ADT 2010 Annual Report Download - page 80

Pension Benefits Table
The following table presents, for each named executive officer, the present value of the benefit he
or she would receive at retirement under the specified pension plan, based on credited years of service
and covered compensation as of September 24, 2010. Mr. Breen is the only named executive officer of
the Company with a pension benefit.
Number of Present Value of Payments
Years Credited Accumulated During Last
Name Plan Name Service (#) Benefit ($) Fiscal Year ($)
(a) (b)(1) (c) (d)(2) (e)
Edward D. Breen ......... Employment Agreement 8.17 $19,780,000 $ —
(1) The terms of Mr. Breen’s employment agreement provide that he is entitled to receive an annual
supplemental retirement benefit payable at the later of age 60 and termination of employment.
The supplemental benefit is in the form of a joint 50% spousal survivor’s annuity equal to 50% of
Mr. Breen’s final average earnings. This average is calculated as the highest average of the sum of
his monthly base salary and actual bonus (the bonus being spread equally over the bonus period
for which it is paid) during any consecutive 36 month period within the 60-month period prior to
his termination of employment. Final average earnings are reduced by benefits from any defined
benefit pension plans maintained by the Company or its affiliates, by benefits from any other
defined benefit pension plans maintained by any previous employers, and by benefits attributable
to employer contributions, including matching contributions to any defined contribution plans
maintained by the Company or its affiliates. Mr. Breen is vested in the benefit described above.
Mr. Breen’s benefit is payable as an actuarially equivalent lump sum at the later of (i) age 60 and
(ii) the actual date of his termination of employment other than as a result of death or upon a
change in control (subject to any applicable 6-month delay pursuant to Internal Revenue Code
Section 409A).
(2) The amount in column (d) is calculated as the discounted present value of normal retirement
benefits earned as of September 24, 2010, payable as a lump sum at ‘‘Normal Retirement Date’’
(without regard to projected service, projected salary increases, pre-retirement mortality or other
decrements). The assumptions used in determining the discounted present value are consistent
with those used to calculate the Company’s retirement plan liabilities as described in Note 15 to
the Company’s audited consolidated financial statements for the fiscal year ended September 24,
2010, and include:
• A discount rate of 5.0%;
• Payment as a lump sum;
• A prime rate of 3.25% (used to accumulate the Company’s defined contribution match balance);
• An assumed retirement age of 60.
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