ADT 2013 Annual Report Download - page 142
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FORM 10-K
Acquisition and Integration Related Costs
During fiscal year 2013, the Company incurred $2 million of costs directly related to the acquisition of
Devcon Security, which are included within selling, general and administrative expenses in the Consolidated and
Combined Statement of Operations. Additionally, during fiscal years 2012 and 2011, the Company incurred $14
million and $28 million, respectively, of costs related to the integration of Broadview Security, which was
acquired in fiscal year 2010. A summary of the integration related costs and the line item presentation of these
amounts in the Company’s Consolidated and Combined Statements of Operations is as follows ($ in millions):
2012 2011
Cost of revenue ......................................... $— $ 2
Selling, general and administrative expenses .................. 14 26
Total integration related costs .......................... $ 14 $28
3. Property and Equipment
Property and equipment consisted of the following ($ in millions):
September 27,
2013
September 28,
2012
Land ............................................. $ 9 $ 9
Buildings and leasehold improvements .................. 80 76
Machinery and equipment ............................ 389 369
Property under capital leases(1) ......................... 41 43
Construction in progress ............................. 29 34
Accumulated depreciation(2) ........................... (313) (314)
Property and equipment, net ...................... $235 $217
(1) Property under capital leases consists primarily of buildings.
(2) Accumulated amortization of capital lease assets was $25 million as of both September 27, 2013 and
September 28, 2012.
4. Goodwill and Other Intangible Assets
Goodwill
On the first day of the fiscal fourth quarter of 2013, the Company performed a qualitative impairment
assessment for goodwill and concluded that it is not more likely than not that the fair value of the reporting unit
is less than its carrying amount and therefore goodwill was not impaired. Additionally, there were no goodwill
impairments as a result of performing the Company’s annual impairment tests for fiscal years 2012 and 2011.
The changes in the carrying amount of goodwill for the years ended September 27, 2013 and September 28,
2012 are as follows ($ in millions):
Balance as of September 28, 2012 ............................... $3,400
Acquisitions ................................................ 80
Currency translation .......................................... (4)
Balance as of September 27, 2013 ............................... $3,476
Balance as of September 30, 2011 ............................... $3,395
Currency translation .......................................... 5
Balance as of September 28, 2012 ............................... $3,400
78