E-Z-GO 2013 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 2013 E-Z-GO annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

Textron Inc. Annual Report • 2013 2
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 32,000 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 15
to the Consolidated Financial Statements on pages 75 through 76 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 18 through 37 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 and single-engine utility and
high-performance piston aircraft. Aftermarket services include parts, maintenance, inspection and repair services. Revenues in the
Cessna segment accounted for approximately 23%, 25% and 26% of our total revenues in 2013, 2012 and 2011, respectively.
Revenues for Cessna’s principal lines of business were as follows:
(In millions) 2013 2012 2011
Aircraft sales $ 1,868 $ 2,318 $ 2,263
Aftermarket 916 793 727
$ 2,784 $ 3,111 $ 2,990
The family of jets currently produced by Cessna includes the Mustang, Citation M2, Citation CJ2+, Citation CJ3, Citation CJ4,
Citation XLS+ and the new Citation Sovereign+. The new Citation X+, recently verified by the FAA as the fastest civilian jet in
the world, is expected to be certified in early 2014. In addition, Cessna is developing the Citation Latitude, a midsize business jet
scheduled for first flight in 2014 and expected to enter into service in 2015, as well as the Citation Longitude, a super midsize
business jet expected to enter into service in 2017.
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 air taxi service, humanitarian
flights, tourism and freight transport. Cessna also offers a single-engine piston product line that includes the Skyhawk SP,
Stationair and the new high performance TTx which we began delivering during 2013. The Turbo Skylane JT-A, Cessna’s first
Jet-A fueled piston aircraft, is expected to be certified and to begin delivering in 2014.
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, direct operating costs, product support and reputation.