ADT 2002 Annual Report Download - page 95

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
10. Income Taxes (continued)
Management believes but cannot assure you that ultimate resolution of these tax deficiencies and
contingencies will not have a material adverse effect on the Company’s results of operations, financial
position or cash flows.
Except for earnings that are currently distributed, no additional provision has been made for U.S.
or non-U.S. income taxes on the undistributed earnings of subsidiaries or for unrecognized deferred tax
liabilities for temporary differences related to investments in subsidiaries, as such earnings are expected
to be permanently reinvested, or the investments are essentially permanent in duration. A liability could
arise if amounts were distributed by their subsidiaries or if their subsidiaries were disposed. It is not
practicable to estimate the additional taxes related to the permanently reinvested earnings or the basis
differences related to investments in subsidiaries.
11. Discontinued Operations of Tyco Capital (CIT Group Inc.)
On April 25, 2002, the Company announced its plan to divest Tyco Capital potentially through an
IPO of all of CIT’s outstanding shares. In June 2002, management and the Company’s Board of
Directors approved the sale of common shares of CIT in an IPO establishing a measurement date for
discontinued operations. Accordingly, the results of Tyco Capital are presented as discontinued
operations for all periods. Prior year amounts include Tyco Capital’s operating results after June 1,
2001, the date of acquisition of CIT by Tyco. The sale of 100% of CIT’s common shares through an
IPO was completed on July 8, 2002.
The following table presents summary balance sheet information for the discontinued operations of
Tyco Capital at September 30, 2001 ($ in millions):
September 30,
2001
Cash ................................................. $ 808.0
Finance receivables, net ................................... 31,386.5
Property, plant and equipment (including equipment leased to others),
net ................................................ 6,503.6
Goodwill, net .......................................... 6,547.5
Other assets ........................................... 5,844.5
Total assets .......................................... $51,090.1
Loans payable and current maturities of long-term debt ............ $17,050.6
Accrued expenses and other liabilities ......................... 4,534.4
Long-term debt ......................................... 18,647.1
Total liabilities ........................................ 40,232.1
Mandatorily redeemable preferred securities .................... 260.0
Total shareholder’s equity ................................ 10,598.0
Total liabilities and shareholder’s equity ...................... $51,090.1
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