ADT 2007 Annual Report Download - page 175

Item 8. Financial Statements and Supplementary Data
The following consolidated financial statements and schedule specified by this Item, together with
the report thereon of Deloitte & Touche LLP, are presented following Item 15 of this report:
Financial Statements:
Management’s Responsibility for Financial Statements
Reports of Independent Registered Public Accounting Firm
Consolidated Statements of Operations for the years ended September 28, 2007,
September 29, 2006 and September 30, 2005
Consolidated Balance Sheets at September 28, 2007 and September 29, 2006
Consolidated Statements of Shareholders’ Equity for the years ended September 28, 2007,
September 29, 2006 and September 30, 2005
Consolidated Statements of Cash Flows for the years ended September 28, 2007,
September 29, 2006 and September 30, 2005
Notes to Consolidated Financial Statements
Financial Statement Schedule:
Schedule II—Valuation and Qualifying Accounts
All other financial statements and schedules have been omitted since the information required to
be submitted has been included in the consolidated financial statements and related notes or because
they are either not applicable or not required under the rules of Regulation S-X.
Information on quarterly results of operations is set forth in Note 24 to the Consolidated Financial
Statements.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to provide reasonable assurance
that information required to be disclosed in our Exchange Act reports is recorded, processed,
summarized and reported within the time periods specified in the Securities and Exchange
Commission’s rules and forms, and that such information is accumulated and communicated to our
management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to
allow timely decisions regarding required disclosure.
Under the supervision and with the participation of our management, including our Chief
Executive Officer and our Chief Financial Officer, we conducted an evaluation of the effectiveness of
our disclosure controls and procedures, as defined under Exchange Act Rule 13a-15(e). Based on this
evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that, as of
September 28, 2007, our disclosure controls and procedures were not effective because of a material
weakness in our internal controls over financial reporting, relating to accounting for income taxes,
which we view as an integral part of our disclosure controls and procedures.
2007 Financials 83