ADT 2009 Annual Report Download - page 99

Safety Products
Our Safety Products segment designs, manufactures and sells fire suppression, electronic, security
and life safety products, including fire suppression products, breathing apparatus, intrusion security,
access control and video management systems. In addition, Safety Products manufactures products
installed and serviced by ADT Worldwide and Fire Protection Services. With 2009 net revenue of
$1.6 billion, our Safety Products segment comprises 9% of our consolidated net revenue. In 2008 and
2007, net revenue totaled $1.9 billion, or 9%, of our consolidated net revenue and $1.7 billion, or 9%,
of our consolidated net revenue, respectively.
Services and Products
Safety Products manufactures fire suppression products, including water sprinkler systems, portable
fire extinguishers, commercial suppression systems for special hazards including gas, powder and foam
agents, forestry and hose products used to fight wildfires, and fire-fighting foam and related delivery
devices. Safety Products also manufactures life safety products, including self-contained breathing
apparatus designed for firefighter, industrial and military use, supplied air respirators, air-purifying
respirators, thermal imaging cameras, gas detection equipment and gas masks. Safety Products’
breathing apparatus are used by the military forces of several countries and many U.S. firefighters rely
on the Scott Air-Pak brand of self-contained breathing apparatus.
Safety Products designs and manufactures electronic security products, including integrated video
surveillance and access control systems to enable businesses to manage their security and enhance
business performance. Its global access control solutions include: integrated security management
systems for enterprise applications, access control solutions for mid-size applications, alarm
management panels, door controllers, readers, keypads and cards. Its global video system solutions
include: digital video management systems, matrix switchers and controllers, digital multiplexers,
programmable cameras, monitors and liquid crystal displays. Its intrusion security products provide
advanced security products for homes and businesses ranging from burglar alarms to a full range of
security systems including alarm control panels, keypads, sensors and central station receiving
equipment used in security monitoring centers.
Safety Products also manufactures a number of products for ADT Worldwide and Fire Protection
Services for incorporation into their electronic security systems and fire detection and fire suppression
systems. These products include a wide range of our fire detection and fire suppression products,
security video and access control products, electronic article surveillance and intrusion products.
Customers
In addition to our ADT Worldwide and Fire Protection Services segments, Safety Products sells its
products primarily through indirect distribution channels around the world. These business partners sell
to customers including contractors that install fire suppression, security and theft protection systems.
Some of our partners are integrators and install the products themselves; others act as dealers and sell
to smaller fire and security contractors. Our end customers for our breathing apparatus include fire
departments, municipal and state governments and military forces as well as major companies in the
Industrial sector. Customers for our fire sprinkler products include distributors, commercial builders
and contractors. Residential builders, contractors and developers are emerging customers for our
sprinkler products given changing regulatory dynamics. In addition, in September 2008, the
International Residential Code Council, a non-profit association that develops model code documents
that are the predominant building and fire safety regulations adopted by jurisdictions in the United
States, adopted proposals to amend the 2009 International Residential Code to require sprinkler
systems in new one and two family dwellings effective in January 2011. This national code must now be
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