E-Z-GO 2007 Annual Report Download - page 83

Download and view the complete annual report

Please find page 83 of the 2007 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

Notes to the Consolidated Financial Statements
62
Note 12. Retirement Plans
Our defi ned benefi t and defi ned contribution plans cover substantially all of our employees. A signifi cant number of our U.S.-based employees
participate in the Textron Master Retirement Plan (“TMRP”) and the Bell Helicopter Textron Master Retirement Plan (“BHTMRP”), which are
subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).
The TMRP is a defi ned benefi t pension plan that includes a new defi ned contribution component called the Retirement Account Plan (“RAP”),
which covers a portion of participants in the TMRP and BHTMRP, and was created in 2007. Under the RAP, participants are eligible to receive 2%
of their annual compensation in contributions from Textron. Participants in the RAP may not make contributions to the plan. Participants in the
RAP may receive pension benefi ts from the TMRP or the BHTMRP that are reduced by benefi ts received under the RAP. We also have funded and
unfunded defi ned benefi t pension plans that cover certain of our U.S. and foreign employees.
Several defi ned contribution plans also are sponsored by our various businesses. The largest such plan is the Textron Savings Plan (“TSP”),
which is a qualifi ed 401(k) plan subject to ERISA in which a signifi cant number of our U.S.-based employees participate. Our defi ned contribution
plans cost approximately $85 million in 2007, $50 million in 2006 and $45 million in 2005. The increase in cost in 2007 primarily relates to
contributions of $24 million to the RAP and a higher employee base, largely due to acquisitions.
We also provide postretirement benefi ts other than pensions for certain retired employees in the U.S. and South Africa, which include healthcare,
dental care, Medicare Part B reimbursement and life insurance benefi ts.
Periodic Benefi t Cost (Income)
The components of our net periodic benefi t cost (income) and other amounts we recognized in other comprehensive income are as follows:
Postretirement Benefi ts
Pension Benefi ts Other than Pensions
(In millions) 2007 2006 2005 2007 2006 2005
Net periodic benefi t cost (income):
Service cost $ 134 $ 142 $ 129 $ 9 $ 10 $ 9
Interest cost 294 283 271 41 40 37
Expected return on plan assets (398) (386) (387) — — —
Amortization of unrecognized transition asset — 1 1 — — —
Amortization of prior service cost (credit) 18 19 18 (5) (5) (6)
Amortization of net loss 50 44 35 22 19 13
Net periodic benefi t cost $ 98 $ 103 $ 67 $ 67 $ 64 $ 53
Other changes in plan assets and benefi t
obligations recognized in other comprehensive
loss (including foreign exchange):
Amortization of net loss $ (50) $ (44) $ (35) $ (22) $ (19) $ (13)
Net (gain) loss arising during the year (62) 582 (14) (51) 265 13
Amortization of prior service cost (credit) (18) (19) (18) 5 5 6
Prior service cost (credit) arising during the year 44 179 18 (5) (17) (6)
Total recognized in other comprehensive
(income) loss $ (86) $ 698 $ (49) $ (73) $ 234 $ —
Total recognized in net periodic benefi t cost
and other comprehensive loss (income) $ 12 $ 801 $ 18 $ (6) $ 298 $ 53
We estimate that the net loss and prior service cost for the defi ned benefi t pension plans that will be amortized from other comprehensive income
into net periodic benefi t costs in 2008 will be $17 million and $18 million, respectively. The estimated net loss and prior service credit for
postretirement benefi ts other than pensions that will be amortized from other comprehensive income into net periodic benefi t costs in 2008 will
be $16 million and $(4) million, respectively.