ADT 2005 Annual Report Download - page 42

(4) The value of perquisites provided to Dr. Gromer was less than $50,000 during fiscal 2005. The value shown in the table for
fiscal 2005 includes the calculated incremental cost to the Company for Messrs. Breen, Lytton, Meelia and FitzPatrick for
their personal use of Company aircraft in the amounts of $131,805, $105,477, $27,696, and $292,720; respectively. The
amount for Mr. FitzPatrick reflects the Company’s agreement to pay his commuting costs for fiscal 2005. The amounts
shown in the table for Messrs. Lytton, Meelia, Lynch and FitzPatrick also include cash perquisite allowances of $67,500,
$70,000, $67,500 and $70,000, respectively, under the Company’s executive flexible perquisite allowance program. The actual
flexible perquisite allowance payment made to each executive was offset for the use of Company leased vehicles for
Messrs. Lytton and FitzPatrick in the amount of $23,416 and $5,434, respectively. The amounts shown in the table for
Messrs. Breen, Lytton, Meelia and FitzPatrick, include gross-ups in the amount of $54,602, $40,436, $36,221 and $28,128,
respectively, on universal life insurance and supplemental disability premium payments. The amount in the table for fiscal
2005 for Mr. Lynch also includes a gross-up in the amount of $53,974 on his relocation benefit.
(5) The value of perquisites provided to Dr. Gromer was less than $50,000 during fiscal 2004. The value shown in the table for
fiscal 2004 includes the calculated incremental cost to the Company for Messrs. Breen, Lytton, Meelia and FitzPatrick for
their personal use of Company aircraft in the amounts of $122,500, $94,830, $15,191 and $271,111 respectively. The amount
for Mr. FitzPatrick reflects the Company’s agreement to pay his commuting costs for fiscal 2004. In fiscal 2004,
Messrs. Breen, Lytton and FitzPatrick received certain additional compensation and related tax gross-ups, as provided in
their respective employment contracts, for reimbursement of the difference between the 2003 New York tax obligation and
the respective individual’s state tax obligation that would have been due had they worked at the Princeton, New Jersey office
location during the 2003 period. The amounts of these tax reimbursements were $70,300 for Mr. Breen, $9,773 for
Mr. Lytton and $10,829 for Mr. FitzPatrick. The related tax gross-up for this New York tax reimbursement equaled $44,795
for Mr. Breen, $6,677 for Mr. Lytton and $7,399 for Mr. FitzPatrick. The amounts shown in the table for Messrs. Lytton,
Meelia and FitzPatrick also include cash perquisite allowances of $66,250, $103,026, and $70,000, respectively, under the
Company’s executive flexible perquisite allowance program. Mr. Meelia’s perquisite allowance includes $33,026 paid during
fiscal 2004 for the fiscal 2003 perquisite allowance benefit. The actual flexible perquisite allowance payment made to each
executive was offset for the use of Company leased vehicles for Messrs. Lytton, Meelia and FitzPatrick, in the amount of
$23,416, $17,973 and $20,812, respectively. The amounts shown in the table for Messrs. Breen, Lytton, Meelia and
FitzPatrick include gross-ups in the amount of $34,341, $33,507, $20,570 and $37,952 respectively, on universal life insurance
and supplemental disability premium payments. The amount shown in the table for fiscal 2004 for Mr. FitzPatrick includes a
gross-up in the amount of $8,160 on taxes associated with legal fees incurred in 2002.
(6) The value of perquisites provided to Dr. Gromer was less than $50,000 during fiscal 2003. The value shown in the table for
fiscal 2003 includes the calculated incremental cost to the Company for Messrs. Breen, Lytton, Meelia and FitzPatrick for
their personal use of Company aircraft in the amounts of $220,070, $33,937, $13,954 and $543,606, respectively. The amount
for Mr. FitzPatrick reflects the Company’s agreement to pay his commuting costs for fiscal 2003. The amounts shown on the
table for fiscal 2003 for Messrs. Lytton and FitzPatrick include a tax gross-up related to legal fees accrued during fiscal 2003
for negotiation of their employment contracts in the amounts of $5,724 and $4,866, respectively, each in accordance with his
employment contract. Messrs. Breen, Lytton and FitzPatrick received in fiscal 2003 certain additional compensation and
related tax gross-ups, as provided in their respective employment contracts, due to their being located in the New York City
office prior to the corporate U.S. headquarters’ relocation to Princeton, New Jersey, for reimbursement of the difference
between the 2002 New York tax obligation and the respective individual’s state tax obligation that would have been due had
they worked at the new Princeton office location during this period. The amounts of these tax reimbursements were $79,993
for Mr. Breen, $3,919 for Mr. Lytton and $8,182 for Mr. FitzPatrick. The related tax gross-up for both this New York tax
reimbursement and the taxable value of Company-paid New York living expenses equaled $115,728 for Mr. Breen, $42,049
for Mr. Lytton and $65,075 for Mr. FitzPatrick. The amount in the table for fiscal 2003 for Mr. Lytton also includes a
gross-up in the amount of $8,762 on his relocation benefit. The amount shown in the table for fiscal 2003 for Mr. FitzPatrick
also includes a gross-up on relocation-related benefits in the amount of $415 and a gross-up in the amount of $18,156 on a
life insurance premium, as provided pursuant to his employment contract.
(7) Amounts set forth in the restricted stock award column represent the grant-date value ($35.80 per share) of time-based
restricted stock that was granted to Messrs. Breen, Lytton, Lynch and Meelia, Dr. Gromer and Mr. FitzPatrick on March 10,
2005. These shares are cliff vested at the end of three years. Shares held by Messrs. Breen, Lytton, Meelia, Lynch and
FitzPatrick receive dividends and have voting rights. Due to local country tax laws, Dr. Gromer’s award was in the form of
‘‘restricted stock units’’ (i.e., no shares will be issued to him until the date of vesting). Restricted stock units do not have
voting rights nor do they receive dividends or dividend equivalents. The value of all restricted shares and/or vested and
unvested Deferred Stock Units (‘‘DSUs’’) held by the Named Officers on September 30, 2005 is based on the average of the
high and low share prices on the NYSE on September 30, 2005 ($27.80) and is as follows: Mr. Breen—$48,107,451, which
includes 360,000 restricted shares and 1,370,484 DSUs; Mr. Lytton—$6,594,716, which includes 85,000 restricted shares and
152,220 DSUs; Dr. Gromer—$11,018,919, which includes 396,364 restricted share units; Mr. Meelia—$4,031,000, which
includes 145,000 restricted shares; Mr. Lynch—$4,309,000, which includes 155,000 restricted shares; and Mr. FitzPatrick—
$7,312,363, which includes 60,000 restricted shares and 203,035 DSUs. DSUs are a contractual obligation to receive shares in
the future; thus the value of all vested and unvested units are included in this total. The September 30, 2005 values set forth
24 2006 Proxy Statement