ADT 2007 Annual Report Download - page 96

to identify customers that operate in limited geographic regions and that can benefit from
services and products that we do not currently market in those regions. We expect to increase
the global penetration of our leading brands among our existing customers.
•Improve productivity and efficiency. We intend to increase the profitability of our global portfolio
of services and products by focusing on further improvements to our cost structure. We will
continue to reduce our manufacturing costs by leveraging our purchasing power to reduce
procurement costs, enhancing our manufacturing productivity through an emphasis on key
metrics and processes such as Six Sigma, continuing to standardize our systems and processes
across our businesses, consolidating facilities within countries and by moving our production
facilities from high-cost to low-cost manufacturing regions. During the first quarter of 2007, we
launched a restructuring program across all segments, including the corporate organization,
which will streamline some of the businesses and reduce our operational footprint. We believe
this restructuring program will strengthen our competitive position over the long term.
In addition, we will continue to evaluate our existing operations on a regular basis in order to
identify and potentially dispose of businesses or product lines that we conclude do not meet
either our long-term return criteria or our strategic direction. For example, in July 2007, the
Board of Directors approved the divestiture of Infrastructure Services, which was previously
reported as part of Corporate and Other. As a result, Infrastructure Services is reflected as
discontinued operations in all periods presented.
•Pursue disciplined acquisition process. Our strong cash flows will enable us to fund acquisitions
that strengthen our product offerings and market positions, as well as increase our revenues,
with a particular focus on our security, flow control and safety products businesses.
History and Development
Tyco International Ltd.
Tyco International Ltd. is a Bermuda corporation. Its registered and principal office is located at
Second Floor, 90 Pitts Bay Road, Pembroke HM 08, Bermuda, and its telephone number at that
address is [phone]. Its management office in the United States is located at 9 Roszel Road,
Princeton, New Jersey 08540. Tyco is the public company resulting from the business combination on
July 2, 1997 of Tyco International Ltd., a Massachusetts corporation, and ADT Limited, a Bermuda
company. Effective June 29, 2007, Tyco completed the spin-offs of Covidien and Tyco Electronics,
formerly our Healthcare and Electronics businesses, respectively, into separate, publicly traded
companies in the form of a distribution to Tyco shareholders.
Segments
See Note 21 to the Consolidated Financial Statements for certain segment and geographic financial
data relating to our business.
ADT Worldwide
Our ADT Worldwide segment designs, sells, installs, services and monitors electronic security
systems to residential, commercial, industrial and governmental customers around the world. We are
one of the world’s largest providers of electronic security systems and services. We have a significant
market presence in North and South America, Europe and the Asia-Pacific region. With 2007 net
revenue of $7.6 billion, our ADT Worldwide segment comprises 41% of our consolidated net revenue.
In 2006 and 2005, net revenue totaled $7.2 billion or 42% of our consolidated net revenue and
$7.1 billion or 43% of our consolidated net revenue, respectively.
4 2007 Financials