E-Z-GO 2002 Annual Report Download - page 63

December 28, December 29,
(In millions) 2002 2001
Deferred tax assets:
Self insured liabilities, (including environmental) $ 94 $ 110
Deferred compensation 140 140
Obligation for postretirement benefits 3 44
Investment securities 24 9
Allowance for credit losses 63 49
Amortization of goodwill and other intangibles 22 30
Non-U.S. net operating loss carryforwards 37 34
Other, principally timing of other expense deductions 230 270
Total deferred tax assets $ 613 $ 686
Valuation allowance for deferred tax assets (26) (24)
$587 $ 662
Deferred tax liabilities:
Textron Finance transactions, principally leasing $ (390) $ (387)
Fixed assets, principally depreciation (146) (150)
Inventory (32) (59)
Currency translation adjustment (21) (29)
Total deferred tax liabilities (589) (625)
Net deferred tax (liability) asset $ (2) $ 37
At December 28, 2002 and December 29, 2001, Textron had non-U.S. net operating loss carryforwards
for income tax purposes of $111 million and $99 million, respectively, of which $58 million and $70 mil-
lion can be carried forward indefinitely and the balance expires at various dates through 2013. A valua-
tion allowance at December 28, 2002 and December 29, 2001, of $26 million and $24 million, respec-
tively, has been recognized to offset the related deferred tax assets due to the uncertainty of realizing
the benefits of the loss carryforwards.
Deferred income taxes have not been provided for the undistributed earnings of foreign subsidiaries,
which approximated $618 million at the end of 2002. Management intends to reinvest those earnings for an
indefinite period, except for distributions having an immaterial tax effect. If foreign subsidiaries’ earnings
were distributed, 2002 taxes, net of foreign tax credits, would be increased by approximately $89 million.
Goodwill,
Restructuring Expense Intangible and Total
Severance Facility and Fixed Asset Investment Special
(In millions) Costs Other Write-downs Total Impairments Charges
2002
Aircraft $ 26 $ — $ 2 $ 28 $ — $ 28
Fastening Systems 12 2 4 18 — 18
Industrial Products 13 2 19 34 — 34
Industrial Components 6129—9
Finance ——————
Corporate 1 — — 1 38 39
$58 $ 5 $27 $90 $38 $128
2001
Aircraft $ 6 $ — $ — $ 6 $ — $ 6
Fastening Systems 22 2 18 42 2 44
Industrial Products 16 1 3 20 317 337
Industrial Components 24 — 7 31 — 31
Finance 2 1 — 3 — 3
Corporate 7 — — 7 9 16
$77 $ 4 $28 $109 $ 328 $ 437
2000
Aircraft $ — $ — $ — $ — $ — $ —
Fastening Systems ————128128
Industrial Products 7 1 — 8 16 24
Industrial Components 8 — 1 9 205 214
Finance ——————
Corporate ————117117
$15 $ 1 $ 1$17$466 $ 483
Note 15
Special Charges
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