ADT 2005 Annual Report Download - page 96

Item 2. Properties
Our operations are conducted in facilities throughout the world aggregating approximately
103 million square feet of floor space, of which approximately 54 million square feet are owned and
approximately 49 million square feet are leased. These facilities house manufacturing, distribution and
warehousing operations, as well as sales and marketing, engineering and administrative offices.
Fire and Security operates through a network of offices located in North America, Central
America, South America, Europe, the Middle East, the Asia-Pacific region and South Africa. Our Fire
and Security manufacturing facilities are located in North America, the United Kingdom, Germany,
Australia, New Zealand, South Korea and Japan. The group occupies approximately 19 million square
feet, of which 4 million square feet are owned and 15 million square feet are leased.
Electronics has manufacturing facilities in North America, Central and South America, Europe,
Asia and Australia. The group occupies approximately 32 million square feet, of which 20 million
square feet are owned and 12 million square feet are leased.
Healthcare has manufacturing facilities in North America, Europe, the Middle East and Asia. The
group occupies approximately 22 million square feet, of which 13 million square feet are owned and
9 million square feet are leased.
Engineered Products and Services has manufacturing facilities, warehouses and distribution centers
throughout North America, Europe, the Asia-Pacific region and Central and South America. The group
occupies approximately 30 million square feet, of which 17 million square feet are owned and
13 million square feet are leased.
In the opinion of management, our properties and equipment are in good operating condition and
are adequate for our present needs. We do not anticipate difficulty in renewing existing leases as they
expire or in finding alternative facilities. See Note 17 to Consolidated Financial Statements for a
description of our lease obligations.
Item 3. Legal Proceedings
Securities Class Actions
As previously reported in our 2004 Form 10-K, Tyco and certain of our former directors and
officers have been named as defendants in over 40 securities class actions. Most of the securities class
actions have now been transferred to the United States District Court for the District of New
Hampshire by the Judicial Panel on Multidistrict Litigation for coordinated or consolidated pretrial
proceedings. On January 28, 2003, a consolidated securities class action complaint was filed in these
proceedings. On January 7, 2005, the Company answered the plaintiffs’ consolidated complaint. On
January 14, 2005, lead plaintiffs made a motion for class certification, which the Company opposed on
July 22, 2005. That motion is still pending. On July 5, 2005, the Company moved for revision of the
Court’s October 14, 2004 order in light of a change in law, insofar as the order denied the Company’s
motion to dismiss the consolidated complaint for failure to plead loss causation. On December 2, 2005,
the Court denied the Company’s motion.
As previously reported in our periodic filings, a class action complaint, Ezra Charitable Trust v. Tyco
International Ltd., was filed in the United States District Court for the Southern District of Florida on
May 28, 2003. The Judicial Panel on Multidistrict Litigation transferred the action to the United States
District Court for the District of New Hampshire. Thereafter, the Company moved to dismiss the
complaint. On December 22, 2004, plaintiff moved to amend the complaint. The proposed amendment
asserts causes of action under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
promulgated thereunder against Tyco International Ltd. and Edward Breen, our current Chief
Executive Officer, and seeks to add as defendants David FitzPatrick, our former Chief Financial
20 2005 Financials