ADT 2009 Annual Report Download - page 158

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);
• results and consequences of Tyco’s internal investigation and governmental investigations
concerning the Company’s governance, management, internal controls and operations including
its business operations outside the United States;
• the outcome of litigation and governmental proceedings;
• effect of income tax audit settlements;
• our ability to repay or refinance our outstanding indebtedness as it matures;
• our ability to operate within the limitations imposed by financing arrangements and to maintain
our credit ratings;
• interest rate fluctuations and other changes in borrowing costs;
• other capital market conditions, including availability of funding sources and currency exchange
rate fluctuations;
• availability of and fluctuations in the prices of key raw materials, including steel and copper;
• economic and political conditions in international markets, including governmental changes and
restrictions on the ability to transfer capital across borders;
• the ability to achieve cost savings in connection with the Company’s strategic restructuring and
Six Sigma initiatives and our ability to execute our portfolio refinement and acquisition
strategies;
• potential further impairment of our goodwill and/or our long-lived assets;
• the impact of fluctuations in the price of Tyco common shares;
• risks associated with the change in our jurisdiction of incorporation from Bermuda to
Switzerland, including the possibility of reduced flexibility with respect to certain aspects of
capital management, increased or different regulatory burdens, and the possibility that we may
not realize anticipated tax benefits;
• changes in U.S. and non-U.S. governmental laws and regulations; and
• the possible effects on Tyco of future legislation in the United States that may limit or eliminate
potential U.S. tax benefits resulting from Tyco’s jurisdiction of incorporation or deny U.S.
government contracts to Tyco based upon its jurisdiction of incorporation.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
In the normal course of conducting business, we are exposed to certain risks associated with
potential changes in market conditions. These risks include fluctuations in foreign currency exchange
rates, interest rates and commodity prices. Accordingly, we have established a comprehensive risk
66 2009 Financials