ADT 2009 Annual Report Download - page 197

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. Restructuring and Asset Impairment Charges, Net (Continued)
2007 Net Restructurings
Net restructuring and asset impairment charges during 2007 were $194 million, which include
$7 million accelerated depreciation of assets directly related to the underlying restructuring actions. The
remaining charge of $187 million consists of $173 million of employee severance and benefits,
$16 million of facility exit charges and other cash charges and $2 million of asset impairments, offset by
$4 million of restructuring reversals resulting from the Company completing restructuring activities
announced in prior years for amounts less than originally estimated.
During 2008, the Company paid $95 million related to actions under the 2007 Program and had
$54 million accrued as of September 26, 2008.
2006 and Prior Restructurings
The Company continues to maintain restructuring reserves related to certain actions initiated prior
to 2006. The total amount of these reserves are $15 million and $16 million as of September 25, 2009
and September 26, 2008, respectively. These balances primarily include facility exit costs for long-term
non-cancelable lease obligations within the ADT Worldwide and Fire Protection Services segments,
with expiration dates which range from 2009 to 2022.
Restructuring Reserves
Restructuring reserves from September 26, 2008 to September 25, 2009 by the year in which the
restructuring action was initiated are as follows ($ in millions):
Year of Restructuring Action
2007 Program
2009 2008 2007 Subtotal Prior Total
Balance as of September 26, 2008 ........... $ — $97 $54 $151 $16 $ 167
Charges .............................. 189 11 5 16 2 207
Reversals ............................. (5) (10) (2) (12) — (17)
Utilization ............................ (63) (58) (27) (85) (2) (150)
Reclass/transfers ........................ (1) 8 (12) (4) — (5)
Currency translation ..................... 10 (2) (5) (7) (1) 2
Balance as of September 25, 2009 ........... $130 $ 46 $ 13 $ 59 $15 $ 204
Restructuring reserves for businesses that have met the held for sale criteria are included in
liabilities held for sale on the Consolidated Balance Sheets and excluded from the rollforward tables
above. See Note 2.
2009 Financials 105