E-Z-GO 2003 Annual Report Download - page 48

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The assets and liabilities for the OmniQuip discontinued business as of December 28, 2002 were as
follows:
(In millions)
Commercial receivables, net $ 40
Inventories 45
Income taxes receivable 54
Property, plant and equipment, net 26
Goodwill and other intangible assets, net 50
Other assets 22
Total assets $237
Accounts payable and accrued expenses $ 32
Other liabilities 54
Total liabilities $86
In the fourth quarter of 2003, Textron Finance sold substantially all of its small business direct portfolio to
MBNA America Bank, N.A. for $421 million in cash, and based upon the terms of the transaction, no
gain or loss was recorded. The assets for this discontinued business as of December 28, 2002 included
$200 million in net finance receivables, $12 million in goodwill and $59 million in other assets.
Textron’s consolidated statements of operations and related footnote disclosures have been recast to
reflect the OmniQuip division, previously included in the Industrial segment, and the small business
finance operation as discontinued operations for the periods presented. The amounts exclude general
corporate overhead previously allocated to the division for segment reporting purposes.
Operating results of the discontinued businesses are as follows:
Year Ended
(In millions) 2002 2001
Revenue $ 169 $ 308 $ 345
Income (loss) from discontinued operations before special charges 4 (61) (37)
Special charges (30) (15) (328)
Loss from discontinued operations (26) (76) (365)
Income tax benefit 4 73 57
Loss from discontinued operations, net of income taxes $ (22) $ (3) $ (308)
Prior to the sale of OmniQuip, approximately $27 million in restructuring costs related to OmniQuip were
recorded in special charges since the inception of Textron’s restructuring program. Special charges in
2001 also included a $317 million goodwill and intangible impairment charge related to OmniQuip.
On December 26, 2002, Textron sold the Snorkel product line of its OmniQuip business unit and the cap-
ital stock of OmniQuip Textron Inc. holding company to Elwood Holdings, LLC and recognized a pre-tax
loss of $20 million with a tax benefit of $54 million. The tax benefit was related to the writeoff of OmniQuip
goodwill in 2001, at which time only a portion of the tax benefit was realized.
On December 20, 2001, Textron completed the sale of its Automotive Trim business to Collins & Aikman
Products Company, a subsidiary of Collins & Aikman Corporation (C&A), for $668 million in cash, non-
marketable preferred shares of C&A valued at $147 million, 18 million shares of C&A common stock val-
ued at $90 million and a transfer of $60 million in indebtedness. In addition, Textron entered into an $87
million lease agreement whereby equipment used by the Automotive Trim business was retained by Tex-
tron and leased back to the business through Textron Financial Corporation. Textron recognized a $339
million gain on the sale and received after-tax proceeds of approximately $582 million, including the
transfer of indebtedness. The purchase and sale agreement includes a provision that entitles Textron to
an additional cash payment of up to $125 million to be calculated based on C&A operating results for
the five-year period ending 2006.
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