E-Z-GO 2011 Annual Report Download - page 36

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Bell’s operating expenses increased $190 million, 7%, in 2011, compared with 2010, primarily due to higher sales volume
discussed above, partially offset by improved cost performance. Improved cost performance was primarily related to our military
programs due to efficiencies realized through our production ramp-up as described below.
Factors contributing to the 2010 year-over-year revenue change are provided below:
(In millions)
2010 versus
2009
Volume
$ 332
Other
67
Total change
$ 399
Bell’s revenues increased $399 million, 14%, in 2010, compared with 2009, primarily due to higher volume, which included the
following factors:
$230 million increase in volume related to the V-22 program, primarily reflecting higher deliveries. Bell delivered 26 V-
22 aircraft in 2010, compared with 20 deliveries in 2009;
$113 million increase in other military volume, primarily reflecting higher H-1 deliveries, with 18 H-1 aircraft delivered
in 2010, compared with 9 deliveries in 2009; this increase is net of a $28 million impact from revenues recognized in
2009 on the canceled Armed Reconnaissance Helicopter Program; and an
$11 million decrease in commercial volume, largely related to lower commercial aircraft deliveries. Bell delivered 131
commercial aircraft in 2010, compared with 153 aircraft in 2009.
Commercial revenues increased despite lower volume, largely due to improved pricing in 2010, which is included in the Other
line.
Bell’s operating expenses increased 11% in 2010 from 2009, primarily due to the higher net sales volume, partially offset by
improved cost performance. Improved performance was primarily related to the V-22 and H-1 programs and unfavorable
adjustments recorded in 2009 for the 429 program as discussed below, partially offset by $14 million in higher research and
development costs.
Bell Segment Profit
Factors contributing to 2011 year-over-year segment profit change are provided below:
(In millions)
2011 versus
2010
Performance
$ 109
Pricing, net of inflation
7
Volume and mix
(22)
Total change
$ 94
Bell’s segment profit increased $94 million, 22%, in 2011, compared with 2010, primarily due to improved program performance
of $109 million, partially offset by an unfavorable mix of military and commercial aircraft sold during the period. Bell’s improved
performance included the following:
$122 million resulting from improved manufacturing efficiencies in our military programs, resulting from efficiencies
realized in connection with the ramp up of production lines; partially offset by a
$30 million unfavorable net change in program profit adjustments; this change was largely due to a $21 million
adjustment recognized in 2010 related to the recognition of profit on the H-1 and V-22 programs for reimbursement of
prior year costs.
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Textron Inc. Annual Report • 2011 25