E-Z-GO 2005 Annual Report Download - page 88

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Cash payments for taxes, net of tax refunds received, for Textron Manufacturing excluding discontinued operations totaled $107 million in 2005,
$(16) million in 2004 and $(38) million in 2003. Cash payments for taxes, net of tax refunds, for discontinued operations totaled $(33) million in
2005, $(16) million in 2004 and $(120) million in 2003. Cash payments for taxes, net of tax refunds, for Textron Finance totaled $22 million in
2005, $61 million in 2004 and $(6) million in 2003.
Note 16. Special Charges
Special charges are summarized below for the applicable segments:
Restructuring Expense
Other Other Total
Severance Contract Fixed Asset Associated Charges Special
(In millions)
Costs Terminations Impairments Costs Total (Gain) Charges
2005
Industrial $ 2 $ — $ — $ 4 $ 6 $ — $ 6
Corporate —————112112
$2$—$—$4 $6$112$118
2004
Bell $ — $ — $ (1) $ — $ (1) $ — $ (1)
Industrial 28 37 1 6 72 — 72
Corporate —————(12) (12)
$ 28 $ 37 $ — $ 6 $ 71 $ (12) $ 59
2003
Bell $ 2 $ — $ — $ — $ 2 $ — $ 2
Cessna 8 — 1 — 9 — 9
Industrial 17 2 10 13 42 — 42
Finance 4 — 2 — 6 — 6
Corporate 3 — — — 3 15 18
$34 $ 2 $13 $13 $62 $15 $77
Restructuring Program
Textron substantially completed its company-wide restructuring program at the end of 2005. Textron approved and committed to a restructuring
program in the fourth quarter of 2000 to improve returns at core businesses and to complete the integration of certain acquisitions. This program
was expanded in 2001 and in 2002 as part of Textron’s strategic effort to improve operating efficiencies. Textron’s restructuring program included
corporate and segment direct and indirect workforce reductions, consolidation of facilities, rationalization of certain product lines, outsourcing of
non-core production activity, the divestiture of non-core businesses and the streamlining of sales and administrative overhead. Under this pro-
gram, Textron reduced its workforce by approximately 8,000 employees from continuing operations, representing approximately 19% of its global
workforce since the program was first announced, and has closed 85 facilities.
As of December 31, 2005, Textron had incurred total program costs of $306 million, which is composed of $164 million in severance costs, $44
million in contract termination costs, $34 million in asset impairment charges (net of gains on the sale of fixed assets) and $64 million in other
associated costs. Total program costs incurred by segment include $219 million in the Industrial segment, $38 million in the Cessna segment,
$29 million in the Bell segment, $9 million in the Finance segment and $11 million at Corporate.
68
Textron Inc.