E-Z-GO 2010 Annual Report Download - page 64

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52
Intangible Assets
Our intangible assets are summarized below:
January 1, 2011
January 2, 2010
(Dollars in millions)
Weighted-
Average
Amortization
Period (in years)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Gross
Carrying
Amount
Accumulated
Amortization
Net
Customer agreements and
contractual relationships
13
$ 412
$ (115)
$ 297
$ 407
$ (77)
$ 330
Patents and technology
10
101
(53)
48
101
(43)
58
Trademarks
18
35
(16)
19
34
(14)
20
Other
8
22
(15)
7
19
(15)
4
$ 570
$ (199)
$ 371
$ 561
$ (149)
$ 412
Amortization expense totaled $52 million, $52 million and $53 million in 2010, 2009 and 2008, respectively. Amortization expense is
estimated to be approximately $52 million, $50 million, $46 million, $41 million and $40 million in 2011, 2012, 2013, 2014 and 2015,
respectively.
Note 4. Accounts Receivable and Finance Receivables
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)
January 1,
2011
January 2,
2010
Commercial
$ 496
$ 470
U.S. Government contracts
416
447
912
917
Allowance for doubtful accounts
(20)
(23)
$ 892
$ 894
We have unbillable receivables on U.S. Government contracts that arise when the revenues we have appropriately recognized based
on performance cannot be billed yet under terms of the contract. Unbillable receivables within accounts receivable totaled $195
million at January 1, 2011 and $170 million at January 2, 2010.
Finance Receivables
Finance receivables by product line, which includes both finance receivables held for investment and finance receivables held for sale,
are presented in the following table by product line:
(Dollars in millions) January 1, 2011 January 2, 2010
Aviation
$ 2,120
46%
$ 2,535
36%
Golf equipment
212
5
417
6
Golf mortgage
876
19
1,085
16
Timeshare
894
19
1,302
18
Structured capital
317
7
349
5
Other liquidating
207
4
1,337
19
Total finance receivables
4,626
100%
7,025
100%
Less: Allowance for losses
342
341
Less: Finance receivables held for sale
413
819
Total finance receivables held for investment, net
$ 3,871
$ 5,865
The aviation product line primarily includes installment contracts and finance leases provided to purchasers of new and used Cessna
aircraft and Bell helicopters and also includes installment contracts and finance leases secured by used aircraft produced by other
manufacturers. These agreements typically have initial terms ranging from five to ten years and amortization terms ranging from eight
to fifteen years. The average balance of installment contracts and finance leases in the aviation product line was $1 million at January
1, 2011. Installment contracts generally require the customer to pay a significant down payment, along with periodic scheduled
principal payments that reduce the outstanding balance through the term of the loan. Finance leases with no significant residual value
at the end of the contractual term are classified as installment contracts, as their legal and economic substance is more equivalent to a
secured borrowing than a finance lease with a significant residual value. The golf equipment product line primarily includes finance