E-Z-GO 2007 Annual Report Download - page 70

Textron Inc.
The following table summarizes the estimated fair values of assets acquired and liabilities assumed from UIC as of November 14, 2007, the
effective date of the acquisition:
(In millions)
Current assets $ 219
Property, plant and equipment 57
Intangible assets 361
Goodwill 857
Other assets 31
Total assets acquired 1,525
Current liabilities 279
Debt 252
Deferred taxes 123
Other liabilities 59
Total liabilities assumed 713
Minority interest 157
Net assets acquired $ 655
In addition to the $655 million we paid for the net assets acquired on November 14, 2007, we paid approximately $240 million to settle
outstanding acquired debt and other obligations and $157 million to purchase the minority interest in December.
The acquired intangible assets represent primarily customer agreements and contractual relationships with a weighted-average useful life of 13
years. We have allocated the purchase price of this business to the estimated fair value of the net tangible and intangible assets acquired, with any
excess recorded as goodwill. Approximately $64 million of the goodwill is deductible for tax purposes. These estimates are preliminary as of the
end of 2007 as we are awaiting the completion of the identifi cation and valuation of the intangible assets acquired. We expect these analyses will
be completed during the fi rst half of 2008.
In 2007, we also acquired certain assets of CAV-Air LLC, Columbia Aircraft Manufacturing Corporation and Paladin Tools. CAV-Air’s helicopter
maintenance and service center was acquired by our Bell segment. Columbia Aircraft Manufacturing Corporation produces high-performance,
single engine aircraft and has been integrated into our Cessna segment. Paladin Tools is a provider of tools and accessories for the
telecommunications industry and has been integrated into our Industrial segment. We have recorded $12 million of goodwill and $16 million in
intangibles for these businesses.
2006 Business Acquisitions
We acquired three businesses in 2006 for a total cost of $338 million in the Bell segment and $164 million in the Finance segment, all of which
were paid for in cash. The operating results of these businesses have been included in the Consolidated Financial Statements since the date of
each respective acquisition. These acquisitions include the following:
• Overwatch Systems (“Overwatch”), a developer and provider of intelligence analysis software tools for the defense industry, was acquired
on December 1.
• Innovative Survivability Technologies, Inc., a supplier of innovative defensive systems to military and homeland security customers, was
acquired on July 19.
• Electrolux Financial Corporation’s dealer inventory fi nance business, which provides consumer appliance and electronics dealers with
wholesale inventory fi nancing, was acquired on June 30.
In connection with these acquisitions in 2006, we recorded $259 million in goodwill and $112 million in identifi able intangible assets, primarily
in the Bell segment. These amounts were adjusted in 2007 to refl ect the fi nal fair value adjustments, which resulted in a reduction of goodwill of
$14 million, net of deferred taxes, and an increase in intangible assets of $21 million. The adjusted intangible assets and weighted-average
amortization periods are as follows: $84 million in patents and technology (15 years), $33 million in customer agreements (9 years) and $16 million
in other intangible assets (4 years).
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