58
Textron Inc. Annual Report • 2013
Note 4. Inventories
Inventories are composedof the following:
(Inmillions)
December 28,
2013
December 29,
2012
Finishedgoods
$ 1,276 $ 1,329
Work in process
2,477 2,247
Rawmaterials and components
407
437
4,160 4,013
Progress/milestone payments
(1,197) (1,301)
Total
$ 2,963 $ 2,712
Inventories valued by the LIFOmethod totaled $1.3 billion and $1.1 billion at the end of 2013 and 2012, respectively, and the
carrying values of these inventories would have been higher by approximately $461 million and $435 million, respectively, had
our LIFO inventories been valued at current costs. Inventories related to long-term contracts, net of progress/milestone payments,
were $359million and$382million at the endof 2013 and2012, respectively.
Note 5. Property, Plant andEquipment, Net
OurManufacturinggroup’s property, plant and equipment, net are composedof the following:
(Dollars inmillions)
Useful Lives
(inyears)
December 28,
2013
December 29,
2012
Land and buildings
3 - 40
$ 1,636 $ 1,604
Machinery and equipment
1 - 20
4,042 3,822
5,678 5,426
Accumulateddepreciation and amortization
(3,463) (3,277)
Total
$ 2,215 $ 2,149
At the end of 2013 and 2012, assets under capital leases totaled $247million and $251million and had accumulated amortization
of $56 million and $51 million, respectively. The Manufacturing group’s depreciation expense, which included amortization
expense on capital leases, totaled $335million, $315million and$317million in2013, 2012 and2011, respectively.
Note 6. AccruedLiabilities
The accrued liabilities of ourManufacturing group are summarized below:
(Inmillions)
December 28,
2013
December 29,
2012
Customer deposits
$
888 $
725
Salaries, wages and employer taxes
246
282
Current portionofwarranty and productmaintenance contracts
142
180
Retirement plans
74
80
Other
538
689
Total
$ 1,888 $ 1,956
Changes inourwarranty andproductmaintenance contract liability are as follows:
(Inmillions)
2013
2012
2011
Accrual at beginning of year
$
222 $
224 $
242
Provision
299
255
223
Settlements
(293)
(250)
(223)
Adjustments to prior accrual estimates*
(5)
(7)
(18)
Accrual at endof year
$
223 $
222 $
224
*
Adjustments include changes toprior year estimates, new issues on prior year sales and currency translation adjustments.
