<PAGE>   1
================================================================================


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

         (Mark One)

         [X]   Quarterly Report Pursuant to Section 13 or 15(d) of the
               Securities Exchange Act of 1934

                       FOR THE QUARTER ENDED JUNE 30, 2001

         [X]   Transition report pursuant to Section 13 or 15(d) of the
               Securities Exchange Act of 1934 For the Period From _________ to
               __________.

                         Commission File Number: 0-24900

                                INTERLOGIX, INC.
             (Exact name of Registrant as specified in its charter)

<TABLE>
<CAPTION>
                    DELAWARE                                              06-1340453
<S>                                                         <C>
(State or other jurisdiction of incorporation or            (I.R.S. employer identification number)
                  organization)
</TABLE>

              114 WEST 7TH STREET, SUITE 1300, AUSTIN, TEXAS 78701

              (Address of principal executive offices and zip code)

                                 (512) 381-2760

              (Registrant's telephone number, including area code)

  Securities registered pursuant to Section 12(b) of the Act: Common Stock, par
                              value $.01 per share

        Securities registered pursuant to Section 12(g) of the Act: None

         Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter periods as the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                                    YES X NO

         As of August 2, 2001, number of outstanding shares of the Registrant's
Common Stock was 19,535,295.


================================================================================

<PAGE>   2


TABLE OF CONTENTS

<Table>
<S>                                                                          <C>
PART I     FINANCIAL INFORMATION..............................................3

ITEM 1.    CONSOLIDATED FINANCIAL STATEMENTS

           Consolidated balance sheets........................................3

           Consolidated statements of operations..............................4

           Consolidated statement of stockholders' equity.....................5

           Consolidated statements of cash flows..............................6

           Notes to consolidated financial statements.........................7

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS...........................................13

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK........18



PART II    OTHER INFORMATION.................................................20

ITEM 1.    LEGAL PROCEEDINGS.................................................20

ITEM 2.    CHANGES IN SECURITIES AND USE OF PROCEEDS.........................20

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES...................................20

ITEM 4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS...............20

ITEM 5.    OTHER INFORMATION.................................................20

ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K..................................20

SIGNATURE  ..................................................................21
</Table>


                                      -2-
<PAGE>   3


                                INTERLOGIX, INC.

                           CONSOLIDATED BALANCE SHEETS
                              (DOLLARS IN MILLIONS)

<TABLE>
<CAPTION>
                                                                                       As of
                                                                               -----------------------
                                                                                June 30,  December 31,
                                                                                  2001       2000
                                                                               ---------- ------------
                                                                               (unaudited)
<S>                                                                            <C>        <C>
ASSETS
CURRENT ASSETS:
   Cash and cash equivalents .................................................   $   13.5  $   12.5
   Receivables, net ..........................................................      131.6     131.6
   Inventories, net ..........................................................       86.7      84.9
   Prepaids and other ........................................................       15.3      14.8
                                                                                 --------  --------
         Total current assets ................................................      247.1     243.8

PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $59.6 and
   $55.6, respectively .......................................................       54.9      50.4

OTHER ASSETS, net ............................................................        9.9       6.7

INTANGIBLES:
   Other intangible assets, net of accumulated amortization of $30.0 and
   $25.6, respectively .......................................................      133.0     136.6
   Goodwill, net of accumulated amortization of $52.9 and $48.4,
   respectively ..............................................................      190.5     195.5
                                                                                 --------  --------
         TOTAL ASSETS ........................................................   $  635.4  $  633.0
                                                                                 ========  ========

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
   Current portion of long-term debt .........................................       19.5      16.7
   Accounts payable and accrued expenses .....................................       91.2     101.8
   Accounts payable - related party ..........................................        0.1       0.2
                                                                                 --------  --------
         Total current liabilities ...........................................      110.8     118.7

LONG-TERM DEBT ...............................................................      211.0     210.6
DEFERRED INCOME TAXES ........................................................       48.2      46.0
OTHER NONCURRENT LIABILITIES .................................................       11.9      10.7
                                                                                 --------  --------
         Total liabilities ...................................................      381.9     386.0
                                                                                 --------  --------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
   Common stock, par value $.01 per share; 60,000,000 shares authorized,
     20,464,536 issued and 19,507,836 outstanding at June 30, 2001; 20,401,437
     issued and 19,444,737 outstanding at December 31, 2000 ..................        0.2       0.2
   Paid-in-capital ...........................................................      236.8     234.9
   Treasury shares, at cost, 956,700 shares ..................................      (15.3)    (15.3)
   Retained earnings .........................................................       48.7      38.8
   Accumulated other comprehensive loss ......................................      (16.9)    (11.6)
                                                                                 --------  --------
         Total stockholders' equity ..........................................      253.5     247.0
                                                                                 --------  --------
         TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ..........................   $  635.4  $  633.0
                                                                                 ========  ========
</TABLE>


See accompanying notes


                                      -3-
<PAGE>   4

                                INTERLOGIX, INC.

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                 (DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                          THREE MONTHS ENDED              SIX MONTHS ENDED
                                                     ---------------------------     ----------------------------
                                                       JUNE 30,        JULY 1,         JUNE 30,        JULY 1,
                                                         2001           2000             2001           2000
                                                     -----------     -----------      -----------     -----------
<S>                                                  <C>             <C>              <C>             <C>

REVENUES .........................................   $     155.2     $     126.9     $      314.1     $     223.9

COST OF REVENUES .................................          87.3            75.8            179.2           132.9
                                                     -----------     -----------      -----------     -----------

     Gross Profit ................................          67.9            51.1            134.9            91.0

SELLING, GENERAL AND ADMINISTRATIVE
EXPENSE ..........................................          40.1            34.7             81.9            63.5

RESEARCH AND
DEVELOPMENT EXPENSES .............................           6.4             6.2             12.7            11.0

AMORTIZATION OF
INTANGIBLES ......................................           5.7             4.7             11.5             7.1

ACQUIRED IN-PROCESS RESEARCH & DEVELOPMENT .......
                                                              --            37.8               --            37.8

RESTRUCTURING AND
OTHER CHARGES ....................................            --            10.8               --            11.1
                                                     -----------     -----------      -----------     -----------

     Operating Income (loss) .....................          15.7           (43.1)            28.8           (39.5)

OTHER (INCOME) EXPENSE:
     Interest expense, net .......................           4.3             3.5              8.9             4.7
     Other, net ..................................           0.9             0.2              1.4            (2.1)
                                                     -----------     -----------      -----------     -----------

     Income (loss) before taxes ..................          10.5           (46.8)            18.5           (42.1)

INCOME TAX PROVISION (BENEFIT) ...................           4.9            (1.3)             8.6             1.5
                                                     -----------     -----------      -----------     -----------

NET INCOME (LOSS) ................................   $       5.6     $     (45.5)     $       9.9     $     (43.6)
                                                     ===========     ===========      ===========     ===========

Net Income (Loss) per share:
   Basic .........................................   $      0.29     $     (2.53)     $      0.51     $     (2.63)
   Diluted .......................................   $      0.28     $     (2.53)     $      0.50     $     (2.63)
Weighted Average Shares Outstanding:

   Basic .........................................    19,468,457      17,988,097       19,463,457      16,571,670
   Diluted .......................................    19,838,425      17,988,097       19,760,515      16,571,670

</TABLE>

See accompanying notes


                                      -4-
<PAGE>   5

                        INTERLOGIX, INC. AND SUBSIDIARIES

                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                              (DOLLARS IN MILLIONS)

<TABLE>
<CAPTION>
                                                                                                         Accumulated
                                                                                                            Other
                                       Number of     Common      Paid-In      Treasury      Retained    Comprehensive
                                        Shares       Stock       Capital       Stock        Earnings         Loss         Total
                                      ----------   ----------   ----------   ----------    ----------   -------------- ----------
<S>                                   <C>          <C>          <C>          <C>           <C>           <C>           <C>
Balance December 31, 1999 .........   15,170,640   $      0.2   $    122.6   $    (15.3)   $     67.3    $     (7.9)   $    166.9
Comprehensive loss
     Net loss .....................           --           --           --           --         (28.5)           --         (28.5)
     Currency translation
     adjustment ...................           --           --           --           --            --          (3.7)         (3.7)
                                                                                                                       ----------
Total comprehensive loss ..........           --           --           --           --            --            --         (32.2)
                                                                                                                       ----------
Issue common stock in
connection with the Merger ........    4,268,372           --        111.2           --            --            --         111.2

Exercise of stock options .........        5,725           --          0.1           --            --            --           0.1

Compensation expense ..............           --           --          1.0           --            --            --           1.0
                                      ----------   ----------   ----------   ----------    ----------    ----------    ----------

Balance December 31, 2000 .........   19,444,737   $      0.2   $    234.9   $    (15.3)   $     38.8    $    (11.6)   $    247.0
                                      ----------   ----------   ----------   ----------    ----------    ----------    ----------
Comprehensive income
     Net income ...................           --           --           --           --           4.3            --           4.3
     Unrealized fair value of
     derivative instruments .......           --           --           --           --            --          (0.3)         (0.3)
     Currency translation
     adjustment ...................           --           --           --           --            --          (3.9)         (3.9)
                                                                                                                       ----------
Total comprehensive income ........           --           --           --           --            --            --           0.1
                                                                                                                       ----------
Exercise of stock options .........       18,550           --          0.4           --            --            --           0.4

Compensation expense ..............           --           --          0.3           --            --            --           0.3
                                      ----------   ----------   ----------   ----------    ----------    ----------    ----------

Balance March 31, 2001
(unaudited)........................   19,463,287   $      0.2   $    235.6   $    (15.3)   $     43.1    $    (15.8)   $    247.8
                                      ----------   ----------   ----------   ----------    ----------    ----------    ----------
Comprehensive income
     Net income ...................           --           --           --           --           5.6            --           5.6
     Unrealized fair value of
     derivative instruments .......           --           --           --           --            --           0.1           0.1
     Currency translation
     adjustment ...................           --           --           --           --            --          (1.2)         (1.2)
                                                                                                                       ----------
Total comprehensive income ........           --           --           --           --            --            --           4.5
                                                                                                                       ----------
Exercise of stock options .........       44,549           --          0.9           --            --            --           0.9

Compensation expense ..............           --           --          0.3           --            --            --           0.3
                                      ----------   ----------   ----------   ----------    ----------    ----------    ----------
Balance June 30, 2001
(unaudited)........................   19,507,836   $      0.2   $    236.8   $    (15.3)   $     48.7    $    (16.9)   $    253.5
                                      ==========   ==========   ==========   ==========    ==========    ==========    ==========
</TABLE>
See accompanying notes


                                      -5-
<PAGE>   6


                                INTERLOGIX, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOW
                              (DOLLARS IN MILLIONS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                         SIX MONTHS ENDED
                                                                      ---------------------
                                                                       JUNE 30,    JULY 1,
                                                                         2001       2000
                                                                      ---------   ---------
<S>                                                                      <C>       <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income (Loss) .................................................   $  9.9    $(43.6)
   Adjustments to reconcile net income (loss) to net
     cash provided by (used in) operating activities--
       Depreciation and amortization .................................     19.1      13.0
       Amortization of deferred revenue, net of direct costs .........     (2.3)     (1.7)
       Write-off of acquired in-process research
            and development costs ....................................       --      37.8
       Write-off of intangible assets ................................       --       7.3
       Changes in assets and liabilities--
           Accounts receivable, net ..................................     (2.9)     (3.0)
           Inventories, net ..........................................     (1.8)     (5.1)
           Prepaid expenses and other ................................     (2.6)     (3.0)
           Accounts payable and accrued expenses .....................     (4.7)    (13.2)
                                                                         ------    ------
       Net cash provided by (used in) operating activities ...........     14.7     (11.5)
                                                                         ------    ------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Acquisition, net of cash received .................................     (3.1)   (170.3)
   Capital expenditures ..............................................    (13.2)     (8.7)
   Proceeds from sale of capital assets ..............................       --       0.3
   Other, net ........................................................     (1.4)     (2.4)
                                                                         ------    ------
      Net cash used in investing activities ..........................    (17.7)   (181.1)
                                                                         ------    ------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from borrowings ..........................................     53.9     261.0
   Repayment of long-term debt .......................................    (50.9)    (77.0)
   Proceeds from exercise of stock options ...........................      1.2        --
                                                                         ------    ------
     Net cash provided by financing activities .......................      4.2     184.0
                                                                         ------    ------

EFFECT OF EXCHANGE RATE CHANGES ON CASH ..............................     (0.2)     (0.3)
                                                                         ------    ------

     Net increase (decrease) in cash and cash equivalents ............      1.0      (8.9)

CASH AND CASH EQUIVALENTS, beginning of period .......................     12.5      21.6
                                                                         ------    ------

CASH AND CASH EQUIVALENTS, end of period .............................   $ 13.5    $ 12.7
                                                                         ======    ======

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
   Cash Paid for:
   Interest ..........................................................   $  7.7    $  3.9
   Income Taxes ......................................................   $ 12.6    $  8.7
</TABLE>

See accompanying notes


                                      -6-
<PAGE>   7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

I.       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.       OVERVIEW

         Interlogix, Inc. (the "Company"), a Delaware corporation (formerly
         known as ITI Technologies, Inc. ("ITI")), was incorporated in 1992.
         Pursuant to the terms of an Agreement and Plan of Merger and
         Reorganization, SLC Technologies, Inc. ("SLC"), a wholly owned
         subsidiary of Berwind LLC, formerly Berwind Group Partners ("Berwind"),
         a private company, merged with and into the Company, with the Company
         surviving. Since Berwind obtained a controlling interest in the Company
         the merger transaction was accounted for as a reverse acquisition of
         the Company by SLC. Accordingly, the financial statements of the
         Company consist of the historical accounts of SLC with the results of
         ITI included beginning on May 2, 2000. Concurrently with the
         transaction, the Company changed its name to Interlogix, Inc.

         The Company designs, develops, manufactures and distributes a broad
         range of components, systems and services for security, life safety and
         lifestyle enhancements. These solutions are directed toward the
         requirements of both business and consumers on a global basis. The
         Company's products and services are provided through an array of
         channels, including direct sales, wholesale distribution, specialized
         distribution and system integrators. The Company has sales and
         technical support operations in 25 countries and manufacturing and
         logistics operations in the United States, Europe, South Africa,
         Australia and China. The Company is represented by the following brand
         names: Aritech, Caddx, Casi-Rusco, ESL, Fiber Options, GBC, ITI,
         Kalatel, Sentrol, Supra and Tecom.

         The weighted average common shares outstanding as well as common stock,
         paid-in capital, stock options and the other components of
         stockholders' equity have been retroactively restated to give effect to
         the recapitalization that occurred as a result of the reverse merger.

2.       BASIS OF PRESENTATION

         The unaudited consolidated financial statements for the three and six
         month periods ended June 30, 2001 and July 1, 2000, reflect, in the
         opinion of management of the Company, all normal, recurring adjustments
         necessary for a fair statement of the results of operations for the
         interim periods. The results of operations for any interim period are
         not necessarily indicative of results for the full year. The
         consolidated balance sheet data as of December 31, 2000 was derived
         from the audited consolidated financial statements but does not include
         all disclosures required by generally accepted accounting principles.
         The unaudited consolidated financial statements should be read in
         conjunction with the consolidated financial statements and notes
         thereto included in the Company's current Annual Report on Form 10-K,
         filed with the Securities and Exchange Commission on April 2, 2001.

         The unaudited consolidated financial statements include the accounts of
         the Company and its wholly owned subsidiaries. All significant
         intercompany accounts and transactions have been eliminated.

         Certain reclassifications have been made to the prior period to conform
         to the current year presentation.


                                      -7-
<PAGE>   8
3.       INVENTORIES, NET

         Inventories, net are composed of:

<TABLE>
<CAPTION>
                                                      June 30, 2001                  December 31, 2000
                                                      -------------                  -----------------
<S>                                                   <C>                            <C>
         Raw Materials                                 $     51.1                        $     47.4
         Work-in-process                                     10.0                              14.1
         Finished goods                                      33.0                              30.6
                                                         --------                         ---------
                                                             94.1                              92.1
         Less:  Inventory reserve                             7.4                               7.2
                                                        ---------                        ----------
                                                       $     86.7                         $    84.9
                                                       ==========                         =========
</TABLE>

4.       PROPERTY, PLANT AND EQUIPMENT, NET

         Property, plant and equipment, net are composed of:

<TABLE>
<CAPTION>
                                                   Useful life           June 30, 2001             December 31, 2000
                                                   -----------           -------------             -----------------
                                                    (years)
<S>                                                <C>                   <C>                       <C>
         Land                                           -                   $  0.3                         $  0.3
         Buildings                                    30-40                    2.0                            2.1
         Machinery and equipment                       7-12                   65.1                           64.0
         Furniture and fixtures                        5-10                   21.8                           21.0
         Leasehold improvements                        2-7                     4.8                            4.4
         ERP and other                                 3-7                    20.5                           14.2
                                                                            ------                         ------
                                                                             114.5                          106.0

         Less: Accumulated depreciation                                       59.6                           55.6
                                                                            ------                         ------

                                                                            $ 54.9                         $ 50.4
                                                                            ======                         ======
</TABLE>

         Depreciation expense for the six months ended June 30, 2001 and July 1,
         2000 was $7.6 million and $5.9 million, respectively.

5.       LONG-TERM DEBT

         Long-term debt consists of the following:

<TABLE>
<CAPTION>
                                                          June 30, 2001              December 31, 2000
                                                          -------------              -----------------
<S>                                                       <C>                        <C>
         Revolving credit facility                            $136.0                       128.1
         Term facility                                          92.5                        97.5
         Other                                                   2.0                         1.7
                                                             -------                     -------
                                                               230.5                       227.3
         Less:  current portion                                 19.5                        16.7
                                                             -------                     -------
                                                             $ 211.0                     $ 210.6
                                                             =======                     =======
         </TABLE>



                                      -8-
<PAGE>   9
         Effective with the Merger described in Note 1, the Company entered into
         a five year $325.0 million senior, first priority, secured facility
         composed of a multi-currency revolving facility in the amount of $225.0
         million and a term facility in the amount of $100.0 million. The credit
         facilities bear interest, at the discretion of Interlogix, at either
         (a) the greater of the prime rate, or the federal funds effective rate
         plus 0.5%, or (b) Libor plus, a margin of 0.25% to 1.75% based on the
         Company's leverage ratio.

         The credit facility was used to finance the merger transaction, to
         refinance SLC's previous bank debt obligations, to provide for working
         capital and for general corporate purposes. The revolver is due May
         2005. The term facility will be amortized in equal quarterly
         installments in the following percentages of the initial principal
         amount of the term facility for each year: (1) Year 1-10%, (2) Year
         2-15%, (3) Year 3-20%, (4) Year 4-25% and (5) Year 5-30%. Commitment
         fees ranging from 0.25% to 0.375% depending on the Company's leverage
         ratio, are payable on the undrawn portion of the revolving facility.
         This credit agreement contains certain restrictive covenants, including
         the prohibition of the payment of dividends on common stock. The credit
         agreement also contains affirmative covenants including the maintenance
         of certain financial ratios as defined in the agreement. As of June 30,
         2001, the Company was in compliance with all covenants. The Company
         incurred debt issue costs of $3.8 million, which are being amortized
         over the life of the credit facility.

         At June 30, 2001, the Company had borrowings of $228.5 million and had
         $68.6 million available under its $325.0 million credit facility. At
         June 30, 2001, the weighted average interest rate charged for
         borrowings under the credit facility, including the effect of interest
         rate swap contracts, was 6.10%.

6.       EARNINGS PER SHARE

         Basic EPS is computed by dividing net income available to common
         stockholders by the actual weighted average number of common shares
         outstanding for the period. Diluted EPS is computed assuming the
         conversion of all dilutive securities, which only includes stock
         options for the Company. For periods prior to May 2, 2000, shares
         outstanding include only the common stock and stock options of SLC. As
         discussed in Note 1, the weighted-average common shares outstanding
         have been retroactively restated to give effect to the
         recapitalization, which occurred as a result of the merger transaction.

         The following table summarizes the number of shares outstanding and
         diluted weighted average shares outstanding used to compute diluted
         EPS:

<TABLE>
<CAPTION>
                                                 Three Months Ended                       Six Months Ended
                                          -------------------------------         -------------------------------
                                          June 30, 2001      July 1, 2000         June 30, 2001     July 1, 2000
                                          -------------      ------------         -------------     ------------
<S>                                       <C>                <C>                  <C>               <C>
                 Basic                       19,468,457        17,988,097            19,463,457       16,571,670
                 Dilutive impact of
                 options                        369,968                --               297,058               --
                                             ----------        ----------            ----------       ----------

                 Diluted                     19,838,425        17,988,097            19,760,515       16,571,670
                                             ==========        ==========            ==========       ==========
</TABLE>

7.       SEGMENT REPORTING

         Through December 31, 2000, the Company reported on a geographic basis
         with two reportable segments, which included the Americas (North,
         Central and South America) and Europe (Europe and Africa). Effective
         January 1, 2001, the Company modified its organizational structure and
         as a result changed its reportable segments. The Company now operates
         its business on a geographic basis with three reportable segments,
         which include North America; Europe, the Middle East and Africa; and
         Rest of World. Additionally, the Company has three business groups,
         which operate within each geographic segment. These business groups
         include security and lifesafety; enterprise technologies; and key
         management products and services. Segment information for the three and
         six months ended July 1, 2000 has been restated to give effect to the
         change in the reportable segments.


                                      -9-
<PAGE>   10

         The Company evaluates the performance of its geographic segments based
         on operating profit, excluding amortization expense and certain
         corporate charges. Results of Europe, Middle East and Africa have been
         converted to United States dollars at the average exchange rate for the
         period.

         The following table presents geographic segment information.

<TABLE>
<CAPTION>
                                                           Three Months Ended             Six Months Ended
                                                      ---------------------------   ---------------------------

                                                      June 30, 2001  July 1, 2000   June 30, 2001  July 1, 2000
                                                      -------------  ------------   -------------  ------------
         SALES:
<S>                                                   <C>            <C>             <C>           <C>
         North America                                   $ 100.6        $ 79.0         $ 205.0       $133.3
         Europe, Middle East and Africa                     41.0          38.5            82.6         74.7
         Rest of World                                      13.6           9.4            26.5         15.9
                                                         -------        ------          ------       ------
         Total Sales                                     $ 155.2        $126.9          $314.1       $223.9
                                                         =======        ======          ======       ======
         OPERATING PROFIT:
         North America                                    $ 14.0         $ 9.7          $ 27.4       $ 13.7
         Europe, Middle East and Africa                      4.8           3.1             9.2          6.5
         Rest of World                                       3.2           1.5             6.0          2.0
                                                          ------        ------          ------       ------
         Total Operating Profit                           $ 22.0        $ 14.3          $ 42.6       $ 22.2
                                                          ======        ======          ======       ======
</TABLE>


         Geographic segment operating profit does not include charges for
         restructuring, amortization expense and corporate charges. A
         reconciliation of geographic segment operating profit to operating
         income reported in the consolidated statements of operations is as
         follows:

<TABLE>
<CAPTION>
                                                           Three Months Ended             Six Months Ended
                                                      ----------------------------- -----------------------------

                                                      June 30, 2001  July 1, 2000   June 30, 2001  July 1, 2000
                                                      -------------  ------------   -------------  ------------
<S>                                                   <C>            <C>            <C>            <C>
         RECONCILIATION:
         Geographic segment operating profit              $22.0         $ 14.3          $ 42.6        $ 22.2
         Amortization expense                              (5.7)          (4.7)          (11.5)         (7.1)
         Acquired in-process research and development        --          (37.8)             --         (37.8)
         Restructuring and other charges                     --          (10.8)             --         (11.1)
         Other expenses and corporate charges              (0.6)          (4.1)           (2.3)         (5.7)
                                                          -----         ------          ------        ------
         Operating income per Statement of Operations     $15.7         $(43.1)         $ 28.8        $(39.5)
                                                          =====         =======         ======        ======
</Table>

<Table>
<Caption>
                                                              June 30, 2001              December 31, 2000
                                                              -------------              -----------------
<S>                                                           <C>                        <C>
         TOTAL ASSETS:
         North America                                           $507.4                        $506.7
         Europe, Middle East and Africa                            89.0                          86.1
         Rest of World                                             40.0                          40.2
                                                                 ------                        ------
         Total Assets                                            $635.4                        $633.0
                                                                 ======                        ======
</TABLE>


                                      -10-
<PAGE>   11

         The following table presents business group information on a global
reporting basis.

<TABLE>
<CAPTION>
                                                           Three Months Ended             Six Months Ended
                                                      --------------------------    ---------------------------

                                                      June 30, 2001  July 1, 2000   June 30, 2001  July 1, 2000
                                                      -------------  ------------   -------------  ------------
<S>                                                   <C>            <C>            <C>            <C>
         SALES:
         Security and Lifesafety                          $ 97.8       $ 81.2          $195.8          $139.2
         Enterprise Technologies                            37.9         31.2            72.6            58.8
         Key Management                                     19.5         14.5            45.7            25.9
                                                          ------       ------          ------          ------
         Total Sales                                      $155.2       $126.9          $314.1          $223.9
                                                          ======       ======          ======          ======

         OPERATING PROFIT:
         Security and Lifesafety                          $ 15.2       $ 9.5           $ 28.7          $ 14.7
         Enterprise Technologies                             4.4         2.4              8.3             4.5
         Key Management                                      3.6         3.1              8.3             4.8
                                                          ------      ------           ------          ------
         Business Group Operating Profit                  $ 23.2      $ 15.0           $ 45.3          $ 24.0
                                                          ======      ======           ======          ======
</TABLE>

         Business group operating profit does not include charges for
         restructuring, amortization expense and corporate charges. A
         reconciliation of business group operating profit to operating income
         reported in the consolidated statements of operations is as follows:

<TABLE>
<CAPTION>
                                                           Three Months Ended             Six Months Ended
                                                      ---------------------------   ---------------------------

                                                      June 30, 2001  July 1, 2000   June 30, 2001  July 1, 2000
                                                      -------------  ------------   -------------  ------------
<S>                                                   <C>            <C>            <C>            <C>
         RECONCILIATION:
         Business group operating profit                  $ 23.2      $  15.0          $ 45.3        $ 24.0
         Amortization expense                               (5.7)        (4.7)          (11.5)         (7.1)
         Acquired in-process research and development         --        (37.8)             --         (37.8)
         Restructuring and other charges                      --        (10.8)             --         (11.1)
         Other expenses and corporate charges               (1.8)        (4.8)           (5.0)         (7.5)
                                                          ------      -------          ------        ------
         Operating income per Statement of Operations     $ 15.7      $ (43.1)         $ 28.8        $(39.5)
                                                          ======      =======          ======        ======
         </TABLE>

8.       DERIVATIVES

         Effective January 1, 2001, the Company adopted SFAS No. 133,
         "Accounting for Derivative Instruments and Hedging Activities" and SFAS
         No. 138, "Accounting for Certain Derivative Instruments and Certain
         Hedging Activities - An Amendment of FASB Statement No. 133." These
         pronouncements establish accounting and reporting standards for
         derivative instruments, including certain derivative instruments
         embedded in other contracts (collectively referred to as derivatives),
         and for hedging activities. Upon adoption, the cumulative transition
         adjustment was insignificant.

         Interest Rate Swap Agreements

         The Company has interest rate swap agreements in place with the intent
         of managing its exposure to interest rate risk on its existing debt
         obligation. Accordingly, the company currently has three outstanding
         agreements to effectively convert LIBOR based variable-rate debt to
         fixed-rate debt.

         The Company considers these agreements to be cash flow hedging
         instruments. Under SFAS No. 133, in order to consider these agreements
         as hedges, (i) the Company must designate the instrument as a hedge of
         future transactions, and (ii) the contract must reduce the Company's
         exposure in the risk of changes in


                                      -11-
<PAGE>   12
         interest rates. If the above criteria are not met, the Company will
         record the market value of the contract at the end of each month on the
         balance sheet and will recognize a related gain or loss in the
         statement of operations. Net receipts or payments under these
         agreements are recognized as an adjustment to interest expense, while
         changes in the fair market value of these hedges are not recognized in
         income. The Company will recognize the fair market value of the hedges
         in income at the time of maturity, sale or termination, though the
         Company does not anticipate the sale or termination of these
         instruments. The fair value of interest rate swaps is the estimated
         amount that the bank would receive or pay to terminate the swap
         agreements at the reporting date, taking into account current market
         conditions and interest rates.

         At June 30, 2001, the notional amount of the contracts in place was
         $30.0 million, which were effective as of December 31, 1998, and mature
         in 2005. The company will receive variable rate payments (equal to the
         three month LIBOR rate) from the third parties and is obligated to pay
         fixed interest rate payments (weighted average rate equal to 5.862%) to
         the third parties during the term of the contracts. The net unrealized
         loss, which equals the fair values, net of tax, on the interest rate
         swaps at June 30, 2001 was $0.3 million, and was included in accrued
         expenses in the Company's balance sheet and recorded as other
         comprehensive loss in the statement of stockholders' equity.

         Foreign Currency Contracts

         It is the purpose of the Company's foreign exchange risk management
         policy is to minimize its cash flow exposure to adverse changes in
         currency and exchange rates. This is accomplished by identifying and
         evaluating the risk that the Company's cash flows will decline in value
         due to changes in foreign currency exchange rates and by determining
         the appropriate strategies necessary to manage such exposures. The
         Company's objective is to maintain economically balanced currency risk
         management strategies that provide adequate downside protection.
         Forward exchange contracts are designated as a hedge at inception when
         there is a direct relationship to the exchange risk associated with the
         Company's cash flow. The Company formally documents all relationships
         between hedging instruments and hedged items, as well as its
         risk-management objectives and strategy for undertaking various hedge
         transactions. This process includes relating all derivatives to
         specific firm commitments or forecasted transactions. The Company also
         formally assesses, both at the inception of the hedge and on an ongoing
         basis, whether each derivative is highly effective in offsetting
         changes of the hedged item. As the terms of the forward exchange
         contract and the underlying transaction are matched at inception,
         forward contract effectiveness is calculated by comparing the fair
         value of the contract to the change in the forward value of the
         anticipated transaction, with the effective portion of the gain or loss
         on the derivative instrument reported as a component of other
         comprehensive income. Contract effectiveness is calculated by comparing
         the intrinsic value of the effective portion of changes in fair value
         accumulated in other comprehensive income. Ineffectiveness in the six
         months ended June 30, 2001 was not significant. Changes in the fair
         value of a derivative that is not designated as a hedge are recorded
         immediately in earnings.

         As of June 30, 2001, the Company had outstanding foreign exchange
         contracts with notional amounts totaling approximately $3.0 million.
         The year to date net unrealized gain, net of tax, is included in
         prepaid and other assets on the Company's balance sheet and recorded as
         other comprehensive income in the statement of stockholders' equity was
         approximately $0.1 million.

9.       RESTRUCTURING AND OTHER CHARGES

         In the first half of 2000, the Company adopted and implemented
         restructuring plans primarily initiated to reorganize the Company as a
         result of the Merger discussed in Note 1. Approximately $5.2 million
         for severance and other costs to exit certain activities were accrued
         as part of the purchase price of the Merger.

         During the second quarter of 2001 the Company reversed $2.7 million of
         this amount, which had been accrued as part of the purchase price in
         connection with the Merger, related to certain exit activities not part
         of a finalized exit plan.

10.      RECENTLY ISSUED ACCOUNTING STANDARDS

         On July 23, 2001 the Financial Accounting Standards Board released for
         issuance Statement of Financial Accounting Standards ("SFAS") No. 141,
         "Business Combinations" and No. 142 "Goodwill and Other


                                      -12-
<PAGE>   13
         Intangible Assets". SFAS No. 141 requires that all business
         combinations subsequent to June 30, 2001 to be accounted for under the
         purchase method of accounting. The pooling-of-interests method is no
         longer allowed. SFAS NO. 142 requires that upon adoption, amortization
         of goodwill will cease and instead, the carrying value of goodwill will
         be evaluated for impairment on at least an annual basis. SFAS No. 142
         is effective for fiscal years beginning after December 15, 2001. The
         Company is evaluating the impact of adoption of these standards and has
         not yet determined the effect of adoption on its financial position and
         results of operations.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

         Interlogix, Inc. (the "Company"), a Delaware corporation (formerly
         known as ITI Technologies, Inc. ("ITI")), was incorporated in 1992.
         Pursuant to the terms of an Agreement and Plan of Merger and
         Reorganization, SLC Technologies, Inc. ("SLC"), a wholly owned
         subsidiary of Berwind LLC, formerly known as Berwind Group Partners
         ("Berwind"), a private company, merged with and into the Company, with
         the Company surviving (the "Merger"). Since Berwind obtained a
         controlling interest in the Company, the Merger was accounted for as a
         reverse acquisition of the Company by SLC (see discussion in Note 1 to
         the consolidated financial statements). Accordingly, the financial
         statements of the Company consist of the historical accounts of SLC
         with the results of ITI included beginning on May 2, 2000. Concurrently
         with the transaction, the Company changed its name to Interlogix, Inc.

         UNAUDITED RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE
         30, 2001 AND JULY 1, 2000

         The following tables illustrate results of operations for the periods
         indicated and the percentages for which certain items of income and
         expense relate to net sales:

<TABLE>
<CAPTION>
                                                                      Three Months Ended             Six Months Ended
                                                                 ---------------------------   ---------------------------

                                                                 June 30, 2001  July 1, 2000   June 30, 2001  July 1, 2000
                                                                 -------------  ------------   -------------  ------------
<S>                                                              <C>            <C>            <C>            <C>
         Revenues  ...........................................      $ 155.2       $ 126.9         $ 314.1       $ 223.9
                                                                    -------       -------         -------       -------
         Gross Profit  .......................................         67.9          51.1           134.9          91.0
         Selling, General and Administrative  ................         40.1          34.7            81.9          63.5
         Research and Development  ...........................          6.4           6.2            12.7          11.0
         Amortization of Intangibles  ........................          5.7           4.7            11.5           7.1
         Acquired in-process research and development.........           --          37.8              --          37.8
         Restructuring and other charges  ....................           --          10.8              --          11.1
                                                                    -------       -------         -------       -------
         Operating Income (loss)..............................         15.7         (43.1)           28.8         (39.5)
                                                                    -------       -------         -------       -------
         Interest Expense, net  ..............................          4.3           3.5             8.9           4.7
         Other (Income) Expense, net .........................          0.9           0.2             1.4          (2.1)
                                                                    -------       -------         -------       -------
         Income (loss) Before Taxes  .........................         10.5         (46.8)           18.5         (42.1)
         Income tax provision (benefit)  .....................          4.9          (1.3)            8.6           1.5
                                                                    -------       -------         -------       -------
         Net Income (loss)  ..................................      $   5.6       $ (45.5)        $   9.9       $ (43.6)
                                                                    =======       =======         =======       =======
</TABLE>

<TABLE>
<CAPTION>
                                                                      Three Months Ended             Six Months Ended
                                                                 ----------------------------- -----------------------------

                                                                 June 30, 2001  July 1, 2000   June 30, 2001  July 1, 2000
                                                                 -------------  ------------   -------------  ------------
<S>                                                              <C>            <C>            <C>            <C>
         Revenues  ...........................................       100.0%        100.0%          100.0%        100.0%
                                                                     ------        ------          ------        ------
         Gross Profit  .......................................        43.8%         40.3%           42.9%         40.6%
         Selling, General and Administrative  ................        25.8%         27.3%           26.1%         28.3%
         Research and Development  ...........................         4.1%          4.9%            4.0%          4.9%
         Amortization of Intangibles  ........................         3.7%          3.7%            3.7%          3.2%
</TABLE>


                                      -13-
<PAGE>   14


<TABLE>
<CAPTION>
<S>                                                   <C>            <C>            <C>            <C>
         Acquired in-process research and development        --          29.8%             --          16.9%
         Restructuring and other charges  .........          --           8.5%             --           4.9%
                                                          -----         -----           -----         -----
         Operating Income (loss) ..................        10.1%        (34.0%)           9.2%        (17.7%)
                                                          -----         -----           -----         -----
         Interest Expense, net  ...................         2.8%          2.8%            2.8%          2.1%
         Other (Income) Expense, net  .............         0.6%          0.2%            0.4%         (0.9%)
                                                          -----         -----           -----         -----
         Income (loss) Before Taxes  ..............         6.8%        (36.9%)           5.9%        (18.8%)
         Income tax provision (benefit)  ..........         3.2%         (1.0%)           2.7%          0.7%
                                                          -----         -----           -----         -----
         Net Income (loss) ........................         3.6%        (35.9%)           3.2%        (19.5%)
                                                          =====         =====           =====         =====
</TABLE>

         THREE AND SIX MONTHS ENDED JUNE 30, 2001 COMPARED WITH THREE AND SIX
         MONTHS ENDED JULY 1, 2000

         Revenues. Revenues increased from $126.9 million for the three months
         ended July 1, 2000 to $155.2 million for the three months ended June
         30, 2001, which represents an increase of $28.3 million, or 22.3%.
         Revenues increased from $223.9 million for the six months ended July 1,
         2000 to $314.1 million for the six months ended June 30, 2001, which
         represents an increase of $90.2 million, or 40.3%. The increase in
         revenues for both periods is due in part to the inclusion of ITI for
         2001 as compared to only partial inclusion in 2000 due to the merger on
         May 2. ITI revenues were $34.4 million and $68.4 million for the
         quarter and six months ended June 30, 2001, respectively, compared to
         $22.0 million for both six month periods. Excluding the impact of
         incremental ITI sales, total revenues increased by 12.5% over second
         quarter 2000 and by 19.6% over the six months ended July 1, 2000. These
         increases are net of the adverse impact for exchange translation
         adjustments of $2.8 million and $5.4 million, respectively.

         Excluding incremental sales due to the inclusion of ITI, revenues for
         the security and lifesafety group increased $10.2 million or 7.3% for
         the six months ended June 30, 2001. Contributing to this sales increase
         was revenue growth in Europe and Africa. In addition, during the first
         quarter of 2000, revenues were constrained in the United States by an
         inventory reduction program by a major distributor. Sales within the
         key management business group increased $19.8 million or 76.4% over the
         six months ended July 1, 2000. This growth resulted primarily from
         incremental business in the real estate market generated from the Supra
         Advantage Express III product offering. Shipments for this product line
         started in the third quarter of 2000. The digital video product line
         was the primary contributor to the increase in enterprise technologies
         revenues of $13.8 million or 23.5%, over the six months ended July 1,
         2000. This growth was due to increased acceptance of digital video
         surveillance products for educational institutions for safety reasons.
         Contracts received from city transit systems for a digital video
         recorder products also supported increased sales. During the six months
         ended June 30, 2001 this group received $8.5 million in orders from
         transit systems in Chicago and New Orleans. Revenue resulting from
         these contracts during the quarter was $1.8 million.

         Gross Profit. As a percentage of revenues, gross profit was 43.8% for
         the three months ended June 30, 2001 versus 40.3% for the three months
         ended July 1, 2000. As a percentage of revenues, gross profit was 42.9%
         for the six months ended June 30, 2001 versus 40.6% for the six months
         ended July 1, 2000. Changes in product mix and cost reductions as a
         result of global purchasing initiatives provided an increase in gross
         profit as a percentage of sales for both the quarter and the six months
         ended June 30, 2001. The inclusion of ITI wireless products in the
         first quarter of 2001, with associated higher gross margins than
         hardwired based offerings, also contributed to the improvements. Merger
         related inventory adjustments of $2.9 million during the quarter ended
         July 1, 2000 resulted in a lower percentage for the 2000 periods.

         Selling, General and Administrative Expenses. Selling, general and
         administrative expenses increased from $34.7 million for the three
         months ended July 1, 2000 to $40.1 million for the three months ended
         June 30, 2001 which represents an increase of $5.4 million or 15.6%. As
         a percentage of sales, selling, general and administrative expenses
         were 25.8% for the three months ended June 30, 2001 versus 27.4% for
         the comparable period in 2000. Selling, general and administrative
         expenses increased from $63.5 million for the six months ended July 1,
         2000 to $81.9 million for the six months ended June 30, 2001 which
         represents an increase of $18.4 million or 29.0%. As a percentage of
         sales, selling, general and administrative expenses were 26.1% for the
         six months ended June 30, 2001 versus 28.4% for the comparable period
         in 2000. The inclusion of ITI for the full six month period in 2001
         contributed $1.9 million and $8.2 million of incremental expense for
         the three and six months ended June 30, 2001,


                                      -14-
<PAGE>   15

         respectively. Other increases in selling, general and administrative
         expenses are primarily related to infrastructure investments made in
         the enterprise technologies and key management businesses. Expenses
         directed at supporting the growth of the key management products group
         resulted in an increase of $5.9 million for the six months ended June
         30, 2001 as compared to the six months ended July 1, 2000. Incremental
         infrastructure investments of $2.3 million were made in the digital
         video product offering for the six months ended June 30, 2001. Also
         included in 2001 spending were costs related to establishing and
         staffing a corporate office in Austin, Texas.

         Research and Development Expenses. Research and development expenses
         increased from $6.2 million for the three months ended July 1, 2000 to
         $6.4 million for the three months ended June 30, 2001 which represents
         an increase of $0.2 million, or 3.2%. As a percentage of sales,
         research and development expenses were 4.1% for the three months ended
         June 30, 2001 versus 4.9% for the three months ended July 1, 2000.
         Research and development expenses increased from $11.0 million for the
         six months ended July 1, 2000 to $12.7 million for the six months ended
         June 30, 2001 which represents an increase of $1.7 million, or 15.5%.
         As a percentage of sales, research and development expenses were 4.0%
         for the six months ended June 30, 2001 versus 4.9% for the six months
         ended July 1, 2000. Increased research and development expenses were
         due to the inclusion of ITI for the six months ended June 30, 2001,
         which contributed $2.5 million of incremental expense over the prior
         comparable period. Engineering investments made in 2001 in the
         enterprise technologies business included investments in developing the
         next generation integrated platform for access control systems and
         digital video recording systems. Synergies as a result of eliminating
         duplicate development activities in the security and lifesafety group
         as a result of the merger, contributed to the reduction in spending as
         a percentage of sales.

         Amortization of Intangible Assets. The amortization of intangible
         assets increased from $4.7 million for the three months ended July 1,
         2000 to $5.7 million for the three months ended June 30, 2001 which,
         represents an increase of $1.0 million or 21.3%. The amortization of
         intangible assets increased from $7.1 million for the six months ended
         July 1, 2000 to $11.5 million for the six months ended June 30, 2001,
         which represents an increase of $4.4 million or 62.0 %. The increase in
         amortization of intangible assets is due to the addition of
         approximately $222.6 million of intangible assets, including goodwill,
         as a result of the Merger. The identifiable intangible assets include
         technology, patents, trademarks, and other intangible property and are
         being amortized over their estimated useful lives ranging from 7 to 20
         years.

         Interest Expense, Net. Net interest expense increased from $3.5 million
         for the three months ended July 1, 2000 to $4.3 million for the three
         months ended June 30, 2001, which represents an increase of $0.8
         million or 22.9%. Net interest expense increased from $4.7 million for
         the six months ended July 1, 2000 to $8.9 million for the six months
         ended June 30, 2001, which represents an increase of $4.2 million or
         89.4%. The increase in interest expense is due to increased borrowings
         of $173.0 million during the second quarter 2000. These funds were used
         to finance the incremental debt associated with the Merger.

         Other (Income) Expense, Net. Other expense, net of other income was
         $0.9 million for the three months ended June 30, 2001 versus $0.2
         million for the three months ended July 1, 2000. Other expense, net of
         other income was $1.4 million for the six months ended June 30, 2001
         versus other income, net of other expense of $2.1 million for the six
         months ended July 1, 2000. Contributing to other net income for the six
         months ended July 1, 2000 was the settlement of a patent infringement
         lawsuit in the amount of $2.5 million. Results for the six months ended
         June 30, 2001 include currency exchange losses of approximately $1.2
         million related to the strength of the US dollar in relation to the
         Euro. This impact reflects the requirement to revalue European
         obligations denominated in US dollars, using current exchange rates.

         Income Tax Provision (Benefit). Income taxes increased from a benefit
         of $1.3 million for the three months ended July 1, 2000 to a provision
         of $4.9 million for the three months ended June 30, 2001, which
         represents an increase of $6.2 million. The effective tax rate was
         46.7% for the three months ended June 30, 2001, compared to an
         effective tax rate of 2.7% for the three months ended July 1, 2000.
         Income tax expense increased from $1.5 million for the six months ended
         July 1, 2000 to $8.6 million for the six months ended June 30, 2001,
         which represents an increase of $7.1 million. The effective tax rate
         was 46.5% for the six months ended June 30, 2001, compared to an
         effective tax rate of (3.6%) for the six months ended July 1, 2000. The
         effective tax rate in 2000 is affected by the increase in
         non-deductible charges for goodwill, non-deductible restructuring
         charges and the write-off of the acquired research and development
         related to the Merger. Generally, the Company's effective tax rate
         differs from the statutory



                                      -15-
<PAGE>   16




         rate on ordinary income due to different tax rates applicable to
         foreign income, amortization of non-deductible goodwill, state income
         taxes and recognition of tax credits.

         SEGMENT INFORMATION (UNAUDITED)

<Table>
<Caption>
                                               Three Months Ended                     Six Months Ended
                                        ---------------------------------     ---------------------------------
                                        June 30, 2001       July 1, 2000      June 30, 2001       July 1, 2000
                                        --------------     --------------     --------------     --------------
<S>                                     <C>                <C>                <C>                <C>
SALES:
North America                           $        100.6     $         79.0     $        205.0     $        133.3
Europe, Middle East and Africa                    41.0               38.5               82.6               74.7
Rest of World                                     13.6                9.4               26.5               15.9
                                        --------------     --------------     --------------     --------------
Total Sales                             $        155.2     $        126.9     $        314.1     $        223.9
                                        ==============     ==============     ==============     ==============
OPERATING PROFIT:
North America                           $         14.0     $          9.7     $         27.4     $         13.7
Europe, Middle East and Africa                     4.8                3.1                9.2                6.5
Rest of World                                      3.2                1.5                6.0                2.0
                                        --------------     --------------     --------------     --------------
Total Operating Profit                  $         22.0     $         14.3     $         42.6     $         22.2
                                        ==============     ==============     ==============     ==============
</Table>


         Segment operating profit does not include amortization expense,
         restructuring charges, and certain corporate charges. A reconciliation
         of segment operating profit to operating income as presented in the
         financial statements can be found in Note 7 to the consolidated
         financial statements.

         Sales. Net customer sales for North America increased from $79.0
         million for the quarter ended July 1, 2000 to $100.6 million for the
         quarter ended June 30, 2001, an increase of $21.6 million or 27.3%. For
         the six months ended June 30, 2001 sales increased from $133.3 million
         to $205.0 million over the comparable period in 2000, which represents
         an increase of $71.7 million or 53.8%. The increase is partially due to
         the inclusion of ITI sales of $68.4 million for the six months ended
         June 30, 2001. Additional increases were a result of growth within the
         key management and digital video product lines. Sales of digital video
         and recorder products under the Kalatel brand increased $14.6 million
         over the six-month period in 2000. Growth within the key management
         business as result of the success of Supra Advantage Express III
         platform provided incremental sales of $18.2 million for the six months
         ended June 30, 2001. This product line was introduced to the market in
         the third quarter of 2000.

         Net shipments for Europe, the Middle East and Africa for the three
         months ended June 30, 2001 were $41.0 million as compared to $38.5
         million for same period in 2000. Shipments of $82.6 million for the six
         months ended June 30, 2001 were $7.9 million, or 10.6% higher than the
         comparative period for 2000. Excluding the impact of foreign currency
         translation adjustments of $5.4 million, sales growth in Europe, the
         Middle East and Africa was 17.8% as compared to 2000. Contributing to
         growth were ITI sales into this region of $2.6 million for the six
         months ended June 30, 2001. Sales growth was also supported by the
         introduction of expanded offerings in the closed circuit television
         product line.

         Sales for Rest of World were $13.6 million for the quarter ended June
         30, 2001 as compared to $9.4 million for the quarter ended July 1,
         2000. For the six months ended June 30, 2001 sales were $26.5 versus
         $15.9 million for the comparable period in 2000. The inclusion of ITI
         sales into this region for the six months ended June 30, 2001 accounts
         for $13.3 million of this increase. Growth was limited in part due to
         an economic downturn, particularly in the Australian marketplace.

         Operating Profit. For the three and six months ended June 30, 2001
         operating profit for North America was $14.0 million and $27.4 million,
         or $13.9% and 13.4% of sales, respectively. This compares with $9.7
         million and $13.7 million, or 12.3% and 10.3% of sales, for the three
         and six months ended July 1, 2000, respectively. Improvements in
         relative operating profit margins can be attributed to changes in
         product mix due to the wireless ITI product offering and the
         introduction of the Supra Advantage Exress III product



                                      -16-
<PAGE>   17



         line. providing improved gross margins. Synergies realized from the
         Merger in the areas of global procurement initiatives and expense
         savings due to research and development and administration
         redundancies, contributed to improved operating income ratios. The
         additional volumes over the prior year supported increased leverage of
         the fixed cost base of the North American operation.

         Operating profit for Europe, the Middle East and Africa for the three
         and six months ended June 30, 2001 was $4.8 million and $9.2 million,
         or 11.7% and 11.1% of sales, respectively. This performance was an
         improvement from the 8.1% and 8.7% operating profit ratios to sales in
         three and six months ended July 1, 2000, respectively. This was despite
         the adverse impact of currency translation adjustments, resulting from
         the U.S. dollar being approximately 6.7% stronger in the six months
         ended 2001 than in the applicable prior period. The impact of the
         strengthening U.S. dollar on U.S. sourced products adversely impacted
         operating profit by approximately $1.7 million for the current year to
         date period.

         Operating profit in Rest of World for the three and six months ended
         June 30, 2001 was $3.2 million and $6.0 million, respectively, as
         compared to $1.5 million and $2.0 million, respectively, for the
         comparable periods in 2000. ITI's contribution to operating profit in
         this geographic region was approximately $4.3 million in 2001.

         LIQUIDITY, CAPITAL RESOURCES AND OTHER FINANCIAL DATA

         Cash flow from operations, supplemented with proceeds from debt
         financing, historically has provided funding for the Company's capital
         spending and acquisition objectives. Cash flow from operations and
         financing activities are expected to meet the Company's future resource
         requirements.

         CAPITAL EXPENDITURES

         Capital expenditures for the six months ended June 30, 2001 were $13.2
         million versus $8.7 million for the six months ended July 1, 2000.
         During 2001, the Company has continued to invest in a common
         information technology platform to both encompass worldwide operations
         and provide the capability to undertake electronic commerce activities.

         FINANCING AND CAPITAL STRUCTURE

         Effective with the merger transaction described in Note 1, the Company
         entered into a five year $325.0 million senior, first priority, secured
         facility composed of a multi-currency revolving facility in the amount
         of $225.0 million and a term facility in the amount of $100.0 million.
         At June 30, 2001, the Company had $68.6 million available to borrow
         under the revolving facility, and had repaid $7.5 million of its $100.0
         million term facility leaving a balance of $92.5 million. The credit
         facility also includes up to $17.0 million for letters of credit of
         which $6.7 million are unused at June 30, 2001.

         The credit facilities bear interest, at the discretion of Interlogix,
         at either (a) the greater of the prime rate, or the federal funds
         effective rate plus 0.5%, or (b) Libor plus, a margin of 0.25% to 1.75%
         based on the Company's leverage ratio. Commitment fees ranging from
         0.25% to 0.375% depending on the Company's leverage ratio, are payable
         on the undrawn portion of the revolving facility. This credit agreement
         contains certain restrictive covenants, including the prohibition of
         the payment of dividends on common stock. The credit agreement also
         contains affirmative covenants including the maintenance of certain
         financial ratios as defined in the agreement. As of June 30, 2001, the
         Company was in compliance with all covenants.

         WORKING CAPITAL

         Working capital, excluding cash, at June 30, 2001 was $122.8 million
         compared to $112.6 million at December 31, 2000, an increase of $10.2
         million. The increase in working capital is due primarily to higher
         levels of inventory to support the demand in the enterprise
         technologies and key management businesses and higher receivables due
         to rapid growth in these same areas.



                                      -17-
<PAGE>   18



         RECENTLY ISSUED ACCOUNTING STANDARDS

         On July 23, 2001 the Financial Accounting Standards Board released for
         issuance Statement of Financial Accounting Standards ("SFAS") No. 141,
         "Business Combinations" and No. 142 "Goodwill and Other Intangible
         Assets". SFAS No. 141 requires that all business combinations
         subsequent to June 30, 2001 to be accounted for under the purchase
         method of accounting. The pooling-of-interests method is no longer
         allowed. SFAS NO. 142 requires that upon adoption, amortization of
         goodwill will cease and instead, the carrying value of goodwill will be
         evaluated for impairment on at least an annual basis. SFAS No. 142 is
         effective for fiscal years beginning after December 15, 2001. The
         Company is evaluating the impact of adoption of these standards and has
         not yet determined the effect of adoption on its financial position and
         results of operations.

         KEY MANAGEMENT OUTLOOK

         The Company's Supra Division has historically arranged for its real
         estate customers to finance product purchases through leases from a
         third party financial institution. This financial institution has
         advised the Company that internal loan concentration limits will not
         permit it to continue to finance these leases. The Company is
         negotiating with alternative sources of customer financing and while it
         expects to reach an agreement with a new financing source in the third
         quarter it has not reached a commitment for the alternative financing
         as of this date.

         FORWARD-LOOKING STATEMENTS

         This Form 10-Q contains forward-looking statements relating to the
         financial condition, results of operations, plans, objectives, future
         performance and business of Interlogix, Inc. ("Interlogix" or the
         "Company"). These statements include, without limitation, statements
         preceded by, followed by or that include the words "believes,"
         "expects," "anticipates," "estimates" or similar expressions. These
         forward-looking statements involve risks and uncertainties. Actual
         results may differ materially from those contemplated by the
         forward-looking statements due to factors discussed in the Company's
         current Annual Report on Form 10-K, filed with the Securities and
         Exchange Commission on April 2, 2001, including the following:

         o        increases in the competitive environment among intrusion, fire
                  protection, access control, video surveillance and integrated
                  system companies, including the potential effect of industry
                  consolidation;

         o        changes in or unexpected unfavorable general economic
                  conditions in the states or countries in which Interlogix is
                  doing business;

         o        change in currency exchange rates, particularly between the
                  U.S. Dollar and the Euro;

         o        legislative or regulatory changes that adversely affect the
                  businesses in which Interlogix is engaged;

         o        difficulties in the technical, operational and/or strategic
                  integration of Interlogix; and

         o        obsolescence of the technology of Interlogix.



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         The Company is exposed to market risk from changes in interest rates
         and foreign exchange rates. The Company periodically utilizes interest
         rate swap agreements and forward exchange agreements to hedge a portion
         of these exposures. The Company does not use derivatives or other
         financial instruments for trading purposes. The Company's management
         believes the risk of incurring material losses related to credit risk
         is remote. The Company's derivative and other financial instruments
         consist of cash, accounts receivable, accounts payable, long-term debt
         (including current portion), foreign currency exchange contracts



                                      -18-
<PAGE>   19



         and interest rate swaps. The utilization of the Company's derivative
         financial instruments is described more fully in the Note 8 to the
         consolidated financial statements.

         Interest Rate Risk

         The Company's debt portfolio, including interest rate swap agreements,
         as of June 30, 2001, is composed of revolving and term debt denominated
         in U.S. dollars. Substantially all of the Company's debt was
         variable-rate at June 30, 2001, however $30.0 million of this debt was
         effectively fixed with an interest rate swap. A change in interest
         rates on the variable portion of the debt portfolio impacts the
         interest incurred and cash flows, but does not impact the net financial
         instrument position. Based on the variable-rate debt included in the
         Company's debt portfolio as of June 30, 2001, a 100 basis point
         increase in interest rates would result in an additional $2.0 million
         in interest incurred per year. A 100 basis point decline would lower
         interest incurred by $2.0 million.

         Foreign Currency Exchange Rate Risk

         The primary currencies for which the Company has foreign currency
         exchange rate exposure are the U.S. dollar versus the Euro, Irish
         pound, Dutch guilder, French franc, Australian dollar and German mark.
         Foreign currency debt and foreign exchange forward contracts are
         occasionally used in countries where the Company does business, thereby
         reducing the Company's net asset exposure. Foreign exchange forward and
         option contracts are used on occasion to hedge the Company's firm and
         highly anticipated foreign currency cash flows. For the quarter ended
         June 30, 2001, the Company was a party to foreign currency hedging
         instruments with notional amounts totaling approximately $3.0 million.



                                      -19-
<PAGE>   20




PART II OTHER INFORMATION



ITEM 1. LEGAL PROCEEDINGS

         The Company is not currently a party to any material legal proceedings.



ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

         Not applicable.



ITEM 3. DEFAULTS UPON SENIOR SECURITIES

         Not applicable.



ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         Not applicable.



ITEM 5. OTHER INFORMATION

         Not applicable.



ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

         a.       Exhibits

                  10.1     Amendment No. 3 dated as of June 15, 2001, to Credit
                           Agreement dated as of November 17, 1999, previously
                           amended as of September 5, 2000 and November 29, 2000
                           among Interlogix, Inc. the institutions party
                           thereto, PNC bank, National Association, as
                           administrative agent for the Banks, The Bank of Nova
                           Scotia, as syndication agent for the Banks and First
                           Union National Bank, as documentation agent.

         b.       Reports on Form 8-K

                  None.




                                      -20-
<PAGE>   21





                                   SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                          INTERLOGIX, INC.


                          By:  /s/       Kenneth L. Boyda
                               -------------------------------------
                                         Kenneth L. Boyda
                               President and Chief Executive Officer
                               (principal executive officer)


                          By:  /s/       John R. Logan
                               ---------------------------------------
                                         John R. Logan
                               Senior Vice President and Chief Financial Officer
                               (principal financial and accounting officer)


                             DATED: AUGUST 3, 2001



                                      -21-
<PAGE>   22



                                  EXHIBIT INDEX


<Table>
<Caption>
       EXHIBIT
       NUMBER              DESCRIPTION
       ------              -----------
<S>                        <C>
         10.1              Amendment No. 3 dated as of June 15, 2001, to Credit
                           Agreement dated as of November 17, 1999, previously
                           amended as of September 5, 2000 and November 29, 2000
                           among Interlogix, Inc. the institutions party
                           thereto, PNC bank, National Association, as
                           administrative agent for the Banks, The Bank of Nova
                           Scotia, as syndication agent for the Banks and First
                           Union National Bank, as documentation agent.
</Table>