E-Z-GO 2013 Annual Report Download - page 28

15 Textron Inc. Annual Report • 2013
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
On December 28, 2013, we operated a total of 52 plants located throughout the U.S. and 52 plants outside the U.S. We own 53
plants and lease the remainder for a total manufacturing space of approximately 21.1 million square feet. We consider the
productive capacity of the plants operated by each of our business segments to be adequate. We also own or lease offices,
warehouses, service centers and other space at various locations. In general, our facilities are in good condition, are considered to
be adequate for the uses to which they are being put and are substantially in regular use.
Item 3. Legal Proceedings
As previously reported in Textron’s Annual Report on Form 10-K for the fiscal year ended January 2, 2010, on August 21, 2009, a
purported class action lawsuit was filed in the United States District Court in Rhode Island by Dianne Leach, an alleged participant
in the Textron Savings Plan. Plaintiffs alleged that the company and certain of its present and former employees, officers and
directors had violated the United States Employee Retirement Income Security Act (ERISA) by imprudently permitting
participants in the Textron Savings Plan to invest in Textron common stock. The complaints sought equitable relief and
unspecified compensatory damages. As reported in Textron’s Annual Report on Form 10-K for the fiscal year ended December 29,
2012, on December 13, 2012, as a result of a mediation process overseen by an independent mediator, the parties reached an
agreement in principle, subject to settlement documentation and court approval, to settle the plaintiffs’ claims for an immaterial
amount. On August 21, 2013, the Court entered an order preliminarily approving the settlement, certifying a settlement class, and
approving the form and manner of class notice. On February 10, 2014, the Court entered an order giving final approval of the
settlement and final judgment in the case. Neither Textron nor any of the other defendants in the settlement admitted any
wrongdoing with respect to the allegations in the case.
We also are subject to other actual and threatened legal proceedings and other claims arising out of the conduct of our business,
including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of
compliance with applicable laws and regulations; production partners; product liability; patent and trademark infringement;
employment disputes; and environmental, health and safety matters. Some of these legal proceedings and claims seek damages,
fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are
subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with
applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S.
Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of
information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial
position or results of operations.
Item 4. Mine Safety Disclosures
Not applicable.