ADT 2010 Annual Report Download - page 187

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. Acquisitions (Continued)
ended September 24, 2010 utilized Broadview Security’s historical financial information for its fiscal
fourth quarter ended December 31, 2009 and the pre-acquisition period from January 1, 2010 through
the acquisition date. The supplemental pro forma financial information for the period ended
September 25, 2009 utilized Broadview Security’s historical financial information for its fiscal fourth
quarter ended December 31, 2008 and the nine months ended September 30, 2009. The supplemental
pro forma financial information reflect primarily the following pro forma pre-tax adjustments:
• Elimination of Broadview Security historical intangible asset amortization and property, plant
and equipment depreciation expense;
• Elimination of Broadview Security historical deferred acquisition costs amortization;
• Elimination of Broadview Security historical deferred revenue amortization;
• Additional amortization and depreciation expense related to the fair value of identifiable
intangible assets and property, plant and equipment acquired;
• Reduction of interest income on cash used to fund the acquisition and Tyco dividends assumed
to be paid to Broadview Security shareholders; and
• All of the above pro forma adjustments were tax effected using a statutory tax rate of 39%
The supplemental pro forma financial information for the year ended September 24, 2010 reflects
the following non-recurring adjustments:
• Direct acquisition costs primarily relating to advisory and legal fees and integration costs; and
• Restructuring charges primarily related to employee severance and one-time benefit
arrangements
The supplemental pro forma financial information gives effect to the acquisition, but should not be
considered indicative of the results that would have occurred in the periods presented above, nor are
they indicative of future results. In addition, the supplemental pro forma financial information does not
reflect the potential realization of cost savings relating to the integration of the two companies.
Other Acquisitions
During the year ended September 24, 2010, cash paid for acquisitions included in continuing
operations (other than Broadview Security) totaled $152 million. During the year ended September 24,
2010, the Company’s Flow Control segment acquired two Brazilian valve companies, including Hiter
Industria e Comercio de Controle Termo-Hidraulico Ltda (‘‘Hiter’’), a valve manufacturer which serves
a variety of industries including the oil and gas, chemical and petrochemical markets. Net cash paid for
the Brazilian valve companies totaled $104 million. The Company’s Electrical and Metal Products
segment acquired certain assets of a business for $39 million and its Safety Products segment acquired
a business for $9 million during 2010.
During the year ended September 25, 2009, cash paid for acquisitions included in continuing
operations totaled $48 million, net of cash acquired of $2 million, respectively, which primarily related
to the acquisition of Vue Technology, Inc., a provider of radio frequency identification (RFID)
technology, for $43 million by the Company’s Safety Products segment.
2010 Financials 99