E-Z-GO 2009 Annual Report Download - page 63

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54
Note 3. Business Acquisitions, Goodwill and Intangible Assets
Goodwill
The changes in the carrying amount of goodwill, by segment, are as follows:
Textron
(In millions) Cessna Bell Systems Industrial Finance Total
Balance at December 30, 2006 $ 322 $ 17 $ 311 $ 368 $ 169 $ 1,187
Acquisitions — 1 857 11 — 869
Foreign currency translation — — — 13 — 13
Other — — (17) — — (17)
Balance at December 29, 2007 322 18 1,151 392 169 2,052
Acquisitions and purchase price adjustments — (5) (44) — — (49)
Adjustment related to business sold — — (134) — — (134)
Transfers — 17 (17) — — —
Impairment — — — — (169) (169)
Foreign currency translation — — — (2) — (2)
Balance at January 3, 2009 322 30 956 390 — 1,698
Impairment — — — (80) — (80)
Foreign currency translation — — — 2 — 2
Other — — 2 — — 2
Balance at January 2, 2010 $ 322 $ 30 $ 958 $ 312 $ — $ 1,622
We recorded an impairment charge of $80 million in 2009 based on lower forecasted revenues and profits related to the effects of the economic
recession on the Golf & Turfcare reporting unit. In 2008, based on current market conditions and the plan to downsize the Finance segment,
we recorded an impairment charge of $169 million to eliminate all goodwill at the Finance segment. See Notes 10 and 12 for more information on
these charges.
Acquired Intangible Assets
Our acquired intangible assets are summarized below:
January 2, 2010 January 3, 2009
Weighted-
Average
Amortization Gross Gross
Period Carrying Accumulated Carrying Accumulated
(Dollars in millions) (In years) Amount Amortization Net Amount Amortization Net
Customer agreements and
contractual relationships 13 $ 407 $ (77) $ 330 $ 407 $ (43) $ 364
Patents and technology 10 101 (43) 58 112 (35) 77
Trademarks 19 34 (14) 20 37 (12) 25
Other 8 19 (15) 4 18 (13) 5
$ 561 $ (149) $ 412 $ 574 $ (103) $ 471
Amortization expense totaled $52 million in 2009, $53 million in 2008 and $23 million in 2007. Amortization expense is estimated to be
approximately $50 million, $49 million, $48 million, $46 million and $43 million in 2010, 2011, 2012, 2013 and 2014, respectively.
Acquisitions
On November 14, 2007, we acquired a majority ownership interest in United Industrial Corporation (UIC), a publicly held company, pursuant to a
cash tender offer of $81 per share. UIC operates through its wholly owned subsidiary, AAI Corporation (AAI). AAI is a leading provider of
intelligent aerospace and defense systems, including unmanned aircraft and ground control stations, aircraft and satellite test equipment, training
systems and countersniper devices, and has been integrated into our Textron Systems segment. In December 2007, we completed the acquisition
and obtained 100% ownership of UIC for a total cost of $1.0 billion. The results of operations for this business are included in our Consolidated
Statements of Operations since the acquisition date. Pro forma information has not been included as the amounts are immaterial.
Notes to the Consolidated Financial Statements