ADT 2005 Annual Report Download - page 187

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
13. Related Party Transactions (Continued)
on such loans was 3.44% and 1.73% for 2005 and 2004, respectively. Interest income on the remaining
interest bearing loans totaled $2 million, $1 million, and $1 million in 2005, 2004 and 2003, respectively.
Certain of the above loans totaling $20 million and $21 million at September 30, 2005 and 2004,
respectively, are non-interest bearing. The total non-interest bearing loans include loans to Mark A.
Belnick, the Company’s former Executive Vice President and Chief Corporate Counsel. The amount
outstanding under these loans at both September 30, 2005 and 2004 was $15 million and is expected to
be repaid in 2006.
Richard J. Meelia, the President of Tyco Healthcare, had an outstanding loan under the Key
Employee Loan Program. The rate of interest charged on such loan was 2.23% for 2003. The maximum
amount outstanding under this loan during 2003 was significantly less than $1 million and such loan
was repaid in full prior to September 30, 2003.
During the fourth quarter of 2002, the Board of Directors and new senior management adopted a
policy under which no new loans are allowed to be granted to any officers of the Company and existing
loans are not allowed to be extended or modified.
During 2005, the Company engaged in commercial transactions in the normal course of business
with companies where the Company’s Directors were employed and served as officers, including
Marsh & McLennan Companies, Inc., Brunswick Corporation, VF Corporation and Rohm and Haas
Company. Sandra S. Wijnberg, a Director, is an executive officer of Marsh & McLennan
Companies, Inc. George W. Buckley, a Director during such period, was an executive officer of
Brunswick Corporation. Mackey J. McDonald, a Director, is an executive officer of VF Corporation.
Rajiv L. Gupta, a Director, is an executive officer of Rohm and Haas Company. Purchases from Marsh
& McLennan Companies, Inc. during 2005 were approximately $23 million. Purchases from other
companies noted above during 2005 aggregated less than 1 percent of consolidated net revenue.
During 2004, the Company engaged in commercial transactions in the normal course of business
with companies where the Company’s Directors were employed and served as officers, including
Marsh & McLennan Companies, Inc., Brunswick Corporation and VF Corporation. Sandra S.
Wijnberg, a Director, is an executive officer of Marsh & McClennan Companies, Inc. George W.
Buckley, a Director during such period, was an executive officer of Brunswick Corporation. Mackey J.
McDonald, a Director, is an executive officer of VF Corporation. Purchases from Marsh & McLennan
Companies, Inc. during 2004 were approximately $22 million. Purchases from other companies noted
above during 2004 aggregated less than 1 percent of consolidated net revenue.
During 2003, the Company engaged in commercial transactions in the normal course of business
with companies where the Company’s Directors were employed and served as officers, including
Marsh & McLennan Companies, Inc., Brunswick Corporation, VF Corporation, Verizon
Communications, Inc., Imperial Chemical Industries PLC and MicroWarehouse, Inc. Sandra S.
Wijnberg, a Director, is an executive officer of Marsh & McClennan Companies, Inc. George W.
Buckley, a Director during such period, was an executive officer of Brunswick Corporation. Mackey J.
McDonald, a Director, is an executive officer of VF Corporation. Bruce S. Gordon, a Director, was an
officer of Verizon Communications, Inc. Brendan R. O’Neill and Jerome B. York, both Directors, were
executive officers of Imperial Chemical Industries PLC and MicroWarehouse, Inc., respectively, at the
time of these commercial transactions. Purchases from Marsh & McLennan Companies, Inc. and
Imperial Chemical Industries PLC during 2003 were approximately $18 million and $16 million,
2005 Financials 111