ADT 2009 Annual Report Download - page 196

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. Restructuring and Asset Impairment Charges, Net (Continued)
Activity in the Company’s 2009 restructuring reserves related to actions initiated in 2009 is
summarized as follows ($ in millions):
Employee Facility
Severance and Exit & Other
Benefits Charges Total
Balance as of September 26, 2008 ................... $ — $— $ —
Charges ...................................... 165 24 189
Reversals ..................................... (5) — (5)
Utilization .................................... (49) (14) (63)
Reclass/transfers ................................ (1) — (1)
Currency translation ............................. 9 1 10
Balance as of September 25, 2009 ................... $119 $ 11 $130
Activity in the Company’s 2009 restructuring reserves related to the 2007 Program is summarized
as follows ($ in millions):
Facility
Employee Exit &
Severance and Other
Benefits Charges Total
Balance as of September 26, 2008 ................... $125 $ 26 $151
Charges ...................................... 7 9 16
Reversals ..................................... (10) (2) (12)
Utilization .................................... (71) (14) (85)
Reclass/transfers ................................ — (4) (4)
Currency translation ............................. (7) — (7)
Balance as of September 25, 2009 ................... $ 44 $15 $ 59
During 2009, the Company paid $88 million related to actions under the 2007 Program and
$64 million related to actions initiated in 2009. In addition, the Company paid $2 million related to
2006 and prior restructuring actions. As of September 25, 2009, $130 million has been accrued related
to actions initiated in 2009.
2008 Net Restructurings
Net restructuring and asset impairment charges during the year ended September 26, 2008 were
$246 million, which include $22 million of accelerated depreciation of assets expected to become
obsolete as a result of the restructuring. The remaining charge of $224 million consists of $139 million
of employee severance and benefits, $40 million of facility exit charges, $58 million related to the
reacquisition of certain unfavorable franchise rights, and $19 million of asset impairments, offset by
$32 million of restructuring reversals resulting from the Company completing restructuring activities
announced in prior years for amounts less than originally estimated.
The Company paid $30 million related to actions initiated in 2008 under the 2007 Program and
paid $58 million related to franchise acquisitions. As of September 26, 2008, $97 million had been
accrued.
104 2009 Financials