E-Z-GO 1999 Annual Report Download - page 57

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Comprehensive Income
The components of Textron’s other comprehensive income for 1999, 1998, and 1997
were as follows:
(In millions) 1999 1998 1997
Currency translation adjustment
Beginning balance $(104) $ (71) $ 2
Change, net of income taxes (71) (33) (73)
AFS disposal 79 ––
Ending balance $ (96) $(104) $(71)
Unrealized gains (losses) on securities
Beginning balance $13 $13 $9
Gross unrealized gains (losses) arising during the period* –87
Reclassification adjustment for realized gains in net income** –(8) (3)
AFS disposal (Net of income tax expense of $8) (13) ––
Ending balance $ – $ 13 $ 13
Pension liability adjustment
Beginning balance $ (5) $ (4) $ (4)
Change, net of income taxes 3(1) –
Ending balance $ (2) $ (5) $ (4)
Accumulated other comprehensive income (loss)
Beginning balance $ (96) $ (62) $ 7
Other comprehensive income (loss) (2) (34) (69)
Ending balance $ (98) $ (96) $(62)
*Net of income tax expense (benefit) of $4 million and $4 million for 1998 and 1997, respectively.
**Net of income tax expense (benefit) of $4 million and $2 million for 1998 and 1997, respectively.
12. Rental expense approximated $94 million, $83 million, and $65 million in 1999, 1998,
and 1997, respectively. Future minimum rental commitments for noncancellable operat-
ing leases in effect at year-end 1999 approximated $80 million for 2000; $64 million for
2001; $44 million for 2002; $34 million for 2003; $29 million for 2004; and a total of
$185 million thereafter.
13. 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 programs, 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 1999, 1998, and 1997
were as follows:
(In millions) 1999 1998 1997
Company funded $257 $219 $222
Customer funded 413 394 380
Total research and development $670 $613 $602
14. Textron has defined benefit and defined contribution pension plans that together cover
substantially all employees. The costs of the defined contribution plans amounted to
approximately $40 million, $40 million, and $36 million in 1999, 1998 and 1997, respec-
tively. Defined benefits under salaried plans are based on salary and years of service.
Hourly plans generally provide benefits based on stated amounts for each year of service.
Textron’s funding policy is consistent with federal law and regulations. Pension plan
assets consist principally of corporate and government bonds and common stocks.
Textron offers health care and life insurance benefits for certain retired employees.
Pension
Benefits and
Postretirement
Benefits Other
Than Pensions
Research and
Development
Leases
1999 Textron Annual Report 55