ADT 2011 Annual Report Download - page 139

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations
The following discussion and analysis of the Company’s financial condition and results of
operations should be read together with the Selected Financial Data and our Consolidated Financial
Statements and the related notes included elsewhere in this Annual Report. This discussion and
analysis contains forward-looking statements that involve risks, uncertainties and assumptions. The
Company’s actual results may differ materially from those anticipated in these forward-looking
statements as a result of many factors, including but not limited to those under the headings ‘‘Risk
Factors’’ and ‘‘Forward-Looking Information.’’
Introduction
The Consolidated Financial Statements include the consolidated results of Tyco International Ltd.,
a company organized under the laws of Switzerland, and its subsidiaries (hereinafter collectively
referred to as ‘‘we’’, the ‘‘Company’’ or ‘‘Tyco’’). The financial statements have been prepared in
United States dollars (‘‘USD’’), in accordance with accounting principles generally accepted in the
United States (‘‘GAAP’’).
During the first quarter of fiscal 2011, we realigned our Safety Products segment between our
ADT Worldwide and Fire Protection segments to create two new segments: Tyco Security Solutions and
Tyco Fire Protection. Tyco Security Solutions consists of the former ADT Worldwide segment as well as
the portion of the former Safety Products segment that manufactures security products including
intrusion, security, access control and video management systems. Tyco Fire Protection consists of the
former Fire Protection Services segment as well as a number of businesses from the former Safety
Products segment including the fire suppression, fire detection and life safety products businesses. In
addition, various businesses were realigned between Tyco Security Solutions and Tyco Fire Protection.
As a result of this realignment, as well as the sale of a majority interest in our Electrical and
Metal Products business further described below, we began operating in the following business
segments:
•Tyco Security Solutions designs, sells, installs, services and monitors electronic security,
productivity and lifestyle enhancement systems for residential, commercial, industrial and
governmental customers. In addition, Tyco Security Solutions designs, manufactures and sells
security products including intrusion, security, access control, electronic article surveillance and
video management systems.
•Tyco Fire Protection designs, manufactures, sells, installs and services fire detection and fire
suppression systems and building and life safety products for commercial, industrial and
governmental customers.
•Tyco Flow Control 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 markets.
We also provide general corporate services to our segments and these costs are reported as
Corporate and Other.
Overview
Net revenue for the year ended September 30, 2011 increased by $339 million, or 2.0%, to $17.4
billion as compared to the year ended September 24, 2010. Net revenue increased in fiscal 2011 despite
the sale of our majority interest in the Electrical and Metal Products business, which contributed
$1.4 billion of revenue during the year ended September 24, 2010 and $347 million during the year
36 2011 Financials