E-Z-GO 2010 Annual Report Download - page 10

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8
“Of course I prefer to work through Textron with the funding from
Export-Import Bank because you can provide us with the structure
and the speed we need to close the deal with our customers.”
Leonardo Fiuza
Sales Director, TAM Executive Aviation, Brazil
Finance Performance HighlightsFinance Receivables
(In millions)
(In millions) 2010 2009 2008
Segment Revenues $218 $361$723
Segment Profi t (Loss) (237) (294) (50)
For the Finance segment, 2010 was a year of continued
execution of Textron’s strategy to liquidate non-captive
fi nance receivables, while also establishing a strong capital
structure to support the captive fi nance business. By year-
end, the team achieved total liquidations of $2.4 billion
with a cash conversion ratio of 91 percent. Proceeds from
these liquidations continue to be allocated to reduce the
company’s debt.
Efforts in 2010 to ensure a vibrant captive fi nance business
involved leveraging prior success at obtaining affordable
capital from a unique source—export credit agencies—
to support the sale of Textron products. Examples of
progress made during the year include the following:
• Extended a $500 million facility with the Export-Import
Bank of the United States (Ex-Im Bank) for another
18 months to support international sales of Cessna and
Bell products manufactured in the United States.
• Secured an additional $50 million in a new facility
guaranteed by Ex-Im Bank to support international
sales of Bell and Cessna pre-owned aircraft.
• Entered a new relationship with Export Development
Canada and secured a $125 million facility to support
sales of Cessna models equipped with Pratt & Whitney
engines to U.S. customers.
• Also secured a $145 million facility with Export
Development Canada to support Bell product sales
to customers outside of Canada.
As Textron markets recover, the Finance segment plays
an important role in the sale of the company’s products.
The team will continue to look for innovative ways to
support Textron customers by providing fi nancing for
the purchase of its products.
Finance
Captive Balance:
$2,332
Captive Aviation $2,120
Captive Golf Equipment $212
Non-Captive Balance:
$2,294
Timeshare $894
Golf Mortgage/Hotel $876
Structured $317
Distribution and Other $207
Non-CaptiveCaptive