ADT 2008 Annual Report Download - page 180

adoption of SFAS No. 157 for one year for nonfinancial assets and liabilities that are recognized or
disclosed at fair value in the financial statements on a nonrecurring basis. SFAS No. 157 is effective for
Tyco in the first quarter of 2009. The Company is currently assessing the impact, if any, that SFAS
No. 157 will have on the results of its operations, financial position or cash flows.
In September 2006, FASB issued SFAS No. 158, ‘‘Employers’ Accounting for Defined Benefit Pension
and Other Postretirement Plans—an amendment of FASB Statements No. 87, 88, 106 and 132(R).’’ SFAS
No. 158 requires that employers recognize the funded status of defined benefit pension and other
postretirement benefit plans as a net asset or liability on the balance sheet and recognize as a
component of other comprehensive income, net of tax, the gains or losses and prior service costs or
credits that arise during the period but are not recognized as a component of net periodic benefit cost.
The company adopted the recognition and disclosure provisions of SFAS No. 158 as of September 28,
2007.
SFAS No. 158 also requires companies to measure plan assets and benefit obligations as of their
fiscal year end. The Company presently uses a measurement date of August 31st. The measurement
date provisions become effective in fiscal 2009. The Company is currently assessing the impact that
SFAS No. 158 measurement date provisions will have on the results of its operations, financial position
or cash flows.
In June 2008 the FASB ratified FASB Staff Position No. EITF 03-6-1, ‘‘Determining Whether
Instruments Granted in Share-Based Payment Transactions are Participating Securities’’ (FSP No.
EITF 03-6-1), which addresses whether instruments granted in share-based payment awards are
participating securities prior to vesting and, therefore, must be included in the earnings allocation in
calculating earnings per share under the two-class method described in SFAS No. 128, ‘‘Earnings per
Share’’ (SFAS No. 128). FSP No. EITF 03-6-1 requires that unvested share-based payment awards that
contain non-forfeitable rights to dividends or dividend-equivalents be treated as participating securities
in calculating earnings per share. FSP No. EITF 03-6-1 is effective for Tyco in fiscal 2010 and interim
periods within those fiscal years, and shall be applied retrospectively to all prior periods. We are
currently evaluating the effects, if any that FSP No. EITF 03-6-1 may have on earnings per share.
Forward-Looking Information
Certain statements in this report are ‘‘forward-looking statements’’ within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risks and
uncertainties. All statements contained herein that are not clearly historical in nature are forward-
looking, and the words ‘‘anticipate,’’ ‘‘believe,’’ ‘‘expect,’’ ‘‘estimate,’’ ‘‘project’’ and similar expressions
are generally intended to identify forward-looking statements. Any forward-looking statement contained
herein, in press releases, written statements or other documents filed with the Security and Exchange
Commission (‘‘SEC’’), or in Tyco’s communications and discussions with investors and analysts in the
normal course of business through meetings, web casts, phone calls and conference calls, regarding
expectations with respect to sales, earnings, cash flows, operating efficiencies, product expansion,
backlog, the consummation and benefits of acquisitions and divestitures, as well as financings and
repurchases of debt or equity securities, are subject to known and unknown risks, uncertainties and
contingencies. Many of these risks, uncertainties and contingencies are beyond our control, and may
cause actual results, performance or achievements to differ materially from anticipated results,
performance or achievements. Factors that might affect such forward-looking statements include, among
other things:
• overall economic and business conditions;
• the demand for Tyco’s goods and services;
• competitive factors in the industries in which Tyco competes;
• changes in tax requirements (including tax rate changes, new tax laws and revised tax law
interpretations);
2008 Financials 77