E-Z-GO 2012 Annual Report Download - page 14

2 Textron Inc. Annual Report ● 2012
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 products and services around the world. We have approximately 33,000 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.
We conduct our business through five operating segments: Cessna, Bell, Textron Systems and Industrial, which represent our
manufacturing businesses, and Finance, which represents 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 17
to the Consolidated Financial Statements on pages 80 through 81 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 19 through 38 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.
Cessna Segment
Cessna is the world’s leading general aviation company based on unit sales with two principal lines of business: Aircraft sales and
aftermarket services. Aircraft sales include Citation jets, Caravan single-engine utility turboprops, single-engine piston aircraft
and lift solutions by CitationAir. Aftermarket services include parts, maintenance, inspection and repair services. Revenues in the
Cessna segment accounted for approximately 25%, 26% and 24% of our total revenues in 2012, 2011 and 2010, respectively.
Revenues for Cessna’s principal lines of business were as follows:
(In millions) 2012 2011 2010
Aircraft sales $ 2,318 $ 2,263 $ 1,896
Aftermarket 793 727 667
$ 3,111 $ 2,990 $ 2,563
The family of jets currently produced by Cessna includes the Mustang, Citation CJ2+, Citation CJ3, Citation CJ4, Citation XLS+,
Citation Sovereign and Citation X. Deliveries of the Citation M2 are expected to begin in the second half of 2013, and Cessna
anticipates receiving certification and beginning delivery of the new Citation X model, with updated design and performance from
the original Citation X, in late 2013. During 2012, Cessna announced the development of the Citation Longitude, a super midsize
business jet expected to enter into service in 2017, as well as the new Citation Sovereign, an upgraded midsize business jet planned
for a late 2013 entry into service. In addition, Cessna increased the range for the previously announced Citation Latitude to 2,500
nautical miles; this aircraft is expected to enter into service in 2015.
The Cessna Caravan is the world’s best-selling utility turboprop. Caravans are used in the United States primarily for overnight
express package shipments and for personal transportation. International uses of Caravans include humanitarian flights, tourism
and freight transport. Cessna also offers a single-engine piston product line, which includes the Skycatcher, Skyhawk SP, Skylane,
Stationair and the Corvalis TTX. The Turbo Skylane JT-A was announced in 2012 with deliveries expected to begin in 2013.
The Citation family of aircraft currently is supported by 15 Citation Service Centers owned or operated by Cessna, two of which
are co-located with Bell Helicopter, along with authorized independent service stations and centers located in more than 25
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 offers an array of service options for Citation aircraft,
known as SERVICEDIRECT®, which delivers service capabilities directly to customer locations with a Mobile Service Unit fleet
of 22 vehicles in the United States, Canada and Europe. Cessna Caravan and single-engine piston customers receive product
support through independently owned service stations and around-the-clock parts support through Cessna.
Cessna markets its products worldwide through its own sales force, as well as through a network of authorized independent sales
representatives. Cessna has several competitors domestically and internationally in various market segments. Cessna’s aircraft
compete with other aircraft that vary in size, speed, range, capacity and handling characteristics on the basis of price, product
quality and reliability, product support and reputation.
CitationAir provides a spectrum of private aviation lift solutions, including Jet Charter, Jet Management and Corporate Solutions
throughout the contiguous U.S. and in Canada, Mexico, the Caribbean, the Bahamas and Bermuda.