E-Z-GO 2006 Annual Report Download - page 26

5
Textron Inc.
The 2006 year-end backlog with the major fractional jet customer was approximately $1.4 billion. The remaining $7.1 billion of Cessna’s backlog
at the end of 2006 is with other commercial customers covering a wide spectrum of industries. This backlog includes $1.0 billion in orders for the
new Citation CJ4 aircraft with the first customer deliveries in 2010.
Approximately 50% of our total backlog of $13.4 billion at December 30, 2006 represents orders which are not expected to be filled within our
2007 fiscal year.
U.S. Government Contracts
In 2006, approximately 19% of our consolidated revenues were generated by or resulted from contracts with the U.S. Government. This business
is subject to competition, changes in procurement policies and regulations, the continuing availability of congressional appropriations, world
events, and the size and timing of programs in which we may participate.
Our contracts with the U.S. Government generally may be terminated by the U.S. Government for convenience or default in whole or in part. If the
U.S. Government terminates a contract for convenience, we normally will be entitled to payment for the cost of contract work performed before the
effective date of termination plus reasonable profit on such work, adjusted to reflect any rate of loss had the contract been completed, plus reason-
able costs of settlement of the work terminated. If, however, the U.S. Government terminates a contract for default, generally: (a) we will be paid the
contract price for completed supplies delivered and accepted, an agreed-upon amount for manufacturing materials delivered and accepted and for
the protection and preservation of property, and for partially completed products accepted by the U.S. Government; (b) the U.S. Government will
not be liable for our costs with respect to unaccepted items and will be entitled to repayment of advance payments and progress payments related
to the terminated portions of the contract; and (c) we may be liable for excess costs incurred by the U.S. Government in procuring undelivered
items from another source.
Research and Development
Information regarding our research and development expenditures is contained in Note 16 to the consolidated financial statements on pages 68
and 69 of this Annual Report on Form 10-K.
Patents and Trademarks
We own, or are licensed under, numerous patents throughout the world relating to products, services and methods of manufacturing. Patents have
been of value in the past and are expected to be of value in the future. However, the loss of any single patent or group of patents would not, in our
opinion, materially affect the conduct of our business. We also own or license trademarks, trade names and service marks that are important to
our business. Some of these trademarks, trade names and service marks are used in this Annual Report on Form 10-K and other reports, includ-
ing: 429; AB Benzlers; AH-1Z; APCO; BA609; Bell/Agusta Aerospace Company, LLC; Bell Helicopter; Bravo; Cadillac Gage; Caravan; Cessna;
Citation; CitationShares; Citation X; CJ1; CJ1+;CJ2; CJ2+;CJ3; Cone Drive; Cushman; David Brown; Excel; E-Z-GO; Fairmont; Gear Technolo-
gies; 429 Global Ranger; Global Technology Center; Grand Caravan; Greenlee; H-1; HR Textron; Huey II; Hydraulics; Hydreco; Jacobsen; Kautex;
Kiowa Warrior; Klauke Progressive; 429 Light Twin; Lycoming; Maag; McCauley; Modular Affordable Product Lines; Mustang; Overwatch Sys-
tems; Polymer Systems; Powauto; Power Advantage; ProParts; Quick Draw Loan; Radicon; Ransomes; Rothenberger LLC; Sensor Fuzed Weapon;
Sovereign; Skyhawk; Skyhawk SP; Skylane; ST 4X4; Stationair; Super Cargomaster; Tempo; Textron; Textron Business Systems; Textron Financial
Corporation; Textron Fluid & Power; Textron Marine & Land Systems; Textron Six Sigma; Textron Systems; UH-1Y; Union Pump; US Helicopter;
V-22 Osprey; Vector; Vector Jetcard; and XLS. These marks and their related trademark designs and logotypes (and variations of the foregoing)
are trademarks, trade names or service marks of Textron Inc., its subsidiaries, affiliates or joint ventures.
Environmental Considerations
Our operations are subject to numerous laws and regulations designed to protect the environment. Compliance with these laws and expenditures
for environmental control facilities have not had a material effect on our capital expenditures, earnings or competitive position. Additional infor-
mation regarding environmental matters is contained in Note 15 to the consolidated financial statements on page 68 of this Annual Report on
Form 10-K.
Employees
At December 30, 2006, we had approximately 40,000 employees.
Available Information
We make available free of charge on our Internet website (http://www.textron.com) our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act
of 1934 as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission.