E-Z-GO 2006 Annual Report Download - page 22

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PART I
Item 1. Business of Textron
Textron Inc. is a global multi-industry company operating in 32 countries with approximately 40,000 employees. Our business 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 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 of each of our
business segments is set forth below. Financial information by business segment and geographic area appears in Note 20 of the consolidated
financial statements on pages 72 through 74 of this Annual Report on Form 10-K.
Bell Segment
The Bell segment is comprised of Bell Helicopter and Textron Systems.
Bell Helicopter
is one of the leading suppliers of helicopters, tiltrotor aircraft, and helicopter-related spare parts and services in the world. Bell
Helicopter manufactures for both military and commercial applications. Revenues for Bell Helicopter accounted for approximately 20%, 21% and
19% of our total revenues in 2006, 2005 and 2004, 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. Govern-
ment and, in association with The Boeing Company, the only supplier of military tiltrotor aircraft. Bell Helicopter is teamed with The Boeing Com-
pany 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 11, the U.S. Government has issued contracts for 113
production V-22 aircraft. The V-22 program calls for a total of 458 production units.
The U.S. Marine Corps H-1 program includes 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 between the two models. Through Low Rate Initial Production (“LRIP”) Lot 3, the U.S. Government
has issued contracts for the production of 17 UH-1Y aircraft and six AH-1Z aircraft. The Lot 3 contract has a priced option for Lot 4 requirements
consisting of nine UH-1Y and two AH-1Z additional aircraft. Phase II of the H-1 Operational Evaluation (“OPEVAL”) is scheduled to commence
later in 2007; successful completion of OPEVAL is required prior to the Government authorizing full rate production. The H-1 program calls for a
total of 280 production units.
Bell Helicopter currently is performing under a U.S. Government contract for System Development and Demonstration (“SDD”) of the Armed
Reconnaissance Helicopter (“ARH”). This contract requires the production of four SDD aircraft and includes priced options for LRIP Lot 1 (6-12
aircraft) and Lot 2 (18-36 aircraft). The ARH program calls for a total of 368 production units.
Bell Helicopter also is a leading supplier of commercially certified helicopters to corporate, offshore petroleum exploration and development, util-
ity, charter, police, fire, rescue and emergency medical helicopter operators.
Bell Helicopter is a member of Bell/Agusta Aerospace Company LLC (“AWB LLC”), a joint venture with Agusta S.p.A. and two of its affiliated com-
panies (collectively, “Agusta”), a leading helicopter manufacturer based in Italy, for the design, manufacture, sale and customer support of the rev-
olutionary civil tiltrotor aircraft, the Model BA609.
In 2004, Bell Helicopter formed AgustaWestlandBell LLC with AgustaWestland North America Inc. for the joint design, development, manufacture,
sale, customer training and product support of the VH-71 “Presidential” helicopter, and certain variations and derivatives thereof, to be offered
1
Textron Inc.