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60 Textron Inc. Annual Report ● 2012
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 29,
2012
December 31,
2011
Land and buildings 4 - 40 $ 1,604 $ 1,502
Machinery and equipment 1 - 15 3,822 3,591
5,426 5,093
Accumulated depreciation and amortization (3,277) (3,097)
Total
$ 2,149 $ 1,996
At the end of 2012 and 2011, assets under capital leases totaled $251 million and had accumulated amortization of $51 million and
$47 million, respectively. The Manufacturing group’s depreciation expense, which included amortization expense on capital
leases, totaled $315 million, $317 million and $308 million in 2012, 2011 and 2010, respectively.
Note 7. Accrued Liabilities
The accrued liabilities of our Manufacturing group are summarized below:
(In millions)
December 29,
2012
December 31,
2011
Customer deposits $ 725 $ 729
Salaries, wages and employer taxes 282 282
Current portion of warranty and product maintenance contracts 180 198
Deferred revenues 115 169
Retirement plans 80 80
Other 574 494
Total $ 1,956 $ 1,952
Changes in our warranty and product maintenance contract liability are as follows:
(In millions) 2012 2011 2010
Accrual at beginning of year $ 224 $ 242 $ 263
Provision 255 223 189
Settlements (250) (223) (231)
Adjustments to prior accrual estimates* (7) (18) 21
Accrual at end of year $ 222 $ 224 $ 242
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.