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89
Workforce reductions primarily relate to the elimination
of manufacturing personnel in the United States and Latin
America. Facility closures include building lease termination
fees and other contract cancellation costs. Other charges
consist of purchase commitment cancellations and payments
on non-cancellable machinery and equipment leases. At
September 30, 2003, $7.9 million of the remaining balance is
included in accrued expenses and other current liabilities
and the remaining $0.8 million is included in other long-term
liabilities on the Consolidated Balance Sheet. These amounts
are primarily for severance and payments on non-cancellable
lease obligations.
In fiscal 2001, the Healthcare segment recorded a net
restructuring and other charge of $64.0 million, of which $40.0
million is included in cost of sales. The remaining $24.0 million
net charge consists of charges of $39.6 million relating to the
closure of manufacturing plants, partially offset by a credit of
$15.6 million representing a revision in estimates of prior years’
restructuring and other charges related primarily to the merger
with U.S. Surgical.
TYCO INTERNATIONAL LTD.
The following table provides information about the restructuring and other charges (excluding impairments of long-lived
assets, which are discussed in Note 6) related to the Healthcare segment recorded in fiscal 2001 ($ in millions):
SEVERANCE FACILITIES-RELATED
NUMBER OF NUMBER OF
EMPLOYEES AMOUNT FACILITIES AMOUNT OTHER TOTAL
Fiscal 2001 charges 778 $16.6 2 $«1.3 $«6.1 $«24.0
Fiscal 2001 utilization (444) (9.2) (2) (0.6) (1.2) (11.0)
Ending balance at September 30, 2001 334 7.4 — 0.7 4.9 13.0
Fiscal 2002 reversals (23) (0.5) — (0.1) (0.1) (0.7)
Fiscal 2002 utilization (311) (6.4) — (0.4) (4.8) (11.6)
Ending balance at September 30, 2002 —0.5 —0.2 —0.7
Fiscal 2003 reversals — — — (1.0) — (1.0)
Fiscal 2003 utilization — (0.5) — (0.2) — (0.7)
Foreign currency translation adjustments — — — 1.1 — 1.1
Ending balance at September 30, 2003 — $«««— — $«0.1 $««— $«««0.1
Workforce reductions primarily relate to the elimination of
manufacturing and sales personnel in the United States. Facility
closures consists of the shutdown of a manufacturing and an
administrative facility, both in the United States. The other
charges consist primarily of the cost for lease buyouts and dis-
tributor termination fees.
In fiscal 2001, the Engineered Products and Services segment recorded restructuring and other charges of $57.3 million, of
which $9.7 million is included in cost of sales. The following table provides information about the restructuring and other charges
(excluding impairments of long-lived assets which are discussed in Note 6) related to the Engineered Products and Services seg-
ment recorded in fiscal 2001 ($ in millions):
SEVERANCE FACILITIES-RELATED
NUMBER OF NUMBER OF
EMPLOYEES AMOUNT FACILITIES AMOUNT OTHER TOTAL
Fiscal 2001 charges 970 $14.1 24 $«3.3 $«30.2 $«47.6
Fiscal 2001 utilization (527) (5.4) (18) (2.5) (2.4) (10.3)
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
Fiscal 2003 reversals (11) (0.4) — — (0.8) (1.2)
Fiscal 2003 utilization (2) — — (0.1) (3.3) (3.4)
Transfers/reclassifications ————(15.0) (15.0)
Ending balance at September 30, 2003 — $«««— — $««— $««««— $««««—