ADT 2006 Annual Report Download - page 172

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. Discontinued Operations and Divestitures (Continued)
in connection with the divestiture and liquidation of these businesses, as well as the write-down to
estimated fair value of certain held for sale businesses.
During 2006, the Company divested 6 businesses that were reported as continuing operations in
Fire and Security and Healthcare. The Company recorded net gains on divestitures of $46 million in
connection with the divestiture of these businesses, less $2 million of divestiture charges related to the
write-down to estimated fair value and costs to sell certain other held for sale businesses.
For the divested businesses during 2006, 2005 and 2004, fair value used for the impairment
assessment was primarily based on the terms and conditions included or expected to be included in the
sales agreements.
Businesses held for sale
Balance sheet information for discontinued operations and other businesses held for sale at
September 29, 2006 and September 30, 2005 is as follows ($ in millions):
2006 2005
Accounts receivable, net ........................................ $ 82 $ 300
Inventories ................................................. 57 237
Other current assets .......................................... 2 22
Property, plant and equipment, net ................................ 102 438
Goodwill ................................................... — 547
Intangible assets, net .......................................... — 15
Other non-current assets ....................................... 2 9
Total assets ............................................... $245 $1,568
Accounts payable ............................................. $ 37 $ 140
Accrued and other current liabilities ............................... 17 158
Other liabilities .............................................. 2 22
Total liabilities ............................................. $ 56 $ 320
4. Restructuring and Other Charges (Credits), Net
Restructuring and other charges (credits), net, during the years ended September 29, 2006,
September 30, 2005 and 2004 are as follows ($ in millions):
2006 2005 2004
Electronics .............................................. $13 $(10) $(35)
Fire and Security ......................................... 9 9 175
Healthcare .............................................. — 3 11
Engineered Products and Services ............................. 1 5 53
Corporate ............................................... 3 (1) 6
26 6 210
Inventory charges in cost of sales .............................. (6) (1) (6)
Restructuring and other charges, net ........................... $20 $ 5 $204
2006 Charges and Credits
During 2006, the Company recorded net restructuring charges of $26 million, including $6 million
reflected in cost of sales for the non-cash write down in carrying value of inventory. Restructuring
110 2006 Financials