ADT 2010 Annual Report Download - page 182

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. Restructuring and Asset Impairment Charges, Net (Continued)
Restructuring and asset impairment charges, net incurred cumulative to date from initiation of the
2009 Program are as follows ($ in millions):
Employee Facility Exit Charges Charges
Severance and and Other Reflected in Reflected in
Benefits Charges Cost of Sales SG&A Total
ADT Worldwide ................... $116 $30 $ 9 $ 5 $160
Flow Control ..................... 31 11 4 (1) 45
Fire Protection Services ............. 77 4 — 2 83
Electrical and Metal Products ......... 12 5 14 — 31
Safety Products .................... 29 2 8 — 39
Corporate and Other ............... 3 7 — 1 11
Total ........................... $268 $59 $35 $ 7 $369
The rollforward of the reserves related to the 2009 Program from September 25, 2009 to
September 24, 2010 is as follows ($ in millions):
Balance as of September 25, 2009 ...................................... $126
Charges ......................................................... 146
Reversals ........................................................ (10)
Utilization ........................................................ (124)
Reclass/transfers ................................................... (1)
Currency translation ................................................ (2)
Balance as of September 24, 2010 ...................................... $135
Restructuring reserves for businesses that have met the held for sale criteria are included in
liabilities held for sale on the Consolidated Balance Sheets and excluded from the table above. See
Note 2.
2007 Program and pre-2006 Actions
During fiscal 2007 and 2008, the Company launched a restructuring program across all of the
Company’s segments, including the corporate organization, to streamline some of the businesses and
reduce the operational footprint (the ‘‘2007 Program’’). As of December 26, 2008, the Company had
substantially completed this program. The Company maintained a restructuring reserve related to the
2007 Program of $26 million and $59 million as of September 24, 2010 and September 25, 2009,
respectively. The Company utilized $33 million of the restructuring reserve balance during the fiscal
2010. In addition, the Company continues to maintain restructuring reserves related to certain actions
initiated prior to 2006. The total amount of these reserves were $14 million as of September 24, 2010
and $15 million as of September 25, 2009. The aggregate remaining reserves related to the 2007
Program and pre-2006 actions include employee severance and benefits as well as facility exit costs for
long-term non-cancelable lease obligations with expiration dates that range from 2011 to 2022 primarily
within the Company’s ADT Worldwide, Safety Products and Fire Protection Services segments. The
Company incurred $3 million, $5 million and $246 million of charges related to the 2007 Program and
pre-2006 actions, of which $3 million, $5 million and $222 million were recorded in restructuring, asset
94 2010 Financials