ADT 2006 Annual Report Download - page 185

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
14. Related Party Transactions (Continued)
non-interest bearing. The total non-interest bearing loans in 2005 include loans to Mark A. Belnick, the
Company’s former Executive Vice President and Chief Corporate Counsel. The amount outstanding
under these loans at September 30, 2005 was $15 million and was repaid in 2006.
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 2006, 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., VF Corporation and Rohm and Haas Company. Sandra S.
Wijnberg, a Director, was an executive officer of Marsh & McLennan Companies, Inc. prior to her
resignation from that company on March 31, 2006. 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 2006 were approximately
$16 million. Purchases from other companies noted above during 2006 aggregated less than 1 percent
of consolidated net revenue.
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 during such period, was 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 during such period, was 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.
In 2001, Tyco authorized compensation arrangements to L. Dennis Kozlowski and Mark H. Swartz,
the Company’s Chief Financial Officer and Director until August 2002. In connection with such
arrangements, Tyco purchased executive split dollar life insurance policies for Messrs. Kozlowski and
Swartz and entered into a shared ownership agreement with each of them whereby the Company
agreed to pay premiums for these insurance policies for an 11-year period beginning in 2001. In 2001,
amended policies were executed providing for additional Company-paid premiums. The Company is a
co-beneficiary of the policies, less amounts owed to Messrs. Kozlowski and Swartz. Messrs. Kozlowski
and Swartz are the beneficiaries of the cash surrender values of the policies plus the amount of any
unpaid premiums. The Company’s obligations under these arrangements were entered into in
recognition of services rendered by these officers and were not contingent upon continuing
2006 Financials 123