ADT 2007 Annual Report Download - page 93

PART I
Item 1. Business
General
Effective June 29, 2007, Tyco International Ltd. (hereinafter referred to as ‘‘we,’’ the ‘‘Company’’
or ‘‘Tyco’’) completed the spin-offs of Covidien and Tyco Electronics, formerly our Healthcare and
Electronics businesses, respectively, into separate, publicly traded companies (the ‘‘Separation’’) in the
form of a distribution to Tyco shareholders. The distribution was made on June 29, 2007, to Tyco
shareholders of record on June 18, 2007, the record date. Each Tyco shareholder received 0.25 of a
common share of each of Covidien and Tyco Electronics for each Tyco common share held on the
record date. As a result of the distribution, the operations of Tyco’s former Healthcare and Electronics
businesses are now classified as discontinued operations in all periods presented.
In connection with the Separation, we realigned our management and segment reporting structure.
The segment data presented reflects the new segment structure. The Company reports financial and
operating information in the following five segments, effective March 31, 2007:
•ADT Worldwide designs, sells, installs, services and monitors electronic security systems to
residential, commercial, industrial and governmental customers.
•Fire Protection Services designs, sells, installs and services fire detection and fire suppression
systems to commercial, industrial and governmental customers.
•Flow Control designs, manufactures, sells and services valves, pipes, fittings, valve automation
and heat tracing products for the water and wastewater markets, the oil, gas and other energy
markets along with general process industries.
•Safety Products designs, manufactures and sells fire protection, security and life safety products,
including fire suppression products, breathing apparatus, intrusion security, access control and
video management systems. In addition, Safety Products manufactures products installed and
serviced by ADT Worldwide and Fire Protection Services.
•Electrical and Metal Products designs, manufactures and sells steel tubing and pipe products, as
well as cable products, including pre-wired armored cable and flexible conduit products for
commercial construction.
We also provide general corporate services to our segments and these costs are reported as
Corporate and Other.
References to the segment data are to the Company’s continuing operations. Prior period amounts
have been reclassified to exclude the results of discontinued operations.
Net revenue by segment for 2007 is as follows ($ in billions):
Percent of
Total
Net
Net Revenue Revenue Key Brands
ADT Worldwide ................ $ 7.6 41% ADT, Sensormatic
Fire Protection Services .......... 3.5 19 SimplexGrinnell, Wormald
Flow Control .................. 3.8 20 Keystone, Vanessa
Safety Products ................ 1.8 9 Scott, Ansul
Electrical and Metal Products ...... 2.0 11 Allied Tube & Conduit, AFC Cable
Corporate and Other ............ 0.1 —
$18.8 100%
2007 Financials 1