E-Z-GO 2008 Annual Report Download - page 14

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PART I
Item 1. Business
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide
customers with innovative solutions and services around the world. We have approximately 43,000 employees worldwide. Textron Inc. was
founded in 1923 and reincorporated in Delaware on July 31, 1967. Unless otherwise indicated, references to “Textron Inc.,” the “Company,” “we,”
“our” and “us” in this Annual Report on Form 10-K refer to Textron Inc. and its consolidated subsidiaries.
Since the beginning of 2008, we have conducted our business through five operating segments: Cessna, Bell, Textron Systems, Industrial and
Finance. Prior to 2008, the Bell segment consisted of two divisions, Bell Helicopter and Textron Systems. In 2008, we changed our segment
reporting to separate Textron Systems into its own segment, initially named “Defense & Intelligence,” and to report Bell Helicopter as its own
segment, Bell. All periods presented herein have been restated to reflect the new segment reporting structure.
Four of our operating segments represent our manufacturing businesses: Cessna, Bell, Textron Systems and Industrial. Our fifth segment consists
of our Finance business. A description of the business of each of our segments is set forth below. Our business segments include operations that
are unincorporated divisions of Textron Inc. and others that are separately incorporated subsidiaries. Financial information by business segment
and geographic area appears in Note 20 to the Consolidated Financial Statements on pages 87 through 89 of this Annual Report on Form 10-K.
The following description of our business should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” on pages 17 through 27 of this Annual Report on Form 10-K. Information included in this Annual Report on Form 10-K
refers to our continuing businesses unless otherwise indicated.
During the second half of the year, turmoil in the capital markets and the deepening recession significantly impacted many of our businesses. On
December 22, 2008, we announced our plan to exit the non-captive commercial finance business in the Finance segment. We also announced a
restructuring program designed to reduce costs across the company. See the “Liquidity and Capital Resources” section beginning on page 28 for
a discussion of these actions and for a discussion of our liquidity and capital resources.
Cessna Segment
Based on unit sales, Cessna Aircraft Company is the world’s largest manufacturer of general aviation aircraft. Cessna currently has four major
product lines: Citation business jets, Caravan single engine turboprops, Cessna single engine piston aircraft and aftermarket services. Revenues
in the Cessna segment accounted for approximately 40%, 40% and 38% of our total revenues in 2008, 2007 and 2006, respectively.
The family of business jets currently produced by Cessna includes the Mustang, Citation CJ1+, Citation CJ2+, Citation CJ3, Citation CJ4,
Citation Encore+, Citation XLS+, Citation Sovereign and Citation X. First customer deliveries of the Citation CJ4 are scheduled to commence in
2010. In 2008, Cessna began developing the Citation Columbus, a wide-body, eight-passenger business jet designed for intercontinental travel.
The Cessna Caravan is the world’s best-selling utility turboprop. Caravans are offered in four models: the Grand Caravan, the Super Cargomaster,
the Caravan 675 and the Caravan Amphibian. Caravans are used in the U.S. primarily for overnight express package shipments and for personal
transportation. International uses of Caravans include humanitarian flights, tourism and freight transport.
Cessna offers nine models in its single engine piston product line, which include the four-place Skyhawk, Skyhawk SP, Skylane, Turbo Skylane,
Cessna 350 Corvalis, Cessna 400 Corvalis TT, six-place Stationair, Turbo Stationair and the two-place Model 162 SkyCatcher. First customer
deliveries of the SkyCatcher are scheduled to commence in late 2009.
The Citation family of aircraft currently is supported by 10 Citation Service Centers owned or operated by Cessna, along with authorized
independent service stations and centers located in more than 22 countries throughout the world. Cessna-owned Service Centers provide
customers with 24-hour service and maintenance. Cessna also provides around-the-clock parts support for Citation aircraft. Cessna Caravan and
single engine piston customers receive product support through independently owned service stations and around-the-clock parts support
through Cessna.
1
Textron Inc.