E-Z-GO 2006 Annual Report Download - page 77

Download and view the complete annual report

Please find page 77 of the 2006 E-Z-GO annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

56
Note 10. Shareholders’ Equity
Capital Stock
We have authorization for 15,000,000 shares of preferred stock and 500,000,000 shares of 12.5 cent per share par value common stock. Each
share of $2.08 Preferred Stock ($23.63 approximate stated value) is convertible into 4.4 shares of common stock, and we can redeem it for $50
per share. Each share of $1.40 Preferred Dividend Stock ($11.82 approximate stated value) is convertible into 3.6 shares of common stock, and
we can redeem it for $45 per share.
Reserved Shares of Common Stock
At the end of 2006, common stock reserved for the subsequent conversion of preferred stock and shares reserved for the exercise of stock options
were 2,546,000 and 5,420,000, respectively.
Income per Common Share
A reconciliation of income from continuing operations and basic to diluted share amounts is presented below:
2006 2005 2004
Average Average Average
(Dollars in millions, shares in thousands)
Income Shares Income Shares Income Shares
Income from continuing operations
available to common shareholders $ 706 127,549 $ 516 133,531 $ 375 137,337
Dilutive effect of convertible preferred
stock and stock options — 2,673 — 2,915 — 2,832
Available to common shareholders and
assumed conversions $ 706 130,222 $ 516 136,446 $ 375 140,169
Accumulated Other Comprehensive Loss
The components of accumulated other comprehensive loss are presented below:
Pension Deferred
Unrealized and Post- Gains
Currency Gains retirement (Losses)
Translation (Losses) Benefits on Hedge
(In millions)
Adjustment on Securities Adjustments Contracts Total
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)
Other comprehensive income (loss), net of tax (17) — 34 2 19
Balance at December 31, 2005 $ 127 $ — $ (229) $ 24 $ (78)
Transition adjustment due to change in accounting,
net of taxes — — (647) — (647)
Other comprehensive income (loss), net of tax 45 — 58 (5) 98
Reclassification due to sale of Fastening Systems,
net of tax (47) — 39 — (8)
Reclassification adjustment, net of tax — — — (9) (9)
Balance at December 30, 2006 $ 125 $ — $ (779) $ 10 $ (644)
Included in other comprehensive income (loss) is an income tax benefit (expense) of $359 million, $(12) million and $(22) million in 2006, 2005
and 2004, respectively. In 2006, pension and postretirement benefit adjustments included a $348 million income tax benefit related to the transi-
tion adjustment due to the adoption of SFAS No. 158.
Notes to the Consolidated Financial Statements