ADT 2006 Annual Report Download - page 175

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. Restructuring and Other Charges (Credits), Net (Continued)
carrying value of inventory. Additionally, during 2004, Electronics sold certain cable-laying sea vessels
and other assets that were impaired in prior years for amounts greater than originally anticipated and
recorded the related gain as a restructuring credit of $34 million. Electronics also completed certain
restructuring activities for amounts less than originally estimated, and accordingly reversed $16 million
of restructuring reserves as a restructuring credit.
During 2004 Healthcare recorded restructuring charges of $13 million related to 2004 restructuring
plans. Additionally, Healthcare completed restructuring activities announced in prior years for amounts
less than originally anticipated, and accordingly reversed $2 million of restructuring reserves as a credit.
During 2004, Engineered Products and Services recorded restructuring charges of $55 million
related to 2004 restructuring plans including $1 million reflected in cost of sales for the non-cash
write-down in carrying value of inventory. Additionally, Engineered Products and Services completed
certain restructuring activities for amounts less than originally anticipated, and accordingly reflected
$2 million as a restructuring credit during 2004.
During 2004, Corporate recorded restructuring charges of $17 million related to the 2004
restructuring plans. In addition, Corporate completed certain restructuring activities announced in prior
years for amounts less than originally anticipated, and accordingly reversed $7 million of restructuring
reserves as a restructuring credit. In addition, during 2004, Corporate sold certain TGN assets that
were written down to their expected net realizable value in prior years for amounts greater than
originally anticipated and recorded the related gain as a restructuring credit of $4 million.
2003 and Prior Charges and Credits
The Company continues to maintain restructuring reserves related to actions initiated prior to
2004. The total amount of these reserves are $69 million and $82 million at September 29, 2006 and
September 30, 2005, respectively. These balances primarily include facility exit costs for long-term
non-cancelable lease obligations within the Electronics segment, with expiration dates which range from
2008 to 2022.
Total Restructuring Reserves
Restructuring reserves by segment at September 29, 2006 and September 30, 2005 are as follows ($
in millions): 2006 2005
Electronics ......................................................... $ 71 $ 81
Fire and Security ..................................................... 28 45
Healthcare ......................................................... — 1
Engineered Products and Services ........................................ 5 9
Corporate .......................................................... 3 3
Restructuring reserves ................................................. $107 $139
At September 29, 2006 and September 30, 2005, restructuring reserves were included in the
Company’s Consolidated Balance Sheets as follows ($ in millions):
2006 2005
Accrued and other current liabilities ................................ $ 33 $ 52
Other liabilities ............................................... 74 87
Restructuring reserves .......................................... $107 $139
2006 Financials 113