E-Z-GO 2007 Annual Report Download - page 79

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Notes to the Consolidated Financial Statements
58
Fair Values of Financial Instruments
The carrying amounts and estimated fair values of our fi nancial instruments that are not refl ected in the fi nancial statements at fair value are
as follows:
December 29, 2007 December 30, 2006
Estimated Estimated
Carrying Fair Carrying Fair
(In millions) Value Value Value Value
Manufacturing group:
Debt $ (2,148) $ (2,170) $ (1,800) $ (1,833)
Finance group:
Finance receivables 7,364 7,378 7,019 6,982
Debt (7,311) (7,288) (6,862) (6,868)
Finance receivables in the table above exclude the fair value of fi nance and leveraged leases totaling $1.2 billion at December 29, 2007 and
December 30, 2006 as these leases are recorded at fair value in the Consolidated Balance Sheets.
Note 10. Shareholders’ Equity
Capital Stock
We have authorization for 15 million shares of preferred stock with no par value and 500 million shares of $0.125 par value common stock. Each
share of $2.08 Cumulative Convertible Preferred Stock, Series A ($23.63 approximate stated value; $11.00 liquidation value) is convertible into
8.8 shares of common stock, and we can redeem it for $50 per share. At the end of 2007, 2006 and 2005, we had approximately 72,000; 147,000
and 153,000 shares, respectively, of $2.08 Cumulative Convertible Preferred Stock, Series A issued with approximately 72,000; 78,000 and
84,000 shares outstanding. Each share of $1.40 Convertible Preferred Dividend Stock, Series B ($11.82 approximate stated value, preferred only
as to dividends) is convertible into 7.2 shares of common stock, and we can redeem it for $45 per share. At the end of 2007, 2006 and 2005, we
had approximately 36,000; 527,000 and 534,000 shares, respectively, of $1.40 Convertible Preferred Dividend Stock, Series B issued with
approximately 36,000; 41,000 and 47,000 shares outstanding.
On July 18, 2007, our Board of Directors approved a two-for-one split of our common stock effected in the form of a 100% stock dividend and the
retirement of 85 million shares of treasury stock. The additional shares resulting from the stock split were distributed on August 24, 2007 to
shareholders of record on August 3, 2007. Prior period share data and per share data has been restated to refl ect this stock split.
Outstanding common stock activity for the three years ended December 29, 2007 is presented below:
(In thousands) 2007 2006 2005
Beginning balance 251,192 260,369 270,746
Purchases (5,902) (17,148) (16,070)
Exercise of stock options 3,404 6,634 4,293
Conversion of preferred stock to common stock 89 102 204
Other issuances 1,278 1,235 1,196
Ending balance 250,061 251,192 260,369
Reserved Shares of Common Stock
At the end of 2007, common stock reserved for the subsequent conversion of preferred stock and shares reserved for the exercise of outstanding
stock options and the issuance of shares upon vesting of outstanding restricted stock units totaled 12.4 million shares.