ADT 2008 Annual Report Download - page 255

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
17. Retirement Plans (Continued)
The components of the accrued postretirement benefit obligations, substantially all of which are
unfunded at September 26, 2008 and September 28, 2007, are as follows ($ in millions):
2008 2007
Change in benefit obligations:
Benefit obligations at beginning of year ............................. $ 71 $ 67
Service cost ................................................. 1 1
Interest cost ................................................. 4 4
Actuarial (gain) loss ........................................... (3) 6
Benefits paid ................................................ (7) (7)
Benefit obligations at end of year ................................ $ 66 $ 71
Change in plan assets:
Fair value of plan assets at beginning of year ......................... $ — $ —
Employer contributions ......................................... 7 7
Benefits paid ................................................ (7) (7)
Fair value of plan assets at end of year ............................ $ — $ —
Funded status ................................................ $(66) $(71)
Contributions after the measurement date ........................... 1 —
Net amount recognized ......................................... $(65) $(71)
2008 2007
Amounts recognized in the Statement of Financial Position consist of:
Current liabilities ............................................. $ (7) $ (7)
Non-current liabilities .......................................... (58) (64)
Net amount recognized ....................................... $(65) $(71)
Amounts recognized in accumulated other comprehensive income (before taxes)
consist of:
Prior service credit ............................................ $ 3 $ 3
Net actuarial gain ............................................. 10 8
Total income recognized ....................................... $ 13 $ 11
Weighted-average assumptions used to determine postretirement benefit obligations at
year end:
Discount rate ................................................ 6.6% 6.1%
The Company expects to make contributions to its postretirement benefit plans of $7 million in
2009.
152 2008 Financials