ADT 2002 Annual Report Download

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 2 ON FORM 10-K/A
TO FORM 10-K
(ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended September 30, 2002
OR
9TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
001-13836
(Commission File Number)
TYCO INTERNATIONAL LTD.
(Exact name of registrant as specified in its charter)
Bermuda 98-0390500
(Jurisdiction of Incorporation) (IRS Employer Identification No.)
The Zurich Centre, Second Floor, 90 Pitts Bay Road, Pembroke HM 08, Bermuda
(Address of registrant’s principal executive office)
441-292-8674
(Registrant’s telephone number)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
Common Shares, Par Value $0.20 New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes (No 9.
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not
contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or
information statements incorporated by reference in Part III or this Form 10-K or any amendment to this
Form 10-K. 9.
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act
Rule 12b-2) Yes (No 9.
The aggregate market value of voting common shares held by nonaffiliates of registrant was
$35,222,039,973 as of July 25, 2003.
The number of common shares outstanding as of July 25, 2003 was 1,997,333,756.
DOCUMENTS INCORPORATED BY REFERENCE
See pages 32 to 35 for the exhibit index.

Table of contents

  • Page 1
    ...Floor, 90 Pitts Bay Road, Pembroke HM 08, Bermuda (Address of registrant's principal executive office) 441-292-8674 (Registrant's telephone number) Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Shares, Par Value $0.20 Name of each exchange on which registered...

  • Page 2

  • Page 3
    ... of the Company's Consolidated Financial Statements for the fiscal years ended September 30, 2002, 2001, 2000, 1999 and 1998, in connection with a review of our financial statements and related disclosures by the Staff of the Division of Corporation Finance of the U.S. Securities and Exchange...

  • Page 4
    ...Plaintiffs name as defendants Tyco and twelve of our former officers and directors. The complaint asserts four causes of action under the California Corporate Securities Laws of 1968. The complaint alleges that plaintiffs purchased, in exchange for releases of claims against Tyco, Tyco common shares...

  • Page 5
    ... damages and attorneys' fees and expenses. A class action complaint was filed on July 1, 2003 in the United States District Court for the Southern District of Florida, Chang v. Tyco International Ltd. & Breen purporting to represent a class of purchasers of Tyco Securities between December 30, 2002...

  • Page 6
    ...II Item 6 Item 7. Item 7A. Item 8. Part III Item 14. Item 15. Controls and Procedures ...Exhibits, Financial Statement Schedules and Reports on Form 8-K ...29 32 36 39 Selected Financial Data ...Management's Discussion and Analysis of Financial Condition and Results of Operations ...Quantitative and...

  • Page 7
    ... and electronic components, and designs, manufactures, installs, operates and maintains undersea fiber optic cable communications systems; • designs, manufactures and distributes medical devices and supplies; • designs, manufactures, distributes and services engineered products including...

  • Page 8
    ... services. Our commercial customers include financial institutions, industrial and commercial businesses, federal, state and local governments, defense installations, and health care and educational facilities. We provide residential electronic security services primarily in North America and Europe...

  • Page 9
    ...several national companies and several thousand regional and local companies in Europe, the Middle East, the Asia-Pacific region, Latin America and South Africa. Competition is based primarily on price in relation to quality of service. We believe that the quality of our electronic security services...

  • Page 10
    ...manufactures and sells more than 500,000 parts in over 750 global product lines, including power systems, terminals, fiber optic components, printed circuit board and cable connectors and assemblies, cable and cabling systems, and related application tools and application tooling equipment. Products...

  • Page 11
    ... and Radionics. This group of companies develops, manufactures and markets a broad spectrum of widely recognized surgical products that are used in operating rooms worldwide. Some of these products are also used in emergency rooms, surgi-centers and physician offices. U.S. Surgical is a market...

  • Page 12
    ..., branded central nervous systems products and contract pharmaceutical manufacturing for third parties. These products are sold to major wholesalers and drug store chains. The Specialty Chemicals business includes a wide array of specialty chemicals targeted at: research and development and...

  • Page 13
    ... control systems and vapor control products. These products are manufactured in Tyco's facilities located in North America, Europe, South America and the Asia-Pacific region. The group's products are used in various applications including power generation, chemical, petrochemical, oil and gas, water...

  • Page 14
    ... is manufactured and sold under the trade names of Frefer and Dinaco. These businesses serve a wide spectrum of customers and applications ranging from automotive, fire protection, security and safety containment, recreational equipment, commercial construction and traffic control systems. Products...

  • Page 15
    ...or directly to end-users. Tyco Plastics competes with other nationally recognized brands as well as many smaller regional producers on the basis of price, delivery, breadth of product line and specialized product capabilities. Manufacturing facilities are located throughout the United States, Canada...

  • Page 16
    ... as sales and marketing, engineering and administrative offices. Within the Fire and Security Services segment, the fire protection contracting and service business operates through a network of offices located in North America, Central America, South America, Europe, the Middle East and the Asia...

  • Page 17
    ... and Security Services segment occupies approximately 27.5 million square feet, of which 5.7 million square feet are owned and 21.8 million square feet are leased. The Electronics segment has manufacturing facilities in North America, Central and South America, Europe, Asia and Australia. The group...

  • Page 18
    ... Massachusetts corporation, and ADT Limited (a public company that had been located in Bermuda since the 1980's with origins dating back to the United Kingdom since the early 1900's). Currently, Tyco's revenues related to U.S. federal government contracts account for less than 3% of net revenues for...

  • Page 19
    ...the United States Environmental Protection Agency, and from state environmental agencies, that conditions at a number of sites where we and others disposed of hazardous wastes require cleanup and other possible remedial action and may be the basis for monetary sanctions. We have projects underway at...

  • Page 20
    ... significant time and effort dealing with internal and external investigations, developing effective corporate governance procedures, strengthening reporting lines and reviewing internal controls. During this period and in order to complete this process, our new executives will depend in part on...

  • Page 21
    ... Tyco. The Phase 2 review was not an exhaustive review of our accounting and governance. In December 2002, we released a report summarizing the findings of the Phase 2 review. The Phase 2 review covered a variety of aspects of our accounting, including a review of many specific accounting policies...

  • Page 22
    ... alleged breaches of fiduciary duties, fraud and other wrongful conduct on the part of certain former officers and directors of Tyco. In addition, our publicly traded securities, and the global stock markets generally, have experienced significant price and volume fluctuations over the past year. We...

  • Page 23
    ..., and minimum levels of net worth and restrictive covenants that limit the amount of debt we can incur and restrict our ability to pay dividends or make other payments in connection with our capital stock, to make acquisitions or investments, to enter into sale/leaseback transactions, to pledge...

  • Page 24
    ... from other business segments. For example, our Fire and Security Services segment purchases certain products sold by our Engineered Products and Services segment. Therefore, a drop in demand for our fire prevention products, due to lower new residential or office construction or other factors, can...

  • Page 25
    ... Protection Agency and certain foreign and state environmental agencies that conditions at a number of sites where we and others disposed of hazardous wastes require clean-up and other possible remedial action and may be the basis for monetary sanctions. We also have a number of projects...

  • Page 26
    ... and amortization expense. Attrition rates for customers in our global electronic security services business have increased to 14.4% on a trailing 12-month basis for the quarter ended March 31, 2003, compared to 13.2%, 12.3% and 13.0% for the full fiscal years ended September 30, 2002, 2001 and 2000...

  • Page 27
    ...and officers for any personal liability, not involving fraud or dishonesty, incurred in relation to the company. Available Information Our Internet website is http://investors.tycoint.com/edgar.cfm. We make available free of charge on our website our annual reports on Form 10-K, quarterly reports on...

  • Page 28
    ... and related notes. The selected financial data reflect the combined results of operations and financial position of Tyco, United States Surgical Corporation (''U.S. Surgical'') and AMP Incorporated (''AMP''). During fiscal 1999, subsidiaries of Tyco merged with U.S. Surgical and AMP. Both merger...

  • Page 29
    ... charges, a charge for the write-off of in-process research and development of $184.3 million and charges of $120.1 million for the impairment of long-lived assets. Income from continuing operations for the fiscal year ended September 30, 2001 also includes a net gain on sale of businesses of $410...

  • Page 30
    ... Supplementary Data The following consolidated financial statements and schedule are filed as part of this Annual Report: Financial Statements: Management's Responsibility for Financial Statements Report of Independent Accountants Consolidated Statements of Operations (restated) for the fiscal years...

  • Page 31
    ... periods to which they relate as described in Note 1 to the financial statements included elsewhere herein. Additionally, our new senior management team in conjunction with our Board of Directors reviewed overall company policies and procedures in areas that were viewed as important. Specific areas...

  • Page 32
    ... to improving the state of our internal controls, corporate governance and financial reporting. Our Board of Directors and new senior management have initiated the following actions: • Replaced the Board of Directors; • Created new Board charters; • Created a new employee guide to ethical...

  • Page 33
    ... primarily related to corporate pension and deferred compensation accruals, asset reserve adjustments and other accounting adjustment (i.e., purchase price accounting accruals, deferred commissions, accounting related to leases in the Fire and Security Services and Engineered Products and Services...

  • Page 34
    ... the Registrant's Annual Report on Form 10-K for the fiscal year ended September 30, 2001 filed December 28, 2001). Agreement and Plan of Merger dated March 12, 2001, by and between Tyco Acquisition Corp. XIX (NV) and The CIT Group, Inc., including guarantee of Tyco International Ltd. (Incorporated...

  • Page 35
    ... by reference to an Exhibit to the Registrant's Annual Report on Form 10-K for the fiscal year ended September 30, 2001 filed December 28, 2001). The Tyco International Ltd. Long Term Incentive Plan (formerly known as the ADT 1993 Long-Term Incentive Plan) (as amended May 12, 1999) (Incorporated by...

  • Page 36
    ...(2) Management contract or compensatory plan. In July 1997, a wholly-owned subsidiary of what was formerly called ADT Limited (''ADT'') merged with Tyco International Ltd., a Massachusetts Corporation at the time (''Former Tyco''). Upon consummation of the merger, ADT (the continuing public company...

  • Page 37
    (b) Reports on Form 8-K Current Report on Form 8-K filed on July 26, 2002 including, as an exhibit, the press release of Tyco dated July 25, 2002 announcing the appointment of Edward D. Breen as Chairman of the Board of Directors and Chief Executive Officer of Tyco International Ltd. Current Report ...

  • Page 38
    ... No. 2 on Form 10-K/A to Form 10-K be signed on its behalf by the undersigned, thereunto duly authorized. TYCO INTERNATIONAL LTD. By: /s/ DAVID J. FITZPATRICK David J. FitzPatrick Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) Date: July 29, 2003...

  • Page 39
    ... EXECUTIVE OFFICER I, Edward D. Breen, certify that: 1. 2. I have reviewed this Amendment No. 2 on Form 10-K/A to the annual report on Form 10-K of Tyco International Ltd.; Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material...

  • Page 40
    ... CHIEF FINANCIAL OFFICER I, David J. FitzPatrick, certify that: 1. 2. I have reviewed this Amendment No. 2 on Form 10-K/A to the annual report on Form 10-K of Tyco International Ltd.; Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state...

  • Page 41
    TYCO INTERNATIONAL LTD. Index to Consolidated Financial Information Page Management's Responsibility for Financial Statements ...Report of Independent Accountants ...Consolidated Statements of Operations (restated) ...Consolidated Balance Sheets (restated) ...Consolidated Statements of Shareholders...

  • Page 42
    ... statements. Their accompanying report is based on audits conducted in accordance with auditing standards generally accepted in the United States of America, which include the consideration of the Company's internal controls to establish a basis for determining the nature, timing and extent of audit...

  • Page 43
    ... with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the...

  • Page 44
    ...848.0 Net revenues ...Cost of product sales ...Cost of services ...Selling, general and administrative expenses ...Restructuring and other charges, net ...Charges for the impairment of long-lived assets ...Goodwill impairment ...Write-off of purchased in-process research and development Operating...

  • Page 45
    ...,000 shares authorized; 1,995,699,758 and 1,935,464,840 shares outstanding, net of 22,522,250 and 17,026,256 shares owned by subsidiaries at September 30, 2002 and 2001, respectively ...399.1 387.1 Capital in excess: Share premium ...8,146.9 7,962.8 Contributed surplus, net of deferred compensation...

  • Page 46
    ... income ...Sale of common shares ...Exchange of ADT Liquid Yield Option Notes ...Dividends ...Restricted stock grants, net of surrenders . . Options exercised ...Repurchase of common shares by subsidiary Equity-related compensation expense, including amortization of deferred compensation ...Issuance...

  • Page 47
    ... of property, plant and equipment, net ...Construction in progress-Tyco Global Network ...Acquisition of businesses, net of cash acquired ...Acquisition of customer accounts (ADT dealer program) ...Cash paid for purchase accounting and holdback/earn-out liabilities Net proceeds from the sale of CIT...

  • Page 48
    ...'s new senior management team. The review included an examination of Tyco's reported revenues, profits, cash flow, internal auditing and control procedures, accounting for major acquisitions and reserves, the use of non-recurring charges, as well as corporate governance issues such as the personal...

  • Page 49
    ... primarily related to corporate pension and deferred compensation accruals, assets reserve adjustments and other accounting adjustments (i.e., purchase price accounting accruals, deferred commissions, accounting related to leases in the Fire and Security Services and Engineered Products and Services...

  • Page 50
    ... and operating its ADT dealer program, including brand advertising costs and due diligence costs relating to contracts offered for sale to the Company under the ADT dealer program. Dealers pay the Company a non-refundable amount for each of the contracts sold to the Company representing their...

  • Page 51
    ... the prior quarters and years to which they relate. These charges relate primarily to intercompany profit, capitalized costs, and account reconciliation issues within the Engineered Products and Services segment. In addition, in connection with the Phase 2 review the Company recorded a balance sheet...

  • Page 52
    ...3,968.4 Net revenues ...Cost of product sales ...Cost of services ...Selling, general and administrative expenses . . Restructuring and other charges, net ...Charges for impairment of long-lived assets . . Goodwill impairment ...Write-off of purchased in-process research and development ...Operating...

  • Page 53
    ... Operations Tyco Global Network ...Property, Plant and Equipment, Net . . Goodwill, Net ...Intangible Assets, Net ...Other Assets ... Total Assets ...Liabilities and Shareholders' Equity Current Liabilities: Loans payable and current maturities of long-term debt Accounts payable ...Accrued expenses...

  • Page 54
    ....3 6,429.9 5,275.0 5,156.4 Purchase of property, plant and equipment ...Construction in progress-Tyco Global Network ...Acquisition of businesses, net of cash acquired . Acquisition of customer accounts (ADT dealer program)(1) ...Other investing activities ...Net cash provided by (used in) investing...

  • Page 55
    ... Deferred Costs ...Reconciliation Items ...Adjustments to Accrual Balances ...Asset Reserve Adjustments ...Other Accounting Adjustments ...Customer Contract Amortization Method ADT Dealer Reimbursements ...TyCom Network Transaction ...Healthcare Divestiture Transaction ...Insurance and Compensation...

  • Page 56
    ..., manufactures, installs, operates and maintains fiber optic undersea cable communications systems. • Healthcare designs, manufactures and distributes medical devices and supplies. • Engineered Products and Services designs, manufactures, distributes and services engineered products including...

  • Page 57
    ... and recognized as revenue as the services are rendered, and the associated deferred revenue is included in current liabilities or long-term liabilities, as appropriate. Contract sales for the installation of fire protection systems, undersea fiber optic cable systems and other construction related...

  • Page 58
    ... related assets as follows: Buildings and related improvements ...Leasehold improvements ...Subscriber systems ...Other plant, machinery, equipment and furniture and fixtures ...Tyco Global Network-placed in service ...5 to 50 years Remaining term of the lease 10 to 14 years 2 to 25 years 15 years...

  • Page 59
    ... Accounting Policies (continued) The Company generally divides its electronic security assets into various asset pools: internally generated residential systems, internally generated commercial systems and customer accounts acquired through the ADT dealer program. Subscriber systems represent...

  • Page 60
    ... of Significant Accounting Policies (continued) time the contract is accepted for purchase. This non-refundable charge represents dealer reimbursement to the Company for costs incurred by the Company associated with maintaining and operating the ADT dealer program, including brand advertising, and...

  • Page 61
    ....1 million were included in long-term assets respectively. Share Premium and Contributed Surplus-In accordance with the Bermuda Companies Act of 1981, when Tyco issues shares for cash at a premium to their par value, the resulting premium is credited to a share premium account, a non-distributable...

  • Page 62
    TYCO INTERNATIONAL LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 1. Basis of Presentation, Restatement and Summary of Significant Accounting Policies (continued) As part of managing the exposure to changes in market interest rates, the Company, as an enduser, enters into various ...

  • Page 63
    ... in cash (includes $1,139.3 million related to the purchase of residential security monitoring contracts under the ADT dealer program), net of $158.0 million of cash acquired, the issuance of approximately 47.8 million common shares valued at $1,918.8 million, plus the fair value of stock options...

  • Page 64
    ... value of these earn-out common shares is based upon the fair value of the stock at the time of issuance. The cash portions of the acquisition costs were funded utilizing net proceeds from the issuance of long-term debt. The results of operations of the acquired companies have been included in Tyco...

  • Page 65
    ...of acquired companies to cost effectively introduce Tyco's products to new geographic areas. The Company also targets companies that are perceived to be experiencing depressed financial performance. All of these factors contribute to acquisition prices in excess of the fair value of identifiable net...

  • Page 66
    ... and has been integrated within the Engineered Products and Services segment. In addition to the acquisitions listed above, Tyco paid cash of $1,139.3 million to acquire approximately 1.4 million customer contracts for electronic security services through the ADT dealer program and $459.0 million to...

  • Page 67
    ... United States, 48 facilities in Europe, 24 facilities in the Asia-Pacific region, 14 facilities in Canada and 3 facilities in Latin America, consisting primarily of administrative offices, sales offices, manufacturing plants and distribution centers. At September 30, 2002, 2,833 employees had been...

  • Page 68
    ... million are included in other long-term liabilities. Tyco expects that the termination of employees and consolidation of facilities related to all acquisitions will be substantially complete within two years of the related dates of acquisition, except for long-term non-cancellable lease obligations...

  • Page 69
    ... charge of $17.8 million for the write-off of purchased in-process research and development associated with the acquisition of Sensormatic discussed in Note 7. (2) Includes a net gain on sale of businesses of $410.4 million related primarily to the sale of ADT Automotive; a loss of $133.8 million...

  • Page 70
    ...million common shares valued at $3,904.6 million, plus the fair value of stock options assumed of $115.9 million. Of this $6,117.3 million, Tyco paid $798.1 million for approximately 1.0 million customer contracts for electronic security services through the ADT dealer program. The Company purchased...

  • Page 71
    ...in the United States, 54 facilities in Europe, 48 facilities in the Asia-Pacific region and 21 facilities in Canada and Latin America, consisting primarily of manufacturing plants, distribution facilities, sales offices, corporate administrative facilities and research and development facilities. At...

  • Page 72
    ...termination of employees and consolidation of facilities related to all such acquisitions will be substantially complete within one year of plan finalization, except for long-term non-cancellable lease obligations and certain long-term severance arrangements. In fiscal 2001, the Company sold its ADT...

  • Page 73
    ... approximately 550,000 customer contracts for electronic security services through the ADT dealer program. In addition, $544.2 million of cash was paid during fiscal 2000 for purchase accounting liabilities related to 2000 and prior years' acquisitions. Fiscal 2000 acquisitions include, among others...

  • Page 74
    ... 102 facilities located primarily in the Asia-Pacific region and the United States. These facilities include manufacturing plants, sales offices, corporate administrative facilities and research and development facilities. Included within these costs are accruals for non-cancelable leases associated...

  • Page 75
    ...for payments to employees already terminated with severance paid out over time), facility related costs (principally for rents under non-cancelable leases for vacated premises) and other costs. The following unaudited pro forma data summarize the results of operations for the periods indicated as if...

  • Page 76
    ...credits), charges for the impairment of long-lived assets, charges for the impairment of goodwill and the write-off of purchased in-process research and development (IPR&D), as described in Notes 5, 6, 7, and 16. Previously Reported For the Year Ended September 30, 2002 2001 2000 As Restated for the...

  • Page 77
    ... banking fees and other deal costs associated with the terminated breakup plan and certain acquisitions that were not completed, and to a lesser extent, severance associated with corporate employees and impairment charges of $29.5 million related to property, plant and equipment. (7) Includes a net...

  • Page 78
    ...) Revenue by Groups of Products: Security Services ...Fire Protection ...Electronics Components ...Telecommunications ...Healthcare ...Plastics and Adhesives ...ADT Automotive ...Flow Control ...Electrical and Metal Products ...Tyco Infrastructure Services ...Net revenues from external customers...

  • Page 79
    ...) For the Year Ended September 30, 2002 2001 2000 (restated) (restated) (restated) Depreciation and amortization: Fire and Security Services ...Electronics ...Healthcare ...Engineered Products and Services Plastics and Adhesives ...Corporate ...Capital expenditures, net : Fire and Security Services...

  • Page 80
    ... attributed to individual countries based on the reporting entity that records the transaction. As at and for the Year Ended September 30, 2002 2001 2000 (restated) (restated) (restated) Long-lived assets: United States ...Other Americas (excluding United States) Europe ...Asia-Pacific ...Corporate...

  • Page 81
    ...of which charges of $608.2 million are included in cost of sales and a bad debt provision of $115.0 million is included in selling, general and administrative expenses) primarily related to facility closures, inventory reserves and purchase commitment cancellations due to the significant downturn in...

  • Page 82
    ... of manufacturing personnel. Facilities-related costs of $250.2 million include building lease termination fees and other contract cancellation costs for the shutdown of 31 facilities, primarily manufacturing plants in the United States. At September 30, 2002, 4,336 employees had been terminated and...

  • Page 83
    ...legal fees and other deal costs associated with acquisitions that were not completed. The Engineered Products and Services segment recorded restructuring and other charges of $50.8 million, of which $6.2 million are included in cost of sales, primarily related to severance and facility-related costs...

  • Page 84
    ... 2001, the Fire and Security Services segment recorded a net restructuring and other charge of $84.1 million. The $84.1 million net charge consists of charges of $85.7 million, of which charges of $5.4 million are included in cost of sales, related primarily to the restructuring of the existing...

  • Page 85
    ...United States, Europe and Canada consisting primarily of sales offices and manufacturing plants. At September 30, 2002, 643 employees had been terminated and 153 facilities had been shut down. The other charges of $19.7 million consist primarily of contract cancellation costs and charges relating to...

  • Page 86
    ...of the cost for lease buyouts and distributor termination fees. In fiscal 2001, the Engineered Products and Services segment recorded restructuring and other charges of $57.3 million, of which $9.7 million are included in cost of sales, primarily related to a restructuring of the valves and controls...

  • Page 87
    TYCO INTERNATIONAL LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 5. Restructuring and Other Charges (Credits), Net (continued) Note 6) related to the Engineered Products and Services segment recorded in fiscal 2001 ($ in millions): Severance Number of Employees Amount Facilities-...

  • Page 88
    ... is included in accrued expenses and other current liabilities and $2.4 million is included in other long-term liabilities on the Consolidated Balance Sheet, is primarily for payments on non-cancelable lease obligations. In fiscal 2000, the Healthcare segment recorded a net merger, restructuring...

  • Page 89
    ... of the ADT dealer program. In addition, the Fire and Security Services segment recorded a charge of $109.1 million primarily related to the impairment of property, plant and equipment associated with the termination of a software development project. The software development project related to...

  • Page 90
    ... Company recorded a charge of $29.5 million related to the impairment of certain corporate properties associated with the downsizing of corporate headquarters discussed in Note 5. 2001 Charges The Electronics, Healthcare, Plastics and Adhesives, Engineered Products and Services and Fire and Security...

  • Page 91
    ... connection with Tyco's acquisition of Sensormatic and DSC Group, the Company wrote-off the fair value of purchased in-process research and development (''IPR&D'') of various projects for the development of new products and technologies in the amount of $17.8 million. Management determined the value...

  • Page 92
    ... that consist primarily of certain businesses within the Healthcare and Fire and Security Services segments. In connection with these dispositions, the Company recorded a net gain of $23.6 million. In fiscal 2001, the Company sold its ADT Automotive business to Manheim Auctions, Inc., a wholly-owned...

  • Page 93
    ... discussed in Note 1: Year Ended September 30, 2002 2001 2000 (restated) (restated) (restated) Notional U.S. federal income tax (benefit) expense at the statutory rate ...Adjustments to reconcile to the Company's income tax provision: U.S. state income tax provision, net ...Asset impairments...

  • Page 94
    ... tax authorities. In connection with such examinations, tax authorities, including the Internal Revenue Service, have raised issues and proposed tax deficiencies. The Company is reviewing the issues raised by the tax authorities and is contesting such proposed deficiencies. Amounts related to...

  • Page 95
    ... management and the Company's Board of Directors approved the sale of common shares of CIT in an IPO establishing a measurement date for discontinued operations. Accordingly, the results of Tyco Capital are presented as discontinued operations for all periods. Prior year amounts include Tyco Capital...

  • Page 96
    ... value to CIT in the planned separation of CIT from Tyco. Management obtained relevant market data from financial advisors regarding the range of price to earnings multiples and market condition discounts applicable to CIT as of March 31, 2002 and applied these market data to CIT's projected annual...

  • Page 97
    ... straight-line method over the lease term or projected economic life of the asset. Equipment acquired in satisfaction of loans and subsequently placed on operating lease is recorded at the lower of carrying value or estimated fair value when acquired. Lease receivables include leveraged leases, for...

  • Page 98
    ... in the month of origination using methods that generally approximate the interest method. Leveraged lease income is recognized on a basis calculated to achieve a constant after-tax rate of return for periods in which Tyco Capital has a positive investment in the transaction, net of related deferred...

  • Page 99
    ... policies with respect to the installation of electronic security systems (see ''Revenue Recognition'' within Note 1). In addition, in response to SAB 101, the Company undertook a review of its revenue recognition practices and identified certain provisions included in a limited number of sales...

  • Page 100
    ... fiscal 2001 also excludes 48.0 million and 26.4 million shares respectively, related to the Company's zero coupon convertible debentures due 2020 and 2021, respectively, because conversion conditions have not been met. 14. Sale of Accounts Receivable Tyco has several programs under which it sells...

  • Page 101
    TYCO INTERNATIONAL LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 14. Sale of Accounts Receivable (continued) Also on September 27, 2001, Tyco sold certain accounts receivable to Tyco Capital for net proceeds of approximately $297.8 million, which is net of a discount of $4.3 million...

  • Page 102
    ... terminated, the ADT dealer program. Due to a decrease in projected purchases of customer contracts through the ADT dealer program, an updated valuation using an income approach based on the present value of future cash flows as of September 30, 2002 was performed for the Security Services reporting...

  • Page 103
    ... in the future. We have elected to make July 1 the annual assessment date for all reporting units. See Note 11, ''Discontinued Operations of Tyco Capital (CIT Group Inc.),'' for information regarding the impairment of goodwill relating to Tyco Capital. Following is a reconciliation of previously...

  • Page 104
    ...provided to employees under the Company's Key Employee Loan Program for the payment of taxes upon the vesting of shares granted under our Restricted Share Ownership Plans. The loans are unsecured and bear interest, payable annually, at a rate based on the six month LIBOR rate, calculated annually as...

  • Page 105
    ..., Tyco purchased executive split dollar life insurance policies for Messrs. Kozlowski and Swartz and entered into a shared ownership agreement with each of them whereby the Company agreed to pay premiums for these insurance policies for an 11 year period beginning in fiscal 2001. In 2001, amended...

  • Page 106
    ... we compensated Mr. Berman at an annual rate of $360,000 and provided Mr. Berman with health benefits, secretarial assistance, a cell phone and electronic security services for his homes. We also reimbursed Mr. Berman for legal fees and expenses incurred by him in connection with matters relating to...

  • Page 107
    ... Officer, for breach of fiduciary duty and other wrongful conduct relating to alleged abuses of our Key Employee Loan Program and relocation program, unauthorized bonuses, unauthorized payments, self-dealing transactions or other improper conduct. As previously reported in our Current Report on Form...

  • Page 108
    ... with the respective offering documents. (2) In February 2002, Tyco International Group S.A. (''TIG'') borrowed the available $2.0 billion of capacity under its 5-year unsecured revolving credit facility, which had been maintained as liquidity support for its commercial paper program. The facility...

  • Page 109
    ...thereof. If the holders of the debentures exercise their put option, the number of common shares needed to satisfy the put option in lieu of cash is the fair value of Tyco's stock, based on the price for a defined period of time around the settlement date. Based on Tyco's stock prices as of a recent...

  • Page 110
    ... Tyco's reported interest expense was a reduction of $116.1 million, $9.7 million and $6.6 million for fiscal 2002, fiscal 2001 and fiscal 2000, respectively. 19. Financial Instruments The Company's financial instruments consist primarily of cash and cash equivalents, accounts receivable, long-term...

  • Page 111
    ...$19.7 million, respectively, have been recognized in interest expense, net, along with the effective element of the changes in fair value of the interest rate swaps and the related hedged debt. Net Investments In fiscal 2001, Tyco used cross currency swaps and designated portions of foreign-currency...

  • Page 112
    ... taken by our former senior management, Tyco and certain members of our former senior management are named defendants in a number of purported class actions alleging violations of the disclosure provisions of the federal securities laws, a number of derivative actions and several ERISA claims, and...

  • Page 113
    ...benefit plans are based on various factors, such as years of service and compensation. The following tables exclude amounts related to the discontinued operations of CIT for all periods presented. The net periodic pension cost (income) for all U.S. and non-U.S. defined benefit pension plans includes...

  • Page 114
    ....2 3.0 $ 91.5 $ 69.4 $ 54.3 Net periodic benefit cost ... The curtailment/settlement gains in fiscal 2001 in the U.S. relate primarily to the freezing of certain pension plans. These curtailment/settlement gains have been recorded in selling, general and administrative expenses in the Consolidated...

  • Page 115
    ... of year . Actual return on plan assets ...Employer contributions ...Employee contributions ...Acquisitions ...Plan settlements ...Benefits paid ...Administrative expenses paid ...Currency translation adjustment ...Funded status ...Unrecognized net actuarial loss . Unrecognized prior service cost...

  • Page 116
    ..., $929.4 million and $598.0 million, respectively, at September 30, 2001. The Company also participates in a number of multi-employer defined benefit plans on behalf of certain employees. Pension expense related to multi-employer plans was $17.1 million, $6.4 million and $8.2 million for fiscal 2002...

  • Page 117
    ... and remain at that level thereafter. At year-end, the composite annual rate of increase in health care benefit costs was increased to 11.55%, decreasing to 5.00% by the year 2011. A one-percentage-point change in assumed healthcare cost trend rates would have the following effects ($ in millions...

  • Page 118
    ...shares. In fiscal 2001, Tyco sold 39 million common shares for approximately $2,198.0 million in an underwritten public offering. Net proceeds from the offering were $2,196.6 million and were used to repay debt incurred to finance a portion of the acquisition of CIT. Per share amounts and share data...

  • Page 119
    ... on the open market. Share Options-Tyco has granted employee share options which were issued under two fixed share option plans which reserve common shares for issuance to Tyco's directors, executives and managers. The majority of options have been granted under the Tyco International Ltd. Long-Term...

  • Page 120
    ... cost in connection with employee share option plans using a fair value based method, or to continue to use an intrinsic value based method, which generally does not result in a compensation cost. Tyco continues to use the intrinsic value based method and does not recognize compensation expense...

  • Page 121
    ... used for fiscal 2001: Tyco TyCom Expected Risk free Expected Expected stock price volatility ...interest rate ...annual dividend yield per share life of options ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 39% 80% 5.18% 4.71% $ 0.05 - 4.4 years 4.0 years The following weighted...

  • Page 122
    ... deferred compensation expense is recorded as a reduction of shareholders' equity. Recipients of DSU's do not have the right to vote such shares and do not have the right to receive cash dividends. However, they have the right to receive dividends in the form of additional DSU's. Dividends-Tyco has...

  • Page 123
    ..., 2001 Amounts Previously As Reported Restated Purchased materials and manufactured parts ...Work in process ...Finished goods ...Inventories ...Contracts in process ...Prepaid expenses and other ...Other current assets ...Land ...Buildings ...Subscriber systems ...Machinery and equipment Leasehold...

  • Page 124
    ... 30, 2002 and 2001 on an as previously reported basis (as adjusted to reflect the reclassification of Tyco Capital as discontinued operations) and restated for the adjustments discussed in Note 1 are included in the tables below ($ in millions, except per share data). For the Year Ended September 30...

  • Page 125
    ... the Fire and Security Services segment; net restructuring and other charges of $182.9 million, of which $2.5 million is included in cost of sales, related primarily to the write-off of investment banking fees and other deal costs associated with the terminated break-up plan and certain acquisitions...

  • Page 126
    ..., of which a charge of $25.0 million is included in cost of sales. 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 charge of $25...

  • Page 127
    ...charges of $106.1 million are included in cost of sales, primarily related to the closure of manufacturing facilities within the Electronics and Fire and Security Services segments; and charges of $92.2 million related to the impairment of property, plant and equipment associated with the facilities...

  • Page 128
    ... Year Ended September 30, 2002 ($ in millions) Tyco International Ltd. Tyco International Group S.A. Other Subsidiaries Consolidating Adjustments Total Net revenues ...Cost of product sales ...Cost of services ...Selling, general and administrative expenses ...Restructuring and other charges, net...

  • Page 129
    ...(RESTATED) For the Year Ended September 30, 2001 ($ in millions) Tyco International Ltd. Tyco International Group S.A. Other Subsidiaries Consolidating Adjustments Total Net revenues ...Cost of product sales ...Cost of services ...Selling, general and administrative expenses ...Restructuring and...

  • Page 130
    ... Year Ended September 30, 2000 ($ in millions) Tyco International Ltd. Tyco International Group S.A. Other Subsidiaries Consolidating Adjustments Total Net revenues ...Cost of product sales ...Cost of services ...Selling, general and administrative expenses ...Restructuring and other charges, net...

  • Page 131
    ... cash ...Accounts receivables, net ...Inventories ...Intercompany receivables ...Other current assets ...Total current assets ...Tyco Global Network ...Property, Plant and Equipment, Net Goodwill, Net ...Intangible Assets, Net ...Investment In Subsidiaries ...Intercompany Loans Receivable ...Other...

  • Page 132
    ...Tyco International Group S.A. (continued) CONSOLIDATING BALANCE SHEET (RESTATED) September 30, 2001 ($ in millions) Tyco International Ltd. Tyco International Group S.A. Other Subsidiaries Consolidating Adjustments Total Assets Current Assets: Cash and cash equivalents ...Accounts receivable, net...

  • Page 133
    ... property, plant and equipment, net ...Construction in progress-Tyco Global Network ...Acquisition of businesses, net of cash acquired ...Acquisition of customer accounts (ADT dealer program) ...Cash paid for purchase accounting and holdback/ earn-out liabilities ...Net proceeds from the sale of CIT...

  • Page 134
    ..., plant and equipment, net . . Construction in progress-Tyco Global Network . Acquisition of businesses, net of cash acquired . . Acquisition of customer accounts (ADT dealer program) ...Cash paid for purchase accounting and holdback/ earn-out liabilities ...Disposal of businesses, net of cash sold...

  • Page 135
    ... plant and equipment, net ...Construction in progress-Tyco Global Network ...Acquisition of businesses, net of cash acquired ...Acquisition of customer accounts (ADT dealer program) ...Cash paid for purchase accounting and holdback/earn-out liabilities ...Disposal of businesses, net of cash sold Net...

  • Page 136
    ...'s new senior management team. The review included an examination of Tyco's reported revenues, profits, cash flow, internal auditing and control procedures, accounting for major acquisitions and reserves, the use of non-recurring charges, as well as corporate governance issues such as the personal...

  • Page 137
    ... with the staff of the Division of Corporation Finance of the U.S. Securities and Exchange Commission (the ''Staff'') as part of a review of our periodic filings. We believed that we had resolved the material accounting issues at the time of the original filing of our Form 10-K for the year ended...

  • Page 138
    ... and operating its ADT dealer program, including brand advertising costs and due diligence costs relating to contracts offered for sale to the Company under the ADT dealer program. Dealers pay the Company a non-refundable amount for each of the contracts sold to the Company representing their...

  • Page 139
    ... the prior quarters and years to which they relate. These charges relate primarily to intercompany profit, capitalized costs, and account reconciliation issues within the Engineered Products and Services segment. In addition, in connection with the Phase 2 review the Company recorded a balance sheet...

  • Page 140
    ...3,968.4 Net revenues ...Cost of product sales ...Cost of services ...Selling, general and administrative expenses . . Restructuring and other charges, net ...Charges for impairment of long-lived assets . . Goodwill impairment ...Write-off of purchased in-process research and development ...Operating...

  • Page 141
    ... Operations Tyco Global Network ...Property, Plant and Equipment, Net . . Goodwill, Net ...Intangible Assets, Net ...Other Assets ... Total Assets ...Liabilities and Shareholders' Equity Current Liabilities: Loans payable and current maturities of long-term debt Accounts payable ...Accrued expenses...

  • Page 142
    ....4 6,876.4 Purchase of property, plant and equipment ...(1,708.7) (1,678.8) Construction in progress-Tyco Global Network ...(1,146.0) (1,146.0) Acquisition of businesses, net of cash acquired . (1,683.8) (1,683.8) Acquisition of customer accounts (ADT dealer program)(1) ...(1,401.0) (1,139.3) Other...

  • Page 143
    ... Costs ...Reconciliation Items ...Adjustments to Accrual Balances ...Asset Reserve Adjustments ...Other Accounting Adjustments ...Customer Contract Amortization Method ...ADT Dealer Reimbursements ...TyCom Network Transaction ...Healthcare Divestiture Transaction ...Insurance and Compensation...

  • Page 144
    ... near-term actions focus on enhancing internal growth within existing Tyco businesses. We plan to achieve this goal through new product innovation, increased market share, increased service and continued geographic expansion. Acquisitions have been an important part of Tyco's growth in recent years...

  • Page 145
    ... Massachusetts corporation, and ADT Limited (a public company that had been located in Bermuda since the 1980's with origins dating back to the United Kingdom since the early 1900's). Currently, Tyco's revenues related to U.S. federal government contracts account for less than 3% of net revenues for...

  • Page 146
    ... 2002 Fiscal 2001 Fiscal 2000 Revenue from product sales ...Service revenue ...Net revenues ...Restructuring and other charges, net(1) ...Charges for the impairment of long-lived assets ...Goodwill impairment ...Write-off of purchased in-process research and development Total charges included in...

  • Page 147
    ... functions by closing corporate and administrative offices, and we attempt to make the combined companies more cost efficient by combining manufacturing facilities, product lines, sales offices and marketing efforts. As a result of our integration processes, most acquired companies are no longer...

  • Page 148
    ... (including the authorized dealer program), as compared to our current long-term strategy, which is to grow our existing business. We plan to do this by gaining and maintaining high quality security monitoring accounts through our internal sales force supplemented by the ADT dealer program in...

  • Page 149
    ... extent, higher sales volume and increased recurring service revenue in fire protection in North America and Asia, and increased recurring revenues in the worldwide electronic security services business. These acquisitions include: Simplex in January 2001; Scott in May 2001; and SecurityLink in...

  • Page 150
    ... with fiscal 2001, including a 23.6% decrease in product revenue and a 4.3% increase in service revenue, as a result of a severe decline in demand for undersea telecommunications systems and surplus capacity available and a decline in demand for our electronics components group products in the...

  • Page 151
    ... to growth due to new product development launches and increases in market share. As evidenced by the current period's restructuring charges, management has implemented plans within this segment to reduce the number of manufacturing plants, along with the related employees, to a size appropriate for...

  • Page 152
    ...basis, of which $550 million relates to cost of sales and $160 million to other selling, general and administrative expenses. However, since business conditions do not remain constant the actual reductions in cost may significantly differ from these amounts. Net revenue increased 8.8% in fiscal 2001...

  • Page 153
    ... 2001 Fiscal 2000 Revenue from product sales ...Service revenue ...Net revenues ...Operating income ...Operating margins ...Restructuring and other charges . Restructuring credits ...Inventory charges ...Write-off of purchased in-process Impairment of long-lived assets ...research and development...

  • Page 154
    ...to a charge for the write-off of purchased in-process research and development in fiscal 2001. Operating income and margins for fiscal 2001 include net restructuring and other charges of $48.4 million primarily related to the closure of several manufacturing plants. Included within the $48.4 million...

  • Page 155
    ... year to increase primarily as a result of increased sales prices (due to increased raw material costs) and expected improved market conditions at Tyco Infrastructure Services. Furthermore, we expect sales volume at Tyco Fire and Building Products to show some signs of recovery in the commercial...

  • Page 156
    ...Tyco Infrastructure. Operating income and margins for fiscal 2001 include restructuring and other charges of $57.3 million, of which inventory write-downs of $9.7 million are included in cost of sales, and charges for the impairment of property, plant and equipment of $3.4 million, primarily related...

  • Page 157
    ... selling prices in certain areas and unfavorable manufacturing variances. In addition, the segment incurred increased expenses mostly relating to inventory write-downs and uncollectable accounts receivable. We expect operating income to increase for the next fiscal year due to higher sales volume...

  • Page 158
    .... Corporate Expenses Corporate expenses were $419.7 million in fiscal 2002. This amount includes net restructuring and other and impairment charges of $199.1 million primarily related to the write-off of investment banking fees and other deal costs associated with the terminated breakup plan and...

  • Page 159
    ... effect on purchased in-process research and development, restructuring and other (charges) 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 a benefit of $670...

  • Page 160
    ... systems, internally generated commercial systems and accounts acquired through the ADT dealer program (discussed below in Amortization Method for Customer Contracts). With respect to the Company's depreciation policy for security monitoring systems installed in residential and commercial customer...

  • Page 161
    ...-year period continues to be appropriate given the observed actual attrition data for these pools. The determination of the depreciable lives of subscriber systems included in property, plant and equipment, and the amortizable lives of customer contracts and related customer relationships included...

  • Page 162
    ... in Long-Lived Assets, the Company generally divides its electronic security assets into various asset pools: internally generated residential systems, internally generated commercial systems and accounts acquired through the ADT dealer program. Intangible assets arising from the ADT dealer program...

  • Page 163
    ... management and the Company's Board of Directors approved the sale of common shares of CIT in an IPO establishing a measurement date for discontinued operations. Accordingly, the results of Tyco Capital are presented as discontinued operations for all periods. Prior year amounts include Tyco Capital...

  • Page 164
    ... Tyco Capital through July 8, 2002 were as follows ($ in millions): For the Period October 1, 2001 through July 8, 2002 For the Period June 2 (date of acquisition) through September 30, 2001 Finance income ...Interest expense ...Net finance income ...Depreciation on operating lease equipment ...Net...

  • Page 165
    ... from Tyco Capital's increased costs of borrowing. During the quarter ended March 31, 2002, we experienced disruptions to our business surrounding our announced break-up plan, a downgrade in our credit ratings, and a significant decline in our market capitalization. During this same time period, CIT...

  • Page 166
    ... value to CIT in the planned separation of CIT from Tyco. Management obtained relevant market data from our financial advisors regarding the range of price to earnings multiples and market condition discounts applicable to CIT as of March 31, 2002 and applied these market data to CIT's projected...

  • Page 167
    ... program . Interest expense, net ...Income tax expense ...Other, net ...Cash flow from operating activities from continuing operations . Less: Capital expenditures(4) ...Dividends paid ...Decreases in (proceeds received) under the sale of accounts receivable programs ...Construction of Tyco Global...

  • Page 168
    ... losses on accounts receivable and inventory ...Net decrease (increase) in working capital and other(1) ...Expenditures relating to restructuring and other unusual charges ...(Decrease in) proceeds under sale of accounts receivable program ...Interest expense, net ...Income tax expense ...$ 904.7 20...

  • Page 169
    ... and customer contracts for electronic security services for $1,139.3 million. The aggregate cost of $4,889.8 million consists of $2,823.1 million paid in cash, net of $158.0 million of cash acquired, $1,918.8 million paid in the form of Tyco common shares, and assumed stock options and pre-existing...

  • Page 170
    ... Company recorded a net gain of $23.6 million. During fiscal 2001, we entered into an agreement to acquire C.R. Bard, Inc., a healthcare products manufacturer. On February 6, 2002, Tyco and C.R. Bard, Inc. mutually terminated the merger agreement. Each party bore its own costs, and no break up fee...

  • Page 171
    ... 2002 was $208.1 million, and the amount of income taxes paid (net of refunds) during the year was $368.1 million. The difference is due to timing differences, as well as the tax benefits related to the exercise of share options. The current income tax liability at September 30, 2002 was $2,219...

  • Page 172
    ... from exercise of options ...Repurchase of common shares ...Debt of acquired companies ...Net cash payments to Tyco Capital ...Restricted cash ...Other items ... ... In October 2001, Tyco International Group S.A. (''TIG''), a wholly-owned subsidiary of Tyco, sold $1,500.0 million 6.375% notes due...

  • Page 173
    ...our $400 million 7.2% notes due 2008 to increase to 8.2%, until such time that the rating by Moody's returns to investment grade. The downgrade also gave the investors in two of our accounts receivable programs the option to discontinue reinvestment in new receivables and terminate the programs. The...

  • Page 174
    ... estimated out of pocket expenses, from the sale of all of CIT's common shares through an initial public offering. We plan to use the net proceeds to repay short-term and long-term borrowings and for working capital and other corporate purposes. In November 2000, Tyco issued $4,657.5 million...

  • Page 175
    ...closing sale price of Tyco common shares for at least 20 trading days in the 30 trading day period ending on the trading day prior to the date of surrender is more than 110% of the accreted conversion price per common share of the relevant debentures on that preceding trading day; • if the Company...

  • Page 176
    ... any problems with meeting this deadline. As a result of actions taken by our former senior management, Tyco and certain members of our former senior management are named defendants in a number of purported class actions alleging violations of the disclosure provisions of the federal securities laws...

  • Page 177
    ... backlog related to other Tyco businesses. Backlog for Engineered Products and Services decreased slightly due to contract cancellations in the non-residential, long-term construction market, partially offset by the impact of acquisitions. Fiscal 2001 backlog for this segment has been increased by...

  • Page 178
    ... risk associated with changes in interest rates, foreign currency exchange rates and certain commodity prices. In order to manage the volatility relating to our more significant market risks, we enter into forward foreign currency exchange contracts, cross-currency swaps, foreign currency options...

  • Page 179
    are used to calculate the contractual payments to be exchanged under the contract. The amounts included in the table below are in U.S. dollars, unless noted ($ in millions). Fiscal 2003 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Thereafter Total Fair Value Long-term debt: Fixed rate (Euro) ......

  • Page 180
    ... for Certain Employee Termination Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred in a Restructuring).'' This statement requires that liabilities associated with exit or disposal activities initiated after adoption be recognized and measured at fair value when incurred...

  • Page 181
    ... cable communications systems; • impact of recent management changes; • the possible effects on Tyco of pending legislation in the U.S., if enacted, that may limit or eliminate potential U.S. tax benefits resulting from Tyco's incorporation in Bermuda or that may deny U.S. government contracts...

  • Page 182
    TYCO INTERNATIONAL LTD. SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (RESTATED) (in millions) Balance at Beginning of Year Additions Charged to Income Acquisitions, Disposals, and Other Description Deductions Balance at End of Year Allowances for Doubtful Accounts: Fiscal Year Ended September ...