E-Z-GO 2014 Annual Report Download - page 59

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The unaudited supplemental pro-forma data included in the table below presents consolidated information as if our 2014
acquisitions had been completed on December 30, 2012. This pro-forma information should not be considered indicative of the
results that would have occurred if the acquisitions and related financing had been consummated on December 30, 2012, nor are
they necessarily indicative of future results as they do not reflect the potential realization of cost savings and synergies associated
with the acquisitions.
(In millions, except per share amounts)
2014
2013
Revenues
$ 14,240
$ 13,956
Income from continuing operations, net of income taxes
689
482
Diluted earnings per share from continuing operations
$ 2.45
$ 1.69
Certain pro-forma adjustments were made to reflect the allocation of the preliminary purchase price to the acquired net assets,
which included depreciation and intangible amortization expense resulting from the valuation of tangible and intangible assets,
amortization of inventory fair value step-up adjustments and the related tax effects. The pro-forma results for 2013 were also
adjusted to include transaction and restructuring costs of $52 million, related to the Beechcraft acquisition; these costs were
excluded from the 2014 pro-forma results. In addition, the pro-forma results exclude the financial impact related to Beechcraft’s
emergence from bankruptcy in 2013.
Goodwill
The changes in the carrying amount of goodwill by segment are as follows:
(In millions)
Textron
Aviation
Bell
Textron
Systems
Industrial
Total
Balance at December 29, 2012
$ 326
$ 31
$ 974
$ 318
$ 1,649
Acquisitions
—
—
52
30
82
Foreign currency translation
—
—
—
4
4
Balance at December 28, 2013
326
31
1,026
352
1,735
Acquisitions
228
—
35
50
313
Foreign currency translation
—
—
(4)
(17)
(21)
Balance at January 3, 2015
$ 554
$ 31
$ 1,057
$ 385
$ 2,027
Intangible Assets
Our Intangible assets are summarized below:
January 3, 2015
December 28, 2013
(Dollars in millions)
Weighted-Average
Amortization
Period (in years)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Gross
Carrying
Amount
Accumulated
Amortization
Net
Patents and technology
15
$ 513
$ (92)
$ 421
$ 142
$ (63)
$ 79
Customer relationships and
contractual agreements
15
364
(192)
172
331
(165)
166
Trade names and trademarks
16
263
(28)
235
49
(24)
25
Other
9
23
(18)
5
23
(17)
6
Total
$ 1,163
$ (330)
$ 833
$ 545
$ (269)
$ 276
Trade names and trademarks in the table above include $204 million of indefinite-lived intangible assets at January 3, 2015. There
were no indefinite-lived intangible assets at December 28, 2013.
Amortization expense totaled $62 million, $37 million and $40 million in 2014, 2013 and 2012, respectively. Amortization
expense is estimated to be approximately $61 million, $62 million, $62 million, $59 million and $57 million in 2015, 2016, 2017,
2018 and 2019, respectively.
53
Textron Inc. Annual Report • 2014