ADT 2005 Annual Report Download - page 171

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. Restructuring and Other Charges (Credits), Net (Continued)
originally estimated, and accordingly the Company reversed $13 million of restructuring reserves as a
restructuring credit.
During 2004, the Company also sold certain cable-laying sea vessels and other assets that were
written down their expected net realizable value in prior years for amounts greater than originally
estimated and recorded related gains as restructuring credits of $40 million. During 2004, the Company
also completed certain restructuring activities announced in prior years for amounts less than originally
estimated, and accordingly the Company reversed $33 million of restructuring reserves as a
restructuring credit.
Restructuring and other charges (credits), net recorded by each segment were as follows:
During 2004, Fire and Security recorded restructuring charges of $184 million related to 2004
restructuring plans, including $4 million reflected in cost of sales for the non-cash write down in
carrying value of inventory. Additionally, Fire and Security completed certain restructuring activities
announced in prior years for amounts less than originally estimated, and accordingly reversed
$9 million of restructuring reserves as a restructuring credit.
During 2004, Electronics recorded restructuring charges of $16 million related to 2004
restructuring plans, including $1 million reflected in cost of sales for the non-cash write-down in
carrying value of inventory. Additionally, during 2004, Electronics sold certain cable-laying sea vessels
and other assets that were impaired in prior years for amounts greater than originally anticipated and
recorded the related gain as a restructuring credit of $34 million. Electronics also completed certain
restructuring activities for amounts less than originally estimated, and accordingly reversed $15 million
of restructuring reserves as a restructuring credit.
During 2004 Healthcare recorded restructuring charges of $13 million related to 2004 restructuring
plans. Additionally, Healthcare completed restructuring activities announced in prior years for amounts
less than originally anticipated, and accordingly reversed $2 million of restructuring reserves as a credit.
During 2004, Engineered Products and Services recorded restructuring charges of $55 million
related to 2004 restructuring plans including $1 million reflected in cost of sales for the non-cash
write-down in carrying value of inventory. Additionally, Engineered Products and Services completed
certain restructuring activities for amounts less than originally anticipated, and accordingly reflected
$2 million as a restructuring credit during 2004.
During 2004, Corporate recorded restructuring charges of $17 million related to the 2004
restructuring plans. In addition, Corporate completed certain restructuring activities announced in prior
years for amounts less than originally anticipated, and accordingly reversed $7 million of restructuring
reserves as a restructuring credit. In addition, during 2004, Corporate sold certain TGN assets that
were written down to their expected net realizable value in prior years for amounts greater than
originally anticipated and recorded the related gain as a restructuring credit of $4 million.
2003 Charges and Credits
During 2003, the Company approved and announced to employees various plans to exit 22
facilities primarily in the United States and Germany. These plans included the termination of
approximately 1,500 employees and other related exit costs. These decisions resulted in restructuring
charges totaling $61 million, including $10 million reflected in cost of sales for the non-cash write-down
2005 Financials 95