E-Z-GO 2001 Annual Report Download - page 55

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Postretirement Benefits
Pension Benefits Other than Pensions
December 29),December 30),December 29),December 30),
(In millions) 2001 2000 2001 2000
Change in plan assets
Fair value of plan assets at beginning of year $5,170 $5,342 $– $–
Actual return on plan assets (218) 77 ––
Employer contributions 22 41 ––
Plan participants’ contributions 44––
Net effect of acquisitions/dispositions (229) 3––
Benefits paid (258) (249) ––
Foreign exchange rate changes (11) (48) ––
Fair value of plan assets at end of year $4,480 $5,170 $– $–
Funded status of the plan $572 $1,229 $(632) $(612)
Unrecognized actuarial gain (133) (871) 26 (88)
Unrecognized prior service cost 162 154 (20) (15)
Unrecognized transition net asset (23) (43) ––
Net amount recognized in the balance sheet $578 $469 $(626) $(715)
Amounts recognized in the balance sheet consists of:
Prepaid benefit cost $745 $621 $– $–
Accrued benefit liability (171) (156) (626) (715)
Intangible asset 22––
Accumulated OCL 22––
Net amount recognized in the balance sheet $578 $469 $(626) $(715)
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the
pension plans with accumulated benefit obligations in excess of plan assets w ere $248 million, $209
million and $42 million, respectively, as of year-end 2001, and $199 million, $161 million and $10 million,
respectively, as of year-end 2000.
The following summarizes the net periodic benefit cost for the pension benefits and postretirement
benefits plans:
Postretirement Benefits
Pension Benefits Other than Pensions
December 29),December 30),January 2),December 29),December 30),January 2),
(In millions) 2001 2000 2000 2001 2000 2000
Components of net
periodic benefit cost
Service cost $109 $101 $ 109 $6 $6 $7
Interest cost 282 265 252 49 45 41
Expected return on plan assets (454) (423) (378) –––
Amortization of unrecognized
transition asset (17) (17) (17) –––
Recognized actuarial (gain)/loss (30) (24) 2 (2) (8) (10)
Recognized prior service cost 20 14 16 (6) (4) (4)
Curtailments (6) –– (5) (1) –
Net periodic benefit cost $(96) $(84) $ (16) $42 $38 $34
Recognized actuarial (gain)/loss on net pension benefits is being amortized over a tw elve-year period.
Major actuarial assumptions used in accounting for defined benefit pension plans are presented below.
December 29),December 30),January 1),January 2),
2001 2000 2000 1999
Discount rate 7.25)%7.50)%7.50)%6.75)%
Expected rate of return on plan assets 9.25)9.25 9.25 9.25
Annual rate of compensation increase 4.50)4.80 4.80 4.80
Postretirement benefit plan discount rates are the same as those used by Textron’s defined benefit
pension plans.
Textron Annual Report 53