ADT 2010 Annual Report Download - page 92

Customers
ADT Worldwide sells to residential, commercial, educational, governmental and industrial
customers. Our residential customers typically include owners of single-family homes or renters in
multi-family apartment complexes. Our commercial customers include, among others, retail businesses,
financial institutions, commercial/industrial facilities and health care facilities. Our government
customers include federal, state and local governments, defense installations, schools and mass
transportation providers. In addition to advertising, direct mailings and the internet, we market our
electronic security systems and services to these customers through a direct sales force and, with respect
to certain residential customers, through an authorized dealer network. A separate sales force services
large commercial and governmental customers and focuses on key vertical markets such as retail and
banking.
Competition
The electronic security services business is highly competitive and fragmented with a number of
major firms and thousands of smaller regional and local companies. Competition is based primarily on
price in relation to quality of service. Rather than compete purely on price, we emphasize the quality
of our electronic security service, the reputation of our brands and our knowledge of our customers’
security needs. For large commercial, educational, governmental and industrial customers the
comprehensive national and/or global coverage offered by ADT Worldwide can also provide a
competitive advantage. We also have significantly expanded our systems integration capabilities, which
allow ADT Worldwide to offer comprehensive solutions to customers that fully integrate security and
fire offerings into comprehensive IT networks, business operations and management tools, and process
automation and control systems.
Flow Control
Our Flow Control segment designs, manufactures, sells and services valves, pipes, fittings, valve
automation and heat tracing products for general process, energy and mining markets as well as the
water and wastewater market. We believe we are the world’s leading manufacturer of flow control
products. With 2010 net revenue of $3.4 billion, our Flow Control segment comprises 20% of our
consolidated net revenue. In 2009 and 2008, net revenue totaled $3.5 billion, or 21%, of our
consolidated net revenue and $3.9 billion, or 20%, of our consolidated net revenue, respectively. Flow
Control is a global business with 30% of its sales in Europe, Middle East and Africa (‘‘EMEA’’), 29%
from the Americas, 26% from the Pacific region and 15% from Asia. During the third quarter of 2010,
our Board of Directors approved a plan to sell our water business in Europe. This business met the
held for sale and discontinued operations criteria and has been included in discontinued operations for
all periods presented. The sale of this business closed on September 30, 2010.
Services and Products
Flow Control designs, manufactures and services a wide variety of valves, actuators, controls, pipes,
fittings and heat tracing products. Valve products include a broad range of industrial valves, including
on-off valves, safety relief valves and other specialty valves. Actuation products include pneumatic,
hydraulic and electric actuators. Control products include limit switches, solenoid valves, valve
positioners, network systems and accessories. For the water market, Flow Control offers a wide variety
of pipes and valves, for water transmission applications. Flow Control is also a global provider of heat
tracing services and products. In addition to these core products, Flow Control makes a variety of
specialty products for environmental (emissions monitoring, water flow and quality monitoring, dust
filter cleaning systems), instrumentation (manifolds, enclosures, isolation valves) and other applications.
We manufacture these products in facilities located throughout the world.
4 2010 Financials