ADT 2010 Annual Report Download - page 122

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations
The following discussion and analysis of the Company’s financial condition and results of
operations should be read together with the Selected Financial Data and our Consolidated Financial
Statements and the related Notes included elsewhere in this Annual Report. The Company does not
believe that its historical operating results will be indicative of future operating results. This discussion
and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. The
Company’s actual results may differ materially from those anticipated in these forward-looking
statements as a result of many factors, including but not limited to those under the headings ‘‘Risk
Factors’’ and ‘‘Forward-Looking Information.’’
Introduction
The Consolidated Financial Statements include the consolidated results of Tyco International Ltd.,
a company organized under the laws of Switzerland, and its subsidiaries (hereinafter collectively
referred to as ‘‘we,’’ the ‘‘Company’’ or ‘‘Tyco’’). The financial statements have been prepared in
United States dollars (‘‘USD’’), in accordance with accounting principles generally accepted in the
United States (‘‘GAAP’’).
The Company operates in the following business segments:
•ADT Worldwide designs, sells, installs, services and monitors electronic security systems for
residential, commercial, industrial and governmental customers. In addition, ADT Worldwide
manufactures certain products related to retailer anti-theft systems.
•Flow Control designs, manufactures, sells and services valves, pipes, fittings, valve automation
and heat tracing products for general process, energy and mining markets as well as the water
and wastewater markets.
•Fire Protection Services designs, sells, installs and services fire detection and fire suppression
systems for commercial, industrial and governmental customers.
•Electrical and Metal Products designs, manufactures and sells galvanized steel tubing, armored
wire and cable and other metal products for non-residential construction, electrical, fire and
safety and mechanical customers.
•Safety Products designs, manufactures and sells fire suppression, electronic security and life safety
products, including fire sprinklers, 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.
We also provide general corporate services to our segments and these costs are reported as
Corporate and Other.
References to the segment data are to the Company’s continuing operations. Certain prior period
amounts have been reclassified to conform with the current period presentation. The Company has
reclassified certain businesses which have satisfied the criteria to be presented as discontinued
operations to income from discontinued operations in the Consolidated Statements of Operations and
assets and liabilities held for sale within the Consolidated Balance Sheets. See Note 2 to the
Consolidated Financial Statements. Additionally, the Company has realigned certain business
operations during the first quarter of fiscal 2010 resulting in prior period segment amounts being
recast. See Note 19 to the Consolidated Financial Statements.
On May 14, 2010, we acquired all of the outstanding equity of Brink’s Home Security Holdings,
Inc. (‘‘BHS’’ or ‘‘Broadview Security’’) in a cash-and-stock transaction valued at approximately
34 2010 Financials