E-Z-GO 2010 Annual Report Download - page 70

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58
Note 6. Property, Plant and Equipment, Net
Our Manufacturing group’s property, plant and equipment, net are composed of the following:
(In millions)
January 1,
2011
January 2,
2010
Land and buildings
$ 1,453
$ 1,426
Machinery and equipment
3,348
3,208
4,801
4,634
Accumulated depreciation and amortization
(2,869)
(2,666)
$ 1,932
$ 1,968
Assets under capital leases totaled $248 million and $218 million and had accumulated amortization of $40 million and $36 million at
the end of 2010 and 2009, respectively. The Manufacturing group’s depreciation expense, which includes amortization expense on
capital leases, totaled $308 million, $317 million and $302 million in 2010, 2009 and 2008, respectively.
Note 7. Accrued Liabilities
The accrued liabilities of our Manufacturing group are summarized below:
(In millions)
January 1,
2011
January 2,
2010
Customer deposits
$ 715
$ 791
Salaries, wages and employer taxes
275
244
Warranty and product maintenance contracts
242
263
Deferred revenues
161
72
Retirement plans
82
85
Restructuring
62
51
Other
479
533
Total accrued liabilities
$ 2,016
$ 2,039
Changes in our warranty and product maintenance contract liability are as follows:
(In millions) 2010 2009 2008
Accrual at beginning of year
$ 263
$ 278
$ 313
Provision
189
174
189
Settlements
(231)
(217)
(198)
Adjustments to prior accrual estimates*
21
28
(26)
Accrual at end of year
$ 242
$ 263
$ 278
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.