ADT 2009 Annual Report Download - page 235

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
16. 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 as of September 25, 2009 and
September 26, 2008 is as follows ($ in millions):
U.S. Plans Non-U.S. Plans
2009 2008 2009 2008
Change in benefit obligations:
Benefit obligations as of beginning of year ................... $721 $779 $1,414 $1,495
Service cost .......................................... 10 8 31 45
Interest cost ......................................... 53 47 75 82
Employee contributions ................................. — — 6 6
Actuarial loss (gain) ................................... 129 (68) 11 (37)
Acquisitions/divestitures ................................. — — — 3
Benefits and administrative expenses paid .................... (50) (45) (61) (64)
Plan settlements, curtailments and special termination benefits ..... — — (7) (8)
Currency translation ................................... — — (129) (108)
Benefit obligations as of end of year ...................... $863 $721 $1,340 $1,414
Change in plan assets:
Fair value of plan assets as of beginning of year ............... $670 $762 $1,082 $1,177
Actual return on plan assets .............................. (13) (51) (14) (6)
Employer contributions ................................. 24 4 60 67
Employee contributions ................................. — — 6 6
Acquisitions/divestitures ................................. — — — 2
Plan settlements, curtailments and special termination benefits ..... — — (8) (8)
Benefits and administrative expenses paid .................... (50) (45) (61) (64)
Currency translation ................................... — — (115) (92)
Fair value of plan assets as of end of year .................. $631 $670 $ 950 $1,082
Funded status ........................................ $(232) $ (51) $ (390) $ (332)
Contributions after the measurement date ................... — 3 — 3
Net amount recognized ............................... $(232) $ (48) $ (390) $ (329)
The Company adopted the measurement date provisions of the authoritative guidance for the
employers’ accounting for defined benefit pension and other postretirement plans on September 27,
2008. As a result, Tyco measured its plan assets and benefit obligations on September 26, 2008 and
adjusted its opening balances of accumulated (deficit) earnings and accumulated other comprehensive
(loss) income for the change in net periodic benefit cost and fair value, respectively, from the
previously used measurement date of August 31, 2008. The adoption of the measurement date
provisions resulted in a net decrease to accumulated earnings of $5 million, net of an income tax
benefit of $2 million, and a net increase to accumulated other comprehensive (loss) income of
2009 Financials 143