ADT 2008 Annual Report Download - page 252

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
17. Retirement Plans (Continued)
U.S. Plans Non-U.S. Plans
2008 2007 2008 2007
Amounts recognized in the statement of financial position consist of:
Non-current assets ...................................... $ 6 $ 26 $ 4 $ 2
Current liabilities ....................................... (4) (4) (13) (13)
Non-current liabilities .................................... (51) (40) (338) (323)
Net amount recognized ................................. $ (49) $ (18) $(347) $(334)
Amounts recognized in accumulated other comprehensive income (loss)
(before taxes) consist of:
Transition asset (obligation) ................................ $ — $ — $ 5 $ 6
Prior service (cost) credit ................................. (8) (9) 32 38
Net actuarial loss ....................................... (180) (143) (379) (379)
Total (loss) recognized .................................. $(188) $(152) $(342) $(335)
Weighted-average assumptions used to determine pension benefit obligations
at year end:
Discount rate .......................................... 7.0% 6.3% 5.9% 5.6%
Rate of compensation increase ............................. 4.0% 4.0% 4.7% 4.4%
The accumulated benefit obligation for all U.S. plans as of September 26, 2008 and September 28,
2007 was $723 million and $776 million, respectively. The accumulated benefit obligation for all
non-U.S. plans as of September 26, 2008 and September 28, 2007 was $1,379 million and
$1,458 million, respectively.
The accumulated benefit obligation and fair value of plan assets for U.S. pension plans with
accumulated benefit obligations in excess of plan assets were $473 million and $417 million,
respectively, at September 26, 2008 and $111 million and $67 million, respectively, at September 28,
2007.
The accumulated benefit obligation and fair value of plan assets for non-U.S. pension plans with
accumulated benefit obligations in excess of plan assets were $1,350 million and $1,055 million,
respectively, at September 26, 2008 and $1,268 million and $981 million, respectively, at September 28,
2007.
The aggregate benefit obligation and fair value of plan assets for U.S. pension plans with benefit
obligations in excess of plan assets were $475 million and $417 million, respectively, at September 26,
2008, and $111 million and $67 million, respectively, at September 28, 2007.
The aggregate benefit obligation and fair value of plan assets for non-U.S. pension plans with
benefit obligations in excess of plan assets were $1,419 million and $1,066 million, respectively, at
September 26, 2008, and $1,508 million and $1,167 million, respectively, at September 28, 2007.
In determining the expected return on plan assets, the Company considers the relative weighting of
plan assets by class and individual asset class performance expectations as provided by its external
advisors.
The Company’s investment strategy for its pension plans is to manage the plans on a going-concern
basis. Current investment policy is to achieve a superior return on assets, subject to a prudent level of
2008 Financials 149