Flying high: thanks to Boeing's job modification initiative, the company now enjoys a tenfold return on its injury reduction investments. It's also enjoying big boosts in productivity and employee-employer relations

Risk & Insurance, May, 2004 by Dan McCue

Risk strategies: The company enters into interest rate swap agreements or interest rate locks with commercial and investment banks primarily to manage interest rates associated with the company's finance agreements; the hedges used by the company are transaction driven and are directly related to a particular asset, liability or transaction for which a commitment is in place

GENERAL DYNAMICS CORP. Falls Church, Va.

General Dynamics is a leader in business aviation, mission-critical information systems and technologies, shipbuilding and marine systems, and land and amphibious combat systems. The company is a leading supplier of sophisticated defense systems to the United States and its allies General Dynamics has four main business segments: aerospace, combat systems, information systems and technology and marine systems.

Chief risk executive: John Wethern, Director, Risk Management

CEO: Nicholas D. Chabraja

CFO: Michael J. Mancuso

Board audit chair: James R. Mellor

Total revenue: $16,617.0 million

Net income: $1,004.0 million

Number of employees: 54,000

Primary broker: Withheld

Captive: No

Risk exposures: Termination of government contracts due to unilateral government action; the ability to perform fixed-price contracts within estimated costs; performance issues with key suppliers and subcontractors: reliance on a large fleet customer for a significant portion of the firm's aircraft contracts backlog and the majority of the options backlog

Risk strategies: The company principally uses foreign currency forward contracts from time to time to hedge the price risk associated with firmly committed and forecasted foreign-denominated payments, receipts and intercompany transactions related to its ongoing business and operational financing activities

TEXTRON INC. Providence, R.I.

Founded in 1923, Textron Inc. is one of America's largest multi-industry companies. Familiar brand names in our family of companies include: Bell Helicopter, Cessna Aircraft and Greenlee, among others. Many Risk & Insurance readers may know Textron best for its E-Z-GO subsidiary, which produces top-selling golf carts as well as many of the turf maintenance products that keep their favorite golf courses in tip-top shape.

Chief risk executive: Michael Harrington, Director, Risk Finance

CEO: Lewis B. Campbell

CFO: Theodore R. (Ted) French

Board audit chair: Paul E. Gagne

Total revenue: $9,859.0 million

Net income: $259.0 million

Number of employees: 49,000

Primary broker: Withheld

Captive: Westminster Insurance Co. (R.I.)

Risk exposures: Changes in worldwide economic and political conditions that impact interest and foreign exchange rates; work stoppages and strikes at key facilities of Textron or Textron's key customers or suppliers; government funding and program approvals affecting products being developed or sold under government programs; the timing of certifications of new aircraft products

Risk strategies: Textron enters into interest rate swap agreements to mitigate its exposure to interest rates changes by converting certain of its fixed rate receivables and debt issues to floating rates; to manage the volatility associated with foreign currency exchange rates, Textron uses forward exchange contracts and purchased options with maturities of no more than 18 months