E-Z-GO 2008 Annual Report Download - page 90

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Textron Inc.
adjustments to reflect the fair value of certain awards for which dividends are not paid or accrued until vested, and is remeasured at each reporting
period date.
Note 14. Retirement Plans
Our defined benefit and defined contribution plans cover substantially all of our employees. A significant number of our U.S.-based employees
participate in either the Textron Master Retirement Plan (TMRP) or the Bell Helicopter Textron Master Retirement Plan (BHTMRP), which are both
subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
The TMRP is a defined benefit pension plan that includes a defined contribution component created in 2007 called the Retirement Account Plan
(RAP), which covers a portion of participants in the TMRP and BHTMRP. Under the RAP, participants may not make contributions to the plan but
are eligible to receive contributions from Textron of 2% of their eligible compensation. Participants in the RAP may receive pension benefits from
the TMRP or the BHTMRP that are reduced by benefits received under the RAP. We also have funded and unfunded defined benefit pension plans
that cover certain of our U.S. and foreign employees.
Several defined contribution plans also are sponsored by our various businesses. The largest such plan is the Textron Savings Plan, which is a
qualified 401(k) plan subject to ERISA in which a significant number of our U.S.-based employees participate. Our defined contribution plans cost
approximately $110 million in 2008, $82 million in 2007 and $46 million in 2006. The increase in cost in 2007 and 2008 primarily relates to
contributions to the RAP and a higher employee base, largely due to acquisitions.
We also provide postretirement benefits other than pensions for certain retired employees in the U.S., which include healthcare, dental care,
Medicare Part B reimbursement and life insurance benefits.
Periodic Benefit Cost (Income)
The components of our net periodic benefit cost (income) and other amounts recognized in other comprehensive income are as follows:
Postretirement Benefits
Pension Benefits Other than Pensions
(In millions) 2008 2007 2006 2008 2007 2006
Net periodic benefit cost (income):
Service cost $ 141 $ 127 $ 135 $ 8 $ 8 $ 9
Interest cost 302 271 263 40 39 38
Expected return on plan assets (404) (369) (360) — — —
Amortization of unrecognized transition asset — — 1 — — —
Amortization of prior service cost (credit) 19 18 19 (5) (4) (5)
Amortization of net loss 19 40 34 15 20 20
Net periodic benefit cost $ 77 $ 87 $ 92 $ 58 $ 63 $ 62
Other changes in plan assets and benefit
obligations recognized in other comprehensive
loss (including foreign exchange):
Amortization of net loss $ (19) $ (40) $ (34) $ (15) $ (20) $ (20)
Net loss (gain) arising during the year 1,329 (30) 546 (32) (52) 254
Amortization of prior service (cost) credit (19) (18) (19) 5 4 5
Prior service cost (credit) arising during the year 7 44 178 (27) (5) (17)
Total recognized in other comprehensive loss (income) $ 1,298 $ (44) $ 671 $ (69) $ (73) $ 222
Total recognized in net periodic benefit cost and other
comprehensive loss (income) $ 1,375 $ 43 $ 763 $ (11) $ (10) $ 284
We estimate that the net loss and prior service cost for the defined benefit pension plans that will be amortized from other comprehensive income
into net periodic benefit costs in 2009 will be $24 million and $19 million, respectively. The estimated net loss and prior service credit for
postretirement benefits other than pensions that will be amortized from other comprehensive income into net periodic benefit costs in 2009 will be
$9 million and $(6) million, respectively. Other comprehensive loss (income) also includes $(9) million, $(13) million and $(11) million of
amortization of net loss and prior service cost and $(12) million, $(31) million and $48 million of net (gain) loss and prior service costs arising
during 2008, 2007 and 2006, respectively, related to discontinued operations.
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