E-Z-GO 2007 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 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

Textron Inc.
Obligations and Funded Status
All of our plans are measured as of our fi scal year-end. The changes in the projected benefi t obligation and in the fair value of plan assets, along
with our funded status, are as follows:
Postretirement Benefi ts
Pension Benefi ts Other than Pensions
(In millions) 2007 2006 2007 2006
Change in benefi t obligation:
Benefi t obligation at beginning of year $ 5,382 $ 5,119 $ 750 $ 744
Service cost 134 142 9 10
Interest cost 294 283 41 40
Amendments 44 18 (5) 6
Plan participants’ contributions 3 3 4 5
Actuarial (gains) losses (146) 39 7 12
Benefi ts paid (293) (288) (70) (67)
Effect of acquisitions 198 — 16 —
Foreign exchange rate changes 28 66 — —
Benefi t obligation at end of year $ 5,644 $ 5,382 $ 752 $ 750
Change in fair value of plan assets:
Fair value of plan assets at beginning of year $ 5,147 $ 4,746 $ — $ —
Actual return on plan assets 378 595 — —
Employer contributions 41 33 — —
Plan participants’ contributions 3 3 — —
Benefi ts paid (293) (288) — —
Effect of acquisitions 158 — — —
Foreign exchange rate changes 19 58 — —
Fair value of plan assets at end of year $ 5,453 $ 5,147 $ — $ —
Funded status at end of year $ (191) $ (235) $ (752) $ (750)
Amounts recognized in our Consolidated Balance Sheets are as follows:
Postretirement Benefi ts
Pension Benefi ts Other than Pensions
(In millions) 2007 2006 2007 2006
Non-current assets $ 317 $ 294 $ — $ —
Current liabilities (16) (13) (70) (79)
Non-current liabilities (492) (516) (682) (671)
Recognized in accumulated other comprehensive income (loss):
Net loss 636 748 173 246
Prior service cost (credit) 186 160 (12) (12)
In October 2006, we transferred $281 million of plan assets from the TMRP to a plan established by the purchaser of our Fastening Systems
business. This settled our obligation to the U.S.-based employees of this business. Upon this transfer, we recognized a settlement loss of
$35 million, which is included in discontinued operations. Obligations related to the Fastening Systems business’ foreign plans were assumed
by the purchaser.
63