ADT 2010 Annual Report Download - page 180

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. Divestitures (Continued)
Consolidated balance sheet information for pending divestitures as of September 24, 2010 and
September 25, 2009 was as follows ($ in millions):
2010 2009
Accounts receivables, net ........................................ $ 70 $124
Inventories .................................................. 71 74
Prepaid expenses and other current assets ............................ 13 38
Property, plant and equipment, net ................................. 59 82
Goodwill and intangible assets, net ................................. 105 14
Other assets .................................................. 6 72
Total assets ................................................. $324 $404
Accounts payable .............................................. $ 43 $ 67
Accrued and other current liabilities ................................ 36 108
Other liabilities ............................................... 24 102
Total liabilities .............................................. $103 $277
During fiscal year 2007, Tyco completed the spin-offs of its Healthcare and Electronics businesses
(the ‘‘Separation’’). The Company has used available information to develop its best estimates for
certain assets and liabilities related to the Separation. In limited instances, final determination of the
balances will be made in subsequent periods. There were no adjustments during the year ended
September 24, 2010. During the year ended September 25, 2009, $43 million was recorded through
shareholders’ equity, $9 million of which related to a pre-Separation income tax filing in a non-U.S.
jurisdiction and $34 million of other items. During the year ended September 26, 2008, $70 million of
other items were recorded through shareholders’ equity. The other items discussed above, which
aggregate $104 million, reflect immaterial adjustments to shareholders’ equity which were recorded to
correct the distribution amount at the date of Separation. Adjustments in the future for the impact of
filing final income tax returns in certain jurisdictions where those returns include a combination of
Tyco, Covidien and/or Tyco Electronics legal entities and for certain amended income tax returns for
the periods prior to the Separation may be recorded to either shareholders’ equity or the Consolidated
Statement of Operations depending on the specific item giving rise to the adjustment.
Divestiture Charges, Net
During 2010, 2009 and 2008, the Company recorded a net gain of $40 million, and a net loss of
$15 million and $1 million, respectively, in restructuring, asset impairment and divestiture charges, net
in the Company’s Consolidated Statements of Operations in connection with the divestiture and write-
down to fair value less cost to sell of certain businesses that did not meet the criteria for discontinued
operations. The net gain for 2010 includes the $53 million gain recognized upon the sale of the
Company’s French security business.
92 2010 Financials