ADT 2005 Annual Report Download - page 205

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
18. Retirement Plans (Continued)
held $37 million of cash. Plan participants are general creditors of the Company with respect to these
benefits.
Postretirement Benefit Plans—The Company generally does not provide postretirement benefits
other than pensions for its employees. However, certain acquired operations provide these benefits to
employees who were eligible at the date of acquisition, and a small number of U.S. and Canadian
operations provide on-going eligibility for such benefits. The following tables exclude amounts related
to discontinued operations for all periods presented.
Net periodic postretirement benefit cost for 2005, 2004 and 2003 is as follows ($ in millions):
2005 2004 2003
Service cost .................................................. $ 3 $ 2 $ 2
Interest cost .................................................. 18 21 23
Amortization of prior service credit ................................. (6) (5) (4)
Amortization of net actuarial loss ..................................187
Curtailment/Settlement gain ...................................... — (3) (2)
Net periodic postretirement benefit cost ............................ $ 16 $ 23 $ 26
Weighted-average assumptions used to determine net postretirement benefit cost
during the period:
Discount rate ................................................. 5.52% 5.52% 6.75%
Rate of compensation increase .................................... 4.25% 4.25% 4.25%
The components of the accrued postretirement benefit obligations, substantially all of which are
unfunded, at September 30, 2005 and 2004, are as follows ($ in millions):
2005 2004
Change in benefit obligations:
Benefit obligation at beginning of year .................................... $380 $389
Service cost ....................................................... 3 2
Interest cost ....................................................... 18 21
Plan amendments ................................................... (15) (3)
Actuarial loss ...................................................... (34) (1)
Benefits paid ...................................................... (22) (28)
Plan curtailments ................................................... — (1)
Currency translation ................................................. 1 1
Benefit obligation at end of year ...................................... $331 $380
2005 Financials 129