ADT 2002 Annual Report Download - page 83

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TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
5. Restructuring and Other Charges (Credits), Net (continued)
impairments of long-lived assets which are discussed in Note 6) related to the Healthcare segment
recorded in fiscal 2002 ($ in millions):
Severance Facilities-Related
Number of Number of
Employees Amount Facilities Amount Inventory Other Total
Fiscal 2002 charges ........... 380 $24.0 4 $14.1 $ 0.5 $10.1 $ 48.7
Fiscal 2002 reversals .......... (6) (0.8) — — — (2.4) (3.2)
Fiscal 2002 utilization ......... (100) (9.4) — (2.1) (0.5) (7.7) (19.7)
Ending balance at September 30,
2002 .................... 274 $13.8 4 $12.0 $ — $ — $ 25.8
The cost of announced workforce reductions of $24.0 million includes the elimination of 380
positions primarily in the United States consisting primarily of manufacturing and sales personnel. The
cost of facility closures of $14.1 million consists of the shutdown of 4 manufacturing and administrative
facilities primarily in the United States. At September 30, 2002, 100 employees had been terminated.
The other charges of $10.1 million consist primarily of 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 $6.2 million are included in cost of sales, primarily related to severance and
facility-related costs associated with streamlining the business. The following table provides information
about the restructuring and other charges (excluding impairments of long-lived assets which are
discussed in Note 6) related to the Engineered Products and Services segment recorded in fiscal 2002
($ in millions):
Severance Facilities-Related
Number of Number of
Employees Amount Facilities Amount Inventory Other Total
Fiscal 2002 charges .......... 1,217 $ 35.7 48 $ 4.1 $ 6.2 $ 4.8 $ 50.8
Fiscal 2002 utilization ........ (712) (27.7) (27) (1.5) (6.2) (4.0) (39.4)
Ending balance at September 30,
2002 ................... 505 $ 8.0 21 $2.6 $ — $0.8 $11.4
The cost of announced workforce reductions of $35.7 million includes the elimination of 1,217
positions primarily in the United States and Europe consisting primarily of manufacturing and sales
personnel. Facilities-related costs of $4.1 million include the shutdown of 48 facilities primarily in the
United States and Europe consisting primarily of sales offices and manufacturing facilities. At
September 30, 2002, 712 employees had been terminated and 27 facilities had been shut down.
The Plastics and Adhesives segment recorded a net restructuring and other charge of $10.1 million.
The $10.1 million net charge, of which charges of $1.1 million are included in cost of sales, relates
primarily to severance associated with the consolidation of operations and facility-related costs due to
exiting certain business lines. The following table provides information about the restructuring and
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