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85
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 Fire and Security segment recorded in fiscal 2002 ($ in millions):
SEVERANCE FACILITIES-RELATED SUPPLIER
NUMBER OF NUMBER OF CONTRACT
EMPLOYEES AMOUNT FACILITIES AMOUNT FEE OTHER TOTAL
Fiscal 2002 charges 3,100 $«43.5 109 $15.2 $«0.5 $34.9 $«94.1
Fiscal 2002 reversals — (0.3) — (3.0) — (0.8) (4.1)
Fiscal 2002 utilization (1,754) (23.8) (6) (0.1) — (2.7) (26.6)
Ending balance at September 30, 2002 1,346 19.4 103 12.1 0.5 31.4 63.4
Transfers/reclassifications — 0.2 — (0.2) — (25.6) (25.6)
Fiscal 2003 reversals (82) (3.4) (11) (1.8) — (0.7) (5.9)
Fiscal 2003 utilization (1,249) (16.0) (88) (3.9) (0.5) (5.8) (26.2)
Foreign currency translation adjustments —1.4 —1.1 —0.73.2
Ending balance at September 30, 2003 15 $«««1.6 4 $««7.3 $««— $«««— $«««8.9
The following table provides information about the restructuring and other charges (excluding impairments of long-lived assets
which are discussed in Note 6) related to the Electronics segment recorded in fiscal 2002 ($ in millions):
SEVERANCE FACILITIES-RELATED SUPPLIER
NUMBER OF NUMBER OF CONTRACT
EMPLOYEES AMOUNT FACILITIES AMOUNT FEE OTHER TOTAL
Fiscal 2002 charges 8,996 $198.1 31 $240.1 $«345.5 $«138.9 $«922.6
Fiscal 2002 reversals (356) (2.5) (1) (8.1) — — (10.6)
Fiscal 2002 utilization (4,336) (79.6) (13) (77.7) (19.7) (1.7) (178.7)
Ending balance at September 30, 2002 4,304 116.0 17 154.3 325.8 137.2 733.3
Transfers/reclassifications — — — (3.3) 3.3 (115.0) (115.0)
Fiscal 2003 reversals, net (1,303) (11.6) (6) 13.8 (35.0) (11.7) (44.5)
Fiscal 2003 utilization (2,223) (77.5) (11) (46.0) (212.9) (6.9) (343.3)
Foreign currency translation adjustments — — — 0.4 (3.1) 0.5 (2.2)
Ending balance at September 30, 2003 778 $««26.9 — $119.2 $«««78.1 $«««««4.1 $«228.3
Workforce reductions includes the elimination of manufacturing,
general and administrative, technical, and sales and marketing
personnel primarily in the United States, Latin America, Europe
and Australia. Facility closures primarily relate to the shutdown
of sales offices and manufacturing plants in Australia and Europe.
The other charges consist primarily of an accrual for anticipated
resolution and disposition of various labor and employment
matters. At September 30, 2003 $6.6 million of the remaining
balance is included in accrued expenses and other current liabili-
ties and the remaining $2.3 million is included in other long-term
liabilities on the Consolidated Balance Sheet. These amounts
are primarily for payments on non-cancellable lease obligations.
The Electronics segment recorded net restructuring and other
charges of $1,504.5 million, of which $608.2 million is included
in cost of sales. The initial charge included $166.1 million
associated with a write down of existing inventory to market
value, which was lower than cost at the time of the charge. The
remaining charge of $442.1 million was comprised of inventory
that was considered excess and was intended to be scrapped. As
of September 30, 2003, this remaining inventory had been
scrapped, with the exception of $19.9 million (originally
included in the inventory written down in fiscal 2002) that was
recorded as a restructuring credit to cost of sales in fiscal 2003.
Additionally, the net charge includes charges totaling $922.6 mil-
lion (of which a bad debt provision of $115.0 million is included
in selling, general and administrative expenses) primarily related
to facility closures and purchase commitment cancellations due
to the significant downturn in the telecommunications business
and certain electronics end markets. These charges were partially
offset by restructuring credits of $26.3 million primarily related
to a revision of estimates of current and prior years’ severance
and facility charges.
TYCO INTERNATIONAL LTD.