E-Z-GO 2005 Annual Report Download - page 84

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Postretirement Benefits
Pension Benefits Other Than Pensions
(In millions)
2005 2004 2005 2004
Change in benefit obligation:
Beginning balance $ 4,931 $ 4,373 $ 658 $ 654
Service cost 129 106 9 8
Interest cost 271 265 37 37
Amendments 16 1 1 3
Plan participants’ contributions 3356
Actuarial losses 97 408 108 24
Benefits paid (277) (273) (73) (74)
Foreign exchange rate changes (51) 48 (1) 1
Curtailments — — — (1)
Ending balance $ 5,119 $ 4,931 $ 744 $ 658
Change in fair value of plan assets:
Beginning balance $ 4,537 $ 4,246 $ — $ —
Actual return on plan assets 506 490 — —
Employer contributions 20 34 — —
Plan participants’ contributions 3 3 — —
Benefits paid (277) (273) — —
Foreign exchange rate changes (43) 37 — —
Ending balance $ 4,746 $ 4,537 $ — $ —
Reconciliation of funded status:
Funded status $ (373) $ (394) $ (744) $ (658)
Unrecognized actuarial loss 1,002 1,105 253 161
Unrecognized prior service cost (benefit) 160 136 (24) (30)
Unrecognized transition net asset 1 1 — —
Net amount recognized $ 790 $ 848 $ (515) $ (527)
Amounts recognized in the balance sheet consist of:
Prepaid benefit cost asset $ 849 $ 811 $ — $ —
Accrued benefit liability (326) (281) (515) (527)
Intangible assets 57 59 — —
Accumulated other comprehensive loss 210 259 — —
Net amount recognized $ 790 $ 848 $ (515) $ (527)
Weighted-average assumptions used to
determine benefit obligations at year-end:
Discount rate 5.55% 5.69% 5.66% 5.78%
Rate of compensation increase 4.36% 4.35% — —
Pension Benefits
The accumulated benefit obligation for all defined benefit pension plans was $4.7 billion at December 31, 2005 and $5.0 billion at January 1,
2005. Pension plans with accumulated benefit obligations exceeding the fair value of plan assets were as follows at year-end:
(In millions)
2005 2004
Projected benefit obligation $ 2,202 $ 1,765
Accumulated benefit obligation $ 1,949 $ 1,580
Fair value of plan assets $ 1,643 $ 1,323
In addition to the plans in the above table, at January 1, 2005 Textron had plans with an aggregate fair value of plan assets of $40 million, a pro-
jected benefit obligation of $63 million and an accumulated benefit obligation of $41 million.
64
Textron Inc.