ADT 2010 Annual Report Download - page 142

During 2010, 2009 and 2008 we paid approximately $160 million (inclusive of $2 million relating to
the French security business being classified as held for sale), $152 million and $186 million,
respectively, in cash related to restructuring activities. See Note 3 to our Consolidated Financial
Statements for further information regarding our restructuring activities.
Income taxes paid, net of refunds, related to continuing operations were $255 million, $281 million
and $489 million in 2010, 2009 and 2008, respectively.
Cash flow from investing activities
We made capital expenditures of $718 million, $702 million and $722 million during 2010, 2009
and 2008. The level of capital expenditures in fiscal year 2011 is expected to exceed the spending levels
in fiscal year 2010 and is also expected to exceed depreciation.
During 2010, 2009 and 2008, we paid approximately $559 million, $543 million and $376 million of
cash, respectively, to acquire approximately 501,000, 512,000 and 370,000 customer contracts for
electronic security services within our ADT Worldwide segment.
During 2010, net cash paid for Broadview Security totaled $448 million by the Company’s ADT
Worldwide segment. In addition to the net cash paid to acquire Broadview Security, we issued
approximately $1.4 billion of common shares as consideration. We paid cash for other acquisitions
included in continuing operations totaling $152 million, net of cash acquired of $1 million. Additionally,
our Flow Control segment acquired two Brazilian valve companies, including Hiter Industria e
Comercio de Controle Termo-Hidraulico Ltda (‘‘Hiter’’), a valve manufacturer which serves a variety of
industries including the oil and gas, chemical and petrochemical markets. Net cash paid for the
Brazilian valve companies totaled $104 million. Our Electrical and Metal Products segment acquired
certain assets of a business for $39 million and our Safety Products segment acquired a business for
$9 million.
During 2010, we received cash proceeds, net of cash retained in the amount of $21 million for
divestitures included in continuing operations primarily within our Safety Products, Flow Control, and
ADT Worldwide segments.
During the second quarter of 2008, Tyco released $2,960 million of funds placed in escrow during
the third quarter of 2007 as well as $60 million of interest earned on those funds for the benefit of the
class stipulated in the court’s final order related to the class action settlement of claims alleging
securities fraud for actions taken by former senior management.
Cash flow from financing activities
On May 5, 2010, Tyco International Finance, S.A. (‘‘TIFSA’’), our finance subsidiary, issued
$500 million aggregate principal amount of 3.375% notes due on October 15, 2015, which are fully and
unconditionally guaranteed by us, and received net cash proceeds of approximately $495 million.
On May 28, 2010, we used the net proceeds of the aforementioned offering and additional cash on
hand to redeem notes which aggregated $878 million in principal amount. The notes that were
redeemed were TIFSA’s 6.375% notes due 2011, its 7% notes due 2028 and its 6.875% notes due 2029.
On October 5, 2009, TIFSA issued $500 million aggregate principal amount of 4.125% notes due
on October 15, 2014, which are fully and unconditionally guaranteed by us, and received net cash
proceeds of approximately $495 million.
Net repayments of short-term debt were approximately $243 million in 2010, which primarily
related to the extinguishment of $200 million of outstanding commercial paper during the first quarter
of 2010. As of September 24, 2010, there was no commercial paper outstanding. Additionally,
54 2010 Financials