ADT 2009 Annual Report Download - page 157

better understand how investment decisions are made, the major categories of plan assets, the inputs
and valuation techniques used to measure the fair value of plan assets, the effect of fair value
measurements using significant unobservable inputs (Level 3) on changes in plan assets for the period,
and the significant concentrations of risk within plan assets. The disclosure provisions of the guidance
are effective for Tyco in the first quarter of fiscal 2010.
In June 2008, the FASB ratified authoritative guidance for determining whether instruments
granted in share-based payment transactions are participating securities. The guidance 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. The guidance 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. The guidance is effective for Tyco starting with the first quarter of fiscal
2010, and shall be applied retrospectively to all prior periods. The Company believes that the guidance
will not have a material impact on its financial position, results of operations or cash flows.
In April 2008, the FASB issued authoritative guidance for determining the useful life of intangible
assets. The guidance amends the factors that should be considered in developing renewal or extension
assumptions used to determine the useful life of a recognized intangible asset. The guidance is effective
for Tyco in the first quarter of fiscal 2010. The Company has determined that the guidance will not
have a material impact on its financial position, results of operations or cash flows.
In December 2007, the FASB revised the authoritative guidance for business combinations. The
revised guidance retains the underlying concepts of the existing guidance in that business combinations
are still accounted for at fair value. However, the accounting for certain other aspects of business
combinations will be affected. Acquisition costs will generally be expensed as incurred. Restructuring
costs associated with a business combination will generally be expensed subsequent to the acquisition
date. In-process research and development will be recorded at fair value as an indefinite-lived
intangible at the acquisition date until it is completed or abandoned and its useful life can be
determined. Changes in deferred tax asset valuation allowances and uncertain tax positions after the
acquisition date will generally impact income tax expense. The revised guidance also expands required
disclosures surrounding the nature and financial effects of business combinations. The revised guidance
is effective, on a prospective basis, for Tyco in the first quarter of fiscal 2010.
In December 2007, the FASB issued authoritative guidance for noncontrolling interests in
consolidated financial statements. The guidance requires the recognition of a noncontrolling interest
(minority interest prior to the adoption of the guidance) as equity in the Consolidated Financial
Statements. The amount of net income attributable to the noncontrolling interest should be included in
consolidated net income on the face of the Consolidated Statements of Operations. The guidance also
amends certain existing consolidation procedures in order to achieve consistency with the requirements
of the revised authoritative guidance for business combinations discussed above. The guidance also
includes expanded disclosure requirements regarding the interests of the parent and its noncontrolling
interest. This guidance is effective for Tyco in the first quarter of fiscal 2010. The implementation of
the guidance will not have a material impact on the Company’s financial position, results of operations
or cash flows.
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 Securities and Exchange
Commission (‘‘SEC’’), or in Tyco’s communications and discussions with investors and analysts in the
2009 Financials 65