E-Z-GO 2005 Annual Report Download - page 70

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The assets and liabilities of these discontinued businesses are as follows:
December 31, January 1,
(In millions)
2005 2005
Cash and cash equivalents $ 31 $ 35
Accounts receivable, net 299 380
Inventories 190 208
Other current assets 68 66
Property, plant and equipment, net 346 409
Goodwill 77 437
Other intangibles, net 10 11
Other assets 101 87
Total assets $ 1,122 $ 1,633
Current portion of long-term and short-term debt $ 12 $ 13
Accounts payable and accrued liabilities 265 331
Accrued postretirement benefits other than pensions 30 37
Other liabilities 132 131
Long-term debt 78
Total liabilities $ 446 $ 520
Operating results of the discontinued businesses are as follows:
(In millions)
2005 2004 2003
Revenue $ 1,936 $ 1,994 $ 1,973
(Loss) income from discontinued operations before special charges (388) 72 61
Special charges (11) (91) (111)
Loss from discontinued operations (399) (19) (50)
Income tax benefit 40 9 7
Operating loss from discontinued operations, net of income taxes (359) (10) (43)
Gain on disposal, net of income taxes $ 46 $ — $ —
Prior to the disposition of these businesses, approximately $289 million in restructuring costs related to Textron Fastening Systems, InteSys and
OmniQuip were recorded in Special Charges since the inception of Textron’s restructuring program.
Note 3. Acquisitions
Textron has a joint venture, CitationShares, with TAG Aviation USA, Inc. (“TAG”) to sell fractional share interests in business jets and limited
advance purchase jet charter. On June 30, 2004, Textron acquired an additional 25% interest in CitationShares from TAG for cash and the
assumption of debt guarantees previously provided by TAG. Assets acquired of $47 million included $22 million of inventory, primarily Citation
jets, and liabilities acquired of $59 million included $47 million of third-party debt that was immediately repaid. As a result of this transaction,
Textron owned 75% of CitationShares and consolidated its financial results prospectively as of June 30, 2004.
Additional cash consideration may also be payable to TAG based on CitationShares’ future operating results. In 2005, Textron increased its owner-
ship interest to 82.2% through additional capital contributions of $26 million.TAG has the right to sell its remaining interest to Textron in the years
2009 through 2011, and Textron has the right to purchase the remaining interest in 2010 or 2011, for an amount based on a multiple of earnings.
50
Textron Inc.