E-Z-GO 2002 Annual Report Download - page 60

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Accumulated Other Comprehensive Loss (OCL)
Deferred
Unrealized Gains
Currency Gains Pension (Losses)
Translation (Losses) Liability on Hedge
(In millions) Adjustment on Securities Adjustment Contracts Total
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, 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)
Change, net of income taxes 78 2 (95) 13 (2)
Net unrealized losses* — (25) — — (25)
Reclassification adjustment* — 25 — — 25
Balance at December 28, 2002 $ (112) $ 3 $ (97) $ (19) $ (225)
* Net of income tax benefit of $13, $3 and $31 for 2002, 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 $44 million in 2002,
$48 million in 2001 and $51 million in 2000. 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 con-
sist principally 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 28, December 29, December 28, December 29,
(In millions) 2002 2001 2002 2001
Change in benefit obligation
Benefit obligation at beginning of year $ 3,908 $ 3,941 $ 632 $ 612
Service cost 99 109 4 6
Interest cost 278 282 45 49
Amendments 12 34 1 (14)
Net effect of acquisitions/dispositions — (220) — (65)
Plan participants’ contributions 4455
Actuarial losses 262 28 51 113
Benefits paid (273) (258) (69) (70)
Foreign exchange rate changes 51 (11) 1 (1)
Curtailments 1 (1) 5 (3)
Benefit obligation at end of year $ 4,342 $ 3,908 $ 675 $ 632
Note 13
Pension
Benefits and
Postretirement
Benefits Other
Than Pensions
58