E-Z-GO 1998 Annual Report Download - page 53

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Other Comprehensive Income
(In millions) 1998 1997 1996
Currency translation adjustment
Beginning balance $ (71) $ 2 $ (33)
Change, net of income taxes (33) (73) 35
Ending balance $(104) $(71) $ 2
Unrealized gains (losses) on securities
Beginning balance $13 $ 9 $ 164
Gross unrealized gains (losses)
arising during the period* 87 (148)
Reclassification adjustment
for realized gains in net income** (8) (3) (7)
Net unrealized gains (losses) –4 (155)
Ending balance $13 $13 $ 9
Pension liability adjustment
Beginning balance $ (4) $ (4) $ (2)
Change, net of income taxes (1) – (2)
Ending balance $ (5) $ (4) $ (4)
Accumulated other comprehensive
income (loss)
Beginning balance $ (62) $ 7 $ 129
Other comprehensive income (loss) (34) (69) (122)
Ending balance $ (96) $(62) $ 7
*Net of income tax expense (benefit) of $4 million, $4 million, and $(100) million for 1998, 1997, and 1996, respectively.
**Net of income tax expense (benefit) of $4 million, $2 million, and $4 million for 1998, 1997, and 1996, respectively.
11. Rental expense approximated $82 million, $65 million, and $54 million 1998, 1997, and
1996, respectively. Future minimum rental commitments for noncancellable operating
leases in effect at year-end 1998 approximated $67 million for 1999; $54 million for 2000;
$39 million for 2001; $27 million for 2002; $23 million for 2003; and a total of $172 million
thereafter.
12. Textron carries out research and development for itself and under contracts with others,
primarily the U.S. Government. Company initiated programs include independent
research and development related to government products and services, a significant
portion of which is recoverable from the U.S. Government through overhead cost
allowances.
Research and development costs for which Textron is responsible are expensed as
incurred. These company funded costs include amounts for company initiated pro-
grams, the cost sharing portions of customer initiated programs, and losses incurred
on customer initiated programs. The company funded and customer funded research
and development costs for 1998, 1997, and 1996 were as follows:
(In millions)
1998 1997 1996
Company funded $219 $222 $185
Customer funded 394 380 391
Total research and development $613 $602 $576
Research and
Development
Leases
1998 TEXTRON ANNUAL REPORT 49