ADT 2005 Annual Report Download - page 174

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. Restructuring and Other Charges (Credits), Net (Continued)
Total Restructuring Reserves
The Company’s restructuring reserves by segment at September 30, 2005 and 2004 are as follows
($ in millions):
2005 2004
Fire and Security ....................................... $ 45 $102
Electronics ............................................ 91 74
Healthcare ............................................ 1 10
Engineered Products and Services ........................... 9 36
Corporate and Other .................................... 3 5
Restructuring reserves .................................... $149 $227
At September 30, 2005 and 2004, restructuring reserves were included in the Company’s
Consolidated Balance Sheets as follows ($ in millions):
2005 2004
Accrued and other current liabilities ......................... $ 58 $165
Other liabilities ........................................ 91 62
Restructuring reserves .................................... $149 $227
3. Charges for the Impairment of Long-Lived Assets
2005 Charges
During 2005, there were no material charges in continuing operations related to the impairment of
long-lived assets.
2004 Charges
During 2004, the Company recorded total charges in continuing operations for the impairment of
long-lived assets held for use of $52 million. Fire and Security recorded charges of $34 million primarily
related to the write-down of a United States facility to its estimated fair value, and to a lesser extent, to
the write-off of cash management software. In addition, Corporate, Engineered Products and Services,
Electronics and Healthcare recorded combined charges of $18 million related to the impairment of
property, plant and equipment.
2003 Charges
During 2003, the Company recorded total charges for the impairment of long-lived assets of
$825 million.
Fire and Security recorded charges for the impairment of intangible assets of $101 million resulting
from the further deterioration of future estimated cash flows anticipated from customers primarily in
Mexico and certain Latin American countries following the curtailment, and in some instances, the
termination of the ADT dealer program in these countries. In addition, $11 million of impairment
charges were recorded related to the discontinuance of two brand names. Fire and Security also
recorded charges for the impairment of property, plant and equipment of $21 million related primarily
to subscriber systems and other fixed assets, as well as $10 million associated with the termination of a
software development project.
98 2005 Financials