E-Z-GO 2013 Annual Report Download - page 18

5 Textron Inc. Annual Report • 2013
Golf, Turf Care and Light Transportation Vehicles
Our Golf, Turf Care and Light Transportation Vehicles product line includes the products designed, manufactured and sold by our
E-Z-GO and Jacobsen business units.
E-Z-GO designs, manufactures and sells golf cars, off-road utility vehicles and light transportation vehicles under the E-Z-GO,
Cushman and Bad Boy Buggies brand names. Although E-Z-GO is best known for its electric-vehicle technology, it also
manufactures and sells models powered by internal combustion engines. E-Z-GO’s diversified customer base includes golf
courses and resorts, government agencies and municipalities, consumers, and commercial and industrial users such as factories,
warehouses, airports and educational and corporate campuses. Sales are made through a combination of factory direct resources
and a network of independent distributors and dealers worldwide. E-Z-GO has two major competitors for golf cars and several
other competitors for off-road and light transportation vehicles. Competition is based primarily on price, product quality and
reliability, product support and reputation.
Jacobsen designs, manufactures and sells professional turf-maintenance equipment, as well as specialized turf-care vehicles.
Brand names include Ransomes, Jacobsen and Cushman. Jacobsen’s customers include golf courses, resort communities, sporting
venues and municipalities. Products are sold primarily through a worldwide network of distributors and dealers, as well as factory
direct. Jacobsen has two major competitors for professional turf-maintenance equipment and several other major competitors for
specialized turf-care products. Competition is based primarily on price, product features, product quality and reliability and
product support.
Powered Tools, Testing and Measurement Equipment
Our Greenlee business unit designs and manufactures powered equipment, electrical test and measurement instruments,
mechanical and hydraulic tools, cable connectors, and fiber optic assemblies under the Greenlee, Klauke, Paladin Tools and
Tempo brand names. These products are used principally in the construction, maintenance, telecommunications, data
communications, utility and plumbing industries. During 2013, our Greenlee business acquired Sherman & Reilly, Inc., a
manufacturer of underground and aerial transmission and distribution products, and HD Electric Company, a designer and
manufacturer of power utility products. Greenlee distributes its products through a global network of sales representatives and
distributors and also sells its products directly to home improvement retailers and original equipment manufacturers. Through
joint ventures in North America and China, Greenlee also sells its products to the plumbing, industrial manufacturing and related
industries. Greenlee faces competition from numerous manufacturers based primarily on price, delivery lead time, product quality
and reliability.
Finance Segment
Our Finance segment, or the Finance group, is a commercial finance business that consists of Textron Financial Corporation (TFC)
and its consolidated subsidiaries. The Finance segment provides financing primarily to purchasers of new Cessna aircraft and Bell
helicopters as well as pre-owned Cessna aircraft and Bell helicopters on a limited basis. The majority of new finance receivables
are cross-border transactions for aircraft sold outside of the U.S. New originations in the U.S. are primarily for purchasers who
had difficulty in accessing other sources of financing for the purchase of Textron-manufactured products. In 2013, 2012 and 2011,
our Finance group paid our Manufacturing group $248 million, $309 million and $284 million, respectively, related to the sale of
Textron-manufactured products to third parties that were financed by the Finance group.
The commercial finance business traditionally is extremely competitive. Our Finance segment is subject to competition from
various types of financing institutions, including banks, leasing companies, commercial finance companies and finance operations
of equipment vendors. Competition within the commercial finance industry primarily is focused on price, term, structure and
service.
Our Finance segment’s largest business risk is the collectability of its finance receivable portfolio. See “Finance Portfolio
Quality” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” on page 28 for
information about the Finance segment’s credit performance.