E-Z-GO 2004 Annual Report Download - page 22

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1
PART I
Item 1. Business of Textron
Textron Inc. is a global multi-industry company with more than 44,000 employees and operations in nearly 40 countries. Our busi-
ness was founded in 1923 and reincorporated in Delaware on July 31, 1967. Today, we leverage our global network of aircraft,
industrial and finance businesses to provide customers with innovative solutions and services.
Business Segments
We operate in five business segments – Bell, Cessna, Fastening Systems, Industrial and Finance. Our business segments include
operations that are unincorporated divisions of Textron Inc. or its subsidiaries and others that are separately incorporated sub-
sidiaries. A description of the business done and intended to be done by each of our business segments is set forth below. Finan-
cial information by business segment and geographic area appears in Note 18 of the consolidated financial statements on pages
67 through 69 of this Annual Report on Form 10-K.
Bell Segment The Bell segment is composed of Bell Helicopter and Textron Systems.
Bell Helicopter
Bell Helicopter is one of the largest suppliers of helicopters, tiltrotors, and helicopter-related spare parts and services in the world.
Bell Helicopter manufactures for both military and commercial applications. Bell Helicopter’s revenues accounted for approxi-
mately 16%, 18% and 16% of our total revenues in 2004, 2003 and 2002, respectively.
Bell Helicopter supplies advanced military helicopters and support (including spare parts, support equipment, technical data,
trainers, pilot and maintenance training, component repairs, aircraft modifications, contractor maintenance and field and product
support engineering services) to the U.S. Government and to military customers outside the U.S. Bell Helicopter is one of the
leading suppliers of helicopters to the U.S. Government and, in association with The Boeing Company, the only supplier of military
tiltrotors. Bell Helicopter is teamed with The Boeing Company to develop, produce and support the V-22 Osprey tiltrotor aircraft
for the U.S. Department of Defense. Tiltrotor aircraft are designed to provide the benefits of both helicopters and fixed-wing air-
craft. Through Production Lot 9, the U.S. Government has issued contracts for 83 production V-22 aircraft. An expanded V-22
flight test program is ongoing in preparation for the Operational Evaluation (“OPEVAL”) that is scheduled to commence in the first
half of 2005.
Bell Helicopter is nearing completion of the engineering and manufacturing development phase of the H-1 upgrade program for
the U.S. Marine Corps. This program will produce an advanced attack and a utility model helicopter, the AH-1Z and UH-1Y,
respectively, both of which are designed to have 84% parts commonality, which meets the U.S. Government’s intent to reduce
operational life cycle costs. In December 2003, Bell Helicopter received a contract from the U.S. Government to furnish six UH-1Y
aircraft and three AH-1Z aircraft for Low Rate Initial Production (“LRIP”) Lot 1. This contract includes an option to acquire addi-
tional aircraft for LRIP Lot 2, and this option may be exercised in early 2005.
Bell Helicopter is also a leading supplier of commercially certified helicopters to corporate, offshore petroleum exploration and
development, utility, charter, police, fire, rescue and emergency medical helicopter operators.
Bell Helicopter is a member of Bell/Agusta Aerospace Company, L.L.C., a joint venture with Agusta, a leading helicopter manufac-
turer based in Italy, for the design, manufacture, sale and customer support of a new medium twin-engine helicopter, the AB139,
and a commercial tiltrotor, the BA609. The AB139 received IFR certification from the Italian airworthiness authorities in June
2003, and received U.S. Federal Aviation Administration certification in December 2004. Ground run testing of the BA609 com-
menced in December 2002 and the aircraft achieved its maiden flight on March 7, 2003, in helicopter mode. The aircraft is now
undergoing manufacturing modification to add equipment and upgraded software for additional flight testing to be conducted
beginning in 2005.
Textron Inc.