E-Z-GO 2007 Annual Report Download - page 48

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Textron Inc.
We have a policy of maintaining unused committed bank lines of credit in an amount not less than outstanding commercial paper balances. These
facilities are in support of commercial paper and letters of credit issuances only, and neither of these lines of credit was drawn at December 29, 2007
or December 30, 2006.
Our primary committed credit facilities at December 29, 2007 include the following:
Amount Not
Reserved as
Support for
Commercial Letters of Commercial
Facility Paper Credit Paper and
(In millions) Amount Outstanding Outstanding Letters of Credit
Manufacturing group – multi-year facility expiring in 2012* $ 1,250 $ — $ 22 $ 1,228
Finance group – multi-year facility expiring in 2012 1,750 1,447 13 290
* The Finance group is permitted to borrow under this multi-year facility.
In connection with the acquisition of AAI, we entered into an interim $750 million credit facility that was subsequently terminated in January 2008.
Under a support agreement, Textron Inc. is required to maintain 100% ownership of Textron Financial Corporation. The agreement also requires
Textron Inc. to ensure that Textron Financial Corporation maintains fi xed charge coverage of no less than 125% and consolidated shareholder’s
equity of no less than $200 million.
Contractual Obligations
Manufacturing Group
The following table summarizes the known contractual obligations, as defi ned by reporting regulations, of our Manufacturing group as of
December 29, 2007, as well as an estimate of the timing in which these obligations are expected to be satisfi ed:
Payments Due by Period
Less than More than
(In millions) 1 Year 2 Years 3 Years 4 Years 5 Years 5 Years Total
Liabilities refl ected in balance sheet:
Long-term debt* $ 350 $ — $ 251 $ 16 $ 300 $ 1,068 $ 1,985
Capital lease obligations* 5 5 6 6 6 135 163
Pension benefi ts for unfunded plans 15 16 15 17 18 195 276
Postretirement benefi ts other than
pensions 76 74 70 66 61 489 836
Other long-term liabilities 139 85 53 48 37 295 657
Liabilities not refl ected in balance sheet:
Operating leases 60 52 43 32 27 171 385
Purchase obligations 2,499 593 228 45 13 23 3,401
Total Manufacturing group $ 3,144 $ 825 $ 666 $ 230 $ 462 $ 2,376 $ 7,703
* Amounts exclude interest payments.
We maintain defi ned benefi t pension plans and postretirement benefi t plans other than pensions as discussed in Note 12 to the Consolidated
Financial Statements. Included in the above table are discounted estimated benefi t payments we expect to make related to unfunded pension and
other postretirement benefi t plans. Actual benefi t payments are dependent on a number of factors, including mortality assumptions, expected
retirement age, rate of compensation increases and medical trend rates, which are subject to change in future years. We also expect to make
contributions to our funded pension plans in the range of approximately $53 million to $73 million per year over the next fi ve years, which are not
refl ected in the above table.
Other long-term liabilities included in the table consist primarily of undiscounted amounts on the Consolidated Balance Sheet as of December 29,
2007 representing obligations under deferred compensation arrangements and estimated environmental remediation costs. Payments under
deferred compensation arrangements have been estimated based on management’s assumptions of expected retirement age, mortality, stock price
and rates of return on participant deferrals. The timing of cash fl ows associated with environmental remediation costs is largely based on
historical experience. Other long-term liabilities, such as deferred taxes and unrecognized tax benefi ts, have been excluded from the table due to
the uncertainty of the timing of payments combined with the absence of historical trends to be used as a predictor for such payments.