ADT 2008 Annual Report Download - page 216

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. Divestitures (Continued)
Net revenue, income from operations, gain (loss) on sale, separation costs and income tax expense
for discontinued operations for 2008, 2007 and 2006 are as follows ($ in millions):
2008 2007 2006
Net revenue ....................................... $1,221 $19,271 $25,067
Pre-tax income from discontinued operations ............... $ 51 $ 2,816 $ 3,842
Pre-tax gain (loss) on sale of discontinued operations ......... 484 (549) (245)
Separation costs .................................... — (719) (120)
Income tax expense ................................. (77) (766) (690)
Income from discontinued operations, net of income taxes ..... $ 458 $ 782 $ 2,787
Balance sheet information for pending divestitures at September 26, 2008 and September 28, 2007
is as follows ($ in millions):
2008 2007
Accounts receivable, net ........................................ $ 52 $ 438
Inventories ................................................. 24 64
Prepaid expenses and other current assets ........................... 18 47
Property, plant and equipment, net ................................ 20 166
Goodwill and other intangibles, net ............................... 157 236
Other assets ................................................ 113 434
Total assets ............................................... $384 $1,385
Current maturities of long-term debt .............................. $ 4 $ 5
Accounts payable ............................................. 27 228
Accrued and other current liabilities ............................... 58 320
Long-term debt .............................................. — 18
Other liabilities .............................................. 39 91
Total liabilities ............................................. $128 $ 662
Minority interest ............................................. $ 1 $ 30
Losses on divestitures
During 2008, 2007 and 2006, the Company recorded $1 million, $4 million and $2 million,
respectively, of divestiture charges in continuing operations in connection with the write-down to fair
value, less cost to sell, of certain businesses, which did not get classified as discontinued operations as
they did not meet the criteria for such classification. 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.
2008 Financials 113