E-Z-GO 2004 Annual Report Download - page 78

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Accumulated Other Comprehensive Loss
Deferred
Unrealized Gains
Currency Gains Pension (Losses)
Translation (Losses) Liability on Hedge
(In millions)
Adjustment on Securities Adjustment Contracts Total
Balance at December 29, 2001 $ (190) $ 1 $ (2) $ (32) $ (223)
Other comprehensive income (loss), net of tax 78 2 (95) 13 (2)
Net unrealized losses, net of tax — (25) — — (25)
Reclassification adjustment, net of tax — 25 — — 25
Balance at December 28, 2002 $ (112) $ 3 $ (97) $ (19) $ (225)
Other comprehensive income (loss), net of tax 159 — (35) 37 161
Balance at January 3, 2004 $ 47 $ 3 $ (132) $ 18 $ (64)
Other comprehensive income (loss), net of tax 97 — (131) 4 (30)
Reclassification adjustment, net of tax — (3) — — (3)
Balance at January 1, 2005 $ 144 $ — $ (263) $ 22 $ (97)
Included in other comprehensive income (loss) is an income tax (expense) benefit of $(22) million, $3 million and $55 million in
2004, 2003 and 2002, respectively.
Note 12 Pension Benefits and Postretirement Benefits Other Than Pensions
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 $29 million in 2004, $22 million in 2003 and $44 million in 2002. 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 also offers health-
care and life insurance benefits for certain retired employees which are included in the “Postretirement Benefits Other Than Pen-
sions” caption.
The components of Textron’s net periodic benefit costs (income) are as follows:
Postretirement Benefits
Pension Benefits Other Than Pensions
(In millions)
2004 2003 2002 2004 2003 2002
Service cost $ 119 $ 105 $ 99 $ 9 $ 7 $ 4
Interest cost 291 283 278 39 41 45
Expected return on plan assets (431) (432) (454) — — —
Amortization of unrecognized transition
asset 1 (6) (17) — — —
Amortization of prior service cost 17 16 15 (10) (8) (4)
Amortization of net loss (gain) 7 2 (16) 9 4 3
Curtailments — — (6) (1) — 1
Net periodic benefit costs (income) $ 4 $ (32) $ (101) $ 46 $ 44 $ 49
Weighted-average assumptions
used to determine net periodic
benefit costs (income):
Discount rate 6.14% 6.61% 7.06% 6.25% 6.75% 7.25%
Expected long-term rate of return on
plan assets 8.65% 8.71% 8.72%———
Rate of compensation increase 4.20% 4.20% 4.50%———
57
Textron Inc.