ADT 2007 Annual Report Download - page 204

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. Discontinued Operations and Divestitures (Continued)
Net revenue, income from operations, (loss) gain on sale, separation costs and income tax expense
for discontinued operations for 2007, 2006 and 2005 are as follows ($ in millions):
2007 2006 2005
Net revenue ...................................... $18,966 $24,797 $25,092
Pre-tax income from discontinued operations .............. $ 2,802 $ 3,831 $ 3,336
Pre-tax (loss) gain on sale of discontinued operations ........ (550) (245) 34
Separation costs ................................... (719) (120) —
Income tax expense ................................. (756) (685) (878)
Income from discontinued operations, net of income taxes .... $ 777 $ 2,781 $ 2,492
Balance sheet information for discontinued operations at September 28, 2007 and September 29,
2006 is as follows ($ in millions):
2007 2006
Cash and cash equivalents ..................................... $ — $ 732
Accounts receivable, net ....................................... 327 4,398
Inventories ................................................ 12 3,231
Prepaid expenses and other current assets .......................... 19 1,652
Property, plant and equipment, net ............................... 137 5,910
Goodwill and other intangibles, net ............................... — 15,976
Other assets ............................................... 474 2,325
Total assets .............................................. $969 $34,224
Current maturities of long-term debt .............................. $ 5 $ 37
Accounts payable ............................................ 150 2,007
Accrued and other current liabilities .............................. 267 2,469
Long-term debt ............................................. 24 512
Other liabilities ............................................. 63 2,972
Total liabilities ............................................ $509 $ 7,997
Minority interest ............................................ $ 30 $ 36
Losses on divestitures
During 2007, 2006 and 2005, the Company recorded $4 million, $2 million and $23 million,
respectively, of divestiture charges in continuing operations in connection with the write-down to fair
value, less cost to sell, of certain businesses. The fair value used for the impairment assessments was
primarily based on the terms and conditions included or expected to be included in the sales
agreements.
112 2007 Financials