E-Z-GO 2007 Annual Report Download - page 94

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Textron Inc.
On December 20, 2005, we entered into an agreement with Agusta to realign BAAC. Under this agreement, we sold our 25% profi t interest in the
Model AB139 medium twin helicopter program to Agusta. Agusta assumed ownership of all aspects of the Model AB139 program from BAAC,
including all existing customer obligations. In exchange for our interest, we received $10 million in cash, a $20 million note and a note for
contingent payments from Agusta based on future Model AB139 sales. We recognized a $30 million pre-tax gain upon the sale of our interest,
which is included in segment profi t. The contingent receipts are expected to begin with aircraft deliveries in 2008 and will be recorded into income
prospectively as the future sales occur. At the end of 2007 and 2006, Agusta’s profi t interest in the Model BA609 was approximately 32% and
30%, respectively.
Note 19. Supplemental Cash Flow and Other Information
Supplemental Cash Flow Information
We have made the following cash payments:
(In millions) 2007 2006 2005
Interest paid:
Manufacturing group* $ 114 $ 111 $ 108
Finance group 388 341 204
Taxes paid, net of refunds received:
Manufacturing group 316 173 107
Finance group 48 2 22
Discontinued operations (84) (40) (33)
* Cash paid for interest by the Manufacturing group includes amounts paid to our Finance group of $2 million, $4 million and $5 million in 2007, 2006 and
2005, respectively.
Accrued Liabilities
The accrued liabilities of our Manufacturing group are summarized below:
December 29, December 30,
(In millions) 2007 2006
Customer deposits $ 1,037 $ 663
Warranty and product maintenance contracts 321 315
Salaries, wages and employer taxes 335 276
Deferred revenue 115 107
Acquisition-related costs 104 —
Postretirement benefi ts other than pension 86 92
ARH LRIP program charges 50 —
Dividends payable 58 —
Other 600 505
Total accrued liabilities $ 2,706 $ 1,958
Note 20. Segment and Geographic Data
Our four reportable segments are: Bell, Cessna, Industrial and Finance. These segments refl ect the manner in which we manage our operations.
The accounting policies of the segments are the same as those described in Note 1.
Bell products include military and commercial helicopters, tiltrotor aircraft, armored security vehicles, precision weapons, airborne and ground-
based surveillance systems, unmanned aircraft systems, aircraft and missile control actuators, training and simulation systems and countersniper
devices, intelligence and situational awareness software for U.S. and non-U.S. governments in the defense and aerospace industries, and general
aviation markets.
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