E-Z-GO 2004 Annual Report Download - page 73

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52
All of Textron’s acquired intangible assets are subject to amortization and are composed of the following:
January 1, 2005 January 3, 2004
Weighted-
Average
Amortization Gross Gross
Period Carrying Accumulated Carrying Accumulated
(Dollars in millions)
(In years) Amount Amortization Net Amount Amortization Net
Trademarks 20 $ 28 $ 5 $ 23 $ 28 $ 4 $ 24
License 15 10 — 10———
Patents 8 12 7 5 12 5 7
Other 5 13 7 6 12 4 8
$63 $19 $44 $52 $13 $39
Amortization expense totaled $6 million in 2004 and $9 million in both 2003 and 2002. Amortization expense for fiscal years
2005, 2006, 2007, 2008 and 2009 is estimated to be approximately $5 million, $4 million, $4 million, $3 million and $3 million,
respectively.
Note 8 Debt and Credit Facilities
January 1, January 3,
(In millions)
2005 2004
Textron Manufacturing:
Long-term senior debt:
Medium-term notes due 2010 to 2011 (average rate of 9.85%) $ 17 $ 17
6.375% due 2004 — 300
5.625% due 2005 406 372
6.375% due 2008 300 300
4.50% due 2010 250 250
6.50% due 2012 300 300
6.625% due 2020 288 265
Other long-term debt (average rate of 6.1% and 6.5%, respectively) 230 223
Total debt $ 1,791 $ 2,027
Current portion of long-term debt (433) (316)
Total long-term debt $ 1,358 $ 1,711
Textron Manufacturing maintains credit facilities with various banks for both short- and long-term borrowings. Textron Manufac-
turing has primary revolving credit facilities of $1.25 billion, of which $1.0 billion will expire in 2007 and $250 million will expire
in March 2005. The $250 million facility includes a one-year term out option that can effectively extend its expiration into 2006.
Textron Manufacturing’s credit facilities permit Textron Finance to borrow under these facilities. At January 1, 2005 and January 3,
2004, none of the lines of credit were used or reserved as support for commercial paper. The weighted-average interest rates for
these facilities in 2004 and 2003 were 1.7% and 1.3%, respectively.
January 1, January 3,
(In millions)
2005 2004
Textron Finance:
Borrowings under or supported by credit facilities* $ 1,307 $ 520
Fixed-rate debt at average rate of 4.95% and 6.36%, respectively 2,360 2,831
Variable-rate notes at average rate of 3.04% and 2.29%, respectively 1,116 1,056
Total Textron Finance debt $ 4,783 $ 4,407
* The weighted-average interest rates on these borrowings, before the effect of interest rate exchange agreements, were 2.4% and 1.3% at year-end
2004 and 2003, respectively. Weighted-average interest rates during the years 2004 and 2003 were 1.6% and 1.5%, respectively.
Notes to Consolidated Financial Statements