ADT 2011 Annual Report Download - page 276

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 $5,824 million and $5,489 million for 2011 and 2010, respectively. The Company
considers personnel expense to be salaries and wages, bonus and other compensation and fringe
benefits.
b) Fire Insurance Value of Property, Plant and Equipment
The Company’s fire insurance value of its property, plant and equipment was approximately
$4,219 million as of September 30, 2011 and $5,455 million as of September 24, 2010.
c) Summary of Risk Assessment Performed by Management
Enterprise Risk Management is performed by corporate management on a regular basis.
Organizational and process measures have been designed to identify and mitigate risks at an early
stage. The Board of Director’s Nominating and Governance Committee oversees the Company’s
risk management process, and, as part of the process, members of the Board of Directors perform
site visits of Company operations.
The Lead Director of the Board of Directors and corporate management determine the
appropriate operation site and timing of the enterprise risk assessment. Organizationally, the
responsibility for risk assessment and management for business operations is allocated to the
business segments, with specialized corporate functions such as financial reporting and accounting,
treasury, and environmental, health and safety providing support to the business segments.
d) Remuneration of the Board of Directors and Executive Board
1) Basis of presentation
The following information sets forth the compensation for the years ended September 30, 2011
and September 24, 2010, of the members of Board of Directors (the Board) of the Company and
Group Executives for all of the functions that they have performed for the Company.
Compensation of the Board is paid by Tyco International Ltd. Compensation is paid as a
combination of both U.S. Dollars and Swiss Francs though the following tables express all
remuneration details in U.S. Dollars ($). Further details of executive compensation can be found in
the Executive Compensation section of the Company’s 2011 proxy statement for the 2012 annual
general meeting.
2) Remuneration of the Non-Employee Directors
The table below reflects Director compensation for fiscal 2011 and 2010. In fiscal 2011 the cash
retainer for non-employee Directors was increased to $100,000 from $80,000. Directors also
received a grant of restricted stock units (‘‘RSUs’’) with a value at grant date of approximately
$120,000 in both fiscal 2011 and 2010. The lead Directors fee was increased to $30,000 in fiscal
2011 compared to $20,000 in fiscal 2010. The fee paid to the Chair of the Compensation
Committee increased to $20,000 in fiscal 2011 from $15,000 in fiscal 2010. The Chairs of the
Nominating and Governance Committee and Audit Committee received an additional fee of
$15,000 and $20,000, respectively, in each fiscal year. In addition, any member of a special
committee of the Board receives meeting fees in an amount of $1,500 per day for each special
committee meeting that he or she attends. No such fees were paid in fiscal 2011 or 2010. A
Director who is also an employee receives no additional remuneration for services as a Director.