ADT 2001 Annual Report Download

Download and view the complete annual report

Please find the complete 2001 ADT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 94

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94

ANNUAL REPORT 2001 c

Table of contents

  • Page 1
    ANNUAL REPORT 2001

  • Page 2
    ..., data communications, automotive, industrial and defense businesses; undersea fiber optic telecommunications systems for telecommunications, Internet and service application providers; fire protection products for commercial, industrial and residential applications; electronic security systems...

  • Page 3
    ...om ic en viron m en ts. Variou s operation s react differen tly th rou gh a bu sin ess cycle with stren gth in on e area offsettin g weakn ess in an oth er. In addition , m an y of ou r bu sin esses-su ch as h ealth care, electron ic secu rity m on itorin g an d fire protection services-h ave little...

  • Page 4
    ...h ave an edge in su rvivin g tou gh tim es an d u su ally em erge even stron ger wh en bu sin ess con dition s im prove. FIN A N CE > 6% ELECTRON ICS FIRE A N D SECU RITY SERVICES > 29% > 36% TELECOMMU N ICATION S > 5% > 24% HEA LTHCA RE A N D SP ECIA LTY P ROD U CTS REVENUES BY SEGM ENT 2

  • Page 5
    ... r produ cts, ran gin g from h ealth care to secu rity, is risin g faster in foreign m arkets th an it is in th e Un ited States. As global cu stom ers en ter n ew m arkets, th ey brin g ou r produ cts an d services alon g with th em . An d, u su ally, weakn ess in on e region...

  • Page 6
    ... to im provin g produ ct design an d cu stom er service wh ile redu cin g produ ction costs, are rewarded by th e m arketplace. Always ask: Can it be im proved? An d wh en th e an swer is yes-do it. 20.5% 18.2% 16.2% 11.3% 8.1% 6.3% 1993 1994 1995 1999 2000 21.3% 2001 12.2% 1996 13.2% 1997 1998...

  • Page 7
    ... prove ou r poten tial for lon g-term in tern al growth . It m u st be im m ediately accretive to earn in gs an d cash flow per sh are an d produ ce h igh retu rn s on in vested capital. To con sisten tly ach ieve th ese targets, we requ ire th at each acqu...

  • Page 8
    ... om er-orien t ed processes CUSTOMER FOCUS WORLDWIDE LOCATIONS: NORTH AMERICA & THE CARIBBEAN: BAHAMAS, BERMUDA, CANADA, MEXICO, UNITED STATES, U.S. VIRGIN ISLANDS CENTRAL & SOUTH AMERICA: ARGENTINA, BRAZIL, CHILE, COLOMBIA, PERU, URUGUAY , VENEZUELA EUROPE, AFRICA & MIDDLE EAST: AUSTRIA, BELGIUM...

  • Page 9
    ... eers in Eaton town , New Jersey are u sin g laboratory prototypes to test design s of fu tu re su b-sea telecom m u n ication s system s. 2 > Tyco's Elo Tou ch System s, a global leader in tou ch tech n ology, m akes th e n ew En tu itive 1525L LCD desktop tou ch m on itor for th e retail, m edical...

  • Page 10
    ... gh ou t th e world. 2 > ADT's Safewatch â„¢ iCen ter, th e latest in in telligen t h om e an d office secu rity, blen ds h igh -tech secu rity, electron ics m an agem en t ( it h as con trols for th e garage door open er, ligh tin g an d applian ces) an d In tern et in form ation . 3 > Scott Tech...

  • Page 11
    ... ron ic secu rit y m arket offers su bst an t ial growt h pot en t ial A CCELERATIN G SUBSCRIBER GROWTH > Low at t rit ion rat e WORLDWIDE LOCATIONS: NORTH AMERICA & THE CARIBBEAN: BAHAMAS, BARBADOS, CANADA, DOMINICAN REPUBLIC, HAITI, JAMAICA, MEXICO, PUERTO RICO, TRINIDAD/TOBAGO, UNITED STATES...

  • Page 12
    ...ckrod t ad d s st ren gt h in respirat ory care prod u ct s; en h an ces prod u ct port folio WORLDWIDE LOCATIONS: NORTH AMERICA & THE CARIBBEAN: BAHAMAS, BERMUDA, CANADA, DOMINICAN REPUBLIC, MEXICO, PUERTO RICO, UNITED STATES, U.S. VIRGIN ISLANDS CENTRAL & SOUTH AMERICA: ARGENTINA, BELIZE, BOLIVIA...

  • Page 13
    1 3 2 1 > Tyco Health care's Au to Su tu re division , a world leader in con ven tion al an d m in im ally in vasive su rgical devices, h as h elped su rgeon s tran sform patien t care by allowin g th em to perform laparoscopic gallbladder rem oval, h ern ia repair, gastric bypass su rgery an d m ...

  • Page 14
    ...e of credit-a sen ior debt facility-from Tyco Capital to h elp fin an ce its bu sin ess activities. 2 > Tyco Capital an d J.C. Bam ford Excavators Ltd. ( JCB) , Eu rope's largest con stru ction equ ipm en t m an u factu rer, h ave created a join tly own ed com pan y to fin an ce th e retail sales of...

  • Page 15
    ... al st ru ct u re WORLDWIDE LOCATIONS: NORTH AMERICA & THE CARIBBEAN: CANADA, MEXICO, UNITED STATES CENTRAL & SOUTH AMERICA: ARGENTINA, COLOMBIA EUROPE, AFRICA & MIDDLE EAST: BELGIUM, GERMANY , REPUBLIC OF IRELAND, SPAIN, UNITED KINGDOM FAR EAST & AUSTRALIA: AUSTRALIA, HONG KONG, NEW ZEALAND 13

  • Page 16
    L. DENNIS KOZLOWSKI Chairman of the Board and Chief Executive Officer 14

  • Page 17
    ... at terrible day, in fact, we did all we cou ld to h elp th e rescu e workers an d th e people of New Y ork City, Wash in gton D.C. an d Pen n sylvan ia. In addition to sen din g h ealth care produ cts to th e scen es, we provided oxygen packs an d th erm al im agin g devices to...

  • Page 18
    ...ic devices will drive cu stom ers to Tyco Electron ics, th e world's leadin g passive electron ic com pon en t su pplier. Tyco Capital's diversified reven u e base, broad access to fu n din g m arkets an d credit risk m an agem en t skills will provide con sisten t growth . Fiscal 2001 was a year of...

  • Page 19
    ... in a tou gh en viron m en t, as operatin g in com e grew 20 percen t to $3.3 billion , u p from $2.8 billion last year. Sales for th e grou p totaled $13.1 billion , com pared to $11.4 billion in th e prior year. Tyco Electron ics' produ cts gain ed sh are across th e board, with especially large...

  • Page 20
    ...e Recorder m akes u s th e largest fire alarm com pan y in th e world. We con tin u e to ben efit globally from tou gh er fire protection regu lation s an d th e growth of ou r fire in spection bu sin ess. Tyco Health care an d Specialty Produ cts h ad an ou tstan din g year, with operatin g in com...

  • Page 21
    ...will be able to pay th eir bills, th ey seek credit experts to collect, service or even gu aran tee th eir receivables. Th is bu sin ess sh owed dram atic growth for Tyco Capital in 2001. Tyco Capital also divested $5 billion of its loan portfolio, exitin g n on -strategic bu sin esses su ch as m an...

  • Page 22
    ...g u n dersea cable for th e TyCom Global Network. FISCAL 2001 O P E R AT I N G INCOME in millions $3,725.5 45% 2. FIRE AND SECURITY SERVICES DESCRIPTION Tyco is th e worldwide leader in fire protection , secu rity services an d in du strial valves an d con trols. Ou r ADT u n it provides con tin...

  • Page 23
    ... en t h an gers, th e largest U.S. produ cer of plastic trash bags an d plastic sh eetin g an d a sign ifican t U.S. m an u factu rer of tapes, packagin g an d protective wraps an d specialty adh esives. PRODUCTS/ SERVICES FISCAL 2001 REVENUES in millions $8,833.3 24% Health care produ cts: su...

  • Page 24
    ... Financial Data 23 Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Consolidated Financial Statements 42 Notes to Consolidated Financial Statements 49 Report of Independent Accountants 88 Common Shares and Dividends 89 Directors, Officers and Key Management 90...

  • Page 25
    ...-one stock splits on October 22, 1997 and October 21, 1999, both of which were effected in the form of a stock dividend. (9) Tyco has paid a quarterly cash dividend of $0.0125 per common share since July 2, 1997 , the date of the Former Tyco/ADT merger. Prior to the merger with ADT, Former Tyco had...

  • Page 26
    ... below. During Fiscal 2001, a change was made in the Company's internal management reporting structure such that the operations of the former Flow Control Products and Services segment are now reported in part within the Fire and Security Services and in part within the Electronics segments...

  • Page 27
    ...'s net revenue and earnings in Fiscal 2001, Fiscal 2000 and Fiscal 1999: ($ IN MILLIONS) FISCAL 2001 FISCAL 2000 F I S C A L 19 9 9 Tyco Industrial segment revenues before accounting change Impact of SAB 101 T Y C O I N D U ST R I AL SEGM EN T R EVEN U ES AFT ER AC C O U N T I N G C H AN GE $34...

  • Page 28
    ...improved margins at both AMP and Tyco Printed Circuit Group. The improved operating margins, before certain (charges) credits, in Fiscal 2000 compared with Fiscal 1999 resulted from increased volume, improved pricing and continuing cost reduction programs following the AMP merger. In addition to the...

  • Page 29
    ...income, before certain (charges) credits and accounting change, in Fiscal 2001 over Fiscal 2000 was primarily due to acquisitions and increased service volume in the fire protection business in North America and Asia and worldwide security business. The increase in operating margins, before certain...

  • Page 30
    ... $88.1 million in Fiscal 2000. The 10.2% increase in operating income, before certain (charges) credits and accounting change, in Fiscal 2000 over Fiscal 1999 was due to increased sales volume at Tyco Healthcare, Tyco Plastics and Adhesives and, to a lesser extent, ADT Automotive, slightly offset by...

  • Page 31
    ... and our share repurchase program, offset by lower interest rates during Fiscal 2001. The increase in borrowings was mitigated in part by the generation of a substantial amount of free cash flow. The weighted-average rates of interest on Tyco Industrial's long-term debt outstanding at September...

  • Page 32
    ...) credits, charges for the impairment of long-lived assets, net gain on the sale of businesses and investments, net gain on the sale of common shares of a subsidiary and accounting change, was 23.0% during Fiscal 2001, as compared to 24.8% in Fiscal 2000 and 27.0% in Fiscal 1999. The decrease in...

  • Page 33
    ... expenditures and dividends as "free cash flow." ($ IN MILLIONS) FISCAL 2001 FISCAL 2000 F I S C A L 19 9 9 In December 1999, the Securities and Exchange Commission ("SEC") issued SAB 101, in which the SEC Staff expressed its views regarding the appropriate recognition of revenue in a variety...

  • Page 34
    ... received in sale-leaseback transactions. We continue to fund capital expenditures to improve the cost structure of our businesses, to invest in new processes and technology, and to maintain high quality production standards. The level of capital expenditures for the Fire and Security Services...

  • Page 35
    ...common share options. In addition, during Fiscal 2001, we received proceeds of $904.4 million, net of cash sold, primarily from the sale of our ADT Automotive business. The source of the cash used for acquisitions in Fiscal 2001 was primarily through the issuance of debt, free cash flow, the sale of...

  • Page 36
    ... shipped shortly after purchase orders are received. We do not view backlog in the healthcare industry to be a significant indicator of the level of future sales activity. Tyco Capital maintains committed bank lines of credit aggregating $8.5 billion to provide back-stop support of its commercial...

  • Page 37
    ... swaps. For long-term investments, the table presents cash flows of principal payments related to a subordinated, non-collateralized zero coupon loan note, based on the amortized cost of the investment at September 30, 2001, and the associated fair value interest rate discount. For debt obligations...

  • Page 38
    ... currency exchange contracts. For long-term investments, the table presents cash flows of principal payments related to a subordinated, noncollateralized zero coupon loan note, based on the amortized cost of the investment at September 30, 2001, and the associated fair value interest rate discount...

  • Page 39
    ... are reviewed as part of Tyco Capital's ongoing financial and asset quality review, both within the business units and by corporate management. COMMERCIAL Tyco Capital has developed systems specifically designed to effectively manage credit risk in its commercial businesses. The process starts with...

  • Page 40
    ...-term notes (U.S., Canada and Europe) and asset-backed securities (U.S. and Canada). Included as part of Tyco Capital's securitization programs are committed asset-backed commercial paper programs in the U.S. and Canada. Tyco Capital also maintains committed bank lines of credit to provide back...

  • Page 41
    The following tables provide information regarding Tyco Capital's financial instruments which are sensitive to interest rates and foreign currency exchange rates, and is based upon the contractual rates of Tyco Capital's financial instruments at September 30, 2001. The amounts included in the table ...

  • Page 42
    ... exchange rate Receive US$/Pay Hong Kong Dollar Average contractual exchange rate Receive US$/Pay Korean Won Average contractual exchange rate Receive US$/Pay Singapore Dollar Average contractual exchange rate Receive US$/Pay Swiss Franc Average contractual exchange rate Receive US$/Pay New Zealand...

  • Page 43
    ..., written statements or other documents filed with the Securities and Exchange Commission, or in Tyco's communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls and conference calls, regarding the consummation and benefits of...

  • Page 44
    ... accounts ($550.4 at September 30, 2001 and $442.1 at September 30, 2000 consolidated) Inventories Finance receivables, net Construction in progress-TyCom Global Network TyCom Global Network placed in service, net Property, plant and equipment (including equipment leased to others), net Investment...

  • Page 45
    TYCO INDUSTRIAL T Y C O C A P I TA L 2001 2000 2001 $ 1,779.2 6,453.2 5,101.3 - 1,643.8 698.6 9,970.3 10,598.0 28,740.9 3,616.7 2,420.6 $71,022.6 $ 1,264.8 5,630.4 3,845.1 - 111.1 - 8,218.4 - 16,332.6 3,786.1 1,215.8 $40,404.3 $ ...

  • Page 46
    ...P T P E R S H A R E D ATA ) 2001 2000 19 9 9 R EVEN U ES Net revenue Finance income Other income Earnings of Tyco Capital Net gain on sale of common shares of subsidiary Net gain on sale of businesses and investments T O TAL R EVEN U ES C O ST S AN D EX P EN SES $34,036.6 1,676.3 334.9 - 64.1 276...

  • Page 47
    TYCO INDUSTRIAL T Y C O C A P I TA L FOR THE YEAR ENDED S E P T E M B E R 3 0, FOR THE PERIOD JUNE 2 THROUGH S E P T E M B E R 3 0, 2001 2000 19 9 9 2001 $34,036.6 - - 252.5 64.1 276.6 34,629.8 20,950.3 6,361.5 776.5 - 233.6 184.3 120.1 28,626.3 6,003.5 (1,284.9) (47.5) 4,671.1 (17.1) (683...

  • Page 48
    ...property, plant and equipment, net Construction in progress-TyCom Global Network Purchase of leased property (Note 3) Acquisition of businesses, net of cash acquired Disposal of businesses, net of cash sold Capital contribution Net (increase) decrease in investments Other Net cash (used in) provided...

  • Page 49
    TYCO INDUSTRIAL T Y C O C A P I TA L FOR THE YEAR ENDED S E P T E M B E R 3 0, FOR THE PERIOD JUNE 2 THROUGH S E P T E M B E R 3 0, 2001 2000 19 9 9 2001 $ 3,970.6 (252.5) 145.2 184.3 120.1 683.4 47.5 (276.6) (64.1) - - 1,243.1 897.5 108.4 219.0 593.5 81.8 (434.1) 490.6 (678.8) 121.2 (551.1)...

  • Page 50
    ... income Exchange of ADT Liquid Yield Option Notes Dividends Restricted stock grants, net of surrenders Warrants and options exercised Repurchase of common shares by subsidiary Amortization of deferred compensation Issuance of common shares for acquisitions Tax benefit on stock transactions Other...

  • Page 51
    ... of accounting for the mergers and, therefore, reflect the combined financial position, operating results and cash flows of U.S. Surgical and AMP as if they had been subsidiaries of Tyco for all periods presented. BUSINESS Fire and Security Services' products and services include: • designing...

  • Page 52
    ... leases. The amounts outstanding on loans and leases are referred to as finance receivables. Financing and leasing assets consist of finance receivables, finance receivables held for sale, net book value of operating lease equipment and certain investments. At the time of designation for sale...

  • Page 53
    ... a premium to their par value, the resulting premium is credited to a share premium account, a non-distributable reserve. When Tyco issues shares in exchange for shares of another company, the excess of the fair value of the shares acquired over the par value of the shares issued by Tyco is credited...

  • Page 54
    ... portion of the funding is provided by third party lenders on a nonrecourse basis, with Tyco Capital providing the balance and acquiring title to the property. Leveraged leases are recorded at the aggregate value of future minimum lease payments plus estimated residual value, less nonrecourse third...

  • Page 55
    ... accounting model for impairment of long-lived assets. The Company is currently assessing the impact of this new standard. R E C L A S S I F I C AT I O N S Certain prior year amounts have been reclassified to conform with current year presentation. STOCK SPLITS Per share amounts and share data...

  • Page 56
    ... 2001 Receivables Inventories Finance receivables, net Property, plant and equipment, net Goodwill and other intangible assets Other assets Accounts payable Accrued expenses and other current liabilities Other long-term liabilities Cash consideration paid (net of cash acquired) Share consideration...

  • Page 57
    ...&D was written off during the quarter ended December 31, 2000. The value of the purchased IPR&D was based on the value of the various projects utilizing the discounted cash flow method. This valuation included consideration of (i) the stage of completion of each of SEVERANCE NUMBER OF EMPLOYEES the...

  • Page 58
    ... values of certain assets acquired and liabilities assumed. In October 2000, the Company sold its ADT Automotive business to Manheim Auctions, Inc., a wholly-owned subsidiary of Cox Enterprises, Inc., for approximately $1.0 billion in cash. The Company recorded a net gain on the sale of businesses...

  • Page 59
    ...shares valued at $1,449.6 million. The cash portions of the acquisition costs were funded utilizing cash on hand, the issuance of long-term debt and borrowings under the Company's commercial paper program. Debt of acquired companies aggregated $926.9 million. Each of these acquisitions was accounted...

  • Page 60
    ... terms to borrowers of similar credit quality. The net carrying value of lease finance receivables not subject to fair value disclosure totaled $8.2 billion. 5 . I N VEST M EN T S I N D EBT AN D EQ U I T Y SEC U R I T I ES 58 At September 30, 2001 and 2000, Tyco Industrial had availablefor-sale...

  • Page 61
    ... the retained interests at the date of securitization for transactions completed during the period from June 2 through September 30, 2001 were as follows: COMMERCIAL EQUIPMENT Prepayment speed Expected credit losses Weighted average discount rate Weighted average life (in years) 6.98% -56.74% 0.00...

  • Page 62
    ... position over its other debt obligations. Tyco Capital Corporation's debt is not an obligation of Tyco Industrial, and Tyco International Ltd. has not guaranteed this debt. (2) Tyco Industrial plans to use its long-term credit facilities to support borrowings under its commercial paper program. 60

  • Page 63
    ... 2001, Tyco and TIG filed a shelf registration statement to enable TIG to offer from time to time unsecured debt securities guaranteed by Tyco at an aggregate initial offering price not to exceed $6.0 billion. The fair value of debt of Tyco Industrial was approximately $21,895.0 million (book value...

  • Page 64
    ... a separate agreement to sell a defined pool of trade accounts receivable from time to time to a financial institution in Europe. The terms and conditions of the agreement are substantially similar to the program discussed above, although in this case there is no limited purpose subsidiary acting as...

  • Page 65
    ... interest, payable annually, at a rate which approximates the Company's incremental short-term borrowing rate. Loans are generally repayable in ten years, except that earlier payments are required under certain circumstances. During Fiscal 2001, the maximum amount outstanding under this program was...

  • Page 66
    ... P R EFER EN C E SH AR ES Tyco has authorized 125,000,000 preference shares, par value of $1 per share, none of which was issued or outstanding at September 30, 2001 or 2000. Rights as to dividends, return of capital, redemption, conversion, voting and otherwise may be determined by Tyco's Board of...

  • Page 67
    ... of the grants and from the payment of dividends on unvested shares, are credited to contributed surplus. EMPLOYEE STOCK PURCHASE PLAN Substantially all full-time employees of the Company's U.S. subsidiaries and employees of certain qualified non-U.S. subsidiaries are eligible to participate in an...

  • Page 68
    ... 1999 was $12.13 and $7.11, respectively. The following weighted-average assumptions were used for Fiscal 2001: TYCO TYCOM Expected stock price volatility Risk free interest rate Expected annual dividend yield per share Expected life of options 39% 5.18% $0.05 4.4 years 80% 4.71% - 4.0 years 66

  • Page 69
    ... Expected stock price volatility Risk free interest rate Expected annual dividend yield per share Expected life of options 36% 6.35% $0.05 4.5 years 60% 6.19% - 4.5 years Tyco has paid a quarterly cash dividend of $0.0125 per common share since July 1997. AMP paid dividends of $0.27 per share in...

  • Page 70
    ... number of sales arrangements that delayed the recognition of revenue under SAB 101. During the fourth quarter of Fiscal 2001, the Company changed its method of accounting for these items retroactive to the beginning of the fiscal year to conform to the requirements of SAB 101. This was reported...

  • Page 71
    ... R EST R U C T U R I N G AN D O T H ER N O N - R EC U R R I N G C H AR GES, N ET Merger, restructuring and other non-recurring charges, net, are as follows: ($ IN MILLIONS) 2001 2000 19 9 9 Electronics Fire and Security Services Healthcare and Specialty Products Telecommunications Corporate $ 386...

  • Page 72
    ...a restructuring of the valves and controls business. The following table provides information about the restructuring and other nonrecurring charges related to the Fire and Security Services segment recorded in Fiscal 2001: SEVERANCE NUMBER OF EMPLOYEES FA C I L I T I E S - R E L AT E D NUMBER OF FA...

  • Page 73
    ... in other longterm liabilities on the Consolidated Balance Sheet, is primarily for payments on non-cancelable lease obligations. In Fiscal 2000, the Fire and Security Services segment recorded restructuring and other non-recurring credits of $11.2 million related to revisions in estimates of the...

  • Page 74
    ... I T M EN T S AN D C O N T I N GEN C I ES The Company occupies certain facilities under leases that expire at various dates through the year 2031. Rental expense under these leases and leases for equipment was $652.5 million, $442.7 million and $381.0 million for Fiscal 2001, Fiscal 2000 and Fiscal...

  • Page 75
    ... Capital will be the contractual amount outstanding less the value of all underlying collateral and guarantees. During 2001, Tyco Capital entered into an agreement with The Boeing Company to purchase 25 aircraft with a list price of more than $1.3 billion, with options to purchase an additional five...

  • Page 76
    ...) 2001 2000 NON-U.S. PLANS 2001 2000 C H AN GE I N BEN EFI T O BLI GAT I O N Benefit obligation at beginning of year Service cost Interest cost Employee contributions Plan amendments Actuarial loss (gain) Benefits paid Acquisitions Plan curtailments Plan settlements Special termination benefits...

  • Page 77
    ...'s acquired operations provide these benefits to employees who were eligible at the date of acquisition. AMP provides postretirement health care coverage to qualifying U.S. retirees. As a result of the merger with the Company, a $13.7 million adjustment was recorded to conform AMP's accounting...

  • Page 78
    ... segment, see Note 1. During Fiscal 2001, a change was made to the Company's internal reporting structure such that the operations of the former Flow Control Products and Services segment are now reported in part within the Fire and Security Services and in part within the Electronics segments. The...

  • Page 79
    ...E R 3 0, ($ IN MILLIONS) 2001 2000 19 9 9 AT S E P T E M B E R 3 0, ($ IN MILLIONS) 2001 2000 19 9 9 T O TAL R EVEN U ES: T O TAL ASSET S: Americas (primarily U.S.) Europe Asia-Pacific Corporate(1) Tyco Industrial segments Electronics Fire and Security Services Healthcare and Specialty Products...

  • Page 80
    Net property, plant and equipment (including equipment leased to others) is as follows: S E P T E M B E R 3 0, ($ IN MILLIONS) 2001 2000 2 8 . SU P P LEM EN TARY C ASH FLO W I N FO R M AT I O N Selected supplementary cash flow information is presented below. Tyco Industrial's net proceeds from ...

  • Page 81
    ..., of which a charge of $25.0 million is included in cost of revenue. The net credit consists of a net gain on the sale of businesses of $410.4 million principally related to the sale of ADT Automotive; a write-off of purchased in-process research and development of $184.3 million; a non-recurring...

  • Page 82
    ...to the merger with AMP and AMP's profit improvement plan. (4) Includes a non-recurring gain on issuance of common shares by subsidiary of $1,760.0 million. Also includes charges of $275.0 million as a reserve for certain claims relating to a merged company in the Healthcare business, a non-recurring...

  • Page 83
    ...AT I O N AL GR O U P S. A. During Fiscal 2001 and Fiscal 2000, Tyco International Group S.A. ("TIG"), a wholly-owned subsidiary of the Company, issued public debt securities (see Note 6) which are fully and unconditionally guaranteed by Tyco. The following presents condensed consolidating financial...

  • Page 84
    ... Construction in progress-TyCom Global Network Property, plant and equipment (including equipment leased to others), net Goodwill and other intangible assets, net Investment in subsidiaries Intercompany loans receivable Other assets T O TAL ASSET S LI ABI LI T I ES AN D SH AR EH O LD ER S' EQ...

  • Page 85
    ...non-recurring charges, net Write-off of purchased in-process research and development Charges for the impairment of long-lived assets Intercompany dividends, interest and fees Total costs and expenses I N C O M E BEFO R E I N C O M E TAX ES, M I N O R I T Y I N T ER EST, EX T R AO R D I N ARY I T EM...

  • Page 86
    ...A L GROUP S.A. ($ IN MILLIONS) TYCO I N T E R N AT I O N A L LT D . OTHER SUBSIDIARIES C O N S O L I D AT I N G ADJUSTMENTS T O TA L R EVEN U ES Net revenue Equity in net income of unconsolidated subsidiaries Gain on sale of common shares by subsidiary Total revenues C O ST S AN D EX P EN SES...

  • Page 87
    ... Net decrease in Tyco Capital financing and leasing assets Purchase of property, plant and equipment, net Construction in progress-TyCom Global Network Acquisition of businesses, net of cash acquired Disposal of businesses, net of cash sold Net decrease (increase) in investments Decrease (increase...

  • Page 88
    ... Purchase of property, plant and equipment, net Acquisition of businesses, net of cash acquired Disposal of businesses, net of cash sold Net decrease (increase) in investments (Increase) in intercompany loans (Increase) in investment in subsidiaries Other Net cash used in investing activities C ASH...

  • Page 89
    ...2,983.4 689.1 1,072.9 $ 1,762.0 3 1 . SU BSEQ U EN T EVEN T S On October 26, 2001, TIG sold $1,500.0 million 6.375% notes due 2011 under its $6.0 billion shelf registration statement in a public offering. The notes are fully and unconditionally guaranteed by Tyco. The net proceeds of approximately...

  • Page 90
    ..., the financial position of Tyco International Ltd. and its subsidiaries at September 30, 2001 and 2000, and the results of their operations and their cash flows for each of the three years in the period ended September 30, 2001, in conformity with accounting principles generally accepted in the...

  • Page 91
    ...I VI D EN D S The number of registered holders of Tyco's common shares at November 7, 2001 was 45,854. Tyco common shares are listed and traded on the New York Stock Exchange ("NYSE") and the Bermuda Stock Exchange under the symbol "TYC," and on the London Stock Exchange under the symbol "TYI." The...

  • Page 92
    ... H. Swartz Executive Vice President Chief Financial Officer B U SIN ESS SEGM EN T PRESIDEN TS Jerry R. Boggess President - Tyco Fire and Security Services Albert R. Gamper, Jr. President - Tyco Capital Jürgen W. Gromer President - Tyco Electronics Richard J. Meelia President - Tyco Healthcare 90

  • Page 93
    ... shareholders (shares held in your own name) with questions regarding your account such as change of address, lost certificates or dividend checks should contact our transfer agent at: Mellon Investor Services, L.L.C. Overpeck Centre 85 Challenger Road Ridgefield, NJ 07660 U.S.A. Tel: toll-free (in...

  • Page 94
    THE ZURICH CENTRE 2ND FLOOR 90 PITTS BAY ROAD PEMBROKE HM 08 BERMUDA WWW.TYCO.COM