ADT 2011 Annual Report Download - page 209

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. Acquisitions (Continued)
The supplemental pro forma financial information for the year ended September 24, 2010 reflect
the following non-recurring adjustments:
• Direct acquisition costs primarily relating to advisory and legal fees and integration costs; and
• Restructuring charges primarily related to employee severance and one-time benefit
arrangements
The supplemental pro forma financial information gives effect to the acquisition, but should not be
considered indicative of the results that would have occurred in the periods presented above, nor are
they indicative of future results. In addition, the supplemental pro forma financial information does not
reflect the potential realization of cost savings relating to the integration of the two companies.
Fiscal 2009
Acquisitions
During the year ended September 25, 2009, cash paid for acquisitions included in continuing
operations totaled $48 million, net of cash acquired of $2 million, which primarily related to the
acquisition of Vue Technology, Inc., a provider of radio frequency identification technology, for
$43 million by the Company’s Tyco Security Solutions segment.
Acquisition and Integration Related Costs
During the year ended September 25, 2009, the Company did not incur any acquisition or
integration related costs.
ADT Account Acquisitions
During the year ended September 25, 2009, the Company paid $543 million of cash to acquire
approximately 512,000 customer contracts for electronic security services in its Tyco Security Solutions
segment.
6. Other Expense, Net
Other expense, net of $16 million in 2011, primarily relates to our share of Atkore’s net loss of
$9 million, which is accounted for under the equity method of accounting, and a decrease in the
receivables due from Covidien and TE Connectivity under the Tax Sharing Agreement of $7 million.
See Note 7.
Other expense, net of $75 million in 2010, primarily related to a charge of $87 million as a loss on
extinguishment of debt on the redemption of our 6.375% public notes due 2011, 7% notes due 2028
and 6.875% notes due 2029. See Note 12. This loss was partially offset by an $8 million gain recorded
as a result of an increase in the receivables due from Covidien and TE Connectivity under the Tax
Sharing Agreement.
Other expense, net of $7 million in 2009, primarily related to a $14 million charge recorded as a
result of a decrease in the receivables due from Covidien and TE Connectivity under the Tax Sharing
Agreement, which was partially offset by income of $5 million relating to a gain on derivative contracts
used to economically hedge the foreign currency risk related to the Swiss franc denominated dividends.
106 2011 Financials