E-Z-GO 2009 Annual Report Download - page 42

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33
Contractual Obligations
Finance Group
Due to the nature of finance companies, we believe that it is meaningful to include contractual cash receipts that we expect to receive in the future.
The following table summarizes the Finance group’s liquidity position, including all managed finance receivables and both on- and off-balance
sheet funding sources as of January 2, 2010, for the specified years:
Payments/Receipts Due by Period
2015
and
(In millions) 2010 2011 2012 2013 2014 Thereafter Total
Payments due: (1)
Multi-year bank lines of credit $ — $ — $ 1,740 $ — $ — $ — $ 1,740
Term debt 1,653 437 70 596 129 142 3,027
Securitized on-balance sheet debt (2) 85 69 85 76 68 176 559
Subordinated debt — — — — — 300 300
Securitized off-balance sheet debt (2) — — — — — 31 31
Interest on borrowings (3) 110 75 59 43 34 84 405
Operating lease rental payments 5 4 1 1 1 — 12
Total payments due 1,853 585 1,955 716 232 733 6,074
Cash and contractual receipts: (1)(4)
Finance receivable held for investment 1,630 1,266 866 690 381 1,454 6,287
Finance receivable held for sale 260 249 197 121 76 20 923
Securitized off-balance sheet finance
receivables and cash receipts (2) — — — — — 31 31
Interest receipts on finance receivables (3) 373 272 199 144 103 165 1,256
Operating lease rental receipts 26 22 18 11 9 14 100
Total contractual receipts 2,289 1,809 1,280 966 569 1,684 8,597
Cash 144 — — — — — 144
Total cash and contractual receipts 2,433 1,809 1,280 966 569 1,684 8,741
Net cash and contractual receipts
(payments) $ 580 $ 1,224 $ (675) $ 250 $ 337 $ 951 $ 2,667
Cumulative net cash and contractual
receipts $ 580 $ 1,804 $ 1,129 $ 1,379 $ 1,716 $ 2,667
(1) Excludes cash that may be generated by the disposal of operating lease residual assets and other assets in addition to cash that may be used to pay future
income taxes, accrued interest and other liabilities.
(2) Securitized on-balance sheet and securitized off-balance sheet debt payments are based on the contractual receipts of the underlying receivables, which
are remitted into the securitization structure when and as they are received. These payments do not represent contractual obligations of the Finance group,
and we do not provide legal recourse to investors who purchase interests in the securitizations beyond the credit enhancement inherent in the retained
subordinate interests.
(3) Interest payments and receipts reflect the current interest rate paid or received on the related debt and finance receivables. They do not include anticipated
changes in either market interest rates or changes in borrower performance, which could have an impact on the interest rate according to the terms of the
related debt or finance receivable contract.
(4) Finance receivable receipts are based on contractual cash flows only and do not reflect any reserves for uncollectible amounts. These receipts could differ
due to sales, prepayments, charge-offs and other factors, including the inability of borrowers to repay the balance of the loan at the contractual maturity date.
Finance receivable receipts on the held for sale portfolio represent the contractual balance of the finance receivable and, therefore, exclude the potential
negative impact from selling the portfolio at the estimated fair value.
This liquidity profile is an indicator of the Finance group’s ability to repay outstanding funding obligations, assuming contractual collection of all
finance receivables, absent access to new sources of liquidity or origination of additional finance receivables. In addition, at January 2, 2010, our
Finance group had $402 million in other liabilities, primarily including accounts payable and accrued expenses, that are payable within the next
12 months.
Textron Inc.