E-Z-GO 2000 Annual Report Download - page 34

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As discussed in the Results of Operations section, in the fourth quarter of 2000, Textron adopted
the Emerging Issues Task Force (EITF) consensus on Issue No. 99-19, “Reporting Revenue Gross
as a Principal versus Net as an Agent”. See page 21 for further discussion.
In September 2000, the FASB issued SFAS 140 “Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities – a Replacement of FASB Statement No. 125”. SFAS 140
revises criteria for accounting for securitizations, other financial-asset and collateral transfers and
extinguishments of liabilities. The Statement also introduces new disclosure requirements related
to securitizations, collateral and retained interests in securitized financial assets. Textron adopted
these new disclosure requirements in the fourth quarter of 2000, as required by statement. The
provisions for SFAS 140 related to the transfers and servicing of financial assets and extinguish-
ments of liabilities are effective for transactions occurring after March 31, 2001. Based upon current
activities, the adoption of this statement will not have a material effect on the Company’s results of
operations or financial position.
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Forward-looking Information: Certain statements in this report and other oral and written statements
made by Textron from time to time, are forward-looking statements, including those that discuss
strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or
other financial measures. These forward-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 implement and complete its restructuring
plans, (b) the extent to which Textron is able to successfully integrate recent acquisitions, (c) changes
in worldwide economic and political conditions that impact interest and foreign exchange rates, (d)
the occurrence of work stoppages and strikes at key facilities of Textron or Textron's customers or
suppliers, (e) government funding and program approvals affecting products being developed or sold
under government programs, (f) successful implementation of supply chain and e-procurement
strategies, (g) the timing of certifications of new aircraft products, (h) the occurrence of a severe
downturn in the economies in which Textron operates that could reduce demand for its products, (i)
the level of consumer demand for the vehicle models for which Textron supplies parts to automotive
original equipment manufacturers (“OEMs”), (j) Textron’s ability to offset, through cost reductions,
raw material price increases and pricing pressure brought by OEM customers, and (k) Textron
Financial Corporation’s ability to maintain credit quality and control costs when entering new markets.
TEXTRON 2000 ANNUAL REPORT 32