ADT 2011 Annual Report Download - page 258

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
18. Share Plans (Continued)
Deferred Stock Units—Deferred Stock Units (‘‘DSUs’’) are notional units that are tied to the value
of Tyco common shares with distribution deferred until termination of employment or service to the
Company. Distribution, when made, will be in the form of actual shares. Similar to restricted share
grants that vest through the passage of time, the fair value of DSUs is determined based on the closing
market price of the Company’s shares on the grant date and is amortized to expense over the vesting
period. Recipients of DSUs do not have the right to vote and receive cash dividends. However, they
have the right to receive dividend equivalent units. Conditions of vesting are determined at the time of
grant. Under the 2004 Plan, grants made to executives generally vested in equal annual installments
over three years while DSUs granted to the Board of Directors were immediately vested. The Company
has granted 1 million DSUs, the majority of which were outstanding as of September 30, 2011.
The weighted-average grant-date fair value of DSUs granted during 2009 was $34.09. There were
no DSU awards granted during 2011 and 2010, however participants continue to earn DEUs on their
existing awards. The total fair value of DSUs including DEUs vested during 2011, 2010 and 2009 was
$1 million, $1 million and $2 million, respectively. As of September 30, 2011, all DSUs were vested.
19. Accumulated Other Comprehensive Loss
The components of accumulated other comprehensive loss are as follows ($ in millions):
Unrealized Gain
(Loss) on
Marketable Accumulated
Currency Securities and Other
Translation Derivative Retirement Comprehensive
Adjustments(1)(2) Instruments Plans (Loss) Income
Balance as of September 26, 2008 ........ $584 $(5) $(347) $ 232
Cumulative effect of adopting a new
accounting principle (See Note 16) . . . — — 89 89
Pre-tax current period change ......... (203) 14 (327) (516)
Income tax (expense) benefit ......... — (5) 79 74
Other(3) ......................... 34 — — 34
Balance as of September 25, 2009 ........ 415 4 (506) (87)
Pre-tax current period change ......... (141) — (47) (188)
Divestiture of businesses ............. (67) — — (67)
Income tax benefit ................. 7 — 14 21
Balance as of September 24, 2010 ........ 214 4 (539) (321)
Pre-tax current period change ......... 22 (2) (12) 8
Divestiture of businesses ............. (164) — 33 (131)
Income tax (expense) benefit ......... — (2) 12 10
Balance as of September 30, 2011 ........ $ 72 $— $(506) $(434)
(1) During the years ended September 30, 2011, September 24, 2010 and September 25, 2009,
$164 million of cumulative translation gain, $67 million of cumulative translation gain and
$21 million of a cumulative translation loss, respectively, were transferred from currency translation
2011 Financials 155