E-Z-GO 2009 Annual Report Download - page 28

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19
Textron Inc.
Special charges by segment are as follows:
Restructuring Program
Curtailment Contract Total
Severance Charges, Asset Terminations Total Other Special
(In millions) Costs Net Impairments and Other Restructuring Charges Charges
2009
Cessna $ 80 $ 26 $ 54 $ 7 $ 167 $ — $ 167
Finance 11 1 — 1 13 — 13
Corporate 34 — — 1 35 — 35
Industrial 6 (4) — 3 5 80 85
Bell 9 — — — 9 — 9
Textron Systems 5 2 — 1 8 — 8
$ 145 $ 25 $ 54 $ 13 $ 237 $ 80 $ 317
2008
Cessna $ 5 $ — $ — $ — $ 5 $ — $ 5
Finance 15 — 11 1 27 462 489
Corporate 6 — — — 6 — 6
Industrial 16 — 9 — 25 — 25
Textron Systems 1 — — — 1 — 1
$ 43 $ — $ 20 $ 1 $ 64 $ 462 $ 526
Restructuring Program
In the fourth quarter of 2008, we initiated a restructuring program to reduce overhead costs and improve productivity across the company, which
includes corporate and segment direct and indirect workforce reductions and streamlining of administrative overhead, and announced the exit of
portions of our commercial finance business. This program was expanded in 2009 to include additional workforce reductions, primarily at
Cessna, Corporate and Bell, the cancellation of the Citation Columbus development project, the streamlining and reorganization of senior
management and the consolidation of certain operations at Cessna. By the end of 2010, we expect to have eliminated approximately 10,800
positions worldwide representing approximately 25% of our global workforce since the inception of the program. As of January 2, 2010, we have
terminated approximately 10,400 employees and have exited 23 leased and owned facilities and plants under this program.
We recorded net curtailment charges of $25 million for our pension and other postretirement benefit plans in the second quarter of 2009, as our
analysis of the impact of workforce reductions on these plans indicated that curtailments had occurred and that the amounts could be reasonably
estimated. The curtailment charge for the pension plan is primarily due to the recognition of prior service costs that previously were being
amortized over a period of years.
Asset impairment charges included a $43 million charge recorded in the second quarter of 2009 to write off assets related to the Citation
Columbus development project. Due to the prevailing adverse market conditions and after analysis of the business jet market related to the
product offering, Cessna formally canceled the Citation Columbus development project in the second quarter of 2009. Cessna began this project
in early 2008 for the development of an all-new, wide-bodied, eight-passenger business jet designed for international travel that would extend
Cessna’s product offering as its largest business jet to date. This development project had capitalized costs related to tooling and a partially
constructed manufacturing facility, of which $43 million was considered not to be recoverable.