ADT 2005 Annual Report Download - page 212

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
22. Consolidated Segment and Geographic Data
The Company’s segments are strategic business units that operate in different industries and are
managed separately. Certain corporate expenses were allocated to each operating segment’s operating
income, based generally on net revenues.
The Company operates in the following business segments:
• Fire and Security designs, manufactures, installs, monitors and services electronic security and
fire protection systems;
• Electronics designs, manufactures and distributes electrical and electronic components;
• Healthcare designs, manufactures and distributes medical devices and supplies, imaging agents,
pharmaceuticals and adult incontinence and infant care products; and
• Engineered Products and Services designs, manufactures, distributes and services engineered
products, including industrial valves and controls as well as steel tubular goods, and provides
consulting, engineering and construction management and operating services.
During 2005, the Company committed to a plan to sell the Plastics and Adhesives segment and has
reported its results as discontinued operations.
The segment and geographic data presented have been reclassified to exclude the results of
discontinued operations and to reflect the transfer of the Precision Interconnect business from
Healthcare to Electronics in 2004. Also, the operating results of the TGN business were presented
within Corporate and Other until its sale in the third quarter of 2005.
Selected information by business segment is presented in the following tables for 2005, 2004 and
2003 ($ in millions):
2005 2004 2003
Net revenue:
Fire and Security .................................. $11,503 $11,447 $10,832
Electronics ....................................... 12,196 11,822 10,492
Healthcare ....................................... 9,543 9,110 8,420
Engineered Products and Services(1) ..................... 6,456 6,007 4,498
Corporate and Other(2) .............................. 29 25 14
Net revenue .................................... $39,727 $38,411 $34,256
(1) Includes $649 million and $739 million in 2005 and 2004, respectively, to reflect sub-contract costs in net revenue and cost of
revenue at Infrastructure Services. These adjustments had no impact on operating income (See Note 1).
(2) Relates to the TGN business.
136 2005 Financials