ADT 2002 Annual Report Download - page 87

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TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
5. Restructuring and Other Charges (Credits), Net (continued)
Note 6) related to the Engineered Products and Services segment recorded in fiscal 2001 ($ in
millions):
Severance Facilities-Related
Number of Number of
Employees Amount Facilities Amount Inventory Other Total
Fiscal 2001 charges .......... 970 $14.1 24 $ 3.3 $ 9.7 $30.2 $ 57.3
Fiscal 2001 utilization ........ (527) (5.4) (18) (2.5) (9.7) (2.4) (20.0)
Ending balance at September 30,
2001 ................... 443 8.7 6 0.8 — 27.8 37.3
Fiscal 2002 utilization ........ (430) (8.3) (6) (0.7) — (8.7) (17.7)
Ending balance at September 30,
2002 ................... 13 $ 0.4 — $0.1 $ — $19.1 $ 19.6
The cost of announced workforce reductions of $14.1 million includes the elimination of 970
positions primarily in the United States consisting primarily of manufacturing personnel. Facilities-
related costs of $3.3 million include the shutdown of 24 facilities primarily in the United States
consisting primarily of manufacturing and distribution facilities. At September 30, 2002, 957 employees
had been terminated and all facilities had been shut down.
The other charges of $30.2 million consist primarily of charges relating to acquisition-related
product replacement.
In fiscal 2001, the Plastics and Adhesives segment recorded a net restructuring and other charge of
$8.3 million. The $8.3 million net charge, of which charges of $4.0 million are included in cost of sales,
related primarily to the sale of inventory, which had been adjusted to fair value under purchase
accounting, and the closure of manufacturing plants. The following table provides information about
the restructuring and other charges (excluding impairments of long-lived assets, which are discussed in
Note 6) related to the Plastics and Adhesives segment recorded in fiscal 2001 ($ in millions):
Severance Facilities-Related
Number of Number of
Employees Amount Facilities Amount Inventory Other Total
Fiscal 2001 charges .......... 322 $ 2.6 3 $0.2 $ 4.0 $1.5 $ 8.3
Fiscal 2001 utilization ........ — — — — (4.0) — (4.0)
Ending balance at September 30,
2001 ................... 322 2.6 3 0.2 — 1.5 4.3
Fiscal 2002 utilization ........ (322) (2.6) (3) (0.2) — (1.5) (4.3)
Ending balance at September 30,
2002 ................... — $ — — $ — $ — $ — $ —
The cost of announced workforce reductions of $2.6 million includes the elimination of 322
positions primarily in the United States consisting primarily of manufacturing and sales personnel. The
cost of facility closures of $0.2 million consists of the shutdown of 3 manufacturing and administrative
85