E-Z-GO 2005 Annual Report Download - page 21

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1
PART I
Item 1. Business of Textron
Textron Inc. is a global multi-industry company with operations in 33 countries and with approximately 37,000 employees in our continuing
operations. Our business was founded in 1923 and reincorporated in Delaware on July 31, 1967. Today, we leverage our global network of air-
craft, industrial and finance businesses to provide customers with innovative solutions and services.
Business Segments
We operate in four business segments – Bell, Cessna, Industrial and Finance. Our business segments include operations that are unincorporated
divisions of Textron Inc. or its subsidiaries and others that are separately incorporated subsidiaries. A description of the business done and
intended to be done by each of our business segments is set forth below. Financial information by business segment and geographic area appears
in Note 21 of the Consolidated Financial Statements on pages 74 through 75 of this Annual Report on Form 10-K. We also continue to operate in
the Fastening Systems business, which was classified as a discontinued operation for financial reporting purposes in the fourth quarter of 2005.
Bell Segment
The Bell segment is comprised of Bell Helicopter and Textron Systems.
Bell Helicopter
Bell Helicopter is one of the largest suppliers of helicopters, tiltrotor aircraft, 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 approximately 21%, 19% and
22% of our total revenues from continuing operations in 2005, 2004 and 2003, 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 United States. 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 tiltrotor aircraft. Bell Helicopter is teamed with The Boe-
ing 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 aircraft. Through Production Lot 9, the U.S. Government has issued contracts for 83
production V-22 aircraft. The V-22 Operational Evaluation (“OPEVAL”) was successfully completed in 2005, which led to an Acquisition Decision
Memorandum that authorized full-rate production for the V-22 in future production lots.
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. Bell delivered the first
two aircraft for OPEVAL training in October, and the OPEVAL is planned to begin shortly after the delivery of the remaining two aircraft in 2006.
The U.S. Government has issued contracts for the production of ten UH-1Y aircraft and six AH-1Z aircraft through Low Rate Initial Production
(“LRIP”) of Lots 1 and 2. This program calls for a total of 280 production units.
In July 2005, Bell Helicopter was awarded a U.S. Government contract for System Development and Demonstration of the Armed Reconnaissance
Helicopter; this contract includes priced options for LRIP Lot 1 (6-12 aircraft) and Lot 2 (18-36 aircraft). This program calls for a total of 368 pro-
duction units.
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.
Item 1. Business of Textron