ADT 2010 Annual Report Download - page 186

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. Acquisitions (Continued)
Security will form part of the Company’s ADT Worldwide segment’s North American operations. As a
result, Broadview Security’s operating results, including its revenue and income from continuing
operations will be reflected in the operating results of ADT Worldwide’s North American operations
and will no longer be reported separately. The Company has included the actual results of Broadview
Security from the acquisition date, May 14, 2010, in the consolidated statement of operations for the
year ended September 24, 2010. Due to the integration of operations, the Company has estimated the
acquisition has contributed the following net revenue and loss from continuing operations during fiscal
2010 ($ in millions):
For the Year Ended
September 24, 2010
Net Revenue .............................................. $193
Loss from continuing operations attributable to Tyco common shareholders . $(25)
Acquisition Related Costs
Acquisition costs are expensed as incurred. The Company has incurred approximately $17 million
of costs directly related to the acquisition of Broadview Security during the year ended September 24,
2010. In addition, the Company recorded $18 million of integration costs during the year ended
September 24, 2010. Both acquisition and integration costs have been recorded within selling, general
and administrative expenses in the Company’s Consolidated Statement of Operations for the year
ended September 24, 2010. The Company’s ADT Worldwide segment and Corporate and Other
recorded $32 million and $3 million, respectively, of acquisition and integration costs for the year
ended September 24, 2010. In addition, the Company’s ADT Worldwide segment recorded $14 million
of restructuring expenses, which have been recorded within restructuring, asset impairments and
divestiture charges, net in the Company’s Consolidated Statement of Operations for the year ended
September 24, 2010.
Supplemental Pro Forma Financial Information (unaudited)
The supplemental pro forma financial information for the years ended September 24, 2010 and
September 25, 2009 is as follows ($ in millions):
For the Year Ended For the Year Ended
September 24, 2010 September 25, 2009
Net revenue ................................. $17,367 $17,415
Income from continuing operations attributable to Tyco
common shareholders ......................... 1,149 (1,845)
Income from continuing operations per share:
Basic earnings (loss) per share attributable to Tyco
common shareholders ......................... $ 2.21 $ (3.63)
Diluted earnings (loss) per share attributable to Tyco
common shareholders ......................... $ 2.20 $ (3.63)
The supplemental pro forma financial information is based on the historical financial information
for Tyco and Broadview Security. The supplemental pro forma financial information for the period
98 2010 Financials