ADT 2010 Annual Report Download - page 181

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. Restructuring and Asset Impairment Charges, Net
2009 Program
During fiscal 2009 and 2010, the Company identified and pursued opportunities for cost savings
through restructuring activities and workforce reductions to improve operating efficiencies across the
Company’s businesses (the ‘‘2009 Program’’). As of September 24, 2010, the Company has substantially
completed the 2009 Program. During fiscal 2010, the Company identified additional opportunities for
cost savings through restructuring activities in fiscal 2011. The Company expects to incur restructuring
and restructuring related charges of approximately $150 million in fiscal 2011.
Restructuring and asset impairment charges, net, during the years ended September 24, 2010 and
September 25, 2009 related to the 2009 Program are as follows ($ in millions):
For the Year Ended September 24, 2010
Employee Facility Exit Charges Charges
Severance and and Other Reflected in Reflected in
Benefits Charges Cost of Sales SG&A Total
ADT Worldwide ................... $ 49 $10 $— $— $ 59
Flow Control ..................... 18 7 1 (1) 25
Fire Protection Services ............. 33 3 — 2 38
Electrical and Metal Products ......... 2 3 7 — 12
Safety Products .................... 7 — — — 7
Corporate and Other ............... 1 — — — 1
Total ........................... $110 $23 $ 8 $ 1 $142
For the Year Ended September 25, 2009
Employee Facility Exit Charges Charges
Severance and and Other Reflected in Reflected in
Benefits Charges Cost of Sales SG&A Total
ADT Worldwide ................... $ 67 $20 $ 9 $ 5 $101
Flow Control ..................... 13 4 3 — 20
Fire Protection Services ............. 44 1 — — 45
Electrical and Metal Products ......... 10 2 7 — 19
Safety Products .................... 22 2 8 — 32
Corporate and Other ............... 2 7 — 1 10
Total ........................... $158 $36 $27 $ 6 $227
2010 Financials 93