ADT 2011 Annual Report Download - page 203

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
4. Restructuring and Asset Impairment Charges, Net (Continued)
The rollforward of the reserves from September 24, 2010 to September 30, 2011 is as follows ($ in
millions):
Balance as of September 24, 2010 ................................ $135
Charges ................................................... 31
Reversals .................................................. (31)
Utilization ................................................. (72)
Divestitures ................................................. (13)
Currency translation .......................................... (2)
Balance as of September 30, 2011 ................................ $ 48
Restructuring reserves for businesses that have met the held for sale criteria are included in
liabilities held for sale on the Consolidated Balance Sheets and excluded from the table above. See
Note 3.
2007 and pre-2006 Programs
During fiscal 2007 and 2008, the Company launched a restructuring program across all of the
Company’s segments, including the corporate organization, to streamline some of the businesses and
reduce the operational footprint (the ‘‘2007 Program’’). The Company maintained a restructuring
reserve related to the 2007 Program of $17 million and $26 million as of September 30, 2011 and
September 24, 2010, respectively. The Company incurred $1 million of charges and utilized $10 million
of the restructuring reserve balance during the year ended September 30, 2011. In addition, the
Company continues to maintain restructuring reserves related to certain programs initiated prior to
2006. The total amount of these reserves was $14 million as of both September 30, 2011 and
September 24, 2010. The Company incurred $1 million of charges and utilized $1 million of the
restructuring reserve balance during the year ended September 30, 2011. The aggregate remaining
reserves related to the 2007 and pre-2006 programs primarily relate to facility exit costs for long-term
non-cancelable lease obligations with expiration dates that range from 2011 to 2022 primarily within the
Company’s Tyco Security Solutions segment.
Total Restructuring Reserves
As of September 30, 2011 and September 24, 2010, restructuring reserves related to all programs
were included in the Company’s Consolidated Balance Sheets as follows ($ in millions):
For the Periods Ended
September 30, 2011 September 24, 2010
Accrued and other current liabilities ......... $ 99 $124
Other liabilities ........................ 33 51
Total ................................ $132 $175
100 2011 Financials