ADT 2009 Annual Report Download - page 240

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
16. Retirement Plans (Continued)
2009 2008
Amounts recognized in the Consolidated Balance Sheets consist of:
Current liabilities ........................................ $ (7) $ (6)
Non-current liabilities .................................... (63) (56)
Net amount recognized ................................. $(70) $(62)
Amounts recognized in accumulated other comprehensive (loss) income
(before income taxes) consist of:
Prior service credit ...................................... $ 2 $ 3
Net actuarial gain ....................................... 5 11
Total income recognized ................................. $ 7 $14
Weighted-average assumptions used to determine postretirement benefit
obligations at year end:
Discount rate .......................................... 5.2% 6.6%
The Company expects to make contributions to its postretirement benefit plans of $7 million in
2010.
Benefit payments, including those amounts to be paid out of corporate assets and reflecting future
expected service as appropriate, are expected to be paid as follows ($ in millions):
2010 ............................................................. $ 7
2011 ............................................................. 7
2012 ............................................................. 6
2013 ............................................................. 6
2014 ............................................................. 6
2015-2019 ......................................................... 28
For measurement purposes, a 8.0% and 9.4% composite annual rate of increase in the per capita
cost of covered health care benefits was assumed as of September 25, 2009 and September 26, 2008,
respectively. As of September 25, 2009 and September 26, 2008, the composite annual rate of increase
in health care benefit costs was assumed to decrease gradually to 4.6% and 5.0% by the years 2027 and
2015, respectively, and remain at that level thereafter. A one-percentage-point change in assumed
healthcare cost trend rates would have the following effects ($ in millions):
1-Percentage-Point 1-Percentage-Point
Increase Decrease
Effect on total of service and interest cost ............. $— $—
Effect on postretirement benefit obligation ............ 4 (3)
17. Shareholders’ Equity
As discussed in Note 1, effective March 17, 2009, the Company changed its jurisdiction of
incorporation from Bermuda to the Canton of Schaffhausen, Switzerland. In connection with the
Change of Domicile, the par value of the Company’s common shares increased from $0.80 per share to
8.53 Swiss francs (CHF) per share (or $7.21 based on the exchange rate in effect on March 17, 2009).
148 2009 Financials