ADT 2007 Annual Report Download - page 172

The Company is currently assessing the impact that SFAS No. 159 will have on the results of its
operations, financial position or cash flows.
In September 2006, the FASB issued SFAS No. 157, ‘‘Fair Value Measurements,’’ which enhances
existing guidance for measuring assets and liabilities at fair value. SFAS No. 157 defines fair value,
establishes a framework for measuring fair value and expands disclosure about fair value
measurements. SFAS No. 157 is effective for Tyco beginning in fiscal 2009. The Company is currently
assessing the impact, if any, that SFAS No. 157 will have on the results of its operations, financial
position or cash flows.
In June 2006, the FASB issued FIN No. 48, ‘‘Accounting for Uncertainty in Income Taxes—an
interpretation of FASB Statement No. 109.’’ This Interpretation prescribes a comprehensive model for
the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions
taken or expected to be taken in income tax returns. FIN No. 48 is effective for Tyco in the first
quarter of fiscal 2008. The Company is currently implementing and assessing the expected impact of
adopting FIN No. 48. Based on the assessment to date, management does not expect the adoption to
have a material effect on the results of its operations, financial position or cash flows.
Forward-Looking Information
Certain statements in this report are ‘‘forward-looking statements’’ within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risks and
uncertainties. All statements contained herein that are not clearly historical in nature are forward-
looking, and the words ‘‘anticipate,’’ ‘‘believe,’’ ‘‘expect,’’ ‘‘estimate,’’ ‘‘project’’ and similar expressions
are generally intended to identify forward-looking statements. Any forward-looking statement contained
herein, in press releases, written statements or other documents filed with the SEC, or in Tyco’s
communications and discussions with investors and analysts in the normal course of business through
meetings, web casts, phone calls and conference calls, regarding expectations with respect to sales,
earnings, cash flows, operating efficiencies, product expansion, backlog, the consummation and benefits
of acquisitions and divestitures, the Separation or other matters, as well as financings and repurchases
of debt or equity securities, are subject to known and unknown risks, uncertainties and contingencies.
Many of these risks, uncertainties and contingencies are beyond our control, and may cause actual
results, performance or achievements to differ materially from anticipated results, performance or
achievements. Factors that might affect such forward-looking statements include, among other things:
• overall economic and business conditions;
• the demand for Tyco’s goods and services;
• competitive factors in the industries in which Tyco competes;
• changes in tax requirements (including tax rate changes, new tax laws and revised tax law
interpretations);
• results and consequences of Tyco’s internal investigation and governmental investigations
concerning the Company’s governance, management, internal controls and operations including
its business operations outside the United States;
• the outcome of litigation and governmental proceedings as a result of actions taken by our
former senior corporate management;
• effect of income tax audit settlements;
• the ratings on our debt and our ability to repay or refinance our outstanding indebtedness as it
matures;
80 2007 Financials