ADT 2008 Annual Report Download - page 230

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
10. Investments (Continued)
The cost and fair market value of the Company’s investments by type of security and classification
in the Company’s Consolidated Balance Sheets are as follows (in millions):
As of September 26, 2008:
Balance Sheet
Classification
Prepaids
and
Gross Gross Other-Than- Other
Cost Unrealized Unrealized Temporary Fair Current Other
Type of Security Basis Gain Loss Impairment Value Assets Assets
Corporate debt securities ............... $166 $ — $(11) $(5) $150 $41 $109
U.S. Government debt securities .......... 142 2 — — 144 26 118
Other debt securities .................. 9 — — — 9 — 9
$317 $ 2 $(11) $(5) $303 $67 $236
As of September 28, 2007:
Balance Sheet
Classification
Prepaids
and
Gross Gross Other
Cost Unrealized Unrealized Temporary Fair Current Other
Type of Security Basis Gain Loss Impairment Value Assets Assets
Corporate debt securities ................ $147 $ — $(1) $ — $146 $ 31 $115
U.S. Government debt securities .......... 200 1 — — 201 87 114
Other debt securities ................... 5 — — — 5 — 5
$352 $ 1 $(1) $ — $352 $118 $234
Investments with continuous unrealized losses for less than 12 months and 12 months or greater
and their related fair values are as follows (in millions):
As of September 26, 2008:
Less Than 12 Months or Total Total
Fair 12 Months Fair Greater Fair Unrealized
Type of Security Value Unrealized Losses Value Unrealized Losses Value Losses
Corporate debt securities ........ $63 $(4) $62 $(7) $125 $(11)
As of September 28, 2007:
Less Than 12 Months or Total Total
Fair 12 Months Fair Greater Fair Unrealized
Type of Security Value Unrealized Losses Value Unrealized Losses Value Losses
Corporate debt securities ........ $21 $ — $ 96 $(1) $117 $(1)
The Company believes the unrealized losses to be temporary in nature because the Company has
the intent and ability to hold these investments until maturity. The Company concluded the unrealized
losses were temporary because (i) the Company believes the market value is partially due to the global
market and current economic conditions which are at unprecedented levels, (ii) the securities continue
2008 Financials 127