ADT 2003 Annual Report Download - page 89

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Workforce reductions primarily relate to the elimination of
manufacturing and sales personnel associated with the closure
of sales offices and manufacturing facilities in the United States
and Europe. At September 30, 2003, $0.4 million of the remain-
ing balance is included in accrued expenses and other current
liabilities and $0.4 million is included in other long-term
liabilities on the Consolidated Balance Sheet. These amounts
primarily relate to non-cancellable lease payments.
The Plastics and Adhesives segment recorded restructuring
and other charges of $10.1 million, of which charges of $1.1
million are included in cost of sales. Additionally, the charge
includes charges of $9.0 million associated with the consolida-
tion of operations and the exiting of certain business lines.
TYCO INTERNATIONAL LTD.
The following table provides information about the restructuring and other charges (excluding impairments of long-lived assets
which are discussed in Note 6) related to the Engineered Products and Services segment recorded in fiscal 2002 ($ in millions):
SEVERANCE FACILITIES-RELATED
NUMBER OF NUMBER OF
EMPLOYEES AMOUNT FACILITIES AMOUNT OTHER TOTAL
Fiscal 2002 charges 1,217 $«35.7 48 $«4.1 $«4.8 $«44.6
Fiscal 2002 utilization (712) (27.7) (27) (1.5) (4.0) (33.2)
Ending balance at September 30, 2002 505 8.0 21 2.6 0.8 11.4
Fiscal 2003 reversals (312) (0.5) (7) (0.4) (0.3) (1.2)
Fiscal 2003 utilization (193) (7.3) (14) (1.4) (0.6) (9.3)
Foreign currency translation adjustments — (0.2) — — 0.1 (0.1)
Ending balance at September 30, 2003 — $««««— — $«0.8 $««— $«««0.8
The following table provides information about the restructuring and other charges (excluding impairments of long-lived assets
which are discussed in Note 6) related to the Plastics and Adhesives segment recorded in fiscal 2002 ($ in millions):
SEVERANCE FACILITIES-RELATED
NUMBER OF NUMBER OF
EMPLOYEES AMOUNT FACILITIES AMOUNT OTHER TOTAL
Fiscal 2002 charges 317 $««4.2 5 $«3.0 $«1.8 $«9.0
Fiscal 2002 utilization (43) (0.2) (1) (0.1) (1.8) (2.1)
Ending balance at September 30, 2002 274 4.0 4 2.9 — 6.9
Fiscal 2003 reversals (33) (0.5) — (0.6) — (1.1)
Fiscal 2003 utilization (222) (2.8) (1) (1.1) — (3.9)
Foreign currency translation adjustments —0.3 —0.2 —0.5
Ending balance at September 30, 2003 19 $««1.0 3 $«1.4 $««— $«2.4
Workforce reductions primarily relate to the elimination of
manufacturing and sales personnel associated with the shut-
down of manufacturing and administrative facilities in the
United States. At September 30, 2003, $1.7 million of the
remaining balance is included in accrued expenses and other
current liabilities and the remaining $0.7 million is included in
other long-term liabilities on the Consolidated Balance Sheet.
These amounts primarily relate to non-cancellable lease obliga-
tions and severance.
In addition to segment charges, the Company recorded
charges of $169.6 million consisting of $78.6 million for sever-
ance and $15.0 million for contract terminations, legal fees and
other items associated with the downsizing of the corporate
headquarters and $76.0 million for the write off of investment
banking fees and other deal costs associated with the termi-
nated break-up plan and certain acquisitions that were not
completed. At September 30, 2003, $5.6 million remained in
accrued expenses and other current liabilities on the Consoli-
dated Balance Sheet.
2001 CHARGES AND CREDITS
In fiscal 2001, the Fire and Security segment recorded a net
restructuring and other charge of $84.1 million, of which charges
of $5.4 million are included in cost of sales. The $84.1 million
net charge consists of charges of $80.3 million related primarily
to the restructuring of the existing U.S. security business and
U.S. fire protection business in connection with the acquisi-
tions of SecurityLink and Simplex, partially offset by a credit of
$1.6 million representing a revision of estimates of prior years’
restructuring and other charges.