ADT 2010 Annual Report Download - page 221

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
15. 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 24, 2010 and
September 25, 2009 is as follows ($ in millions):
U.S. Plans Non-U.S. Plans
2010 2009 2010 2009
Change in benefit obligations:
Benefit obligations as of beginning of year .................... $863 $721 $1,330 $1,402
Service cost .......................................... 10 10 23 31
Interest cost .......................................... 46 53 71 74
Employee contributions ................................. — — 3 5
Plan Amendments ..................................... — — 1 —
Actuarial loss ......................................... 60 129 84 11
Acquisitions/divestitures ................................. — — 3 —
Benefits and administrative expenses paid .................... (49) (50) (61) (60)
Plan settlements, curtailments and special termination benefits ..... — — (11) (6)
Currency translation .................................... — — (53) (127)
Benefit obligations as of end of year ...................... $930 $863 $1,390 $1,330
Change in plan assets:
Fair value of plan assets as of beginning of year ................ $631 $670 $ 950 $1,082
Actual return (loss) on plan assets .......................... 71 (13) 99 (13)
Employer contributions .................................. 4 24 78 59
Employee contributions ................................. — 3 5
Acquisitions/divestitures ................................. — 2 —
Plan settlements, curtailments and special termination benefits ..... — (3) (8)
Benefits and administrative expenses paid .................... (49) (50) (61) (60)
Currency translation .................................... — (36) (115)
Fair value of plan assets as of end of year .................. $657 $631 $1,032 $ 950
Funded status ......................................... $(273) $(232) $ (358) $ (380)
Net amount recognized ................................ $(273) $(232) $ (358) $ (380)
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 earnings (deficit) and accumulated other comprehensive
income (loss) 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 (deficit) of $5 million, net of an income
2010 Financials 133