Finance

<1%

Finance’s share of Textron 2014 revenues

The Finance segment provides financing to customers purchasing products manufactured by Textron Inc. Textron Financial Corporation and its consolidated subsidiaries comprise the Finance segment.

Key Data

(Dollars in millions) 2014 2013 2012 2011 2010
Finance
Finance receivables held
for investment1
$1,254 $1,483 $1,934 $2,477 $4,213
Finance receivables held for sale1 $35 $65 $140 $418 $413
Total finance receivables $1,289 $1,548 $2,074 $2,895 $4,626
60 Day + delinquency2 4.55% 5.39% 4.65% 6.70% 9.77%
Nonaccrual %2 6.46% 7.08% 7.39% 12.96% 20.17%
Debt to shareholders’ equity 4.75x 6.01x 4.74x 4.78x 6.41x
Revenues $103 $132 $215 $103 $218
Segment profit (loss)3 $21 $49 $64 $(333) $(237)
Total assets $1,529 $1,725 $2,322 $3,213 $4,949
Dividends paid to
Textron Inc.
$— $175 $345 $179 $505
Capital contributions paid to
Finance group
$— $1 $240 $182 $383
  1. In December 2008, Textron began a process to exit the non-captive portion of its finance business.
  2. Improvement in delinquency statistics in 2011 was primarily due to the transfer of the remaining Golf Mortgage portfolio from held for investment to the held for sale classification, along with the resolution of several Timeshare accounts.
  3. 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 along with intercompany interest income and expense. In 2011, segment profit (loss) includes a $186 million initial mark-to-market adjustment for remaining finance receivables in the Golf Mortgage portfolio that were transferred to the held for sale classification.
Sources of Funding
  • EXIM/EDIC 34%
  • Long-Term Debt 18%
  • Subordinated Debt 23%
  • Equity 17%
  • Securitization 8%
Finance Receivables
  • Textron Aviation 60%
  • Bell Helicopter 19%
  • Non-Captive 12%
  • Independent Aviationy 8%
  • Golf Equipment 1%

The Finance segment provides financing to customers purchasing products manufactured by Textron, which includes Textron Aviation aircraft and Bell helicopters, such as those displayed below.

Cessna Citation X+

Beechcraft King Air 350i

Bell 412™

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