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Textron Inc. Annual Report ● 2012 55
Note 3. Goodwill and Intangible Assets
The changes in the carrying amount of goodwill by segment are as follows:
(In millions) Cessna Bell
Textron
Systems Industrial Total
Balance at January 2, 2010 $ 322 $ 30 $ 958 $ 312 $ 1,622
Acquisitions — 1 16 5 22
Foreign currency translation — — — (12) (12)
Balance at January 1, 2011 322 31 974 305 1,632
Acquisitions — — — 5 5
Foreign currency translation — — — (2) (2)
Balance at December 31, 2011 322 31 974 308 1,635
Acquisitions 4 — — 6 10
Foreign currency translation — — — 4 4
Balance at December 29, 2012 $ 326 $ 31 $ 974 $ 318 $ 1,649
Our intangible assets are summarized below:
December 29, 2012 December 31, 2011
(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 15 $ 330 $ (139) $ 191 $ 330 $ (112) $ 218
Patents and technology 10 84 (55) 29 95 (59) 36
Trademarks 18
36 (22) 14 36 (19) 17
Other 9
20 (16) 422 (16) 6
Total
$ 470 $ (232) $ 238 $ 483 $ (206) $ 277
In the fourth quarter of 2011, we recorded a $41 million impairment charge to write down $37 million in customer agreements and
contractual relationships and $4 million in patents and technology. See Note 9 for more information on this charge.
Amortization expense totaled $40 million, $51 million and $52 million in 2012, 2011 and 2010, respectively. Amortization
expense is estimated to be approximately $36 million, $35 million, $34 million, $28 million and $24 million in 2013, 2014, 2015,
2016 and 2017, respectively.
Note 4. Accounts Receivable and Finance Receivables
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)
December 29,
2012
December 31,
2011
Commercial $ 534 $ 528
U.S. Government contracts 314 346
848 874
Allowance for doubtful accounts (19) (18)
Total $ 829 $ 856
We have unbillable receivables primarily 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 $149 million at December 29, 2012 and $192 million at December 31, 2011.