E-Z-GO 2009 Annual Report Download - page 69

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Notes to the Consolidated Financial Statements
60
Note 6. Inventories
Inventories are comprised of the following:
January 2, January 3,
(In millions) 2010 2009
Finished goods $ 735 $ 1,081
Work in process 1,861 1,866
Raw materials and components 613 765
3,209 3,712
Progress/milestone payments (936) (619)
$ 2,273 $ 3,093
Inventories valued by the LIFO method totaled $1.3 billion and $2.0 billion at January 2, 2010 and January 3, 2009, respectively. Had our LIFO
inventories been valued at current costs, their carrying values would have been approximately $414 million and $363 million higher at those
respective dates. Inventories related to long-term contracts, net of progress/milestone payments, were $366 million at January 2, 2010 and
$741 million at January 3, 2009.
Note 7. Property, Plant and Equipment, Net
Our Manufacturing group’s property, plant and equipment, net are comprised of the following:
January 2, January 3,
(In millions) 2010 2009
Land and buildings $ 1,426 $ 1,289
Machinery and equipment 3,208 3,235
4,634 4,524
Accumulated depreciation and amortization (2,666) (2,436)
$ 1,968 $ 2,088
Assets under capital leases totaled $218 million and $194 million and had accumulated amortization of $36 million and $30 million at the end
of 2009 and 2008, respectively. Depreciation expense for the Manufacturing group totaled $317 million in 2009, $302 million in 2008 and
$256 million in 2007.
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. Since these asset retirement obligations are not
estimable, there is no related liability recorded in the Consolidated Balance Sheets.