ADT 2012 Annual Report Download - page 183

The Company’s funding policy is to make contributions in accordance with U.S. laws as well as to make
discretionary voluntary contributions from time-to-time. During fiscal year 2012, the Company contributed
$2 million to its pension plan, which represented the Company’s minimum required contributions to its pension
plan for that period. The Company anticipates that it will contribute at least the minimum required to its pension
plan in fiscal year 2013 of $2 million.
Benefit payments, including those amounts to be paid and reflecting future expected service as appropriate,
are expected to be paid as follows ($ in millions):
Fiscal 2013 ........................................... $ 3
Fiscal 2014 ........................................... 3
Fiscal 2015 ........................................... 3
Fiscal 2016 ........................................... 3
Fiscal 2017 ........................................... 4
Fiscal 2018 – Fiscal 2022 ................................ 20
The Company also participates in multi-employer defined benefit plans on behalf of certain employees.
Pension expense related to multi-employer plans was not material for 2012, 2011 and 2010.
Defined Contribution Retirement Plans—Prior to the Separation, the Company maintained through Tyco
several defined contribution retirement plans, which include 401(k) matching programs, as well as qualified and
nonqualified profit sharing and share bonus retirement plans. Expense for the defined contribution plans is
computed as a percentage of participants’ compensation and was $22 million, $17 million and $14 million for
2012, 2011 and 2010, respectively. Following the Separation, the Company maintains its own standalone 401(k)
matching programs.
Deferred Compensation Plan—Prior to the Separation, the Company maintained through Tyco, a
nonqualified Supplemental Savings and Retirement Plan (“SSRP”), which permits eligible employees to defer a
portion of their compensation. A record keeping account is set up for each participant and the participant chooses
from a variety of measurement funds for the deemed investment of their accounts. The measurement funds
correspond to a number of funds in the Company’s 401(k) plans and the account balance fluctuates with the
investment returns on those funds. Deferred compensation liabilities were $12 million and $11 million as of
September 28, 2012 and September 30, 2011, respectively. Deferred compensation expense was not material for
2012, 2011 and 2010, respectively. Following the Separation, the Company maintains its own standalone SSRP
for eligible employees.
Postretirement Benefit Plans—The Company generally does not provide postretirement benefits other than
pensions for its employees. However, certain acquired operations provide these benefits to employees who were
eligible at the date of acquisition, and a small number of U.S. and Canadian operations provide ongoing
eligibility for such benefits.
Net periodic postretirement benefit cost was not material for 2012, 2011 and 2010. The Company’s
Consolidated and Combined Balance Sheets include postretirement benefit obligations of $5 million as of both
September 28, 2012 and September 30, 2011. In addition, the Company recorded net actuarial gains of nil and $1
million within accumulated other comprehensive income included in the Consolidated and Combined Statements
of Stockholders’ Equity as of September 28, 2012 and September 30, 2011, respectively.
The Company does not expect to make any material contributions to its postretirement benefit plans in
2013. Benefit payments, including those amounts to be paid and reflecting future expected service are not
expected to be material for fiscal 2013 and thereafter.
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