ADT 2008 Annual Report Download - page 219

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. Restructuring and Asset Impairment Charges, Net (Continued)
During 2008, the Company paid $1 million related to these actions and has $1 million accrued as
of September 26, 2008.
2005 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 $16 million and $21 million at September 26, 2008 and
September 28, 2007, respectively. These balances primarily include facility exit costs for long-term
non-cancelable lease obligations within the ADT Worldwide and Fire Protection Services segments,
with expiration dates which range from 2008 to 2022.
Restructuring Reserves
Restructuring reserves from September 28, 2007 to September 26, 2008 by the year in which the
restructuring action was initiated are as follows ($ in millions):
Year of
Restructuring Action
Franchise
2007 Program Settlement
2008 2007 Subtotal 2008 Prior Total
Balance at September 28, 2007 ...... $ — $115 $ 115 $— $22 $ 137
Charges ....................... 102 76 178 58 1 237
Reversals ...................... (2) (28) (30) — (2) (32)
Utilization ..................... (30) (95) (125) (58) (4) (187)
Reclass/transfers ................. 12 — 12 — — 12
Currency translation .............. 16 (13) 3 — (1) 2
Balance at September 26, 2008 ...... $ 98 $ 55 $153 $— $16 $169
Restructuring reserves by segment at September 26, 2008 and September 28, 2007 are as follows
($ in millions):
2008 2007
ADT Worldwide .............................................. $ 48 $ 71
Flow Control ................................................. 7 13
Fire Protection Services ......................................... 29 22
Electrical and Metal Products ..................................... 14 6
Safety Products ............................................... 66 10
Corporate and Other ........................................... 5 15
$169 $137
At September 26, 2008 and September 28, 2007, restructuring reserves were included in the
Company’s Consolidated Balance Sheets as follows ($ in millions):
2008 2007
Accrued and other current liabilities ................................ $148 $113
Other liabilities ............................................... 21 24
$169 $137
116 2008 Financials