E-Z-GO 2008 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2008 E-Z-GO annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

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 2007.
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. In 2008, the goodwill and intangible
amounts were adjusted to reflect the final fair value adjustments, which resulted in a reduction of goodwill of $49 million, net of deferred taxes,
and an increase in intangible assets of $14 million.
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
intangible assets for these businesses.
2006 Business Acquisitions
We acquired three businesses in 2006 for a total cost of $338 million in the Textron Systems 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, a developer and provider of intelligence analysis software tools for the defense industry, was acquired in
December 2006.
• Innovative Survivability Technologies, Inc., a supplier of innovative defensive systems to military and homeland security customers, was
acquired in July 2006.
• Electrolux Financial Corporation’s dealer inventory nance business, which provides consumer appliance and electronics dealers with
wholesale inventory financing, was acquired in June 2006.
In connection with these acquisitions in 2006, we recorded $259 million in goodwill and $112 million in identifiable intangible assets, primarily
in the Textron Systems segment. These amounts were adjusted in 2007 to reflect the final 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).
59