ADT 2010 Annual Report Download - page 178

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. Divestitures (Continued)
charge of $8 million in the second quarter of 2009 relating to the amount of depreciation and
amortization expense that would have been recorded had the asset been continuously classified as held
and used.
Discontinued Operations
Fiscal 2010
During the quarter ended June 25, 2010, the Board of Directors approved a plan to sell the
Company’s European water business, which is part of the Company’s Flow Control segment. Subject to
the receipt of certain consents and approvals and other customary closing conditions, the Company has
agreed to sell the business for approximately $245 million. As of September 24, 2010, the necessary
consents and approvals had not been obtained. The business met the held for sale and discontinued
operations criteria and has been included in discontinued operations in all periods presented. As of
September 24, 2010, the Company had assessed and determined that the carrying value of the
remaining assets were recoverable based on current fair value, less cost to sell. The transaction has
subsequently closed and the Company expects to record a gain on the transaction. See Note 25.
Fiscal 2009
In July 2008, the Company substantially completed the sale of its Infrastructure Services business,
which met the criteria to be presented as discontinued operations. In order to complete the sale of the
remaining Infrastructure Services businesses, Earth Tech Brasil Ltda. (‘‘ET Brasil’’), the Earth Tech UK
businesses and certain assets in China, the Company was required to obtain consents and approvals to
transfer the legal ownership of the businesses and assets. By the fourth quarter of 2009, the Company
received all the necessary consents and approvals to transfer the legal ownership of the businesses and
assets and received cash proceeds of $61 million. As a result of the fiscal 2009 dispositions, a net pre-
tax gain of $33 million was recorded in income from discontinued operations, net of income taxes in
the Company’s Consolidated Statements of Operations for the year ended September 25, 2009.
Fiscal 2008
During 2008, the Company sold its Empresa de Transmissao de Energia do Oeste Ltda. (‘‘ETEO’’)
business, Ancon Building Products (‘‘Ancon’’) business, Nippon Dry-Chemical Co., Ltd. (‘‘NDC’’)
business, and a European manufacturer of public address products and acoustic systems. As discussed
above, the Company also substantially completed the sale of its Infrastructure Services Business during
the fourth quarter of 2008. These businesses met the held for sale and discontinued operations criteria
and have been included in discontinued operations in all periods presented.
90 2010 Financials