ADT 2002 Annual Report Download - page 29

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(Footnotes continued from preceding page)
sale of Tyco Capital for the year ended September 30, 2002. See Notes 5, 6, 7, 8, 11 and 16 to the Consolidated Financial
Statements.
(2) In fiscal 2001, we changed our revenue recognition accounting policy to conform to the requirements of Staff Accounting
Bulletin No. 101 issued by the Staff of the Securities and Exchange Commission, as more fully described in Note 12 to the
Consolidated Financial Statements. As a result, Tyco recorded a cumulative effect adjustment of $653.7 million, net of tax.
Pro forma amounts for the periods prior to fiscal 2001 have not been presented since the effect of the change in accounting
principles for these periods could not be reasonably determined. Tyco also recorded a cumulative effect adjustment of
$29.7 million, net of tax, in accordance with the transition provisions of SFAS No. 133, also discussed in Note 12 to the
Consolidated Financial Statements.
(3) Income from continuing operations in the fiscal year ended September 30, 2001 includes a net charge of $585.3 million, of
which $184.9 million is included in cost of sales, for restructuring and other 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
$410.4 million, a loss on investments of $133.8 million, a loss of $26.3 million relating to the early retirement of debt and a
net gain on the sale of common shares of a subsidiary of $24.5 million. Net (loss) income includes $252.5 million of income
from discontinued operations of Tyco Capital for the year ended September 30, 2001. See Notes 5, 6, 7, 8, 9 and 11 to the
Consolidated Financial Statements.
(4) Income from continuing operations in the fiscal year ended September 30, 2000 includes a net charge of $176.3 million, of
which $1.0 million is included in cost of sales, for restructuring and other charges, and charges of $99.0 million for the
impairment of long-lived assets. Income from continuing operations for the fiscal year ended September 30, 2000 also
includes a pre-tax gain of $1,760.0 million related to the sale by a subsidiary of its common shares, and a loss of $0.3 million
relating to the early retirement of debt. See Notes 5, 6, 8 and 9 to the Consolidated Financial Statements.
(5) Income from continuing operations in the fiscal year ended September 30, 1999 includes charges of $1,035.2 million for
merger, restructuring and other charges, of which $106.4 million is included in cost of sales, and charges of $507.5 million for
the impairment of long-lived assets related to the mergers with U.S. Surgical and AMP and AMP’s profit improvement plan.
Income from continuing operations in the fiscal year ended September 30, 1999 also includes a loss of $63.7 million relating
to the early retirement of debt.
(6) Income from continuing operations in the fiscal year ended September 30, 1998 includes charges of $80.5 million related
primarily to costs to exit certain businesses in U.S. Surgical’s operations and restructuring charges of $12.0 million related to
the continuing operations of U.S. Surgical. In addition, AMP recorded restructuring charges of $185.8 million in connection
with its profit improvement plan and a credit of $21.4 million to restructuring charges representing a revision of estimates
related to its 1996 restructuring activities. Income from continuing operations in the fiscal year ended September 30, 1998
also includes a net loss of $3.6 million relating to the early retirement of debt.
(7) Per share amounts have been retroactively restated to give effect to the mergers with U.S. Surgical and AMP; and
two-for-one stock splits on October 22, 1997 and October 21, 1999, both of which were effected in the form of a stock
dividend.
(8) Tyco has paid a quarterly cash dividend of $0.0125 per common share for all periods presented. U.S. Surgical paid quarterly
dividends of $0.04 per share in the year ended September 30, 1998. AMP paid dividends of $0.27 per share in the first two
quarters of the year ended September 30, 1999, and $0.26 per share in the first quarter and $0.27 per share in the last three
quarters of the year ended September 30, 1998. The payment of dividends by Tyco in the future will depend on business
conditions, Tyco’s financial condition and earnings and other factors.
27