ADT 2011 Annual Report Download - page 250

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
16. Retirement Plans (Continued)
The components of the accrued postretirement benefit obligations, substantially all of which are
unfunded as of September 30, 2011 and September 24, 2010 are as follows ($ in millions):
2011 2010
Change in benefit obligations:
Benefit obligations as of beginning of year ..................... $72 $70
Service cost ............................................ — —
Interest cost ........................................... 3 4
Actuarial (gain) / loss .................................... (10) 2
Acquisitions/divestitures ................................... (2) —
Benefits paid ........................................... (4) (7)
Other ................................................ — 3
Benefit obligations as of end of year .......................... $59 $72
Change in plan assets:
Fair value of plan assets as of beginning of year ................. $— $—
Employer contributions ................................... 4 7
Benefits paid ........................................... (4) (7)
Fair value of plan assets as of end of year ...................... $— $—
Funded status .......................................... $(59) $(72)
Contributions after the measurement date ...................... — —
Net amount recognized ................................... $(59) $(72)
Amounts recognized in the Consolidated Balance Sheets consist of:
Current liabilities ........................................ $ (5) $ (7)
Non-current liabilities .................................... (54) (65)
Net amount recognized ................................. $(59) $(72)
Amounts recognized in accumulated other comprehensive loss (before
income taxes) consist of:
Prior service credit ...................................... $ 2 $ 2
Net actuarial gain ....................................... 12 2
Total income recognized ................................. $14 $ 4
Weighted-average assumptions used to determine postretirement benefit
obligations at year end:
Discount rate .......................................... 4.1% 4.4%
The Company expects to make contributions to its postretirement benefit plans of $5 million in
2012.
2011 Financials 147