E-Z-GO 2011 Annual Report Download - page 73

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Note 6. Property, Plant and Equipment, Net
Our Manufacturing group’s property, plant and equipment, net are composed of the following:
(Dollars in millions)
Useful Lives
(in years)
December 31,
2011
January 1,
2011
Land and buildings
4 – 40
$ 1,502
$ 1,453
Machinery and equipment
1 – 15
3,591
3,348
5,093
4,801
Accumulated depreciation and amortization
(3,097)
(2,869)
$ 1,996
$ 1,932
Assets under capital leases totaled $251 million and $248 million and had accumulated amortization of $47 million and $40
million at the end of 2011 and 2010, respectively. The Manufacturing group’s depreciation expense, which includes amortization
expense on capital leases, totaled $317 million, $308 million and $317 million in 2011, 2010 and 2009, respectively.
Note 7. Accrued Liabilities
The accrued liabilities of our Manufacturing group are summarized below:
(In millions)
December 31,
2011
January 1,
2011
Customer deposits
$ 729
$ 715
Salaries, wages and employer taxes
282
275
Current portion of warranty and product maintenance contracts
198
242
Deferred revenues
169
161
Retirement plans
80
82
Other
494
541
Total accrued liabilities
$ 1,952
$ 2,016
Changes in our warranty and product maintenance contract liability are as follows:
(In millions)
2011
2010
2009
Accrual at beginning of year
$ 242
$ 263
$ 278
Provision
223
189
174
Settlements
(223)
(231)
(217)
Adjustments to prior accrual estimates*
(18)
21
28
Accrual at end of year
$ 224
$ 242
$ 263
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.
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62 Textron Inc. Annual Report • 2011