ADT 2011 Annual Report Download - page 220

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
10. Goodwill and Intangible Assets (Continued)
Acquisitions/
As of Purchase As of
September 24, Accounting Currency September 30,
2010 Adjustments Divestitures Translation 2011
Tyco Security Solutions
Gross Goodwill ................. $ 6,799 $133 $ (1) $(18) $ 6,913
Impairments ................... (1,332) — — — (1,332)
Carrying Amount of Goodwill ...... 5,467 133 (1) (18) 5,581
Tyco Fire Protection
Gross Goodwill ................. 2,633 45 (4) 3 2,677
Impairments ................... (429) — — — (429)
Carrying Amount of Goodwill ...... 2,204 45 (4) 3 2,248
Tyco Flow Control
Gross Goodwill ................. 1,906 253 (16) 27 2,170
Impairments ................... — — — — —
Carrying Amount of Goodwill ...... 1,906 253 (16) 27 2,170
Electrical and Metal Products
Gross Goodwill ................. 935 — (935) — —
Impairments ................... (935) — 935 — —
Carrying Amount of Goodwill ...... — — — — —
TOTAL
Gross Goodwill ................. 12,273 431 (956) 12 11,760
Impairments ................... (2,696) — 935 — (1,761)
Carrying Amount of Goodwill ...... $ 9,577 $431 $ (21) $ 12 $ 9,999
Fiscal 2009 Goodwill Impairment
The Company began to experience a decline in revenue during the first quarter of 2009 in its Tyco
Security Solutions and Tyco Fire Protection segments as a result of a slowdown in the commercial
markets including the retailer end market as well as a decline in sales volume at its former Electrical
and Metal Products segment due to the slowdown in the non-residential construction market. Although
the Company considered and concluded that these factors did not constitute triggering events during
the first quarter of 2009, the continued existence of these conditions during the second quarter of 2009,
along with downward revisions to forecast results, restructuring actions and weaker industry outlooks,
caused the Company to conclude that sufficient indicators of impairment existed for certain reporting
units in the above mentioned businesses. The Company determined that these events and changes in
circumstances constituted triggering events for the following six reporting units: Europe, Middle East
and Africa (‘‘EMEA’’) Security reporting units, Access Control and Video Systems (‘‘ACVS’’), and
Sensormatic Retail Solutions (‘‘SRS’’) within the Tyco Security Solutions segment. EMEA Fire
reporting units and Life Safety within the Tyco Fire Protection segment and Electrical and Metal
Products reporting unit within the Electrical and Metal Products segment. As a result of the triggering
events, the Company assessed the recoverability of each of the reporting unit’s long-lived assets and
2011 Financials 117