ADT 2002 Annual Report Download - page 75

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TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Acquisitions and Divestitures (continued)
Also during fiscal 2002, we reclassified certain fair value adjustments related to the write-down of
assets for fiscal 2000 acquisitions out of purchase accounting accruals and into the appropriate asset or
liability account. In addition, we reclassified certain amounts in the preceding table related to fiscal
2000 acquisitions to separately classify distributor and supplier cancellation fees. These reclassifications
had no effect on the amount of goodwill that was recorded.
At September 30, 2002, there remained on the Consolidated Balance Sheet purchase accounting
liabilities of $22.1 million for employee severance (principally for payments to employees already
terminated with severance paid out over time), facility related costs (principally for rents under
non-cancelable leases for vacated premises) and other costs.
The following unaudited pro forma data summarize the results of operations for the periods
indicated as if the fiscal 2000 acquisitions and divestitures had been completed as of the beginning of
the periods presented. The pro forma data give effect to actual operating results prior to the
acquisitions and divestitures and adjustments to interest expense, goodwill amortization and income
taxes. No effect has been given to cost reductions or operating synergies in this presentation. These pro
forma amounts do not purport to be indicative of the results that would have actually been obtained if
the acquisitions and divestitures had occurred as of the beginning of the periods presented or that may
be obtained in the future. For the Year Ended
September 30, 2000(1)
As
Previously
Reported As Restated(2)
($ in millions, except per share data)
Net revenues ........................... $30,448.0 $ 30,443.6
Income from continuing operations ........... 4,479.8 4,278.4
Net income ............................ 4,479.8 4,278.4
Basic income per common share:
Income from continuing operations ......... 2.65 2.53
Net income .......................... 2.65 2.53
Diluted income per common share:
Income from continuing operations ......... 2.61 2.50
Net income .......................... 2.61 2.50
(1) Includes a gain of $1,760.0 million on the sale by a subsidiary of its common shares. Income also includes net restructuring
and other charges of $176.3 million; charges for the impairment of long-lived assets of $99.0 million; and a loss on the early
extinguishment of debt of $0.3 million.
(2) Restated for adjustments discussed in Note 1.
3. Consolidated Segment Data
The Company’s reportable segments are strategic business units that operate in different industries
and are managed separately. Certain corporate expenses were allocated to each operating segment’s
operating income, based generally on net revenues. For additional information, including a description
of the products and services included in each segment, see Note 1.
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. In addition, during the quarter ended
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