ADT 2007 Annual Report Download - page 242

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
17. Retirement Plans (Continued)
Net periodic postretirement benefit cost for 2007, 2006 and 2005 is as follows ($ in millions):
2007 2006 2005
Service cost ................................................ $ 1 $ 1 $1
Interest cost ................................................ 4 3 4
Amortization of prior service credit ............................... (1) — (1)
Amortization of net actuarial gain ................................ (2) (3) (4)
Net periodic postretirement benefit cost .......................... $ 2 $ 1 $—
Weighted-average assumptions used to determine net postretirement benefit cost
during the period:
Discount rate ............................................... 5.7% 4.8% 5.5%
The components of the accrued postretirement benefit obligations, substantially all of which are
unfunded at September 28, 2007 and September 29, 2006, are as follows ($ in millions):
2007 2006
Change in benefit obligations:
Benefit obligations at beginning of year ................................. $67 $73
Service cost .................................................... 1 1
Interest cost .................................................... 3 3
Actuarial loss (gain) ............................................... 6 (2)
Benefits paid .................................................... (7) (9)
Currency translation .............................................. 1 1
Benefit obligations at end of year ................................... $71 $67
Change in plan assets:
Fair value of plan assets at beginning of year ............................. $— $—
Employer contributions ............................................ 7 9
Benefits paid .................................................... (7) (9)
Fair value of plan assets at end of year ................................ $— $—
Funded status ................................................... $(71) $(67)
Unrecognized net actuarial loss ....................................... — (16)
Unrecognized prior service credit ..................................... — (4)
Net amount recognized ........................................... $(71) $(87)
150 2007 Financials