CORK, Ireland, April 29, 2016 /PRNewswire/ --
- Confirms that plans are on track for its strategic merger with
Johnson Controls to create a global leader in building products and
technology, integrated solutions and energy storage
- Enhances business portfolio with acquisition of ShopperTrak to
expand retail analytics solutions, and divestiture of Australian
fire detection and protection business
- Expands pipeline with 7% orders growth in the quarter, and
backlog increases 2% on quarter sequential basis, both excluding
the impact of foreign currency and divestitures
- Achieves 126% adjusted free cash flow conversion rate in the
quarter
- Provides guidance for third quarter 2016 EPS before special
items of $0.52 - $0.54
- Tightens guidance range for full-year EPS before special items
to $2.05 - $2.10 from previous
$2.05 - $2.20
Tyco (NYSE: TYC) today reported $0.33 in GAAP diluted earnings per share (EPS)
from continuing operations for the fiscal second quarter of 2016
and diluted EPS from continuing operations before special items of
$0.45, compared to previous guidance
of $0.44 to $0.46. Revenue of
$2.3 billion in the quarter decreased
4% versus the prior year, primarily due to a 4% negative impact of
the stronger U.S. dollar against foreign currencies. Organic
revenue declined 1% in the quarter, with acquisitions contributing
4 percentage points of growth, which was partially offset by a 3
percentage point impact related to divestitures.
"I am pleased with the progress on our planned merger with
Johnson Controls to create the global leader in building products
and technology, integrated solutions and energy storage," said Tyco
Chief Executive Officer George R.
Oliver. "Our integration teams are making great
strides, and I am more excited and confident than ever about the
value creation potential of the merger for customers, shareholders
and employees."
"While ongoing sluggish economic conditions in key sectors put
pressure on our short-cycle product markets in the second quarter,
our continued focus on productivity initiatives enabled our
Integrated Solutions & Services teams to deliver better than
expected margin performance. We have made significant
improvements in the fundamentals of our business. We are
investing for future growth through a dedicated focus on service
and installation within our North American fire and security
business, continued product innovation and our commercial
excellence initiatives. As a result of these initiatives, our
order pipeline and backlog continue to build, which positions us
well for increased growth in the second half," Mr. Oliver
added.
(Income and EPS amounts are attributable to Tyco ordinary
shareholders)
($ millions, except per-share
amounts)
|
|
Q2
2016
|
|
Q2
2015
|
|
% Change
|
|
Revenue
|
|
$
|
2,331
|
|
|
$
|
2,430
|
|
|
(4)%
|
|
|
Segment Operating
Income
|
|
$
|
289
|
|
|
$
|
306
|
|
|
(6)%
|
|
|
Restructuring and
Repositioning
|
|
$
|
(10)
|
|
|
$
|
(29)
|
|
|
(66)%
|
|
|
Operating
Income
|
|
$
|
225
|
|
|
$
|
221
|
|
|
2%
|
|
|
Income from
Continuing Operations
|
|
$
|
145
|
|
|
$
|
183
|
|
|
(21)%
|
|
|
GAAP Diluted EPS from
Continuing Operations
|
|
$
|
0.33
|
|
|
$
|
0.43
|
|
|
(23)%
|
|
|
Special
Items
|
|
$
|
0.12
|
|
|
$
|
0.07
|
|
|
|
|
Segment Operating
Income Before Special Items
|
|
$
|
311
|
|
|
$
|
331
|
|
|
(6)%
|
|
|
Restructuring and
Repositioning Before Special Items
|
|
$
|
(16)
|
|
|
$
|
(29)
|
|
|
(45)%
|
|
|
Income from
Continuing Ops Before Special Items
|
|
$
|
192
|
|
|
$
|
215
|
|
|
(11)%
|
|
|
Diluted EPS from
Continuing Ops Before Special Items
|
|
$
|
0.45
|
|
|
$
|
0.50
|
|
|
(10)%
|
|
|
Organic revenue, free cash flow, adjusted 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.
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. All comparisons
are to the fiscal second quarter of 2015 unless otherwise
indicated.
North America Integrated Solutions &
Services
|
|
Q2
2016
|
|
Q2
2015
|
|
% Change
|
|
Revenue
|
|
$
|
947
|
|
|
$
|
944
|
|
|
|
–%
|
|
Operating
Income
|
|
$
|
131
|
|
|
$
|
125
|
|
|
|
5%
|
|
Operating
Margin
|
|
13.8%
|
|
|
13.2%
|
|
|
|
|
Special
Items
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
Operating Income
Before Special Items
|
|
$
|
131
|
|
|
$
|
125
|
|
|
|
5%
|
|
Operating Margin
Before Special Items
|
|
13.8%
|
|
|
13.2%
|
|
|
|
|
Revenue of $947 million was up
slightly compared to the prior year. Modest organic revenue
growth was driven by 1% growth in integrated solutions and flat
service revenue. Acquisition growth of 1% was offset by the
weakening of the Canadian dollar. Backlog of $2.57 billion increased 4% year over year and 2%
on a quarter sequential basis, excluding the impact of foreign
currency.
Operating income for the quarter was $131
million and the operating margin before special items
improved 60 basis points to 13.8%, including a 20 basis point
headwind related to non-cash purchase accounting. Underlying
operations improved 80 basis points, driven by improved execution
and productivity benefits.
Rest of World Integrated Solutions &
Services
|
|
Q2
2016
|
|
Q2
2015
|
|
% Change
|
|
Revenue
|
|
$
|
768
|
|
|
$
|
847
|
|
|
(9)%
|
|
|
Operating
Income
|
|
$
|
57
|
|
|
$
|
67
|
|
|
(15)%
|
|
|
Operating
Margin
|
|
7.4%
|
|
|
7.9%
|
|
|
|
|
Special
Items
|
|
$
|
(20)
|
|
|
$
|
(23)
|
|
|
|
|
Operating Income
Before Special Items
|
|
$
|
77
|
|
|
$
|
90
|
|
|
(14)%
|
|
|
Operating Margin
Before Special Items
|
|
10.0%
|
|
|
10.6%
|
|
|
|
|
Revenue of $768 million decreased
9% compared to the prior year, driven by a 9% unfavorable impact
from foreign currency exchange rates. Organic revenue
declined 1%, as 1% growth in service was more than offset by a 3%
decline in integrated solutions. Acquisition growth of 8% was
mostly offset by a 7% decline related to divestitures.
Backlog of $1.91 billion increased
13% year over year, partly driven by acquisition activity, and 3%
on a quarter sequential basis, excluding the impact of foreign
currency and divestitures.
Operating income for the quarter was $57
million and the operating margin was 7.4%. Special
items of $20 million consisted
primarily of a loss on divestitures. Before special items,
operating income was $77 million and
the operating margin was 10.0%. The operating margin declined
60 basis points, including a 40 basis point impact related to
non-cash purchase accounting. Underlying operations declined
20 basis points driven by the mix of revenue decline, partially
offset by productivity benefits.
Global Products
|
|
Q2
2016
|
|
Q2
2015
|
|
% Change
|
|
Revenue
|
|
$
|
616
|
|
|
$
|
639
|
|
|
(4)%
|
|
|
Operating
Income
|
|
$
|
101
|
|
|
$
|
114
|
|
|
(11)%
|
|
|
Operating
Margin
|
|
16.4%
|
|
|
17.8%
|
|
|
|
|
Special
Items
|
|
$
|
(2)
|
|
|
$
|
(2)
|
|
|
|
|
Operating Income
Before Special Items
|
|
$
|
103
|
|
|
$
|
116
|
|
|
(11)%
|
|
|
Operating Margin
Before Special Items
|
|
16.7%
|
|
|
18.2%
|
|
|
|
|
Revenue of $616 million decreased
4% compared to the prior year. Organic revenue declined 3%,
driven by Life Safety Products due to increased Air-Pak X3
shipments during the comparable quarter in the prior year, as well
as softness in Fire Protection Products related to the high-hazard
heavy industrial sector. Acquisitions contributed 3
percentage points of growth, which was fully offset by changes in
foreign currency exchange rates. A divestiture negatively
impacted revenue by 1%.
Operating income for the quarter was $101
million and the operating margin was 16.4%. Before
special items, operating income was $103
million and the operating margin was 16.7%. The 150
basis point decline in operating margin included a 50 basis point
headwind related to non-cash purchase accounting. The
underlying margin decline of 100 basis points was driven by the
decline in revenue and a lower mix of higher-margin products.
OTHER ITEMS
- Cash from operating activities was $124
million and free cash flow was $46
million, which included a cash outflow of $196 million from special items primarily related
to the IRS litigation and prior year restructuring and
repositioning activities. Adjusted free cash flow for the
quarter was $242 million representing
an adjusted free cash flow conversion rate of 126% for the second
quarter and 111% for the six months ending March 25, 2016. The company completed the quarter
with $345 million in cash and cash
equivalents.
- Corporate expense for the quarter was $46 million before special items and $54 million on a GAAP basis.
- Restructuring and repositioning charges were $16 million before the reversal of $6 million of prior-period charges treated as
special items, compared to $29
million for the prior year period.
- The tax rate before special items was 17.3% for the
quarter.
- As disclosed on April 21, Tyco
and Johnson Controls confirmed their merger plans and that the
combined company expects to deliver $650
million in operational and global tax synergies over the
first three years after closing. The transaction, which is subject
to customary closing conditions, including regulatory approvals and
approval by both Johnson Controls and Tyco shareholders, is
expected to be completed on or around October 1, 2016.
- As previously announced, during the quarter the company
completed the acquisition of ShopperTrak, a leading global provider
of retail traffic insights and location-based analytics, for
approximately $175 million in
cash. This business currently generates approximately
$75 million in annual revenue.
- As previously announced, during the quarter the company
divested its fire detection and protection business in
Australia. In fiscal year 2015, this business had revenue of
approximately $260 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. Tyco has over 57,000 employees
in more than 900 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
2016 during a conference call and webcast today beginning at
8:00 a.m. Eastern time (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 517-308-9029
(outside the United States),
passcode "Tyco",
- Replay via telephone - by dialing 888-568-0738 (in the United States) or 402-998-1493 (outside
the United States), passcode 2577,
from 10:00 a.m. (ET) on April 29, 2016, until 11:59 p.m. (ET) on May 6,
2016, and
- Replay via webcast - through the "Presentations & Webcasts"
link on the Investor Relations section of Tyco's website:
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.
NO OFFER OR SOLICITATION
This communication is not intended to and does not constitute an
offer to sell or the solicitation of an offer to subscribe for or
buy or an invitation to purchase or subscribe for any securities or
the solicitation of any vote or approval in any jurisdiction, nor
shall there be any sale, issuance or transfer of securities in any
jurisdiction in contravention of applicable law.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed transaction between Johnson
Controls, Inc. ("Johnson Controls") and Tyco International plc
("Tyco"), Tyco has filed with the U.S. Securities and Exchange
Commission (the "SEC") a registration statement on Form S-4 that
includes a preliminary joint proxy statement of Johnson Controls
and Tyco that also constitutes a preliminary prospectus of Tyco
(the "Joint Proxy Statement/Prospectus"). These materials are not
yet final and will be amended. Johnson Controls and Tyco plan to
mail to their respective shareholders the definitive Joint Proxy
Statement/Prospectus in connection with the transaction after the
registration statement has become effective. INVESTORS AND SECURITY
HOLDERS OF JOHNSON CONTROLS AND TYCO ARE URGED TO READ THE JOINT
PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED OR TO
BE FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT JOHNSON CONTROLS,
TYCO, THE TRANSACTION AND RELATED MATTERS. Investors and security
holders will be able to obtain free copies of the Joint Proxy
Statement/Prospectus and other documents filed with the SEC by
Johnson Controls and Tyco through the website maintained by the SEC
at www.sec.gov. In addition, investors and security holders will be
able to obtain free copies of the documents filed with the SEC by
Johnson Controls by contacting Johnson Controls Shareholder
Services at Shareholder.Services@jci.com or by calling (800)
524-6220 and will be able to obtain free copies of the documents
filed with the SEC by Tyco by contacting Tyco Investor Relations at
Investorrelations@Tyco.com or by calling (609) 720-4333.
PARTICIPANTS IN THE SOLICITATION
Johnson Controls, Tyco and certain of their respective
directors, executive officers and employees may be considered
participants in the solicitation of proxies in connection with the
proposed transaction. Information regarding the persons who may,
under the rules of the SEC, be deemed participants in the
solicitation of the respective shareholders of Johnson Controls and
Tyco in connection with the proposed transactions, including a
description of their direct or indirect interests, by security
holdings or otherwise, will be set forth in the Joint Proxy
Statement/Prospectus when it is filed with the SEC. Information
regarding Johnson Controls' directors and executive officers is
contained in Johnson Controls' proxy statement for its 2016 annual
meeting of shareholders, which was filed with the SEC on
December 14, 2015. Information
regarding Tyco's directors and executive officers is contained in
Tyco's proxy statement for its 2016 annual meeting of shareholders,
which was filed with the SEC on January 15,
2016.
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", "confident", "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, earnings per share 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, Tyco's credit profile, capital allocation priorities and
other capital market related activities, statements regarding
Tyco's acquisition, divestiture, restructuring and other
productivity initiatives, and statements regarding Tyco's proposed
merger with Johnson Controls and related transactions.
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; industry specific events or
conditions that may adversely impact revenue or other financial
projections; risks relating to the completion of the proposed
transaction with Johnson Controls on anticipated terms and timing,
including obtaining shareholder and regulatory approvals,
anticipated tax treatment, unforeseen liabilities, future capital
expenditures, revenues, expenses, earnings, synergies, economic
performance, indebtedness, financial condition, losses, future
prospects, business and management strategies for the management,
expansion and growth of the new combined company's operations, the
ability of Tyco and Johnson Controls to integrate their businesses
successfully and to achieve anticipated synergies, changes in tax
laws or interpretations, access to available financing, potential
litigation relating to the proposed transaction, and the risk that
disruptions from the proposed transaction will harm Tyco's
business. 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 information on potential factors that could affect the
Company's financial results is included from time to time in the
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections of the
Company's public reports filed with the U.S. Securities and
Exchange Commission (SEC), including the Company's Form 10-K for
the fiscal year ended September 25,
2015, and subsequent filings with the SEC.
STATEMENT REQUIRED BY THE IRISH TAKEOVER RULES
The directors of Tyco International plc accept responsibility
for the information contained in this communication. To the
best of their knowledge and belief (having taken all reasonable
care to ensure such is the case), the information contained in this
communication is in accordance with the facts and does not omit
anything likely to affect the import of such information.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH
JURISDICTION.
This communication is not intended to be and is not a prospectus
for the purposes of Part 23 of the Companies Act 2014 of
Ireland (the "2014 Act"),
Prospectus (Directive 2003/71/EC) Regulations 2005 (S.I. No. 324 of
2005) of Ireland (as amended from
time to time) or the Prospectus Rules issued by the Central Bank of
Ireland pursuant to section 1363
of the 2014 Act, and the Central Bank of Ireland ("CBI") has not approved this
communication.
TYCO INTERNATIONAL
PLC
CONSOLIDATED
STATEMENTS OF OPERATIONS
(in millions,
except per share data)
(Unaudited)
|
|
|
Quarters Ended
|
|
Six Months Ended
|
|
March 25,
2016
|
|
March 27,
2015
|
|
March 25,
2016
|
|
March 27,
2015
|
Revenue from product
sales
|
$
|
1,398
|
|
|
$
|
1,458
|
|
|
$
|
2,806
|
|
|
$
|
2,946
|
|
Service
revenue
|
933
|
|
|
972
|
|
|
1,901
|
|
|
1,962
|
|
Net
revenue
|
2,331
|
|
|
2,430
|
|
|
4,707
|
|
|
4,908
|
|
Cost of product
sales
|
968
|
|
|
999
|
|
|
1,930
|
|
|
2,021
|
|
Cost of
services
|
506
|
|
|
550
|
|
|
1,042
|
|
|
1,097
|
|
Selling, general and
administrative expenses
|
602
|
|
|
648
|
|
|
1,175
|
|
|
1,300
|
|
Merger
costs
|
26
|
|
|
—
|
|
|
26
|
|
|
—
|
|
Restructuring and
asset impairment charges, net
|
4
|
|
|
12
|
|
|
16
|
|
|
70
|
|
Operating
income
|
225
|
|
|
221
|
|
|
518
|
|
|
420
|
|
Interest
income
|
4
|
|
|
4
|
|
|
8
|
|
|
7
|
|
Interest
expense
|
(22)
|
|
|
(25)
|
|
|
(46)
|
|
|
(49)
|
|
Other (expense)
income, net
|
—
|
|
|
(1)
|
|
|
(165)
|
|
|
3
|
|
Income from
continuing operations before income taxes
|
207
|
|
|
199
|
|
|
315
|
|
|
381
|
|
Income tax
expense
|
(63)
|
|
|
(18)
|
|
|
(99)
|
|
|
(37)
|
|
Income from
continuing operations
|
144
|
|
|
181
|
|
|
216
|
|
|
344
|
|
Income (loss) from
discontinued operations, net of income taxes
|
1
|
|
|
(16)
|
|
|
5
|
|
|
(18)
|
|
Net
income
|
145
|
|
|
165
|
|
|
221
|
|
|
326
|
|
Less: noncontrolling
interest in subsidiaries net loss
|
(1)
|
|
|
(2)
|
|
|
(1)
|
|
|
(3)
|
|
Net income
attributable to Tyco ordinary shareholders
|
$
|
146
|
|
|
$
|
167
|
|
|
$
|
222
|
|
|
$
|
329
|
|
Amounts
attributable to Tyco ordinary shareholders:
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
145
|
|
|
$
|
183
|
|
|
$
|
217
|
|
|
$
|
347
|
|
Income (loss) from
discontinued operations
|
1
|
|
|
(16)
|
|
|
5
|
|
|
(18)
|
|
Net income
attributable to Tyco ordinary shareholders
|
$
|
146
|
|
|
$
|
167
|
|
|
$
|
222
|
|
|
$
|
329
|
|
Basic earnings per
share attributable to Tyco ordinary shareholders:
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
0.34
|
|
|
$
|
0.44
|
|
|
$
|
0.51
|
|
|
$
|
0.83
|
|
(Loss) income from
discontinued operations
|
—
|
|
|
(0.04)
|
|
|
0.01
|
|
|
(0.05)
|
|
Net income
attributable to Tyco ordinary shareholders
|
$
|
0.34
|
|
|
$
|
0.40
|
|
|
$
|
0.52
|
|
|
$
|
0.78
|
|
Diluted earnings
per share attributable to Tyco ordinary
shareholders:
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
0.33
|
|
|
$
|
0.43
|
|
|
$
|
0.51
|
|
|
$
|
0.81
|
|
Income (loss) from
discontinued operations
|
0.01
|
|
|
(0.04)
|
|
|
0.01
|
|
|
(0.04)
|
|
Net income
attributable to Tyco ordinary shareholders
|
$
|
0.34
|
|
|
$
|
0.39
|
|
|
$
|
0.52
|
|
|
$
|
0.77
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
425
|
|
|
420
|
|
|
424
|
|
|
420
|
|
Diluted
|
428
|
|
|
427
|
|
|
428
|
|
|
427
|
|
|
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 filed on November 13, 2015 and
Form 8-K filed on March 11, 2016 for the fiscal year
ended September 25, 2015.
|
TYCO INTERNATIONAL
PLC
RESULTS OF
SEGMENTS
(in
millions)
(Unaudited)
|
|
|
|
Quarters Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
March 25,
2016
|
|
|
|
March 27,
2015
|
|
|
|
March 25,
2016
|
|
|
|
March 27,
2015
|
|
|
Net
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA Integrated
Solutions & Services
|
|
$
|
947
|
|
|
|
|
$
|
944
|
|
|
|
|
$
|
1,900
|
|
|
|
|
$
|
1,895
|
|
|
|
ROW Integrated
Solutions & Services
|
|
768
|
|
|
|
|
847
|
|
|
|
|
1,580
|
|
|
|
|
1,763
|
|
|
|
Global
Products
|
|
616
|
|
|
|
|
639
|
|
|
|
|
1,227
|
|
|
|
|
1,250
|
|
|
|
Total Net
Revenue
|
|
$
|
2,331
|
|
|
|
|
$
|
2,430
|
|
|
|
|
$
|
4,707
|
|
|
|
|
$
|
4,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
and Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA Integrated
Solutions & Services
|
|
$
|
131
|
|
|
13.8
|
%
|
|
$
|
125
|
|
|
13.2
|
%
|
|
$
|
263
|
|
|
13.8
|
%
|
|
$
|
254
|
|
|
13.4
|
%
|
ROW Integrated
Solutions & Services
|
|
57
|
|
|
7.4
|
%
|
|
67
|
|
|
7.9
|
%
|
|
190
|
|
|
12.0
|
%
|
|
156
|
|
|
8.8
|
%
|
Global
Products
|
|
101
|
|
|
16.4
|
%
|
|
114
|
|
|
17.8
|
%
|
|
198
|
|
|
16.1
|
%
|
|
219
|
|
|
17.5
|
%
|
Segment operating
income
|
|
289
|
|
|
12.4
|
%
|
|
306
|
|
|
12.6
|
%
|
|
651
|
|
|
13.8
|
%
|
|
629
|
|
|
12.8
|
%
|
Corporate and Other
expense
|
|
(54)
|
|
|
N/M
|
|
(56)
|
|
|
N/M
|
|
(105)
|
|
|
N/M
|
|
(105)
|
|
|
N/M
|
Restructuring and
repositioning charges, net
|
|
(10)
|
|
|
N/M
|
|
(29)
|
|
|
N/M
|
|
(28)
|
|
|
N/M
|
|
(104)
|
|
|
N/M
|
Operating
income
|
|
$
|
225
|
|
|
9.7
|
%
|
|
$
|
221
|
|
|
9.1
|
%
|
|
$
|
518
|
|
|
11.0
|
%
|
|
$
|
420
|
|
|
8.6
|
%
|
TYCO
INTERNATIONAL PLC
CONSOLIDATED
BALANCE SHEETS
(in
millions)
(Unaudited)
|
|
|
|
March 25,
2016
|
|
September 25,
2015
|
Assets
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
345
|
|
|
$
|
1,401
|
|
Accounts receivable,
net
|
|
1,722
|
|
|
1,732
|
|
Inventories
|
|
670
|
|
|
624
|
|
Prepaid expenses and
other current assets
|
|
864
|
|
|
754
|
|
Deferred income
taxes
|
|
62
|
|
|
62
|
|
Assets held for
sale
|
|
—
|
|
|
102
|
|
Total Current
Assets
|
|
3,663
|
|
|
4,675
|
|
Property, plant and
equipment, net
|
|
1,189
|
|
|
1,177
|
|
Goodwill
|
|
4,460
|
|
|
4,234
|
|
Intangible assets,
net
|
|
1,025
|
|
|
863
|
|
Other
assets
|
|
1,274
|
|
|
1,372
|
|
Total
Assets
|
|
$
|
11,611
|
|
|
$
|
12,321
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Loans payable and
current maturities of long-term debt
|
|
$
|
400
|
|
|
$
|
987
|
|
Accounts
payable
|
|
797
|
|
|
774
|
|
Accrued and other
current liabilities
|
|
1,643
|
|
|
1,661
|
|
Deferred
revenue
|
|
393
|
|
|
380
|
|
Liabilities held for
sale
|
|
—
|
|
|
50
|
|
Total Current
Liabilities
|
|
3,233
|
|
|
3,852
|
|
Long-term
debt
|
|
2,159
|
|
|
2,159
|
|
Deferred
revenue
|
|
285
|
|
|
303
|
|
Other
liabilities
|
|
1,756
|
|
|
1,931
|
|
Total
Liabilities
|
|
7,433
|
|
|
8,245
|
|
|
|
|
|
|
Total Tyco
shareholders' equity
|
|
4,142
|
|
|
4,041
|
|
Nonredeemable
noncontrolling interest
|
|
36
|
|
|
35
|
|
Total
Equity
|
|
4,178
|
|
|
4,076
|
|
Total Liabilities
and Equity
|
|
$
|
11,611
|
|
|
$
|
12,321
|
|
|
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 filed on November 13,
2015 and Form 8-K filed on March 11, 2016 for the fiscal year
ended September 25, 2015.
|
TYCO INTERNATIONAL
PLC
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in
millions)
(Unaudited)
|
|
|
|
For the Quarters
Ended
|
|
For the Six Months
Ended
|
|
|
March 25,
2016
|
|
March 27,
2015
|
|
March 25,
2016
|
|
March 27,
2015
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
|
Net income
attributable to Tyco ordinary shareholders
|
|
$
|
146
|
|
|
$
|
167
|
|
|
$
|
222
|
|
|
$
|
329
|
|
Noncontrolling
interest in subsidiaries net loss
|
|
(1)
|
|
|
(2)
|
|
|
(1)
|
|
|
(3)
|
|
(Income) loss from
discontinued operations, net of income taxes
|
|
(1)
|
|
|
16
|
|
|
(5)
|
|
|
18
|
|
Income from
continuing operations
|
|
144
|
|
|
181
|
|
|
216
|
|
|
344
|
|
Adjustments to
reconcile net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
84
|
|
|
81
|
|
|
167
|
|
|
171
|
|
Non-cash compensation
expense
|
|
12
|
|
|
15
|
|
|
27
|
|
|
30
|
|
Deferred income
taxes
|
|
45
|
|
|
(23)
|
|
|
62
|
|
|
(29)
|
|
Provision for losses
on accounts receivable and inventory
|
|
17
|
|
|
18
|
|
|
29
|
|
|
34
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
168
|
|
|
—
|
|
Legacy legal
matters
|
|
(19)
|
|
|
—
|
|
|
(19)
|
|
|
—
|
|
Loss on divestitures,
net
|
|
17
|
|
|
22
|
|
|
69
|
|
|
23
|
|
Loss (gain) on
investments, net
|
|
1
|
|
|
(3)
|
|
|
(114)
|
|
|
(7)
|
|
Other non-cash
items
|
|
—
|
|
|
6
|
|
|
5
|
|
|
7
|
|
Changes in assets and
liabilities, net of the effects of acquisitions and
divestitures:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
9
|
|
|
29
|
|
|
38
|
|
|
22
|
|
Contracts in
progress
|
|
(45)
|
|
|
(38)
|
|
|
(54)
|
|
|
(30)
|
|
Inventories
|
|
(22)
|
|
|
(21)
|
|
|
(56)
|
|
|
(64)
|
|
Prepaid expenses and
other assets
|
|
18
|
|
|
(41)
|
|
|
(30)
|
|
|
(66)
|
|
Accounts
payable
|
|
1
|
|
|
(46)
|
|
|
2
|
|
|
(87)
|
|
Accrued and other
liabilities
|
|
(92)
|
|
|
(27)
|
|
|
(133)
|
|
|
(56)
|
|
Tax sharing
agreement, net
|
|
(122)
|
|
|
-
|
|
|
(122)
|
|
|
-
|
|
Income taxes,
net
|
|
2
|
|
|
3
|
|
|
13
|
|
|
1
|
|
Other
|
|
74
|
|
|
11
|
|
|
45
|
|
|
(31)
|
|
Net cash provided by
operating activities
|
|
124
|
|
|
167
|
|
|
313
|
|
|
262
|
|
Net cash (used in)
provided by discontinued operating activities
|
|
(13)
|
|
|
2
|
|
|
(11)
|
|
|
3
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(75)
|
|
|
(57)
|
|
|
(143)
|
|
|
(123)
|
|
Acquisition of
businesses, net of cash acquired
|
|
(176)
|
|
|
(373)
|
|
|
(314)
|
|
|
(525)
|
|
Acquisition of dealer
generated customer accounts and bulk account purchases
|
|
(7)
|
|
|
(4)
|
|
|
(11)
|
|
|
(8)
|
|
Divestiture of
businesses, net of cash divested
|
|
9
|
|
|
(1)
|
|
|
9
|
|
|
(1)
|
|
Sales and maturities
of investments including restricted investments
|
|
7
|
|
|
4
|
|
|
8
|
|
|
279
|
|
Purchases of
investments including restricted investments
|
|
—
|
|
|
(287)
|
|
|
(7)
|
|
|
(288)
|
|
Decrease (increase)
in restricted cash
|
|
19
|
|
|
6
|
|
|
24
|
|
|
(39)
|
|
Other
|
|
1
|
|
|
2
|
|
|
1
|
|
|
2
|
|
Net cash used in
investing activities
|
|
(222)
|
|
|
(710)
|
|
|
(433)
|
|
|
(703)
|
|
Net cash provided by
(used in) discontinued investing activities
|
|
4
|
|
|
—
|
|
|
4
|
|
|
(15)
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of short-term debt
|
|
1,681
|
|
|
—
|
|
|
2,498
|
|
|
—
|
|
Repayment of
short-term debt
|
|
(1,432)
|
|
|
(1)
|
|
|
(2,098)
|
|
|
(1)
|
|
Repayment of current
portion of long-term debt
|
|
—
|
|
|
—
|
|
|
(1,134)
|
|
|
—
|
|
Proceeds from
issuance of long-term debt
|
|
—
|
|
|
567
|
|
|
—
|
|
|
567
|
|
Proceeds from
exercise of share options
|
|
15
|
|
|
24
|
|
|
26
|
|
|
57
|
|
Dividends
paid
|
|
(87)
|
|
|
(76)
|
|
|
(174)
|
|
|
(151)
|
|
Repurchase of
ordinary shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(417)
|
|
Transfer (to) from
discontinued operations
|
|
(9)
|
|
|
2
|
|
|
(7)
|
|
|
(12)
|
|
Payment of contingent
consideration
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
(23)
|
|
Debt financing
costs
|
|
(22)
|
|
|
(4)
|
|
|
(23)
|
|
|
(4)
|
|
Other
|
|
(2)
|
|
|
(4)
|
|
|
(13)
|
|
|
(19)
|
|
Net cash provided by
(used in) financing activities
|
|
143
|
|
|
508
|
|
|
(926)
|
|
|
(3)
|
|
Net cash provided by
(used in) discontinued financing activities
|
|
9
|
|
|
(2)
|
|
|
7
|
|
|
12
|
|
Effect of currency
translation on cash
|
|
(1)
|
|
|
(6)
|
|
|
(10)
|
|
|
(16)
|
|
Net decrease in
cash and cash equivalents
|
|
44
|
|
|
(41)
|
|
|
(1,056)
|
|
|
(460)
|
|
Cash and cash
equivalents at beginning of period
|
|
301
|
|
|
473
|
|
|
1,401
|
|
|
892
|
|
Cash and cash
equivalents at end of period
|
|
$
|
345
|
|
|
$
|
432
|
|
|
$
|
345
|
|
|
$
|
432
|
|
|
|
|
|
|
For the Quarters
Ended
|
|
For the Six Months
Ended
|
|
|
March 25,
2016
|
|
March 27,
2015
|
|
March 25,
2016
|
|
March 27,
2015
|
Reconciliation to
"Free Cash Flow":
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
124
|
|
|
$
|
167
|
|
|
$
|
313
|
|
|
$
|
262
|
|
Capital
expenditures, net
|
|
(74)
|
|
|
(55)
|
|
|
(142)
|
|
|
(120)
|
|
Acquisition of dealer
generated customer accounts and bulk account purchases
|
|
(7)
|
|
|
(4)
|
|
|
(11)
|
|
|
(8)
|
|
Payment of contingent
consideration
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
(24)
|
|
Voluntary pension
contributions
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
Free Cash
Flow
|
|
$
|
46
|
|
|
$
|
107
|
|
|
$
|
163
|
|
|
$
|
110
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
"Adjusted Free Cash Flow":
|
|
|
|
|
|
|
|
|
IRS litigation
costs
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
Separation
costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
Restructuring and
repositioning costs (FY15 and prior)
|
|
23
|
|
|
37
|
|
|
68
|
|
|
71
|
|
Environmental
remediation payments
|
|
1
|
|
|
1
|
|
|
2
|
|
|
8
|
|
Legal
settlements
|
|
14
|
|
|
—
|
|
|
14
|
|
|
(12)
|
|
Net asbestos
payments
|
|
8
|
|
|
3
|
|
|
10
|
|
|
8
|
|
Merger
costs
|
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
Cash payment to ADT
Resi / Pentair
|
|
16
|
|
|
1
|
|
|
16
|
|
|
1
|
|
Cash payment to
Covidien / TE Connectivity
|
|
122
|
|
|
—
|
|
|
122
|
|
|
—
|
|
Acquisition /
integration costs
|
|
4
|
|
|
2
|
|
|
5
|
|
|
3
|
|
Special
Items
|
|
$
|
196
|
|
|
$
|
44
|
|
|
$
|
248
|
|
|
$
|
82
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free Cash
Flow
|
|
$
|
242
|
|
|
$
|
151
|
|
|
$
|
411
|
|
|
$
|
192
|
|
|
Note: Free cash flow
is a non-GAAP measure. See description of non-GAAP measures
contained in this release.
|
TYCO
INTERNATIONAL PLC
ORGANIC GROWTH
RECONCILIATION - REVENUE
(in
millions)
(Unaudited)
|
|
|
|
|
|
Quarter Ended
March 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Year
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue for
the
|
|
Adjustments
|
|
Fiscal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue for
the
|
|
|
Quarter
Ended
|
|
Divestitures
/
|
|
2015 Base
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
March 27,
2015
|
|
Other
|
|
Revenue
|
|
Foreign Currency
|
|
Acquisitions
|
|
Organic Revenue(1)
|
|
March 25,
2016
|
NA Integrated
Solutions & Services
|
|
$
|
944
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
944
|
|
|
$
|
(10)
|
|
|
(1.1)
|
%
|
|
$
|
9
|
|
|
1.0
|
%
|
|
$
|
4
|
|
|
0.4
|
%
|
|
$
|
947
|
|
|
0.3
|
%
|
ROW Integrated
Solutions & Services
|
|
847
|
|
|
(62)
|
|
|
(7.3)
|
%
|
|
785
|
|
|
(73)
|
|
|
(8.6)
|
%
|
|
64
|
|
|
7.6
|
%
|
|
(8)
|
|
|
(1.0)
|
%
|
|
768
|
|
|
(9.3)
|
%
|
Global
Products
|
|
639
|
|
|
(3)
|
|
|
(0.5)
|
%
|
|
636
|
|
|
(18)
|
|
|
(2.8)
|
%
|
|
17
|
|
|
2.7
|
%
|
|
(19)
|
|
|
(3.0)
|
%
|
|
616
|
|
|
(3.6)
|
%
|
Total Net
Revenue
|
|
$
|
2,430
|
|
|
$
|
(65)
|
|
|
(2.7)
|
%
|
|
$
|
2,365
|
|
|
$
|
(101)
|
|
|
(4.2)
|
%
|
|
$
|
90
|
|
|
3.7
|
%
|
|
$
|
(23)
|
|
|
(1.0)
|
%
|
|
$
|
2,331
|
|
|
(4.1)
|
%
|
|
|
|
|
(1)
|
Organic revenue
growth percentage based on adjusted fiscal 2015 base
revenue.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Year
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue for
the
|
|
Adjustments
|
|
Fiscal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue for
the
|
|
|
Six Months
Ended
|
|
Divestitures /
|
|
2015 Base
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
March 27,
2015
|
|
Other
|
|
Revenue
|
|
Foreign Currency
|
|
Acquisitions
|
|
Organic Revenue (1)
|
|
March 25,
2016
|
NA Integrated
Solutions & Services
|
|
$
|
1,895
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
1,895
|
|
|
$
|
(26)
|
|
|
(1.4)
|
%
|
|
$
|
12
|
|
|
0.6
|
%
|
|
$
|
19
|
|
|
1.0
|
%
|
|
$
|
1,900
|
|
|
0.3
|
%
|
ROW Integrated
Solutions & Services
|
|
1,763
|
|
|
(84)
|
|
|
(4.8)
|
%
|
|
1,679
|
|
|
(174)
|
|
|
(9.9)
|
%
|
|
93
|
|
|
5.3
|
%
|
|
(18)
|
|
|
(1.1)
|
%
|
|
1,580
|
|
|
(10.4)
|
%
|
Global
Products
|
|
1,250
|
|
|
(4)
|
|
|
(0.3)
|
%
|
|
1,246
|
|
|
(53)
|
|
|
(4.2)
|
%
|
|
56
|
|
|
4.5
|
%
|
|
(22)
|
|
|
(1.8)
|
%
|
|
1,227
|
|
|
(1.8)
|
%
|
Total Net
Revenue
|
|
$
|
4,908
|
|
|
$
|
(88)
|
|
|
(1.8)
|
%
|
|
$
|
4,820
|
|
|
$
|
(253)
|
|
|
(5.2)
|
%
|
|
$
|
161
|
|
|
3.3
|
%
|
|
$
|
(21)
|
|
|
(0.4)
|
%
|
|
$
|
4,707
|
|
|
(4.1)
|
%
|
|
|
|
|
(1)
|
Organic revenue
growth percentage based on adjusted fiscal 2015 base
revenue.
|
|
|
Earnings Per Share
Summary
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
Quarter
Ended
|
|
|
March 25,
2016
|
|
March 27,
2015
|
Diluted EPS from
Continuing Operations Attributable to Tyco Shareholders
(GAAP)
|
|
$
|
0.33
|
|
|
$
|
0.43
|
|
|
|
|
|
|
expense /
(benefit)
|
|
|
|
|
|
|
|
|
|
Restructuring and
repositioning reversals (FY15 and prior)
|
|
(0.01)
|
|
|
—
|
|
|
|
|
|
|
Merger
costs
|
|
0.06
|
|
|
—
|
|
|
|
|
|
|
(Gains) / losses on
divestitures, net included in SG&A
|
|
0.08
|
|
|
0.06
|
|
|
|
|
|
|
Legacy legal
items
|
|
(0.03)
|
|
|
—
|
|
|
|
|
|
|
2012 Tax Sharing
Agreement
|
|
—
|
|
|
0.01
|
|
|
|
|
|
|
Total Before
Special Items
|
|
$
|
0.45
|
|
|
$
|
0.50
|
|
|
Note: Sum of
EPS before special items does not equal total due to
rounding.
|
Tyco International
plc
For the Quarter
Ended March 25, 2016
(in millions, except
per share data)
(Unaudited)
expense /
(benefit)
|
|
|
|
|
|
Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA
Integrated
Solutions
& Services
|
|
|
|
ROW
Integrated
Solutions
& Services
|
|
|
|
Global
Products
|
|
|
|
Segment
Revenue
|
|
|
|
Corporate
and
Other
|
|
|
|
Total
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
(GAAP)
|
|
$947
|
|
|
|
|
$768
|
|
|
|
|
$616
|
|
|
|
|
$2,331
|
|
|
|
|
$—
|
|
|
|
|
$2,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA
Integrated
Solutions
& Services
|
|
Margin
|
|
ROW
Integrated
Solutions
& Services
|
|
Margin
|
|
Global
Products
|
|
Margin
|
|
Segment
Operating
Income
|
|
Margin
|
|
Corporate
and
Other
|
|
Restructuring
and
Repositioning
|
|
Total
Operating
Income
|
|
Margin
|
|
Interest
(Expense),
net
|
|
Other
(Expense)
Income,
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)
|
|
$131
|
|
|
13.8
|
%
|
|
$57
|
|
|
7.4
|
%
|
|
$101
|
|
|
16.4
|
%
|
|
$289
|
|
|
12.4
|
%
|
|
($54)
|
|
|
($10)
|
|
|
$225
|
|
|
9.7
|
%
|
|
($18)
|
|
|
$—
|
|
|
($63)
|
|
|
$—
|
|
$1
|
|
|
$145
|
|
$0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired backlog included in revenue
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
repositioning reversals (FY15 and prior)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
|
|
(6)
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
(4)
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26
|
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gains) / losses on
divestitures, net included in SG&A
|
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
18
|
|
|
|
|
(1)
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
16
|
|
|
|
|
|
|
33
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition /
integration costs
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
1
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy legal
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19)
|
|
|
|
|
(19)
|
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
(12)
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IRS litigation
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Before
Special Items
|
|
$131
|
|
|
13.8
|
%
|
|
$77
|
|
|
10.0
|
%
|
|
$103
|
|
|
16.7
|
%
|
|
$311
|
|
|
13.3
|
%
|
|
($46)
|
|
|
($16)
|
|
|
$249
|
|
|
10.7
|
%
|
|
($18)
|
|
|
$—
|
|
|
($40)
|
|
|
$—
|
|
$1
|
|
|
$192
|
|
$0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Sum of
EPS before special items does not equal total due to
rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding
|
|
|
|
|
428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding - Before Special Items
|
428
|
|
|
|
Tyco International
plc
For the Quarter
Ended March 27, 2015
(in millions, except
per share data)
(Unaudited)
expense /
(benefit)
|
|
Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA
Integrated
Solutions
& Services
|
|
|
|
ROW
Integrated
Solutions
& Services
|
|
|
|
Global
Products
|
|
|
|
Segment
Revenue
|
|
|
|
Corporate
and
Other
|
|
|
|
Total
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
(GAAP)
|
|
$944
|
|
|
|
|
$847
|
|
|
|
|
$639
|
|
|
|
|
$2,430
|
|
|
|
|
$—
|
|
|
|
|
$2,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA
Integrated
Solutions
& Services
|
|
Margin
|
|
ROW
Integrated
Solutions
& Services
|
|
Margin
|
|
Global
Products
|
|
Margin
|
|
Segment
Operating
Income
|
|
Margin
|
|
Corporate
and
Other
|
|
Restructuring
and
Repositioning
|
|
Total
Operating
Income
|
|
Margin
|
|
Interest
(Expense),
net
|
|
Other
Income,
net
|
|
Income
Tax
(Expense)
|
|
Noncontrolling
Interest
|
|
Income
from
Continuing
Operations
Attributable
to
Tyco
Shareholders
|
Diluted
EPS from
Continuing
Operations
Attributable
to Tyco
Shareholders
|
Operating Income
(GAAP)
|
|
$125
|
|
|
13.2
|
%
|
|
$67
|
|
|
7.9
|
%
|
|
$114
|
|
|
17.8
|
%
|
|
$306
|
|
|
12.6
|
%
|
|
($56)
|
|
|
($29)
|
|
|
$221
|
|
|
9.1
|
%
|
|
($21)
|
|
|
($1)
|
|
|
($18)
|
|
|
$2
|
|
|
$183
|
|
$0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gains) / losses on
divestitures, net included in SG&A
|
|
|
|
|
|
22
|
|
|
|
|
|
|
|
|
22
|
|
|
|
|
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
22
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition /
integration costs
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy legal
items
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
inventory step-up
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asbestos
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
2
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IRS litigation
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
1
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 Tax Sharing
Agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
4
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Before
Special Items
|
|
$125
|
|
|
13.2
|
%
|
|
$90
|
|
|
10.6
|
%
|
|
$116
|
|
|
18.2
|
%
|
|
$331
|
|
|
13.6
|
%
|
|
($51)
|
|
|
($29)
|
|
|
$251
|
|
|
10.3
|
%
|
|
($21)
|
|
|
$3
|
|
|
($20)
|
|
|
$2
|
|
|
$215
|
|
$0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding
|
|
|
427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding - Before Special Items
|
427
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tyco-reports-second-quarter-2016-earnings-from-continuing-operations-before-special-items-of-045-per-share-and-gaap-earnings-of-033-per-share-300260011.html
SOURCE Tyco