ADT 2009 Annual Report Download - page 276

TYCO INTERNATIONAL LTD.
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 25, 2009
(Continued)
4. COMMITMENTS AND CONTINGENCIES (Continued)
However, it is possible that the Company may be required to pay material fines, consent to
injunctions on future conduct, or suffer other criminal or civil penalties or adverse impacts, each of
which could have a material adverse effect on the Company’s financial position, results of operations or
cash flows.
Covidien and Tyco Electronics agreed, in connection with the separation, to cooperate with the
Company in its responses regarding these matters. Any judgment required to be paid or settlement or
other cost incurred by the Company in connection with the FCPA investigations would be subject to the
liability sharing provisions of the Separation and Distribution Agreement, which assigned liabilities
primarily related to the former Healthcare and Electronics businesses of the Company to Covidien or
Tyco Electronics, respectively, and provides that the Company will retain liabilities primarily related to
its continuing operations. Any liabilities not primarily related to a particular segment will be shared
equally among the Company, Covidien and Tyco Electronics.
In addition to the foregoing, the Company is subject to claims and suits, including from time to
time, contractual disputes and product and general liability claims, incidental to present and former
operations, acquisitions and dispositions. With respect to many of these claims, the Company either
self-insures or maintains insurance through third-parties, with varying deductibles. While the ultimate
outcome of these matters cannot be predicted with certainty, we believe that the resolution of any such
proceedings, whether the underlying claims are covered by insurance or not, will not have a material
adverse effect on our financial condition, results of operations or cash flows beyond amounts recorded
for such matters.
5. SIGNIFICANT INVESTMENTS WITH DIRECT OWNERSHIP BY TYCO INTERNATIONAL LTD.
Ownership Share
Company Country % Currency Capital Purpose
Tyco Kappa Limited .......... Bermuda 100 USD 12,000 holding company
Tyco Capital Holdings Ltd. .... Bermuda 79 USD 12,000 holding company
Obsidian HCM Med Holdings
Ireland .................. Ireland 55 EURO 125,000,000 holding company
Tyco International Finance S.A. . Luxembourg 100 USD 445,000 holding company
In addition, the Company directly holds $2.5 billion preferred shares of Tyco Omega Limited,
Bermuda. Tyco Omega Limited is a holding company which has $4.5 billion preferred shares
outstanding and $5.28 million common shares outstanding which are ultimately directly or indirectly
owned by Tyco International Ltd.
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