E-Z-GO 2001 Annual Report Download - page 54

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Accumulated Other Comprehensive Loss (OCL)
The components of Textron’s accumulated OCL is as follow s:
Unrealized Deferred
Currency Gains Pension Losses
Translation (Losses) Liability on Hedge Accumulated
(In millions) Adjustment on Securities Adjustment Contracts OCL
Balance at January 2, 1999 $ (104) $ 13 $ (5) $ – $ (96)
Change, net of income taxes (71) – 3 – (68)
AFS disposal, net of income taxes 79 (13) – – 66
Balance at January 1, 2000 (96) – (2) – (98)
Change, net of income taxes (74) – – – (74)
Net unrealized losses*–(59) – – (59)
Reclassification adjustment*–59––59
Balance at December 30, 2000 (170) – (2) – (172)
Transition adjustment due to change
in accounting for derivative
instruments and hedging, net of taxes –––(15) (15)
Change, net of income taxes (31) 1 – (17) (47)
Automotive Trim disposal,
net of income taxes 11–––11
Net unrealized losses*–(6) – – (6)
Reclassification adjustment*–6––6
Balance at December 29, 2001 $(190) $ 1 $(2) $(32) $(223)
*Net of income tax benefit of $3 million and $31 million for 2001 and 2000, respectively.
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 $48 million in 2001,
$51 million in 2000 and $40 million in 1999. 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 w ith federal law and regulations. Pension plan assets consist princi-
pally of corporate and government bonds and common stocks. Textron offers health care and life insurance
benefits for certain retired employees.
The following summarizes the change in the benefit obligation; the change in plan assets; the funded
status; and reconciliation to the amount recognized in the balance sheet for the pension and postretire-
ment benefit plans:
Postretirement Benefits
Pension Benefits Other than Pensions
December 29),December 30),December 29),December 30),
(In millions) 2001 2000 2001 2000
Change in benefit obligation
Benefit obligation at beginning of year $3,941 $3,665 $612 $603
Service cost 109 101 66
Interest cost 282 265 49 45
Amendments 34 110 (14) (5)
Net effect of acquisitions/dispositions (220) 4(65) –
Plan participants’ contributions 4455
Actuarial losses 28 80 113 27
Benefits paid (258) (249) (70) (68)
Foreign exchange rate changes (11) (39) (1) –
Curtailments (1) –(3) (1)
Benefit obligation at end of year $3,908 $3,941 $632 $612
12. Pension
Benefits and
Postretirement
Benefits Other
Than Pensions
52 Textron Annual Report