E-Z-GO 1998 Annual Report Download - page 59

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Geographic Data
Presented below is selected financial information by geographic area of Textron’s
operations:
Property, Plant and
(In millions)
Revenues (2) Equipment (3)
1998 1997 1996 1998 1997 1996
United States $6,291 $5,550 $5,097 $1,466 $1,232 $1,176
Latin America and Mexico 634 447 275 84 40 21
Canada 589 640 684 115 92 55
Germany 575 458 216 205 138 48
France 332 301 235 82 68 71
Asia and Australia 309 447 425 333
United Kingdom 273 209 123 171 71 58
Other 680 631 451 79 126 27
$9,683 $8,683 $7,506 $2,205 $1,770 $1,459
Notes:
(1) Amortization is principally amortization of goodwill.
(2) Revenues are attributed to countries based on the location of the customer.
(3) Property, plant and equipment is based on the location of the asset.
Revenues include sales to the U.S. Government of $1.1 billion, $1.0 billion and $1.0 billion
in 1998, 1997 and 1996, respectively and sales of $1.3 billion, $1.1 billion and $0.9 billion in
1998, 1997 and 1996, respectively to DaimlerChrysler AG.
To enhance the competitiveness and profitability of its core businesses, Textron
recorded a pretax charge of $87 million in the second quarter of 1998 ($54 million after-
tax or $.32 per diluted share). This charge was recorded based on the decision to exit
several small, nonstrategic product lines in Automotive and the former Systems and
Components divisions which did not meet Textron’s return criteria, and to realign certain
operations in the Industrial segment. The pretax charges associated with the Automotive
and Industrial segments were $25 million and $52 million, respectively. The charge also
included the cost of a litigation settlement of $10 million related to the Aircraft segment.
Severance costs for approximately 1,800 personnel were included in special charges and
are based on established policies and practices. The provision does not include costs
associated with the transfer of equipment and personnel, inventory obsolescence, or
other normal operating costs associated with the realignment actions. Approximately 650
personnel had been terminated by the end of 1998. Most of the remaining terminations
are expected to be completed by the end of 1999.
The following table summarizes the spending associated with the 1998 programs
(excluding the litigation settlement):
Asset Severance
(In millions)
impairments costs Other Total
Initial charge $ 28 $40 $ 9 $ 77
Utilized in 1998 (28) (8) (1) (37)
Balance January 2, 1999 $ – $32 $ 8 $ 40
18. Included in accrued liabilities at the end of 1998 and 1997 were the following:
(In millions)
January 2, 1999 January 3, 1998
Salary, wages and employer taxes $ 226 $170
Customer deposits 195 137
Other 753 546
Total accrued liabilities $1,174 $853
Other
Information –
Textron
Manufacturing
Current
Liabilities
1998 TEXTRON ANNUAL REPORT 55