ADT 2007 Annual Report Download - page 207

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. Restructuring and Asset Impairment Charges, Net (Continued)
2004 and Prior Charges and Credits
The Company continues to maintain restructuring reserves related to certain actions initiated prior
to 2005. The total amount of these reserves are $21 million and $30 million at September 28, 2007 and
September 29, 2006, respectively. These balances primarily include facility exit costs for long-term
non-cancelable lease obligations within the ADT Worldwide and Fire Protection Services segments,
with expiration dates which range from 2008 to 2022.
Restructuring Reserves
Restructuring reserves from September 29, 2006 to September 28, 2007 by the year in which the
restructuring action was initiated are as follows ($ in millions):
Year of Restructuring
Action
2007 Prior Total
Balance at September 29, 2006 ................................. $ — $34 $ 34
Charges .................................................. 198 1 199
Reversals ................................................. (1) (3) (4)
Utilization ................................................ (59) (11) (70)
Reclass/transfers ............................................ (16) — (16)
Currency translation ......................................... 5 1 6
Balance at September 28, 2007 ................................. $127 $22 $149
Restructuring reserves by segment at September 28, 2007 and September 29, 2006 are as follows
($ in millions):
2007 2006
ADT Worldwide ............................................... $ 72 $20
Fire Protection Services .......................................... 33 6
Flow Control ................................................. 13 2
Safety Products ................................................ 10 2
Electrical and Metal Products ..................................... 6 1
Corporate and Other ............................................ 15 3
$149 $34
At September 28, 2007 and September 29, 2006, restructuring reserves were included in the
Company’s Consolidated Balance Sheets as follows ($ in millions):
2007 2006
Accrued and other current liabilities ................................. $125 $16
Other liabilities ................................................ 24 18
$149 $34
2007 Financials 115