E-Z-GO 2003 Annual Report Download - page 61

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59
The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the
pension plans with an accumulated benefit obligation in excess of plan assets were $798 million, $716
million and $417 million, respectively, as of January 3, 2004 and $714 million, $618 million and $365 mil-
lion, respectively, as of December 28, 2002.
(In millions) 2002 2001 2002 2001
Service cost $ 105 $ 99 $ 109 $ 7 $ 4 $ 6
Interest cost 283 278 282 41 45 49
Expected return on
plan assets (432) (454) (454) — — —
Amortization of
unrecognized
transition asset (6) (17) (17) — — —
Amortization of prior
service cost 16 15 20 (8) (4) (6)
Amortization of net
(gain) loss 2 (16) (30) 4 3 (2)
Curtailments — (6) (6) — 1 (5)
Net periodic benefit
costs $ (32) $ (101) $ (96) $ 44 $ 49 $ 42
Increase in minimum
liability included
in OCL $40$150$—$—$—$—
2002 2002
Discount rate 6.25% 6.75% 6.25% 6.75%
Rate of compensation increase 4.20% 4.20% — —
(In millions) 2002 2001 2002 2001
Discount rate 6.75% 7.25% 7.50% 6.75% 7.25% 7.50%
Expected long-term
rate of return
on plan assets 8.90% 9.25% 9.25% — — —
Rate of compensation
increase 4.20% 4.50% 4.80% — — —
For measurement purposes, Textron assumed an annual healthcare cost trend rate of 10% for covered
healthcare benefits in 2004. The rate was assumed to decrease gradually to 5% in 2009 and remain at
that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts
reported for the health care plans. A one-percentage-point change in assumed health care cost trend
rates would have the following effects:
Effect on total of service and interest cost components $ 5 $ (3)
Effect on postretirement benefit obligations other than pensions $ 49 $ (43)