E-Z-GO 2003 Annual Report Download - page 60

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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 $22 million in 2003,
$44 million in 2002 and $48 million in 2001. 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. 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 amounts recognized in the balance sheets for the pension and postre-
tirement benefit plans.
(In millions) 2002 2002
Benefit obligation at beginning of year $ 4,342 $ 675 $ 632
Service cost 105 99 7 4
Interest cost 283 278 41 45
Amendments 33 12 (41) 1
Plan participants’ contributions 4465
Actuarial losses 277 262 68 51
Benefits paid (297) (273) (76) (69)
Foreign exchange rate changes 68 51 1 1
Curtailments (2) 1 — 5
Benefit obligation at end of year $ 4,813 $ 4,342 $ 681 $ 675
Fair value of plan assets at beginning
of year $ 4,008 $ 4,480 $ — $ —
Actual return on plan assets 790 (275) — —
Employer contributions 29 23 — —
Plan participants’ contributions 4 4 — —
Benefits paid (297) (273) — —
Foreign exchange rate changes 49 49 — —
Fair value of plan assets at end of year $ 4,583 $ 4,008 $ — $ —
Funded status of plan $ (230) $ (334) $ (681) $ (675)
Unrecognized actuarial loss (gain) 839 892 137 77
Unrecognized prior service cost (benefit) 163 151 (46) (13)
Unrecognized transition net asset 2 (4) — —
Net amount recognized in the
balance sheet $ 774 $ 705 $ (590) $ (611)
Amounts recognized in the balance sheet consist of:
December 28, December 28,
(In millions) 2002 2002
Prepaid benefit cost asset $ 892 $ 820 $ — $ —
Accrued benefit liability (312) (270) (590) (611)
Intangible assets 4 5 — —
Accumulated OCL 190 150 — —
Net amount recognized $ 774 $ 705 $ (590) $ (611)
The accumulated benefit obligation for all defined benefit pension plans was $4,430 million and $3,989
million at January 3, 2004 and December 28, 2002, respectively.
58
$ 3,908