E-Z-GO 2008 Annual Report Download - page 77

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Notes to the Consolidated Financial Statements
64
Note 6. Inventories
Inventories are comprised of the following:
January 3, December 29,
(In millions) 2009 2007
Finished goods $ 1,081 $ 728
Work in process 1,932 1,819
Raw materials 765 588
3,778 3,135
Progress/milestone payments (619) (542)
$ 3,159 $ 2,593
Inventories valued by the LIFO method totaled $2.0 billion and $1.7 billion at the end of 2008 and 2007, respectively. Had our LIFO inventories
been valued at current costs, their carrying values would have been approximately $366 million and $307 million higher at those respective dates.
Inventories related to long-term contracts, net of progress/milestone payments, were $741 million at the end of 2008 and $710 million at the end
of 2007.
Note 7. Property, Plant and Equipment, net
Our Manufacturing group’s property, plant and equipment, net are comprised of the following:
January 3, December 29,
(In millions) 2009 2007
Land and buildings $ 1,298 $ 1,196
Machinery and equipment 3,296 2,967
4,594 4,163
Accumulated depreciation and amortization (2,479) (2,245)
$ 2,115 $ 1,918
Depreciation expense for the Manufacturing group totaled $305 million in 2008, $259 million in 2007 and $232 million in 2006.
We have incurred asset retirement obligations primarily related to costs to remove and dispose of underground storage tanks and asbestos
materials used in insulation, adhesive fillers and floor tiles. There is no legal requirement to remove these items, and there currently is no plan to
remodel the related facilities or otherwise cause the impacted items to require disposal. As a result, these asset retirement obligations are not
estimable, and, in accordance with the provisions of FASB Interpretation No. 47, “Conditional Asset Retirement Obligations,” we have not
recorded a liability.