finance receivables</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">25</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">12</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">55</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">23</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Special charges</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">26</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">35</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">36</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">77</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Gain on sale of division</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">(25)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">(25)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">&#45;</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;Total costs, expenses and other</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">2,649</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">3,083</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">4,975</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">5,938</font></td>
    <td WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Income from operations before income taxes and<br>
      &#160;&#160;&#160;distributions on preferred securities of
      subsidiary trusts</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      175</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      205</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      267</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      390</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Income taxes</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">(63)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">(72)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">(92)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">(138)</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p>Distribution on preferred securities of<br>
      &#160;&#160;&#160;subsidiary trusts, net of income taxes</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15"><br>
      (7)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-bottom-style: solid">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15"><br>
      (7)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-bottom-style: solid">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15"><br>
      (13)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-bottom-style: solid">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15"><br>
      (13)</font></td>
    <td WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Income before cumulative effect of change in<br>
      &#160;&#160;&#160;accounting principle</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      105</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      126</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      162</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      239</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Cumulative effect of change in accounting<br>
      &#160;&#160;&#160;principle, net of income taxes</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">&nbsp;</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      (488)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP" style="border-top-style: solid; border-bottom-style: solid"><b><font SIZE="2">
      <p>Net income (loss)</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15">105</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15">126</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15">(326)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15">239</font></td>
    <td WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Per common share:</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Basic:</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;Income from operations</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">.75</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">.89</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">1.16</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">1.69</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;Cumulative effect of change in accounting
      principle,<br>
      &#160;&#160;&#160;&#160;&#160;&#160;net of income
      taxes</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      (3.49)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p style="margin-right: 15"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p>Net income (loss)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15">.75</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15">.89</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15">(2.33)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15">1.69</font></td>
    <td WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Diluted:</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;Income from operations</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">.74</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">.88</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">1.14</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">1.67</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;Cumulative effect of change in accounting
      principle,<br>
      &#160;&#160;&#160;&#160;&#160;&#160;net of income
      taxes</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      (3.44)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p>Net income (loss)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15">.74</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15">.88</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15">(2.30)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 15">1.67</font></td>
    <td WIDTH="1%" VALIGN="TOP" style="border-top-style: solid; border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Average shares outstanding:</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;Basic</font></td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 15">139,486,000</font></td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 15">141,055,000</font></td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 15">139,893,000</font></td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 15">140,891,000</font></td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;Diluted</font></td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">141,599,000</font></td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">143,411,000</font></td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">141,682,000</font></td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">143,060,000</font></td>
    <td WIDTH="1%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>Dividends per share:</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="1%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;$2.08 Preferred stock, Series A</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">.52</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">.52</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">1.04</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">1.04</font></td>
    <td WIDTH="1%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;$1.40 Preferred stock, Series B</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">.35</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">.35</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">.70</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 15">.70</font></td>
    <td WIDTH="1%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;Common stock</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">.325</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">.325</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">.65</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 15">.65</font></td>
    <td WIDTH="1%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
</table>
  </center>
  </div>
<i><font SIZE="2">
<blockquote>
  <blockquote>
<p>See notes to the condensed consolidated financial statements.</p>
  </blockquote>
</blockquote>
</font></i>
<p ALIGN="CENTER">&nbsp;</p>
<font SIZE="2">
<p ALIGN="RIGHT">3.</p>
<p>Item 1.&#160;&#160;&#160;<u>FINANCIAL STATEMENTS</u> (Continued)</p>
<b>
<p ALIGN="CENTER">TEXTRON INC.<br>
<a NAME="bs">Condensed Consolidated Balance Sheets (unaudited)</a></b><br>
(Dollars in millions)</p>
</font>
    <div align="center">
      <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="661">
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="CENTER">June 29,<br>
      2002</font></td>
    <td WIDTH="5%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="CENTER">December 29,<br>
      2001</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><b><font SIZE="2">
      <p>Assets</font></b></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><b><font SIZE="2">
      <p>Textron Manufacturing</font></b></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Cash and cash equivalents</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 25">595</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">241</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Commercial and U.S. Government receivables, less allowance for<br>
      &#160;&#160;&#160;doubtful accounts of $58 and $54</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25"><br>
      1,293</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25"><br>
      1,149</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Inventories</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,779</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,727</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Due from Textron Finance</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">&#45;</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">510</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Other current assets</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">437</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">390</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Total
      current assets</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">4,104</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">4,017</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Property, plant, and equipment, less accumulated<br>
      &#160;&#160;&#160;depreciation of $2,067 and $1,929</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25"><br>
      2,014</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25"><br>
      2,044</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Goodwill</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,355</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,821</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Intangibles, net</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">87</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">144</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Other assets</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,637</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,562</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Total
      Textron Manufacturing assets</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">9,197</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">9,588</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><b><font SIZE="2">
      <p>Textron Finance</font></b></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Cash</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">21</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">19</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Finance receivables, net</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">5,836</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">5,492</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Goodwill</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">180</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">204</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Other assets</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">758</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">749</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Total
      Textron Finance assets</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">6,795</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">6,464</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Total
      assets</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 25">15,992</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="2" align="right" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 25">16,052</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><b><font SIZE="2">
      <p>Liabilities and shareholders&#39; equity</font></b></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><b><font SIZE="2">
      <p>Liabilities</font></b></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><b><font SIZE="2">
      <p>Textron Manufacturing</font></b></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Current portion of long&#45;term debt and short&#45;term debt</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 25">537</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 25">673</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Accounts payable</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">974</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">994</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Other accrued liabilities</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,322</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,408</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Total
      current liabilities</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">2,833</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">3,075</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Accrued postretirement benefits other than pensions</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">615</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">623</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Other liabilities</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,150</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,219</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Long&#45;term debt</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,671</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,261</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Total
      Textron Manufacturing liabilities</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">6,269</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">6,178</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><b><font SIZE="2">
      <p>Textron Finance</font></b></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Other liabilities</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">377</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">372</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Deferred income taxes</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">383</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">357</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Due to Textron Manufacturing</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">&#45;</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">510</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Debt</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">5,037</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">4,188</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Total
      Textron Finance liabilities</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">5,797</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">5,427</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Total
      liabilities</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">12,066</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">11,605</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><b><font SIZE="2">
      <p>Textron Finance &#45; obligated mandatorily redeemable preferred<br>
      &#160;&#160;&#160;securities of Finance subsidiary holding
      solely junior<br>
      &#160;&#160;&#160;subordinated debentures</font></b></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25"><br>
      <br>
      27</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25"><br>
      <br>
      28</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p>Textron &#45; obligated mandatorily redeemable preferred<br>
      &#160;&#160;&#160;securities of subsidiary trust holding
      solely Textron<br>
      &#160;&#160;&#160;junior subordinated debt securities</font></b></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25"><br>
      <br>
      485</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25"><br>
      <br>
      485</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><b><font SIZE="2">
      <p>Shareholders&#39; equity</font></b></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Capital stock:</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;Preferred stock</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">11</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">11</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;Common stock</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">25</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">25</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Capital surplus</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,076</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">1,064</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>Retained earnings</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">5,413</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">5,829</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>Accumulated other comprehensive loss</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">(180)</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">(223)</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">6,345</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right"><font SIZE="2">
      <p style="margin-right: 25">6,706</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;Less cost of treasury shares</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">2,931</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">2,772</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" HEIGHT="16" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;Total shareholders&#39; equity</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" HEIGHT="16" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">3,414</font></td>
    <td WIDTH="5%" VALIGN="TOP" HEIGHT="16" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25">&nbsp;</p>
    </td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" HEIGHT="16" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 25">3,934</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="16" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;Total liabilities and
      shareholders&#39; equity</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p style="margin-right: 25">15,992</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" COLSPAN="2" align="right"><font SIZE="2">
      <p style="margin-right: 25">16,052</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="57%" VALIGN="TOP" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p>Common shares outstanding</font></td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 25">138,301,000</font></td>
    <td WIDTH="5%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="3" align="right" style="border-top-style: solid; border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 25">141,251,000</font></td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-bottom-style: solid"></td>
  </tr>
</table>
      </center>
    </div>
<i><font SIZE="2">
<blockquote>
  <blockquote>
    <blockquote>
<p>See notes to condensed consolidated financial statements.</p>
    </blockquote>
  </blockquote>
</blockquote>
</font></i><font SIZE="2">
<p ALIGN="RIGHT">4.</p>
<p>Item 1.&#160;&#160;&#160;<u>FINANCIAL STATEMENTS</u> (Continued)</p>
<b>
<p ALIGN="CENTER">TEXTRON INC.<br>
<a NAME="cf">Condensed Consolidated Statements of Cash Flows (unaudited)</a><br>
</b>(In millions)</p>
</font>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="676">
  <tr>
    <td WIDTH="62%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="5"><font SIZE="2">
      <p ALIGN="CENTER">Six Months Ended</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="15%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="CENTER">June 29,<br>
      2002</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="CENTER">June 30,<br>
      2001</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><b><font SIZE="2">
      <p>Cash flows from operating activities:</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Net (loss) income</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
  </center>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(326)</font></td>
      <center>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
      </center>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">239</font></td>
      <center>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Adjustments to reconcile net (loss) income to net cash provided (used)<br>
      &nbsp;&nbsp;&nbsp; by&#160;operating activities:</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Cumulative
      effect of change in accounting principle,<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;net
      of income taxes</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20"><br>
      488</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right">&nbsp;</p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right">&nbsp;</p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20"><br>
      &#45;</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Depreciation</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">159</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">203</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Amortization</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">15</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">59</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Special
      charges</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">36</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">77</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Provision
      for losses on finance receivables</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">55</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">23</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Deferred
      income taxes</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">16</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">26</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Gain on
      sale of division</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(25)</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">&#45;</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Changes in
      assets and liabilities excluding those related to<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;acquisitions
      and divestitures:</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Commercial
      and U.S. Government receivables</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(142)</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(204)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Inventories</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(52)</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(210)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Other
      assets</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(92)</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(153)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Accounts
      payable</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(57)</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(35)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Other
      accrued liabilities</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(38)</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(55)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Other, net</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">8</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">9</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;Net cash provided (used) by operating
      activities</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">45</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(21)</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><b><font SIZE="2">
      <p>Cash flows from investing activities:</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Finance receivables:</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;Originated or purchased</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(4,301)</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(3,655)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;Repaid</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">3,633</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">2,790</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;Proceeds from receivable sales and
      securitization sales</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">356</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">818</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Cash used in acquisitions</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">&#45;</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(550)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Capital expenditures</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(146)</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(273)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Net proceeds from disposition</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">39</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">&#45;</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Proceeds from sale of fixed assets</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">26</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">11</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Other investing activities, net</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">25</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">1</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;Net cash used by investing activities</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(368)</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(858)</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><b><font SIZE="2">
      <p>Cash flows from financing activities:</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Increase in short&#45;term debt</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">149</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right">&nbsp;</p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right">&nbsp;</p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">1,041</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Proceeds from issuance of long&#45;term debt</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">1,596</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">611</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Principal payments and retirements on long&#45;term debt</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(784)</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(706)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Proceeds from exercise of stock options</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">19</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">21</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Purchases of Textron common stock</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(164)</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(42)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>Dividends paid</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(137)</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(92)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>&#160;&#160;&#160;Net cash provided by financing activities</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">679</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">833</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><b><font SIZE="2">
      <p>Net increase (decrease) in cash and cash equivalents</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">356</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">(46)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p>Cash and cash equivalents at beginning of period</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">260</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" align="left" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">289</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p>Cash and cash equivalents at end of period</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="left" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">616</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left" style="border-bottom-style: solid">
      <p ALIGN="right">&nbsp;</p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="left" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">243</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><b><font SIZE="2">
      <p>Supplemental schedule of non&#45;cash investing and financing<br>
      &#160;&#160;&#160;activities:</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" align="right">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" align="left">
      <p ALIGN="right">&nbsp;</p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" align="left">
      <p ALIGN="right" style="margin-right: 20"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Capital
      lease obligations incurred to finance future construction</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">79</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left">
      <p ALIGN="right">&nbsp;</p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="left"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">&#45;</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Capital
      expenditures financed through capital leases</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="left" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">9</font></td>
    <td WIDTH="4%" VALIGN="TOP" align="left" style="border-bottom-style: solid">
      <p ALIGN="right">&nbsp;</p>
      </td>
    <td WIDTH="3%" VALIGN="TOP" align="left" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="left" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="right" style="margin-right: 20">&#45;</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
    </center>
      </div>
<font SIZE="2">
<i>
<blockquote>
  <blockquote>
<p>See notes to condensed consolidated financial statements.</p>
  </blockquote>
</blockquote>
</i></font>
<p ALIGN="RIGHT"><a NAME="notes">5.</p>
<p>Item 1.&#160;&#160;&#160;<u>FINANCIAL STATEMENTS</u> (Continued)</p>
<b>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">TEXTRON INC.</b></a><b><br>
</b>Notes to Condensed Consolidated Financial Statements (unaudited)</p>
<b>
<p ALIGN="JUSTIFY"><a NAME="one">Note 1</a>. Basis of Presentation</p>
</b>
<p ALIGN="JUSTIFY">The condensed consolidated financial statements should be
read in conjunction with the financial statements included in Textron&#39;s
Annual Report on Form 10&#45;K for the year ended December&#160;29,
2001. The condensed consolidated financial statements reflect all adjustments
(consisting only of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of Textron&#39;s consolidated
financial position at June 29, 2002, and its consolidated results of operations
and cash flows for each of the respective three and six month periods ended June
29, 2002 and June&#160;30, 2001. The results of operations for the interim
periods are not necessarily indicative of the results to be expected for the
full year. In January 2002, management responsibility for certain divisions was
reorganized to reflect the sale of the Automotive Trim business in December
2001. In connection with this change, Textron has reorganized under the
following new segments: Aircraft, Fastening Systems, Industrial Products,
Industrial Components and Finance. All prior period data has been appropriately
reclassified.</p>
<p ALIGN="JUSTIFY">Textron accounts for its interest in unconsolidated joint
ventures and subsidiaries under the equity method of accounting. For the three
and six month periods ended June 29, 2002, Textron&#39;s equity in income
(loss) from unconsolidated joint ventures and subsidiaries totaled $(2) million
and $(3) million, respectively. For the three and six month periods ended June
30, 2001, Textron&#39;s equity in income (loss) from unconsolidated joint
ventures and subsidiaries totaled $(4) million and $(7) million, respectively.</p>
<b>
<p><a NAME="two">Note </a>2. Inventories</p>
</b>
    <div align="center">
      <center>
<table CELLSPACING="1" WIDTH="630">
  <tr>
    <td WIDTH="60%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p><br>
      (In millions)</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">June 29,<br>
      2002</td>
    <td WIDTH="5%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">December 29,<br>
      2001</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="60%" VALIGN="TOP">
      <p>Finished goods</td>
    <td WIDTH="3%" VALIGN="TOP">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="13%" VALIGN="TOP" align="right">
      <p style="margin-right: 20">856</td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="11%" VALIGN="TOP" align="right">
      <p style="margin-right: 20">719</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="60%" VALIGN="TOP">
      <p>Work in process</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" align="right">
      <p style="margin-right: 20">802</td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" align="right">
      <p style="margin-right: 20">856</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="60%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p>Raw materials</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" align="right">
      <p style="margin-right: 20">335</td>
    <td WIDTH="5%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" align="right">
      <p style="margin-right: 20">377</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="60%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" align="right">
      <p style="margin-right: 20">1,993</td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" align="right">
      <p style="margin-right: 20">1,952</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="60%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p>Less progress payments and customer deposits</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" align="right">
      <p style="margin-right: 20">214</td>
    <td WIDTH="5%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" align="right">
      <p style="margin-right: 20">225</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="60%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid" align="right">
      <p style="margin-right: 20">1,779</td>
    <td WIDTH="5%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid" align="right">
      <p style="margin-right: 20">1,727</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
      </center>
    </div>
<b>
<p ALIGN="JUSTIFY"><a NAME="three">Note </a>3. Goodwill and Other Intangible
Assets</p>
</b>
<p ALIGN="JUSTIFY">On December&#160;30, 2001, Textron adopted SFAS No. 142,
&quot;Goodwill and Other Intangible Assets&quot;, which requires companies to
stop amortizing goodwill and certain intangible assets with indefinite useful
lives, and requires an annual review for impairment. Upon adoption, Textron
discontinued the amortization of goodwill. Goodwill amortization expense for the
three and six months ended June 30, 2001 was $22 million and $44 million,
respectively, net of income taxes.</p>
<p ALIGN="JUSTIFY">Under SFAS No. 142, Textron was required to test all existing
goodwill for impairment as of December 30, 2001, on a &quot;reporting unit&quot;
basis. The reporting unit represents the operating segment unless, at businesses
one level below that operating segment (a &quot;component&quot;), discrete
financial information is prepared and is reviewed by segment management, in
which case such component is the reporting unit. In certain instances,
components of an operating segment have been aggregated and deemed a single
reporting unit based on similar economic characteristics of the components.
Goodwill is considered to be impaired when the net book value of a reporting
unit exceeds its estimated fair value. Fair values were primarily established
using a discounted cash flow methodology. When available, comparative market
multiples were used to corroborate discounted cash flow results.</p>
<p ALIGN="RIGHT"><br>
6.</p>
<p ALIGN="JUSTIFY">As a result of this impairment review of goodwill, Textron
recorded an after&#45;tax transitional impairment charge of $488 million
($561 million, pre&#45;tax), which is reported in the caption
&quot;Cumulative effect of change in accounting principle, net of income
taxes&quot;. The after&#45;tax impairment charge relates to the following
segments: $274 million in Industrial Products; $111 million in Industrial
Components; $88 million in Fastening Systems; and $15 million in Finance. For
Industrial Products, the primary factor resulting in the impairment charge was
the difficult economic environment in the telecommunication industry which has
experienced a significant decline in demand. This decline has resulted in lower
sales and operating margins than originally anticipated with the acquisitions of
InteSys and Tempo businesses. For Industrial Components and Fastening Systems,
the primary factor was the decline in demand in certain industries in which
these segments operate due to the economic slowdown. The Finance
segment&#39;s impairment charge is in its franchise finance division and is
primarily the result of decreasing loan volumes and an unfavorable
securitization market. No impairment charge was appropriate for these segments
under the previous goodwill impairment accounting standard, which Textron
applied based on undiscounted cash flows.</p>
<p ALIGN="JUSTIFY">A summary of changes in goodwill during the six months ended
June 29, 2002 is as follows:</p>
    <div align="center">
      <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="709">
  <tr>
    <td WIDTH="23%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="JUSTIFY"><br>
      <br>
      <br>
      (In millions)</td>
    <td WIDTH="15%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><br>
      Balance<br>
      December 29,<br>
      2001</td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><br>
      Reclassification<br>
      of Intangible<br>
      Assets</td>
    <td WIDTH="15%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><br>
      Transitional<br>
      Impairment<br>
      Charge</td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><br>
      Foreign<br>
      Currency<br>
      Translation</td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><br>
      Balance<br>
      June 29,<br>
      2002</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Aircraft</td>
    <td WIDTH="3%" VALIGN="TOP">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="13%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20">322</td>
    <td WIDTH="4%" VALIGN="TOP">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="14%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">&#45;</td>
    <td WIDTH="4%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">$</td>
    <td WIDTH="11%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">&#45;</td>
    <td WIDTH="3%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">$</td>
    <td WIDTH="10%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">&#45;</td>
    <td WIDTH="3%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">$</td>
    <td WIDTH="9%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">322</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Fastening Systems</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20">473</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">&#45;</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">(100)</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">12</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">385</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Industrial Products</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20">646</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">42</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">(326)</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">1</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">363</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Industrial Components</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" align="right">
      <p ALIGN="right" style="margin-right: 20">380</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">&#45;</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">(111)</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">16</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">285</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="23%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="JUSTIFY">Finance</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20">204</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20">&#45;</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20">(24)</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20">&#45;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20">180</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="23%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;Total</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="13%" VALIGN="TOP" align="right" style="border-bottom-style: solid">
      <p ALIGN="right" style="margin-right: 20">2,025</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="right" style="margin-right: 20">42</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="JUSTIFY">$</td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="right" style="margin-right: 20">(561)</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="JUSTIFY">$</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="right" style="margin-right: 20">29</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="JUSTIFY">$</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="right" style="margin-right: 20">1,535</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
      </center>
    </div>
<p ALIGN="JUSTIFY">Textron also adopted the remaining provisions of SFAS No.
141, &quot;Business Combinations&quot; on December 30, 2001. For goodwill and
intangible assets reported in connection with acquisitions made prior to July 1,
2001, these provisions broaden the criteria for recording intangible assets
separate from goodwill and require that certain intangible assets that do not
meet the new criteria, such as assembled workforce and customer base, be
reclassified into goodwill. Upon adoption of these provisions, intangible assets
totaling $42 million, net of related deferred taxes, were reclassified into
goodwill within the Industrial Products segment.</p>
<p ALIGN="RIGHT">7.</p>
<p ALIGN="JUSTIFY">The effect on earnings of the transitional impairment charge
and of excluding goodwill amortization expense is presented below:</p>
    <div align="center">
      <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="691">
  <tr>
    <td WIDTH="49%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="24%" VALIGN="TOP" COLSPAN="4"><font SIZE="3">
      <p ALIGN="CENTER">Three months ended</font></td>
    <td WIDTH="24%" VALIGN="TOP" COLSPAN="4"><font SIZE="3">
      <p ALIGN="CENTER">Six months ended</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      (In millions, except per share data)</font></td>
    <td WIDTH="12%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">June 29,<br>
      2002</font></td>
    <td WIDTH="12%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">June 30,<br>
      2001</font></td>
    <td WIDTH="11%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">June 29,<br>
      2002</font></td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">June 30,<br>
      2001</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP"><font SIZE="3">
      <p>Reported income before cumulative effect<br>
      &#160;&#160;&#160;of change in accounting principle</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      $</font></td>
    <td WIDTH="10%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      105</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      $</font></td>
    <td WIDTH="9%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      126</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      $</font></td>
    <td WIDTH="9%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      162</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      $</font></td>
    <td WIDTH="10%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      239</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;Add back:
      &#160;&#160;&#160;amortization, net of income taxes</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">22</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">44</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP"><font SIZE="3">
      <p>&#160;&#160;&#160;Adjusted net earnings before cumulative
      effect<br>
      &#160;&#160;&#160;&#160;&#160;&#160;of change in
      accounting principle</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      105</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      148</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      162</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      283</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>&#160;&#160;&#160;Cumulative effect of change in accounting<br>
      &#160;&#160;&#160;&#160;&#160;&#160;principle, net
      of income taxes</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      (488)</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;&#160;&#160;&#160;Adjusted
      net income (loss)</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">105</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">$</font></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">148</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">$</font></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">(326)</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">283</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="7">
      <p ALIGN="right" style="margin-right: 15"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="7">
      <p ALIGN="right" style="margin-right: 15"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="7">
      <p ALIGN="right" style="margin-right: 15"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="7">
      <p ALIGN="right" style="margin-right: 15"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Basic earnings per share:</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 15">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 15"><font size="3">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 15"><font size="3">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 15"><font size="3">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP"><font SIZE="3">
      <p>&#160;&#160;&#160;Reported earnings per share before
      cumulative<br>
      &#160;&#160;&#160;&#160;&#160;&#160;effect of
      change in accounting principle</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      $</font></td>
    <td WIDTH="10%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      .75</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      $</font></td>
    <td WIDTH="9%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      .89</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      $</font></td>
    <td WIDTH="9%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      1.16</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      $</font></td>
    <td WIDTH="10%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      1.69</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;Add back:
      &#160;&#160;&#160;amortization, net of income taxes</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">.16</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">.32</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP"><font SIZE="3">
      <p>&#160;&#160;&#160;Adjusted net earnings before cumulative
      effect<br>
      &#160;&#160;&#160;&#160;&#160;&#160;of change in
      accounting principle</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      .75</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      1.05</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      1.16</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      2.01</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>&#160;&#160;&#160;Cumulative effect of change in accounting<br>
      &#160;&#160;&#160;&#160;&#160;&#160;principle, net
      of income taxes</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      (3.49)</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;&#160;&#160;&#160;Adjusted
      earnings (loss) per share &#45; basic</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">.75</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">$</font></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">1.05</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">$</font></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">(2.33)</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">2.01</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="7">
      <p ALIGN="right" style="margin-right: 15"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="7">
      <p ALIGN="right" style="margin-right: 15"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="7">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Diluted earnings per share:</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 15">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 15"><font size="3">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP"><font SIZE="3">
      <p>&#160;&#160;&#160;Reported earnings per share before
      cumulative<br>
      &#160;&#160;&#160;&#160;&#160;&#160;effect of
      change in accounting principle</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      $</font></td>
    <td WIDTH="10%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      .74</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      $</font></td>
    <td WIDTH="9%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      .88</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      $</font></td>
    <td WIDTH="9%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      1.14</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY"><br>
      $</font></td>
    <td WIDTH="10%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      1.67</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;Add back:
      &#160;&#160;&#160;amortization, net of income taxes</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">.16</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">.31</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP"><font SIZE="3">
      <p>&#160;&#160;&#160;Adjusted net earnings before cumulative
      effect<br>
      &#160;&#160;&#160;&#160;&#160;&#160;of change in
      accounting principle</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      .74</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      1.04</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      1.14</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      1.98</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>&#160;&#160;&#160;Cumulative effect of change in accounting<br>
      &#160;&#160;&#160;&#160;&#160;&#160;principle, net
      of income taxes</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      (3.44)</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="49%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;&#160;&#160;&#160;Adjusted
      earnings (loss) per share &#45; diluted</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">.74</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">$</font></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">1.04</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">$</font></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">(2.30)</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="JUSTIFY">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">1.98</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
      </center>
    </div>
<p ALIGN="JUSTIFY">For the three months ended March&#160;30, 2002, the net
loss after adjustment for the retroactive cumulative effect of change in
accounting principle was $431 million, resulting in diluted loss per share of
$3.04 and basic loss per share of $3.07.</p>
<p ALIGN="JUSTIFY"><a NAME="_Hlk9304264"></a><a NAME="_Hlk9304265"></a><a NAME="_Hlk9304266"></a><a NAME="four">All
of Textron&#39;s acquired intangible assets are subject to amortization and
are comprised of the following as of June 29, 2002:</p>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="691">
  <tr>
    <td WIDTH="28%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="JUSTIFY"><br>
      <br>
      (Dollars in millions)</td>
    <td WIDTH="23%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="center">Weighted Average<br>
      Amortization Period<br>
      (in years)</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">Gross<br>
      Carrying<br>
      Amount</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><br>
      Accumulated<br>
      Amortization</td>
    <td WIDTH="15%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><br>
      <br>
      Net</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="28%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;Trademarks</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 50">30</td>
    <td WIDTH="3%" VALIGN="TOP">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="12%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">61</td>
    <td WIDTH="4%" VALIGN="TOP">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="12%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">4</td>
    <td WIDTH="3%" VALIGN="TOP">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="12%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">57</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="28%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;Patents</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 50">8</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">17</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">5</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">12</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="28%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;Non&#45;compete</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 50">3</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">11</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">6</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP">
      <p ALIGN="right" style="margin-right: 20">5</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="28%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;Other</td>
    <td WIDTH="23%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 50">5</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20">14</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20">1</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 20">13</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="28%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="right" style="margin-right: 50">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="right" style="margin-right: 20">103</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="right" style="margin-right: 20">16</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="right" style="margin-right: 20">87</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
  </center>
</div>
<p ALIGN="RIGHT">8.</p>
<p ALIGN="JUSTIFY">Amortization expense for the three and six months ended June
29, 2002 totaled $3 million and $6 million, respectively, and is expected to be
approximately $5 million for the remainder of 2002. Amortization expense for
fiscal years 2003, 2004, 2005, 2006, and 2007 is estimated to be approximately
$10 million, $6 million, $6 million, $4 million and $4 million, respectively.</p>
<b>
<p ALIGN="JUSTIFY">Note </b></a><b>4. Textron Finance&#45;Obligated
Mandatorily Redeemable Preferred Securities of Finance Subsidiary Holding Solely
Junior Subordinated Debentures</p>
</b>
<p ALIGN="JUSTIFY">Litchfield Financial Corporation (Litchfield, a subsidiary of
Textron Financial Corporation) was acquired by Textron Financial Corporation
during 1999. Prior to the acquisition, a trust sponsored and
wholly&#45;owned by Litchfield issued $26 million of Series A Preferred
Securities to the public. The trust subsequently invested the proceeds in $26
million aggregate principal amount of Litchfield&#39;s newly issued 10%
Series A Junior Subordinated Debentures, due 2029. The debentures are the sole
asset of the trust. The preferred securities were recorded by Textron Financial
Corporation at fair value of $29 million as of the acquisition date. The amounts
due to the trust under the subordinated debentures and the related income
statement amounts have been eliminated in Textron&#39;s consolidated
financial statements.</p>
<p ALIGN="JUSTIFY">The preferred securities accrue and pay cash distributions
quarterly at a rate of 10% per annum. The trust&#39;s obligation under the
preferred securities are fully and unconditionally guaranteed by Litchfield. The
trust will redeem all of the outstanding preferred securities when the
debentures are paid at maturity on June&#160;30, 2029, or otherwise become
due. Litchfield will have the right to redeem 100% of the principal plus accrued
and unpaid interest on or after June&#160;30, 2004. As a result of its
acquisition of Litchfield, Textron Financial Corporation has agreed to make
payments to the holders of the preferred securities, when due, to the extent not
paid by or on behalf of the trust or subsidiary.</p>
<b>
<p><a NAME="five">Note </a>5. Textron&#45;Obligated Mandatorily Redeemable
Preferred Securities of Subsidiary Trust Holding Solely Textron Junior
Subordinated Debt Securities</p>
</b>
<p ALIGN="JUSTIFY">In 1996, a trust sponsored and wholly&#45;owned by
Textron issued preferred securities to the public (for $500 million) and shares
of its common securities to Textron (for $15.5 million), the proceeds of which
were invested by the trust in $515.5 million aggregate principal amount of
Textron&#39;s newly issued 7.92% Junior Subordinated Deferrable Interest
Debentures, due 2045. The debentures are the sole asset of the trust and are
callable at Textron&#39;s sole discretion. The proceeds from the issuance of
the debentures were used by Textron for the repayment of long&#45;term
borrowings and for general corporate purposes. The amounts due to the trust
under the debentures and the related income statement amounts have been
eliminated in Textron&#39;s consolidated financial statements.</p>
<p ALIGN="JUSTIFY">The preferred securities accrue and pay cash distributions
quarterly at a rate of 7.92% per annum. Textron has guaranteed, on a
subordinated basis, distributions and other payments due on the preferred
securities. The guarantee, when taken together with Textron&#39;s
obligations under the debentures and in the indenture pursuant to which the
debentures were issued and Textron&#39;s obligations under the Amended and
Restated Declaration of Trust governing the trust, provides a full and
unconditional guarantee of amounts due on the preferred securities. The
preferred securities are mandatorily redeemable upon the maturity of the
debentures on March 31, 2045, or earlier to the extent of any redemption by
Textron of any debentures. The redemption price in either such case will be $25
per share plus accrued and unpaid distributions to the date fixed for
redemption.</p>
<p ALIGN="right"><a NAME="six">9.</p>
<b>
<p>Note </b></a><b>6. Contingencies</p>
</b>
<p ALIGN="JUSTIFY">Textron is subject to legal proceedings and other claims
arising out of the conduct of Textron&#39;s business, including proceedings
and claims relating to private transactions, government contracts, production
partners, product liability, employment, and environmental, safety and health
matters. Some of these legal proceedings and claims seek damages, fines or
penalties in substantial amounts or remediation of environmental contamination.
Under federal government procurement regulations, certain claims brought by the
U.S. Government could result in Textron&#39;s suspension or debarment from
U.S. Government contracting for a period of time. On the basis of information
presently available, Textron believes that these proceedings and claims will not
have a material effect on Textron&#39;s financial position or results of
operations.</p>
<b>
<p><a NAME="_Hlk9307568"></a><a NAME="_Hlk9307569"></a><a NAME="_Hlk9307570"></a><a NAME="seven">Note
</a>7. Accumulated Other Comprehensive Loss and Comprehensive Income (Loss)</p>
</b>
<p ALIGN="JUSTIFY">The components of accumulated other comprehensive loss, net
of related income taxes, are as follows:</p>
    <div align="center">
      <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="637">
  <tr>
    <td WIDTH="59%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="4">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">Six Months Ended</td>
    <td WIDTH="3%" VALIGN="TOP">
      <p style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="59%" VALIGN="TOP">
      <p><br>
      (In millions)</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP">
      <p ALIGN="CENTER">June 29,<br>
      2002</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="15%" VALIGN="TOP">
      <p ALIGN="CENTER">June 30,<br>
      2001</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="59%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p>Beginning of period</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="13%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25" align="right">(223)</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25" align="right">(172)</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="59%" VALIGN="TOP">
      <p>Currency translation adjustment</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP">
      <p style="margin-right: 25" align="right">32</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="15%" VALIGN="TOP">
      <p style="margin-right: 25" align="right">(47)</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="59%" VALIGN="TOP">
      <p>Transition adjustment due to change in accounting<br>
      &#160;&#160;&#160;for derivative instruments and hedging
      activities</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP">
      <p style="margin-right: 25" align="right"><br>
      &#45;</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="15%" VALIGN="TOP">
      <p style="margin-right: 25" align="right"><br>
      (15)</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="59%" VALIGN="TOP">
      <p>Net deferred gain (loss) on hedge contracts</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP">
      <p style="margin-right: 25" align="right">16</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="15%" VALIGN="TOP">
      <p style="margin-right: 25" align="right">(1)</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="59%" VALIGN="TOP">
      <p>Pension liability adjustment</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP">
      <p style="margin-right: 25" align="right">(4)</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="15%" VALIGN="TOP">
      <p style="margin-right: 25" align="right">&#45;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="59%" VALIGN="TOP">
      <p>Other, net</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP">
      <p style="margin-right: 25" align="right">(1)</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="15%" VALIGN="TOP">
      <p style="margin-right: 25" align="right">(1)</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="59%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p>Other comprehensive income (loss)</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25" align="right">43</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25" align="right">(64)</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="59%" VALIGN="TOP" style="border-bottom-style: solid">
      <p>End of period</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid">
      <p style="margin-right: 25" align="right">(180)</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid">
      <p style="margin-right: 25" align="right">(236)</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
      </center>
    </div>
<p ALIGN="JUSTIFY">Comprehensive income (loss) is summarized below:</p>
    <div align="center">
      <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="637">
  <tr>
    <td WIDTH="217" VALIGN="TOP">
      <p ALIGN="JUSTIFY"><br>
    </td>
    <td WIDTH="13" VALIGN="TOP">
      <p ALIGN="RIGHT"><br>
    </td>
    <td WIDTH="178" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><br>
      Three Months Ended</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><br>
    </td>
    <td WIDTH="165" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><br>
      Six Months Ended</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="217" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="JUSTIFY"><br>
      (In millions)</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="77" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">June 29,<br>
      2002</td>
    <td WIDTH="19" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">June 30,<br>
      2001</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">June 29,<br>
      2002</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="64" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">June 30,<br>
      2001</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="217" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Net income (loss)</td>
    <td WIDTH="13" VALIGN="TOP">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="77" VALIGN="TOP">
      <p style="margin-right: 15" align="right">105</td>
    <td WIDTH="19" VALIGN="TOP">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="70" VALIGN="TOP">
      <p style="margin-right: 15" align="right">126</td>
    <td WIDTH="13" VALIGN="TOP">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="76" VALIGN="TOP">
      <p style="margin-right: 15" align="right">(326)</td>
    <td WIDTH="13" VALIGN="TOP">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="64" VALIGN="TOP">
      <p style="margin-right: 15" align="right">239</td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="217" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p>Other comprehensive income<br>
      &#160;&#160;&#160;(loss)</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="77" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 15" align="right"><br>
      57</td>
    <td WIDTH="19" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 15" align="right"><br>
      (16)</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 15" align="right"><br>
      43</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="64" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 15" align="right"><br>
      (64)</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="217" VALIGN="TOP" style="border-bottom-style: solid">
      <p>Comprehensive income (loss)</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="77" VALIGN="TOP" style="border-bottom-style: solid">
      <p style="margin-right: 15" align="right">162</td>
    <td WIDTH="19" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid">
      <p style="margin-right: 15" align="right">110</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="76" VALIGN="TOP" style="border-bottom-style: solid">
      <p style="margin-right: 15" align="right">(283)</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="64" VALIGN="TOP" style="border-bottom-style: solid">
      <p style="margin-right: 15" align="right">175</td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
      </center>
    </div>
<b>
<p ALIGN="JUSTIFY"><a NAME="eight">Note </a>8. Earnings per Share</p>
</b>
<p ALIGN="JUSTIFY">The dilutive effect of convertible preferred shares and stock
options was 2,113,000 and 2,356,000 shares for the three month periods ending
June&#160;29, 2002 and June&#160;30, 2001 and 1,789,000 and 2,169,000
shares for the six month period ended June&#160;29, 2002 and
June&#160;30, 2001, respectively. Income available to common shareholders
used to calculate both basic and diluted earnings per share approximated net
income for both periods.</p>
<p ALIGN="right"><a NAME="_Hlk14669668">10.</p>
<b>
<p ALIGN="JUSTIFY">Note 9. Gain on Sale of Division</p>
</b>
<p ALIGN="JUSTIFY">Pursuant to a settlement of post&#45;closing obligations
under the purchase and sale agreement for the sale of the Trim division, during
the second quarter of 2002, Textron received $110 million from Collins &
Aikman Products Company (C&A), resulting in an additional gain of $25
million, $9 million, net of income taxes. The proceeds included $95 million for
the repurchase of $126 million of face value of C&A preferred shares and $15
million to settle all other matters under the purchase and sale agreement. In
addition, the fair value of the C&A common stock was revised following
C&A&#39;s recapitalization through a share offering in the quarter.
Textron also received $5 million for accumulated preferred dividends in the
second quarter of 2002.</p>
<b>
<p ALIGN="JUSTIFY">Note </b></a><b>10. Special Charges</p>
</b>
<p ALIGN="JUSTIFY">Special charges are comprised of the following:</p>
    <div align="center">
      <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="679">
  <tr>
    <td WIDTH="35%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="25%" VALIGN="TOP" COLSPAN="2"><font SIZE="3">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">Restructuring Expense</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Fixed Asset</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Intangible and</font></td>
    <td WIDTH="8%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Severance</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Facility and</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Impairment</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Investment</font></td>
    <td WIDTH="8%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">(In millions)</font></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Costs</font></td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Other</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Write&#45;Downs</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Write&#45;Downs</font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Total</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="97%" VALIGN="TOP" COLSPAN="6"><b><font SIZE="3">
      <p ALIGN="JUSTIFY">Three Months Ended June 29, 2002</font></b></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p>Aircraft</font></td>
    <td WIDTH="11%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 25">$ 5</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 25">$ 2</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 15">$ 7</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Fastening Systems</font></td>
    <td WIDTH="11%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 15">2</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Products</font></td>
    <td WIDTH="11%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">3</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">7</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 15">11</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Components</font></td>
    <td WIDTH="11%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">5</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 15">5</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Finance</font></td>
    <td WIDTH="11%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 15">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">Corporate</font></td>
    <td WIDTH="11%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 15">1</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$14</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ 2</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$10</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p style="margin-right: 15">$26</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="97%" VALIGN="TOP" COLSPAN="6"><b><font SIZE="3">
      <p ALIGN="JUSTIFY">Three Months Ended June 30, 2001</font></b></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Aircraft</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 15">$&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Fastening Systems</font></td>
    <td WIDTH="11%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">10</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">6</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 15">17</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Products</font></td>
    <td WIDTH="11%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">6</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">2</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 15">8</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Components</font></td>
    <td WIDTH="11%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">4</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">2</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 15">6</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Finance</font></td>
    <td WIDTH="11%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">2</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 15">2</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">Corporate</font></td>
    <td WIDTH="11%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">2</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 15">2</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$24</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ 10</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ 1</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p style="margin-right: 15">$35</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="97%" VALIGN="TOP" COLSPAN="6"><b><font SIZE="3">
      <p ALIGN="JUSTIFY">Six Months Ended June 29, 2002</font></b></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Aircraft</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ 9</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ 2</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 15">$11</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Fastening Systems</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">4</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p style="margin-right: 15">6</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Products</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">2</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">2</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">9</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">13</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Components</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">4</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">5</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Finance</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">Corporate</font></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">1</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$20</font></td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ 4</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$12</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">$36</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="97%" VALIGN="TOP" COLSPAN="6"><b><font SIZE="3">
      <p ALIGN="JUSTIFY">Six Months Ended June 30, 2001</font></b></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Aircraft</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">$&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Fastening Systems</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">17</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">14</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">33</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Products</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">11</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">2</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">13</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Components</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">20</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">4</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">24</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Finance</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">2</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">Corporate</font></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">2</font></td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">3</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">5</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$51</font></td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ 2</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$20</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ 4</font></td>
    <td WIDTH="8%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 15">$77</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
    </center>
      </div>
      <a NAME="ten">
<p ALIGN="RIGHT">11.</p>
<p ALIGN="JUSTIFY">To improve returns at core businesses and to complete the
integration of certain acquisitions, Textron approved and committed to a
restructuring program in the fourth quarter of 2000 based upon targeted cost
reductions. This program was further expanded in 2001 and is expected to be
substantially completed within the next twelve months. The program includes
corporate and segment direct and indirect workforce reductions, consolidation of
facilities primarily in the United States and Europe, rationalization of certain
product lines, outsourcing of non&#45;core production activity, the
divestiture of non&#45;core businesses and streamlining of sales and
administrative overhead.</p>
<p ALIGN="JUSTIFY">Under this restructuring program, excluding Automotive Trim,
Textron has reduced its workforce by approximately 5,900 employees through
June&#160;29, 2002 and has closed 60 facilities, including 28 manufacturing
plants. Textron expects a total reduction of at least 7,500 employees, excluding
Automotive Trim, representing approximately 13% of Textron&#39;s global
workforce since the restructuring was first announced.</p>
<p ALIGN="JUSTIFY">Restructuring costs and related asset impairment charges
recorded in earnings have been included in special charges on the consolidated
statement of income.</p>
<p ALIGN="JUSTIFY">An analysis of Textron&#39;s special charges for
restructuring and related reserve accounts is summarized below:</p>
      <div align="center">
        <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="630">
  <tr>
    <td WIDTH="34%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="JUSTIFY"><br>
      (In millions)</td>
    <td WIDTH="18%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">Asset<br>
      Impairments</td>
    <td WIDTH="15%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">Severance<br>
      Costs</td>
    <td WIDTH="16%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">Facilities<br>
      & Other</td>
    <td WIDTH="13%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><br>
      Total</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Balance December 29, 2001</td>
    <td WIDTH="18%" VALIGN="TOP" align="left">
      <p style="margin-right: 20" align="right">$&nbsp;&nbsp; &#45;</td>
    <td WIDTH="15%" VALIGN="TOP" align="left">
      <p align="right" style="margin-right: 20">$&nbsp; 31</td>
    <td WIDTH="16%" VALIGN="TOP" align="left">
      <p align="right" style="margin-right: 20">$&nbsp;&nbsp; 3</td>
    <td WIDTH="13%" VALIGN="TOP" align="left">
      <p align="right" style="margin-right: 20">$&nbsp; 34</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Additions</td>
    <td WIDTH="18%" VALIGN="TOP" align="left">
      <p style="margin-right: 20" align="right">12</td>
    <td WIDTH="15%" VALIGN="TOP" align="left">
      <p align="right" style="margin-right: 20">24</td>
    <td WIDTH="16%" VALIGN="TOP" align="left">
      <p align="right" style="margin-right: 20">5</td>
    <td WIDTH="13%" VALIGN="TOP" align="left">
      <p align="right" style="margin-right: 20">41</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Reserves deemed unnecessary</td>
    <td WIDTH="18%" VALIGN="TOP" align="left">
      <p style="margin-right: 20" align="right">&#45;</td>
    <td WIDTH="15%" VALIGN="TOP" align="left">
      <p align="right" style="margin-right: 20">(4)</td>
    <td WIDTH="16%" VALIGN="TOP" align="left">
      <p align="right" style="margin-right: 20">(1)</td>
    <td WIDTH="13%" VALIGN="TOP" align="left">
      <p align="right" style="margin-right: 20">(5)</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Non&#45;cash utilization</td>
    <td WIDTH="18%" VALIGN="TOP" align="left">
      <p style="margin-right: 20" align="right">(12)</td>
    <td WIDTH="15%" VALIGN="TOP" align="left">
      <p align="right" style="margin-right: 20">&#45;</td>
    <td WIDTH="16%" VALIGN="TOP" align="left">
      <p align="right" style="margin-right: 20">&#45;</td>
    <td WIDTH="13%" VALIGN="TOP" align="left">
      <p align="right" style="margin-right: 20">(12)</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="JUSTIFY">Cash paid</td>
    <td WIDTH="18%" VALIGN="TOP" align="left" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right">&#45;</td>
    <td WIDTH="15%" VALIGN="TOP" align="left" style="border-bottom-style: solid; border-bottom-width: 1">
      <p align="right" style="margin-right: 20">(26)</td>
    <td WIDTH="16%" VALIGN="TOP" align="left" style="border-bottom-style: solid; border-bottom-width: 1">
      <p align="right" style="margin-right: 20">(1)</td>
    <td WIDTH="13%" VALIGN="TOP" align="left" style="border-bottom-style: solid; border-bottom-width: 1">
      <p align="right" style="margin-right: 20">(27)</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="JUSTIFY">Balance June 29, 2002</td>
    <td WIDTH="18%" VALIGN="TOP" align="left" style="border-bottom-style: solid">
      <p style="margin-right: 20" align="right">$&nbsp;&nbsp; &#45;</td>
    <td WIDTH="15%" VALIGN="TOP" align="left" style="border-bottom-style: solid">
      <p align="right" style="margin-right: 20">$&nbsp; 25</td>
    <td WIDTH="16%" VALIGN="TOP" align="left" style="border-bottom-style: solid">
      <p align="right" style="margin-right: 20">$&nbsp;&nbsp; 6</td>
    <td WIDTH="13%" VALIGN="TOP" align="left" style="border-bottom-style: solid">
      <p align="right" style="margin-right: 20">$&nbsp; 31</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
        </center>
      </div>
<p ALIGN="JUSTIFY">Severance costs are generally paid on a monthly basis over
the severance period granted to each employee or on a lump sum basis when
required. Facilities and other costs represent lease termination costs and
facility and plant clean&#45;up costs. Lease termination costs are generally
paid upon exiting the facility or over the remaining lease term and facility and
plant clean&#45;up costs are paid in accordance with normal payment terms.</p>
<p ALIGN="JUSTIFY">The specific restructuring measures and associated estimated
costs are based on Textron&#39;s best judgment under prevailing
circumstances. Textron believes that the restructuring reserve balance of $31
million is adequate to carry out the restructuring activities formally
identified and committed to as of June&#160;29, 2002 and anticipates that
all actions related to these liabilities will be completed within a
twelve&#45;month period.</p>
<p ALIGN="RIGHT">12.</p>
<p ALIGN="JUSTIFY">Textron also incurred costs related to the restructuring that
have not been included in special charges. These expenses primarily consist of
costs for outsourcing certain operations, plant rearrangement, machinery and
equipment relocation, employee replacement and relocation costs, and are
included in segment profit only as incurred. Costs related to these
restructuring items are reflected in the consolidated statement of income as
follows:</p>
      <div align="center">
        <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="667" height="180">
  <tr>
    <td WIDTH="33%" VALIGN="TOP" height="40">
      <p ALIGN="JUSTIFY">&nbsp;</p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" height="40">&nbsp;</td>
    <td WIDTH="29%" VALIGN="TOP" COLSPAN="3" height="40">
      <p ALIGN="CENTER"><br>
      Three Months Ended</td>
    <td WIDTH="3%" VALIGN="TOP" height="40">&nbsp;</td>
    <td WIDTH="32%" VALIGN="TOP" COLSPAN="3" height="40">
      <p ALIGN="CENTER"><br>
      Six Months Ended</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" height="40" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="JUSTIFY"><br>
      (In millions)</td>
    <td WIDTH="4%" VALIGN="TOP" height="40" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="40" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">June 29,<br>
      2002</td>
    <td WIDTH="3%" VALIGN="TOP" height="40" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="40" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">June 30,<br>
      2001</td>
    <td WIDTH="3%" VALIGN="TOP" height="40" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="40" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">June 29,<br>
      2002</td>
    <td WIDTH="4%" VALIGN="TOP" height="40" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="15%" VALIGN="TOP" height="40" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">June 30,<br>
      2001</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" height="19">
      <p ALIGN="JUSTIFY">Cost of sales</td>
    <td WIDTH="4%" VALIGN="TOP" height="19">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="13%" VALIGN="TOP" height="19" align="right">
      <p style="margin-right: 25">1</td>
    <td WIDTH="3%" VALIGN="TOP" height="19">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="13%" VALIGN="TOP" height="19" align="right">
      <p style="margin-right: 25">11</td>
    <td WIDTH="3%" VALIGN="TOP" height="19">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="13%" VALIGN="TOP" height="19">
      <p style="margin-right: 25" align="right">3</td>
    <td WIDTH="4%" VALIGN="TOP" height="19">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="15%" VALIGN="TOP" height="19">
      <p ALIGN="right" style="margin-right: 25">12</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" height="40" style="border-bottom-style: solid; border-bottom-width: 1">
      <p>Selling and administrative<br>
      &#160;&#160;&#160;expenses</td>
    <td WIDTH="4%" VALIGN="TOP" height="40" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="40" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25"><br>
      2</td>
    <td WIDTH="3%" VALIGN="TOP" height="40" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="40" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25"><br>
      2</td>
    <td WIDTH="3%" VALIGN="TOP" height="40" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="40" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25" align="right"><br>
      4</td>
    <td WIDTH="4%" VALIGN="TOP" height="40" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="15%" VALIGN="TOP" height="40" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="right" style="margin-right: 25"><br>
      4</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" height="21" style="border-bottom-style: solid">
      <p>Total</td>
    <td WIDTH="4%" VALIGN="TOP" height="21" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="13%" VALIGN="TOP" height="21" align="right" style="border-bottom-style: solid">
      <p style="margin-right: 25">3</td>
    <td WIDTH="3%" VALIGN="TOP" height="21" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="13%" VALIGN="TOP" height="21" align="right" style="border-bottom-style: solid">
      <p style="margin-right: 25">13</td>
    <td WIDTH="3%" VALIGN="TOP" height="21" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="13%" VALIGN="TOP" height="21" style="border-bottom-style: solid">
      <p style="margin-right: 25" align="right">7</td>
    <td WIDTH="4%" VALIGN="TOP" height="21" style="border-bottom-style: solid">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="15%" VALIGN="TOP" height="21" style="border-bottom-style: solid">
      <p ALIGN="right" style="margin-right: 25">16</td>
  </tr>
</table>
        </center>
      </div>
<b>
<p ALIGN="JUSTIFY">Note 11. Financial Information by Borrowing Group</p>
</b>
<p ALIGN="JUSTIFY">Textron&#39;s financings are conducted through two
borrowing groups, Textron Finance and Textron Manufacturing. This framework is
designed to enhance Textron&#39;s borrowing power by separating the Finance
segment, which is a borrowing unit of a specialized business nature. Textron
Finance consists of Textron Financial Corporation consolidated with its
subsidiaries, which are the entities through which Textron operates its Finance
segment. Textron Finance&#39;s operations are financed primarily by
borrowing from its own group of external creditors. Textron Manufacturing is
Textron Inc., the parent company, consolidated with the entities that operate in
the Aircraft, Fastening Systems, Industrial Products and Industrial Components
business segments.</p>
      </a><font SIZE="3"><a NAME="revenues">
<p ALIGN="RIGHT">13.</p>
<p ALIGN="left"><b>Note 11: Financial Information by Borrowing Group (continued)</p>
<p></b></a><b><a NAME="mfgcf">Textron Manufacturing</a><br>
</b>(unaudited) (In millions)</p>
</font>
      <div align="center">
        <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="668" height="1187">
  <tr>
    <td WIDTH="61%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="36%" VALIGN="TOP" COLSPAN="5" height="21"><font SIZE="3">
      <p ALIGN="CENTER">Six Months Ended</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" height="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="3">
      <p>Condensed Statements of Cash Flows</font></b></td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2" height="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">June 29, 2002</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" height="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">June 30, 2001</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" height="21"><b><font SIZE="3">
      <p>Cash flows from operating activities:</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" height="21" align="left">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" height="21" align="left">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21" align="left">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21" align="right">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" height="21" align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="19"><font SIZE="3">
      <p>Net (loss) income</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="19" align="left"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="19" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(326)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="19" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="19" align="left"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="19" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">239</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="19" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="40"><font SIZE="3">
      <p>Adjustments to reconcile net (loss) income to net cash<br>
      &#160;&#160;&#160;provided (used) by operating activities:</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="40" align="right">
      <p style="margin-right: 20" align="right"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="40" align="right">
      <p style="margin-right: 20" align="right"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="40"><font SIZE="3">
      <p>&#160;&#160;&#160;Earnings of Textron Finance less than
      (greater than)<br>
      &#160;&#160;&#160;&#160;&#160;&#160;distributions
      to Textron Manufacturing</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="40" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right"><br>
      36</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="40" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right"><br>
      (28)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="40"><font SIZE="3">
      <p>&#160;&#160;&#160;Cumulative effect of change in accounting
      principle,<br>
      &#160;&#160;&#160;&#160;&#160;&#160;net of income
      taxes</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="40" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right"><br>
      488</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="40" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>&#160;&#160;&#160;Depreciation</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">145</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">194</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>&#160;&#160;&#160;Amortization</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">10</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">49</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>&#160;&#160;&#160;Special charges</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">36</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">77</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>&#160;&#160;&#160;Deferred income taxes</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(10)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">16</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>&#160;&#160;&#160;Gain on sale of division</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(25)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="40"><font SIZE="3">
      <p>&#160;&#160;&#160;Changes in assets and liabilities
      excluding those<br>
      &#160;&#160;&#160;&#160;&#160;&#160;related to
      acquisitions and divestitures:</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="40" align="right">
      <p style="margin-right: 20" align="right"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="40" align="right">
      <p style="margin-right: 20" align="right"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Commercial
      and U.S. government receivables</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(142)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(204)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Inventories</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(52)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(210)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Other
      assets</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(98)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(133)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Accounts
      payable</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(19)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(43)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Other
      accrued liabilities</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(25)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(46)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>&#160;&#160;&#160;Other &#45; net</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">12</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">26</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Net cash
      provided (used) by operating activities</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p>&nbsp;&nbsp;</p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">30</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(63)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><b><font SIZE="3">
      <p>Cash flows from investing activities:</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right">
      <p style="margin-right: 20" align="right"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right">
      <p style="margin-right: 20" align="right"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Capital expenditures</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(133)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(267)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Cash used in acquisitions</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(163)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Net proceeds from dispositions</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">39</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Proceeds from sale of fixed assets</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">26</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">11</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Due from Textron Finance</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">510</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Other investing activities &#45; net</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(1)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">4</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Net cash
      provided (used) by investing activities</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">441</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(415)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><b><font SIZE="3">
      <p>Cash flows from financing activities:</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right">
      <p style="margin-right: 20" align="right"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right">
      <p style="margin-right: 20" align="right"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Increase (decrease) in short&#45;term debt</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(134)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">599</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Proceeds from issuance of long&#45;term debt</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">301</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">2</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Principal payments and retirements on long&#45;term debt</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(2)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(33)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Proceeds from exercise of stock options</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">19</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">21</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Purchases of Textron common stock</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(164)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(42)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Dividends paid</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(137)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(92)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><font SIZE="3">
      <p>Contributions paid to Textron Finance</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(40)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Net cash
      (used) provided by financing activities</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(117)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">415</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21"><b><font SIZE="3">
      <p>Net increase (decrease) in cash and cash equivalents</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">354</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">(63)</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>Cash and cash equivalents at beginning of period</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid; border-bottom-width: 1" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">241</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid; border-bottom-width: 1" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">282</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid; border-bottom-width: 1" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid"><font SIZE="3">
      <p>Cash and cash equivalents at end of period</font></td>
      </center>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid" align="left"><font SIZE="3">
      <p ALIGN="left">&nbsp;&nbsp; $</font></td>
        <center>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">595</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid" align="left"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">219</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="40"><b><font SIZE="3">
      <p>Supplemental schedule of non&#45;cash investing and financing<br>
      &#160;&#160;&#160;activities:</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="40" align="right">
      <p style="margin-right: 20" align="right"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="40" align="right">
      <p style="margin-right: 20" align="right"></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="40"><font SIZE="3">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Capital
      lease obligations incurred to finance future<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;construction</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="40" align="left"><font SIZE="3">
      <p ALIGN="RIGHT"><br>
      $</font></td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="40" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right"><br>
      79</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="40" align="left"><font SIZE="3">
      <p ALIGN="RIGHT"><br>
      $</font></td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="40" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="40" align="left">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="61%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid"><font SIZE="3">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;Capital
      expenditure financed through capital leases</font></td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid" align="left"><font SIZE="3">
      <p ALIGN="RIGHT">&nbsp;$</font></td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">9</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid" align="left">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid" align="left"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid" align="right"><font SIZE="3">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="21" style="border-bottom-style: solid" align="left">
      <p></p>
    </td>
  </tr>
</table>
      </center>
    </div>
<p ALIGN="RIGHT">14.</p>
<b>
<p>Note 12: Segment Information</p>
</b>
    <div align="center">
      <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="695">
  <tr>
    <td WIDTH="250" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="200" VALIGN="TOP" COLSPAN="5"><font SIZE="3">
      <p ALIGN="CENTER">Three Months Ended</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="200" VALIGN="TOP" COLSPAN="5"><font SIZE="3">
      <p ALIGN="CENTER">Six Months Ended</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="252" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p><br>
      (In millions)</font></td>
    <td WIDTH="93" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">June 29,<br>
      2002</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="92" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">June 30,<br>
      2001</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="87" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">June 29,<br>
      2002</font></td>
    <td WIDTH="15" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="92" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">June 30,<br>
      2001</font></td>
    <td WIDTH="8" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><b><font SIZE="3">
      <p><a NAME="_Hlk9311384"></a><a NAME="_Hlk9311385"></a><a NAME="_Hlk9311386">REVENUES</a></font></b></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>MANUFACTURING:</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>&#160;&#160;&#160;Aircraft</font></td>
    <td WIDTH="10" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">1,323</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">1,258</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">2,370</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">2,280</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>&#160;&#160;&#160;Fastening Systems</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">431</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">451</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">827</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">917</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>&#160;&#160;&#160;Industrial Products</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">505</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">541</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">973</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">1,090</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="252" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>&#160;&#160;&#160;Industrial Components</font></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="77" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">417</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">874</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="24" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="59" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">779</font></td>
    <td WIDTH="15" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="78" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">1,706</font></td>
    <td WIDTH="8" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">2,676</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">3,124</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">4,949</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">5,993</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="252" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>FINANCE</font></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="77" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">148</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">164</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="24" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="59" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">293</font></td>
    <td WIDTH="15" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="78" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">335</font></td>
    <td WIDTH="8" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="252" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p>Total revenues</font></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="77" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p style="margin-right: 20" align="right">2,824</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p style="margin-right: 20" align="right">3,288</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="24" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="59" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p style="margin-right: 20" align="right">5,242</font></td>
    <td WIDTH="15" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="78" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p style="margin-right: 20" align="right">6,328</font></td>
    <td WIDTH="8" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><b><font SIZE="3">
      <p>SEGMENT OPERATING PROFIT*</font></b></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>MANUFACTURING:</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>&#160;&#160;&#160;Aircraft</font></td>
    <td WIDTH="10" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">147</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">120</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">226</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">227</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>&#160;&#160;&#160;Fastening Systems</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">20</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">35</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">28</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">77</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>&#160;&#160;&#160;Industrial Products</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">12</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">65</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">42</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">125</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>&#160;&#160;&#160;Industrial Components</font></td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">24</font></td>
    <td WIDTH="7" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">81</font></td>
    <td WIDTH="7" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">46</font></td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">160</font></td>
    <td WIDTH="6" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">203</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">301</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">342</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">589</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>FINANCE</font></td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">29</font></td>
    <td WIDTH="7" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">43</font></td>
    <td WIDTH="7" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">51</font></td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">92</font></td>
    <td WIDTH="6" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>Segment profit</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">232</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">344</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">393</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">681</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>Special charges</font></td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">(26)</font></td>
    <td WIDTH="7" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">(35)</font></td>
    <td WIDTH="7" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">(36)</font></td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">(77)</font></td>
    <td WIDTH="6" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>Segment operating income</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">206</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">309</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">357</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">604</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>Gain on sale of division</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">25</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">25</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>Goodwill amortization**</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">(25)</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">(49)</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP"><font SIZE="3">
      <p>Corporate expenses and other &#45; net</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">(31)</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">(39)</font></td>
    <td WIDTH="7" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">(60)</font></td>
    <td WIDTH="13" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP"><font SIZE="3">
      <p style="margin-right: 20" align="right">(81)</font></td>
    <td WIDTH="6" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>Interest expense, net</font></td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="75" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">(25)</font></td>
    <td WIDTH="7" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">(40)</font></td>
    <td WIDTH="7" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="57" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">(55)</font></td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="76" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p style="margin-right: 20" align="right">(84)</font></td>
    <td WIDTH="6" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="250" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p>Income from operations before income<br>
      &#160;&#160;&#160;taxes and distributions on preferred<br>
      &#160;&#160;&#160;securities of subsidiary trusts</font></td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="RIGHT"><br>
      <br>
      $</font></td>
    <td WIDTH="75" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p style="margin-right: 20" align="right"><br>
      <br>
      175</font></td>
    <td WIDTH="7" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="RIGHT"><br>
      <br>
      $</font></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p style="margin-right: 20" align="right"><br>
      <br>
      205</font></td>
    <td WIDTH="7" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="22" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="RIGHT"><br>
      <br>
      $</font></td>
    <td WIDTH="57" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p style="margin-right: 20" align="right"><br>
      <br>
      267</font></td>
    <td WIDTH="13" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="8" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="RIGHT"><br>
      <br>
      $</font></td>
    <td WIDTH="76" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p style="margin-right: 20" align="right"><br>
      <br>
      390</font></td>
    <td WIDTH="6" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
      </center>
    </div>
    <div align="center">
      <center>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="693">
  <tr>
    <td WIDTH="37" VALIGN="TOP">
      <p ALIGN="RIGHT">*</td>
    <td WIDTH="648" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Segment profit represents a measurement used by Textron
      to evaluate operating performance. Segment profit for manufacturing
      segments does not include interest, certain corporate expenses, special
      charges and gains and losses from the disposition of significant business
      units. The measurement for the Finance segment includes interest income,
      interest expense and distributions on preferred securities of Finance
      subsidiary trust, and excludes special charges.<br>
    </td>
  </tr>
  <tr>
    <td WIDTH="37" VALIGN="TOP">
      <p ALIGN="RIGHT">**</td>
    <td WIDTH="648" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Pursuant to SFAS No. 142, beginning on
      December&#160;30, 2001, goodwill is no longer amortized. To reflect
      the adoption of this Statement and the fact that the Company does not
      include amortization of goodwill in its internal evaluation of segment
      performance, the Company has recast its segment data for comparability by
      reclassifying goodwill amortization out of segment profit in prior
      periods.</td>
  </tr>
</table>
      </center>
    </div>
<p ALIGN="RIGHT">15.</p>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="853">
  <tr>
    <td WIDTH="72" VALIGN="TOP"><b>
      <p ALIGN="JUSTIFY"><a NAME="mda">Item 2.</a></b></td>
    <td WIDTH="773" VALIGN="TOP"><b><u>
      <p ALIGN="JUSTIFY">MANAGEMENT&#39;S DISCUSSION AND ANALYSIS OF
      FINANCIAL CONDITION AND RESULTS OF OPERATIONS</u></b></td>
  </tr>
</table>
<b>
<p ALIGN="JUSTIFY">Results of operations <font SIZE="3">
      &#45;</font> Three months ended June 29, 2002
vs. Three months ended June 30, 2001</p>
</b>
<p ALIGN="JUSTIFY">Revenues decreased to $2.8 billion in the second quarter 2002
from $3.3 billion in the second quarter 2001, primarily due to the divestitures
of Automotive Trim (Trim), Turbine Engine Components Textron (TECT) and a number
of other businesses that contributed $504 million to the decrease and softer
sales in several of Textron&#39;s segments, partially offset by higher sales
in the Aircraft segment, as more fully discussed below. Net income was $105
million in the second quarter 2002, compared to $126 million in the second
quarter 2001. Diluted earnings per share were $0.74 in the second quarter 2002,
compared to $0.88 in the second quarter 2001. These results included an
after&#45;tax gain of $9 million in the second quarter 2002 from
transactions related to the divestiture of Trim.</p>
<p ALIGN="JUSTIFY">In January 2002, Textron reorganized management
responsibility for several divisions which were previously reported in the
Automotive and Industrial Products segments into the newly created Industrial
Components segment. The Industrial Components segment includes the Fluid and
Power divisions, the former Automotive divisions and TECT. In addition,
management responsibility for Textron Lycoming was transferred to the Aircraft
segment.</p>
<p ALIGN="JUSTIFY">Effective December 30, 2001, Textron adopted Statement of
Financial Accounting Standards (SFAS) No. 142, &quot;Goodwill and Other
Intangible Assets&quot;. Under this Statement, goodwill and certain assets with
indefinite lives are no longer amortized and must be tested for impairment
annually. Textron also adopted the remaining provisions of SFAS No. 141
&quot;Business Combinations&quot; on December 30, 2001, which requires
intangible assets that do not meet the new criteria set by this Statement to be
classified as goodwill upon adoption. Amortization will continue to be recorded
on other intangible assets not classified as goodwill. In the second quarter
2001, pro forma net income excluding amortization of goodwill was $148 million,
or $1.04 per diluted share. To reflect the adoption of SFAS No. 142 and the fact
that the Company does not include amortization of goodwill in its internal
evaluation of segment performance, the Company has recast its segment data for
comparability by reclassifying goodwill amortization from segment profit in
prior periods.</p>
<p ALIGN="JUSTIFY">During the second quarter 2002, Textron recorded an
after&#45;tax transitional goodwill impairment charge of $488 million, which
is reported in the caption &quot;Cumulative effect of change in accounting
principle, net of income taxes&quot; retroactive to the beginning of fiscal year
2002. This after&#45;tax charge relates to the following segments: $274
million in Industrial Products; $111 million in Industrial Components; $88
million in Fastening Systems; and $15 million in Finance.<b> </b>For Industrial
Products, the primary factor resulting in the impairment charge was the
difficult economic environment in the telecommunication industry which has
experienced a significant decline in demand. This decline has resulted in lower
sales and operating margins than originally anticipated with the acquisitions of
the InteSys and Tempo businesses. For Industrial Components and Fastening
Systems, the primary factor was the decline in demand in certain industries in
which these segments operate due to the economic slowdown. The Finance
segment&#39;s impairment charge is in its franchise finance division and is
primarily the result of decreasing loan volumes and an unfavorable
securitization market. No impairment charge was appropriate for these segments
under the previous goodwill impairment accounting standard, which Textron
applied based on undiscounted cash flows.</p>
<p ALIGN="RIGHT">16.</p>
<p ALIGN="JUSTIFY">Segment profit of $232 million in the second quarter 2002
decreased $112 million from $344 million in the second quarter 2001 primarily
due to a reduced contribution related to sales volume, the divestitures of Trim
and TECT, which contributed $41 million to the decrease, an increase in reserves
for receivables and inventory and low volume manufacturing inefficiencies,
partially offset by the benefit of restructuring activities, as more fully
discussed below. Segment profit represents a measurement used by Textron to
evaluate operating performance. Segment profit for manufacturing segments does
not include interest, certain corporate expenses, special charges and gains and
losses from the disposition of significant business units. The measurement for
the Finance segment includes interest income, interest expense and distributions
on preferred securities of Finance subsidiary trust, and excludes special
charges. For a reconciliation of segment profit to income from operations before
income taxes and distributions on preferred securities of subsidiary trusts, see
Note 12 of Textron&#39;s financial statements.</p>
<p ALIGN="JUSTIFY">The<b> Aircraft segment&#39;s</b> revenues and profit
increased $65 million and $27 million, respectively.</p>
    <ul>
      <li>
        <p ALIGN="JUSTIFY">Cessna&#39;s revenues increased $61 million primarily
    due to higher used aircraft sales volume of $44 million, higher Citation
    business jet volume of $31 million, higher pricing of $17 million (net of $6
    million in lower resale prices for trade&#45;in aircraft) and higher
    spare parts and service sales of $5 million. These were partially offset by
    $34 million in lower sales volume of single engine piston aircraft and
    engines that have been affected by the weak economy. Profit increased $24
    million primarily as a result of the higher pricing of $17 million, a
    benefit of $8 million from the changes in sales volume and a favorable mix,
    and lower engineering expenses of $6 million, partially offset by
    start&#45;up costs of $7 million related to the new Sovereign business
    jet.</li>
      <li>
        <p ALIGN="justify" style="margin-top: 12">Bell Helicopter&#39;s revenues increased $4 million
    as higher revenues of $25 million from the U.S. Government, primarily on the
    V&#45;22 program and the H&#45;1 upgrade contracts, were partially
    offset by lower commercial sales of $13 million and lower foreign military
    sales of $8 million. Sales in the commercial business primarily reflected
    lower commercial aircraft sales of $41 million, partially offset by higher
    commercial spares and service sales of $23 million and higher sales of kits
    used to modernize older model Huey helicopters of $9 million. Bell&#39;s
    profit increased $3 million primarily as a result of 2001 expenses of $8
    million associated with outsourcing certain operations and higher profit of
    $6 million in its U.S. Government business, primarily on the V&#45;22
    contract, partially offset by lower profit of $14 million in its commercial
    business.</li>
    </ul>
<blockquote>
    <p ALIGN="JUSTIFY">The lower profit of $14 million in Bell&#39;s
    commercial business primarily reflected reduced pricing of $15 million
    related to one commercial helicopter model. Additionally, profit was lower
    due to a reduced contribution of $5 million from the lower commercial
    aircraft sales, increased costs of $3 million as a result of production line
    changes, higher warranty expense of $3 million, lower income of $3 million
    from a joint venture partner related to the BA609 program, costs of $2
    million required to reconfigure two test aircraft and other cost increases
    of $5 million. These decreases in profit were partially offset by lower
    product development expenses of $11 million associated with the BA609
    program and a benefit of $8 million related to the higher sales of
    commercial spares and service and Huey kits.</p>
    <p ALIGN="RIGHT">17.</p>
    <p ALIGN="JUSTIFY">As authorized by an Acquisition Decision Memorandum
    signed by the Department of Defense in December 2001, the V&#45;22
    program continues to proceed at low&#45;rate production levels. Under
    the low&#45;rate production, Textron continues to manufacture aircraft
    which will subsequently be modified for engineering changes required by the
    Department of Defense. On August 1, 2002, Bell was awarded a modification to
    its contract for the next two lots, totaling twenty aircraft. The
    V&#45;22 returned to flight operations on May 29, 2002 for extensive
    flight testing which is a prerequisite for returning to operational use.</p>
    <p ALIGN="JUSTIFY">The delays experienced in the V&#45;22 program have
    also slowed the development and certification of the BA609 civil tiltrotor
    aircraft. Management believes that the V&#45;22 should lead tiltrotor
    technology into the marketplace and is currently working with its joint
    venture partner, suppliers and customers in the BA609 program to adjust the
    planned program arrangements and schedule for these delays.</p>
</blockquote>
<p ALIGN="JUSTIFY">The<b> Fastening Systems segment&#39;s</b> revenues and
profit decreased $20 million and $15 million, respectively. The revenue decrease
was primarily due to the divestiture of non&#45;core product lines of $13
million, customer price reductions of $8 million and lower sales volume of $6
million from depressed markets, partially offset by the favorable impact of
foreign exchange of $7 million in its European operations. Profit decreased
primarily due to low volume manufacturing inefficiencies, customer price
reductions of $8 million and a reduced contribution of $4 million from lower
sales, partially offset by the benefit of $7 million from restructuring
activities and the favorable impact of a $7 million customer warranty issue in
the second quarter 2001.</p>
<p ALIGN="JUSTIFY">The <b>Industrial Products</b> <b>segment&#39;s</b>
revenues and profit decreased $36 million and $53 million, respectively.
Revenues decreased in most of the segment&#39;s businesses primarily due to
lower sales volume of $54 million from depressed markets and the divestiture of
non&#45;core product lines of $7 million during 2001, partially offset by
higher revenues of $22 million in the aerospace and defense business. Profit
decreased primarily due to a reduced contribution of $32 million from lower
sales volume, an increase of $28 million in reserves for receivables and
inventory and the nonrecurring impact of a gain of $5 million on the sale of a
product line in 2001, partially offset by the benefit of $12 million from
restructuring activities and higher contribution of $3 million from the higher
aerospace and defense revenues.</p>
<p ALIGN="JUSTIFY">The <b>Industrial Components</b> <b>segment&#39;s</b>
revenues and profit decreased $457 million and $57 million, respectively. The
divestitures of Trim and TECT as well as several small product lines in 2001
contributed $484 million and $41 million to the decreases in revenues and
profit, respectively. Excluding the divestitures, revenues increased $27 million
while profit decreased $16 million. The revenue increase was primarily due to
higher volume of $47 million at Kautex as a result of new product launches and a
stronger automotive market, partially offset by lower volume of $17 million in
the other industrial businesses as a result of soft markets and $7 million of
customer price reductions. Excluding the divestitures, the profit decrease was
primarily due to low volume manufacturing inefficiencies, the nonrecurring
impact of a gain of $7 million on the sale of a product line in 2001 and
customer price reductions of $7 million, partially offset by the benefit of $5
million from restructuring activities. Despite the higher sales, contribution
margin was essentially unchanged as a result of product mix.</p>
<p ALIGN="RIGHT">18.</p>
<p ALIGN="JUSTIFY">The <b>Finance segment&#39;s</b> revenues and profit
decreased $16 million and $14 million, respectively. Revenues decreased
primarily due to lower finance charges of $24 million from a lower average yield
(7.6% in the second quarter 2002 compared to 9.5% in the second quarter 2001)
reflecting a lower interest rate environment, partially offset by higher fee
income of $6 million and higher operating lease revenue of $2 million. Profit
decreased primarily due to a higher provision for loan losses of $13 million and
higher operating expenses of $8 million, partially offset by higher interest
margin of $6 million. The increase in the provision for losses reflected higher
net charge&#45;offs of $11 million, primarily related to small business
finance revolving credit loans and exited businesses due to continued weak
economic conditions, and the strengthening of the allowance for losses. Although
management believes it has made adequate provision for anticipated losses,
realization of finance assets remains subject to uncertainties. Subsequent
evaluations of nonperforming assets, in light of factors then prevailing,
including economic conditions, may require additional increases in the allowance
for losses of such assets. The current economic conditions will likely put
continued pressure on the performance of all finance receivable portfolios.
Higher operating expenses were primarily due to higher legal and collection
expenses of $5 million and higher expenses of $2 million related to growth in
managed receivables.</p>
<b>
<p ALIGN="JUSTIFY">Special charges and other costs related to restructuring</b>
for the second quarter 2002 were $26 million and $3 million, respectively,
compared to $35 million and $13 million, respectively, in the second quarter
2001. The table below summarizes the special charges which include restructuring
expenses associated a) with reducing overhead, and closing, consolidating and
downsizing manufacturing facilities, b) corporate personnel reductions and c)
consolidating operations and exiting non&#45;core product lines.</p>
      <div align="center">
        <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="679">
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="73%" VALIGN="TOP" COLSPAN="5" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Three Month Period Ended June 29, 2002</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="27%" VALIGN="TOP" COLSPAN="2"><font SIZE="3">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">Restructuring Expense</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Fixed Asset</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Intangible and</font></td>
    <td WIDTH="12%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Severance</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Facility and</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Impairment</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Investment</font></td>
    <td WIDTH="12%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p>(In millions)</font></td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Costs</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Other</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Write&#45;Downs</font></td>
    <td WIDTH="19%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Write&#45;Downs</font></td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Total</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Aircraft</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ 5</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ &#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ 2</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">$ &#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ 7</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Fastening Systems</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">1</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">1</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">2</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Products</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">3</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">1</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">7</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">11</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Components</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">5</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">5</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Finance</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">Corporate</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">1</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">1</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$14</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ 2</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$10</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">$ &#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$26</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="73%" VALIGN="TOP" COLSPAN="5" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Three Month Period Ended June 30, 2001</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Aircraft</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ &#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ &#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ &#45;</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">$ &#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$ &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Fastening Systems</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">10</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">6</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">1</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">17</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Products</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">6</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">2</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">8</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Components</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">4</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">2</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">6</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Finance</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">2</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">2</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">Corporate</font></td>
    <td WIDTH="13%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">2</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">2</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$24</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ &#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$10</font></td>
    <td WIDTH="19%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">$ 1</font></td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 25">$35</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
    </center>
      </div>
<p ALIGN="JUSTIFY">Costs related to restructuring of $3 million in the second
quarter 2002 and $13 million in the second quarter 2001 are included in segment
profit. For the second quarter 2002, costs related to restructuring totaled $1
million each for Fastening Systems, Industrial Products and Industrial
Components. For the second quarter 2001, costs related to restructuring totaled
$8 million for Aircraft, $3 million for Industrial Components, $1 million for
Fastening Systems, and $1 million for Industrial Products.</p>
<p ALIGN="RIGHT">19.</p>
<p ALIGN="JUSTIFY">Under the restructuring program (exclusive of Trim) Textron
has reduced its workforce by approximately 5,900 employees through June 29,
2002, including approximately 2,100 in Industrial Products, 1,800 in Fastening
Systems, 1,100 in Industrial Components, 700 in Aircraft and 200 in Finance and
Corporate. The remaining workforce reduction of at least 1,600 employees should
be substantially completed within the next twelve months. Textron expects a
total reduction of at least 7,500, excluding Trim, representing approximately
13% of its global workforce since the restructuring was first announced. Through
the consolidations, Textron is closing 80 facilities, including 36 manufacturing
plants representing over 3.8 million square feet of manufacturing floor space.
As of June 29, 2002, 60 facilities, including 28 manufacturing plants, have been
closed primarily in the Industrial Components, Industrial Products and Fastening
Systems segments.</p>
<p ALIGN="JUSTIFY">Textron expects to incur total special charges and costs
related to this restructuring program, excluding goodwill and e&#45;business
write&#45;downs and Trim, of approximately $325 million, of which $191
million has been incurred as of June 29, 2002. Restructuring savings were $111
million for the first half 2002 and are expected to be at least $225 million in
2002 and $250 million in 2003.</p>
<b>
<p ALIGN="JUSTIFY">Corporate expenses and other, net</b> decreased $8 million,
primarily due to the timing of expenditures related to transformation
initiatives of $5 million and royalty income of $4 million in 2002 related to
the divestiture of Trim.</p>
<b>
<p ALIGN="JUSTIFY">Interest expense, net</b> &#45; decreased $15 million
primarily due to the benefit of $9 million as a result of a lower level of
average debt primarily as a result of the pay down of debt with the proceeds
from the divestiture of Trim and the benefit of a lower interest rate
environment and the receipt of $5 million for accumulated interest on the
preferred shares that Collins & Aikman repurchased.</p>
<b>
<p ALIGN="JUSTIFY">Income Taxes <font SIZE="3">&#45;</font> </b>The effective tax rate for the second
quarter 2002 increased to 36.0% primarily due to the tax impact of the gain
related to the divestiture of Trim. Excluding the impact of the gain, the
effective tax rate was 31.5% compared to 35.2% in the second quarter 2001. The
3.7% decrease is primarily due to a decrease of 2.7% in the effective tax rate
from the elimination of goodwill amortization under SFAS No. 142, which is
primarily a non&#45;tax deductible expense, and a favorable change in the
tax law related to the deductibility of dividends paid on company stock held by
an employee stock ownership plan that reduced the effective tax rate by 2.8%
(1.5% of this reduction represents a nonrecurring benefit upon implementation of
the new tax law). These were partially offset by an increase in the foreign tax
rate of 2.3%.</p>
<b>
<p ALIGN="JUSTIFY">Results of operations <font SIZE="3">
      &#45;</font> Six months ended June 29, 2002 vs.
Six months ended June 30, 2001</p>
</b>
<p ALIGN="JUSTIFY">Revenues decreased to $5.2 billion in the first half 2002
from $6.3 billion in the first half 2001, primarily due to the divestitures of
Trim, TECT and a number of other businesses that contributed $962 million to the
decrease and softer sales in most of Textron&#39;s segments, partially
offset by higher sales in the Aircraft segment, as more fully discussed below.
Income before cumulative effect of change in accounting principle, net of income
taxes, was $162 million for the first half 2002, compared to $239 million in the
first half 2001. Diluted earnings per share before cumulative effect of change
in accounting principle, net of income taxes, were $1.14 in the first half 2002,
compared to $1.67 in the first half 2001.</p>
<p ALIGN="JUSTIFY">Textron recorded a net loss of $326 million in the first half
of 2002, compared to net income of $239 million in the first half 2001. Net
income for the first half 2002 included the cumulative effect of a change in
accounting principle, net of income taxes of $488 million. In the first half
2001, pro forma net income excluding amortization of goodwill was $283 million,
or $1.98 per diluted share.</p>
<p ALIGN="RIGHT">20.</p>
<p ALIGN="JUSTIFY">Segment profit of $393 million in the first half 2002
decreased $288 million from $681 million in the first half 2001 primarily due to
a reduced contribution related to lower sales volume, the divestitures of Trim
and TECT, which contributed $79 million to the decrease, an increase in reserves
for receivables and inventory, and low volume manufacturing inefficiencies,
partially offset by the benefit of restructuring activities, as more fully
discussed below.</p>
<p ALIGN="JUSTIFY">The<b> Aircraft segment&#39;s</b> revenues increased $90
million, while profit decreased $1 million.</p>
      <ul>
        <li>
          <p ALIGN="JUSTIFY">Cessna&#39;s revenues increased $107 million
    primarily due to higher used aircraft sales volume of $64 million, higher
    Citation business jet volume of $57 million, higher pricing of $36 million
    (net of $12 million in lower resale prices for trade&#45;in aircraft)
    and higher spare parts and service sales of $9 million. These were partially
    offset by $54 million in lower sales volume of single engine piston aircraft
    and engines that have been affected by the weak economy. Profit increased
    $19 million primarily as a result of the higher pricing of $36 million, a
    benefit of $10 million from the changes in sales volume and a favorable mix
    and lower engineering expenses of $5 million, partially offset by
    start&#45;up costs of $8 million related to the new Sovereign business
    jet, an increase in reserves for inventory of $7 million (including a
    write&#45;down of $5 million for used aircraft valuations), a higher
    warranty reserve of $5 million related to piston aircraft engines, higher
    LIFO expense of $4 million and the impact of higher overhead rates.</li>
        <li>
          <p ALIGN="justify" style="margin-top: 12">Bell Helicopter&#39;s revenues decreased $17 million
    as higher revenues of $34 million from the U.S. Government, primarily on the
    V&#45;22 program and the H&#45;1 upgrade contracts, were more than
    offset by lower foreign military sales of $26 million and lower commercial
    sales of $25 million. Sales in the commercial business primarily reflected
    lower commercial aircraft sales of $45 million, partially offset by higher
    commercial spares and service sales of $32 million. Bell&#39;s profit
    decreased $20 million primarily as a result of lower profit of $30 million
    in its commercial business, partially offset by 2001 expenses of $8 million
    associated with outsourcing certain operations and higher profit of $2
    million in its U.S. Government business.</li>
      </ul>
<blockquote>
    <p ALIGN="JUSTIFY">The lower profit of $30 million in its commercial
    business primarily reflected reduced pricing of $15 million related to one
    commercial helicopter model, increased reserves for international
    receivables of $10 million, a reduced contribution of $8 million from the
    lower commercial aircraft sales, lower income of $5 million from a joint
    venture partner related to the BA609 program, increased costs of $3 million
    as a result of production line changes, higher warranty expense of $3
    million, costs of $2 million required to reconfigure two test aircraft and
    other cost increases of $5 million. These decreases in profit were partially
    offset by lower product development expenses of $18 million associated with
    the BA609 program and a benefit of $8 million related to the higher
    commercial spares and service sales.</p>
</blockquote>
<p ALIGN="JUSTIFY">The<b> Fastening Systems segment&#39;s</b> revenues and
profit decreased $90 million and $49 million, respectively. The revenue decrease
was primarily due to lower sales volume of $47 million from depressed markets,
the divestiture of non&#45;core product lines of $24 million, customer price
reductions of $16 million and the unfavorable impact of foreign exchange of $3
million in its European operations. Profit decreased primarily due to low volume
manufacturing inefficiencies, a reduced contribution of $23 million from the
lower sales and customer price reductions of $16 million, partially offset by
the benefit of $17 million from restructuring activities and the favorable
impact of a $7 million customer warranty issue in the second quarter 2001.</p>
<p ALIGN="RIGHT">21.</p>
<p ALIGN="JUSTIFY">The <b>Industrial Products</b> <b>segment&#39;s</b>
revenues and profit decreased $117 million and $83 million, respectively.
Revenues decreased in most of the segment&#39;s businesses primarily due to
lower sales of $147 million from depressed markets and the divestiture of
non&#45;core product lines of $15 million during 2001, partially offset by
higher revenues of $35 million in the aerospace and defense business and higher
pricing of $8 million. Profit decreased primarily due to a reduced contribution
of $79 million from the lower sales volume, an increase of $37 million in
reserves for receivables and inventory and the nonrecurring impact of a gain of
$5 million on the sale of a product line in 2001, partially offset by the
benefit of $29 million from restructuring activities, higher pricing of $8
million, higher contribution of $5 million from the higher aerospace and defense
revenues and the favorable impact of $5 million from losses recorded in 2001
related to divested product lines.</p>
<p ALIGN="JUSTIFY">The <b>Industrial Components</b> <b>segment&#39;s</b>
revenues and profit decreased $927 million and $114 million, respectively. The
divestiture of Trim and TECT as well as several small product lines in 2001
contributed $923 million and $79 million to the decreases in revenue and profit,
respectively. Excluding the divestitures, revenues and profit decreased $4
million and $35 million, respectively. The revenue decrease was primarily due to
lower volume of $37 million in the industrial businesses as a result of soft
markets, customer price reductions of $14 million and the unfavorable impact of
foreign exchange of $8 million, partially offset by higher sales volume of $53
million at Kautex primarily as a result of new product launches and a stronger
automotive market. Excluding the divestitures, the profit decrease was primarily
due to low volume manufacturing inefficiencies, customer price reductions of $14
million, a reduced contribution of $7 million from changes in sales volume and
the nonrecurring impact of a gain of $7 million on the sale of a product line in
2001, partially offset by the benefit of $13 million from restructuring
activities.</p>
<p ALIGN="JUSTIFY">The <b>Finance segment&#39;s</b> revenues and profit
decreased $42 million and $41 million, respectively. Revenues decreased
primarily due to lower finance charges of $58 million from a lower average yield
(7.7% in the first half 2002 compared to 9.8% in the first half 2001) reflecting
a lower interest rate environment, partially offset by higher fee income of $11
million and higher operating lease revenue of $5 million. Profit decreased
primarily due to a higher provision for loan losses of $33 million and higher
operating expenses of $20 million, partially offset by higher interest margin of
$11 million. The increase in the provision for losses reflects higher net
charge&#45;offs of $23 million, and the strengthening of the allowance for
losses. Higher net charge&#45;offs were primarily related to exited
businesses, structured capital loans, small business finance revolving credit
loans, and aircraft finance loans. During the first half of 2002, nonperforming
assets increased $70 million to 3.06% of finance assets from 2.13% at December
29, 2001. This increase included a $37 million increase in syndicated bank loans
and a $32 million increase in highly&#45;collateralized aircraft loans.
Nonperforming assets include non&#45;accrual accounts that are not
guaranteed by Textron Manufacturing, for which interest has been suspended, and
repossessed assets. Higher operating expenses were primarily related to higher
legal and collection expenses of $8 million, higher expenses of $6 million
related to growth in managed receivables and higher operating lease depreciation
of $3 million.</p>
<b>
<p ALIGN="RIGHT">&nbsp;</p>
</b>
<p ALIGN="RIGHT">22.</p>
<b>
<p ALIGN="JUSTIFY">Special charges and other costs related to restructuring</b>
for the first half 2002 were $36 million and $7 million, respectively, compared
to $77 million and $16 million, respectively, in the first half 2001. The table
below summarizes the special charges which include restructuring expenses
associated a) with reducing overhead, and closing, consolidating and downsizing
manufacturing facilities, b) corporate personnel reductions and c) consolidating
operations and exiting non&#45;core product lines.</p>
      <div align="center">
        <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="679">
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="73%" VALIGN="TOP" COLSPAN="5" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Six Month Period Ended June 29, 2002</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="27%" VALIGN="TOP" COLSPAN="2"><font SIZE="3">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">Restructuring</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Fixed Asset</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Intangible and</font></td>
    <td WIDTH="12%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Severance</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Facility and</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Impairment</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="CENTER">Investment</font></td>
    <td WIDTH="12%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">(In millions)</font></td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Costs</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Other</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Write&#45;Downs</font></td>
    <td WIDTH="19%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Write&#45;Downs</font></td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Total</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Aircraft</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ 9</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ &#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ 2</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">$ &#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$11</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Fastening Systems</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">4</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">1</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">1</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">6</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Products</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">2</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">2</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">9</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">13</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Components</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">4</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">1</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">5</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Finance</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">Corporate</font></td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">1</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="19%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">1</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$20</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ 4</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$12</font></td>
    <td WIDTH="19%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">$ &#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$36</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="73%" VALIGN="TOP" COLSPAN="5" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="CENTER">Six Month Period Ended June 30, 2001</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Aircraft</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ &#45;</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ &#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ &#45;</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">$ &#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$ &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Fastening Systems</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">17</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">1</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">14</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">1</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">33</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Products</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">11</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">2</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">13</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Industrial Components</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">20</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">4</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">24</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="JUSTIFY">Finance</font></td>
    <td WIDTH="13%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">1</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">1</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="19%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">&#45;</font></td>
    <td WIDTH="12%" VALIGN="TOP"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">2</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="JUSTIFY">Corporate</font></td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">2</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">&#45;</font></td>
    <td WIDTH="19%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">3</font></td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">5</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$51</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$2</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$20</font></td>
    <td WIDTH="19%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 40">$ 4</font></td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="3">
      <p ALIGN="right" style="margin-right: 22">$77</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
      </center>
    </div>
<p ALIGN="JUSTIFY">Costs related to restructuring of $7 million in the first
half of 2002 and $16 million in the first half of 2001 are included in segment
profit. For the first half of 2002, costs related to restructuring totaled $3
million for Fastening Systems, $2 million for Industrial Products and $2 million
for Industrial Components. For the first half of 2001, costs related to
restructuring totaled $8 million for Aircraft, $4 million for Industrial
Components, $3 million for Industrial Products and $1 million for Fastening
Systems.</p>
<b>
<p ALIGN="JUSTIFY">Corporate expenses and other, net</b> decreased $21 million
primarily due to royalties of $7 million in 2002 related to the Trim
divestiture, a favorable adjustment to incentive compensation accruals of $5
million and the timing of expenditures of $4 million related to transformation
initiatives.</p>
<b>
<p ALIGN="JUSTIFY">Interest expense, net</b> &#45; decreased $29 million
primarily due to the benefit of $20 million as a result of a lower level of
average debt primarily as a result of the pay down of debt with the proceeds
from the divestiture of Trim and the benefit of a lower interest rate
environment and the receipt of $5 million for accumulated interest on the
preferred shares that Collins & Aikman repurchased.</p>
<p ALIGN="RIGHT">23.</p>
<b>
<p ALIGN="JUSTIFY">Income Taxes <font SIZE="3">
      &#45;</font> </b>The effective income tax rate for the
first half 2002 increased to 34.5% primarily due to the tax impact of the gain
in the second quarter 2002 related to the divestiture of Trim. Excluding the
impact of this adjustment, the effective tax rate for the first half 2002 was
31.5% compared to 35.2% in the first half 2001. The 3.7% decrease is primarily
due to a decrease of 2.7% in the effective tax rate from the elimination of
goodwill and certain other intangible asset amortization under SFAS No. 142,
which is primarily a non&#45;tax deductible expense, and a favorable change
in the tax law related to the deductibility of dividends paid on company stock
held by an employee stock ownership plan that reduced the effective tax rate by
2.8% (1.5% of this reduction represents a nonrecurring benefit upon
implementation of the new tax law). These were partially offset by an increase
in the foreign tax rate of 2.3%.</p>
<b>
<p ALIGN="JUSTIFY">Liquidity and Capital Resources</p>
</b>
<p ALIGN="JUSTIFY">The Statements of Cash Flows for Textron Inc. and Textron
Manufacturing detailing the changes in cash balances are on pages 4 and 13,
respectively. Textron Manufacturing&#39;s operating cash flow includes
dividends received from Textron Finance of $58 million and $30 million for the
first six months of 2002 and 2001, respectively, net of capital contributions
related to the preferred dividends of $5 million for each six month period.
Dividend payments to shareholders for the first half of 2002 included the
payment due on July 1, 2002 along with two other payments, as opposed to only
two payments made in the first half of 2001. Dividend payments to shareholders
for the first six months of 2002 amounted to $137 million, an increase of $45
million over the first six months of 2001.</p>
<p ALIGN="JUSTIFY">Textron Manufacturing&#39;s debt (net of cash) to total
capital ratio was 29% at June 29, 2002 up slightly from 28% at year end. This
ratio is consistent with Textron Manufacturing&#39;s financial target ratio.</p>
<p ALIGN="JUSTIFY">For liquidity purposes, Textron Manufacturing and Textron
Finance have a policy of maintaining sufficient unused lines of credit to
support their outstanding commercial paper. As of June 29, 2002, Textron
Manufacturing had no outstanding commercial paper and its primary committed
credit facilities of $1.5 billion were undrawn. During the second quarter of
2002, Textron Manufacturing entered into a new primary revolving credit facility
for $1.5 billion, of which $500 million will expire in 2003 and $1 billion will
expire in 2007. Under this revised facility, Textron Manufacturing has retained
substantially the same financial covenants, but is no longer subject to a
material adverse condition clause at every borrowing. Textron Finance has bank
line of credit agreements of $1.5 billion, of which $500 million will expire in
2003 and $1 billion will expire in 2006. None of these lines of credit were used
at June 29, 2002. Unused lines of credit not reserved as support for commercial
paper were $557 million at June 29, 2002 compared to $875 million at
December&#160;29, 2001. The decrease in Textron Finance&#39;s unused
lines of credit is attributable to the paydown and termination of the
short&#45;term revolving note agreement with Textron Manufacturing.</p>
<p ALIGN="JUSTIFY">During the second quarter of 2002, Textron Manufacturing
issued $300 million in notes under Textron Inc.&#39;s existing shelf
registration filed with the SEC, leaving $900 million available under this
registration statement. The proceeds from the issuances are expected to be used
for general corporate purposes.</p>
<p ALIGN="JUSTIFY">Under a shelf registration statement filed with the SEC,
Textron Finance may issue public debt securities in one or more offerings up to
a total maximum offering of $3 billion. Under this facility, Textron Finance
issued $1.2 billion of term notes in the first six months of 2002, primarily in
the U.S. and Canadian markets, that mature in 2003 through 2007. The proceeds
from the issuances were used to refinance maturing commercial paper and
long&#45;term debt at par. At June 29, 2002, Textron Finance had $1.8
billion available under this facility.</p>
<p ALIGN="RIGHT">24.</p>
<p ALIGN="JUSTIFY">During the first six months of 2002, Textron Finance received
net proceeds from securitizations of $169 million of small business finance
receivables (on a revolving basis), $75 million of floorplan finance receivables
(on a revolving basis), $38 million of captive golf and turf finance
receivables, $45 million of resort receivables and $5 million of land finance
receivables. These securitizations provided Textron Finance with an alternate
source of funding while maintaining desired debt&#45;to&#45;capital
ratios. Textron Finance used the proceeds from the securitizations to retire
commercial paper. In connection with a $220 million revolving securitization,
Textron Finance is obligated to repurchase a certain class of loans if Textron
Finance&#39;s credit rating drops below BBB. Such loans amounted to $41
million at June 29, 2002. Textron Finance has no other repurchase obligations in
connection with any other securitization transactions. Textron Finance
anticipates that it will enter into additional securitization transactions
during the remainder of 2002.</p>
<p ALIGN="JUSTIFY">During the fourth quarter of 2001, certain of
Textron&#39;s commercial paper and long&#45;term debt credit ratings
were downgraded by one of the three rating agencies that rate Textron&#39;s
credit facilities. Although Textron&#39;s borrowing spreads have increased
as a result of the downgrades, Textron continues to have access to the
commercial paper, long&#45;term debt and securitization markets. Further
downgrades in Textron&#39;s ratings could increase borrowing spreads or
limit its access to the commercial paper, long&#45;term debt and
securitization markets. In addition, Textron&#39;s revolving bank line of
credit agreements contain certain financial covenants with which Textron must
comply in order to maintain its ability to borrow under the facilities. Textron
was in full compliance with such covenants at June 29, 2002. Textron believes
that it has adequate credit facilities and access to credit markets to meet its
long&#45;term financing needs.</p>
<p ALIGN="JUSTIFY">During the second quarter of 2002, Textron Manufacturing
renegotiated the terms of the equity forward contract in Textron stock that is
intended to hedge the earnings and cash volatility of compensation granted in
Textron stock. The new strike price is $49.09 for 2,262,667 shares. Textron
Manufacturing&#39;s exposure under this hedge is approximately $5 million at
June&#160;29, 2002.</p>
<p ALIGN="JUSTIFY">Under its Board authorized share repurchase program, Textron
repurchased 3,534,500 shares of common stock during the first six months of 2002
at an aggregate cost of $160 million. Taking into consideration minor timing
differences in settlement, Textron used $164 million in cash to purchase its
common stock during the first six months of 2002. Textron utilized the proceeds
of the sale of the Automotive Trim business for these repurchases.</p>
<p ALIGN="JUSTIFY">During the second quarter 2002, Textron received $115 million
in proceeds from C&A related to the sale of the Trim division, as discussed
more fully in Note 9 of Textron&#39;s financial statements. The proceeds
were utilized for general corporate purposes. As of June 29, 2002, Textron held
7.2 million shares of C&A common stock with a carrying value of $9 per
share. Subsequent to June 29, 2002, the market price of C&A common stock
experienced a decline to below $4 per share.</p>
<p ALIGN="JUSTIFY">Management believes that Textron will continue to have
adequate access to credit markets and that its credit facilities and cash flows
from operations will continue to be more than sufficient to meet its operating
needs and to finance growth.</p>
<p ALIGN="right">25.</p>
<i>
<p ALIGN="JUSTIFY">Forward&#45;looking Information: Certain statements in
this release and other oral and written statements made by Textron from time to
time, are forward&#45;looking statements, including those that discuss
strategies, goals, outlook or other non&#45;historical matters; or project
revenues, income, returns or other financial measures. These
forward&#45;looking statements are subject to risks and uncertainties that
may cause actual results to differ materially from those contained in the
statements, including the following: (a) the extent to which Textron is able to
achieve savings from its restructuring plans, (b) changes in worldwide economic
and political conditions that impact interest and foreign exchange rates, (c)
the occurrence of work stoppages and strikes at key facilities of Textron or
Textron&#39;s customers or suppliers, (d) government funding and program
approvals affecting products being developed or sold under government programs,
(e) cost and delivery performance under various program and development
contracts, (f) successful implementation of supply chain and other cost
reduction programs, (g) the timing of certifications of new aircraft products,
(h) the occurrence of further downturns in customer markets to which Textron
products are sold or supplied, (i) Textron&#39;s ability to offset, through
cost reductions, raw material price increases and pricing pressure brought by
original equipment manufacturer customers, (j) the availability and cost of
insurance, (k) pension plan income falling below current forecasts, and (l)
Textron Financial&#39;s ability to maintain credit quality and control
costs.</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
</i>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="679">
  <tr>
    <td WIDTH="10%" VALIGN="TOP"><b>
      <p><a NAME="itemthree">Item 3.</a></b></td>
    <td WIDTH="88%" VALIGN="TOP"><b><u>
      <p>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</u></b></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
<p ALIGN="JUSTIFY">There has been no significant change in the Textron&#39;s
exposure to market risk during the first six months of 2002. For discussion of
the Textron&#39;s exposure to market risk, refer to Item 7A, Quantitative
and Qualitative Disclosures about Market Risk, contained in the
Company&#39;s Annual Report incorporated by reference in Form 10&#45;K
for the calendar year 2001.</p>
<p ALIGN="RIGHT">26.</p>
<b>
<p ALIGN="CENTER"><a NAME="partii">PART II. OTHER INFORMATION</a></p>
</b>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="869">
  <tr>
    <td WIDTH="63" VALIGN="TOP"><b>
      <p><a NAME="itemone">Item 1.</a></b></td>
    <td WIDTH="748" VALIGN="TOP"><b><u>
      <p>LEGAL PROCEEDINGS</u></b></td>
    <td WIDTH="46" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="63" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="748" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Textron has received notice of a purported class action
      that was filed on July 26, 2002, naming Textron, the Textron Savings Plan
      and the Plan&#39;s trustee as defendants. The complaint, which was
      filed in federal district court in Rhode Island and which has not been
      served on any of the defendants, alleges breach of certain fiduciary
      duties under ERISA, based on the amount of Plan assets invested in Textron
      stock during 2000 and 2001. The plaintiff, Linda Lalonde, alleges that she
      participated in Textron&#39;s employee benefit plans during the
      applicable period; she claims to sue on her own behalf and on behalf of
      the employee benefit plans and their participants and beneficiaries during
      2000 and 2001. Textron believes this lawsuit is without merit and intends
      to defend it vigorously.<br>
      <br>
    </td>
    <td WIDTH="46" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="63" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="748" VALIGN="TOP">
      <p ALIGN="JUSTIFY">As previously reported, on April 26, 2002, a lawsuit
      was filed in the United States District Court in Rhode Island on behalf of
      Joel Rosen, who claims to be a Textron shareholder, suing on his own
      behalf and on behalf of a proposed class of Textron shareholders, against
      Textron and certain present and former officers of Textron and Bell
      Helicopter. The lawsuit alleges that the defendants violated antifraud
      provisions of the federal securities laws by making material
      misrepresentations or omissions between October 19, 2000, and September
      26, 2001, in connection with Bell Helicopter&#39;s V&#45;22 and
      H&#45;1 programs. The plaintiff seeks unspecified compensatory
      damages. An identical complaint was subsequently filed by another Textron
      shareholder. Motions have been filed to consolidate these two suits, and
      petitions have been filed by two parties seeking to be named lead
      plaintiff. Textron believes these lawsuits are without merit and intends
      to defend them vigorously.<br>
      <br>
    </td>
    <td WIDTH="46" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="63" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="748" VALIGN="TOP">
      <p ALIGN="JUSTIFY">As previously reported, on May 12, 2000, the
      Massachusetts Water Resources Authority issued a Notice of Violation to
      Textron Systems relating to industrial discharges to the
      Authority&#39;s sewer system from the Textron Systems Wilmington,
      Massachusetts, facility. On May 17, 2002, Textron Systems resolved this
      matter by entering into a consent agreement providing for a penalty of
      $328,000 and requiring that Textron Systems (1) file quarterly reports
      with the MWRA identifying regulated processes and anticipated changes to
      those processes, (2) maintain its treatment systems properly and (3) pay
      certain stipulated penalties for future discharge violations.</td>
    <td WIDTH="46" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
<b>
      </b><a NAME="itemfour">
<p ALIGN="RIGHT">27.</p>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="755" height="647">
  <tr>
    <td WIDTH="76" VALIGN="TOP" HEIGHT="23"><b>
      <p ALIGN="JUSTIFY">Item 4.</b></a></td>
  <td WIDTH="575" VALIGN="TOP" COLSPAN="12" HEIGHT="23"><b>
    <p>SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</b></td>
</tr>
<tr>
  <td WIDTH="76" VALIGN="TOP" height="59">&nbsp;</td>
  <td WIDTH="575" VALIGN="TOP" COLSPAN="12" height="59">
    <p><br>
    At Textron&#39;s annual meeting of shareholders held on
    April&#160;24, 2002 the following items were voted upon:</td>
</tr>
<tr>
  <td WIDTH="76" VALIGN="TOP" height="59">&nbsp;</td>
  <td WIDTH="15" VALIGN="TOP" COLSPAN="2" height="59">
    <p ALIGN="JUSTIFY"><br>
    1.</td>
  <td WIDTH="556" VALIGN="TOP" COLSPAN="10" height="59">
    <p><br>
    The following persons were elected to serve as directors in
    Class&#160;II for three year terms expiring in 2004 and received the
    votes listed.</td>
</tr>
<tr>
  <td WIDTH="76" VALIGN="TOP" height="40">&nbsp;</td>
  <td WIDTH="15" VALIGN="TOP" COLSPAN="2" height="40">&nbsp;</td>
  <td WIDTH="199" VALIGN="TOP" COLSPAN="4" height="40"><u>
    <p ALIGN="CENTER"><br>
    Name</u></td>
  <td WIDTH="188" VALIGN="TOP" COLSPAN="4" height="40"><u>
    <p ALIGN="CENTER"><br>
    For</u></td>
  <td WIDTH="161" VALIGN="TOP" COLSPAN="2" height="40"><u>
    <p ALIGN="CENTER"><br>
    Withheld</u></td>
</tr>
<tr>
  <td WIDTH="76" VALIGN="TOP" height="40">&nbsp;</td>
  <td WIDTH="15" VALIGN="TOP" COLSPAN="2" height="40">&nbsp;</td>
  <td WIDTH="199" VALIGN="TOP" COLSPAN="4" height="40">
    <p ALIGN="JUSTIFY"><br>
    H. Jesse Arnelle</td>
  <td WIDTH="188" VALIGN="TOP" COLSPAN="4" height="40">
    <p ALIGN="CENTER"><br>
    117,694,619</td>
  <td WIDTH="161" VALIGN="TOP" COLSPAN="2" height="40">
    <p ALIGN="CENTER"><br>
    5,043,414</td>
</tr>
<tr>
  <td WIDTH="76" VALIGN="TOP" height="21">&nbsp;</td>
  <td WIDTH="15" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="199" VALIGN="TOP" COLSPAN="4" height="21">
    <p ALIGN="JUSTIFY">Paul E. Gagn&#233;</td>
  <td WIDTH="188" VALIGN="TOP" COLSPAN="4" height="21">
    <p ALIGN="CENTER">117,748,250</td>
  <td WIDTH="161" VALIGN="TOP" COLSPAN="2" height="21">
    <p ALIGN="CENTER">4,989,783</td>
</tr>
<tr>
  <td WIDTH="76" VALIGN="TOP" height="21">&nbsp;</td>
  <td WIDTH="15" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="199" VALIGN="TOP" COLSPAN="4" height="21">
    <p ALIGN="JUSTIFY">Brian H. Rowe</td>
  <td WIDTH="188" VALIGN="TOP" COLSPAN="4" height="21">
    <p ALIGN="CENTER">117,879,167</td>
  <td WIDTH="161" VALIGN="TOP" COLSPAN="2" height="21">
    <p ALIGN="CENTER">4,858,866</td>
</tr>
<tr>
  <td WIDTH="76" VALIGN="TOP" height="21">&nbsp;</td>
  <td WIDTH="15" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="199" VALIGN="TOP" COLSPAN="4" height="21">
    <p>Martin D. Walker</td>
  <td WIDTH="188" VALIGN="TOP" COLSPAN="4" height="21">
    <p ALIGN="CENTER">117,821,068</td>
  <td WIDTH="161" VALIGN="TOP" COLSPAN="2" height="21">
    <p ALIGN="CENTER">4,916,965</td>
</tr>
<tr>
  <td WIDTH="76" VALIGN="TOP" height="21">&nbsp;</td>
  <td WIDTH="15" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="199" VALIGN="TOP" COLSPAN="4" height="21">
    <p ALIGN="JUSTIFY">Thomas B. Wheeler</td>
  <td WIDTH="188" VALIGN="TOP" COLSPAN="4" height="21">
    <p ALIGN="CENTER">117,849,879</td>
  <td WIDTH="161" VALIGN="TOP" COLSPAN="2" height="21">
    <p ALIGN="CENTER">4,888,154</td>
</tr>
<tr>
  <td WIDTH="76" VALIGN="TOP" height="78">&nbsp;</td>
  <td WIDTH="15" VALIGN="TOP" COLSPAN="2" height="78">&nbsp;</td>
  <td WIDTH="556" VALIGN="TOP" COLSPAN="10" height="78">
    <p><br>
    The following directors have terms of office which continued after the
    meeting: Teresa Beck, Lewis B. Campbell, R. Stuart Dickson, Lawrence K.
    Fish, Joe T. Ford, John D. Macomber, Lord Powell of Bayswater KCMG, and Sam
    F. Segnar.</td>
</tr>
<tr>
  <td WIDTH="30" VALIGN="TOP" COLSPAN="2" height="20">&nbsp;</td>
  <td WIDTH="62" VALIGN="TOP" COLSPAN="2" height="20">
    <p ALIGN="JUSTIFY"><br>
    2.</td>
  <td WIDTH="681" VALIGN="TOP" COLSPAN="9" height="20">
    <p><br>
    An amendment to the Textron 1999 Long&#45;Term Incentive Plan was
    approved by the following vote:</td>
</tr>
<tr>
  <td WIDTH="30" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="62" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="160" VALIGN="TOP" COLSPAN="2" height="21"><u>
    <p ALIGN="CENTER"><br>
    For</u></td>
  <td WIDTH="178" VALIGN="TOP" COLSPAN="3" height="21"><u>
    <p ALIGN="CENTER"><br>
    Against</u></td>
  <td WIDTH="101" VALIGN="TOP" COLSPAN="3" height="21"><u>
    <p ALIGN="CENTER"><br>
    Abstain</u></td>
  <td WIDTH="230" VALIGN="TOP" height="21"><u>
    <p ALIGN="CENTER"><br>
    Broker Non&#45;Votes</u></td>
</tr>
<tr>
  <td WIDTH="30" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="62" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="160" VALIGN="TOP" COLSPAN="2" height="21">
    <p ALIGN="CENTER"><br>
    106,064,928</td>
  <td WIDTH="178" VALIGN="TOP" COLSPAN="3" height="21">
    <p ALIGN="CENTER"><br>
    14,508,242</td>
  <td WIDTH="101" VALIGN="TOP" COLSPAN="3" height="21">
    <p ALIGN="CENTER"><br>
    2,164,863</td>
  <td WIDTH="230" VALIGN="TOP" height="21">
    <p ALIGN="CENTER"><br>
    0</td>
</tr>
<tr>
  <td WIDTH="30" VALIGN="TOP" COLSPAN="2" height="40">&nbsp;</td>
  <td WIDTH="62" VALIGN="TOP" COLSPAN="2" height="40">
    <p ALIGN="JUSTIFY"><br>
    3.</td>
  <td WIDTH="681" VALIGN="TOP" COLSPAN="9" height="40">
    <p><br>
    The appointment of Ernst & Young LLP as Textron&#39;s independent
    auditors for 2002 was ratified by the following vote:</td>
</tr>
<tr>
  <td WIDTH="30" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="62" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="121" VALIGN="TOP" height="21"><u>
    <p ALIGN="CENTER"><br>
    For</u></td>
  <td WIDTH="108" VALIGN="TOP" COLSPAN="3" height="21"><u>
    <p ALIGN="CENTER"><br>
    Against</u></td>
  <td WIDTH="153" VALIGN="TOP" COLSPAN="2" height="21"><u>
    <p ALIGN="CENTER"><br>
    Abstain</u></td>
  <td WIDTH="287" VALIGN="TOP" COLSPAN="3" height="21"><u>
    <p ALIGN="CENTER"><br>
    Broker Non&#45;Votes</u></td>
</tr>
<tr>
  <td WIDTH="30" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="62" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="121" VALIGN="TOP" height="21">
    <p ALIGN="CENTER"><br>
    116,825,890</td>
  <td WIDTH="108" VALIGN="TOP" COLSPAN="3" height="21">
    <p ALIGN="CENTER"><br>
    4,510,842</td>
  <td WIDTH="153" VALIGN="TOP" COLSPAN="2" height="21">
    <p ALIGN="CENTER"><br>
    1,401,301</td>
  <td WIDTH="287" VALIGN="TOP" COLSPAN="3" height="21">
    <p ALIGN="CENTER"><br>
    0</td>
</tr>
<tr>
  <td WIDTH="30" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="62" VALIGN="TOP" COLSPAN="2" height="21">
    <p ALIGN="JUSTIFY"><br>
    4.</td>
  <td WIDTH="681" VALIGN="TOP" COLSPAN="9" height="21">
    <p><br>
    A shareholder proposal regarding Textron&#39;s military sales was
    rejected by the following vote:</td>
</tr>
<tr>
  <td WIDTH="30" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="62" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="121" VALIGN="TOP" height="21"><u>
    <p ALIGN="CENTER"><br>
    For</u></td>
  <td WIDTH="108" VALIGN="TOP" COLSPAN="3" height="21"><u>
    <p ALIGN="CENTER"><br>
    Against</u></td>
  <td WIDTH="153" VALIGN="TOP" COLSPAN="2" height="21"><u>
    <p ALIGN="CENTER"><br>
    Abstain</u></td>
  <td WIDTH="287" VALIGN="TOP" COLSPAN="3" height="21"><u>
    <p ALIGN="CENTER"><br>
    Broker Non&#45;Votes</u></td>
</tr>
<tr>
  <td WIDTH="30" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="62" VALIGN="TOP" COLSPAN="2" height="21">&nbsp;</td>
  <td WIDTH="121" VALIGN="TOP" height="21">
    <p ALIGN="CENTER"><br>
    8,926,620</td>
  <td WIDTH="108" VALIGN="TOP" COLSPAN="3" height="21">
    <p ALIGN="CENTER"><br>
    92,492,058</td>
  <td WIDTH="153" VALIGN="TOP" COLSPAN="2" height="21">
    <p ALIGN="CENTER"><br>
    4,816,233</td>
  <td WIDTH="287" VALIGN="TOP" COLSPAN="3" height="21">
    <p ALIGN="CENTER"><br>
    16,503,122</td>
</tr>
</table>
<p ALIGN="RIGHT"><a NAME="itemsix"></p>
<p ALIGN="RIGHT">28.</p>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="840">
  <tr>
    <td WIDTH="83" VALIGN="TOP"><b>
      <p ALIGN="JUSTIFY">Item 6.</b></a></td>
  <td WIDTH="707" VALIGN="TOP" COLSPAN="3"><b><u>
    <p ALIGN="JUSTIFY">EXHIBITS AND REPORTS ON FORM 8&#45;K</u></b></td>
  <td WIDTH="38" VALIGN="TOP">&nbsp;</td>
</tr>
<tr>
  <td WIDTH="83" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="44" VALIGN="TOP">
    <p ALIGN="JUSTIFY"><br>
    (a)</td>
  <td WIDTH="659" VALIGN="TOP" COLSPAN="2"><u>
    <p ALIGN="JUSTIFY"><br>
    Exhibits</u></td>
  <td WIDTH="38" VALIGN="TOP">&nbsp;</td>
</tr>
<tr>
  <td WIDTH="83" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="44" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="63" VALIGN="TOP">
    <p><br>
    10.1</td>
  <td WIDTH="592" VALIGN="TOP">
    <p><br>
    Amendment to Textron 1999 Long Term Incentive Plan</td>
  <td WIDTH="38" VALIGN="TOP">&nbsp;</td>
</tr>
<tr>
  <td WIDTH="83" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="44" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="63" VALIGN="TOP">
    <p><br>
    10.2</td>
  <td WIDTH="592" VALIGN="TOP">
    <p><br>
    5&#45;Year Credit Agreement dated as of April 1, 2002. Incorporated
    by reference to Exhibit 10.4 to Textron&#39;s Quarterly Report on Form
    10&#45;Q for the fiscal quarter ended March 30, 2002</td>
  <td WIDTH="38" VALIGN="TOP">&nbsp;</td>
</tr>
<tr>
  <td WIDTH="83" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="44" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="63" VALIGN="TOP">
    <p><br>
    10.3</td>
  <td WIDTH="592" VALIGN="TOP">
    <p><br>
    364&#45;Day Credit Agreement dated as of April 1, 2002. Incorporated
    by reference to Exhibit 10.5 to Textron&#39;s Quarterly Report on Form
    10&#45;Q for the fiscal quarter ended March 30, 2002</td>
  <td WIDTH="38" VALIGN="TOP">&nbsp;</td>
</tr>
<tr>
  <td WIDTH="83" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="44" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="63" VALIGN="TOP">
    <p><br>
    12.1</td>
  <td WIDTH="592" VALIGN="TOP">
    <p><br>
    Computation of ratio of income to combined fixed charges and preferred
    securities dividends of Textron Manufacturing.</td>
  <td WIDTH="38" VALIGN="TOP">&nbsp;</td>
</tr>
<tr>
  <td WIDTH="83" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="44" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="63" VALIGN="TOP">
    <p><br>
    12.2</td>
  <td WIDTH="592" VALIGN="TOP">
    <p><br>
    Computation of ratio of income to combined fixed charges and preferred
    securities dividends of Textron Inc. including all majority&#45;owned
    subsidiaries.</td>
  <td WIDTH="38" VALIGN="TOP">&nbsp;</td>
</tr>
<tr>
  <td WIDTH="83" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="44" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="63" VALIGN="TOP">
    <p><br>
    99.1</td>
  <td WIDTH="592" VALIGN="TOP">
    <p ALIGN="JUSTIFY"><br>
    Certification Pursuant to 18 U.S.C. Section 1350, as
    Adopted Pursuant to Section 906 of the Sarbanes&#45;Oxley Act of 2002</td>
  <td WIDTH="38" VALIGN="TOP">&nbsp;</td>
</tr>
<tr>
  <td WIDTH="83" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="44" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="63" VALIGN="TOP">
    <p><br>
    99.2</td>
  <td WIDTH="592" VALIGN="TOP">
    <p ALIGN="JUSTIFY"><br>
    Certification Pursuant to 18 U.S.C. Section 1350, as
    Adopted Pursuant to Section 906 of the Sarbanes&#45;Oxley Act of 2002</td>
  <td WIDTH="38" VALIGN="TOP">&nbsp;</td>
</tr>
<tr>
  <td WIDTH="83" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="44" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="63" VALIGN="TOP">
    <p><br>
    NOTE:</td>
  <td WIDTH="592" VALIGN="TOP">
    <p ALIGN="JUSTIFY"><br>
    Instruments defining the rights of holders of certain
    issues of long&#45;term debt of Textron have not been filed as exhibits
    to this Report because the authorized principal amount of any one of such
    issues does not exceed 10% of the total assets of Textron and its
    subsidiaries on a consolidated basis. Textron agrees to furnish a copy of
    each such instrument to Commission upon request.</td>
  <td WIDTH="38" VALIGN="TOP">&nbsp;</td>
</tr>
<tr>
  <td WIDTH="83" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="44" VALIGN="TOP">
    <p ALIGN="JUSTIFY"><br>
    (b)</td>
  <td WIDTH="659" VALIGN="TOP" COLSPAN="2">
    <p ALIGN="JUSTIFY"><br>
    Reports on Form 8&#45;K</td>
  <td WIDTH="38" VALIGN="TOP">&nbsp;</td>
</tr>
<tr>
  <td WIDTH="83" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="44" VALIGN="TOP">&nbsp;</td>
  <td WIDTH="659" VALIGN="TOP" COLSPAN="2">
    <p ALIGN="JUSTIFY"><br>
    On May 23, 2002, Textron filed a current report on Form
    8&#45;K (Items 5 and 7) to file certain exhibit to a Registration
    Statement on Form S&#45;3.</td>
  <td WIDTH="38" VALIGN="TOP">&nbsp;</td>
</tr>
</table>
<p ALIGN="RIGHT">29.</p>
<u>
<p ALIGN="CENTER"><a NAME="sig">SIGNATURES</a></p>
</u>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="JUSTIFY">&#160;&#160;&#160;Pursuant to the requirements of
the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto duly authorized.</p>
<p>&nbsp;</p>
<table CELLSPACING="1" WIDTH="842">
  <tr>
    <td WIDTH="51" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="186" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="239" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="340" VALIGN="TOP">
      <p>TEXTRON INC.</td>
  </tr>
  <tr>
    <td WIDTH="51" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="186" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="239" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="340" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="51" VALIGN="TOP">
      <p>Date:</td>
    <td WIDTH="186" VALIGN="TOP">
      <p style="border-bottom-style: solid; border-bottom-width: 1">&#160;August 12, 2002</td>
    <td WIDTH="239" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="340" VALIGN="TOP">
      <p style="border-bottom-style: solid; border-bottom-width: 1">s/R. L. Yates</td>
  </tr>
  <tr>
    <td WIDTH="51" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="186" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="239" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="340" VALIGN="TOP">
      <p>R. L. Yates<br>
      Vice President and Controller<br>
      (principal accounting officer)</td>
  </tr>
</table>
<b>
<p ALIGN="CENTER"><a NAME="list">LIST OF EXHIBITS</a></p>
</b>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="JUSTIFY">The following exhibits are filed as part of this report on
Form 10&#45;Q:</p>
<u>
<p ALIGN="CENTER">Name of Exhibit</p>
</u>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="839">
  <tr>
    <td WIDTH="66" VALIGN="TOP">
      <p style="margin-top: 12">10.1</td>
    <td WIDTH="748" VALIGN="TOP">
      <p style="margin-top: 12">Amendment to Textron 1999 Long&#45;Term Incentive Plan</td>
    <td WIDTH="13" VALIGN="TOP">
      <p style="margin-top: 12">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="66" VALIGN="TOP">
      <p style="margin-top: 12">10.2</td>
    <td WIDTH="748" VALIGN="TOP">
      <p style="margin-top: 12">5&#45;Year Credit Agreement dated as of April 1, 2002. Incorporated
      by reference to Exhibit 10.4 to Textron&#39;s Quarterly Report on Form
      10&#45;Q for the fiscal quarter ended March 30, 2002</td>
    <td WIDTH="13" VALIGN="TOP">
      <p style="margin-top: 12">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="66" VALIGN="TOP">
      <p style="margin-top: 12">10.3</td>
    <td WIDTH="748" VALIGN="TOP">
      <p style="margin-top: 12">364&#45;Day Credit Agreement dated as of April 1, 2002.
      Incorporated by reference to Exhibit 10.5 to Textron&#39;s Quarterly
      Report on Form 10&#45;Q for the fiscal quarter ended March 30, 2002</td>
    <td WIDTH="13" VALIGN="TOP">
      <p style="margin-top: 12">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="66" VALIGN="TOP">
      <p style="margin-top: 12">12.1</td>
    <td WIDTH="748" VALIGN="TOP">
      <p style="margin-top: 12">Computation of ratio of income to combined fixed charges and preferred
      securities dividends of Textron Manufacturing</td>
    <td WIDTH="13" VALIGN="TOP">
      <p style="margin-top: 12">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="66" VALIGN="TOP">
      <p style="margin-top: 12">12.2</td>
    <td WIDTH="748" VALIGN="TOP">
      <p style="margin-top: 12">Computation of ratio of income to combined fixed charges and preferred
      securities dividends of Textron Inc. including all majority&#45;owned
      subsidiaries</td>
    <td WIDTH="13" VALIGN="TOP">
      <p style="margin-top: 12">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="66" VALIGN="TOP">
      <p style="margin-top: 12">99.1</td>
    <td WIDTH="748" VALIGN="TOP">
      <p style="margin-top: 12">Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
      to Section 906 of the Sarbanes&#45;Oxley Act of 2002</td>
    <td WIDTH="13" VALIGN="TOP">
      <p style="margin-top: 12">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="66" VALIGN="TOP">
      <p style="margin-top: 12">99.2</td>
    <td WIDTH="748" VALIGN="TOP">
      <p style="margin-top: 12">Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
      to Section 906 of the Sarbanes&#45;Oxley Act of 2002</td>
    <td WIDTH="13" VALIGN="TOP">
      <p style="margin-top: 12">&nbsp;</p>
    </td>
  </tr>
</table>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>tenone.htm
<TEXT>
<html>

<head>
<title>Exhibit 10</title>
</head>

<body>

<b>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">&nbsp;</p>
</b><u>
<p ALIGN="RIGHT">Exhibit 10.1</p>
</u><b>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">AMENDMENT TO TEXTRON 1999 LONG&#45;TERM INCENTIVE PLAN</p>
</b>
<p>On April 24, 2002, the shareholders approved an amendment to the Textron 1999
Long&#45;Term Incentive Plan. The following changes were approved:</p>
<blockquote>
  <ul>
    <li>
      <p ALIGN="JUSTIFY">The total number of shares of Textron common stock for
    which options may be granted was increased from 12,200,000 options to
    14,000,000 options.</li>
    <li>
      <p ALIGN="justify" style="margin-top: 12">Non&#45;employee directors may be granted stock
    options under the Plan.</li>
    <li>
      <p ALIGN="justify" style="margin-top: 12">Providing participants, including corporate officers, the
    opportunity to earn awards up to 130% of the value of performance share
    units.</li>
    <li>
      <p ALIGN="justify" style="margin-top: 12">Limiting the term of non&#45;qualified stock options
    granted under the plan to no more than ten years from the date of grant.</li>
  </ul>
</blockquote>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12
<SEQUENCE>4
<FILENAME>tweone.htm
<TEXT>
<html>

<head>
<title>EXHIBIT 12</title>
</head>

<body>

<u>
<p ALIGN="RIGHT">EXHIBIT 12.1</p>
</u><b>
<p ALIGN="CENTER">TEXTRON MANUFACTURING<br>
</p>
<p ALIGN="CENTER">COMPUTATION OF RATIO OF INCOME TO<br>
COMBINED FIXED CHARGES AND PREFERRED SECURITIES DIVIDENDS<br>
</p>
<p ALIGN="CENTER">(unaudited)<br>
</p>
</b>
<p ALIGN="CENTER">(In millions except ratio)<br>
</p>
<div align="center">
  <center>
<table CELLSPACING="1" WIDTH="696">
  <tr>
    <td WIDTH="78%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="19%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">Six Months<br>
      Ended<br>
      June 29,<br>
      2002</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p>Fixed charges:</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p>&#160;&#160;&#160;&#160;&#160;Interest expense</td>
    <td WIDTH="3%" VALIGN="TOP">
      <p>$</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">69</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p>&#160;&#160;&#160;&#160;&#160;Distributions on
      preferred securities of manufacturing subsidiary trust, net<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;of
      income taxes</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><br>
      13</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p>&#160;&#160;&#160;&#160;&#160;Estimated interest
      portion of rents</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25">16</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP" style="border-bottom-style: solid">
      <p><br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
      fixed charges</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">
      <p><br>
      $</td>
    <td WIDTH="16%" VALIGN="TOP" align="right" style="border-bottom-style: solid">
      <p style="margin-right: 25"><br>
      98</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p>Income:</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p>&#160;&#160;&#160;&#160;&#160;Income before income
      taxes and distributions on preferred<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;securities
      of subsidiary trusts</td>
    <td WIDTH="3%" VALIGN="TOP">
      <p><br>
      $</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><br>
      267</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p>&#160;&#160;&#160;&#160;&#160;Eliminate equity in
      undistributed pre&#45;tax income of Textron Finance</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">1</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p>&#160;&#160;&#160;&#160;&#160;Fixed charges *</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25">85</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP" style="border-bottom-style: solid">
      <p><br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Adjusted
      income</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">
      <p><br>
      $</td>
    <td WIDTH="16%" VALIGN="TOP" align="right" style="border-bottom-style: solid">
      <p style="margin-right: 25"><br>
      353</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p><br>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP" style="border-bottom-style: solid">
      <p>Ratio of income to fixed charges</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right" style="border-bottom-style: solid">
      <p style="margin-right: 25">3.6</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
  </center>
</div>
<p>&nbsp;</p>
<blockquote>
  <p>*&#160;&#160;&#160;&#160;&#160;Adjusted to exclude
  distributions on preferred securities of manufacturing subsidiary trust, net
  of income taxes.</p>
  <p>&nbsp;</p>
</blockquote>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12
<SEQUENCE>5
<FILENAME>twetwo.htm
<TEXT>
<html>

<head>
<title>EXHIBIT 12</title>
</head>

<body>

<u>
<p ALIGN="RIGHT">EXHIBIT 12.2</p>
</u>
<p>&nbsp;</p>
<b>
<p ALIGN="CENTER">TEXTRON INC.<br>
INCLUDING ALL MAJORITY&#45;OWNED SUBSIDIARIES<br>
<br>
COMPUTATION OF RATIO OF INCOME TO<br>
COMBINED FIXED CHARGES AND PREFERRED SECURITIES DIVIDENDS<br>
<br>
(unaudited)<br>
<br>
</b>(In millions except ratio)<br>
</p>
<div align="center">
  <center>
<table CELLSPACING="1" WIDTH="696">
  <tr>
    <td WIDTH="78%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER">Six Months<br>
      Ended<br>
      June 29,<br>
      2002</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p>Fixed charges:</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p>&#160;&#160;&#160;&#160;&#160;Interest expense</td>
    <td WIDTH="3%" VALIGN="TOP">
      <p ALIGN="RIGHT">$</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">164</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p>&#160;&#160;&#160;&#160;&#160;Distributions on
      preferred securities of subsidiary trusts, net of income taxes</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">13</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p>&#160;&#160;&#160;&#160;&#160;Estimated interest
      portion of rents</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25">17</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP" style="border-bottom-style: solid">
      <p><br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
      fixed charges</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT"><br>
      $</td>
    <td WIDTH="16%" VALIGN="TOP" align="right" style="border-bottom-style: solid">
      <p style="margin-right: 25"><br>
      194</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p>Income:</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p>&#160;&#160;&#160;&#160;&#160;Income before income
      taxes and distributions on preferred<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;securities
      of subsidiary trusts</td>
    <td WIDTH="3%" VALIGN="TOP">
      <p ALIGN="RIGHT"><br>
      $</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><br>
      267</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p>&#160;&#160;&#160;&#160;&#160;Fixed charges *</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 25">181</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP" style="border-bottom-style: solid">
      <p><br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Adjusted
      income</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">
      <p ALIGN="RIGHT"><br>
      $</td>
    <td WIDTH="16%" VALIGN="TOP" align="right" style="border-bottom-style: solid">
      <p style="margin-right: 25"><br>
      448</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">
      <p><br>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25"><br>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP" style="border-bottom-style: solid">
      <p>Ratio of income to fixed charges</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right" style="border-bottom-style: solid">
      <p style="margin-right: 25">2.31</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="78%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" align="right">
      <p style="margin-right: 25">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
  </center>
</div>
<blockquote>
  <blockquote>
    <p>*&#160;&#160;Adjusted to exclude
  distributions on preferred securities of subsidiary trusts, net of income
  taxes.</p>
  </blockquote>
</blockquote>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>6
<FILENAME>nineone.htm
<TEXT>
<html>

<head>
<title>Exhibit 99</title>
</head>

<body>

<p ALIGN="RIGHT">Exhibit 99.1</p>
<b>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">TEXTRON INC.<br>
CERTIFICATION PURSUANT TO<br>
18 U.S.C. SECTION 1350,<br>
AS ADOPTED PURSUANT TO<br>
SECTION 906 OF THE SARBANES&#45;OXLEY ACT OF 2002</p>
</b>
<p>&nbsp;</p>
<p ALIGN="JUSTIFY">In connection with the Quarterly Report of Textron Inc. (the
&quot;Company&quot;) on Form 10&#45;Q for the period ending June 29, 2002 as
filed with the Securities and Exchange Commission on the Date hereof (the
&quot;Report&quot;), I, Lewis B. Campbell, Chairman, President and Chief
Executive Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as
adopted pursuant to ss. 906 of the Sarbanes&#45;Oxley Act of 2002, that:</p>
<blockquote>
  <ol>
    <li>
      <p ALIGN="JUSTIFY">The Report fully complies with the requirements of
    section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</li>
    <li>
      <p ALIGN="justify" style="margin-top: 12">The information contained in the Report fairly
    presents, in all material respects, the financial condition and result of
    operations of the Company.</li>
  </ol>
  <blockquote>
    <p>&nbsp;</p>
  </blockquote>
</blockquote>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="842">
  <tr>
    <td WIDTH="195" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="292" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="300" VALIGN="TOP">
      <p>Textron Inc.</td>
    <td WIDTH="29" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="195" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="292" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="300" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="29" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="195" VALIGN="TOP">
      <p style="border-bottom-style: solid; border-bottom-width: 1">Date: August
      12, 2002</td>
    <td WIDTH="292" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="300" VALIGN="TOP">
      <p style="border-bottom-style: solid; border-bottom-width: 1">/s/ Lewis B. Campbell</td>
    <td WIDTH="29" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="195" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="292" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="300" VALIGN="TOP">
      <p>Lewis B. Campbell</td>
    <td WIDTH="29" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="195" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="292" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="300" VALIGN="TOP">
      <p>Chairman, President and Chief Executive<br>
      &#160;&#160;&#160;&#160;&#160;Officer</td>
    <td WIDTH="29" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>7
<FILENAME>ninetwo.htm
<TEXT>
<html>

<head>
<title>Exhibit 99</title>
</head>

<body>

<p ALIGN="RIGHT">Exhibit 99.2</p>
<b>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER" style="margin-top: 0">TEXTRON INC.<br>
CERTIFICATION PURSUANT TO<br>
18 U.S.C. SECTION 1350,<br>
AS ADOPTED PURSUANT TO<br>
SECTION 906 OF THE SARBANES&#45;OXLEY ACT OF 2002</p>
</b>
<p>&nbsp;</p>
<p ALIGN="JUSTIFY">In connection with the Quarterly Report of Textron Inc. (the
&quot;Company&quot;) on Form 10&#45;Q for the period ending June 29, 2002 as
filed with the Securities and Exchange Commission on the Date hereof (the
&quot;Report&quot;), I, Ted R. French, Executive Vice President & Chief
Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as
adopted pursuant to ss. 906 of the Sarbanes&#45;Oxley Act of 2002, that:</p>
<blockquote>
    <ol>
      <li>
        <p ALIGN="JUSTIFY">The Report fully complies with the requirements of
        section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</li>
      <li>
        <p ALIGN="justify" style="margin-top: 12">The information contained in
        the Report fairly presents, in all material respects, the financial
        condition and result of operations of the Company.</li>
    </ol>
    <p>&nbsp;</p>
    <p>&nbsp;</p>
</blockquote>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="848">
  <tr>
    <td WIDTH="183" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="239" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="350" VALIGN="TOP">
      <p>Textron Inc.</td>
    <td WIDTH="50" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="183" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="239" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="350" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="50" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="183" VALIGN="TOP">
      <p style="border-bottom-style: solid; border-bottom-width: 1">Date: August
      12, 2002</td>
    <td WIDTH="239" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="350" VALIGN="TOP">
      <p style="border-bottom-style: solid; border-bottom-width: 1">/s/ Ted R. French</td>
    <td WIDTH="50" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="183" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="239" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="350" VALIGN="TOP">
      <p>Ted R. French</td>
    <td WIDTH="50" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="183" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="239" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="350" VALIGN="TOP">
      <p>Executive Vice President and Chief<br>
      &#160;&#160;&#160;&#160;&#160;Financial Officer</td>
    <td WIDTH="50" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>

</body>

</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
