ADT 2003 Annual Report Download - page 67

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65
In May 2003, the FASB issued SFAS No. 150, “Accounting for
Certain Financial Instruments with Characteristics of Both
Liabilities and Equity,” which establishes standards for how an
issuer classifies and measures certain financial instruments
with characteristics of both liabilities and equity. It requires
that an issuer classify a financial instrument that is within its
scope as a liability (or an asset in some circumstances) and is
effective for instruments entered into or modified after May 31,
2003 and otherwise is effective at the beginning of the first
interim period beginning after June 15, 2003. The adoption of
this new standard did not have a material impact on our results
of operations or financial position.
Forward-Looking Information
Certain statements in this report are “forward-looking state-
ments” within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. All forward-looking statements
involve risks and uncertainties. All statements contained herein
that are not clearly historical in nature are forward-looking,
and the words “anticipate,” “believe,” “expect,” “estimate,”
“project” and similar expressions are generally intended to
identify forward-looking statements. Any forward-looking
statement contained herein, in press releases, written statements
or other documents filed with the Securities and Exchange
Commission, or in Tyco’s communications and discussions with
investors and analysts in the normal course of business through
meetings, webcasts, phone calls and conference calls, regarding
expectations with respect to sales, earnings, cash flows, operating
efficiencies, product expansion, backlog, the consummation
and benefits of acquisitions or other matters, as well as financ-
ings and share repurchases, are subject to known and unknown
risks, uncertainties and contingencies, many of which are
beyond our control, which may cause actual results, performance
or achievements to differ materially from anticipated results,
performances or achievements. Factors that might affect such
forward-looking statements include, among other things:
•• overall economic and business conditions;
•• the demand for Tyco’s goods and services;
•• competitive factors in the industries in which Tyco competes;
•• changes in tax requirements (including tax rate changes,
new tax laws and revised tax law interpretations);
•• results and consequences of Tyco’s internal investigation
and governmental investigations concerning the Company’s
governance, management, internal controls and operations;
•• the outcome of litigation and governmental proceedings as
a result of actions taken by our former management;
•• the ratings on our debt and our ability to repay or refinance
our outstanding indebtedness as it matures;
•• interest rate fluctuations and other changes in borrowing
costs;
•• other capital market conditions, including foreign currency
rate fluctuations;
•• economic and political conditions in international markets,
including governmental changes and restrictions on the
ability to transfer capital across borders;
•• the ability to achieve cost savings in connection with the
Company’s strategic restructuring and Six Sigma initiatives;
•• potential further impairment of our goodwill;
•• the impact of fluctuations in the share price of Tyco com-
mon shares;
•• changes in U.S. and non-U.S. government regulations in
general, and in particular changes in rules and regulations
regarding the safety, efficacy, sales, promotions, insurance
reimbursement and pricing of Tyco’s disposable medical
products and other specialty products, and regarding Tyco’s
ability to operate and set prices with respect to its undersea
cable communications systems;
•• impact of recent management changes;
•• the possible effects on Tyco of pending legislation in the
U.S., if enacted, that may limit or eliminate potential U.S.
tax benefits resulting from Tyco’s incorporation in Bermuda
or that may deny U.S. government contracts to Tyco based
upon its incorporation in Bermuda; and
•• the potential continuing disruption to our business and
related distraction costs associated with negative publicity
and recent announcements.
TYCO INTERNATIONAL LTD.