ADT 2002 Annual Report Download - page 7

PART I
Item 1. Business
Introduction
Tyco International Ltd. (‘‘we’’ or ‘‘Tyco’’) is a diversified manufacturing and service company that,
through its subsidiaries:
• designs, manufactures, installs, monitors and services electronic security and fire protection
systems;
• designs, manufactures and distributes electrical 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 industrial valves
and controls and steel tubular goods and provides environmental consulting services; and
• designs, manufactures and distributes plastic products, adhesives and films.
During fiscal 2003, a change was made to the Company’s internal reporting structure such that the
operations of Tyco’s plastics and adhesives businesses (previously reported within the Healthcare and
Specialty Products segment) now comprise the Company’s new Plastics and Adhesives reportable
segment. The Company has conformed its segment reporting accordingly and has reclassified
comparative prior period information to reflect this change.
See Notes 3 and 4 to the Consolidated Financial Statements for certain segment and geographic
financial data relating to our business.
CIT Group, Inc., (‘‘CIT’’), which comprised the operations of the Tyco Capital (financial services)
business segment, was sold in an initial public offering in July 2002. See Note 11 to the Consolidated
Financial Statements for information regarding the discontinued operations of this former business
segment.
Tyco’s operating strategy is to be a low-cost, high-quality producer and provider in each of the
markets we serve. We promote our leadership position by investing in existing businesses and
developing new markets. Although acquisitions of complementary businesses have been an important
part of Tyco’s growth in recent years, our current business strategy and 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, increasing the service and repair components of our
existing businesses and continued geographic expansion. While we may continue to make selected
complementary acquisitions, we anticipate that the amount of acquisition activity will be significantly
reduced for the foreseeable future. Leveraging the strengths of our existing operations, we seek to
enhance value for our shareholders through operational excellence and maximization of cash flows. We
are also striving to establish the highest standards of corporate governance so that we can earn the
respect and confidence of our shareholders, employees, suppliers and customers and the financial
community.
I. Fire and Security Services
Tyco is the world’s leading provider of both electronic security services and fire protection services.
With fiscal 2002 revenues of $10,639.0 million, our Fire and Security Services businesses comprise
approximately 30% of our total revenues from continuing operations. The group’s products and services
include:
• designing, manufacturing, installing, monitoring and servicing electronic security systems;
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