ADT 2006 Annual Report Download - page 201

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
19. Retirement Plans (Continued)
The change in benefit obligations, plan assets and the amounts recognized on the Consolidated
Balance Sheets for all U.S. and non-U.S. defined benefit plans at September 29, 2006 and
September 30, 2005 is as follows ($ in millions):
U.S. Plans Non-U.S. Plans
2006 2005 2006 2005
Change in benefit obligations:
Benefit obligations at end of prior year .......................... $2,478 $2,222 $ 3,235 $ 2,770
Effect of change in measurement date .......................... — 11 — (8)
Benefit obligations at beginning of period ........................ 2,478 2,233 3,235 2,762
Service cost ............................................ 25 21 117 106
Interest cost ............................................ 127 128 137 136
Employee contributions .................................... — — 13 10
Plan amendments ........................................ 2 4 (16) (43)
Actuarial (gain) loss ....................................... (107) 233 29 354
Benefits and administrative expenses paid ........................ (144) (140) (107) (104)
New plans ............................................. — — — 100
Plan settlements, curtailments and special termination benefits .......... (3) (1) (1) (5)
Currency translation ...................................... — — 167 (81)
Benefit obligations at end of period .......................... $2,378 $2,478 $ 3,574 $ 3,235
Change in plan assets:
Fair value of plan assets at end of prior year ...................... $2,126 $1,993 $ 1,952 $ 1,591
Effect of change in measurement date .......................... — (338) — (33)
Fair value of plan assets at beginning of period .................... 2,126 1,655 1,952 1,558
Actual return on plan assets ................................. 168 246 188 260
Employer contributions .................................... 10 366 117 205
Employee contributions .................................... — — 13 11
New plans ............................................. — — — 82
Plan settlements, curtailments and special termination benefits .......... (3) (1) (3) (8)
Benefits and administrative expenses paid ........................ (144) (140) (107) (104)
Currency translation ...................................... — — 112 (52)
Fair value of plan assets at end of period ....................... $2,157 $2,126 $ 2,272 $ 1,952
Funded status ........................................... $(221) $ (352) $(1,302) $(1,283)
Unrecognized net actuarial loss ............................... 625 787 976 1,014
Unrecognized prior service cost (benefit) ........................ 25 26 (51) (36)
Unrecognized transition asset ................................ — — (6) (6)
Contributions after the measurement date ........................ 3 1 18 10
Net amount recognized ................................... $ 432 $ 462 $ (365) $ (301)
Amounts recognized on the Consolidated Balance Sheets:
Prepaid benefit cost ....................................... $ 2 $ — $ 31 $ 27
Accrued benefit liability .................................... (209) (344) (997) (974)
Intangible asset .......................................... 18 22 6 5
Accumulated other comprehensive income ....................... 621 784 595 641
Net amount recognized ................................... $ 432 $ 462 $ (365) $ (301)
Weighted-average assumptions used to determine pension benefit obligations at
year end:
Discount rate ........................................... 6.0% 5.3% 4.5% 4.3%
Rate of compensation increase ............................... 4.0% 4.0% 3.6% 3.4%
The accumulated benefit obligation for all U.S. plans as of September 29, 2006 and September 30,
2005 was $2,363 million and $2,465 million, respectively. The accumulated benefit obligation for all
2006 Financials 139