E-Z-GO 2002 Annual Report Download - page 75

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Design: Jack Hough Associates Inc. Norwalk, CT
(1) Excludes $128 million in 2002 and $437 million in 2001 of pre-tax special charges primarily related to restructuring activities and goodwill
and other intangible asset impairment charges. Goodwill amortization expense of $98 million has been excluded from 2001 to conform to
2002 presentation.
(2) Income and EPS are before cumulative effect of change in accounting principle.
(3) In 2002, Textron changed the definition of Free Cash Flow to include only the items noted in this reconciliation. Prior period amounts have
been reclassified to conform with this presentation. Free cash flow in 2002 includes Textron Manufacturing's net cash provided by operat-
ing activities of $522 million, after-tax cash used for restructuring activities of $60 million and proceeds on sale of fixed assets of $67 mil-
lion, less capital expenditures of $279 million and capital lease additions of $23 million. Free Cash Flow in 2001 includes Textron Manu-
facturing's net cash provided by operating activities of $733 million, after-tax cash used for restructuring activities of $67 million, proceeds
on sale of fixed assets of $83 million, less capital expenditures of $514 million.
(4) Textron ROIC
The following notes and calculation pertain to the table on page 4:
(Dollars in millions) 2002 2001
ROIC Income
Income before cumulative effect of change in accounting principle $ 364 $166
Special Items:
Special charges 128 437
Other costs related to restructuring 22 34
Gain on sale of Trim, net of loss on sale of Snorkel (5) (339)
Tax impact of special items (87) 34
Distributions on preferred securities of subsidiary trusts,
net of taxes 26 26
Amortization, net of taxes 7 94
Interest expense, net of taxes 67 101
Interest cost on accrued postretirement benefits
other than pensions, net of taxes 28 31
ROIC Income $550 $ 584
Invested Capital (Average)
Total Shareholders’ Equity $ 3,670 $ 3,964
Total debt 1,823 2,009
Cash and cash equivalents (264) (262)
Due from Textron Finance (255) (255)
Textron - obligated mandatorily redeemable preferred
securities of subsidiary trust holding solely Textron
junior subordinated debt securities 485 485
Accrued postretirement benefits other than pensions,
net of taxes 387 419
Eliminate impact of Trim divestiture 179
Invested Capital $5,846 $ 6,539
Return on Invested Capital 9.4% 8.9%
(5) Special items in 2002 include pre-tax special charges for restructuring of $0.64 and the write-down of C&A common stock of $0.27, along
with other costs related to restructuring included in segment profit of $0.16, less net gains on sale of businesses of $0.04 and the tax
impact of special items of $0.62. Special items in 2001 include pre-tax special charges for restructuring of $0.76 and goodwill and other
intangible asset impairment charges of $2.29, along with other costs related to restructuring included in segment profit of $0.24 and the
tax impact of special items of $0.24, less gains on sale of businesses of $2.37.