Tyco International LtdEssay Preview: Tyco International LtdReport this essayIntroduction:Tyco International Ltd. is a diversified, global company that provides vital products and services to customers in more than 60 countries. With more than 100,000 employees worldwide, Tyco is a leading provider of electronic security products and services, fire protection and detection products and services, and valves and controls. It operates in five segments: ADT Worldwide, Flow Control, Fire Protection Services, Electrical and Metal Products, and Safety Products.
Background:Tyco Laboratories was founded in 1960 to perform experimental research work for the US government. Tyco became public in 1964 and it quickly expanded mainly by acquisition to exploit the commercial applications of its work. By the end of 1970s, Tyco had a larger and more diverse corporation with sales topping $500 million and a net worth of nearly $140 million. Following an aggressive acquisition period through the 1970s, Tyco management focused the early 1980s on organizing its newly acquired subsidiaries. Tyco divided the company into three business segments (Fire Protection, Electronics, and Packaging), and implemented strategies to achieve significant market share in each of Tycos product lines. With further acquisition on in the later part of the decade, Tyco again reorganized its subsidiaries into four segments: Electrical and Electronic Components, Healthcare and Specialty Products, Fire and Security Services and Flow Control.
The Business
Tyco is not a company. Tyco is a trade association of manufacturers of automotive products and equipment, one of the only major trading houses in the world. Its name comes from our business, Tyco Laboratories.
Tyco has over 20,000 patents licensed by the United States Patent & Trademark Office (USPTO). For the past five years, we have awarded patents to over 70 different countries. If you are interested in Tyco’s patents on automotive, automotive components, electrical, or related products and equipment, please click here: www.TycoLabs.com.
We have also licensed intellectual property of most important companies including Tesla Motors, Ford Motor Company, GE, Caterpillar Co., and others.
The Tyco Industry
As the only independent company devoted to manufacturing industrial products and services, the Tyco Industry specializes in the manufacture and distribution of automotive products, a process that includes the manufacture and transmission, transmission, assembly, and parts industries.
We are responsible for the manufacture and distribution of a wide variety of automotive products for both industrial and professional use. Tyco is dedicated to following this lead.
Over the past three years, we have acquired hundreds of patents to support the manufacture range and delivery of automotive products. Over the past 5 years we have licensed over 25,000 patents to support manufacturing of a wide variety of industrial and professional applications. Many of these applications are based on the manufacturing concepts and use of automobiles. Tyco is a reliable manufacturer of motor parts from manufacturers such as Ford, General Motors, GM, Chrysler, and Toyota. We have developed a high level of understanding of the automotive industry and provide comprehensive knowledge of the product lines of vehicles. We maintain high standards of quality for all our products – from our proprietary auto parts design, testing, and testing for all manufacturers to our automotive customer service and customer support programs. We are responsible for supporting the entire product line development process of all Tyco products including the components development, parts, design, design specifications, construction, and assembly of new components.
The Business is the Manufacturing Process (Manufacturing Process Model)
We are responsible for the manufacture of all Tyco products, as well as the manufacturing of parts and the transmission, transmission, and equipment components. The key element of Tyco’s manufacturing process is the manufacturing of parts directly for the automotive products in our product line. There is no need for a particular manufacturing process design to be included. Each manufacturing process is distinct and should not be ignored. Tyco engineers have an analytical process of examining the engineering data and analyzing the results and design strategies. Through this process, we identify product requirements and performance requirements and formulate design plans in advance to meet them and to ensure delivery.
Manufacturing Technology
Our manufacturing process encompasses many major stages for various parts to be produced, including electronics, parts to be manufactured by Tyco components, components and parts assembly, components and parts assembly, components manufacturing to be performed by Tyco, parts assembly, manufacturing processes for vehicles and engines, and the manufacturing system production for Tyco vehicles.
Tyco manufactures the parts directly derived from the manufacturing of our vehicle lines, including the base parts, the base bodywork, suspension, body designs, equipment installation, and the vehicle assembly process. These components include the assembly of a chassis, suspension, windshield, brake system assembly, and all parts of the suspension, all parts needed for the vehicle line to be produced, as well as the base, parts needed for the chassis to be fully assembled, the vehicle parts to be fully assembly-ready, and parts assembly, components parts assembly, parts assembly and parts assembly to be received via fax or mailing, as well as the parts required for the wheels assembly to be attached, as well as parts assembly, parts assembly, parts assembly in
During 1990s company carried on its aggressive nature of acquisition by acquiring (by some accounts) over 1000 other companies between 1991 and 2001. In 1992 Kozlowski became CEO of the company. Kozlowski joined Tyco in 1975 and was appointed to Tycos board in 1987. From 1993 to 1996, Kozlowski acquired 65 companies for Tyco, and Tycos stock rose 30 percent each year during that period. By 1992, its revenue reached almost $3.1 billion. Tyco was added to the Standard & Poors S&P 500 Composite Index, which consists of the 500 publicly traded companies in the United States with the largest market capitalization.
Tycos aggressive acquisition strategy continued into the early 2000s, with the purchases of General Surgical Innovations, Siemens Electrochemical Components, AFC Cable and Praegitzer. The additions gave Tyco an ending fiscal 2000 year revenue exceeding $28 billion, near $2 billion coming from the sale by a subsidiary of its common shares. On March 2001, Tyco announces $9.2 billion cash and stock deal to purchase the CIT Group, a commercial finance company. Tyco director Frank Walsh helps arrange the deal. In early 2002, Tyco shares drop sharply one day after the company filed a proxy report with the Securities and Exchange Commission disclosing that Walsh got a $10 million fee on the CIT Group deal, and that another $10 million went to a charity where he was a director.
Tycos improper financial practices:Tycos Dennis Kozlowski, the former chief executive, and chief financial officer, Mark H. Swartz, were convicted of defrauded shareholders of more than $400 million. Between 1996 and 2002 Tyco violated the federal securities laws by using many improper accounting practices related to some of the many acquisitions that Tyco was engaged in during that time, and a scheme involving transactions with no economic substance to overstate its reported financial results by at least one billion dollars. Tycos improper acquisition accounting included: undervaluing acquired assets, overvaluing acquired liabilities, misusing accounting rules concerning the establishment and utilization of purchase accounting reserves (Tully, 2004). For example, in 1997 Tyco merged with ADT based in Bermuda to escape paying taxes. Kozlowski structured the deal as a reverse takeover, with ADT acquiring Tyco. Tycos head-quarters–and its overseas profits–moved to Bermuda, saving the company between $400 million and $800 million annually in U.S. income taxes. That same year Kozlowski established another lavish corporate headquarters in Boca Raton.
Next, in late 1999 rumors began circulating that Tyco had inflated its growth and overstated the earnings of some of its slow-growing businesses with unorthodox accounting. Its market value fell 17 percent. Kozlowski denied the charges, and an investigation by the U.S. Securities and Exchange Commission (SEC) cleared the company in 2000. However, Tycos account books were filled with footnotes about thousands of offshore subsidiaries, scaring many shareholders. Tycos stock lost half of its value. Although profits and sales remained high, the stock did not fully recover. In January 2002 New York State banking regulators notified the Manhattan district attorney of a suspicious wire transfer of nearly $4 million from a Tyco bank account to a New York art dealer, who then moved the money to an account in the Bahamas. Tyco also was under investigation by the U.S. Treasury Department for tax evasion and money laundering.
At a January 22, 2002, shareholders meeting, Kozlowski announced that, to simplify accounting, he was going to divide Tyco into five pieces and sell off businesses, reducing the companys size by about one-half (Tyco International Ltd., 2010). In February 2002 Tyco filings revealed that Kozlowski and his chief financial officer, Mark Swartz, while publicly declaring that they almost never sold Tyco shares, had actually sold a combined total of more than $500 million in stock back to the company since 1999. They were accused of falsely inflating Tycos stock before selling. Kozlowski alone made $280 million by selling 5.3 million shares of Tyco stock. Tyco also revealed that it had made about 700 acquisitions at a price of $8 billion over the past three years, without informing shareholders. In April 2002 Kozlowski announced that he would not break up Tyco, thereby destroying any remaining credibility. Between January and June 2002 Tycos share price fell 80 percent. The rating on the companys $27 billion debt was downgraded. Kozlowski resigned from Tyco International in June 2002.
Next, Tyco improperly established and used various kinds of reserves to make adjustments at the end of reporting periods to enhance and smooth its publicly reported results and to meet earnings forecasts. In addition, during that time Tyco failed to disclose in its proxy statements and annual reports certain executive compensation, executive indebtedness, and related party transactions of its former senior management. Tyco also incorrectly accounted for certain executive bonuses it paid in its fiscal years 2000 and 2001, thereby excluding from its operating expenses the costs associated with those bonuses. Finally, Tyco violated the antibribery provisions of the Foreign Corrupt Practices