E-Z-GO 2003 Annual Report Download - page 64

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At January 3, 2004 and December 28, 2002, Textron had non-U.S. net operating loss carryforwards for
income tax purposes of $166 million and $135 million, respectively, of which $140 million and $58 mil-
lion, respectively, can be carried forward indefinitely. The balance expires at various dates through
2013. A valuation allowance at January 3, 2004 and December 28, 2002, of $53 million and $45 million,
respectively, has been recognized to offset the related deferred tax assets due to the uncertainty of real-
izing the benefits of the loss carryforwards.
Deferred income taxes have not been provided for the undistributed earnings of foreign subsidiaries,
which approximated $865 million at the end of 2003. Management intends to reinvest those earnings for
an indefinite period, except for distributions having an immaterial tax effect. If foreign subsidiaries’ earn-
ings were distributed, 2003 taxes, net of foreign tax credits, would be increased by approximately $155
million.
Cash payments for taxes, net of tax refunds received, for Textron Manufacturing totaled $(158) million in
2003, $42 million in 2002 and $122 million in 2001. Cash payments for taxes, net of tax refunds, for Tex-
tron Finance totaled $(6) million in 2003, $(31) million in 2002 and $16 million in 2001.
Textron recorded special charges of $159 million in 2003, $135 million in 2002 and $143 million in 2001.
These charges are summarized below for the applicable segments:
(In millions)
Bell $2$—$—$—$2$—$2
Cessna 8 — 1 — 9 — 9
Fastening Systems 34 — 34 7 75 — 75
Industrial 20 2 12 15 49 — 49
Finance 4 — 2 — 6 — 6
Corporate 3——— 31518
$71$2$49$22$144$15$159
Bell $4$—$1$1$6$—$6
Cessna 23 — 2 4 29 — 29
Fastening Systems 12 2 4 4 22 — 22
Industrial 15 2 9 13 39 — 39
Finance — — — — — — —
Corporate 1——— 13839
$55$4$16$22$97$38$135
Bell $9$—$—$12$21$—$21
Cessna — — — — — — —
Fastening Systems 22 2 18 8 50 2 52
Industrial 28 1 10 12 51 — 51
Finance 2 1 — — 3 — 3
Corporate 7 — — — 7 9 16
$68$4$28$32$132$11$143
To improve returns at core businesses and to complete the integration of certain acquisitions, Textron
approved and committed to a restructuring program in the fourth quarter of 2000 based upon targeted
cost reductions. This program was expanded in 2001, and in October 2002, Textron announced a fur-
ther expansion of the program as part of its strategic effort to improve operating efficiencies, primarily in
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