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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 34,000 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.
On March 14, 2014, we completed the acquisition of Beech Holdings, LLC, which included Beechcraft Corporation and other
subsidiaries (collectively “Beechcraft”). We combined Beechcraft with our legacy Cessna segment to form the Textron Aviation
segment.
We conduct our business through five operating segments: Textron Aviation, 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 72 through 73 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 19 through 36 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.
Textron Aviation Segment
Textron Aviation is a leader in general aviation. Textron Aviation manufactures, sells and services Beechcraft and Cessna aircraft,
and services the Hawker brand of business jets. The segment has two principal product lines: aircraft sales and aftermarket.
Aircraft sales include business jets, turboprop aircraft, piston aircraft, and military trainer and defense aircraft. Aftermarket
includes parts sales, and maintenance, inspection and repair services. Revenues in the Textron Aviation segment accounted for
approximately 33%, 23% and 25% of our total revenues in 2014, 2013 and 2012, respectively. Revenues for Textron Aviation’s
principal lines of business were as follows:
(In millions)
2014
2013
2012
Aircraft sales
$ 3,182
$ 1,868
$ 2,318
Aftermarket
1,386
916
793
Total revenues
$ 4,568
$ 2,784
$ 3,111
The family of jets currently produced by Textron Aviation includes the Mustang, Citation M2, Citation CJ3+, Citation CJ4,
Citation XLS+, Citation Sovereign+ and the recently certified Citation X+, the fastest civilian jet in the world. In addition,
Textron Aviation is developing the Citation Latitude, a midsize business jet expected to enter into service in 2015, as well as the
larger Citation Longitude expected to enter into service in 2017.
Textron Aviation’s turboprop aircraft include the best-selling business turboprop family in the world, the King Air, which offers
the King Air C90GTx, with recently announced performance enhancements, the King Air 250, available with a new payload
upgrade and the King Air 350. The world’s best-selling utility turboprop, the Cessna Caravan, is 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.
Textron Aviation’s single-engine piston aircraft include the Baron, Bonanza, Skyhawk SP, Turbo Stationair and the high
performance TTx. The Turbo Skylane JT-A, Textron Aviation’s first Jet-A fueled piston aircraft is expected to be certified and
begin delivering in 2015.
Textron Aviation also offers the T-6 trainer and AT-6 light attack military aircraft. During 2014, Textron Aviation received new
orders from the U.S. Government, Mexico and New Zealand for T-6 aircraft. More than 25 countries now operate the T-6 aircraft
as a part of their military training fleet.
The Textron Aviation family of aircraft is supported by a global network of 21 service centers operated by Textron Aviation, two
of which are co-located with Bell Helicopter, along with 401 authorized independent service centers located in 49 countries
throughout the world. Textron Aviation-owned service centers provide customers with 24-hour service and maintenance. Textron
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Textron Inc. Annual Report • 2014