E-Z-GO 2015 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2015 E-Z-GO annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88


UHYHQXHLVUHFRJQL]HGRQDVWUDLJKWOLQHEDVLVRYHUWKHFRQWUDFWSHULRGXQOHVVVXIILFLHQWKLVWRULFDOHYLGHQFHLQGLFDWHVWKDWWKHFRVWRI
SURYLGLQJ WKHVH VHUYLFHV LV LQFXUUHG RQ D EDVLV RWKHU WKDQ VWUDLJKWOLQH  ,Q WKRVH FLUFXPVWDQFHV UHYHQXH LV UHFRJQL]HG RYHU WKH
FRQWUDFWSHULRGLQSURSRUWLRQWRWKHFRVWVH[SHFWHGWREHLQFXUUHGLQSHUIRUPLQJWKHVHUYLFH
)RURXUZDUUDQW\SURJUDPVZHHVWLPDWHWKHFRVWVWKDWPD\EHLQFXUUHGDQGUHFRUGDOLDELOLW\LQWKHDPRXQWRIVXFKFRVWVDWWKHWLPH
SURGXFWUHYHQXHVDUHUHFRJQL]HG)DFWRUVWKDWDIIHFWWKLVOLDELOLW\LQFOXGHWKHQXPEHURISURGXFWVVROGKLVWRULFDOFRVWVSHUFODLP
FRQWUDFWXDO UHFRYHULHV IURP YHQGRUV DQG KLVWRULFDO DQG DQWLFLSDWHG UDWHV RI ZDUUDQW\ FODLPV LQFOXGLQJ SURGXFWLRQ DQG ZDUUDQW\
SDWWHUQV IRU QHZ PRGHOV  :H DVVHVV WKH DGHTXDF\ RI RXU UHFRUGHG ZDUUDQW\ OLDELOLW\ SHULRGLFDOO\ DQG DGMXVW WKH DPRXQWV DV
QHFHVVDU\$GGLWLRQDOO\ZHPD\HVWDEOLVKDZDUUDQW\OLDELOLW\UHODWHGWRWKHLVVXDQFHRIDLUFUDIWVHUYLFHEXOOHWLQVIRUDLUFUDIWQR
ORQJHUFRYHUHGXQGHUWKHOLPLWHGZDUUDQW\SURJUDPV
Research and Development Costs
2XUFXVWRPHUIXQGHGUHVHDUFKDQGGHYHORSPHQWFRVWVDUHFKDUJHGGLUHFWO\WRWKHUHODWHGFRQWUDFWVZKLFKSULPDULO\FRQVLVWRI86
*RYHUQPHQW FRQWUDFWV  ,Q DFFRUGDQFH ZLWK JRYHUQPHQW UHJXODWLRQV ZH UHFRYHU D SRUWLRQ RI FRPSDQ\IXQGHG UHVHDUFK DQG
GHYHORSPHQWFRVWVWKURXJKRYHUKHDGUDWHFKDUJHVRQRXU86*RYHUQPHQWFRQWUDFWV5HVHDUFKDQGGHYHORSPHQWFRVWVWKDWDUHQRW
UHLPEXUVDEOH XQGHU D FRQWUDFW ZLWK WKH 86 *RYHUQPHQW RU DQRWKHU FXVWRPHU DUH FKDUJHG WR H[SHQVH DV LQFXUUHG  &RPSDQ\
IXQGHGUHVHDUFKDQGGHYHORSPHQWFRVWVZHUHPLOOLRQPLOOLRQDQGPLOOLRQLQDQGUHVSHFWLYHO\
DQGDUHLQFOXGHGLQFRVWRIVDOHV
Income Taxes
'HIHUUHG LQFRPH WD[ EDODQFHV UHIOHFW WKH HIIHFWV RI WHPSRUDU\ GLIIHUHQFHV EHWZHHQ WKH ILQDQFLDO UHSRUWLQJ FDUU\LQJ DPRXQWV RI
DVVHWVDQGOLDELOLWLHVDQGWKHLUWD[EDVHVDVZHOODVIURPQHWRSHUDWLQJORVVHVDQGWD[FUHGLWFDUU\IRUZDUGVDQGDUHVWDWHGDWHQDFWHG
WD[UDWHVLQHIIHFWIRUWKH\HDUWD[HVDUHH[SHFWHGWREHSDLGRUUHFRYHUHG'HIHUUHGLQFRPHWD[DVVHWVUHSUHVHQWDPRXQWVDYDLODEOH
WRUHGXFHLQFRPHWD[HVSD\DEOHRQWD[DEOHLQFRPHLQIXWXUH\HDUV:HHYDOXDWHWKHUHFRYHUDELOLW\RIWKHVHIXWXUHWD[GHGXFWLRQV
DQGFUHGLWVE\DVVHVVLQJWKHDGHTXDF\RIIXWXUHH[SHFWHGWD[DEOHLQFRPHIURPDOOVRXUFHVLQFOXGLQJWKHIXWXUHUHYHUVDORIH[LVWLQJ
WD[DEOHWHPSRUDU\GLIIHUHQFHVWD[DEOHLQFRPHLQFDUU\EDFN\HDUVDYDLODEOHWD[ SODQQLQJ VWUDWHJLHV DQG HVWLPDWHGIXWXUHWD[DEOH
LQFRPH:HUHFRJQL]HQHWWD[UHODWHGLQWHUHVWDQGSHQDOWLHVIRUFRQWLQXLQJRSHUDWLRQVLQLQFRPHWD[H[SHQVH
New Accounting Pronouncements
,Q 0D\  WKH )LQDQFLDO $FFRXQWLQJ 6WDQGDUGV %RDUG )$6% LVVXHG $FFRXQWLQJ 6WDQGDUGV 8SGDWH $68 1R 
5HYHQXHIURP&RQWUDFWVZLWK&XVWRPHUVWKDWRXWOLQHVDFRPSUHKHQVLYHILYHVWHSUHYHQXHUHFRJQLWLRQPRGHOEDVHGRQWKHSULQFLSOH
WKDWDQHQWLW\VKRXOGUHFRJQL]HUHYHQXHWRGHSLFWWKHWUDQVIHURISURPLVHGJRRGVRUVHUYLFHVWRFXVWRPHUVLQDQDPRXQWWKDWUHIOHFWV
WKH FRQVLGHUDWLRQ WR ZKLFK WKH HQWLW\ H[SHFWV WR EH HQWLWOHG LQ H[FKDQJH IRU WKRVH JRRGV DQG VHUYLFHV ,Q -XO\ WKH )$6%
DSSURYHGDRQH\HDUGHIHUUDORIWKHHIIHFWLYHGDWHRIWKHVWDQGDUGWRWKHEHJLQQLQJRIIRUSXEOLFFRPSDQLHVZLWKDQRSWLRQ
WKDW ZRXOG SHUPLW FRPSDQLHV WR DGRSW WKH VWDQGDUG DV HDUO\ DV WKH RULJLQDO HIIHFWLYH GDWH RI  7KH QHZ VWDQGDUG PD\ EH
DGRSWHG HLWKHU UHWURVSHFWLYHO\ RU RQ D PRGLILHG UHWURVSHFWLYH EDVLV ZKHUHE\ LW ZRXOG EH DSSOLHG WR QHZ FRQWUDFWV DQG H[LVWLQJ
FRQWUDFWV ZLWK UHPDLQLQJ SHUIRUPDQFH REOLJDWLRQV DV RI WKH HIIHFWLYH GDWH ZLWK D FXPXODWLYH FDWFKXS DGMXVWPHQW UHFRUGHG WR
EHJLQQLQJUHWDLQHGHDUQLQJVDWWKHHIIHFWLYHGDWHIRUWKRVHFRQWUDFWV:HDUHFXUUHQWO\HYDOXDWLQJWKHLPSDFWVRIDGRSWLRQRQRXU
FRQVROLGDWHGILQDQFLDOSRVLWLRQUHVXOWVRIRSHUDWLRQVDQGUHODWHGGLVFORVXUHVDORQJZLWKWKHLPSOHPHQWDWLRQDSSURDFKWREHXVHG
Note 2. Business Acquisitions, Goodwill and Intangible Assets
2015 Acquisitions
'XULQJ  ZH PDGH DJJUHJDWH FDVK SD\PHQWV IRU DFTXLVLWLRQV RI  PLOOLRQ ZKLFK LQFOXGHG WKUHH EXVLQHVVHV ZLWKLQ RXU
,QGXVWULDODQG7H[WURQ$YLDWLRQVHJPHQWV
2014 Beechcraft Acquisition
2Q 0DUFK   ZH FRPSOHWHG WKH DFTXLVLWLRQ RI DOO RI WKH RXWVWDQGLQJ HTXLW\ LQWHUHVWV LQ %HHFK +ROGLQJV //& ZKLFK
LQFOXGHG%HHFKFUDIW&RUSRUDWLRQDQGRWKHUVXEVLGLDULHVFROOHFWLYHO\³%HHFKFUDIW´IRUDQDJJUHJDWHFDVKSD\PHQWRIELOOLRQ
7KHDFTXLVLWLRQRI%HHFKFUDIWDQGWKHIRUPDWLRQRIWKH7H[WURQ$YLDWLRQVHJPHQWKDVSURYLGHGLQFUHDVHGVFDOHDQGFRPSOHPHQWDU\
SURGXFW RIIHULQJV DOORZLQJ XV WR VWUHQJWKHQ RXU SRVLWLRQ DFURVV WKH DYLDWLRQ LQGXVWU\ DQG HQKDQFH RXU DELOLW\ WR VXSSRUW RXU
FXVWRPHUV:HILQDQFHGELOOLRQRIWKHSXUFKDVHSULFHZLWKWKHLVVXDQFHRIORQJWHUPGHEWDQGWKHUHPDLQLQJEDODQFHZDVSDLG
IURPFDVKRQKDQG
7(;7521$118$/5(3257