ADT 2010 Annual Report Download - page 227

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
15. Retirement Plans (Continued)
Net periodic postretirement benefit cost for 2010, 2009 and 2008 is as follows ($ in millions):
2010 2009 2008
Service cost .............................................. $— $— $—
Interest cost .............................................444
Amortization of prior service credit ............................ (1) (1) —
Amortization of net actuarial gain .............................. (1) (1) (1)
Net periodic postretirement benefit cost ......................... $ 2 $ 2 $ 3
Weighted-average assumptions used to determine net periodic postretirement
benefit cost during the period:
Discount rate ............................................. 5.2% 7.4% 6.1%
The components of the accrued postretirement benefit obligations, substantially all of which are
unfunded as of September 24, 2010 and September 25, 2009 are as follows ($ in millions):
2010 2009
Change in benefit obligations:
Benefit obligations as of beginning of year ........................... $ 70 $ 63
Service cost ................................................. — —
Interest cost ................................................. 4 4
Actuarial loss ................................................ 2 6
Acquisitions and mergers ....................................... — 4
Benefits paid ................................................ (7) (7)
Other ..................................................... 3 —
Benefit obligations as of end of year ............................... $ 72 $ 70
Change in plan assets:
Fair value of plan assets as of beginning of year ....................... $ — $ —
Employer contributions ......................................... 7 7
Benefits paid ................................................ (7) (7)
Fair value of plan assets as of end of year ........................... $ — $ —
Funded status ................................................ $(72) $(70)
Contributions after the measurement date ........................... — —
Net amount recognized ......................................... $(72) $(70)
Amounts recognized in the Consolidated Balance Sheets consist of:
Current liabilities ............................................. $ (7) $ (7)
Non-current liabilities .......................................... (65) (63)
Net amount recognized ....................................... $(72) $(70)
Amounts recognized in the accumulated other comprehensive loss (before income
taxes) consist of:
Prior service credit ............................................ $ 2 $ 2
Net actuarial gain ............................................. 2 5
Total income recognized ...................................... $ 4 $ 7
Weighted-average assumptions used to determine postretirement benefit obligations
at year end:
Discount rate ................................................ 4.4% 5.2%
2010 Financials 139