ADT 2010 Annual Report Download - page 253

SUPPLEMENTAL DISCLOSURES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The following disclosures of Tyco International Ltd. are supplemental disclosures to the
consolidated financial statements which are required pursuant to Article 663-663h of the Swiss Code of
Obligations.
a) Personnel Cost for Consolidated Tyco International
Personnel expense reflected in the Company’s Consolidated Statement of Operations was
approximately $6 billion and $3 billion for 2010 and 2009, respectively. The Company considers
personnel expense to be salaries and wages, bonus and other compensation and fringe benefits.
During 2009, it was not practicable for the Company to capture the amount of personnel expense
reflected in cost of product sales and services. However, during 2010 the Company began to report
the portion of personnel expense reflected in both cost of product sales and services and selling,
general and administrative.
b) Fire Insurance Value of Property, Plant and Equipment
The Company’s fire insurance value of its property, plant and equipment was approximately
$5 billion as of September 24, 2010 and as of September 25, 2009.
c) Risk Assessment and Management
Enterprise Risk Management is performed by corporate management on a regular basis.
Organizational and process measures have been designed to identify and mitigate risks at an early
stage. The Board of Director’s Nominating and Governance Committee oversees the Company’s
risk management process, and, as part of the process, members of the Board of Directors perform
site visits of Company operations.
The Lead Director of the Board of Directors and corporate management determine the
appropriate operation site and timing of the enterprise risk assessment. Organizationally, the
responsibility for risk assessment and management for business operations is allocated to the
business segments, with specialized corporate functions such as financial reporting and accounting,
treasury, and environmental, health and safety providing support to the business segments.
d) Remuneration of the Board of Directors and the Group Executives for 2010
1) Basis of presentation
The following information sets forth the compensation for the years ended September 24, 2010
and September 25, 2009, of the members of Board of Directors (the Board) of the Company and
Group Executives for all of the functions that they have performed for the Company.
Compensation is presented for the year ended September 25, 2009, rather than for the period
since Tyco became a Swiss company because the full financial year presentation is more
meaningful. Compensation of the Board is paid by Tyco International Ltd. Compensation of the
Group Executives is paid by Tyco International Ltd., and the group entities where they are
employed. Compensation is paid as a combination of both U.S. Dollars and Swiss Francs though
the following tables express all remuneration details in U.S. Dollars ($). Further details of
executive compensation can be found in the Executive Compensation section of the Company’s
2010 proxy statement for the 2011 annual general meeting.
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