E-Z-GO 2009 Annual Report Download - page 86

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Textron Inc.
Obligations and Funded Status
All of our plans are measured as of our fiscal year-end. The changes in the projected benefit obligation and in the fair value of plan assets, along
with our funded status, are as follows:
Postretirement Benefits
Pension Benefits Other than Pensions
(In millions) 2009 2008 2009 2008
Change in benefit obligation:
Benefit obligation at beginning of year $ 5,088 $ 5,202 $ 636 $ 714
Service cost 116 141 8 8
Interest cost 310 302 38 40
Amendments 26 8 2 (27)
Plan participants’ contributions — — 5 5
Actuarial losses (gains) (42) (205) 22 (31)
Benefits paid (300) (295) (67) (73)
Foreign exchange rate changes 29 (52) — —
Curtailments (1) (13) 2 —
Benefit obligation at end of year $ 5,226 $ 5,088 $ 646 $ 636
Change in fair value of plan assets:
Fair value of plan assets at beginning of year $ 3,574 $ 5,026 $ — $ —
Actual return on plan assets 473 (1,139) — —
Employer contributions 51 41 — —
Benefits paid (300) (295) — —
Dispositions (40) — — —
Foreign exchange rate changes 25 (59) — —
Fair value of plan assets at end of year $ 3,783 $ 3,574 $ — $ —
Funded status at end of year $ (1,443) $ (1,514) $ (646) $ (636)
Amounts recognized in our balance sheets for continuing operations are as follows:
Postretirement Benefits
Pension Benefits Other than Pensions
(In millions) 2009 2008 2009 2008
Non-current assets $ 51 $ 47 $ — $ —
Current liabilities (22) (18) (63) (63)
Non-current liabilities (1,472) (1,543) (583) (573)
Recognized in accumulated other comprehensive loss:
Net loss 1,851 1,844 131 115
Prior service cost (credit) 150 172 (23) (35)
Assumptions
The weighted-average assumptions we use for our pension and postretirement plans are as follows:
Postretirement Benefits
Pension Benefits Other than Pensions
2009 2008 2007 2009 2008 2007
Net periodic benefit cost:
Discount rate 6.61% 5.99% 5.63% 6.25% 6.00% 5.66%
Expected long-term rate of return on assets 8.58% 8.66% 8.63% — — —
Rate of compensation increase 4.36% 4.48% 4.45% — — —
Benefit obligations at year-end:
Discount rate 6.19% 6.28% 5.99% 5.50% 6.25% 6.00%
Rate of compensation increases 4.00% 4.47% 4.44% — — —
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