ADT 2005 Annual Report Download - page 7

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Tyco’s real estate footprint continues to shrink, as the
company sharpens its focus on rationalizing operations and
consolidating facilities. In 2005, Tyco’s total footprint was
96 million square feet at approximately 3,000 facilities —
down from 118 million square feet across approximately
3,600 locations just last year.
To help ensure continued focus on its industry-leading
businesses, Tyco divested 18 businesses in 2005, yielding
proceeds of $295 million. The company also announced
the sale of its Plastics & Adhesives segment during
calendar year 2005 and expects to close the $975 million
transaction in early calendar year 2006.
RETURNING CAPITAL TO SHAREHOLDERS
Beginning in the fourth quarter of 2004 and throughout
fi scal 2005, Tyco began aggressively retiring its equity
through convertible debt repurchases — and more recently
through share repurchases. In just 15 months, Tyco used
$4.2 billion of cash and reduced diluted shares outstanding
by 130 million — representing 6 percent of diluted shares
outstanding. In addition, the company raised its quarterly
stock dividend during 2005, delivering an incremental
$700 million return of capital to shareholders annually.
INVESTING FOR GROWTH
To help support product development and organic revenue
growth, Tyco invested more than $835 million in research
and development in 2005 — an increase of nearly 8 percent
over 2004 totals. More than half of this was invested in
5
CHAIRMAN’S LETTER continued
NET REVENUE
BY REGION
(In US$ Billions)
United States
Asia/Pacific
Europe
Other Americas
Total = $39.7 billion
$6.4
$19.6
$11.5
$2.2
2003
2004
2005
RESEARCH & DEVELOPMENT
(In US$ Millions)
$661
$777 $836