ADT 2010 Annual Report Download - page 204

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
10. Related Party Transactions (Continued)
ratified the payment to Mr. Walsh in the weeks immediately following the revelation of the payment to
the Board of Directors in early 2002. As a result, the Court ruled that the Company is not entitled to
damages from Mr. Walsh. The Company believes, based on the facts and the law, that this
determination by the Court is incorrect. The Company is in the process of appealing the Court’s ruling.
During 2010, 2009 and 2008, the Company engaged in commercial transactions in the normal
course of business with companies where the Company’s Directors were employed and served as
officers. Purchases from these companies during each year aggregated less than 1 percent of
consolidated net revenue.
11. Debt
Debt as of September 24, 2010 and September 25, 2009 is as follows ($ in millions):
September 24, September 25,
2010 2009
Commercial paper(2) .................................. $ — $ 200
6.75% public notes due 2011(1) .......................... 516 516
6.375% public notes due 2011 ........................... — 849
Revolving senior credit facility due 2011 ................... — —
Revolving senior credit facility due 2012 ................... — —
6.0% public notes due 2013 ............................ 655 655
4.125% public notes due 2014 ........................... 499 —
3.375% public notes due 2015 ........................... 498 —
8.5% public notes due 2019 ............................ 750 750
7.0% public notes due 2019 ............................ 432 434
6.875% public notes due 2021 ........................... 715 716
7.0% public notes due 2028 ............................ — 14
6.875% public notes due 2029 ........................... — 21
Other(1)(2) .......................................... 123 119
Total debt ......................................... 4,188 4,274
Less current portion .................................. 536 245
Long-term debt ..................................... $3,652 $4,029
(1) This instrument and $20 million of the amount shown as other, comprise the current portion of the Company’s total debt
as of September 24, 2010.
(2) Commercial paper, plus $45 million of the amount shown as other, comprise the current portion of the Company’s total
debt as of September 25, 2009.
Fair Value
The carrying amount of Tyco’s debt subject to the fair value disclosure requirements as of
September 24, 2010 and September 25, 2009 was $4,065 million and $4,155 million, respectively. The
Company has determined the fair value of such debt to be $4,730 million and $4,578 million as of
September 24, 2010 and September 25, 2009, respectively. The Company utilizes various valuation
methodologies to determine the fair value of its debt, which is primarily dependent on the type of
market in which the Company’s debt is traded. When available, the Company uses quoted market
116 2010 Financials