E-Z-GO 2002 Annual Report Download - page 53

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The effect on net income of the transitional impairment charge and of excluding goodwill amortization
expense is presented below:
(In millions, except per share data) 2002 2001 2000
Income before cumulative effect of change in
accounting principle $ 364 $ 166 $ 277
Add back: amortization* — 88 92
Adjusted net income before cumulative effect of change in
accounting principle 364 254 369
Cumulative effect of change in accounting principle* (488) — (59)
Adjusted net income (loss) $ (124) $ 254 $ 310
Basic earnings per share:
Income before cumulative effect of change in
accounting principle $ 2.62 $ 1.17 $ 1.92
Add back: amortization* — .63 .64
Adjusted net income before cumulative effect of change in
accounting principle 2.62 1.80 2.56
Cumulative effect of change in accounting principle* (3.52) — (.41)
Adjusted income (loss) per share - basic $ (0.90) $ 1.80 $ 2.15
Diluted earnings per share:
Income before cumulative effect of change in
accounting principle $ 2.60 $ 1.16 $ 1.90
Add back: amortization* — .62 .63
Adjusted net income before cumulative effect of change in
accounting principle 2.60 1.78 2.53
Cumulative effect of change in accounting principle* (3.48) — (.41)
Adjusted income (loss) per share - diluted $ (0.88) $ 1.78 $ 2.12
*Net of income taxes
All of Textron’s acquired intangible assets are subject to amortization and are comprised of the following:
December 28, 2002 December 29, 2001
Weighted
Average
Amortization Gross Gross
Period Carrying Accumulated Carrying Accumulated
(Dollars in millions) (in years) Amount Amortization Net Amount Amortization Net
Trademarks 30 $ 61 $ 5 $ 56 $ 61 $ 3 $ 58
Customer base 12———47 839
Patents 8 17 6 11 17 4 13
Workforce 9 — — — 20 7 13
Non-compete 3 10 7 3 10 3 7
Other 5 16 3 13 14 — 14
$104 $ 21 $ 83 $ 169 $ 25 $ 144
Amortization expense totaled $11 million and $17 million in 2002 and 2001, respectively. Amortization
expense for fiscal years 2003, 2004, 2005, 2006, and 2007 is estimated to be approximately $10 million,
$6 million, $6 million, $4 million and $4 million, respectively.
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