ADT 2011 Annual Report Download - page 108

Tyco Fire Protection
Our Tyco Fire Protection segment designs, manufactures, sells, installs and services fire detection
and fire suppression systems and building and life safety products for commercial enterprises,
governmental entities, airports, commercial shipping companies, transportation systems, healthcare
facility operators, petrochemical facilities and homeowners. We believe we are one of the largest
providers of these systems and services. With 2011 net revenue of $4.8 billion, our Tyco Fire Protection
segment comprises 28% of our consolidated net revenue. In 2010 and 2009, net revenue totaled
$4.5 billion, or 27%, of our consolidated net revenue and $4.6 billion, or 27%, of our consolidated net
revenue, respectively.
Services and Products
Tyco Fire Protection designs, manufactures, sells, installs and services fire alarm and fire detection
systems, automatic fire sprinkler systems and special hazard suppression systems. Tyco Fire Protection
operates under various leading trade names, including SimplexGrinnell, Wormald, Dong Bang, Zettler,
Ansul, Grinnell, Total Walther and Tyco.
Tyco Fire Protection offers a wide range of fire alarm and fire detection systems. These alarm and
detection systems include fire alarm control panels, advanced fire alarm monitoring systems, smoke,
heat and carbon monoxide detectors and voice evacuation systems. Tyco Fire Protection also offers a
wide range of water-based sprinkler systems. In addition, Tyco Fire Protection provides custom
designed special hazard suppression systems, which incorporate specialized extinguishing agents such as
foams, dry chemicals and gases. These systems are often especially suited to fire suppression in certain
manufacturing, power generation, petrochemical, offshore oil exploration, transportation, data
processing, telecommunications, commercial food preparation, mining and marine applications.
Tyco Fire Protection installs fire detection and fire suppression systems in both new and existing
buildings. These systems typically are purchased by owners, construction engineers and electrical
contractors as well as mechanical or general contractors. In recent years, retrofitting of existing
buildings has grown as a result of legislation mandating the installation of fire detection and fire
suppression systems, especially in hotels, healthcare facilities and educational establishments. In
September 2008, the International Residential Code Council, a non-profit association that develops
model codes that are the predominant building and fire safety regulations used by state and local
jurisdictions in the United States, adopted a proposal advanced by firefighters and other life-safety
advocates to require sprinkler systems in new one and two family dwellings effective in January 2011.
This national code is not binding on state and local jurisdictions and must be adopted locally before it
becomes mandatory for new homes being built in these areas. The timing of adoption, if at all, will vary
by jurisdiction. Tyco Fire Protection also continues to focus on system maintenance and inspection and
other services, which have become increasingly significant parts of its business.
Tyco Fire Protection also manufactures life safety products, including self-contained breathing
apparatus designed for firefighter, industrial and military use, supplied air respirators, air-purifying
respirators, thermal imaging cameras, gas detection equipment and gas masks. Tyco Fire Protection’s
breathing apparatus are used by the military forces of several countries and many U.S. firefighters rely
on the Scott Air-Pak brand of self-contained breathing apparatus.
Customers
Tyco Fire Protection’s customers include commercial enterprises, governmental entities, airports,
commercial shipping companies, transportation systems, healthcare facility operators, petrochemical
facilities and homeowners. We market our fire detection and fire suppression systems to the majority of
these customers through a direct sales force. Customers for our fire sprinkler, fire detection and fire
suppression products include distributors, commercial builders and contractors that install and service
2011 Financials 5