NEUHAUSEN, Switzerland,
April 25, 2014 /PRNewswire/ --
- Revenue of $2.5 billion with
organic growth of 2%
- Before special items, segment operating income increases 15%
and operating margin improves 170 basis points to 13.5%
- Diluted EPS from continuing operations before special items
increases 22%
- The Company announced the divestiture of its ADT Korea security
business and completed the sale of its minority interest in Atkore
International
- The Company's Board of Directors approved an additional
$1.75 billion authorization for share
repurchases, bringing the total authorization to $2 billion
(Income and EPS amounts are attributable to Tyco common
shareholders)
($ millions, except per-share amounts)
(All prior periods have been recast to present ADT Korea as a
discontinued operation)
|
Q2 2014
|
Q2 2013
|
% Change
|
|
|
|
Revenue
|
$2,487
|
$2,474
|
0.5%
|
|
|
|
Segment Operating
Income
|
$309
|
$156
|
-
|
|
|
|
Operating
Income
|
$248
|
$95
|
-
|
|
|
|
Income from
Continuing Operations
|
$183
|
$51
|
-
|
|
|
|
Diluted EPS from
Continuing Operations
|
$0.39
|
$0.11
|
-
|
|
|
|
Special
Items
|
($0.06)
|
$(0.26)
|
|
|
|
|
Segment Operating
Income Before Special Items
|
$335
|
$292
|
15%
|
|
|
|
Income from
Continuing Ops Before Special Items
|
$212
|
$175
|
21%
|
|
|
|
Diluted EPS from
Continuing Ops Before Special Items
|
$0.45
|
$0.37
|
22%
|
|
|
|
|
|
|
|
|
|
|
Tyco (NYSE: TYC) today reported $0.39 in GAAP diluted earnings per share (EPS)
from continuing operations for the fiscal second quarter of 2014
and diluted EPS from continuing operations before special items of
$0.45. Revenue in the quarter
increased 0.5% versus the prior year to $2.5
billion. Organic revenue grew 2% in the quarter, with 1.5%
growth in service, 1% growth in installation and 2% growth in
products. Acquisitions contributed two percentage points of growth,
which was more than offset by the impact of divestitures and
changes in foreign currency exchange rates.
Tyco Chief Executive Officer George
Oliver said, "We had another strong performance in the
second quarter, demonstrating our ongoing effectiveness at
executing on our growth strategy and operational improvement
initiatives. We are starting to see an uplift in the top
line, as continued growth in service and products revenue is now
being supplemented with growth in installation revenue.
"Looking forward, the announced divestiture of our ADT Korea
business and the sale of our remaining interest in Atkore provide
an opportunity to redeploy significant capital to maximize
long-term shareholder value. At the halfway point in our three year
growth strategy outlined at our 2012 Investor Day, we are well
positioned to deliver on our 15% EPS CAGR target through 2015."
Organic revenue, free cash flow, operating income, segment
operating income, and diluted EPS from continuing operations before
special items are non-GAAP financial measures and are described
below. For a reconciliation of these non-GAAP measures, see the
attached tables. Additional schedules as well as second quarter
review slides can be found in the Investor Relations section of
Tyco's website at http://investors.tyco.com. Certain tables contain
the symbol "-" to denote that the percentage change is not
meaningful.
SEGMENT RESULTS
The financial results presented in the tables below are in
accordance with GAAP unless otherwise indicated. All dollar amounts
are pre-tax and stated in millions. As announced on March 3, 2014, Tyco reached a definitive
agreement to sell its South Korean security business, ADT Korea. As
such, beginning in the second fiscal quarter, the company has
classified this business as a discontinued operation. The revenue
and operating income results shown below have been adjusted to
reflect this change in all periods presented. All comparisons are
to the fiscal second quarter of 2013 unless otherwise
indicated.
North America Installation & Services
|
Q2 2014
|
Q2 2013
|
% Change
|
|
|
|
Revenue
|
$939
|
$953
|
(1%)
|
|
|
|
Operating
Income
|
$99
|
$79
|
25%
|
|
|
|
Operating
Margin
|
10.5%
|
8.3%
|
|
|
|
|
Special
Items
|
($18)
|
($25)
|
|
|
|
|
Operating Income
Before Special Items
|
$117
|
$104
|
13%
|
|
|
|
Operating Margin
Before Special Items
|
12.5%
|
10.9%
|
|
|
|
|
Revenue of $939 million decreased
1% in the quarter due to the divestiture of the guarding business
and unfavorable changes in foreign currency exchange rates. Organic
revenue increased 1%, as 2% growth in service was partially offset
by a 1% decline in installation revenue. Backlog of $2.4 billion was consistent with the prior year.
On a quarter sequential basis, backlog increased 2%, excluding the
impact of foreign currency.
Operating income for the quarter was $99
million and the operating margin was 10.5%. Special items of
$18 million consisted primarily of
separation charges. Before special items, operating income was
$117 million and the operating margin
was 12.5%. The 160 basis point improvement in operating margin
before special items resulted from a higher mix of service revenue,
improved execution in installation and productivity benefits.
Rest of World Installation & Services
|
Q2 2014
|
Q2 2013
|
% Change
|
|
|
|
Revenue
|
$943
|
$943
|
-
|
|
|
|
Operating
Income
|
$103
|
$77
|
34%
|
|
|
|
Operating
Margin
|
10.9%
|
8.2%
|
|
|
|
|
Special
Items
|
($6)
|
($14)
|
|
|
|
|
Operating Income
Before Special Items
|
$109
|
$91
|
20%
|
|
|
|
Operating Margin
Before Special Items
|
11.6%
|
9.7%
|
|
|
|
|
Revenue of $943 million was
consistent with the prior year. Organic revenue growth of 2%
consisted of 1% growth in service and 3% growth in installation
revenue. Acquisitions contributed 4% to revenue growth, which
was more than offset by the impact of divestitures and changes in
foreign currency exchange rates. Backlog of $2.3 billion increased 11% year over year and 4%
on a quarter sequential basis, excluding the impact of foreign
currency.
Operating income for the quarter was $103
million and the operating margin was 10.9%. Special items of
$6 million consisted primarily of
restructuring charges. Before special items, operating income was
$109 million, and the operating
margin increased 190 basis points to 11.6%. This quarter's
operating income includes a $21
million insurance recovery related to improper recording of
revenue in China, which was
disclosed in 2012. The benefit of this recovery more than offset
the softness in Australia and
incremental investments in our Growth Markets.
Global Products
|
Q2 2014
|
Q2 2013
|
% Change
|
|
|
|
Revenue
|
$605
|
$578
|
5%
|
|
|
|
Operating
Income
|
$107
|
$0
|
-
|
|
|
|
Operating
Margin
|
17.7%
|
-
|
|
|
|
|
Special
Items
|
($2)
|
($97)
|
|
|
|
|
Operating Income
Before Special Items
|
$109
|
$97
|
12%
|
|
|
|
Operating Margin
Before Special Items
|
18.0%
|
16.8%
|
|
|
|
|
Revenue of $605 million increased
5% in the quarter, including a 3% benefit from acquisitions.
Organic revenue grew 2%.
Operating income for the quarter was $107
million and the operating margin was 17.7%. Special items of
$2 million consisted of restructuring
charges. Before special items, operating income was $109 million and the operating margin increased
120 basis points to 18.0%. Operating leverage on increased revenue
coupled with a greater mix of higher margin products as well as
productivity benefits more than offset non-cash purchase
accounting, which negatively impacted the operating margin by 30
basis points. The prior year's operating income included a
$94 million pre-tax legacy
environmental charge.
OTHER ITEMS
- Cash from operating activities was $262
million and free cash flow was $187
million, which included a cash outflow of $133 million, primarily related to sharing of a
recovery from a legacy matter, environmental, restructuring and
separation activities. Adjusted free cash flow for the quarter was
$320 million. The Company completed
the quarter with $495 million in cash
and cash equivalents.
- Corporate expense before special items was $54 million for the quarter and $61 million on a GAAP basis.
- The tax rate before special items was 16.9% for the
quarter.
- As previously disclosed, the Company's Board of Directors
approved an additional $1.75 billion
authorization for share repurchases. Combined with the remaining
$250 million from the previous
authorization, the total share repurchase authorization is now
$2 billion.
- As previously disclosed, during the quarter the Company reached
a definitive agreement to divest its South Korean security
business, ADT Korea, in a cash transaction valued at approximately
$1.93 billion. The results of this
business are reflected in discontinued operations for all periods
presented.
- As previously disclosed on April 9,
2014, the Company's remaining stake in Atkore International,
Tyco's former electrical and metal products business, was redeemed
by Atkore in a cash transaction for $250
million.
ABOUT TYCO
Tyco (NYSE: TYC) is the world's largest
pure-play fire protection and security company. Tyco provides more
than three million customers around the globe with the latest fire
protection and security products and services. A company with $10+
billion in annual revenue, Tyco has over 65,000 employees in more
than 1,000 locations across 50 countries serving various end
markets, including commercial, institutional, governmental, retail,
industrial, energy, residential and small business. For more
information, visit www.tyco.com.
CONFERENCE CALL AND WEBCAST
Management will discuss
the company's second quarter results for 2014 during a conference
call and webcast today beginning at 8:00
a.m. ET. Today's conference call for investors can be
accessed in the following ways:
- Live via webcast – through the Investor Relations section of
Tyco's website at http://investors.tyco.com,
- Live via telephone (for "listen-only" participants and those
who would like to ask a question) – by dialing 800-857-9797 (in
the United States) or 517-308-9262
(outside the United States),
passcode "Tyco",
- Replay via telephone – by dialing 800-283-0668 (in the United States) or 402-998-0898 (outside
the United States), passcode 2018,
from 10:00 a.m. (ET) on April 25, 2014, until 11:59 p.m. (ET) on May 2,
2014, and
- Replay via webcast – through the "Presentations & Webcasts"
link on the Investor Relations section of Tyco's website at
http://investors.tyco.com.
NON-GAAP MEASURES
Organic revenue, free cash flow (outflow) (FCF), and income
from continuing operations, earnings per share (EPS) from
continuing operations, operating income and segment operating
income, in each case "before special items," are non-GAAP measures
and should not be considered replacements for GAAP results.
Organic revenue is a useful measure used by the company to
measure the underlying results and trends in the business. The
difference between reported net revenue (the most comparable GAAP
measure) and organic revenue (the non-GAAP measure) consists of the
impact from foreign currency, acquisitions and divestitures, and
other changes that either do not reflect the underlying results and
trends of the Company's businesses or are not completely under
management's control. There are limitations associated with organic
revenue, such as the fact that, as presented herein, the metric may
not be comparable to similarly titled measures reported by other
companies. These limitations are best addressed by using organic
revenue in combination with the GAAP numbers. Organic revenue may
be used as a component in the company's incentive compensation
plans.
FCF is a useful measure of the company's cash that permits
management and investors to gain insight into the number that
management employs to measure cash that is free from any
significant existing obligation and is available to service debt
and make investments. The difference between Cash Flows from
Operating Activities (the most comparable GAAP measure) and FCF
(the non-GAAP measure) consists mainly of significant cash flows
that the company believes are useful to identify. It, or a measure
that is based on it, may be used as a component in the company's
incentive compensation plans. The difference reflects the impact
from:
- net capital expenditures,
- dealer generated accounts and bulk accounts
purchased,
- cash paid for purchase accounting and holdback liabilities,
and
- voluntary pension contributions.
Capital expenditures and dealer generated and bulk accounts
purchased are subtracted because they represent long-term
investments that are required for normal business activities. Cash
paid for purchase accounting and holdback liabilities is subtracted
because these cash outflows are not available for general corporate
uses. Voluntary pension contributions are added because this
activity is driven by economic financing decisions rather than
operating activity. In addition, the company presents adjusted free
cash flow, which is free cash flow, adjusted to exclude the cash
impact of the special items highlighted below. This number provides
information to investors regarding the cash impact of certain items
management believes are useful to identify, as described
below.
The limitation associated with using these cash flow metrics
is that they adjust for cash items that are ultimately within
management's and the Board of Directors' discretion to direct and
therefore may imply that there is less or more cash that is
available for the company's programs than the most comparable GAAP
measure. Furthermore, these non-GAAP metrics may not be comparable
to similarly titled measures reported by other companies. These
limitations are best addressed by using FCF in combination with the
GAAP cash flow numbers.
The company has presented its income and EPS from continuing
operations, operating income and segment operating income before
special items. Special items include charges and gains related to
divestitures, acquisitions, restructurings, impairments, certain
changes to accounting methodologies, legacy legal and tax charges
and other income or charges that may mask the underlying operating
results and/or business trends of the company or business segment,
as applicable. The company utilizes these measures to assess
overall operating performance and segment level core operating
performance, as well as to provide insight to management in
evaluating overall and segment operating plan execution and
underlying market conditions. The Company also presents its
effective tax rate as adjusted for special items for consistency,
and presents corporate expense excluding special items. One or more
of these measures may be used as components in the company's
incentive compensation plans. These measures are useful for
investors because they may permit more meaningful comparisons of
the company's underlying operating results and business trends
between periods. The difference between income and EPS from
continuing operations before special items and income and EPS from
continuing operations (the most comparable GAAP measures) consists
of the impact of the special items noted above on the applicable
GAAP measure. The limitation of these measures is that they exclude
the impact (which may be material) of items that increase or
decrease the company's reported GAAP metrics, and these non-GAAP
metrics may not be comparable to similarly titled measures reported
by other companies. These limitations are best addressed by using
the non-GAAP measures in combination with the most comparable GAAP
measures in order to better understand the amounts, character and
impact of any increase or decrease on reported results.
The company provides general corporate services to its
segments and those costs are reported in the "Corporate and Other"
segment. This segment's operating income (loss) is presented as
"Corporate Expense." Segment Operating Income represents Tyco's
operating income excluding the Corporate and Other segment, and
reflects the results of Tyco's three operating segments. Segment
Operating Income before special items reflects GAAP operating
income adjusted for the special items noted in the paragraph
above.
FORWARD-LOOKING STATEMENTS
This press release contains a number of forward-looking
statements. In many cases forward-looking statements are identified
by words, and variations of words, such as "anticipate",
"estimate", "believe", "commit", "continue", "could", "intend",
"may", "plan", "potential", "predict", "positioned", "should",
"will", "expect", "objective", "projection", "forecast", "goal",
"guidance", "outlook", "effort", "target", and other similar words.
However, the absence of these words does not mean the statements
are not forward-looking. Examples of forward-looking
statements include, but are not limited to, revenue, operating
income and other financial projections, statements regarding the
health and growth prospects of the industries and end markets in
which Tyco operates, the leadership, resources, potential,
priorities, and opportunities for Tyco in the future, statements
regarding earnings and other projections, Tyco's credit profile,
capital allocation priorities and other capital market related
activities, and statements regarding Tyco's acquisition,
divestiture, restructuring and other productivity initiatives. The
forward-looking statements in this press release are based on
current expectations and assumptions that are subject to risks and
uncertainties, many of which are outside of our control, and could
cause results to materially differ from expectations. Such risks
and uncertainties include, but are not limited to: economic,
business, competitive, technological or regulatory factors that
adversely impact Tyco or the markets and industries in which it
competes; unanticipated expenses such as litigation or legal
settlement expenses; tax law changes; and industry specific events
or conditions that may adversely impact revenue or other financial
projections. Actual results could differ materially from
anticipated results. Tyco is under no obligation (and expressly
disclaims any obligation) to update its forward-looking statements.
More detailed information about these and other factors is set
forth in Tyco's Annual Report on Form 10-K for the fiscal year
ended Sept. 27, 2013 and in
subsequent filings with the Securities and Exchange
Commission.
TYCO INTERNATIONAL
LTD.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in millions,
except per share data)
|
(Unaudited)
|
|
|
|
Quarters Ended
|
|
Six Months Ended
|
|
|
March 28,
2014
|
|
March 29,
2013
|
|
March 28,
2014
|
|
March 29,
2013
|
|
|
|
|
|
Revenue from product
sales
|
|
$
|
1,470
|
|
|
$
|
1,424
|
|
|
$
|
2,947
|
|
|
$
|
2,854
|
|
Service
revenue
|
|
1,017
|
|
|
1,050
|
|
|
2,042
|
|
|
2,091
|
|
Net
revenue
|
|
2,487
|
|
|
2,474
|
|
|
4,989
|
|
|
4,945
|
|
Cost of product
sales
|
|
1,015
|
|
|
983
|
|
|
2,022
|
|
|
1,975
|
|
Cost of
services
|
|
577
|
|
|
608
|
|
|
1,153
|
|
|
1,207
|
|
Selling, general and
administrative expenses
|
|
639
|
|
|
766
|
|
|
1,213
|
|
|
1,422
|
|
Separation
costs
|
|
1
|
|
|
-
|
|
|
1
|
|
|
5
|
|
Restructuring and
asset impairment charges, net
|
|
7
|
|
|
22
|
|
|
10
|
|
|
29
|
|
Operating
income
|
|
248
|
|
|
95
|
|
|
590
|
|
|
307
|
|
Interest
income
|
|
3
|
|
|
3
|
|
|
6
|
|
|
7
|
|
Interest
expense
|
|
(25)
|
|
|
(25)
|
|
|
(49)
|
|
|
(49)
|
|
Other expense,
net
|
|
(1)
|
|
|
(20)
|
|
|
(2)
|
|
|
(29)
|
|
Income from
continuing operations before income taxes
|
|
225
|
|
|
53
|
|
|
545
|
|
|
236
|
|
Income tax (expense)
benefit
|
|
(37)
|
|
|
2
|
|
|
(107)
|
|
|
(33)
|
|
Equity loss in
earnings of unconsolidated subsidiaries
|
|
(5)
|
|
|
(6)
|
|
|
(9)
|
|
|
(12)
|
|
Income from
continuing operations
|
|
183
|
|
|
49
|
|
|
429
|
|
|
191
|
|
Income from
discontinued operations, net of income taxes
|
|
24
|
|
|
21
|
|
|
50
|
|
|
44
|
|
Net
income
|
|
207
|
|
|
70
|
|
|
479
|
|
|
235
|
|
Less: noncontrolling
interest in subsidiaries net (loss) income
|
|
-
|
|
|
(2)
|
|
|
2
|
|
|
-
|
|
Net income
attributable to Tyco common shareholders
|
|
$
|
207
|
|
|
$
|
72
|
|
|
$
|
477
|
|
|
$
|
235
|
|
Amounts
attributable to Tyco common shareholders:
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
|
183
|
|
|
$
|
51
|
|
|
$
|
427
|
|
|
$
|
191
|
|
Income from
discontinued operations
|
|
24
|
|
|
21
|
|
|
50
|
|
|
44
|
|
Net income
attributable to Tyco common shareholders
|
|
$
|
207
|
|
|
$
|
72
|
|
|
$
|
477
|
|
|
$
|
235
|
|
Basic earnings per
share attributable to Tyco common shareholders:
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
|
0.40
|
|
|
$
|
0.11
|
|
|
$
|
0.92
|
|
|
$
|
0.41
|
|
Income from
discontinued operations
|
|
0.05
|
|
|
0.05
|
|
|
0.11
|
|
|
0.09
|
|
Net income
attributable to Tyco common shareholders
|
|
$
|
0.45
|
|
|
$
|
0.16
|
|
|
$
|
1.03
|
|
|
$
|
0.50
|
|
Diluted earnings
per share attributable to Tyco common shareholders:
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
|
0.39
|
|
|
$
|
0.11
|
|
|
$
|
0.91
|
|
|
$
|
0.40
|
|
Income from
discontinued operations
|
|
0.05
|
|
|
0.05
|
|
|
0.10
|
|
|
0.09
|
|
Net income
attributable to Tyco common shareholders
|
|
$
|
0.44
|
|
|
$
|
0.16
|
|
|
$
|
1.01
|
|
|
$
|
0.49
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
461
|
|
|
466
|
|
|
462
|
|
|
466
|
|
Diluted
|
|
469
|
|
|
474
|
|
|
470
|
|
|
473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: These financial
statements should be read in conjunction with the Consolidated
Financial Statements and accompanying notes contained in the
Company's Annual Report on Form 10-K for the fiscal year ended
September 27, 2013 and Quarterly Report on Form 10-Q for the
quarter ended December 27, 2013.
|
|
TYCO INTERNATIONAL
LTD.
|
RESULTS OF
SEGMENTS
|
(in
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
March 28,
2014
|
|
|
|
March 29,
2013
|
|
|
|
March 28,
2014
|
|
|
|
March 29,
2013
|
|
|
Net
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA
Installation & Services
|
|
$
|
939
|
|
|
|
|
$
|
953
|
|
|
|
|
$
|
1,896
|
|
|
|
|
$
|
1,929
|
|
|
|
ROW
Installation & Services
|
|
943
|
|
|
|
|
943
|
|
|
|
|
1,923
|
|
|
|
|
1,904
|
|
|
|
Global
Products
|
|
605
|
|
|
|
|
578
|
|
|
|
|
1,170
|
|
|
|
|
1,112
|
|
|
|
Total Net
Revenue
|
|
$
|
2,487
|
|
|
|
|
$
|
2,474
|
|
|
|
|
$
|
4,989
|
|
|
|
|
$
|
4,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
and Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA
Installation & Services
|
|
$
|
99
|
|
|
10.5 %
|
|
$
|
79
|
|
|
8.3 %
|
|
$
|
216
|
|
|
11.4 %
|
|
$
|
187
|
|
|
9.7 %
|
ROW
Installation & Services
|
|
103
|
|
|
10.9 %
|
|
77
|
|
|
8.2 %
|
|
196
|
|
|
10.2 %
|
|
168
|
|
|
8.8 %
|
Global
Products
|
|
107
|
|
|
17.7 %
|
|
-
|
|
|
- %
|
|
193
|
|
|
16.5 %
|
|
74
|
|
|
6.7 %
|
Corporate and
Other
|
|
(61)
|
|
|
N/M
|
(61)
|
|
|
N/M
|
(15)
|
|
|
N/M
|
|
(122)
|
|
|
N/M
|
Operating Income
and Margin
|
|
$
|
248
|
|
|
10.0 %
|
|
$
|
95
|
|
|
3.8 %
|
|
$
|
590
|
|
|
11.8 %
|
|
$
|
307
|
|
|
6.2 %
|
TYCO INTERNATIONAL
LTD.
|
CONSOLIDATED
BALANCE SHEETS
|
(in
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
March 28,
2014
|
|
September 27,
2013
|
Assets
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
495
|
|
|
$
|
563
|
|
Accounts receivable,
net
|
|
1,674
|
|
|
1,718
|
|
Inventories
|
|
661
|
|
|
647
|
|
Prepaid expenses and
other current assets
|
|
854
|
|
|
850
|
|
Deferred income
taxes
|
|
250
|
|
|
250
|
|
Assets held for
sale
|
|
839
|
|
|
|
|
|
|
828
|
|
Total Current
Assets
|
|
4,773
|
|
|
4,856
|
|
Property, plant and
equipment, net
|
|
1,269
|
|
|
1,285
|
|
Goodwill
|
|
4,176
|
|
|
4,163
|
|
Intangible assets,
net
|
|
773
|
|
|
791
|
|
Other
assets
|
|
944
|
|
|
|
|
1,081
|
|
Total
Assets
|
|
$
|
11,935
|
|
|
|
|
|
$
|
12,176
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Loans payable and
current maturities of long-term debt
|
|
$
|
20
|
|
|
$
|
20
|
|
Accounts
payable
|
|
783
|
|
|
851
|
|
Accrued and other
current liabilities
|
|
1,962
|
|
|
1,859
|
|
Deferred
revenue
|
|
420
|
|
|
394
|
|
Liabilities held for
sale
|
|
221
|
|
|
|
|
|
|
225
|
|
Total Current
Liabilities
|
|
3,406
|
|
|
3,349
|
|
Long-term
debt
|
|
1,442
|
|
|
1,443
|
|
Deferred
revenue
|
|
352
|
|
|
370
|
|
Other
liabilities
|
|
1,667
|
|
|
|
|
|
|
1,881
|
|
Total
Liabilities
|
|
6,867
|
|
|
7,043
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
12
|
|
|
12
|
|
|
|
|
|
|
Total Tyco
shareholders' equity
|
|
5,031
|
|
|
5,098
|
|
Nonredeemable
noncontrolling interest
|
|
25
|
|
|
|
23
|
|
Total
Equity
|
|
5,056
|
|
|
|
5,121
|
|
Total Liabilities,
Redeemable Noncontrolling Interest and Equity
|
|
$
|
11,935
|
|
|
|
$
|
12,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: These financial
statements should be read in conjunction with the Consolidated
Financial Statements and accompanying notes contained in the
Company's Annual Report on Form 10-K for the fiscal year ended
September 27, 2013 and Quarterly Report on Form 10-Q for the
quarter ended December 27, 2013.
|
TYCO INTERNATIONAL
LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
For the Quarters
Ended
|
|
For the Six Months
Ended
|
|
|
March 28,
2014
|
|
March 29,
2013
|
|
March 28,
2014
|
|
March 29,
2013
|
|
|
|
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
|
Net income
attributable to Tyco common shareholders
|
|
$
|
207
|
|
|
72
|
|
|
477
|
|
|
235
|
|
Noncontrolling
interest in subsidiaries net income
|
|
-
|
|
|
(2)
|
|
|
2
|
|
|
-
|
|
Income from
discontinued operations, net of income taxes
|
|
(24)
|
|
|
(21)
|
|
|
(50)
|
|
|
(44)
|
|
Income from
continuing operations
|
|
183
|
|
|
49
|
|
|
429
|
|
|
191
|
|
Adjustments to
reconcile net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
87
|
|
|
95
|
|
|
181
|
|
|
189
|
|
Non-cash compensation
expense
|
|
16
|
|
|
17
|
|
|
31
|
|
|
31
|
|
Deferred income
taxes
|
|
5
|
|
|
(55)
|
|
|
56
|
|
|
(45)
|
|
Provision for losses
on accounts receivable and inventory
|
|
14
|
|
|
19
|
|
|
24
|
|
|
36
|
|
Legacy legal
matters
|
|
-
|
|
|
-
|
|
|
(92)
|
|
|
-
|
|
Income
(loss) on divestitures
|
|
1
|
|
|
9
|
|
|
(2)
|
|
|
6
|
|
Other non-cash
items
|
|
9
|
|
|
33
|
|
|
19
|
|
|
33
|
|
Changes in assets and
liabilities, net of the effects of acquisitions and
divestitures:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
16
|
|
|
11
|
|
|
35
|
|
|
6
|
|
Contracts in
progress
|
|
(15)
|
|
|
(11)
|
|
|
(1)
|
|
|
(13)
|
|
Inventories
|
|
7
|
|
|
(5)
|
|
|
(24)
|
|
|
(33)
|
|
Prepaid expenses and
other current assets
|
|
25
|
|
|
(1)
|
|
|
(29)
|
|
|
34
|
|
Accounts
payable
|
|
(8)
|
|
|
(41)
|
|
|
(48)
|
|
|
(87)
|
|
Accrued and other
liabilities
|
|
(116)
|
|
|
37
|
|
|
(222)
|
|
|
(195)
|
|
Deferred
revenue
|
|
51
|
|
|
52
|
|
|
11
|
|
|
5
|
|
Other
|
|
(13)
|
|
|
(14)
|
|
|
(13)
|
|
|
(12)
|
|
Net cash provided by
operating activities
|
|
262
|
|
|
195
|
|
|
355
|
|
|
146
|
|
Net cash provided by
discontinued operating activities
|
|
58
|
|
|
49
|
|
|
88
|
|
|
63
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(72)
|
|
|
(76)
|
|
|
(135)
|
|
|
(140)
|
|
Proceeds from
disposal of assets
|
|
2
|
|
|
1
|
|
|
6
|
|
|
4
|
|
Acquisition of
businesses, net of cash acquired
|
|
-
|
|
|
(15)
|
|
|
(54)
|
|
|
(38)
|
|
Acquisition of dealer
generated customer accounts and bulk account purchases
|
|
(5)
|
|
|
(5)
|
|
|
(16)
|
|
|
(10)
|
|
Sales and maturities
of investments
|
|
29
|
|
|
28
|
|
|
141
|
|
|
39
|
|
Purchases of
investments
|
|
(8)
|
|
|
(28)
|
|
|
(40)
|
|
|
(119)
|
|
Other
|
|
-
|
|
|
(14)
|
|
|
6
|
|
|
(6)
|
|
Net cash used in
investing activities
|
|
(54)
|
|
|
(109)
|
|
|
(92)
|
|
|
(270)
|
|
Net cash used in
discontinued investing activities
|
|
(28)
|
|
|
(27)
|
|
|
(57)
|
|
|
(54)
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of short-term debt
|
|
405
|
|
|
100
|
|
|
715
|
|
|
100
|
|
Repayment of
short-term debt
|
|
(565)
|
|
|
(101)
|
|
|
(715)
|
|
|
(101)
|
|
Proceeds from
exercise of share options
|
|
22
|
|
|
48
|
|
|
62
|
|
|
94
|
|
Dividends
paid
|
|
(74)
|
|
|
(70)
|
|
|
(148)
|
|
|
(140)
|
|
Repurchase of common
shares by treasury
|
|
-
|
|
|
(150)
|
|
|
(250)
|
|
|
(200)
|
|
Transfer from (to)
discontinued operations
|
|
30
|
|
|
23
|
|
|
31
|
|
|
(23)
|
|
Other
|
|
(1)
|
|
|
(1)
|
|
|
(10)
|
|
|
(17)
|
|
Net cash used in
financing activities
|
|
(183)
|
|
|
(151)
|
|
|
(315)
|
|
|
(287)
|
|
Net cash (used in)
provided by discontinued financing activities
|
|
(30)
|
|
|
(23)
|
|
|
(31)
|
|
|
23
|
|
Effect of currency
translation on cash
|
|
(9)
|
|
|
(6)
|
|
|
(16)
|
|
|
(3)
|
|
Net decrease in
cash and cash equivalents
|
|
16
|
|
|
(72)
|
|
|
(68)
|
|
|
(382)
|
|
Less: net increase
in cash and cash equivalents related to discontinued
operations
|
|
-
|
|
|
(1)
|
|
|
-
|
|
|
32
|
|
Cash and cash
equivalents at beginning of period
|
|
479
|
|
|
501
|
|
|
563
|
|
|
844
|
|
Cash and cash
equivalents at end of period
|
|
$
|
495
|
|
|
$
|
430
|
|
|
$
|
495
|
|
|
$
|
430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
"Free Cash Flow":
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
$
|
262
|
|
|
$
|
195
|
|
|
$
|
355
|
|
|
$
|
146
|
|
Capital expenditures,
net
|
|
(70)
|
|
|
(75)
|
|
|
(129)
|
|
|
(136)
|
|
Acquisition of dealer
generated customer accounts and bulk account
purchases
|
|
(5)
|
|
|
(5)
|
|
|
(16)
|
|
|
(10)
|
|
Purchase accounting
and holdback liabilities
|
|
-
|
|
|
(5)
|
|
|
-
|
|
|
(6)
|
|
Free Cash
Flow
|
|
$
|
187
|
|
|
$
|
110
|
|
|
$
|
210
|
|
|
$
|
(6)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
"Adjusted Free Cash Flow":
|
|
|
|
|
|
|
|
|
CIT
settlement
|
|
$
|
43
|
|
|
$
|
-
|
|
|
$
|
(17)
|
|
|
$
|
-
|
|
IRS litigation
costs
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
Separation
costs
|
|
22
|
|
|
48
|
|
|
44
|
|
|
148
|
|
Restructuring
and repositioning costs
|
|
27
|
|
|
22
|
|
|
56
|
|
|
41
|
|
Environmental
remediation payments
|
|
23
|
|
|
3
|
|
|
54
|
|
|
13
|
|
Legal
settlements
|
|
-
|
|
|
-
|
|
|
-
|
|
|
33
|
|
Net asbestos
(recoveries) / payments
|
|
4
|
|
|
8
|
|
|
7
|
|
|
(50)
|
|
Cash (receipt)
/ payment from Covidien/TE Connectivity
|
|
3
|
|
|
-
|
|
|
2
|
|
|
(5)
|
|
Cash (receipt)
/ payment from ADT Resi/Pentair
|
|
11
|
|
|
-
|
|
|
11
|
|
|
-
|
|
Special
Items
|
|
$
|
133
|
|
|
$
|
81
|
|
|
$
|
158
|
|
|
$
|
180
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free Cash
Flow
|
|
$
|
320
|
|
|
$
|
191
|
|
|
$
|
368
|
|
|
$
|
174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE: Free cash flow
is a non-GAAP measure. See description of non-GAAP measures
contained in this release.
|
TYCO INTERNATIONAL
LTD.
|
ORGANIC GROWTH
RECONCILIATION - REVENUE
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
March 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue for
the
Quarter Ended
March 29, 2013
|
|
Adjustments
|
|
Adjusted
Fiscal
2013 Base
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue for
the
Quarter Ended
March 28, 2014
|
|
|
|
Divestitures /
Other (2)
|
|
|
Foreign Currency
|
|
Acquisitions
|
|
Organic Revenue(1)
|
|
NA Installation &
Services
|
|
$
|
953
|
|
|
$
|
(18)
|
|
|
(1.9)%
|
|
|
$
|
935
|
|
|
$
|
(10)
|
|
|
(1.0)%
|
|
|
$
|
5
|
|
|
0.5
|
%
|
|
$
|
9
|
|
|
1.0
|
%
|
|
$
|
939
|
|
|
(1.5)
|
%
|
ROW Installation
& Services
|
|
943
|
|
|
(20)
|
|
|
(2.1)%
|
|
|
923
|
|
|
(31)
|
|
|
(3.3)%
|
|
|
34
|
|
|
3.6
|
%
|
|
17
|
|
|
1.8
|
%
|
|
943
|
|
|
-
|
%
|
Global
Products
|
|
578
|
|
|
1
|
|
|
0.2%
|
|
|
579
|
|
|
(4)
|
|
|
(0.7)%
|
|
|
17
|
|
|
2.9
|
%
|
|
13
|
|
|
2.2
|
%
|
|
605
|
|
|
4.7
|
%
|
Total Net
Revenue
|
|
$
|
2,474
|
|
|
$
|
(37)
|
|
|
(1.5)%
|
|
|
$
|
2,437
|
|
|
$
|
(45)
|
|
|
(1.8)%
|
|
|
$
|
56
|
|
|
2.3
|
%
|
|
$
|
39
|
|
|
1.6
|
%
|
|
$
|
2,487
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Organic revenue growth percentage
based on adjusted fiscal 2013 base revenue.
|
|
(2)Amounts
include the transfer of a business from NA Installation &
Services to Global Products.
|
|
|
|
|
Six Months Ended
March 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue for
the
Six Months Ended
March 29, 2013
|
|
Adjustments
|
|
Adjusted
Fiscal
2013 Base
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue for
the
Six Months Ended
March 28, 2014
|
|
|
|
Divestitures /
Other (2)
|
|
|
Foreign Currency
|
|
Acquisitions
|
|
|
Organic Revenue(1)
|
|
NA Installation &
Services
|
|
$
|
1,929
|
|
|
$
|
(36)
|
|
|
(1.9)%
|
|
|
$
|
1,893
|
|
|
$
|
(17)
|
|
|
(0.9)%
|
|
|
$
|
9
|
|
|
0.5
|
%
|
|
|
$
|
11
|
|
|
0.6
|
%
|
|
$
|
1,896
|
|
|
(1.7)
|
%
|
ROW Installation
& Services
|
|
1,904
|
|
|
(27)
|
|
|
(1.4)%
|
|
|
1,877
|
|
|
(55)
|
|
|
(2.9)%
|
|
|
72
|
|
|
3.8
|
%
|
|
|
29
|
|
|
1.5
|
%
|
|
1,923
|
|
|
1.0
|
%
|
Global
Products
|
|
1,112
|
|
|
2
|
|
|
0.2 %
|
|
|
1,114
|
|
|
(7)
|
|
|
(0.6)%
|
|
|
37
|
|
|
3.3
|
%
|
|
|
26
|
|
|
2.3
|
%
|
|
1,170
|
|
|
5.2
|
%
|
Total Net
Revenue
|
|
$
|
4,945
|
|
|
$
|
(61)
|
|
|
(1.2)%
|
|
|
$
|
4,884
|
|
|
$
|
(79)
|
|
|
(1.6)%
|
|
|
$
|
118
|
|
|
2.4
|
%
|
|
|
$
|
66
|
|
|
1.4
|
%
|
|
$
|
4,989
|
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Organic revenue growth percentage
based on adjusted fiscal 2013 base revenue.
|
|
(2)Amounts
include the transfer of a business from NA Installation &
Services to Global Products.
|
Earnings Per Share
Summary
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
|
March 28,
2014
|
|
March 29,
2013
|
Diluted EPS from
Continuing Operations Attributable to Tyco Shareholders
(GAAP)
|
|
$
|
0.39
|
|
|
$
|
0.11
|
|
|
|
|
|
|
expense /
(benefit)
|
|
|
|
|
|
|
|
|
|
Restructuring and
repositioning activities
|
|
0.02
|
|
|
0.04
|
|
|
|
|
|
|
Separation costs
included in SG&A
|
|
0.02
|
|
|
0.04
|
|
|
|
|
|
|
(Gains) / losses on
divestitures, net included in SG&A
|
|
-
|
|
|
0.02
|
|
|
|
|
|
|
Environmental
remediation
|
|
-
|
|
|
0.12
|
|
|
|
|
|
|
Tax items
|
|
0.01
|
|
|
-
|
|
|
|
|
|
|
2012 Tax Sharing
Agreement
|
|
0.01
|
|
|
0.04
|
|
|
|
|
|
|
Total Before
Special Items
|
|
$
|
0.45
|
|
|
$
|
0.37
|
|
|
Note: The prior
period has been recast to present ADT Korea as a discontinued
operation.
|
Tyco International
Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended March 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense /
(benefit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA Installation &
Services
|
|
|
|
ROW Installation &
Services
|
|
|
|
Global Products
|
|
|
|
Segment Revenue
|
|
|
|
Corporate and Other
|
|
|
|
Total
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
(GAAP)
|
|
$939
|
|
|
|
$943
|
|
|
|
$605
|
|
|
|
$2,487
|
|
|
|
$-
|
|
|
|
$2,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA
Installation
& Services
|
|
Margin
|
|
ROW
Installation
& Services
|
|
Margin
|
|
Global
Products
|
|
Margin
|
|
Segment
Operating
Income
|
|
Margin
|
|
Corporate
and
Other
|
|
Margin
|
|
Total
Operating
Income
|
|
Margin
|
|
Interest
(Expense),
net
|
|
Other
(Expense),
net
|
|
Income
Tax
(Expense)
|
|
Equity in
earnings
of
unconsolidated
subsidiaries
|
|
Noncontrolling
Interest
|
|
Income
from
Continuing
Operations Attributable to
Tyco
Shareholders
|
Diluted
EPS from
Continuing
Operations
Attributable
to Tyco
Shareholders
|
Operating
Income (GAAP)
|
|
$99
|
|
10.5 %
|
|
$103
|
|
10.9 %
|
|
$107
|
|
17.7 %
|
|
$309
|
|
12.4 %
|
|
($61)
|
|
N/M
|
|
$248
|
|
10.0 %
|
|
($22)
|
|
($1)
|
|
($37)
|
|
($5)
|
|
$-
|
|
$183
|
$0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
repositioning activities
|
|
3
|
|
|
|
4
|
|
|
|
2
|
|
|
|
9
|
|
|
|
7
|
|
|
|
16
|
|
|
|
|
|
|
|
(6)
|
|
|
|
|
|
10
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation costs
included in
SG&A
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
(5)
|
|
|
|
|
|
10
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gains) / losses on
divestitures, net included in SG&A
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition /
integration costs
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IRS litigation
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
4
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 Tax Sharing
Agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
3
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Before
Special Items
|
|
$117
|
|
12.5 %
|
|
$109
|
|
11.6 %
|
|
$109
|
|
18.0 %
|
|
$335
|
|
13.5 %
|
|
($54)
|
|
N/M
|
|
$281
|
|
11.3 %
|
|
($22)
|
|
$2
|
|
($44)
|
|
($5)
|
|
$-
|
|
$212
|
$0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Share
Outstanding
|
|
|
469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding - Before Special Items
|
469
|
Tyco International
Ltd.
|
For the Quarter
Ended March 29, 2013
|
(in millions,
except per share data)
|
(Unaudited)
|
expense /
(benefit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA
Installation & Services
|
|
|
|
ROW
Installation & Services
|
|
|
|
Global
Products
|
|
|
|
Segment
Revenue
|
|
|
|
Corporate
and Other
|
|
|
|
Total
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
(GAAP)
|
|
$953
|
|
|
|
$943
|
|
|
|
$578
|
|
|
|
$2,474
|
|
|
|
$-
|
|
|
|
$2,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA
Installation
& Services
|
|
Margin
|
|
ROW
Installation
& Services
|
|
Margin
|
|
Global
Products
|
|
Margin
|
|
Segment
Operating
Income
|
|
Margin
|
|
Corporate
and
Other
|
|
Margin
|
|
Total
Operating
Income
|
|
Margin
|
|
Interest
(Expense),
net
|
|
Other
(Expense),
net
|
|
Income
Tax
(Expense)
|
|
Equity in
earnings
of
unconsolidated
subsidiaries
|
|
Noncontrolling
Interest
|
|
Income
from
Continuing
Operations
Attributable
to
Tyco
Shareholders
|
Diluted
EPS from
Continuing
Operations
Attributable
to Tyco
Shareholders
|
Operating
Income
(GAAP)
|
|
$79
|
|
8.3 %
|
|
$77
|
|
8.2 %
|
|
$-
|
|
- %
|
|
$156
|
|
6.3 %
|
|
($61)
|
|
N/M
|
|
$95
|
|
3.8 %
|
|
($22)
|
|
($20)
|
|
$2
|
|
($6)
|
|
$2
|
|
$51
|
$0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
repositioning activities
|
|
6
|
|
|
|
13
|
|
|
|
3
|
|
|
|
22
|
|
|
|
4
|
|
|
|
26
|
|
|
|
|
|
|
|
(7)
|
|
|
|
|
|
19
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation costs
included in SG&A
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
16
|
|
|
|
|
|
|
|
16
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
19
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gains) / losses on
divestitures, net included in SG&A
|
|
3
|
|
|
|
1
|
|
|
|
|
|
|
|
4
|
|
|
|
5
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asbestos
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
(1)
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental
remediation
|
|
|
|
|
|
|
|
|
|
94
|
|
|
|
94
|
|
|
|
|
|
|
|
94
|
|
|
|
|
|
|
|
(37)
|
|
|
|
|
|
57
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 Tax Sharing
Agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
|
|
|
|
|
|
|
|
20
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Before
Special Items
|
|
$104
|
|
10.9 %
|
|
$91
|
|
9.7 %
|
|
$97
|
|
16.8 %
|
|
$292
|
|
11.8 %
|
|
($53)
|
|
N/M
|
|
$239
|
|
9.7 %
|
|
($22)
|
|
$-
|
|
($38)
|
|
($6)
|
|
$2
|
|
$175
|
$0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: This period has
been recast to present ADT Korea as a discontinued
operation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding
|
|
|
474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding - Before Special Items
|
474
|
SOURCE Tyco