ADT 2012 Annual Report Download - page 166
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The supplemental pro forma financial information is based on the historical financial information for the
Company and BHS. The supplemental pro forma financial information for the period ended September 24, 2010
utilized BHS’ historical financial information for its fiscal fourth quarter ended December 31, 2009 and the
pre-acquisition period from January 1, 2010 through the acquisition date. The supplemental pro forma financial
information reflects primarily the following pro forma pre-tax adjustments:
• Elimination of BHS historical intangible asset amortization and property and equipment depreciation
expense;
• Elimination of BHS historical deferred acquisition costs amortization;
• Elimination of BHS historical deferred revenue amortization;
• Additional amortization and depreciation expense related to the fair value of identifiable intangible
assets and property and equipment acquired; and
• All of the above pro forma adjustments were tax effected using a statutory tax rate of 39%
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.
Acquisition and Integration Related Costs
During the year ended September 24, 2010, the Company incurred approximately $17 million of costs
directly related to the acquisition of Broadview Security and recorded $14 million of restructuring expenses in
conjunction with the acquisition of Broadview Security. These costs are reflected in selling, general and
administrative expenses in the Company’s Consolidated and Combined Statement of Operations for the year
ended September 24, 2010
In addition, during the years ended September 28, 2012, September 30, 2011 and September 24, 2010, the
Company incurred costs related to the integration of Broadview Security. A summary of the integration related
costs and the line item presentation of these amounts in the Company’s Consolidated and Combined Statement of
Operations is as follows ($ in millions):
2012 2011 2010
Cost of revenue .................................. $— $ 2 $—
Selling, general and administrative expenses ........... 14 26 18
Total integration related costs ................... $ 14 $28 $ 18
74