ADT 2000 Annual Report Download - page 62

SIXTY
The components of the accrued postretirement benefit obliga-
tion, all of which are unfunded, are as follows:
(I N MILLI ONS) 2 0 0 0 1 9 9 9
Benefit obligation at beginning of year $ 1 6 8 .2 $ 174.1
Service cost 1 .1 3.5
Interest cost 1 2 .7 12.0
Amendments (3 .1 ) 4.5
Actuarial gain (1 .7 ) (4.1)
Acquisition 8 .4 11.2
Curtailment gain (loss) 1 .7 (15.3)
Expected net benefits paid (1 9 .6 ) (17.8)
Currency fluctuation (gain) loss (0 .1 ) 0.1
Benefit obligation at end of year $ 1 6 7 .6 $ 168.2
Funded status $ (1 6 7 .6 ) $(168.2)
Unrecognized net gain (2 9 .6 ) (24.5)
Unrecognized prior service cost (1 1 .1 ) (13.8)
Accrued postretirement benefit cost $ (2 0 8 .3 ) $(206.5)
For measurement purposes, in Fiscal 2000, an 8.15% compos-
ite annual rate of increase in the per capita cost of covered health
care benefits was assumed. The rate was assumed to decrease grad-
ually to 5.00% by the year 2008 and remain at that level thereafter.
The health care cost trend rate assumption may have a significant
effect on the amounts reported. A one-percentage-point change in
assumed healthcare cost trend rates would have the following
effects:
1 -PERCENTAGE- 1 -PERCEN TAGE-
(I N MILLI ONS) POINT INCREASE POINT DECREASE
Effect on total of service and interest
cost components $ 0 .5 $ (0 .5 )
Effect on postretirement benefit obligation 6 .2 (5 .4 )
The combined weighted average discount rate used in deter-
mining the accumulated postretirement benefit obligation was
8.00% at September 30, 2000 (7.75% at September 30, 1999).
[1 9 ] Consolidated Segment Data
The Company’s reportable segments are strategic business units
that operate in different industries and are managed separately. Seg-
ment data have been presented on a basis consistent with how busi-
ness activities are reported internally to management. Certain
corporate expenses were allocated to each operating segment’s
operating income, based generally on net sales and other factors.
For additional information, including a description of the products
and services included in each segment, see Note 1.
Selected information by industry segment is presented below.
AS AT AND FOR THE
YEAR ENDED SEPTEMBER 3 0 ,
(I N MILLI ONS) 2 0 0 0 1 9 9 9 1 9 9 8
NET SALES:
Electronics $ 9 , 9 0 9 .8 $ 6,087.4 $ 5,787.3
Telecommunications 2 ,5 3 9 .7 1,623.8 1,280.0
Healthcare and Specialty
Products 6 ,4 6 7 .9 5,742.7 4,672.4
Fire and Security Services 6 ,0 7 6 .6 5,534.0 4,393.5
Flow Control Products
and Services 3 ,9 3 7 .9 3,508.6 2,928.5
$ 2 8 ,9 3 1 .9 $22,496.5 $19,061.7
OPERATING INCOME (LOSS):
Electronics $ 2 , 5 3 8 .6 (1) $ (225.9)(6 ) $ 403.1(9 )
Telecommunications 5 1 6 .6 (2) 325.1 268.3
Healthcare and Specialty
Products 1 ,4 3 9 .8 (3 ) 890.9(7 ) 389.3(1 0)
Fire and Security Services 1 ,0 4 0 . 5 (4) 934.2(8 ) 630.6
Flow Control Products
and Services 7 4 6 .9 605.5 456.9
6 ,2 8 2 .4 2,529.8 2,148.2
Less: Corporate expenses (4 6 3 .6 )(5) (122.9) (68.3)
Goodwill amortization
expense (3 4 4 .4 ) (216.1) (131.8)
$ 5 , 4 7 4 .4 $ 2,190.8 $ 1,948.1
TOTAL ASSETS:
Electronics $ 1 2 ,2 4 8 .1 $ 8,326.9 $ 4,995.1
Telecommunications 2 ,0 2 9 .9 2,392.2 1,366.8
Healthcare and Specialty
Products 8 ,9 2 5 .6 8,696.2 7,256.8
Fire and Security Services 9 ,2 9 8 . 5 8,219.4 6,606.2
Flow Control Products
and Services 5 ,7 4 8 .4 3,858.6 2,960.3
Corporate 2 ,1 5 3 .8 851.0 255.5
$ 4 0 ,4 0 4 .3 $32,344.3 $23,440.7
DEPRECIATION AND
AMORTIZATION:
Electronics $ 5 6 3 .0 $ 421.3 $ 430.0
Telecommunications 6 7 .4 47.1 36.5
Healthcare and Specialty
Products 3 3 0 .1 287.6 262.5
Fire and Security Services 5 3 1 .6 417.2 269.8
Flow Control Products
and Services 1 4 4 .7 130.0 120.0
Corporate 7 .6 8.0 18.9
$ 1 , 6 4 4 .4 $ 1,311.2 $ 1,137.7