ADT 2005 Annual Report Download - page 78

and garment hangers, and accordingly, its operations are reflected as discontinued operations in the
Consolidated Financial Statements.
Operating Segments
See Note 22 to the Consolidated Financial Statements for certain segment and geographic financial
data relating to our business.
I. Fire and Security
Tyco is the world’s leading provider of both electronic security services and fire protection services.
With 2005 net revenue of $11.5 billion, our Fire and Security businesses comprise 29% of our
consolidated net revenue. In 2004 and 2003, net revenue totaled $11.5 billion or 30% of our
consolidated net revenue and $10.9 billion or 32% of our consolidated net revenue, respectively. The
group’s products and services include:
• designing, manufacturing, installing, monitoring and servicing electronic security systems;
• designing, manufacturing, installing and servicing a broad line of fire detection systems and
suppression systems, and manufacturing and servicing fire extinguishers and related products;
and
• providing integrated systems for surveillance and control of public transportation systems,
bridges, tunnels and other public works.
Tyco Fire and Security consists of two reporting units: Electronic Security Services and Fire
Protection Contracting and Services.
Electronic Security Services
We are the world’s leading provider of electronic security products and services and event
monitoring, which includes the monitoring of burglar alarms, fire alarms, medical alert systems, such as
our Personal Emergency Response Systems, and other activities where around-the-clock monitoring and
response are required. We offer regular inspection and maintenance services to ensure that systems will
function properly and can be upgraded as technology or risk profiles change. We are also a leading
supplier of electronic security solutions to the retail, commercial and industrial marketplaces, offering
anti-theft, video surveillance, access control, electronic asset protection and security management
systems, products and services. These and other security services are provided principally through our
ADT operating companies.
Electronically monitored security systems are tailored to our customers’ specific needs and involve
the installation and use on a customer’s premises of devices designed for intrusion detection and access
control, as well as reaction to various occurrences or conditions, such as movement, fire, smoke,
flooding, environmental conditions, industrial processes and other hazards. These detection devices are
connected to microprocessor-based control panels, which communicate to a monitoring center (located
remotely from the customer’s premises) where alarm and supervisory signals are received and recorded.
In most systems, control panels can identify the nature of the alarm and the areas within a building
where the sensor was activated. Depending upon the type of service for which the subscriber has
contracted, monitoring center personnel respond to alarms by relaying appropriate information to the
local fire or police departments, notifying the customer or taking other appropriate action, such as
dispatching employees to the customer’s premises. In some instances, the customer may monitor the
system at its own premises or the system may be connected to local fire or police departments.
2 2005 Financials