E-Z-GO 2007 Annual Report Download - page 25

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Item 1. Business
Greenlee designs and manufactures powered equipment, electrical test and measurement instruments, hand and hydraulic powered tools, and
electrical and fi ber optic connectors under the Greenlee, Fairmont, Klauke, Progressive and Tempo brand names. The products principally are
used in the electrical construction and maintenance, telecommunications and plumbing industries. Greenlee distributes its products through a
global network of sales representatives and distributors and sells its products directly to home improvement retailers and original equipment
manufacturers. Through a joint venture, Greenlee also sells hand and powered tools for the plumbing and mechanical industries in North
America. In December 2007, Greenlee acquired Paladin Tools, a provider of tools and accessories for the telecommunications, data
communications and wiring industries. The Greenlee businesses face competition from numerous manufacturers based primarily on price and
product quality and reliability.
E-Z-GO designs and manufactures golf cars and off-road utility vehicles powered by electric and internal combustion engines under the E-Z-GO
name, as well as multipurpose utility vehicles under the E-Z-GO and Cushman brand names. In the fourth quarter of 2007, E-Z-GO introduced its
new energy-effi cient RXV golf car, which it expects will provide reduced energy and maintenance costs for its customers. E-Z-GO’s commercial
customers consist primarily of golf courses, resort communities and municipalities, as well as commercial and industrial users such as airports
and factories. E-Z-GO’s golf cars and off-road utility vehicles also are sold in the consumer market. Sales are made through a network of
distributors and directly to end users. E-Z-GO has two major competitors for golf cars and several other competitors for off-road utility vehicles.
Competition is based primarily on price, product quality and reliability, product support and reputation.
Jacobsen designs and manufactures professional turf-maintenance equipment and specialized turf-care vehicles. Major brand names include
Ransomes, Jacobsen and Cushman. Jacobsen’s commercial customers consist primarily of golf courses, resort communities, sporting venues
and municipalities. Sales are made through a network of distributors and dealers. Jacobsen has two major competitors for professional turf-
maintenance equipment and several other competitors for specialized turf care. Competition is based primarily on price, product quality and
reliability, and product support.
Finance Segment
Our Finance segment consists of Textron Financial Corporation, a diversifi ed commercial fi nance company with core operations in six markets:
• Asset-Based Lending provides revolving credit facilities secured by receivable and inventory, related equipment and real estate term loans, and
factoring programs across a broad range of manufacturing and service industries;
• Aviation Finance provides fi nancing for new and used Cessna business jets, single engine turboprops, piston-engine airplanes, Bell
helicopters and other general aviation aircraft;
• Distribution Finance primarily offers inventory fi nance programs for dealers of products manufactured by Textron and for dealers of a variety of
other household, housing, leisure, agricultural and technology products;
• Golf Finance primarily makes mortgage loans for the acquisition and refi nancing of golf courses and provides term fi nancing for E-Z-GO golf
cars and Jacobsen turf-care equipment;
• Resort Finance primarily extends loans to developers of vacation interval resorts, secured principally by notes receivable and interval
inventory; and
• Structured Capital primarily engages in long-term leases of large-ticket equipment and real estate, primarily with investment grade lessees.
Textron Financial Corporation’s fi nancing activities are confi ned almost exclusively to secured lending and leasing to commercial markets.
Textron Financial Corporation’s services are offered primarily in North America. However, Textron Financial Corporation fi nances certain Textron
products worldwide, principally Bell helicopters and Cessna aircraft. Textron Financial Corporation also fi nances many of the sales at E-Z-GO
and Jacobsen.
In 2007, 2006 and 2005, our Finance segment paid our manufacturing segments $1.2 billion, $1.0 billion and $0.8 billion, respectively, related
to the sale of Textron-manufactured products that it fi nanced. Our Cessna and Industrial segments also received proceeds in those years of
$27 million, $63 million and $41 million, respectively, from the sale of equipment from their manufacturing operations to Textron Financial
Corporation for use under operating lease agreements.