E-Z-GO 2011 Annual Report Download - page 46

Contractual Obligations
Manufacturing Group
The following table summarizes the known contractual obligations, as defined by reporting regulations, of our
Manufacturing group as of December 31, 2011:
Payments Due by Period
(In millions)
Total
Less than 1
Year
1-3 Years
4-5 Years
More Than 5
Years
Liabilities reflected in balance sheet:
Long-term debt
$ 2,486
$ 146
$ 538
$ 612
$ 1,190
Interest on borrowings
791
135
234
178
244
Pension benefits for unfunded plans (1)
360
23
46
42
249
Postretirement benefits other than pensions (1)
561
55
98
84
324
Other long-term liabilities (2)
612
164
141
68
239
Liabilities not reflected in balance sheet:
Operating leases (3)
334
56
82
58
138
Purchase obligations (4)
2,820
2,207
606
7
—
Total Manufacturing group
$ 7,964
$ 2,786
$ 1,745
$ 1,049
$ 2,384
(1) We maintain defined benefit pension plans and postretirement benefit plans other than pensions as discussed in Note 13 to the
Consolidated Financial Statements. Included in the above table are discounted estimated benefit payments we expect to make
related to unfunded pension and other postretirement benefit plans. Actual benefit payments are dependent on a number of
factors, including mortality assumptions, expected retirement age, rate of compensation increases and medical trend rates,
which are subject to change in future years. Our policy for funding pension plans is to make contributions annually,
consistent with applicable laws and regulations; however, future contributions to our pension plans are not included in the
above table. In 2012, we expect to make contributions to our funded pension plans of approximately $150 million and
approximately $25 million in the Retirement Account Plan. Based on our current assumptions, which may change with
changes in market conditions, our current contribution estimates for each of the years from 2013 through 2016 are estimated
to be in the range of approximately $50 million to $400 million under the plan provisions in place at this time.
(2) Other long-term liabilities included in the table consist primarily of undiscounted amounts in the Consolidated Balance Sheet
as of December 31, 2011, representing obligations under deferred compensation arrangements and estimated environmental
remediation costs. Payments under deferred compensation arrangements have been estimated based on management’s
assumptions of expected retirement age, mortality, stock price and rates of return on participant deferrals. The timing of cash
flows associated with environmental remediation costs is largely based on historical experience. Other long-term liabilities,
such as deferred taxes, unrecognized tax benefits and product liability and litigation reserves, have been excluded from the
table due to the uncertainty of the timing of payments combined with the absence of historical trends to be used as a predictor
for such payments.
(3) Operating leases represent undiscounted obligations under noncancelable leases.
(4) Purchase obligations include undiscounted amounts committed under legally enforceable contracts or purchase orders for
goods and services with defined terms as to price, quantity and delivery dates. Approximately 35% of the purchase
obligations we disclose represent purchase orders issued for goods and services to be delivered under firm contracts with the
U.S. Government for which we have full recourse under customary contract termination clauses.
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Textron Inc. Annual Report • 2011 35