E-Z-GO 2013 Annual Report Download - page 41

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Textron Inc. Annual Report • 2013 28
Finance
(In millions) 2013 2012 2011
Revenues $ 132 $ 215 $ 103
Segment profit (loss) 49 64 (333)
Finance Revenues
Finance segment revenues decreased $83 million in 2013, compared with 2012, primarily attributable to an unfavorable impact of
$46 million, attributable to lower average finance receivables of $834 million. Revenues during 2013 were also lower by $25
million due to the resolution of a Timeshare account that returned to accrual status in 2012.
Finance segment revenues increased $112 million in 2012 compared with 2011, primarily attributable to the following factors:
• $90 million increase related to the valuation of Golf Mortgage finance receivables held for sale. In 2012, we had $76
million in favorable valuation adjustments compared with unfavorable valuation adjustments of $14 million in 2011.
• $42 million of lower portfolio losses, net of gains, primarily associated with the Structured Capital and Timeshare
portfolios.
• $25 million increase due to the resolution of one significant Timeshare account that returned to accrual status and was
subsequently paid off during the third quarter of 2012.
• These increases were partially offset by a $61 million decrease attributable to lower average finance receivables of $1.2
billion.
Finance Segment Profit (Loss)
Finance segment profit decreased $15 million in 2013, compared with 2012, primarily resulting from the resolution of a Timeshare
account in 2012 as discussed above, as well as an unfavorable impact of $25 million in net interest margin from lower average
finance receivables. These decreases were partially offset by lower administrative expenses of $26 million and lower provision for
loan losses of $20 million, largely related to the downsizing of the non-captive business.
Finance segment profit increased $397 million in 2012, compared with 2011, primarily due to changes in valuation adjustments,
lower portfolio losses, net of gains, and the resolution of one significant Timeshare account discussed above, as well as lower
administrative expense of $56 million, primarily associated with the exit of the non-captive business. In addition, we recorded a
$186 million valuation allowance on the transfer of the Golf Mortgage portfolio from held for investment to the held for sale
classification during the fourth quarter of 2011. These increases were partially offset by a $27 million decrease in net interest
margin attributable to lower average finance receivables.
Finance Portfolio Quality
The following table reflects information about the Finance segment’s credit performance related to finance receivables that are
classified as held for investment.
(Dollars in millions)
December 28,
2013
December 29,
2012
Finance receivables $ 1,483 $ 1,934
N
onaccrual finance receivables 105 143
Ratio of nonaccrual finance receivables to finance receivables 7.08% 7.39%
60+ days contractual delinquency $ 80 $ 90
60+ days contractual delinquency as a percentage of finance receivables 5.39% 4.65%