ADT 2006 Annual Report Download - page 73

Employees
Tyco employed 238,200 people at September 29, 2006, of which 86,900 are employed in the United
States and 151,300 are outside the United States. We have collective bargaining agreements with labor
unions covering 38,800 employees at certain of our North American, European and Asia-Pacific
businesses. We believe that our relations with the labor unions are generally good.
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 $124 million to $406 million. As of September 29, 2006, we believe that the best estimate
within this range is approximately $184 million, of which $34 million is included in accrued expenses
and other current liabilities and $150 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 $184 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 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.
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