ADT 2011 Annual Report Download - page 83

(b) Supplemental Executive Insurance Benefits reflect premiums paid by the Company for insurance
benefits for the executive and, in the case of long-term care, for the executive’s spouse as well.
These benefits are provided to certain Senior Officers of the Company upon the approval of the
Compensation Committee.
(c) For security purposes, the Chief Executive Officer is authorized to use Company-owned or -leased
aircraft for personal travel. Other named executive officers are permitted to use Company-owned
or -leased aircraft if expressly approved by the Board or Mr. Breen. For purposes of the Summary
Compensation Table, the aggregate incremental pre-tax cost to the Company for personal use of
Company aircraft is calculated using a method that takes into account the incremental cost of fuel,
trip-related maintenance, crew travel expenses, on-board catering, landing fees, trip-related hangar/
parking costs and other variable costs, including incremental costs associated with executives that
are not in control of the aircraft. Because our aircraft are used primarily for business travel, the
calculation does not include the fixed costs that do not change based on usage, such as pilots’
salaries, the acquisition costs of the Company-owned or -leased aircraft, and the cost of
maintenance not related to trips.
(d) The amounts shown in this column as tax gross-up payments for Messrs. Coughlin, Oliver, and
Gursahaney, and Ms. Reinsdorf, represent tax gross-up payments made with respect to taxable
insurance benefits in fiscal 2009 and 2010. Amounts for Mr. Breen include tax gross-up payments
made with respect to taxable insurance benefits and the reimbursement of state taxes owed by him
to New York for Tyco work performed in that State. Generally, with respect to compensation
awarded to Mr. Breen prior to 2009, the Company pays the additional taxes (including a gross-up)
that Mr. Breen owes as a result of working in New York rather than in his principal work location.
The amount related to state taxes for Mr. Breen for fiscal 2011 is an estimate, pending receipt of
the relevant personal state tax return information for calendar year 2011. This estimate is based
primarily on compensation deemed by New York State to be earned by Mr. Breen in fiscal 2011 in
respect of equity granted prior to 2009. Mr. Breen has waived the New York tax gross-up with
respect to compensation awarded after January 1, 2009.
(e) Retirement plan contributions include matching contributions made by the Company on behalf of
each executive to its tax-qualified 401(k) Retirement, Savings and Investment Plan and to its
non-qualified Supplemental Savings and Retirement Plan.
(f) Miscellaneous compensation in fiscal 2011 includes matching charitable contributions made by the
Company on behalf of Messrs. Breen, Oliver, Gursahaney and Ms. Reinsdorf and, for
Mr. Sklarsky, the value of relocation benefits. Miscellaneous compensation also includes de
minimis payments made for fractional shares. Miscellaneous compensation in fiscal 2010 includes
matching charitable contributions made by the Company on behalf of each of Messrs. Coughlin,
Gursahaney and Oliver, and Ms. Reinsdorf and car service for Mr. Coughlin. Miscellaneous
compensation in fiscal 2009 includes matching charitable contributions made by the Company on
behalf of each of Messrs. Coughlin, Gursahaney and Oliver and de minimis payments for fractional
shares made to Mr. Gursahaney.
2012 Proxy Statement 69