ADT 2012 Annual Report Download - page 143

Accounting Pronouncements
See Note 1 to the Consolidated and Combined Financial Statements for information about recently adopted
and recently issued accounting pronouncements.
Cautionary Statement Regarding Forward-Looking Statements
This Report contains certain information that may constitute “forward-looking statements” within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995. While we have specifically identified
certain information as being forward-looking in the context of its presentation, we caution you that all statements
contained in this report that are not clearly historical in nature, including statements regarding business strategies,
market potential, future financial performance, the effects of the separation of ADT from Tyco and other matters,
are forward-looking. Without limiting the generality of the preceding sentence, any time we use the words
“anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “continue” and similar expressions, we
intend to clearly express that the information deals with possible future events and is forward-looking in nature.
However, the absence of these words or similar expressions does not mean that a statement is not forward-
looking.
Forward-looking information involves risks, uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied in, or reasonably inferred from, such statements. Therefore,
caution should be taken not to place undue reliance on any such forward-looking statements. Much of the
information in this report that looks towards future performance of the Company is based on various factors and
important assumptions about future events that may or may not actually occur. As a result, our operations and
financial results in the future could differ materially and substantially from those we have discussed in the
forward-looking statements included in this report. We assume no obligation (and specifically disclaim any such
obligation) to publicly update or revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
Our operations include activities in the United States and Canada. These operations expose us to a variety of
market risks, including the effects of changes in interest rates and foreign currency exchange rates. We monitor
and manage these financial exposures as an integral part of our overall risk management program. Our policies
allow for the use of specified financial instruments for hedging purposes only. Use of derivatives for speculation
purposes is prohibited.
Interest Rate Risk
We have a revolving credit facility that bears interest at a floating rate. As a result, we will be exposed to
fluctuations in interest rates to the extent of our borrowings under the revolving credit facility. Our long-term
debt currently consists of fixed-rate instruments. To help manage borrowing costs, we may from time to time
enter into interest rate swap transactions with financial institutions acting as principal counterparties. These
interest rate swap transactions have the effect of converting part of fixed-rate debt to variable rates.
Foreign Currency Risk
We have exposure to the effects of foreign currency exchange rate fluctuations on the results of our
Canadian operations. Our Canadian operations use the Canadian dollar to conduct business, but our results are
reported in U.S. dollars.
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