ADT 2015 Annual Report Download - page 75

FORM 10-K
PART I
Item 1. Business.
Overview
The ADT Corporation (hereinafter referred to as “we”, the “Company” or “ADT”) is a leading provider of
monitored security, interactive home and business automation and related monitoring services in the United
States and Canada. ADT has one of the most trusted and well-known brands in the monitored security industry
today. We currently serve approximately 6.6 million residential and business customers, making us the largest
company of our kind in both the United States and Canada. We deliver an integrated customer experience by
maintaining the industry’s largest sales, installation and service field force as well as a monitoring network, all
backed by the support of approximately 17,100 employees. Our broad and pioneering set of products and
services, including interactive home and business solutions and home health services, meet a range of customer
needs for today’s active and increasingly mobile lifestyles. We believe we are well positioned to continue to lead
the large and growing residential and business security market, and that our demonstrated expertise and
established footprint will help us to maintain a leadership position in the evolving market for home automation,
home health monitoring, lifestyle and business productivity solutions.
We originated in 1874 as the American District Telegraph Company, a consortium of 57 telegraph
operators. During the early part of the 20th century, we began offering fire and burglar alarm solutions. Over the
years, we engaged in a variety of communications related activities and by 1987 had become one of the leading
electronic security services providers. In 1997, we were acquired by Tyco International Ltd. (“Tyco”). In 2010,
we acquired our largest competitor, Broadview Security.
The Company was incorporated in Delaware in 2012 as a wholly-owned subsidiary of Tyco. Effective on
September 28, 2012 (the “Distribution Date”), Tyco distributed to its public stockholders the Company’s
common stock (the “Separation”), and the Company became an independent public company. In connection with
the Separation, Tyco transferred the equity interests of the entities that held all of the assets and liabilities of its
residential and small business security business in the United States and Canada to the Company.
We conduct business through our operating entities. During the fourth quarter of fiscal year 2015, the
Company finalized its reporting structure following the acquisition of Reliance Protectron Inc. (“Protectron”),
which we acquired during the fourth quarter of fiscal year 2014. See Note 2 to the Consolidated Financial
Statements for details about this acquisition. In connection with this reporting structure finalization, the manner
in which the Chief Executive Officer, who is the chief operating decision maker (“CODM”), evaluates
performance and makes decisions about how to allocate resources changed, resulting in the reorganization of the
Company’s operating segments. We now have two reportable segments, which are the Company’s operating
segments. Operating results are reported based on the following two segments:
•United States: Includes sales, installation and monitoring for residential, business, and health
customers in the United States and Puerto Rico, as well as corporate expenses and other operating costs
associated with support functions in the U.S.
•Canada: Includes sales, installation and monitoring for residential, business, and health customers in
Canada as well as operating expenses associated with certain support functions in Canada.
Prior to the fourth quarter of fiscal year 2015, we reported financial and operating information in one
segment. Where applicable, prior period amounts reported herein are based on the new segment structure. See
Note 1 to our Consolidated Financial Statements for additional information.
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