ADT 2005 Annual Report Download - page 87

Environmental Matters
We are subject to numerous foreign, federal, state and local environmental protection and health
and safety laws governing, among other things, the generation, storage, use and transportation of
hazardous materials; emissions or discharges of substances into the environment; and the health and
safety of our employees. The cost of compliance with environmental laws, however, has not had, and
based on current information and applicable laws, is not expected to have, a material adverse effect
upon our capital expenditures, earnings or competitive position.
Certain environmental laws assess liability on current or previous owners or operators of real
property for the cost of removal or remediation of hazardous substances at their properties or at
properties at which they have disposed of hazardous substances. In addition to cleanup actions brought
by governmental authorities, private parties could bring personal injury or other claims due to the
presence of, or exposure to, hazardous substances. We have received notification from the United
States Environmental Protection Agency and from state environmental agencies that conditions at a
number of sites where we and others disposed of hazardous substances require cleanup and other
possible remedial action and may require that we reimburse the government or otherwise pay for the
cost of cleanup of those sites and/or for natural resource damages. We have projects underway at a
number of current and former manufacturing facilities to investigate and remediate environmental
contamination resulting from past operations.
Given uncertainties regarding the extent of the required cleanup, the interpretation of applicable
laws and regulations and alternative cleanup methods, the ultimate cost of cleanup at disposal sites and
manufacturing facilities is difficult to predict. Based upon our experience, current information and
applicable laws, we believe that it is probable that we would incur remedial costs in the range of
approximately $143 million to $420 million. As of September 30, 2005, we believe that the best estimate
within this range is approximately $215 million, of which $33 million is included in accrued expenses
and other current liabilities and $182 million is included in other long-term liabilities on the
Consolidated Balance Sheets. In view of our financial position and reserves for environmental matters
of $215 million, we believe that any potential payment of such estimated amounts will not have a
material adverse effect on our financial position, results of operations or cash flows.
Available Information
Tyco is required to file annual, quarterly and special reports, proxy statements and other
information with the Securities and Exchange Commission (‘‘SEC’’). Investors may read and copy any
document that Tyco files, including this Annual Report on Form 10-K, at the SEC’s Public Reference
Room at 450 Fifth Street, N.W., Washington, DC 20549. Investors may obtain information on the
operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. In addition, the SEC
maintains an Internet site at http://www.sec.gov that contains reports, proxy and information statements
and other information regarding issuers that file electronically with the SEC, from which investors can
electronically access Tyco’s SEC filings.
Our Internet website is www.tyco.com. We make available free of charge on our website our
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K,
reports filed pursuant to Section 16 and amendments to those reports as soon as reasonably practicable
after we electronically file or furnish such materials to the Securities and Exchange Commission. In
addition, we have posted the charters for our Audit Committee, Compensation and Human Resources
Committee, and Nominating and Governance Committee, as well as our Board Governance Principles
and Guide to Ethical Conduct, on our website under the heading ‘‘Our Commitment—Governance.’’
These charters and principles are not incorporated in this report by reference. We will also provide a
copy of these documents free of charge to shareholders upon request.
2005 Financials 11