ADT 2013 Annual Report Download - page 157

FORM 10-K
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 2014 ........................................... $ 3
Fiscal 2015 ........................................... 3
Fiscal 2016 ........................................... 4
Fiscal 2017 ........................................... 4
Fiscal 2018 ........................................... 4
Fiscal 2019 – Fiscal 2023 ................................ 21
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 fiscal years 2013, 2012 and 2011.
Defined Contribution Retirement Plans—Prior to the Separation, the Company maintained through Tyco
several defined contribution retirement plans, including 401(k) matching programs, as well as qualified and
nonqualified profit sharing and share bonus retirement plans. Following the Separation, the Company maintains
its own standalone 401(k) matching programs. Expense for the defined contribution plans is computed as a
percentage of participants’ compensation and was $20 million, $22 million and $17 million for fiscal years 2013,
2012 and 2011, respectively.
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. Following the Separation, the Company maintains its own standalone SSRP
for eligible employees. Deferred compensation liabilities were $16 million and $12 million as of September 27,
2013 and September 28, 2012, respectively. Deferred compensation expense was not material for fiscal years
2013, 2012 and 2011.
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 fiscal years 2013, 2012 and 2011. The
Company’s Consolidated Balance Sheets include postretirement benefit obligations of $6 million and $5 million
as of September 27, 2013 and September 28, 2012, respectively. In addition, the Company recorded a net
actuarial loss of $1 million within accumulated other comprehensive income included in the Consolidated
Balance Sheet as of September 27, 2013. No actuarial gain or loss was recorded within accumulated other
comprehensive income in the Consolidated Balance Sheet as of September 28, 2012.
The Company does not expect to make any material contributions to its postretirement benefit plans in fiscal
year 2014. Benefit payments, including those amounts to be paid and reflecting future expected service are not
expected to be material for fiscal year 2014 and thereafter.
9. Share Plans
Incentive Equity Awards Converted from Tyco Awards
Prior to the Separation, all employee incentive equity awards were granted by Tyco. On September 28,
2012, substantially all of Tyco’s outstanding awards were converted into like-kind awards of ADT, Tyco and
Pentair. The conversion of existing Tyco equity awards into ADT equity awards was considered a modification
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