ADT 2009 Annual Report Download - page 78

or -leased aircraft if expressly approved by the Board or Mr. Breen. For purposes of the Summary
Compensation Table, the aggregate incremental pre-tax cost to the Company for personal use of
Company aircraft is calculated using a method that takes into account the incremental cost of fuel,
trip-related maintenance, crew travel expenses, on-board catering, landing fees, trip-related hangar/
parking costs and other variable costs, including incremental costs associated with executives that
are not in control of the aircraft. Because our aircraft are used primarily for business travel, the
calculation does not include the fixed costs that do not change based on usage, such as pilots’
salaries, the acquisition costs of the Company-owned or -leased aircraft, and the cost of
maintenance not related to trips.
(d) The amounts shown in this column as tax gross-up payments for Messrs. Coughlin, Evard, Oliver,
and Gursahaney represent tax gross-up payments made with respect to taxable insurance benefits.
Amounts for Mr. Breen include tax gross-up payments made with respect to taxable insurance
benefits and the reimbursement of state taxes owed by him to New York for Tyco work performed
in that State. Generally, with respect to compensation awarded to Mr. Breen prior to 2009, the
Company pays the increased tax cost (including a gross-up) that Mr. Breen owes as a result of
working in New York rather than in his principal work location. The amount related to state taxes
for Mr. Breen for fiscal 2009 is an estimate, pending receipt of the relevant personal state tax
return information for calendar year 2009. This estimate is based primarily on compensation
deemed by New York State to be earned by Mr. Breen in fiscal 2009 in respect of equity granted
prior to 2009. Mr. Breen has waived the New York tax gross-up with respect to compensation
awarded after January 1, 2009.
(e) Retirement plan contributions include matching contributions made by the Company on behalf of
each executive to its tax-qualified 401(k) Retirement, Savings and Investment Plan and to its
non-qualified Supplemental Savings and Retirement Plan.
(f) Miscellaneous compensation includes matching charitable contributions made by the Company on
behalf of each of Messrs. Coughlin, Gursahaney and Oliver, and payments for fractional shares
made to Mr. Gursahaney.
58 2010 Proxy Statement