ADT 2002 Annual Report Download - page 56

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TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Basis of Presentation, Restatement and Summary of Significant Accounting Policies (continued)
The following tables reflect the impact of the aforementioned adjustments on income (loss) from
continuing operations before income taxes and minority interest ($ in millions):
Fiscal Year Ended September 30,
2002 2001 2000 1999 1998
(Loss) income from continuing operations before
income taxes and minority interest, as
previously reported .................... $(2,811.3) $5,724.7 $6,464.5 $1,641.5 $1,699.2
Adjustments:
Gain on Issuance of TyCom Shares ......... 39.6 (39.6) — — —
Phase 2 Adjustments ................... 36.1 13.0 (26.4) (29.8) 8.1
Capitalized and Deferred Costs ........... (43.2) (34.6) (39.2) (59.0) 2.8
Reconciliation Items ................... (20.0) (47.7) (1.9) (8.0) (22.5)
Adjustments to Accrual Balances .......... (19.6) — 1.8 — —
Asset Reserve Adjustments ............... 4.6 (1.5) (8.1) — —
Other Accounting Adjustments ............ (14.1) (35.4) (23.2) (4.4) (2.2)
Customer Contract Amortization Method .... (107.3) (74.5) (54.9) (34.0) (13.1)
ADT Dealer Reimbursements ............ 186.9 (172.1) (93.7) (64.7) (37.2)
TyCom Network Transaction .............. (21.4) (16.2) — — —
Healthcare Divestiture Transaction ......... 154.3 (154.3) — — —
Insurance and Compensation Accrual
Adjustments ........................ (13.3) (47.1) (30.8) (5.5) —
Increase (decrease) ...................... 182.6 (610.0) (276.4) (205.4) (64.1)
(Loss) income from continuing operations before
income taxes and minority interest, as restated $(2,628.7) $5,114.7 $6,188.1 $1,436.1 $1,635.1
Business—the Company operates in the following business segments:
• Fire and Security Services designs, manufactures, installs, monitors and services electronic
security systems and fire protection systems.
• Electronics designs, manufactures and distributes electrical and electronic components, and
designs, 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 industrial valves and controls and steel tubular goods and provides
environmental consulting services.
• Plastics and Adhesives designs, manufactures and distributes plastic products, adhesives and
films.
Principles of Consolidation—Tyco is a holding company whose assets consist of its investments in its
subsidiaries, intercompany balances and holdings of cash and cash equivalents. The businesses of the
consolidated group are conducted through Tyco’s subsidiaries. The Company consolidates companies in
which it owns or controls more than fifty percent of the voting shares unless control is likely to be
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