E-Z-GO 2005 Annual Report Download - page 83

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63
The components of Textron’s net periodic benefit cost (income) are as follows:
Postretirement Benefits
Pension Benefits Other Than Pensions
(In millions)
2005 2004 2003 2005 2004 2003
Service cost $ 129 $ 106 $ 93 $ 9 $ 8 $ 6
Interest cost 271 265 259 37 37 39
Expected return on plan assets (387) (400) (403) — — —
Amortization of unrecognized transition asset 1 1 (6) — — —
Amortization of prior service cost 18 16 15 (6) (9) (8)
Amortization of net loss 35 7 2 13 9 5
Net periodic benefit cost (income) $ 67 $ (5) $ (40) $ 53 $ 45 $ 42
Weighted-average assumptions
used to determine net periodic
benefit cost (income):
Discount rate 5.69% 6.17% 6.65% 5.78% 6.31% 6.75%
Expected long-term rate of return on plan assets 8.57% 8.72% 8.78% — — —
Rate of compensation increase 4.35% 4.33% 4.20% — — —
Obligations and Funded Status
The following summarizes the changes in the benefit obligation and in the fair value of plan assets and provides a reconciliation of the funded
status to the amounts recognized in the balance sheet for the pension and postretirement benefit plans, along with the assumptions used to deter-
mine benefit obligations:
Notes to the Consolidated Financial Statements