ADT 2011 Annual Report Download - page 225

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
11. Related Party Transactions (Continued)
Messrs. Kozlowski and Swartz, are not subject to the liability sharing provisions of the Separation and
Distribution Agreement. Separately, Mr. Walsh is pursuing a New York state court claim against the
Company asserting his entitlement to indemnification. This action is subject to the liability sharing
provisions of the Separation and Distribution Agreement.
During 2011, 2010 and 2009, the Company engaged in commercial transactions in the normal
course of business with companies where the Company’s Directors were employed and served as
officers. Purchases from these companies during each year aggregated less than 1 percent of
consolidated net revenue.
12. Debt
Debt as of September 30, 2011 and September 24, 2010 is as follows ($ in millions):
September 30, September 24,
2011 2010
6.75% public notes due 2011(1) .................... $ — $ 516
6.0% public notes due 2013 ...................... 655 655
4.125% public notes due 2014 .................... 499 499
3.375% public notes due 2015 .................... 499 498
3.75% public notes due 2018 ..................... 249 —
8.5% public notes due 2019 ...................... 750 750
7.0% public notes due 2019 ...................... 431 432
6.875% public notes due 2021 .................... 715 715
4.625% public notes due 2023 .................... 248 —
Other(1)(2) ................................... 102 123
Total debt ................................... 4,148 4,188
Less current portion ........................... 2 536
Long-term debt .............................. $4,146 $3,652
(1) 6.75% public notes due 2011, plus $20 million of the amount shown as other, comprise
the current portion of the Company’s total debt as of September 24, 2010.
(2) $2 million of the amount shown as other, comprise the current portion of the Company’s
total debt as of September 30, 2011.
Fair Value
The carrying amount of Tyco’s debt subject to the fair value disclosure requirements as of
September 30, 2011 and September 24, 2010 was $4,046 million and $4,065 million, respectively. The
Company has determined the fair value of such debt to be $4,689 million and $4,730 million as of
September 30, 2011 and September 24, 2010, respectively. The Company utilizes various valuation
methodologies to determine the fair value of its debt, which is primarily dependent on the type of
market in which the Company’s debt is traded. When available, the Company uses quoted market
prices to determine the fair value of its debt that is traded in active markets. As of September 30, 2011
122 2011 Financials