Textron Inc. Annual Report • 2013 2
PART I
Item 1. Business
Textron Inc. is amulti-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to
provide customerswith innovative products and services around theworld. We have approximately 32,000 employeesworldwide.
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.
We conduct our business through five operating segments: Cessna, 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 theConsolidated Financial Statements on pages 75 through 76 of thisAnnual Report on Form 10-K. The following description
of our business should be read in conjunctionwith “Management’sDiscussion andAnalysis of Financial Condition andResults of
Operations” on pages 18 through 37 of this Annual Report on Form 10-K. Information included in this Annual Report on Form
10-K refers toour continuingbusinesses unless otherwise indicated.
CessnaSegment
Cessna is theworld’s leading general aviation company based on unit sales with two principal lines of business: aircraft sales and
aftermarket services. Aircraft sales include Citation jets, Caravan single-engine utility turboprops and single-engine utility and
high-performance piston aircraft. Aftermarket services include parts,maintenance, inspection and repair services. Revenues in the
Cessna segment accounted for approximately 23%, 25% and 26% of our total revenues in 2013, 2012 and 2011, respectively.
Revenues forCessna’s principal lines of businesswere as follows:
(Inmillions)
2013
2012
2011
Aircraft sales
$ 1,868 $ 2,318 $ 2,263
Aftermarket
916
793
727
$ 2,784 $ 3,111 $ 2,990
The family of jets currently produced by Cessna includes the Mustang, CitationM2, Citation CJ2+, Citation CJ3, Citation CJ4,
CitationXLS+ and the newCitation Sovereign+. The newCitationX+, recently verified by the FAA as the fastest civilian jet in
theworld, is expected to be certified in early 2014. In addition, Cessna is developing the Citation Latitude, amidsize business jet
scheduled for first flight in 2014 and expected to enter into service in 2015, as well as the Citation Longitude, a super midsize
business jet expected to enter into service in2017.
The Cessna Caravan is the world’s best-selling utility turboprop. Caravans are 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. Cessna also offers a single-engine piston product line that includes the Skyhawk SP,
Stationair and the new high performance TTx which we began delivering during 2013. The Turbo Skylane JT-A, Cessna’s first
Jet-A fueledpiston aircraft, is expected tobe certified and tobegindelivering in2014.
The Citation family of aircraft currently is supported by 15 Citation Service Centers owned or operated by Cessna, two of which
are co-located with Bell Helicopter, along with authorized independent service stations and centers located in more than 25
countries throughout theworld. Cessna-owned ServiceCenters provide customerswith 24-hour service andmaintenance. Cessna
also provides around-the-clock parts support for Citation aircraft. Cessna offers an array of service options for Citation aircraft,
known as ServiceDirect®, which delivers service capabilities directly to customer locationswith aMobile ServiceUnit fleet of 22
vehicles in the United States, Canada and Europe. Cessna Caravan and single-engine piston customers receive product support
through independently owned service stations and around-the-clock parts support throughCessna.
Cessnamarkets its products worldwide through its own sales force, as well as through a network of authorized independent sales
representatives. Cessna has several competitors domestically and internationally in various market segments. Cessna’s aircraft
compete with other aircraft that vary in size, speed, range, capacity and handling characteristics on the basis of price, product
quality and reliability, direct operating costs, product support and reputation.
