E-Z-GO 2014 Annual Report Download - page 29

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Textron Aviation Segment Profit (Loss)
Factors contributing to 2014 year-over-year segment profit (loss) change are provided below:
(In millions)
2014 versus
2013
Performance and other
$ 117
Volume
89
Pricing and inflation
48
2013 Voluntary Separation Program
28
Total change
$ 282
Textron Aviation segment profit increased $282 million in 2014, compared with 2013, primarily due to an increase in Performance
and other, higher volume as described above, favorable pricing and inflation and $28 million in severance costs incurred in 2013.
During the second quarter of 2014, the cost structures of Beechcraft and Cessna were significantly integrated, and as a result,
Performance and other reflects the net profit impact of Beechcraft, including the benefit of the integrated cost structure.
Performance and other also includes amortization of $63 million in 2014, related to fair value step-up adjustments of acquired
inventories sold during the periods.
Factors contributing to 2013 year-over-year segment profit (loss) change are provided below:
(In millions)
2013 versus
2012
Volume
$ (99)
Inflation, net of pricing
(21)
Other
(10)
Total change
$ (130)
Textron Aviation’s segment profit decreased $130 million in 2013, compared with 2012, primarily due to a $99 million impact
from lower volume as described above and $21 million in inflation, net of pricing, largely due to higher pension expense of $17
million. Segment profit was also impacted by $28 million in severance costs incurred in 2013, largely offset by a $27 million
charge from an unfavorable arbitration award incurred in 2012.
Textron Aviation Backlog
Textron Aviation’s backlog increased $347 million, 34%, in 2014 and decreased $44 million, 4%, in 2013. The increase in 2014
included the Beechcraft acquisition.
Bell
% Change
(Dollars in millions)
2014
2013
2012
2014
2013
Revenues:
V-22 program
$ 1,771
$ 1,755
$ 1,611
1%
9%
Other military
860
959
940
(10)%
2%
Commercial
1,614
1,797
1,723
(10)%
4%
Total revenues
4,245
4,511
4,274
(6)%
6%
Operating expenses
3,716
3,938
3,635
(6)%
8%
Segment profit
529
573
639
(8)%
(10)%
Profit margin
12.5%
12.7%
15.0%
Backlog
$ 5,524
$ 6,450
$ 7,469
(14)%
(14)%
Bell’s major U.S. Government programs at this time are the V-22 tiltrotor aircraft and the H-1 helicopter platforms, which are both
in the production stage and represent a significant portion of Bell’s revenues from the U.S. Government.
23
Textron Inc. Annual Report • 2014