E-Z-GO 2000 Annual Report Download - page 52

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Income per Common Share
A reconciliation of income from continuing operations and basic to diluted share amounts is
presented below.
For the years ended December 30, 2000 January 1, 2000 January 2, 1999
(Dollars in millions,Average Average Average
shares in thousands) Income Shares Income Shares Income Shares
Income from continuing operations $277 $623 $443
Less: Preferred stock dividends –(1) (1)
Basic
Available to common shareholders 277 143,923 622 150,389 442 161,254
Dilutive effect of convertible
preferred stock and stock options –2,227 1 3,365 1 4,120
Diluted
Available to common shareholders
and assumed conversions $277 146,150 $623 153,754 $443 165,374
Comprehensive Income
The components of Textron’s other comprehensive income (loss) for 2000, 1999 and 1998 were
as follows:
(In millions) 2000 1999 1998
Currency translation adjustment
Beginning balance $ (96) $(104) $ (71)
Change, net of income taxes (74) (71) (33)
AFS disposal –79 –
Ending balance $(170) $ (96) $(104)
Unrealized gains (losses) on securities
Beginning balance $ –$13 $13
Net unrealized gains (losses) arising during the period* (59) –8
Reclassification adjustment for realized (gains) losses in net income* 59 – (8)
AFS disposal (net of income tax expense of $8) –(13) –
Ending balance $ –$– $13
Pension liability adjustment
Beginning balance $ (2) $ (5) $ (4)
Change, net of income taxes –3 (1)
Ending balance $ (2) $ (2) $ (5)
Accumulated other comprehensive loss
Beginning balance $ (98) $ (96) $ (62)
Other comprehensive loss (74) (2) (34)
Ending balance $(172) $ (98) $ (96)
**Net of income tax expense (benefit) of $(31) million and $4 million for 2000 and 1998, respectively.
Rental expense approximated $101 million, $94 million and $83 million in 2000, 1999 and 1998,
respectively. Future minimum rental commitments for noncancellable operating leases in effect at
year-end 2000 approximated $83 million for 2001; $65 million for 2002; $46 million for 2003; $33
million for 2004; $22 million for 2005; and a total of $186 million thereafter.
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 Development14
Leases13
TEXTRON 2000 ANNUAL REPORT 50