E-Z-GO 2003 Annual Report Download - page 59

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57
Each outstanding share of Textron common stock has attached to it one-half of a preferred stock pur-
chase right. One preferred stock purchase right entitles the holder to buy one one-hundredth of a share
of Series C Junior Participating Preferred Stock at an exercise price of $250. The rights become exercis-
able only under certain circumstances related to a person or group acquiring or offering to acquire a
substantial block of Textron’s common stock. In certain circumstances, holders may acquire Textron
stock, or in some cases the stock of an acquiring entity, with a value equal to twice the exercise price.
The rights expire in September 2005 but may be redeemed earlier for $.05 per right.
A reconciliation of income from continuing operations and basic to diluted share amounts is presented
below.
2002 2001
(Dollars in millions, Average Average
shares in thousands) Income Shares Income Shares
Income from continuing
operations $ 281 $ 367 $ 474
Less: Preferred stock dividends — — (1)
Available to common
shareholders 281 135,875 367 138,745 473 141,050
Dilutive effect of convertible
preferred stock and stock
options — 1,342 — 1,507 1 1,887
Available to common
shareholders and
assumed conversions $ 281 137,217 $ 367 140,252 $ 474 142,937
(In millions)
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)
Change, net of income taxes 159 — (35) 37 161
Balance at January 3, 2004 $ 47 $ 3 $ (132) $ 18 $ (64)
* Net of income tax benefit of $13 in 2002 and $3 in 2001.