E-Z-GO 2006 Annual Report Download - page 97

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Schedule II – Valuation and Qualifying Accounts
(In millions)
2006 2005 2004
Manufacturing Group
Allowance for Doubtful Accounts
Balance at beginning of year $ 38 $ 54 $ 55
Charged to costs and expenses 4 16 16
Deductions from reserves* (8) (32) (17)
Balance at end of year $ 34 $ 38 $ 54
Reserves for Recourse Liability to Finance Group – Continuing Operations**
Balance at beginning of year $ 40 $ 37 $ 46
Charged to costs and expenses — 12 10
Reclassifications to other assets — — (14)
Deductions from reserves* (1) (9) (5)
Balance at end of year $ 39 $ 40 $ 37
Inventory FIFO Reserves
Balance at beginning of year $ 85 $ 91 $ 100
Charged to costs and expenses 29 25 33
Deductions from reserves* (25) (31) (42)
Balance at end of year $ 89 $ 85 $ 91
Finance Group
Allowance for Losses on Finance Receivables
Balance at beginning of year $ 96 $ 99 $ 119
Provision for losses 26 29 58
Deduction from reserves* (29) (32) (78)
Balance at end of year $ 93 $ 96 $ 99
* Represents uncollectible accounts written off (less recoveries), inventory disposals, acquisitions and translation adjustments
** These reserves exclude discontinued operations liabilities of $6 million in 2006, $18 million in 2005 and $22 million in 2004. The decline in these reserves is
primarily due to write-offs.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
None
Item 9A. Controls and Procedures
Disclosure Controls and Procedures –
We have carried out an evaluation, under the supervision and with the participation of our management,
including our Chairman, President and Chief Executive Officer (our “CEO”) and our Executive Vice President and Chief Financial Officer (our
“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e)
under the Securities Exchange Act of 1934, as amended (the “Act”)) as of the end of the fiscal year covered by this report. Based upon that evalua-
tion, our CEO and CFO concluded that our disclosure controls and procedures are effective in providing reasonable assurance that (a) the infor-
mation required to be disclosed by us in the reports that we file or submit under the Act is recorded, processed, summarized and reported within
the time periods specified in the Securities and Exchange Commission’s rules and forms, and (b) such information is accumulated and communi-
cated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.
76
Schedule II – Valuation and Qualifying Accounts