E-Z-GO 2008 Annual Report Download - page 24

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Textron Inc.
Our joint venture, teaming and other arrangements involve risks and uncertainties.
We have entered, and expect to continue to enter, into joint venture, teaming and other arrangements, and these activities involve risks and
uncertainties, including the risk of the joint venture or related business partner failing to satisfy its obligations, which may result in certain
liabilities to us for guarantees and other commitments, the challenges in achieving strategic objectives and expected benefits of the business
arrangement, the risk of conflicts arising between us and our partners and the difficulty of managing and resolving such conflicts, and the
difficulty of managing or otherwise monitoring such business arrangements.
We may make acquisitions and dispositions that increase the risks of our business.
We may enter into acquisitions or dispositions in the future in an effort to enhance shareholder value. Acquisitions or dispositions involve a
certain amount of risks and uncertainties that could result in our not achieving expected benefits. With respect to acquisitions, such risks include
difficulties in integrating newly acquired businesses and operations in an efficient and cost-effective manner; challenges in achieving expected
strategic objectives, cost savings and other benefits; the risk that the acquired businesses’ markets do not evolve as anticipated and that the
technologies acquired do not prove to be those needed to be successful in those markets; the risk that we pay a purchase price that exceeds what
the future results of operations would have merited; and the potential loss of key employees of the acquired businesses. With respect to
dispositions, the decision to dispose of a business or asset may result in a writedown of the related assets if the fair market value of the assets,
less costs of disposal, is less than the book value. In addition, we may encounter difficulty in finding buyers or alternative exit strategies at
acceptable prices and terms and in a timely manner. We may also underestimate the costs of retained liabilities or indemnification obligations. In
addition, unanticipated delays or difficulties in effecting acquisitions or dispositions may divert the attention of our management and resources
from our existing operations.
Our operations could be adversely affected by interruptions of production that are beyond our control.
Our business and financial results may be affected by certain events that we cannot anticipate or that are beyond our control, such as natural
disasters and national emergencies that could curtail production at our facilities and cause delayed deliveries and canceled orders. In addition, we
purchase components and raw materials and information technology and other services from numerous suppliers, and, even if our facilities are
not directly affected by such events, we could be affected by interruptions at such suppliers. Such suppliers may be less likely than our own
facilities to be able to quickly recover from such events and may be subject to additional risks such as financial problems that limit their ability to
conduct their operations.
Our business could be adversely affected by strikes or work stoppages and other labor issues.
Approximately 9,400 of our employees, or 22% of our total employees, are unionized. As a result, we may experience work stoppages, which
could negatively impact our ability to manufacture our products on a timely basis, resulting in strain on our relationships with our customers and
a loss of revenues. In addition, the presence of unions may limit our flexibility in responding to competitive pressures in the marketplace, which
could have an adverse effect on our financial results of operations.
In addition to our workforce, the workforces of many of our customers and suppliers are represented by labor unions. Work stoppages or strikes at
the plants of our key customers could result in delayed or canceled orders for our products. Work stoppages and strikes at the plants of our key
suppliers could disrupt our manufacturing processes. Any of these results could adversely affect our financial results of operations.
Our international business is subject to the risks of doing business in foreign countries.
Our international business exposes us to certain unique and potentially greater risks than our domestic business, and our exposure to such risks
may increase if our international business continues to grow. Our international business is subject to local government regulations and
procurement policies and practices, including regulations relating to import-export control, investments, exchange controls and repatriation of
earnings or cash settlement challenges, as well as to varying currency, geopolitical and economic risks. We also are exposed to risks associated
with using foreign representatives and consultants for international sales and operations and teaming with international subcontractors and
suppliers in connection with international programs.
We are subject to legal proceedings and other claims.
We are subject to legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to
commercial and financial transactions; government contracts; lack of compliance with applicable laws and regulations; production partners;
product liability; patent and trademark infringement, employment disputes; and environmental, safety and health matters. Under federal
government procurement regulations, certain claims brought by the U.S. Government could result in our being suspended or debarred from U.S.
Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and