ADT 2005 Annual Report Download - page 211

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
20. Share Plans (Continued)
additional 15% of the employee’s payroll deduction. All shares purchased under the plan are purchased
on the open market by a designated broker.
The Company also maintains two other employee stock purchase plans for the benefit of
employees of certain qualified non-U.S. subsidiaries. Under one plan, eligible employees are granted
options to purchase shares at the end of three years of service at 85% of the market price at the time
of grant. As of September 30, 2005, there were approximately 2 million options outstanding and
7 million shares available for future issuance under this plan. All shares purchased under the other plan
are purchased on the open market.
The total compensation cost for all stock-based compensation awards was $84 million, $42 million
and $43 million for 2005, 2004 and 2003, respectively. Additionally, contributed surplus includes $142
and $115 million of unamortized compensation expense for 2005 and 2004, respectively.
21. Comprehensive Income
The components of accumulated other comprehensive (loss) income are as follows ($ in millions):
Unrealized
(Loss) Gain Accumulated
Unrealized on Derivative Minimum Other
Currency (Loss) Gain Financial Pension Comprehensive
Translation(1) on Securities(2) Instruments Liability (Loss) Income
Balance at September 30, 2002 .... $(898) $(5) $(1) $(685) $(1,589)
Pretax current period change . . . 1,446 4 3 (206) 1,247
Income tax (expense) benefit . . . — (2) — 71 69
Balance at September 30, 2003 .... 548 (3) 2 (820) (273)
Pretax current period change . . . 704 4 (5) 104 807
Income tax (expense) benefit . . . — (1) 1 (18) (18)
Balance at September 30, 2004 .... 1,252 — (2) (734) 516
Pretax current period change . . . (48) (4) 1 (279) (330)
Income tax benefit (expense) . . . — 1 (1) 79 79
Balance at September 30, 2005 .... $1,204 $(3) $(2) $(934) $ 265
(1) During the year ended September 30, 2005, $48 million was transferred from currency translation adjustments and included
in net income as a result of the sale of foreign entities. Of the $48 million gain, $30 million related to the TGN and is
included in ‘‘(Gains) losses and impairments on divestitures, net,’’ while $18 million is included in ‘‘(Loss) income from
discontinued operations.’’
(2) The year ended September 30, 2005 includes a reclassification of unrealized gains of $2 million related to the sale of certain
investments. The year ended September 30, 2004 includes unrealized losses of $4 million related to the other than temporary
impairment of investments.
2005 Financials 135