ADT 2011 Annual Report Download - page 199

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. Divestitures (Continued)
There were no material pending divestitures as of September 30, 2011. Balance sheet information
for material pending divestitures as of September 24, 2010 was as follows ($ in millions):
2010
Accounts receivables, net ....................................... $ 70
Inventories ................................................. 71
Prepaid expenses and other current assets ........................... 13
Property, plant and equipment, net ................................ 59
Goodwill and intangible assets, net ................................ 105
Other assets ................................................ 6
Total assets ............................................... $324
Accounts payable ............................................ 43
Accrued and other current liabilities ............................... 36
Other liabilities .............................................. 24
Total liabilities ............................................. $103
During fiscal year 2007, Tyco completed the spin-offs of its Healthcare and Electronics businesses.
The Company has used available information to develop its best estimates for certain assets and
liabilities related to the 2007 Separation. In limited instances, final determination of the balances will
be made in subsequent periods. There were $13 million and nil of adjustments recorded through
shareholders’ equity during the years ended September 30, 2011 and September 24, 2010. During the
year ended September 25, 2009, $43 million was recorded through shareholders’ equity, $9 million of
which related to a pre-Separation income tax filing in a non-U.S. jurisdiction and $34 million of other
items which reflect immaterial adjustments to shareholders’ equity which were recorded to correct the
distribution amount at the date of the 2007 Separation. Adjustments in the future for the impact of
filing final income tax returns in certain jurisdictions where those returns include a combination of
Tyco, Covidien and/or TE Connectivity legal entities and for certain amended income tax returns for
the periods prior to the 2007 Separation may be recorded to either shareholders’ equity or the
Consolidated Statement of Operations depending on the specific item giving rise to the adjustment.
Divestiture (Gains) Charges, Net
During 2011, 2010, 2009, the Company recorded a net gain of $230 million, a net gain of
$40 million, and a net loss of $15 million, respectively, in restructuring, asset impairment and
divestiture (gains) charges, net in the Company’s Consolidated Statements of Operations in connection
with the divestiture and write-down to fair value less cost to sell of certain businesses that did not meet
the criteria for discontinued operations. The net gain for the year ended September 30, 2011 includes a
gain of $248 million, net of working capital adjustments, recognized in conjunction with the sale of a
majority interest in the Company’s Electrical and Metal Products business, as discussed above. The net
gain for the year ended September 24, 2010 includes the $53 million gain recognized upon the sale of
the Company’s French security business, as discussed above.
96 2011 Financials