E-Z-GO 2010 Annual Report Download - page 88

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76
The table below presents a reconciliation of the beginning and ending balances for fair value measurements that use significant
unobservable inputs (Level 3) by major category:
(In millions)
Hedge Funds
Private Equity
Partnerships
Real Estate
Balance at beginning of year
$ —
$ 313
$ 301
Actual return on plan assets:
Related to assets still held at reporting date
1
13
7
Related to assets sold during the period
—
28
—
Purchases, sales and settlements, net 100 (30) 29
Balance at end of year
$ 101
$ 324
$ 337
Estimated Future Cash Flow Impact
Defined benefits under salaried plans are based on salary and years of service. Hourly plans generally provide benefits based on stated
amounts for each year of service. Our funding policy is consistent with applicable laws and regulations. In 2011, we expect to
contribute approximately $220 million to fund our qualified pension plans, non-qualified plans and foreign plans. Additionally, we
expect to contribute $30 million to the RAP. We do not expect to contribute to our other postretirement benefit plans. Benefit
payments provided below reflect expected future employee service, as appropriate, and are expected to be paid, net of estimated
participant contributions. Benefit payments do not include the Medicare Part D subsidy we expect to receive. Benefit payments are
based on the same assumptions used to measure our benefit obligation at the end of fiscal 2010. While pension benefit payments
primarily will be paid out of qualified pension trusts, we will pay postretirement benefits other than pensions out of our general
corporate assets as follows:
(In millions)
Pension
Benefits
Post-
retirement
Benefits
Other than
Pensions
Expected
Medicare
Part D
Subsidy
2011
$ 344
$ 64
$ (3)
2012
350
63
(3)
2013
354
63
(3)
2014
360
62
(2)
2015
365
60
(2)
2016 – 2020
1,960
264
(10)
Note 14. Income Taxes
We conduct business globally and, as a result, file numerous consolidated and separate income tax returns within and outside the U.S.
For all of our U.S. subsidiaries, we file a consolidated federal income tax return. Income (loss) from continuing operations before
income taxes is as follows:
(In millions)
2010
2009
2008
U.S.
$ (63)
$ (229)
$ 598
Non-U.S.
149
80
31
Total income (loss) from continuing operations before income taxes
$ 86
$ (149)
$ 629
Income tax expense (benefit) for continuing operations is summarized as follows:
(In millions)
2010
2009
2008
Current:
Federal
$ (79)
$ 160
$ 317
State
3
17
16
Non-U.S.
19
(8)
14
(57)
169
347
Deferred:
Federal
59
(238)
(61)
State
(5)
(22)
5
Non-U.S.
(3)
15
14
51
(245)
(42)
Income tax expense (benefit)
$ (6)
$ (76)
$ 305