E-Z-GO 2011 Annual Report Download - page 9

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A healthier, more focused Finance business emerged in
2011. The business operates along two lines: The Captive
Finance business is focused on serving the needs of Textron’s
customers who are considering the purchase of a Bell
or Cessna aircraft. The Non-Captive Finance business is
dedicated to executing the asset liquidation plan that began
in 2008. Each of these teams made remarkable progress
towards a stronger balance sheet in 2011.
The Non-Captive Finance business continued with the planned
liquidation of its portfolio. Liquidations for the year totaled
$1.3 billion. This brought the total portfolio of Non-Captive
receivables below $1 billion at year’s end—an 87 percent
reduction from the $7.3 billion in managed finance receivables
in place at the end of 2008 when the exit plan was initiated.
Proceeds from these liquidations continue to be used to reduce
the company’s debt.
For the Captive Finance business, 2011 results were the best
since 2008. Key to this improvement was the stabilization of
aircraft values and stronger portfolio performance. During the
year, Captive Finance successfully supported more than $330
million of Textron manufactured product sales, including 127
new aircraft to Bell and Cessna customers. This success can
be attributed to Captive Finance’s ability to draw upon several
funding sources and structure highly-competitive aircraft loans.
In line with this strategy, Captive Finance continued to build
partnerships with export credit agencies in 2011. These
quasi-government agencies help provide competitive financing
to export customers—and this is becoming an increasingly
important differentiator for Bell and Cessna. In fact, over
80 percent of Textron’s new aircraft financing was funded
through its facilities with the Export-Import Bank of the United
States and Export Development Canada. For the year, over
70 percent of loan originations within Captive Finance’s aviation
portfolio were for customers outside the U.S. The business
further enhanced its international presence by positioning more
resources in overseas locations to be closer to the customer.
Captive Finance remains a valuable catalyst for growth—helping
to provide the funding that turns aviation dreams into reality.
FINANCE SEGMENT DRIVES DOWN DEBT AND
BRINGS VALUE TO AIRCRAFT CUSTOMERS.
FINANCE
8
PERFORMANCE HIGHLIGHTS FINANCE RECEIVABLES
(In millions) 2011 2010 2009
Segment Revenues $103 $218 $361
Segment Profit (Loss) $(333) $(237) $(294) 2011
2011 Non-Captive Receivables
Timeshare: $318
Golf Mortgage: $381
Structured Capital: $208
Other: $43
Captive Receivables
Aviation: $1,876
Golf Equipment: $69
$1,945
$950
(In millions)