INVESTOR FACT BOOK
TEXTRON
Textron Inc. is a $10.5 billion multi-industry company operating in 25 countries with
approximately 32,000 employees. The company leverages its global network of aircraft,
defense and intelligence, industrial and finance businesses to provide customers with
innovative solutions and services. Textron is known around the world for its powerful
brands such as Bell Helicopter, Cessna Aircraft, E-Z-GO, Greenlee, Jacobsen, Kautex,
Lycoming, Textron Systems and Textron Financial Corporation.
Textron Inc. consists of numerous subsidiaries and operating divisions. Please refer to the back cover for legal entity structure.
Key Executives
Scott C. Donnelly
Chairman and
Chief Executive Officer
Frank T. Connor
Executive Vice President and
Chief Financial Officer
Scott C. Donnelly was named chief executive officer
in December 2009 and chairman of the board in
September 2010. Donnelly joined Textron as executive
vice president and chief operating officer in June 2008
and was promoted to president in January 2009. Prior
to joining Textron, Donnelly was president and CEO for
General Electric (GE) Aviation. He also held various
other management positions since joining GE in 1989.
Frank Connor joined Textron as executive vice
president and chief financial officer in August 2009.
Connor came to Textron after a 22-year career at
Goldman, Sachs & Co. where, most recently, he was
managing director and head of Telecom Investment
Banking. Prior to that, he served as Goldman, Sachs &
Co.’s chief operating officer of Telecom, Technology
and Media Investment Banking.
Jack J. Pelton
Cessna Chairman,
President and CEO
John L. Garrison Jr.
Bell Helicopter
President and CEO
Frederick M. Strader
Textron Systems
President and CEO
J. Scott Hall
Industrial Segment
and Greenlee
President
Warren R. Lyons
Textron Financial
Corporation President
and CEO
Financial Highlights
(Dollars in millions except per share data)
2010
2009
Change
Revenues
International revenues %
Segment profit 1
Income (loss) from continuing operations
Total debt – Manufacturing group 2
Shareholders’ equity
Debt (net of cash and equivalents) to total capital – Manufacturing group 2
$ 10,525
36% $ 553
$
92
$ 2,302
$ 2,972
32%
$ 10,500
37% $ 475
$
(73)
$ 3,584
$ 2,826
39%
—
Common Share Data
Diluted EPS from continuing operations 3
Dividends per share
Diluted average shares outstanding (in thousands) 3
$ 0.30
$ 0.08
302,555
$ (0.28)
$ 0.08
262,923
Key Performance Metrics
ROIC 4
Net cash provided by operating activities of
continuing operations – Manufacturing group – GAAP 2
Manufacturing cash flow before pension contributions – Non-GAAP 2, 5
Pension contributions
8.0%
$
$
$
16%
226%
(36)%
5%
207%
—
15%
5.5%
730
759
417
$
$
$
738
503
79
(1)%
51%
428%
1 S egment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for manufacturing segment excludes interest expense, certain corporate
expenses and special charges. The measurement for the Finance segment includes interest income and expense and excludes special charges.
2 Our Manufacturing group includes all continuing operations of Textron Inc., except for the Finance segment.
3 F or 2009, the potential dilutive effect of stock options, restricted stock units and shares that could be issued upon the conversion of our 4.50% convertible Senior Notes and upon the exercise of the
related warrants was excluded from the computation of diluted weighted-average shares outstanding as the shares would have an anti-dilutive effect on the loss from continuing operations.
4 Calculation of return on invested capital (“ROIC”) is provided on page 12.
5 Calculations of manufacturing cash flow before pension contributions are provided on page 11.
Textron Inc. Credit Ratings (as of March 1, 2011)
Senior Long-Term
Short-Term
Commercial Paper
Net Debt
S&P
Fitch Moody’s
BBB-
BB+
Baa3
A3
B
P3
Consolidated Cash and Equivalents
TFC Managed Debt
TXT Debt
Total debt
Net Debt
$
2010
2009
931
3,660
2,302
$ 1,892
5,698
3,584
Change
$
(961)
(2,038)
(1,282)
5,962
9,282
(3,320)
$ 5,031
$ 7,390
$ (2,359)
Textron Revenue by:
Segment
Geography
19%
Textron Systems
24%
Industrial
31%
Bell
2%
Finance
Africa 1%
Canada 3%
Middle East 3%
Asia Pacific 7%
Latin America & Mexico 8%
64%
U.S.
Europe 14%
24%
Cessna
Customer Type
38%
Military
60%
Commercial
2%
Finance
Textron 2010 Fact Book
1
CESSNA
Cessna is the world’s leading general aviation company based on
unit sales with two major lines of business: Aircraft sales and
aftermarket services. Aircraft sales include Citation business jets,
Caravan single-engine utility turboprops, single-engine piston
aircraft and lift solutions by CitationAir. Aftermarket services include
parts, maintenance, inspection and repair services.
24% Cessna’s share of
Textron 2010 revenues
Fast Facts
> Approximate revenues by region: U.S.: 64%, Europe: 13%, Latin America and Mexico:
> McCauley propellers are on more than 250,000 aircraft around the world – a
10%, Asia-Pacific: 7%, Middle East: 3%, Africa: 2%, and Canada: 1%.
testimony to our continuing commitment to excellence.
> Cessna has approximately 7,800 employees worldwide.
> Cessna Citations are registered in more than 90 countries and represent the largest
fleet of business jets in the world.
> Manufacturing facilities located in Wichita and Independence, Kansas; Columbus,
> Certified at Mach 0.92, the Citation X is the world’s fastest business jet in service.
Georgia; and Chihuahua, Mexico.
> In its 84-year history, Cessna has delivered approximately 193,000 aircraft, including more > Cessna operates nine Citation Service Centers: eight at airports across the U.S. and
than 154,000 single-engine piston airplanes; more than 2,000 Caravans; more than 2,000
military jets and more than 6,100 Citation business jets. Cessna has delivered twice as
many very light, light and midsize business jets as its closest competitor.
Sales
By Product Line
By Customer
100
26% Aftermarket
1% U.S. Government
New Jet Model First Delivery
CitationAir Fractional and Vector Contracts
2004
1,200
100
aftermarket
aircraft sales
2006
60
95% Corporate
CJ2+
Mustang
XLS+
20
2010
0
percent
govt
900
fractional
corp
600
Encore+
40
2008
20
CJ1+
80
60
2007
40
0
CJ3
Sovereign
2005
4% Fractional Ownership
80
74% Aircraft Sales
one at Le Bourget Airport in Paris, France. Cessna has announced a new European
Citation Service Center to open in Spain. Authorized Independent Service Centers/
Stations are located in 27 countries throughout the world.
300
CJ4
percent
99
00
01
02
03
04
05
06
07
08
09
10
Major Products
Std/Max
Maximum
Seating Capacity Cruising
Range First
(Including
Speed (IFR w/ NBAA
Delivery
Pilots)
(kts)
reserves)
Citation Model
Mustang CJ1+ CJ2+ CJ3 CJ4 Encore+ XLS+ Sovereign Citation X 2006
2005
2006
2004
2010
2007
2008
2004
1996
Turboprop Model Caravan 675
1985
Grand Caravan
1986
Single-engine Piston
162 SkyCatcher 172R Skyhawk 172S Skyhawk SP 182T Skylane T182T Turbo Skylane 206H Stationair T206H Turbo Stationair 350 Corvalis
400 Corvalis TT
* 45 minute fuel reserve
2 Textron 2010 Fact Book
2009
1997
1997
1997
2001
1998
1998
2007
2007
6
8
9/10
9/10
10/11
10/13
11/14
11/14
11/14
340
389
418
416
453
428
441
458
525
8/14
10/14
186
175
2
4
4
4
4
6
6
4
4
118
122
126
150
176
151
178
191
235
1,150
1,300
1,613
1,875
2,002
1,780
1,858
2,847
3,070
Unit
Price
Engine
(in millions)
Manufacturer
Engine
Model
Avionics
$3.1
5.1
6.9
8.2
9.0
9.2
12.5
17.6
21.7
Pratt & Whitney Williams International Williams International Williams International Williams International Pratt & Whitney Pratt & Whitney Pratt & Whitney Rolls-Royce PW615F FJ44-1AP FJ44-3A-24 FJ44-3A FJ44-4A PW535B PW545C PW306C AE3007C1 Garmin G1000
Collins Pro Line 21
Collins Pro Line 21
Collins Pro Line 21
Collins Pro Line 21
Collins Pro Line 21
Collins Pro Line 21
Honeywell Primus EPIC
Honeywell Primus 2000
946*
869*
$2.0
2.1
Pratt & Whitney
Pratt & Whitney
PT6A-114A
PT6A-114A
Garmin G1000
Garmin G1000
400*
696*
610*
927*
915*
690*
630*
1,395*
1,250*
$0.1
0.3
0.3
0.4
0.4
0.5
0.6
0.6
0.6
Teledyne Continental Textron Lycoming Textron Lycoming Textron Lycoming Textron Lycoming Textron Lycoming Textron Lycoming Teledyne Continental Teledyne Continental O-200D IO-360-L2A IO-360-L2A IO-540-AB1A5 TIO-540-AK1A IO-540-AC1A5 TIO-540-AJ1A IO-550-N TSIO-550-C Garmin G300
Garmin G1000
Garmin G1000
Garmin G1000
Garmin G1000
Garmin G1000
Garmin G1000
Garmin G1000
Garmin G1000
2010 Business Jet Price Points
Pre-owned Citations for Sale as a Percent of Fleet
Citation product line
Competition
Legacy 600 $27.5
Challenger 300 $24.3
Gulfstream G200 $23.3
Hawker 4000 $22.0
Citation X $21.7
Citation Sovereign $17.6
Hawker 900XP $15.8
Learjet 60XR $13.9
Hawker 750 $13.0
Learjet 45XR $12.8
Citation XLS+ $12.5
Learjet 40XR $10.6
Citation Encore+ $9.2
Citation CJ4 $9.0
Citation CJ3 $8.2
Phenom 300 $8.1
Hawker 400XP $7.6
Emivest SJ30-2 $7.3
Citation CJ2+ $6.9
Premier 1A $6.6
Citation CJ1+ $5.1
Phenom 100 $3.8
Citation Mustang $3.1
(Dollars in millions)
Gulfstream G150 $15.1
20%
15%
10%
5%
96
Source: B&CA and Cessna estimates
97
98
99
00
01
02
03
04
05
06
$667
$587
$721
$666
$606
$562
$502
$443
$381
$354
$330
Number of Units
$302
(Dollars in millions)
$270
Number of Citations in Service by Age Distribution
$229
Aftermarket Sales
$218
07
08
09
10
Source: AMSTAT and Cessna estimates
■ > 10 Years
■ 6 – 10 Years
■ <– 5 Years
6,000
4,000
2,000
96
97
98
99
00
01
02
03
04
05
06
07
08
09
96
10
97
98
99
00
01
02
03
04
05
06
07
08
09
10
Strategic Steps Forward
> I nvest in new product development and block point changes to current models.
>C
reate a globally competitive cost profile.
> L ead every segment in which we participate: light and midsize business jets,
single-engine utility turboprop and single-engine piston aircraft.
>B
olster long-term customer loyalty by providing differentiated and consistently
> E xtend the CitationAir brand by offering complete private aviation lift solutions.
> L everage and ensure alignment of key business and continuous improvement
processes (e.g. Lean, Six Sigma and Operations Excellence).
> F oster an environment that attracts, develops and retains high performing talent.
> E xtend the Cessna brand in key international geographies.
superior aftermarket solutions around the world.
Key Data
Cessna
(Dollars in millions)
2010
2009
2008
2007
2006
Units sold:
Mustang
Light/Mid
Total Business jets 1
Caravans
Single-engine Piston
Backlog, excluding CitationAir
73
106
179
95
261
$ 2,928
125
164
289
97
355
$ 4,893
101
366
467
101
733
$14,530
45
342
387
80
807
$12,583
1
306
307
67
865
$8,467
Revenues
Segment profit (loss) 2
Segment profit margin
Total assets
Capital expenditures
Depreciation and amortization
$ 2,563
$ (29)
(1.1)%
$ 2,294
$
47
$ 106
$ 3,320
$ 198
6.0%
$ 2,427
$
65
$ 115
$ 5,662
$ 905
16.0%
$ 2,955
$ 285
$ 105
$ 5,000
$ 865
17.3%
$ 2,459
$ 163
$
86
$4,156
$ 645
15.5%
$2,091
$ 120
$ 78
1 In 2008, units sold include the sell-through of one fractional unit at CitationAir. Units sold in 2007 exclude one CitationAir delivery in which the fractional units were not sold as of the end of the year. Units sold in 2006
exclude two CitationAir deliveries in which the fractional units were not sold as of the end of the year. 2 Segment profit for manufacturing segments excludes interest expense, certain corporate expenses and special charges.
In 2009 segment profit includes a $50 million pretax gain on the sale of the assets of CESCOM, Cessna’s aircraft maintenance tracking service line.
Textron 2010 Fact Book
3
BELL HELICOPTER
Bell Helicopter is a leader in vertical takeoff and landing aircraft
for commercial and military applications, and the pioneer of the
revolutionary tiltrotor aircraft.
31% Bell’s share of
Textron 2010 revenues
Fast Facts
> Approximate revenues by region: U.S.: 73%, Asia Pacific: 9%, Latin America and
> Approximately 13,000 Bell Helicopter aircraft are flying in more than 140 countries.
Mexico: 7%, Middle East: 4%, Canada: 4%, Europe: 2%, and Africa: 1%.
> At the end of 2010, Bell had approximately 10,200 employees, of which 18.5% were
located outside the US.
> Worldwide service network of more than 120 strategically located Bell owned service
facilities and independent service centers.
> Major facilities are located in Fort Worth, Texas; Amarillo, Texas; Corpus Christi,
> Ranked #1 in customer service and support by Professional Pilot magazine for 17
Texas; Ozark, Alabama; Bristol, Tennessee; and Mirabel, Quebec, Canada.
Sales
> One third of the world fleet carry the Bell Helicopter brand.
consecutive years and by Aviation International News for five consecutive years.
Commercial Revenue by Region
Commercial: 38%
Military by Branch*
38%
Commercial
3% Other
8% Air Force
10% Army
62%
Military
By Product/Service
Commercial by Application
4% Other
9% International
Military
9% Civil Government
Aircraft
09% Foreign Military
Sales/International
44% Commercial
Aircraft
10%
HEMS
16% Parapublic
79% Marines
19% Oil & Gas/Utility
47% Spares &
Support
33% Corporate
Military: 62%
By Product/Serv
7%
Europe
100
80
13%
Africa and
Middle East
39%
5% R&D
North America
other
airforce
18%
Latin America
60
40
20
other Aircraft Int'l Military
100 100
Civil Govtaircraft commercial
80
army
80
marines
60
60
EMS
40
40
Law
20
20
0
0
FMS spares & support
23%
Asia Pacific
25% Spares
Suppor
70% Aircraft
Utility
Corporate
0
* U.S. Military sales only
percent
percent
percent
Major Products
Bell
Helicopter
Description
Light
206L-4 Long Ranger
407 429
Medium
Military
Tiltrotor
First Seating Capacity
Useful
Cruising Maximum
Delivery (Including Pilots) Load (lbs) Speed (kts) Range (nm)
Light single-engine, extended cabin version of the Jet Ranger
Light single-engine, high performance multi-mission helicopter
Light twin-engine helicopter, best-in-class cabin volume
1992
1996
2009
7
7
8
2,123
2,332
2,700
112
133
142
324
330
350
412 EP
Twin-engine with highest dispatch reliability and the lowest hourly cost
1981
15
5,055
122
356
OH-58D Kiowa Warrior
TH-67 Trainer
Huey II
UH-1Y
AH-1Z
Armed Reconnaissance Helicopter for U.S. Army
Military training helicopter
Upgrade of U.S. Army and worldwide UH-1H model Huey
State of the art fully integrated utility and combat support helicopter
State of the art fully integrated weapons system attack helicopter
1986
1993
1995
2006
2006
2
3
15
12
2
2,200
1,321
5,060
6,661
6,300other
114
115
106
158
160
268
374
216
350
380
Bell Boeing V-22 Osprey Military tiltrotor aircraft, being produced in partnership with Boeing
BA609
Commercial tiltrotor aircraft, being developed in partnership with Agusta
1999
—
27
11
25,500
5,512EMS
240
275
1,100
750
100
80
Law
60
Civil
40
corporate
utility
20
0
4
Textron 2010 Fact Book
percent
Commercial Product Price Points
S-92 $21.4
■ Bell
■ Competition
Singles
AW 139 $13.0
S 76C++ $10.6
EC 155B1 $9.2
Bell 412EP $9.1
A 109 Grand $6.4
MD 902 $6.1
EC 145 $6.0
A 109E Power $5.6
Bell 429 $5.2
EC 135 $4.6
AS 355NP $3.2
A 119VFR $3.3
Bell 407 $2.4
EC 130 $2.3
AS 350 B3 $2.2
MD 600N $2.1
Bell 206L-4 $2.1
MD 520N $1.9
AS 350 B2 $1.8
MD 500E $1.7
EC 120 $1.6
Enstrom 480 $1.0
(Dollars in millions)
Twins
Commercial Business
> The primary commercial helicopter applications are Corporate, Oil & Gas, Utility,
> Industry norms envision three to four times original delivery price in aftermarket
Parapublic, Helicopter Emergency Medical Services, and International/Foreign
Military.
service and parts revenues over the nominal 30 – 40 year lifetime of a typical
commercial airframe.
Military Business
> Bell’s broad military product line covers the entire spectrum of missions from training
(TH-67), to armed reconnaissance (OH-58D), to attack / utility (AH-1Z / UH-1Y), and
tiltrotor (V-22) and are very applicable to current conflicts.
> V-22 aircraft deployed in land-based operations in Afghanistan/Operation Enduring
Freedom and Iraq/Operation Iraqi Freedom and sea-based operations in Haiti and the
Horn of Africa have demonstrated excellent in-theater performance.
> AH-1Z Operation Evaluation complete and the program has entered full rate
production. US Marines awarded $546 million contract for 29 aircraft : UH-1Y and
AH-1Z.
> OH-58D is the close air support aircraft of choice and has more than 750,000 +
combat hours.
Strategic Steps Forward
>C
ontinue to scale up production of the V-22 for the U.S. Marine Corps, Air Force
Special Operations Forces and market to other U.S. Department of Defense and
international customers.
>S
uccessfully ramp-up production of the UH-1Y utility helicopter and AH-1Z
attack helicopter.
>S
uccessfully market 429 Light Twin helicopter and field to global customer base.
>P
ursue additional U.S. Government and international military helicopter sales
opportunities.
>S
trengthen the commercial product line by upgrading existing products,
developing derivatives and introducing new models.
>C
ontinue to grow Bell Helicopter’s integrated service and support business
through geographic and service offering expansion.
>D
evelop Bell Helicopter’s global business through local presence, a stronger
sales and marketing network and program capture.
>S
trengthen cost competitiveness through continued improvement in worldwide
manufacturing footprint and modernizing business systems.
Key Data
Bell
(Dollars in millions)
2010
2009
2008
2007
Units sold:
70
60
39
44
U.S. Government
103
141
167
177
Commercial
28
12
—
4
International military
$7,199
$6,903
$6,192
$3,809
Backlog
$3,241
$2,842
$2,827
$2,581
Revenues
$ 427
$ 304
$ 278
$ 144
Segment profit 1
13.2%
10.7%
9.8%
5.6%
Segment profit margin
$2,079
$2,059
$2,167
$1,850
Total assets
$ 123
$ 101
$ 138
$ 78
Capital expenditures
$ 92
$ 83
$ 71
$ 59
Depreciation and amortization
2006
43
153
6
$3,119
$2,347
$ 108
4.6%
$1,596
$ 170
$ 48
1 Segment profit for manufacturing segments excludes interest expense, certain corporate expenses and special charges.
Textron 2010 Fact Book
5
TEXTRON SYSTEMS
Textron Systems is a respected solutions company, addressing key
problems at home and abroad for our Defense and Security customers
by rapidly delivering affordable innovations that work.
19% Textron Systems’ share
of Textron 2010 revenues
Fast Facts
> Approximate revenues by region: U.S.: 86%, Middle East: 7%, Latin America and
> Approximately 2,500 One System Remote Video Terminal units already delivered and
Mexico: 3%, Europe: 2%, Asia Pacific: 1%, and Other: 1%.
fielded.
> Textron Systems has approximately 5,600 employees, of which approximately 1.4%
> Over 3,135 Armored Security Vehicles (ASV) and variants delivered to the U.S. Army
are based outside the U.S.
and International Customers.
> Manufacturing facilities are located in Tustin, CA; New Orleans, LA; Slidell, LA;
> Approximately 5,000 Sensor Fuzed Weapons (SFW) delivered to the U.S. Air Force
Wilmington, MA; Hunt Valley, MD; Williamsport, PA; Goose Creek, SC; Austin, TX;
Richardson, TX; Sterling, VA; Notting Hill, Australia; Hamble, England.
(USAF) with an additional 512 ordered by India and interest in over 1,300 from Saudi
Arabia.
> Approximately 590,000 flight hours and over 135,000 flights logged by the Shadow
> 37,000-plus active Overwatch software licenses across U.S. intelligence agencies,
Tactical Unmanned Aircraft System, primarily in support of combat operations in both
Iraq and Afghanistan.
military branches and unified commands.
> More than 325,000 engines designed and built during Lycoming’s 80 years in aviation
> 117 Shadow Tactical Unmanned Aircraft Systems have been ordered by the U.S.
– over 200,000 of which are still in operation worldwide – more than half of the
world’s piston powered rotary-wing and fixed-wing general aviation fleet.
Army, Army Reserves, Army National Guard, Marine Corps and USSOCOM; Orders
from Sweden, Italy and Australia indicate the growing demand from international
customers.
> Textron Systems’ operational excellence is recognized in industry certifications and
awards, including AS9100, ISO9001:2000, ISO14001, SEI CMMI-SE/SW Level 5,
Lycoming’s Shingo Prize for Operational Excellence , and the U.S. Department of
Defense (DoD) Performance-Based Logistics of the Year award.
Sales
By Product Line
By Military Branch*
100
14% Weapons and Sensors
4% Navy
21% Mission Support
7% Other 80
7% Air Force
100
advanced apps
precision weapons
navy
other
80
force protect
25% Land and Marine
Systems
60
82% Army
40% Unmanned Aircraft
Systems
sit aware
army
40
40
20
20
0
* U.S. Military sales only
Strategic Steps Forward
airforce
60
0
percent
percent
100
advanced apps
precision weapons
80
>C
ontinue to implement and expand solutions for addressing the DoD’s current
>U
tilize our growing vehicle mobility and survivability capabilities to address
and emerging needs for situational awareness, force protection, precision
weapons, force mobility, and related services and support.
emerging domestic and international tactical vehicle requirements, while
continuing to execute on current Armored Security Vehicle (ASV) and Armored
Knight production and support contracts.
force protect
60
sit aware
> E xpand our global presence and customer base to address worldwide demand
40
for Textron Systems’ products and services.
>D
eploy the capabilities and commonalities of our industry-leading lethal and
20
>S
trengthen our position as a leading global supplier of Unmanned Aircraft
Systems (UAS) and associated training, support and services for tactical military
missions and commercial applications by: sustaining and expanding the
Shadow® and Aerosonde® UAS product lines and adding new UAS offerings to
the portfolio; leveraging UAS electronics, software and network capabilities to
expand One System®/ C4ISRT (Command, Control, Communications, Computers,
Intelligence, Surveillance, Reconnaissance and Targeting) products; and
leveraging UAS integration expertise to move into adjacent unmanned systems
applications.
0
percent
> L everage installed base of intelligence and analysis applications to expand into
adjacent product and service areas.
6
Textron 2010 Fact Book
non-lethal area denial and protection systems, such as Scorpion Intelligent
Munitions System, Unattended Ground Sensors (UGS), Tactical RPG Airbag
Protection System (TRAPS), Spider force protection system, and situational
awareness software to provide our customers with optimized, synergistic
solutions.
> E xpand our role as provider of compliant area attack weapons, networked
ground munitions, and compliant systems that minimize risk to noncombatants,
while continuing to leverage our precision weapons expertise and solutions to
meet the demands of today’s complex and ever-changing battlefield.
>C
ontinue to design, build and test aviation engine products with focused efforts
on next generation electronic engine control systems, alternative fuels, and
new applications.
Major Products and Services
Foundation
Growth & Expansion
Unmanned
Aircraft
Systems
New Unmanned Aircraft
System
One System Ground Control Station &
One System Remote Video Terminal
Shadow
Manned Unmanned
Teaming
Next Gen Universal
Ground Control Station
Aerosonde
Land and
Marine
Systems
Unmanned Surface
Vehicle
Ship to Shore Connector
M1117 Armored Security
Vehicle
Landing Craft Air
Cushion
M1117 Armored
Personnel Carrier Mobile
Survivable Vehicle
HMMWV Crew
Protection
Next Generation Armored
Security Vehicle
Weapons
and
Sensors
Area Denial
Spider
Sensor Fuzed Weapon
Unattended Ground
Sensors
Directed Energy
Weapons
Tactical Rocket Propelled
Grenade Airbag
Protection System
Clean Area Weapon
Mission
Support
Multi-source intel
Lycoming Engines
and Factory MRO
Battlespace Awareness & Intel
software
Lycoming Engines –
Integrated
Electronic Engine
Test & Training
PDCue
Light Weight Small
Arms Technology
Key Data
Textron Systems
(Dollars in millions)
Revenues
Segment profit 1
Segment profit margin
Backlog
Total assets
Capital expenditures
Depreciation and amortization
2010
$1,979
$ 230
11.6%
$1,598
$1,997
$ 41
$ 81
2009
$1,899
$ 240
12.6%
$1,664
$1,973
$ 31
$ 85
2008
$1,880
$ 251
13.4%
$2,190
$2,077
$ 34
$ 85
2007
$1,114
$ 174
15.6%
$2,144
$2,370
$ 33
$ 41
2006
$ 790
$ 92
11.6%
$1,126
$ 846
$ 36
$ 16
1 Segment profit for manufacturing segments excludes interest expense, certain corporate expenses and special charges.
Textron 2010 Fact Book
7
INDUSTRIAL
The Industrial segment consists of four businesses that
manufacture and market branded industrial products worldwide.
24% Industrial’s share
of Textron
2010 revenues
Fast Facts
> Approximate revenues by region: Europe: 39%, U.S.: 34%, Asia Pacific: 11%, Latin
America and Mexico: 9%, Canada: 6%, Middle East/Africa: 1%.
> At the end of 2010, Textron’s Industrial segment had approximately 7,500 employees
of which 67% were based outside of the U.S.
> Non-U.S. revenue by business: E-Z-GO (14%), Jacobsen (64%), Greenlee (53%),
> Manufacturing facilities are located in 13 countries: Belgium, Brazil, Canada, China,
Kautex (81%).
the Czech Republic, Germany, Italy, Japan, Mexico, Slovakia, Spain, the United
Kingdom and the United States.
E-Z-GO
Description
E-Z-GO is a leading global light transportation vehicle designer and manufacturer for
golf courses, municipalities, consumers, commercial, government and industrial users,
such as airports, resorts and factories. Products include electric-powered and internal
combustion-powered golf cars and multipurpose utility vehicles in use worldwide.
Jacobsen
Description
Jacobsen offers a comprehensive line of turf-care products for golf courses, sporting
venues, airports and municipalities, as well as commercial and industrial users. Products
include professional turf maintenance equipment and specialized turf-care vehicles.
Greenlee
Description
Greenlee offers the most complete line-up of tools, test equipment and accessories a
wire or cable installer needs to complete the job. Electrical, telecom, industrial,
plumbing and voice/data/video contractors depend on Greenlee to deliver high quality,
innovative solutions that drive workforce efficiency and safety on a daily basis.
Strategic Steps Forward
> Build sales to consumers through new product offerings, particularly in growth areas
such as electrically powered 4x4 vehicles and neighborhood electric vehicles (NEVs).
> Expand retail sales distribution via organic growth of independent dealer network as
well as entry into large national retailers.
> Grow presence in industrial, commercial and government sectors.
> Strengthen performance of golf segment through new product and service offerings
and enhancement of distribution network.
Strategic Steps Forward
> Accelerate new product development.
> Lead with innovative products focused on total cost of ownership.
> Expand sales in developing markets, especially Asia.
> Provide a superior customer experience through our global dealer network.
Strategic Steps Forward
> Accelerate innovative product development focused on enhancing contractor total
cost productivity.
> Drive velocity improvement and simplification in processes and services.
> Continue to outperform the market during the recovery cycle through new products.
Kautex
Strategic Steps Forward
> Expansion in Emerging Markets (e.g. new plant in Romania under construction) and
enhancing of capabilities (e.g. start of local development center in Guangzhou, China).
> Full Serial production of Next Generation Fuel System (NGFS) in North America and
Europe; Introduction of the Second Generation Selective Catalytic Reduction System (SCR).
> Innovative product development: Next Generation Carbon Canister and Hybrid tank
solution to support customer needs.
> Integrated Continuous Improvement approach focused on velocity and simplicity.
Description
Kautex is a leading global system supplier to the automotive industry. The company
develops and produces blow-molded plastic fuel systems, automotive clear vision
systems (windshield and headlamp washer systems), Selective Catalytic Reduction
Systems, engine camshafts, and blow-molded industrial packaging products.
Key Data
Industrial
(Dollars in millions)
Revenues
Segment profit 1
Segment profit margin
Total assets
Capital expenditures
Depreciation and amortization
2010
$2,524
$ 162
6.4%
$1,604
$ 51
$ 72
1 Segment profit for manufacturing segments excludes interest expense, certain corporate expenses and special charges.
8
Textron 2010 Fact Book
2009
$2,078
$ 27
1.3%
$1,623
$ 38
$ 76
2008
$2,918
$ 67
2.3%
$1,788
$ 69
$ 83
2007
$2,825
$ 173
6.1%
$1,916
$ 83
$ 79
2006
$2,611
$ 149
5.7%
$1,839
$ 70
$ 80
FINANCE SEGMENT
The Finance segment provides financing to customers purchasing products
manufactured by Textron Inc. In December 2008, Textron decided to exit the
non-captive portion of our finance business. The Finance segment is comprised of Textron Financial Corporation and three Textron Inc. finance subsidiaries which provide financing through EXIM/EDC funding.
2% Finance’s share
of Textron
2010 revenues
Sources of Funding (as of 12/31/10)
Portfolio Liquidation of $6.2 Billion in 2009/2010
$4.6 Billion
Managed Receivables (Dollars in millions)
5%
EXIM/EDC
7%
Subordinated Debt
$10,821
$3,259
11000
32%
Line of Credit
10125
9250
12%
Securitization
12%
Equity
8375
$675
25%
Long-Term Debt
$486
7%
Due to
Manufacturing group
7500
$396
$191
6625
$480
$708
5750
$4,626
4875
Captive Managed Finance Receivables (as of 12/31/10)
Non-Captive Managed Finance Receivables (as of 12/31/10)
$2.3 Billion
$2.3 Billion
9%
Golf Equipment
11%
Bell
62%
Cessna
4%
Other
5%
Distribution Finance
14%
Structured Capital
18%
Independent
Aviation
YE 2010
Other
Timeshare
Structured
Capital
Captive
Golf
Equipment
Golf
Mortgage/Hotel
Captive
Aviation
Finance
Distribution
Finance
YE 2008
4000
39%
Timeshare
38%
Golf Mortgage/Hotel
Key Data
Textron Finance Segment
(Dollars in millions)
Managed finance receivables 1
Managed and serviced finance receivables 2
Net interest margin 3
Operating and administrative expense as a percentage of
average managed and serviced finance receivables
60 day + delinquency
Nonaccrual %
Allowance for losses, % of finance receivables held for investment
Net charge-offs, % of average finance receivables held for investment 4
Revenues
Segment profit (loss) 5
Total assets
Dividends paid to Textron Inc.
Capital contributions paid to TFC under Support Agreement
2010
$ 4,626
$ 5,405
1.33%
2009
$ 7,055
$ 8,283
2.46%
2008
$10,821
$12,173
4.74%
2007
$11,123
$12,478
5.66%
2006
$10,241
$11,536
5.81%
2.10%
9.17%
16.75%
5.49%
1.81%
361
(294)
7,512
349
270
1.68%
2.59%
4.01%
2.76%
1.00%
723
(50)
9,344
142
625
1.71%
0.43%
0.92%
1.03%
0.45%
875
222
9,383
144
—
1.84%
0.77%
0.90%
1.11%
0.38%
798
210
9,000
89
—
2.50%
9.77%
20.17%
8.13%
2.66%
$ 218
$ (237)
$ 4,949
$ 505
$ 383
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1 Managed finance receivables are owned receivables and receivables that continue to be serviced, but have been sold in securitizations or similar structures, where risks of ownership have been retained to the extent of our
subordinated interests. 2 Managed and serviced finance receivables include participation interests sold to third-party financial institutions without retained credit risk, receivables subject to servicing agreements with third-party
financial institutions and finance receivables of resort developers. 3 Net interest margin represents revenues earned less interest expense on borrowings and operating lease depreciation as a percentage of average net
investment. Average net investment includes finance receivables plus operating leases, less deferred taxes on leveraged leases. 4 Average finance receivables include both finance receivables held for investment and finance
receivables held for sale. 5 Segment profit (loss) represents the measurement used by Textron for evaluating performance and for decision-making purposes. Segment profit (loss) for the Finance segment includes interest
income and expense and excludes special charges.
Textron 2010 Fact Book
9
F I N A N C I A L D ATA 2 0 1 0 – 2 0 0 6 1
(Dollars in millions,
except per share amounts)
2010
Revenues
2009
Q1
Q2
Q3
Q4
Cessna
Bell
Textron Systems
Industrial
Finance
$
Total revenues
$ 2,210 $ 2,709 $ 2,479 $ 3,127
Segment profit Cessna
Bell
Textron Systems
Industrial
Finance
2
Total segment profit
$
$
Segment profit margins
Cessna
Bell
Textron Systems
Industrial
Finance
433 $
618
458
625
76
635 $
823
534
661
56
535 $
825
460
600
59
Year
960 $ 2,563
975
3,241
527
1,979
638
2,524
27
218
$10,525
(24) $
3 $
(31) $
23 $ (29)
74
108
107
138
427
55
70
50
55
230
49
51
37
25
162
(58)
(71)
(51)
(57)
(237)
96 $
161 $
112 $
184
$
553
Q1
Q2
Q3
Q4
$
871 $
670
477
508
86
825 $
628 502 523 71
$
$
136 $
88 $
121 $
130 $
5.9%
Special charges Corporate expenses and other, net
Interest expense, net for the
manufacturing group
Income tax benefit (expense)
(12)
(37)
(10)
(17)
(114)
(35)
(54)
(48)
(190)
(137)
(32)
(35)
(129)
(45)
(42)
(44)
(114)
(40)
(36)
(15)
(35)
(18)
(32)
21
(37)
18
(140)
6
(28)
2
(34)
58
(40)
11 (41)
5
81 $
(48) $
63
43 $
(62) $
$
EPS from continuing
operations – diluted 4
$ (0.01) $
Effective income tax rate
Common stock information 4, 5
Price range : High
Low
Dividends declared per share
Diluted average shares
outstanding (in thousands) 6
(4) $
136.4%
0.27 $ (0.17) $
18.2%
30.4%
0.20
(40.0)%
$
5.4%
92
$
$ 0.30
$
(6.4)%
$10,500 $14,010 $12,395 $10,702
90 $
48 $
32 $
28 $ 198 $ 905 $ 865 $ 645
69
72 79 84 304
278 144 108
52
55 68 65 240
251 174 92
(9)
12 6
18 27
67 173 149
(66)
(99)
(64)
(65)
(294)
(50)
222 210
4.3%
Income (loss) from
continuing operations
2006
Year
11.7%
5.5%
3.9%
3.3%
9.3% 10.7% 12.6% 10.5%
12.4% 11.5% 13.5% 12.9%
(1.9)%
2.4%
1.1%
3.1%
(54.1)% (115.1)% (90.1)% (79.3)%
5.3%
2007
855 $ 3,320 $ 5,662 $ 5,000 $ 4,156
802 2,842
2,827
2,581 2,347
502 1,899
1,880
1,114
790
572 2,078
2,918
2,825 2,611
82
361
723
875
798
Total profit margin
3
5.9%
769 $
742
418
475
122
$ 2,526 $ 2,612 $ 2,549 $ 2,813
(5.5)%
0.5% (5.8)%
2.4% (1.1)%
12.0% 13.1% 13.0% 14.2% 13.2%
12.0% 13.1% 10.9% 10.4% 11.6%
7.8%
7.7%
6.2%
3.9%
6.4%
(76.3)% (126.8)% (86.4)% (211.1)% (108.7)%
4.5%
2008
3.4%
0.18 $ (0.23) $
(4.9)%
4.7%
6 $
4.6%
(60) $
475 $ 1,451 $ 1,578 $ 1,204
6.0% 16.0% 17.3% 15.5%
10.7%
9.8%
5.6%
4.6%
12.6% 13.4% 15.6% 11.6%
1.3%
2.3%
6.1%
5.7%
(81.4)% (6.9)% 25.4% 26.3%
4.5%
10.4%
12.7%
11.3%
(317)
(164)
(526)
(171)
—
(257)
—
(207)
(143)
76
(125)
(305)
(87)
(368)
(90)
(247)
324 $
866 $
660
(73) $
0.02 $ (0.22) $ (0.28) $ 1.29 $ 3.40 $ 2.53
48.3% (220.0)%
7.7%
51.0%
48.6%
29.8%
27.2%
$ 23.46 $ 25.30 $ 21.52 $ 24.18 $ 25.30
$ 17.96 $ 15.88 $ 16.02 $ 19.92 $ 15.88
$ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.08
$ 16.52 $ 14.37 $ 20.99 $ 21.00 $ 21.00 $ 71.69 $ 74.40 $ 49.48
$ 3.57 $ 7.13 $ 8.51 $ 17.55 $ 3.57 $ 10.09 $ 43.60 $ 37.76
$ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.08 $ 0.92 $ 0.85 $ 0.78
273,174 302,397 274,896 308,491 302,555
244,956 264,091 278,429 272,168 262,923 250,338 254,826 260,444
1 In the first quarter of 2009, we sold the HR Textron business, which was in the Textron Systems’ segment, and, in the third quarter of 2008, we completed the sale of our Fluid & Power business, which was in the Industrial
segment. Both of these businesses have been reclassified into discontinued operations, and all periods presented have been recast to reflect this presentation.
2 S egment profit is an important measure used in evaluating performance and for decision-making purposes. Segment profit for manufacturing segments excludes interest expense, certain corporate expenses, and special
charges. The measurement for the Finance segment includes interest income and expense and excludes special charges.
3 S pecial charges include restructuring charges of $99 million, $237 million and $64 million in 2010, 2009 and 2008, respectively, primarily related to severance and asset impairment charges. In addition, in the third quarter of
2010, special charges include a $91 million non-cash pre-tax charge to reclassify a foreign exchange loss from equity to the income statement as a result of substantially liquidating a Finance segment entity. In 2009, special
charges also include a goodwill impairment charge of $80 million in the Industrial segment. In 2008, special charges also include charges related to strategic actions taken in the Finance segment to exit portions of the
commercial finance business, including an impairment charge of $169 million for unrecoverable goodwill and the initial pre-tax mark-to-market adjustment of $293 million related to the designation of a portion of our finance
receivables as held for sale.
4 F or the years and quarters with a loss from continuing operations, the potential dilutive effect of stock options, restricted stock units and shares that could be issued upon the conversion of our 4.50% convertible Senior Notes
and upon the exercise of the related warrants was excluded from the computation of diluted weighted-average shares outstanding as the shares would have an anti-dilutive effect on the loss from continuing operations.
5 Amounts for 2006 have been restated to reflect a two-for-one stock split in 2007.
6D
iluted average shares outstanding assumes the exercise of stock options, restricted stock units, and the shares that could be issued upon the conversion of our 4.50% convertible senior notes and upon the exercise of the
related warrants.
10
Textron 2010 Fact Book
S E L E C T E D F I N A N C I A L S TAT I S T I C S 2 0 1 0 – 2 0 0 6
2010
(Dollars in millions, except where noted and stock-related information)
Income
Statement
Data
Revenues
Segment profit
Special charges
Corporate expenses and other, net
Interest expense, net for the manufacturing group
Income tax benefit (expense)
Effective tax rate
$ 10,525
553
(190)
(137)
(140)
6
(6.4)%
Income (loss) from continuing operations
$
92
Diluted EPS from continuing operations $
0.30
Balance
Sheet Data –
Manufacturing
group
Cash and cash equivalents
Accounts receivable, net
Inventories
Property, plant and equipment, net
Goodwill
Total assets from continuing operations
Total debt
Total liabilities from continuing operations
Shareholders’ equity
$
898
892
2,277
1,932
1,632
10,333
2,302
7,933
2,972
1
Non-GAAP
Net cash provided by operating activities of continuing
Cash Flow operations – GAAP
Calculations – Less: Capital expenditures
Manufacturing
Dividends received from TFC
group 2
Plus: Capital contributions paid to TFC
Proceeds on sale of property, plant and equipment
Voluntary contributions to pension plans
$
730
(270)
(505)
383
4
350
2009
$ 10,500 475 (317)
(164)
(143)
76 (51.0)%
2008
2007
2006
$ 14,010 1,451 (526)
(171)
(125)
(305)
48.6%
$ 12,395 1,578 —
(257)
(87)
(368)
29.8%
$ 10,702
1,204
—
(207)
(90)
(247)
27.2%
$
324 $
866 $
660
$
(73)
$
(0.28)
$
1.29 $
3.40 $
2.53
$ 1,748 894 2,273 1,968 1,622 11,428 3,584 9,445 2,826 $
531 894 3,093 2,088 1,698 10,353 2,569 9,205 2,366 $
471 926 2,536 1,894 1,883 9,859 2,146 7,737 3,507 $
733
817
1,922
1,677
1,018
7,821
1,796
6,563
2,649
$
738 (238)
(349)
270
3
—
$
407 (537)
(142)
625
9
—
$ 1,144 (369)
(135)
—
6
—
$ 1,044
(403) (80)
—
7
—
Free cash flow – Manufacturing group – Non-GAAP
Required contributions to pension plans
$
$
692
67
$
$
424
79
$
$
362 70 $
$
646 50 $
$
568
33
$
759
$
503
$
432 $
696 $
601
Manufacturing cash flow before pension contributions– Non-GAAP
Other Cash
Depreciation and amortization
Flow Items –
Net cash used in acquisitions
Manufacturing Net proceeds from sale of businesses
group
Net change in debt
Dividends paid
Purchases of Textron common stock
Total number of shares purchased (in thousands) 3
Key Ratios
Segment profit margin
Selling and administrative expenses as % of sales
Inventory turns (based on FIFO)
Ratio of income to fixed charges – Manufacturing group
Debt-to-capital (net of cash) – Manufacturing group
Stock-Related
Information
Other
Statistics
362
(57)
—
(1,199)
(22)
—
—
373 —
—
803
(21)
—
—
360 (109)
—
386
(284)
(533)
11,646 282 (1,092)
(14)
256 (154)
(304)
5,884 237
(338)
8
(252)
(244)
(761)
17,148
5.3%
11.7%
2.7x
3.67x
32%
4.5%
12.8%
2.6x
2.29x
39%
10.4%
11.4%
3.7x
4.95x
46%
12.7%
12.4%
3.9x
9.50x
32%
11.3%
12.8%
4.1x
7.22x
29%
Stock price at year-end
Dividend payout ratio 4
Dividends declared per share
$ 23.64
26%
$ 0.08
$ 18.81
(29)%
$ 0.08
$ 15.37 71%
$ 0.92 $ 71.62 25%
$ 0.85 $ 46.88
31%
$ 0.78
Research and development
Number of employees at year-end
Average revenues per employee (in thousands)
$
702
32,000
$
327
$
844
32,000
$
293
$
$
$
966 43,000
$
342
804
42,000
$
331
771
38,000
$
301
1 F or the years and quarters with a loss from continuing operations, the potential dilutive effect of stock options, restricted stock units and shares that could be issued upon the conversion of our 4.50% convertible Senior Notes and
upon the exercise of the related warrants was excluded from the computation of diluted weighted-average shares outstanding as the shares would have an anti-dilutive effect on the loss from continuing operations.
2 In 2011, we changed the definition of our non-GAAP cash flow measure to exclude all pension contributions. Prior periods have been recast to conform to this presentation.
3 Amounts for 2006 have been restated to reflect a two-for-one stock split in 2007.
4 Dividend payout ratio: Dividends declared/diluted earnings per share from continuing operations.
Textron 2010 Fact Book
11
R E T U R N O N I N V E S T E D C A P I TA L ( R O I C )
ROIC is a non-GAAP financial measure that our management believes is useful to
investors as a measure of performance and of the effectiveness of the use of capital in
our operations.
We measure performance based on our return on invested capital (ROIC), which is
calculated by dividing ROIC income by average invested capital. ROIC income includes
income from continuing operations and adds back after-tax amounts for 1) interest
expense for the Manufacturing group, 2) special charges, 3) gains or losses on the sales
of businesses or product lines and 4) operating results related to operations
discontinued during the period.
At the beginning of the year, our invested capital represents total shareholders’ equity
and Manufacturing group debt, less its cash and cash equivalents and the loan to the
Finance group. At the end of the year, we typically adjust ending invested capital for
significant events unrelated to our normal operations for the year such as acquisitions,
dispositions and special charges. In 2006, we also adjusted invested capital to eliminate
the impact of the adoption of a new accounting standard for pension plan accounting.
T O TA L T E X T R O N
(Dollars in millions)
2010
2009
2008
2007
2006
92
88
153
—
2
$ (73)
91
230
2
—
$ 324 80
446
42
—
$ 866 56
—
49
(2)
$ 660
58
—
46
—
ROIC Income
$ 335 $ 250
$ 892 $ 969
$ 764
Invested Capital at end of year
Total shareholders’ equity
Total Manufacturing group debt 2
Loan to Finance group
Cash and cash equivalents for Manufacturing group
Net cash used by Manufacturing group for acquisitions
Eliminate special charges, net of income taxes
Eliminate net cash proceeds from sale of business
Eliminate impact of gain on sale of businesses/product lines
Adjustment to shareholders’ equity related to adoption of
new accounting standard
$2,972
2,302
(315)
(898)
(57)
153
—
—
$2,826
3,584 (413)
(1,748)
—
230
288
(8)
$2,366
2,569
(133)
(531)
(109)
446
380
(111)
$3,507
2,146
—
(471)
(1,092)
—
—
—
$2,649
1,800
—
(733)
(338)
—
644
—
ROIC Income
Income from continuing operations
Interest expense for Manufacturing group
Special charges and gain on sale of businesses/product lines
Operating results of business units in discontinued operations, net of taxes 1
Other adjustments
Invested Capital at end of year, as adjusted
Invested Capital at beginning of year
Average Invested Capital
Return on Invested Capital
1 Includes HR Textron (2009) and Fluid & Power (2008).
2 Includes amounts classified as discontinued operations for 2006.
12
Textron 2010 Fact Book
$
—
—
—
—
647
4,157
4,249
4,759
4,271
4,877
5,184
4,090
3,716
4,669
4,412
$4,203
$4,515 $5,031
$3,903
$4,541
8.0%
5.5%
17.7%
24.8%
16.8%
S T O C K I N F O R M AT I O N
Stock Exchange Listings
Capital Stock
Ticker Symbol – TXT
(as of January 1, 2011)
Common Stock
New York Stock Exchange
Chicago Stock Exchange
Common Stock: par value $0.125 per share
500,000,000 shares authorized
275,739,000 shares outstanding
Transfer Agent and Registrar
Dividends
American Stock Transfer & Trust Company, LLC
Operations Center
6201 15th Ave
Brooklyn, NY 11219
(866) 621-2790
www.amstock.com
Email: info@amstock.com
Common Stock
Record dates: March 12, June 11, September 10 and December 10, 2010
Payable dates: April 1, July 1, October 1, 2010 and
January 1, 2011
Stock Splits
Record dates: December 17, 1965; August 11, 1967;
May 11, 1987; May 9, 1997 and August 3, 2007
Distribution dates: January 1, 1966; September 1, 1967;
June 1, 1987; May 30, 1997 and August 24, 2007
General Information
5%
Foreign Institutions
11%
Individual & Other
72%
U.S. Institutions
12%
Employees/Directors/
Officers
Design: www.inergygroup.com
This Fact Book is one of several sources of information available to
Textron Inc. shareholders and the investment community. To receive a copy
of Textron’s Forms 10-K, 10-Q, Proxy Statement or Annual Report, visit our
web site at www.textron.com, call (888) TXT-LINE or send your written
request to Textron Investor Relations at the address listed on the outside
cover. For the most recent company news and earnings press releases, visit
our web site at www.textron.com or call (888) TXT-LINE.
Share Ownership (estimated as of 1/1/2011)
Textron 2010 Fact Book
13
BUSINESS DIRECTORY
World Headquarters
Textron Financial
Contact Information
Textron Inc.
40 Westminster Street
Providence, RI 02903
(401) 421-2800
www.textron.com
Textron Financial Corporation
40 Westminster Street
Providence, RI 02903
(401) 621-4200
www.textronfinancial.com
Bell
Industrial
Investors
Douglas R. Wilburne
Vice President, Investor Relations
dwilburne@textron.com
(401) 457-3606
(401) 457-2220 (fax)
Bell Helicopter
P.O. Box 482
Ft. Worth, TX 76101-0482
(817) 280-2011
www.bellhelicopter.textron.com
Kautex
Kautexstrasse 52
53229 Bonn
Germany
011-49-228-4880
www.kautex.com
Textron Systems
Textron Systems
201 Lowell Street
Wilmington, MA 01887
(978) 657-5111
www.systems.textron.com
Cessna
Cessna Aircraft Company
P.O. Box 7706
Wichita, KS 67277-7706
(316) 517-6000
www.cessna.com
Greenlee
4455 Boeing Drive
Rockford, IL 61109
(815) 397-7070
www.greenlee.com
E-Z-GO
1451 Marvin Griffin Road
Augusta, GA 30906
(706) 798-4311
www.ezgo.com
Jacobsen
11108 Quality Drive
Charlotte, NC 28273
(704) 504-6600
www.jacobsen.com
Rebecca C. Rosenbaum
Manager, Investor Relations
rrosenbaum@textron.com
(401) 752-5165
(401) 457-2220 (fax)
Banks and Rating Agencies
Mary F. Lovejoy
Vice President and Treasurer
mlovejoy@textron.com
(401) 457-6009
(401) 457-3533 (fax)
Media
Adele J. Suddes
Vice President, Communications
asuddes@textron.com
(401) 752-3801
(401) 457-3598 (fax)
Karen Gordon Quintal
Director, External Communications &
Brand Management
kgordon@textron.com
(401) 457-2362
(401) 457-3598 (fax)
Legal Entities: Avco Corporation (“Avco”) is a wholly owned subsidiary of Textron Inc. Bell Helicopter Textron Inc. (“Bell Helicopter”) is a wholly owned subsidiary of Textron Inc. Bell Helicopter
consists of several subsidiaries and operating divisions. The Textron Systems group of businesses includes AAI Unmanned Aircraft Systems, AAI Test & Training, and AAI Logistics & Technical
Services, each of which is an unincorporated division of AAI Corporation; Overwatch Systems Ltd.; Textron Systems Corporation (d/b/a Textron Defense Systems); Lycoming Engines, an operating division of Avco Corporation; and the Textron Marine & Land Systems Division of Textron Inc. AAI Corporation, Overwatch Systems Ltd., and Textron Systems Corporation are subsidiaries
of Avco Corporation, a wholly-owned subsidiary of Textron Inc. Cessna Aircraft Company (“Cessna”) is a wholly owned subsidiary of Textron Inc. Kautex conducts its business through a number
of separately incorporated companies and other operations. The Greenlee business unit consists of various legal entities, including but not limited to Greenlee Textron Inc.,a wholly owned subsidiary of Textron Inc. Textron Financial Corporation (“Textron Financial”) is a wholly owned subsidiary of Textron Inc. Textron Financial consists of several subsidiaries and operating divisions.
Trademarks: AAI; AH-1Z; BA609; Bell/Agusta Aerospace Company, LLC; Bell Helicopter; Bravo; Cadillac Gage; Caravan; Caravan 675; Caravan Amphibian; Cessna; Cessna 350; Cessna 400;
Citation; Citation Encore+; CitationAir; CitationAir Jetcard; Citation TEN; Citation X; Citation XLS+; Citation Sovereign; CJ1+; CJ2+; CJ3; CJ4; CLAW; Corvalis; Eclipse; Excel; E-Z-GO; Fly Smart.
Fly Bell; Grand Caravan; Greenlee; H-1; Huey II; IE2; Kautex; Kiowa Warrior; Klauke; Lycoming; M1117 ASV; McCauley; Mustang; NGFS; Next Generation Fuel System; Overwatch; Paladin;
PDCue; Power Advantage; Progressive; ProParts; Rothenberger LLC; RXV; Sensor Fuzed Weapon; SHADOW; Sovereign; SkyBOOKS; SkyPLUS; SkyCatcher; Skyhawk; Skyhawk SP; Skylane; ST
4X4; Stationair; Super Cargomaster; SuperCobra; SYMTX; TDCue; Tempo; Textron; Textron Defense Systems; Textron Financial Corporation; Textron Global Technology Center; Textron Marine &
Land Systems; Textron Systems; Turbo Skylane; Turbo Stationair; UAV SYSTEMS SPECIALIST; UH-1Y; US Helicopter; V-22 Osprey; 2FIVE; 429
Certain statements in this Fact Book and other oral and written statements made by us from time to time are “forward-looking statements” which may describe strategies, goals, outlook or other non-historical
matters, or project revenues, income, returns or other financial measures. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our
actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements.
Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In addition to those factors described in our
Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q under “Risk Factors”, among the factors that could cause actual results to differ materially from past and projected future results are the
following:
• changing priorities or reductions in the U.S. Government defense budget, including those related to ongoing military operations in foreign countries;
• changes in worldwide economic and political conditions that impact demand for our products, interest rates and foreign exchange rates;
• our ability to perform as anticipated and to control costs under contracts with the U.S. Government;
• the U.S. Government’s ability to unilaterally modify or terminate its contracts with us for the U.S. Government’s convenience or for our failure to perform, to change applicable procurement and accounting
policies, and, under certain circumstances, to suspend or debar us as a contractor eligible to receive future contract awards;
• changes in international funding priorities, foreign military budget constraints and determinations, and government policies on the export and import of military and commercial products;
• our Finance segment’s ability to maintain portfolio credit quality and to realize full value of receivables and of assets acquired upon foreclosure of receivables;
• Textron Financial Corporation’s (“TFC”) ability to maintain certain minimum levels of financial performance required under its committed bank line of credit and under Textron’s support agreement with TFC;
• our Finance segment’s access to financing, including securitizations, at competitive rates; performance issues with key suppliers, subcontractors and business partners;
• legislative or regulatory actions impacting our operations or demand for our products;
• the ability to control costs and successful implementation of various cost-reduction programs;
• the efficacy of research and development investments to develop new products and unanticipated expenses in connection with the launching of significant new products or programs the timing of new
product launches and certifications of new aircraft products;
• the extent to which we are able to pass raw material price increases through to customers or offset such price increases by reducing other costs;
• increases in pension expenses and employee and retiree medical benefits;
• uncertainty in estimating reserves, including reserves established to address contingent liabilities, unrecognized tax benefits, and potential losses on TFC’s receivables;
• difficult conditions in the financial markets that may adversely impact our customers’ ability to fund or finance purchases of our products; and
• continued volatility in the economy resulting in a prolonged downturn in the markets in which we do business.