CORK, Ireland, July 29, 2016 /PRNewswire/ --
- Accelerates expected closing for planned merger with Johnson
Controls to September 2 and reaffirms
combined company's ability to achieve the previously announced
$1 billion in merger synergies and
productivity initiatives
- As previously announced, the company's Board declared an
accelerated dividend for the fiscal fourth quarter of $0.23 per share, payable on August 26 to shareholders of record on
August 5, in addition to the fiscal
third quarter dividend of $0.205
- Revenue of $2.45 billion, with
organic revenue growth of 1.5% in the quarter
- GAAP diluted EPS from continuing operations increases 27%,
primarily due to the reversal of tax sharing agreement reserves
resulting from the IRS settlement, as well as decreased
restructuring and repositioning charges, partially offset by an
increase in divestiture charges and merger costs
- Diluted EPS from continuing operations before special items
increases 17%, partially related to decreased restructuring and
repositioning charges
Tyco (NYSE: TYC) today reported $0.56 in GAAP diluted earnings per share (EPS)
from continuing operations for the fiscal third quarter of 2016 and
diluted EPS from continuing operations before special items of
$0.54. Revenue of $2.45 billion in the quarter decreased 2% versus
the prior year, as 1.5% organic growth was more than offset by a 3%
negative impact from the stronger U.S. dollar against foreign
currencies. A three percentage point benefit related to
acquisitions was fully offset by a three percentage point impact
related to divestitures.
"We have continued to make great progress with integration
planning for our merger with Johnson Controls. We are now in
position to close the merger a month ahead of schedule and hit the
ground running. As a result of the integration planning work,
we are confident that we will be able to realize $1 billion of savings related to previously
announced merger synergies and productivity initiatives," said Tyco
Chief Executive Officer George R.
Oliver. "I would like to express my gratitude to the
entire Tyco team for their dedication and for the results we have
achieved as a focused fire and security industry leader over the
past four years," Mr. Oliver added.
(Income and EPS amounts are attributable to Tyco ordinary
shareholders)
($ millions, except per-share
amounts)
|
|
Q3
2016
|
|
Q3
2015
|
|
% Change
|
Revenue
|
|
$
|
2,449
|
|
|
$
|
2,489
|
|
|
(2)%
|
Segment Operating
Income
|
|
$
|
299
|
|
|
$
|
367
|
|
|
(19)%
|
Restructuring and
Repositioning
|
|
$
|
(13)
|
|
|
$
|
(65)
|
|
|
(80)%
|
Operating
Income
|
|
$
|
236
|
|
|
$
|
253
|
|
|
(7)%
|
Income from
Continuing Operations
|
|
$
|
241
|
|
|
$
|
188
|
|
|
28%
|
GAAP Diluted EPS from
Continuing Operations
|
|
$
|
0.56
|
|
|
$
|
0.44
|
|
|
27%
|
Special
Items
|
|
$
|
(0.02)
|
|
|
$
|
0.02
|
|
|
|
Segment Operating
Income Before Special Items
|
|
$
|
355
|
|
|
$
|
369
|
|
|
(4)%
|
Restructuring and
Repositioning Before Special Items
|
|
$
|
(15)
|
|
|
$
|
(65)
|
|
|
(77)%
|
Income from
Continuing Ops Before Special Items
|
|
$
|
231
|
|
|
$
|
198
|
|
|
17%
|
Diluted EPS from
Continuing Ops Before Special Items
|
|
$
|
0.54
|
|
|
$
|
0.46
|
|
|
17%
|
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 third 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 third quarter of 2015 unless otherwise
indicated.
North America Integrated Solutions & Services
|
|
Q3
2016
|
|
Q3
2015
|
|
% Change
|
|
Revenue
|
|
$
|
1,004
|
|
|
$
|
972
|
|
|
|
3 %
|
|
Operating
Income
|
|
$
|
148
|
|
|
$
|
157
|
|
|
|
(6)%
|
|
Operating
Margin
|
|
|
14.7%
|
|
|
|
16.2%
|
|
|
Special
Items
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
Operating Income
Before Special Items
|
|
$
|
148
|
|
|
$
|
157
|
|
|
|
(6)%
|
|
Operating Margin
Before Special Items
|
|
|
14.7%
|
|
|
16.2%
|
|
|
|
Revenue of $1.0 billion increased
3% from the prior year. Organic revenue growth of 2.5% was
driven by 4% growth in integrated solutions and 1% growth in
service revenue. Acquisition growth of 1% was partially
offset by the weakening of the Canadian dollar. Backlog of
$2.67 billion increased 5% year over
year and 3% on a quarter sequential basis, excluding the impact of
foreign currency.
Operating income for the quarter was $148
million and the operating margin declined 150 basis points
to 14.7%, including a 30 basis point headwind related to non-cash
purchase accounting. Underlying operations declined 120 basis
points due to increased investments and a higher mix of
installation revenue.
Rest of World Integrated Solutions & Services
|
|
Q3
2016
|
|
Q3
2015
|
|
% Change
|
Revenue
|
|
$
|
794
|
|
|
$
|
842
|
|
|
(6)%
|
|
Operating
Income
|
|
$
|
36
|
|
|
$
|
97
|
|
|
(63)%
|
|
Operating
Margin
|
|
4.5%
|
|
|
11.5%
|
|
|
|
Special
Items
|
|
$
|
(56)
|
|
|
$
|
4
|
|
|
|
Operating Income
Before Special Items
|
|
$
|
92
|
|
|
$
|
93
|
|
|
(1)%
|
|
Operating Margin
Before Special Items
|
|
11.6%
|
|
|
11.0%
|
|
|
|
Revenue of $794 million decreased
6% compared to the prior year, driven by a 6% unfavorable impact
from foreign currency exchange rates. Organic revenue
increased 2%, with 2% growth in service and a 2% increase in
integrated solutions. Acquisition growth of 7% was more than
offset by a 9% decline related to divestitures. Backlog of
$1.94 billion increased 14% year over
year, partly driven by acquisition activity, and 2% on a quarter
sequential basis, excluding the impact of foreign currency and
divestitures.
Operating income for the quarter was $36
million and the operating margin was 4.5%. Special
items of $56 million consisted
primarily of a writedown of a business held for sale. Before
special items, operating income was $92
million and the operating margin was 11.6%. The
operating margin improved by 60 basis points, including a 30 basis
point impact related to non-cash purchase accounting.
Underlying operations improved 90 basis points, driven by revenue
growth, improved execution and productivity benefits.
Global Products
|
|
Q3
2016
|
|
Q3
2015
|
|
% Change
|
|
Revenue
|
|
$
|
651
|
|
|
$
|
675
|
|
|
(4)%
|
|
|
Operating
Income
|
|
$
|
115
|
|
|
$
|
113
|
|
|
2%
|
|
|
Operating
Margin
|
|
17.7%
|
|
|
16.7%
|
|
|
|
|
Special
Items
|
|
$
|
—
|
|
|
$
|
(6)
|
|
|
|
|
Operating Income
Before Special Items
|
|
$
|
115
|
|
|
$
|
119
|
|
|
(3)%
|
|
|
Operating Margin
Before Special Items
|
|
17.7%
|
|
|
17.6%
|
|
|
|
|
Revenue of $651 million decreased
4% compared to the prior year driven by a 2% unfavorable impact
from foreign currency exchange rates and a 2% unfavorable impact
related to a divestiture. Organic revenue growth was flat year over
year.
Operating income for the quarter was $115
million and the operating margin was 17.7%. Before
special items, the operating margin increased 10 basis points as
productivity benefits more than offset headwinds from revenue
mix.
OTHER ITEMS
- Cash from operating activities was $191
million and free cash flow was $119
million, which included cash outflows of $95 million from special items. Adjusted free
cash flow for the quarter was $214
million representing an adjusted free cash flow conversion
rate of 93% for the third quarter and 104% for the nine months
ending June 24, 2016. The company
completed the quarter with $345
million in cash and cash equivalents.
- Corporate expense for the quarter was $50 million on a GAAP basis and $44 million before special items.
- Restructuring and repositioning charges were $15 million before the reversal of $2 million of prior-period charges treated as
special items, compared to $65
million for the prior year period.
- The GAAP tax rate was 11.4% for the quarter, which was
favorably impacted by the IRS settlement and the tax impact on
special items. The tax rate was 17.3% before special
items.
- During the quarter, a loss of $59
million was recorded due to the anticipated sale of a
business in the Rest of World Integrated Solutions & Services
segment that generates approximately $160
million in annual revenue.
- As previously announced, the registration statement on Form S-4
filed with the U.S. Securities and Exchange Commission in
connection with the proposed Tyco and Johnson Controls merger was
declared effective on July 6, 2016.
Both companies have scheduled meetings of their respective
shareholders for approval of matters related to the merger. Tyco's
extraordinary meeting of shareholders will be held on August 17, 2016, at 9:00
a.m. local time at Earlsfort Centre, Earlsfort Terrace,
Dublin, Ireland. Tyco's Board of
Directors unanimously recommends that shareholders vote "FOR" the
matters specified in the joint proxy statement/prospectus included
in the Form S-4, which is available on the SEC's website (as filed
under Tyco) at: www.sec.gov.
- As previously announced, in accordance with applicable Irish
and European rules and regulations related to the proposed merger
with Johnson Controls, Tyco has withdrawn its previously issued
standalone profit forecast.
- As previously announced, the company's Board of Directors has
declared an accelerated dividend of $0.23 per ordinary share, payable on August 26, 2016, to shareholders of record at the
close of NYSE trading on August 5,
2016. The accelerated dividend is in addition to the regular
third quarter dividend. This accelerated dividend pulls forward the
quarterly dividend that Tyco would have declared in its fiscal
fourth quarter, and is intended to align dividend payments made to
shareholders of Tyco and Johnson Controls prior to the closing of
the merger.
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 third 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 800-879-5193 (in the United States) or 203-369-3562 (outside
the United States), passcode 2577,
from 10:00 a.m. (ET) on July 29, 2016, until 11:59
p.m. (ET) on August 5, 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. ("JCI") 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 (the "Registration
Statement") that includes a joint proxy statement of JCI and Tyco
that also constitutes a prospectus of Tyco (the "Joint Proxy
Statement/Prospectus"). The Registration Statement was declared
effective by the SEC on July 6, 2016,
and the definitive Joint Proxy Statement/Prospectus was first
mailed to shareholders of JCI and Tyco on or about July 6, 2016. INVESTORS AND SECURITY HOLDERS OF
JCI AND TYCO ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS
AND OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC, AS
WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT JCI, TYCO, THE
TRANSACTION AND RELATED MATTERS. Investors and security holders may
obtain free copies of the Joint Proxy Statement/Prospectus and
other documents filed with the SEC by JCI and Tyco through the
website maintained by the SEC at www.sec.gov. In addition,
investors and security holders may obtain free copies of the
documents filed with the SEC by JCI by contacting JCI Shareholder
Services at Shareholder.Services@jci.com or by calling (800)
524-6220 and may 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.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This communication contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
including, but not limited to, Tyco's expectations or predictions
of future financial or business performance or conditions.
Forward-looking statements are typically identified by words such
as "believe," "expect," "anticipate," "intend," "target,"
"estimate," "continue," "positions," "plan," "predict," "project,"
"forecast," "guidance," "goal," "objective," "prospects,"
"possible" or "potential," by future conditional verbs such as
"assume," "will," "would," "should," "could" or "may", or by
variations of such words or by similar expressions. These
forward-looking statements are subject to numerous assumptions,
risks and uncertainties, which change over time. Forward-looking
statements speak only as of the date they are made and we assume no
duty to update forward-looking statements. Actual results may
differ materially from current projections.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain, such as statements about the
consummation of the proposed transaction. Many factors could cause
actual results to differ materially from these forward-looking
statements, including, in addition to factors previously disclosed
in Tyco's reports filed with the SEC, which are available at
www.sec.gov and www.Tyco.com under the "Investor Relations" tab,
and those identified elsewhere in this communication, risks
relating to the completion of the proposed transaction 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 JCI 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.
Annualized, pro forma, projected and estimated numbers are used
for illustrative purpose only, are not forecasts and may not
reflect actual results.
STATEMENT REQUIRED BY THE IRISH TAKEOVER RULES
The directors of Tyco accept responsibility for the information
contained in this communication relating to Tyco and the directors
of Tyco and members of their immediate families, related trusts and
persons connected with them. To the best of the knowledge and
belief of the directors of Tyco (who have taken all reasonable care
to ensure such is the case), the information contained in this
communication for which they accept responsibility is in accordance
with the facts and does not omit anything likely to affect the
import of such information.
Lazard Frères & Co. LLC, which is a registered broker dealer
with the SEC, is acting for Tyco International plc and no one else
in connection with the proposed transaction and will not be
responsible to anyone other than Tyco International plc for
providing the protections afforded to clients of Lazard Frères
& Co. LLC, or for giving advice in connection with the proposed
transaction or any matter referred to herein.
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)
|
|
|
For the
Quarters Ended
|
|
For the
Nine Months Ended
|
|
June 24,
2016
|
|
June 26,
2015
|
|
June 24,
2016
|
|
June 26,
2015
|
|
Revenue from product
sales
|
$
|
1,487
|
|
|
$
|
1,511
|
|
|
$
|
4,293
|
|
|
$
|
4,457
|
|
Service
revenue
|
962
|
|
|
978
|
|
|
2,863
|
|
|
2,940
|
|
Net
revenue
|
2,449
|
|
|
2,489
|
|
|
7,156
|
|
|
7,397
|
|
Cost of product
sales
|
1,026
|
|
|
1,025
|
|
|
2,956
|
|
|
3,046
|
|
Cost of
services
|
508
|
|
|
548
|
|
|
1,550
|
|
|
1,645
|
|
Selling, general and
administrative expenses
|
667
|
|
|
625
|
|
|
1,842
|
|
|
1,925
|
|
Merger
costs
|
7
|
|
|
-
|
|
|
33
|
|
|
-
|
|
Restructuring and
asset impairment charges, net
|
5
|
|
|
38
|
|
|
21
|
|
|
108
|
|
Operating
income
|
236
|
|
|
253
|
|
|
754
|
|
|
673
|
|
Interest
income
|
3
|
|
|
4
|
|
|
11
|
|
|
11
|
|
Interest
expense
|
(22)
|
|
|
(26)
|
|
|
(68)
|
|
|
(75)
|
|
Other income
(expense), net
|
54
|
|
|
6
|
|
|
(111)
|
|
|
9
|
|
Income from
continuing operations before income taxes
|
271
|
|
|
237
|
|
|
586
|
|
|
618
|
|
Income tax
expense
|
(31)
|
|
|
(49)
|
|
|
(130)
|
|
|
(86)
|
|
Income from
continuing operations
|
240
|
|
|
188
|
|
|
456
|
|
|
532
|
|
(Loss) income from
discontinued operations, net of income taxes
|
(2)
|
|
|
(32)
|
|
|
3
|
|
|
(50)
|
|
Net
income
|
238
|
|
|
156
|
|
|
459
|
|
|
482
|
|
Less: noncontrolling
interest in subsidiaries net loss
|
(1)
|
|
|
-
|
|
|
(2)
|
|
|
(3)
|
|
Net income
attributable to Tyco ordinary shareholders
|
$
|
239
|
|
|
$
|
156
|
|
|
$
|
461
|
|
|
$
|
485
|
|
Amounts
attributable to Tyco ordinary shareholders:
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
241
|
|
|
$
|
188
|
|
|
$
|
458
|
|
|
$
|
535
|
|
(Loss) income from
discontinued operations
|
(2)
|
|
|
(32)
|
|
|
3
|
|
|
(50)
|
|
Net income
attributable to Tyco ordinary shareholders
|
$
|
239
|
|
|
$
|
156
|
|
|
$
|
461
|
|
|
$
|
485
|
|
Basic earnings per
share attributable to Tyco ordinary shareholders:
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
0.57
|
|
|
$
|
0.45
|
|
|
$
|
1.08
|
|
|
$
|
1.27
|
|
Loss from
discontinued operations
|
(0.01)
|
|
|
(0.08)
|
|
|
-
|
|
|
(0.12)
|
|
Net income
attributable to Tyco ordinary shareholders
|
$
|
0.56
|
|
|
$
|
0.37
|
|
|
$
|
1.08
|
|
|
$
|
1.15
|
|
Diluted earnings
per share attributable to Tyco ordinary
shareholders:
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
0.56
|
|
|
$
|
0.44
|
|
|
$
|
1.07
|
|
|
$
|
1.25
|
|
(Loss) income from
discontinued operations
|
-
|
|
|
(0.07)
|
|
|
0.01
|
|
|
(0.11)
|
|
Net income
attributable to Tyco ordinary shareholders
|
$
|
0.56
|
|
|
$
|
0.37
|
|
|
$
|
1.08
|
|
|
$
|
1.14
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
426
|
|
|
421
|
|
|
425
|
|
|
421
|
|
Diluted
|
429
|
|
|
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 and
Quarterly Report on Form 10-Q filed on April
29, 2016 for the quarter ended March
25, 2016.
TYCO INTERNATIONAL
PLC
RESULTS OF SEGMENTS
(in millions)
(Unaudited)
|
|
|
|
For the
Quarters Ended
|
|
|
|
For the
Nine Months Ended
|
|
|
|
|
June 24,
2016
|
|
|
|
June 26,
2015
|
|
|
|
June 24,
2016
|
|
|
|
June 26,
2015
|
|
|
Net
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA Integrated
Solutions & Services
|
|
$
|
1,004
|
|
|
|
|
$
|
972
|
|
|
|
|
$
|
2,904
|
|
|
|
|
$
|
2,867
|
|
|
|
ROW Integrated
Solutions & Services
|
|
794
|
|
|
|
|
842
|
|
|
|
|
2,374
|
|
|
|
|
2,605
|
|
|
|
Global
Products
|
|
651
|
|
|
|
|
675
|
|
|
|
|
1,878
|
|
|
|
|
1,925
|
|
|
|
Total Net
Revenue
|
|
$
|
2,449
|
|
|
|
|
$
|
2,489
|
|
|
|
|
$
|
7,156
|
|
|
|
|
$
|
7,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
and Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA Integrated
Solutions & Services
|
|
$
|
148
|
|
|
14.7
|
%
|
|
$
|
157
|
|
|
16.2
|
%
|
|
$
|
411
|
|
|
14.2
|
%
|
|
$
|
411
|
|
|
14.3
|
%
|
ROW Integrated
Solutions & Services
|
|
36
|
|
|
4.5
|
%
|
|
97
|
|
|
11.5
|
%
|
|
226
|
|
|
9.5
|
%
|
|
253
|
|
|
9.7
|
%
|
Global
Products
|
|
115
|
|
|
17.7
|
%
|
|
113
|
|
|
16.7
|
%
|
|
313
|
|
|
16.7
|
%
|
|
332
|
|
|
17.2
|
%
|
Segment Operating
Income
|
|
299
|
|
|
12.2
|
%
|
|
367
|
|
|
14.7
|
%
|
|
950
|
|
|
13.3
|
%
|
|
996
|
|
|
13.5
|
%
|
Corporate and Other
expense
|
|
(50)
|
|
|
N/M
|
|
|
(49)
|
|
|
N/M
|
|
|
(155)
|
|
|
N/M
|
|
|
(154)
|
|
|
N/M
|
|
Restructuring and
repositioning charges, net
|
|
(13)
|
|
|
N/M
|
|
|
(65)
|
|
|
N/M
|
|
|
(41)
|
|
|
N/M
|
|
|
(169)
|
|
|
N/M
|
|
Operating
Income
|
|
$
|
236
|
|
|
9.6
|
%
|
|
$
|
253
|
|
|
10.2
|
%
|
|
$
|
754
|
|
|
10.5
|
%
|
|
$
|
673
|
|
|
9.1
|
%
|
TYCO INTERNATIONAL
PLC
CONSOLIDATED BALANCE SHEETS
(in millions)
(Unaudited)
|
|
|
|
June 24,
2016
|
|
September 25,
2015
|
Assets
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
345
|
|
|
$
|
1,401
|
|
Accounts receivable,
net
|
|
1,805
|
|
|
1,722
|
|
Inventories
|
|
656
|
|
|
620
|
|
Prepaid expenses and
other current assets
|
|
883
|
|
|
750
|
|
Deferred income
taxes
|
|
62
|
|
|
62
|
|
Assets held for
sale
|
|
71
|
|
|
208
|
|
Total Current
Assets
|
|
3,822
|
|
|
4,763
|
|
Property, plant and
equipment, net
|
|
1,180
|
|
|
1,166
|
|
Goodwill
|
|
4,418
|
|
|
4,203
|
|
Intangible assets,
net
|
|
966
|
|
|
822
|
|
Other
assets
|
|
1,228
|
|
|
1,367
|
|
Total
Assets
|
|
$
|
11,614
|
|
|
$
|
12,321
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Loans payable and
current maturities of long-term debt
|
|
$
|
341
|
|
|
$
|
987
|
|
Accounts
payable
|
|
799
|
|
|
764
|
|
Accrued and other
current liabilities
|
|
1,564
|
|
|
1,644
|
|
Deferred
revenue
|
|
378
|
|
|
379
|
|
Liabilities held for
sale
|
|
34
|
|
|
80
|
|
Total Current
Liabilities
|
|
3,116
|
|
|
3,854
|
|
Long-term
debt
|
|
2,165
|
|
|
2,159
|
|
Deferred
revenue
|
|
284
|
|
|
302
|
|
Other
liabilities
|
|
1,663
|
|
|
1,930
|
|
Total
Liabilities
|
|
7,228
|
|
|
8,245
|
|
|
|
|
|
|
Total Tyco
shareholders' equity
|
|
4,351
|
|
|
4,041
|
|
Nonredeemable
noncontrolling interest
|
|
35
|
|
|
35
|
|
Total
Equity
|
|
4,386
|
|
|
4,076
|
|
Total Liabilities
and Equity
|
|
$
|
11,614
|
|
|
$
|
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 and
Quarterly Report on Form 10-Q filed on April
29, 2016 for the quarter ended March
25, 2016.
TYCO INTERNATIONAL
PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
|
|
|
|
For the Quarters
Ended
|
|
For the Nine
Months Ended
|
|
|
June 24,
2016
|
|
June 26,
2015
|
|
June 24,
2016
|
|
June 26,
2015
|
|
|
|
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
|
Net income
attributable to Tyco ordinary shareholders
|
|
$
|
239
|
|
|
$
|
156
|
|
|
$
|
461
|
|
|
$
|
485
|
|
Noncontrolling
interest in subsidiaries net loss
|
|
(1)
|
|
|
-
|
|
|
(2)
|
|
|
(3)
|
|
Loss (income) from
discontinued operations, net of income taxes
|
|
2
|
|
|
32
|
|
|
(3)
|
|
|
50
|
|
Income from
continuing operations
|
|
240
|
|
|
188
|
|
|
456
|
|
|
532
|
|
Adjustments to
reconcile net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
83
|
|
|
86
|
|
|
250
|
|
|
257
|
|
Non-cash compensation
expense
|
|
12
|
|
|
14
|
|
|
39
|
|
|
44
|
|
Deferred income
taxes
|
|
27
|
|
|
28
|
|
|
89
|
|
|
(1)
|
|
Provision for losses
on accounts receivable and inventory
|
|
21
|
|
|
3
|
|
|
50
|
|
|
37
|
|
Loss on
extinguishment of debt
|
|
-
|
|
|
-
|
|
|
168
|
|
|
-
|
|
Legacy legal
matters
|
|
1
|
|
|
-
|
|
|
(18)
|
|
|
-
|
|
Loss (gain) on
divestitures, net
|
|
38
|
|
|
(4)
|
|
|
107
|
|
|
19
|
|
Gain on investments,
net
|
|
-
|
|
|
(8)
|
|
|
(114)
|
|
|
(15)
|
|
(Gain) loss on tax
sharing agreements
|
|
(54)
|
|
|
1
|
|
|
(54)
|
|
|
2
|
|
Other non-cash
items
|
|
5
|
|
|
2
|
|
|
10
|
|
|
8
|
|
Changes in assets and
liabilities, net of the effects of acquisitions and
divestitures:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(103)
|
|
|
(126)
|
|
|
(65)
|
|
|
(104)
|
|
Contracts in
progress
|
|
(15)
|
|
|
38
|
|
|
(69)
|
|
|
8
|
|
Inventories
|
|
1
|
|
|
(8)
|
|
|
(55)
|
|
|
(72)
|
|
Prepaid expenses and
other assets
|
|
1
|
|
|
11
|
|
|
(29)
|
|
|
(55)
|
|
Accounts
payable
|
|
12
|
|
|
9
|
|
|
14
|
|
|
(78)
|
|
Accrued and other
liabilities
|
|
(16)
|
|
|
22
|
|
|
(149)
|
|
|
(34)
|
|
Tax sharing
agreement, net
|
|
(16)
|
|
|
-
|
|
|
(138)
|
|
|
-
|
|
Income taxes,
net
|
|
(24)
|
|
|
3
|
|
|
(11)
|
|
|
4
|
|
Other
|
|
(22)
|
|
|
(10)
|
|
|
23
|
|
|
(41)
|
|
Net cash provided by
operating activities
|
|
191
|
|
|
249
|
|
|
504
|
|
|
511
|
|
Net cash used in
discontinued operating activities
|
|
(1)
|
|
|
(4)
|
|
|
(12)
|
|
|
(1)
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(66)
|
|
|
(60)
|
|
|
(209)
|
|
|
(183)
|
|
Acquisition of
businesses, net of cash acquired
|
|
(6)
|
|
|
-
|
|
|
(320)
|
|
|
(525)
|
|
Acquisition of dealer
generated customer accounts and bulk account purchases
|
|
(6)
|
|
|
(5)
|
|
|
(17)
|
|
|
(13)
|
|
Divestiture of
businesses, net of cash divested
|
|
5
|
|
|
-
|
|
|
14
|
|
|
(1)
|
|
Sales and maturities
of investments including restricted investments
|
|
18
|
|
|
4
|
|
|
26
|
|
|
283
|
|
Purchases of
investments including restricted investments
|
|
(1)
|
|
|
(2)
|
|
|
(8)
|
|
|
(290)
|
|
(Increase) decrease
in restricted cash
|
|
(21)
|
|
|
12
|
|
|
3
|
|
|
(27)
|
|
Other
|
|
(1)
|
|
|
2
|
|
|
-
|
|
|
4
|
|
Net cash used in
investing activities
|
|
(78)
|
|
|
(49)
|
|
|
(511)
|
|
|
(752)
|
|
Net cash (used in)
provided by discontinued investing activities
|
|
-
|
|
|
(22)
|
|
|
4
|
|
|
(37)
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of short-term debt
|
|
1,681
|
|
|
258
|
|
|
4,179
|
|
|
258
|
|
Repayment of
short-term debt
|
|
(1,740)
|
|
|
(258)
|
|
|
(3,838)
|
|
|
(259)
|
|
Repayment of current
portion of long-term debt
|
|
-
|
|
|
-
|
|
|
(1,134)
|
|
|
-
|
|
Proceeds from
issuance of long-term debt
|
|
-
|
|
|
3
|
|
|
-
|
|
|
570
|
|
Proceeds from
exercise of share options
|
|
31
|
|
|
13
|
|
|
57
|
|
|
70
|
|
Dividends
paid
|
|
(87)
|
|
|
(86)
|
|
|
(261)
|
|
|
(237)
|
|
Repurchase of
ordinary shares
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(417)
|
|
Transfer to
discontinued operations
|
|
(1)
|
|
|
(26)
|
|
|
(8)
|
|
|
(38)
|
|
Payment of contingent
consideration
|
|
-
|
|
|
-
|
|
|
(1)
|
|
|
(23)
|
|
Debt financing
costs
|
|
-
|
|
|
(1)
|
|
|
(23)
|
|
|
(5)
|
|
Other
|
|
1
|
|
|
(2)
|
|
|
(12)
|
|
|
(21)
|
|
Net cash used in
financing activities
|
|
(115)
|
|
|
(99)
|
|
|
(1,041)
|
|
|
(102)
|
|
Net cash provided by
discontinued financing activities
|
|
1
|
|
|
26
|
|
|
8
|
|
|
38
|
|
Effect of currency
translation on cash
|
|
2
|
|
|
(2)
|
|
|
(8)
|
|
|
(18)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
-
|
|
|
99
|
|
|
(1,056)
|
|
|
(361)
|
|
Cash and cash
equivalents at beginning of period
|
|
345
|
|
|
432
|
|
|
1,401
|
|
|
892
|
|
Cash and cash
equivalents at end of period
|
|
$
|
345
|
|
|
$
|
531
|
|
|
$
|
345
|
|
|
$
|
531
|
|
|
|
For the Quarters
Ended
|
|
For the Nine
Months Ended
|
|
|
June 24,
2016
|
|
June 26,
2015
|
|
June 24,
2016
|
|
June 26,
2015
|
|
|
|
|
|
Reconciliation to
"Free Cash Flow":
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
191
|
|
|
$
|
249
|
|
|
$
|
504
|
|
|
$
|
511
|
|
Capital expenditures,
net
|
|
(65)
|
|
|
(59)
|
|
|
(207)
|
|
|
(179)
|
|
Acquisition of dealer
generated customer accounts and bulk account purchases
|
|
(6)
|
|
|
(5)
|
|
|
(17)
|
|
|
(13)
|
|
Payment of contingent
consideration
|
|
(1)
|
|
|
1
|
|
|
(2)
|
|
|
(23)
|
|
Voluntary pension
contributions
|
|
-
|
|
|
-
|
|
|
4
|
|
|
-
|
|
Free Cash
Flow
|
|
$
|
119
|
|
|
$
|
186
|
|
|
$
|
282
|
|
|
$
|
296
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
"Adjusted Free Cash Flow":
|
|
|
|
|
|
|
|
|
IRS litigation
costs
|
|
$
|
2
|
|
|
$
|
-
|
|
|
$
|
5
|
|
|
$
|
-
|
|
Separation
costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3
|
|
Restructuring and
repositioning costs (FY15 and prior)
|
|
16
|
|
|
48
|
|
|
84
|
|
|
119
|
|
Environmental
remediation payments
|
|
-
|
|
|
(1)
|
|
|
2
|
|
|
7
|
|
Legal
settlements
|
|
-
|
|
|
(4)
|
|
|
14
|
|
|
(16)
|
|
Satisfaction of
pension obligation
|
|
39
|
|
|
-
|
|
|
39
|
|
|
-
|
|
Net asbestos
payments
|
|
5
|
|
|
-
|
|
|
15
|
|
|
8
|
|
Merger
costs
|
|
12
|
|
|
-
|
|
|
20
|
|
|
-
|
|
Cash payment to ADT
Resi / Pentair
|
|
1
|
|
|
-
|
|
|
17
|
|
|
1
|
|
Cash payment to
Covidien / TE Connectivity
|
|
16
|
|
|
-
|
|
|
138
|
|
|
-
|
|
Acquisition /
integration costs
|
|
4
|
|
|
1
|
|
|
9
|
|
|
4
|
|
Special
Items
|
|
$
|
95
|
|
|
$
|
44
|
|
|
$
|
343
|
|
|
$
|
126
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free Cash
Flow
|
|
$
|
214
|
|
|
$
|
230
|
|
|
$
|
625
|
|
|
$
|
422
|
|
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 June
24, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue for
the
Quarter Ended
June 26, 2015
|
|
Adjustments
|
|
Adjusted
Fiscal
2015 Base
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue for
the
Quarter Ended
June 24, 2016
|
|
|
|
Divestitures /
Other
|
|
|
Foreign Currency
|
|
Acquisitions
|
|
Organic Revenue(1)
|
|
NA Integrated
Solutions & Services
|
|
$
|
972
|
|
|
$
|
-
|
|
|
-%
|
|
|
$
|
972
|
|
|
$
|
(5)
|
|
|
(0.5)%
|
|
|
$
|
13
|
|
|
1.3
|
%
|
|
$
|
24
|
|
|
2.5
|
%
|
|
$
|
1,004
|
|
|
3.3%
|
|
ROW Integrated
Solutions & Services
|
|
842
|
|
|
(72)
|
|
|
(8.6)%
|
|
|
770
|
|
|
(48)
|
|
|
(5.7)%
|
|
|
57
|
|
|
6.8
|
%
|
|
15
|
|
|
1.9
|
%
|
|
794
|
|
|
(5.7)%
|
|
Global
Products
|
|
675
|
|
|
(12)
|
|
|
(1.8)%
|
|
|
663
|
|
|
(10)
|
|
|
(1.5)%
|
|
|
-
|
|
|
-
|
%
|
|
(2)
|
|
|
(0.3)
|
%
|
|
651
|
|
|
(3.6)%
|
|
Total Net
Revenue
|
|
$
|
2,489
|
|
|
$
|
(84)
|
|
|
(3.4)%
|
|
|
$
|
2,405
|
|
|
$
|
(63)
|
|
|
(2.5)%
|
|
|
$
|
70
|
|
|
2.8
|
%
|
|
$
|
37
|
|
|
1.5
|
%
|
|
$
|
2,449
|
|
|
(1.6)%
|
|
(1) Organic revenue growth percentage based on adjusted fiscal
2015 base revenue.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 24, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue for
the
Nine Months Ended
June 26, 2015
|
|
Adjustments
|
|
Adjusted
Fiscal
2015 Base
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue for
the
Nine Months Ended
June 24, 2016
|
|
|
|
Divestitures /
Other
|
|
|
Foreign Currency
|
|
Acquisitions
|
|
|
Organic Revenue (1)
|
|
NA Integrated
Solutions & Services
|
|
$
|
2,867
|
|
|
$
|
-
|
|
|
-%
|
|
|
$
|
2,867
|
|
|
$
|
(31)
|
|
|
(1.1)%
|
|
|
$
|
25
|
|
|
0.9
|
%
|
|
|
$
|
43
|
|
|
1.5
|
%
|
|
$
|
2,904
|
|
|
1.3%
|
|
ROW Integrated
Solutions & Services
|
|
2,605
|
|
|
(156)
|
|
|
(6.0)%
|
|
|
2,449
|
|
|
(222)
|
|
|
(8.5)%
|
|
|
150
|
|
|
5.8
|
%
|
|
|
(3)
|
|
|
(0.1)
|
%
|
|
2,374
|
|
|
(8.9)%
|
|
Global
Products
|
|
1,925
|
|
|
(16)
|
|
|
(0.8)%
|
|
|
1,909
|
|
|
(63)
|
|
|
(3.3)%
|
|
|
56
|
|
|
2.9
|
%
|
|
|
(24)
|
|
|
(1.3)
|
%
|
|
1,878
|
|
|
(2.4)%
|
|
Total Net
Revenue
|
|
$
|
7,397
|
|
|
$
|
(172)
|
|
|
(2.3)%
|
|
|
$
|
7,225
|
|
|
$
|
(316)
|
|
|
(4.3)%
|
|
|
$
|
231
|
|
|
3.1
|
%
|
|
|
$
|
16
|
|
|
0.2
|
%
|
|
$
|
7,156
|
|
|
(3.3)%
|
|
(1) Organic revenue growth percentage based on adjusted fiscal
2015 base revenue.
Earnings Per Share
Summary
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
Quarter
Ended
|
|
|
June 24,
2016
|
|
June 26,
2015
|
Diluted EPS from
Continuing Operations Attributable to Tyco Shareholders
(GAAP)
|
|
$
|
0.56
|
|
|
$
|
0.44
|
|
|
|
|
|
|
expense /
(benefit)
|
|
|
|
|
|
|
|
|
|
Merger
costs
|
|
0.04
|
|
|
-
|
|
|
|
|
|
|
(Gains) / losses on
divestitures, net included in SG&A
|
|
0.09
|
|
|
(0.01)
|
|
|
|
|
|
|
Acquisition /
integration costs
|
|
0.01
|
|
|
-
|
|
|
|
|
|
|
TSA adjustment
|
|
(0.13)
|
|
|
-
|
|
|
|
|
|
|
Asbestos
|
|
-
|
|
|
0.02
|
|
|
|
|
|
|
Tax items
|
|
(0.04)
|
|
|
-
|
|
|
|
|
|
|
Total Before
Special Items
|
|
$
|
0.54
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
Note: Sum of EPS before special items does not equal total
due to rounding
Tyco International
plc
For the Quarter Ended June 24, 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)
|
$1,004
|
|
|
|
|
$794
|
|
|
|
|
$651
|
|
|
|
|
$2,449
|
|
|
|
$-
|
|
|
|
|
$2,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
$148
|
|
|
14.7
|
%
|
|
$36
|
|
|
4.5
|
%
|
|
$115
|
|
|
17.7
|
%
|
|
$299
|
|
12.2
|
%
|
|
($50)
|
|
|
($13)
|
|
|
$236
|
|
9.6
|
%
|
|
($19)
|
|
|
$54
|
|
|
($31)
|
|
|
$-
|
|
|
$1
|
|
$241
|
|
$0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired backlog included in revenue
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
repositioning reversals (FY15 and prior)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
(2)
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
(1)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
|
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
19
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gains) / losses on
divestitures, net included in SG&A
|
|
|
|
|
52
|
|
|
|
|
(1)
|
|
|
|
|
51
|
|
|
|
(13)
|
|
|
|
|
38
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
37
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition /
integration costs
|
|
|
|
|
3
|
|
|
|
|
1
|
|
|
|
|
4
|
|
|
|
1
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy legal
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IRS litigation
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
(1)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 Tax Sharing
Agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSA adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(54)
|
|
|
|
|
|
|
|
(54)
|
|
(0.13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17)
|
|
|
|
|
|
(17)
|
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Before
Special Items
|
$148
|
|
|
14.7
|
%
|
|
$92
|
|
|
11.6
|
%
|
|
$115
|
|
|
17.7
|
%
|
|
$355
|
|
14.5
|
%
|
|
($44)
|
|
|
($15)
|
|
|
$296
|
|
12.1
|
%
|
|
($19)
|
|
|
$1
|
|
|
($48)
|
|
|
$-
|
|
|
$1
|
|
$231
|
|
$0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Sum of
EPS before special items does not equal total due to
rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding
|
|
429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding - Before Special Items
|
429
|
|
Tyco International
plc
For the Quarter Ended June 26, 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)
|
|
$972
|
|
|
|
|
$842
|
|
|
|
|
$675
|
|
|
|
|
$2,489
|
|
|
|
|
$-
|
|
|
|
|
$2,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
$157
|
|
|
16.2
|
%
|
|
$97
|
|
|
11.5
|
%
|
|
$113
|
|
|
16.7
|
%
|
|
$367
|
|
|
14.7
|
%
|
|
($49)
|
|
|
($65)
|
|
|
$253
|
|
|
10.2
|
%
|
|
($22)
|
|
|
$6
|
|
|
($49)
|
|
|
$-
|
|
|
$188
|
|
$0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gains) / losses on
divestitures, net included in SG&A
|
|
|
|
|
|
(5)
|
|
|
|
|
1
|
|
|
|
|
(4)
|
|
|
|
|
|
|
|
|
(4)
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
(3)
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition /
integration costs
|
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement with
former management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
(1)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
inventory step-up
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
2
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asbestos
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
9
|
|
|
|
|
10
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired backlog
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Before
Special Items
|
|
$157
|
|
|
16.2
|
%
|
|
$93
|
|
|
11.0
|
%
|
|
$119
|
|
|
17.6
|
%
|
|
$369
|
|
|
14.8
|
%
|
|
($50)
|
|
|
($65)
|
|
|
$254
|
|
|
10.2
|
%
|
|
($22)
|
|
|
$6
|
|
|
($40)
|
|
|
$-
|
|
|
$198
|
|
$0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Sum of
EPS before special items does not equal total due to
rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-third-quarter-2016-gaap-earnings-from-continuing-operations-of-056-per-share-and-054-per-share-before-special-items-300306113.html
SOURCE Tyco