ADT 2009 Annual Report Download - page 208

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
9. Investments (Continued)
As of September 26, 2008:
Consolidated
Balance Sheet
Classification
Prepaid
expenses
Other- and
Gross Gross 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 $236
Investments with continuous unrealized losses for less than 12 months and 12 months or greater
and their related fair values are as follows ($ in millions):
As of September 25, 2009:
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 ......... $ 2 $— $ 4 $(1) $ 6 $(1)
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)
The Company recorded an other-than-temporary impairment of $5 million for the year ended
September 26, 2008. The other-than-temporary impairment related to investments in corporate debt of
Lehman Brothers Holding, Inc (‘‘Lehman’’), which filed a petition under Chapter 11 of the U.S.
Bankruptcy Code on September 15, 2008. The Company did not record any other-than-temporary
impairments in the years ended September 25, 2009 and September 28, 2007.
The maturities of the Company’s investments in debt securities as of September 25, 2009 are as
follows ($ in millions):
Cost Fair
Basis Value
Due in one year or less ................................... $ 47 $ 49
Due after one year through five years ........................ 287 291
10. Goodwill and Intangible Assets
As previously reported, the Company began to experience a decline in revenue during the first
quarter of 2009 in its ADT Worldwide, Fire Protection Services and Safety Products segments as a
116 2009 Financials