E-Z-GO 1999 Annual Report Download - page 62

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Environmental Remediation
Environmental liabilities are recorded based on the most probable cost if known or on the estimated
minimum cost, determined on a site-by-site basis. Textron’s environmental liabilities are
undiscounted and do not take into consideration possible future insurance proceeds or significant
amounts from claims against other third parties.
Textron’s accrued estimated environmental liabilities are based on assumptions which
are subject to a number of factors and uncertainties. Circumstances which can affect the
accruals’ reliability and precision include identification of additional sites, environmental
regulations, level of cleanup required, technologies available, number and financial con-
dition of other contributors to remediation, and the time period over which remediation
may occur. Textron believes that any changes to the accruals that may result from these
factors and uncertainties will not have a material effect on Textron’s net income or finan-
cial condition. Textron estimates that its accrued environmental remediation liabilities
will likely be paid over the next five to ten years.
19. Textron has four reportable segments: Aircraft, Automotive, Industrial and Finance. See
Note 1 for principal markets and pages 66 through 68 for products of Textron’s segments.
Textron’s reportable segments are strategically aligned based on the manner in which
Textron manages its various operations. The accounting policies of the segments are the
same as those described in the summary of significant accounting policies within the
notes to the consolidated financial statements. Textron evaluates segment performance
based on operating income from operations. Segment operating income excludes
Textron Manufacturing interest expense, special (credits)/charges, and gains or losses
from the disposition of businesses. The Finance segment includes interest income and
interest expense as part of operating income from operations. Provisions for losses on
finance receivables involving the sale or lease of Textron products are recorded by the
selling manufacturing division.
The following summarizes the revenues by type of products:
Revenues
(In millions) 1999 1998 1997
Aircraft:
Fixed-Wing Aircraft $ 2,219 $1,784 $1,483
Rotor Aircraft 1,525 1,405 1,542
Automotive:
Trim 1,796 1,481 1,372
Fuel Systems and Functional Components 1,120 924 755
Industrial:
Fasteners 2,082 1,758 1,498
Fluid & Power 895 619 489
Golf, Turf-Care and Specialty Products 773 719 483
Industrial Components and Other 706 626 711
Finance 463 367 350
$11,579 $9,683 $8,683
Segment
Reporting
60 Consistent Growth