E-Z-GO 2003 Annual Report Download - page 42

Textron is a global, multi-industry company with manufacturing and finance operations primarily in North
America, Western Europe, South America and Asia/Pacific. Textron’s principal markets are summarized
below by segment.
• Commercial and military helicopters and tiltrotors
• Defense and aerospace
• Piston aircraft engines
• General aviation aircraft
• Business jets including fractional ownership
• Overnight express package carriers, humanitarian flights, tourism and freight
• Aerospace
• Automotive
• Computer, electronics, electrical and industrial equipment
• Construction
• Non-automotive transportation
• Telecommunications
• Automotive original equipment manufacturers and other industrial suppliers
• Golf courses, resort communities and municipalities, and commercial and
industrial users
• Original equipment manufacturers, governments, distributors and end-users of
fluid and power systems
• Electrical construction and maintenance, telecommunications and plumbing
industries
• Secured commercial loans and leases
The consolidated financial statements include the accounts of Textron and all of its majority- and wholly
owned subsidiaries. Investments in which Textron does not have control, but has the ability to exercise
significant influence over the operating and financial policies, are accounted for under the equity
method. Textron’s share of net earnings and losses from these investments is included in the consolidat-
ed statement of operations. In the normal course of business, Textron has entered into various joint ven-
ture agreements. At January 3, 2004 and December 29, 2002, other assets include $34 million and $35
million, respectively, attributable to investments in unconsolidated joint ventures. Textron accounts for its
interest in these ventures under the equity method of accounting. Since Textron’s equity in the income
(loss) from joint ventures is not material, it is not separately reported and is included within cost of sales.
Textron’s loss from unconsolidated joint ventures totaled $7 million in 2003 and $10 million each year in
2002 and 2001.
Textron’s financings are conducted through two borrowing groups, Textron Finance and Textron Manu-
facturing. This framework is designed to enhance Textron’s borrowing power by separating the Finance
segment. Textron Finance consists of Textron Financial Corporation consolidated with its subsidiaries,
which are the entities through which Textron operates its Finance segment. Textron Finance finances its
operations by borrowing from its own group of external creditors. All significant intercompany transac-
tions are eliminated.
Textron Manufacturing is Textron Inc., the parent company, consolidated with the entities which operate
in the Bell, Cessna, Fastening Systems and Industrial business segments. Textron reorganized into
these segments in the second quarter of 2003 in order to streamline its management structure. Under
the new structure, Textron Systems and Textron Lycoming (Lycoming) are combined with Bell Helicopter
to form the Bell segment and Cessna Aircraft is reported as a separate segment. The remaining Industri-
al Products and Industrial Components businesses have been combined to form the Industrial segment.
Previously, in January 2002, management responsibility for certain divisions was also reorganized to
reflect the sale of the Automotive Trim business. The former automotive divisions are included in the
Industrial segment. All prior period data have been appropriately reclassified.
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