ADT 2011 Annual Report Download - page 198

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. Divestitures (Continued)
proceeds, net of $7 million of cash divested on sale, and a pre-tax gain of $172 million was recorded,
which was largely exempt from tax. The gain was recorded in income from discontinued operations, net
of income taxes in the Company’s Consolidated Statements of Operations.
Fiscal 2010
During the third quarter of 2010, the Company approved a plan to sell its European water
business, which subsequently closed on September 30, 2010 as discussed in fiscal 2011 above. During
the year ended September 24, 2010, the business met the held for sale and discontinued operations
criteria and was included in discontinued operations for all periods presented.
Fiscal 2009
In July 2008, the Company substantially completed the sale of its Infrastructure Services business,
which met the criteria to be presented as discontinued operations. In order to complete the sale of the
remaining Infrastructure Services businesses, Earth Tech Brasil Ltda. (‘‘ET Brasil’’), the Earth Tech UK
businesses and certain assets in China, the Company was required to obtain consents and approvals to
transfer the legal ownership of the businesses and assets. By the fourth quarter of 2009, the Company
received all the necessary consents and approvals to transfer the legal ownership of the businesses and
assets and received cash proceeds of $61 million. As a result of the fiscal 2009 dispositions, a net
pre-tax gain of $33 million was recorded in income from discontinued operations, net of income taxes
in the Company’s Consolidated Statements of Operations for the year ended September 25, 2009.
Net revenue, pre-tax (loss) income from discontinued operations, pre-tax income (loss) on sale of
discontinued operations, income tax benefit (expense) and income from discontinued operations, net of
income taxes are as follows ($ millions):
2011 2010 2009
Net revenue ...................................... $ 3 $326 $358
Pre-tax (loss) income from discontinued operations ......... $ (5) $ 28 $ 23
Pre-tax income (loss) on sale of discontinued operations ..... 170 (5) 33
Income tax benefit (expense) ......................... 3 (16) (9)
Income from discontinued operations, net of income taxes .... $168 $ 7 $ 47
2011 Financials 95